Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 01, 2024 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
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 | |
Title of 12(b) Security | Common Stock, $1.00 Par Value | |
Trading Symbol | QCRH | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 16,841,923 | |
Entity Central Index Key | 0000906465 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Cash and due from banks | $ 92,173 | $ 97,123 |
Federal funds sold | 8,150 | 35,450 |
Interest-bearing deposits at financial institutions | 94,112 | 104,919 |
Securities held to maturity, at amortized cost, net of allowance for credit losses | 720,625 | 683,504 |
Securities available for sale, at fair value | 290,212 | 299,655 |
Securities trading, at fair value | 22,362 | 22,369 |
Total securities | 1,033,199 | 1,005,528 |
Loans receivable held for sale | 246,124 | 2,594 |
Loans/leases receivable held for investment | 6,608,262 | 6,540,822 |
Gross loans/leases receivable | 6,854,386 | 6,543,416 |
Less allowance for credit losses | (87,706) | (87,200) |
Net loans/leases receivable | 6,766,680 | 6,456,216 |
Bank-owned life insurance | 107,965 | 108,222 |
Premises and equipment, net | 141,069 | 123,277 |
Restricted investment securities | 44,325 | 41,648 |
Other real estate owned, net | 369 | 1,347 |
Goodwill | 139,027 | 139,027 |
Intangibles | 12,441 | 13,821 |
Derivatives | 194,354 | 187,341 |
Other assets | 238,127 | 224,975 |
Total assets | 8,871,991 | 8,538,894 |
Liabilities and Stockholders' Equity | ||
Noninterest-bearing | 956,445 | 1,038,689 |
Interest-bearing | 5,808,222 | 5,475,316 |
Total deposits | 6,764,667 | 6,514,005 |
Short-term borrowings | 1,600 | 1,500 |
Federal Home Loan Bank advances | 485,000 | 435,000 |
Subordinated notes | 233,276 | 233,064 |
Junior subordinated debentures | 48,795 | 48,731 |
Derivatives | 221,798 | 215,735 |
Other liabilities | 180,536 | 204,263 |
Total liabilities | 7,935,672 | 7,652,298 |
Stockholders' Equity: | ||
Preferred stock, $1 par value; shares authorized 250,000 June 2024 and December 2023 - no shares issued or outstanding | ||
Common stock, $1 par value; shares authorized 20,000,000 June 2024 - 16,824,985 shares issued and outstanding December 2023 - 16,749,254 shares issued and outstanding | 16,825 | 16,749 |
Additional paid-in capital | 372,378 | 370,814 |
Retained earnings | 608,816 | 554,992 |
Accumulated other comprehensive loss: | ||
Securities available for sale | (39,014) | (35,980) |
Derivatives | (22,686) | (19,979) |
Total stockholders' equity | 936,319 | 886,596 |
Total liabilities and stockholders' equity | $ 8,871,991 | $ 8,538,894 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
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) | 16,824,985 | 16,749,254 |
Common stock, outstanding (in shares) | 16,824,985 | 16,749,254 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Loans/leases, including fees: | ||||
Taxable | $ 79,743 | $ 68,419 | $ 156,874 | $ 135,053 |
Nontaxable | 26,051 | 19,545 | 50,179 | 36,857 |
Securities: | ||||
Taxable | 4,285 | 3,693 | 8,546 | 7,059 |
Nontaxable | 7,476 | 4,868 | 14,862 | 10,205 |
Interest-bearing deposits at financial institutions | 1,139 | 1,124 | 2,339 | 1,945 |
Restricted investment securities | 869 | 505 | 1,543 | 1,018 |
Federal funds sold | 183 | 223 | 452 | 457 |
Total interest and dividend income | 119,746 | 98,377 | 234,795 | 192,594 |
Interest expense: | ||||
Deposits | 53,053 | 38,445 | 104,469 | 68,225 |
Short-term borrowings | 21 | 33 | 44 | 132 |
Federal Home Loan Bank advances | 6,239 | 2,653 | 10,977 | 6,174 |
Subordinated notes | 3,582 | 3,304 | 7,062 | 6,615 |
Junior subordinated debentures | 688 | 737 | 1,381 | 1,433 |
Total interest expense | 63,583 | 45,172 | 123,933 | 82,579 |
Net interest income | 56,163 | 53,205 | 110,862 | 110,015 |
Provision for credit losses | 5,496 | 3,606 | 8,465 | 7,534 |
Net interest income after provision for credit losses | 50,667 | 49,599 | 102,397 | 102,481 |
Noninterest income: | ||||
Revenue | 150,635 | 130,897 | 292,542 | 250,956 |
Gains on sales of residential real estate loans, net | 540 | 500 | 922 | 812 |
Gains on sales of government guaranteed portions of loans, net | 12 | 36 | 30 | |
Capital markets revenue | 17,758 | 22,490 | 34,215 | 39,513 |
Securities gains, net | 12 | (451) | ||
Earnings on bank-owned life insurance | 2,964 | 838 | 3,832 | 1,545 |
Loan related fee income | 962 | 770 | 1,798 | 1,421 |
Fair value gain (loss) on derivatives and trading securities | 51 | 83 | (112) | (344) |
Other | 218 | 18 | 372 | 357 |
Total noninterest income | 30,889 | 32,520 | 57,747 | 58,362 |
Noninterest expense: | ||||
Salaries and employee benefits | 31,079 | 31,459 | 62,939 | 63,462 |
Occupancy and equipment expense | 6,377 | 6,100 | 12,891 | 12,014 |
Professional and data processing fees | 4,823 | 4,078 | 9,436 | 7,592 |
Post-acquisition compensation, transition and integration costs | 207 | |||
FDIC insurance, other insurance and regulatory fees | 1,854 | 1,927 | 3,799 | 3,301 |
Loan/lease expense | 151 | 652 | 529 | 1,208 |
Net cost of (income from) and gains/losses on operations of other real estate | 28 | (2) | (67) | |
Advertising and marketing | 1,565 | 1,735 | 3,048 | 2,972 |
Communication and data connectivity | 318 | 471 | 719 | 1,136 |
Supplies | 259 | 281 | 534 | 586 |
Bank service charges | 622 | 621 | 1,190 | 1,226 |
Correspondent banking expense | 363 | 221 | 668 | 431 |
Intangibles amortization | 690 | 765 | 1,380 | 1,531 |
Payment card processing | 706 | 542 | 1,352 | 1,087 |
Trust expense | 379 | 337 | 804 | 551 |
Other | 674 | 538 | 1,291 | 1,275 |
Total noninterest expense | 49,888 | 49,727 | 100,578 | 98,512 |
Net income before income taxes | 31,668 | 32,392 | 59,566 | 62,331 |
Federal and state income tax expense | 2,554 | 3,967 | 3,726 | 6,749 |
Net income | $ 29,114 | $ 28,425 | $ 55,840 | $ 55,582 |
Basic earnings per common share (in dollars per share) | $ 1.73 | $ 1.70 | $ 3.32 | $ 3.32 |
Diluted earnings per common share (in dollars per share) | $ 1.72 | $ 1.69 | $ 3.30 | $ 3.29 |
Weighted average common shares outstanding (in shares) | 16,814,814 | 16,701,950 | 16,799,081 | 16,739,120 |
Weighted average common and common equivalent shares outstanding (in shares) | 16,921,854 | 16,799,527 | 16,916,264 | 16,870,830 |
Cash dividends declared per common share | $ 0.06 | $ 0.06 | $ 0.12 | $ 0.12 |
Trust fees | ||||
Noninterest income: | ||||
Revenue | $ 3,103 | $ 2,844 | $ 6,302 | $ 5,750 |
Investment advisory and management fees | ||||
Noninterest income: | ||||
Revenue | 1,214 | 986 | 2,315 | 1,865 |
Deposit service fees | ||||
Noninterest income: | ||||
Revenue | 1,986 | 2,034 | 4,008 | 4,062 |
Debit card fees | ||||
Noninterest income: | ||||
Revenue | 1,571 | 1,589 | 3,037 | 3,055 |
Correspondent banking fees | ||||
Noninterest income: | ||||
Revenue | $ 510 | $ 356 | $ 1,022 | $ 747 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) | ||||
Net Income (Loss) | $ 29,114 | $ 28,425 | $ 55,840 | $ 55,582 |
Other comprehensive income (loss): | ||||
Unrealized holding gains (losses) arising during the period before tax | (345) | (3,128) | (3,592) | 4,264 |
Less reclassification adjusted for impairment losses included in net income before tax | 445 | (989) | ||
Less: reclassification adjustment for sales losses included in net income before tax | 12 | (451) | ||
Unrealized gains (losses) on securities available for sale | (345) | (3,140) | (4,037) | 5,704 |
Unrealized holding losses arising during the period before tax | (270) | (5,579) | (3,874) | (2,133) |
Less: reclassification adjustment for caplet amortization before tax | (125) | (213) | (246) | (414) |
Unrealized losses on derivatives | (145) | (5,366) | (3,628) | (1,719) |
Other comprehensive income (loss), before tax | (490) | (8,506) | (7,665) | 3,985 |
Tax expense (benefit) | (122) | (2,170) | (1,924) | 996 |
Other comprehensive income (loss), net of tax | (368) | (6,336) | (5,741) | 2,989 |
Comprehensive income | $ 28,746 | $ 22,089 | $ 50,099 | $ 58,571 |
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 (Loss) | Total |
Balance at Dec. 31, 2022 | $ 16,796 | $ 370,712 | $ 450,114 | $ (64,898) | $ 772,724 |
Net Income (Loss) | 27,157 | 27,157 | |||
Other comprehensive loss, net of tax | 9,325 | 9,325 | |||
Common cash dividends declared | (1,010) | (1,010) | |||
Repurchase and cancellation of shares of common stock as a result of a share repurchase program | (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) | 55,582 | ||||
Other comprehensive loss, net of tax | 2,989 | ||||
Balance at Jun. 30, 2023 | 16,714 | 368,860 | 499,024 | (61,909) | 822,689 |
Balance at Mar. 31, 2023 | 16,714 | 368,302 | 472,051 | (55,573) | 801,494 |
Net Income (Loss) | 28,425 | 28,425 | |||
Other comprehensive loss, net of tax | (6,336) | (6,336) | |||
Common cash dividends declared | (1,003) | (1,003) | |||
Repurchase and cancellation of shares of common stock as a result of a share repurchase program | (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 |
Balance at Dec. 31, 2023 | 16,749 | 370,814 | 554,992 | (55,959) | 886,596 |
Net Income (Loss) | 26,726 | 26,726 | |||
Other comprehensive loss, net of tax | (5,373) | (5,373) | |||
Common cash dividends declared | (1,008) | (1,008) | |||
Stock-based compensation expense | 941 | 941 | |||
Issuance of common stock under employee benefit plans | 58 | (598) | (540) | ||
Balance at Mar. 31, 2024 | 16,807 | 371,157 | 580,710 | (61,332) | 907,342 |
Balance at Dec. 31, 2023 | 16,749 | 370,814 | 554,992 | (55,959) | 886,596 |
Net Income (Loss) | 55,840 | ||||
Other comprehensive loss, net of tax | (5,741) | ||||
Balance at Jun. 30, 2024 | 16,825 | 372,378 | 608,816 | (61,700) | 936,319 |
Balance at Mar. 31, 2024 | 16,807 | 371,157 | 580,710 | (61,332) | 907,342 |
Net Income (Loss) | 29,114 | 29,114 | |||
Other comprehensive loss, net of tax | (368) | (368) | |||
Common cash dividends declared | (1,008) | (1,008) | |||
Stock-based compensation expense | 696 | 696 | |||
Issuance of common stock under employee benefit plans | 18 | 525 | 543 | ||
Balance at Jun. 30, 2024 | $ 16,825 | $ 372,378 | $ 608,816 | $ (61,700) | $ 936,319 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (Parentheticals) - $ / shares | 3 Months Ended | |
Jun. 30, 2023 | Mar. 31, 2023 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) | ||
Cash dividends declared per common share | $ 0.06 | $ 0.06 |
Repurchase and cancellation of common stock as a result of share repurchase program (in shares) | 22,500 | 152,500 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 55,840 | $ 55,582 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 4,522 | 4,039 |
Provision for credit losses | 8,465 | 7,534 |
Stock-based compensation expense | 1,637 | 1,626 |
Deferred compensation expense accrued | 3,113 | 2,674 |
Gains on other real estate owned, net | (173) | (89) |
Amortization of premiums on securities, net | 346 | 736 |
Caplet amortization | 246 | 414 |
Fair value loss on derivatives and trading securities | 112 | 344 |
Ineffectiveness on fair value hedges | 1 | |
Securities losses, net | 451 | |
Loans originated for sale | (40,768) | (36,241) |
Proceeds on sales of loans | 41,389 | 34,556 |
Gains on sales of residential real estate loans | (922) | (812) |
Gains on sales of government guaranteed portions of loans | (36) | (30) |
(Gains) losses on sales and disposals of premises and equipment | (2) | 26 |
Amortization of intangibles | 1,380 | 1,531 |
Accretion of acquisition fair value adjustments, net | (268) | (962) |
Increase in cash value of bank-owned life insurance | (1,600) | (1,545) |
Gain on bank-owned life insurance death benefits | (2,232) | |
Increase in other assets | (12,861) | (23,883) |
Decrease (increase) in other liabilities | (29,102) | 14,506 |
Net cash provided by operating activities | 29,087 | 60,457 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Net decrease in federal funds sold | 27,300 | 48,145 |
Net (increase) decrease in interest-bearing deposits at financial institutions | 10,807 | (98,887) |
Proceeds from sales of other real estate owned | 1,151 | 283 |
Activity in securities portfolio: | ||
Purchases | (65,755) | (60,387) |
Calls, maturities and redemptions | 25,607 | 69,754 |
Paydowns | 8,347 | 8,410 |
Sales | 445 | 30,556 |
Activity in restricted investment securities: | ||
Purchases | (6,948) | (3,177) |
Redemptions | 4,271 | 13,690 |
Proceeds from the liquidation of bank-owned life insurance | 4,085 | |
Net increase in loans/leases originated and held for investment | (319,789) | (244,679) |
Purchase of premises and equipment | (22,314) | (4,730) |
Proceeds from sales of premises and equipment | 2 | 445 |
Net cash used in investing activities | (332,791) | (240,577) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase in deposit accounts | 250,663 | 622,503 |
Net increase (decrease) in short-term borrowings | 100 | (127,780) |
Activity in Federal Home Loan Bank advances: | ||
Term advances | 135,000 | |
Net change in short-term and overnight advances | 50,000 | (415,000) |
Payment of cash dividends on common stock | (2,012) | (2,023) |
Proceeds from issuance of common stock, net | 3 | 467 |
Repurchase and cancellation of shares | (8,686) | |
Net cash provided by financing activities | 298,754 | 204,481 |
Net increase (decrease) in cash and due from banks | (4,950) | 24,361 |
Cash and due from banks, beginning | 97,123 | 59,723 |
Cash and due from banks, ending | 92,173 | 84,084 |
Supplemental disclosure of cash flow information, cash payments for: | ||
Interest | 123,467 | 78,966 |
Income/franchise taxes | 3,066 | 1,031 |
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 | (5,741) | 2,989 |
Transfers of loans to other real estate owned | 61 | |
Transfer of loans to held for sale for securitizations in preparation | 243,193 | 291,050 |
Increase (decrease) in the fair value of back-to-back interest rate swap assets and liabilities | 5,570 | (7,442) |
Dividends payable | $ 1,008 | 1,003 |
Measurement period adjustment to goodwill | $ 1,420 |
Note 1 - SUMMARY OF SIGNIFICANT
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2024 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The financial information of the Company included herein has been prepared in accordance with GAAP for interim financial reporting and has been prepared pursuant to the rules and regulations for reporting on Form 10-Q and Rule 10-01 of Regulation S-X. Such information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented. Any differences appearing between the numbers presented in financial statements and management's discussion and analysis are due to rounding. The results of the interim period ended June 30, 2024 are not necessarily indicative of the results expected for the year ending December 31, 2024, 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 GAAP: Generally Accepted Accounting Principles AFS: Available for sale GB: Guaranty Bank Allowance: Allowance for credit losses GDP: Gross domestic product AOCI: Accumulated other comprehensive income (loss) GFED: Guaranty Federal Bancshares, Inc. ASC: Accounting Standards Codification HTM: Held to maturity ASU: Accounting Standards Update ICS: Insured Cash Sweep BOLI: Bank-owned life insurance LIBOR: London Inter-Bank Offered Rate Caps: Interest rate cap derivatives LIHTC: Low-income housing tax credit CDARS: Certificate of Deposit Account Registry Service m2: m2 Equipment Finance, LLC CECL: Current Expected Credit Losses NIM: Net interest margin Community National: Community National Bancorporation NPA: Nonperforming asset Company: QCR Holdings, Inc. NPL: Nonperforming loan CRBT: Cedar Rapids Bank & Trust Company OBS: Off-balance sheet CRE: Commercial real estate OREO: Other real estate owned CSB: Community State Bank OTTI: Other-than-temporary impairment C&I: Commercial and industrial PCAOB: Public Company Accounting Oversight Board 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 SOFR: Secured Overnight Financing rate Federal Reserve: Board of Governors of the Federal TA: Tangible assets Reserve System TCE: Tangible common equity FHLB: Federal Home Loan Bank TEY: Tax equivalent yield FRB: Federal Reserve Bank of Chicago VIE: Variable interest entities 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. Additionally, the Company also engages in wealth management services through its banking subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. Credit quality indicators 1. Highest Quality (pass) – loans of the highest quality with no credit risk, including those fully secured by bank certificates of deposit and U.S. government securities. 2. Superior Quality (pass) – loans with very strong credit quality. Borrowers have exceptionally strong earnings, liquidity, capital, cash flow coverage, and management ability. Includes loans secured by high quality, marketable securities, certificates of deposit from other institutions, and cash value of life insurance. Also includes loans supported by U.S. government, state, or municipal guarantees. 3. Good Quality (pass) – loans with good credit quality. Established borrowers with good financial condition, including earnings, liquidity, capital and cash flow coverage. Financial performance is above industry average. Management is capable and is very experienced. Collateral coverage, if applicable, is good. Includes loans secured by personal assets and business assets including equipment, accounts receivable, inventory, and real estate. 4. Moderate Quality (pass) – loans with moderate credit quality. Established borrowers with good financial condition, including earnings, liquidity, capital and cash flow coverage. Financial performance should be above industry averages. Management is capable and has more than adequate experience. Collateral coverage, if applicable, is more than adequate. Includes loans secured by personal assets and business assets including equipment, accounts receivable, inventory, and real estate. 5. Satisfactory Quality (pass) – loans with satisfactory credit quality. Established borrowers with satisfactory financial condition, including earnings, liquidity, capital, and cash flow coverage. Performance should at or above industry averages. Management is capable with adequate experience. Collateral coverage, if applicable, is adequate. Includes loans secured by personal assets and business assets including equipment, accounts receivable, inventory, and real estate. 6. Fair Quality (pass) – loans with acceptable credit quality. The primary repayment source is adequate; however, management’s ability to maintain consistent profitability is unproven or uncertain. Borrowers exhibit acceptable leverage and liquidity. May include new businesses with inexperienced management, performance at industry averages, or borrowers operating in highly cyclical or deteriorating industries. 7. Low Quality (pass) – loans with low credit quality. The primary repayment source remains adequate; however, management’s ability to maintain consistent profitability remains unproven or uncertain. Borrowers exhibit moderate leverage and limited liquidity. May include new businesses with inexperienced management, performance below industry averages, or borrowers operating in highly cyclical or deteriorating industries. 8. Early Warning (pass) – loans where the borrowers have generally performed as agreed, however unfavorable financial trends exist or are anticipated. Earnings may be erratic, with marginal cash flow or declining sales. Borrowers reflect leveraged financial condition and/or marginal liquidity. Management may be new, and a track record of performance has yet to be developed. Financial information may be incomplete, and reliance on secondary repayment sources may be increasing. 9. Special Mention – loans where the borrowers exhibit credit weaknesses or unfavorable financial trends requiring close monitoring. Weaknesses and adverse trends are more pronounced than Early Warning loans, and if left uncorrected, may jeopardize repayment according to the contractual terms. Currently, no loss of principal or interest is expected. Borrowers in this category have deteriorated to the point that it would be difficult to refinance with another lender. Special Mention should be assigned to borrowers in turnaround situations. This rating is intended as a transitional rating; therefore, it is generally not assigned to a borrower for a period of more than one year . 10. Substandard – loans which are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if applicable. These loans have a well-defined weakness or weaknesses which jeopardize repayment according to the contractual terms. There is distinct loss potential if the weaknesses are not corrected. Includes loans with insufficient cash flow coverage which are collateral dependent, other real estate owned, and repossessed assets. 11. Doubtful – loans which have all the weaknesses inherent in a Substandard loan, with the added characteristic that existing weaknesses make full principal collection, based on current facts, conditions, and values, highly doubtful. The possibility of loss is extremely high, but because of pending factors, recognition of a loss is deferred until a more exact status can be determined. All doubtful loans will be placed on non-accrual, with all payments, including interest, applied to principal reduction. The credit quality indicator for leases and equipment financing agreements remains unchanged at performing and nonperforming status. 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 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) In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” In March 2024, the FASB issued ASU 2024-01, “Compensation – Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards.” Topic 718, Compensation - Stock Compensation” |
Note 2 - INVESTMENT SECURITIES
Note 2 - INVESTMENT SECURITIES | 6 Months Ended |
Jun. 30, 2024 | |
INVESTMENT SECURITIES | |
INVESTMENT SECURITIES | NOTE 2– INVESTMENT SECURITIES The amortized cost and fair value of investment securities as of June 30, 2024 and December 31, 2023 are summarized as follows: Allowance Gross Gross Amortized for Credit Unrealized Unrealized Fair Cost (Losses) Gains (Losses) Value (dollars in thousands) June 30, 2024: Securities HTM: Municipal securities $ 719,778 $ (202) $ 24,827 $ (48,989) $ 695,414 Other securities 1,050 (1) — (16) 1,033 $ 720,828 $ (203) $ 24,827 $ (49,005) $ 696,447 Securities AFS: U.S. govt. sponsored agency securities $ 22,717 $ — $ 11 $ (2,627) $ 20,101 Residential mortgage-backed and related securities 60,950 — 1 (6,243) 54,708 Municipal securities 205,340 — — (40,072) 165,268 Asset-backed securities 12,516 — 205 — 12,721 Other securities 40,715 — 12 (3,313) 37,414 $ 342,238 $ — $ 229 $ (52,255) $ 290,212 Allowance Gross Gross Amortized for Credit Unrealized Unrealized Fair Cost (Losses) Gains (Losses) Value (dollars in thousands) December 31, 2023: Securities HTM: Municipal securities $ 682,657 $ (202) $ 33,385 $ (36,639) $ 679,201 Other securities 1,050 (1) 44 (15) 1,078 $ 683,707 $ (203) $ 33,429 $ (36,654) $ 680,279 Securities AFS: U.S. govt. sponsored agency securities $ 17,399 $ — $ 12 $ (2,438) $ 14,973 Residential mortgage-backed and related securities 65,168 — — (5,972) 59,196 Municipal securities 206,566 — 11 (35,590) 170,987 Asset-backed securities 15,261 — 167 (5) 15,423 Other securities 44,239 (989) — (4,174) 39,076 $ 348,633 $ (989) $ 190 $ (48,179) $ 299,655 The Company's HTM municipal securities consist largely of private issues of municipal debt. The large majority of the municipalities are located within the Midwest. The municipal debt investments are underwritten using specific guidelines with ongoing monitoring. The Company's residential mortgage-backed and related securities portfolio consists entirely of government sponsored or government guaranteed securities. The Company has not invested in private mortgage-backed securities or pooled trust preferred securities. Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of June 30, 2024 and December 31, 2023, are summarized in the tables below. Securities AFS, for which an allowance for credit losses has been provided, are not included in these disclosures as there are no unrealized losses remaining after consideration of the ACL. Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) June 30, 2024: Securities HTM: Municipal securities $ 101,617 $ (3,262) $ 267,081 $ (45,727) $ 368,698 $ (48,989) Other securities 500 (1) 534 (15) 1,034 (16) $ 102,117 $ (3,263) $ 267,615 $ (45,742) $ 369,732 $ (49,005) Securities AFS: U.S. govt. sponsored agency securities $ 5,760 $ (4) $ 13,507 $ (2,623) $ 19,267 $ (2,627) Residential mortgage-backed and related securities 74 (1) 54,502 (6,242) 54,576 (6,243) Municipal securities 809 (1) 164,459 (40,071) 165,268 (40,072) Asset-backed securities — — — — — — Other securities 2,674 (327) 33,770 (2,986) 36,444 (3,313) $ 9,317 $ (333) $ 266,238 $ (51,922) $ 275,555 $ (52,255) 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, 2023: Securities HTM: Municipal securities $ 1,320 $ (11) $ 289,891 $ (36,628) $ 291,211 $ (36,639) Other securities 535 (15) — — 535 (15) $ 1,855 $ (26) $ 289,891 $ (36,628) $ 291,746 $ (36,654) Securities AFS: U.S. govt. sponsored agency securities $ — $ — $ 14,018 $ (2,438) $ 14,018 $ (2,438) Residential mortgage-backed and related securities — — 59,118 (5,972) 59,118 (5,972) Municipal securities 283 (2) 169,876 (35,588) 170,159 (35,590) Asset-backed securities — — 3,804 (5) 3,804 (5) Other securities 3,805 (393) 35,271 (3,781) 39,076 (4,174) $ 4,088 $ (395) $ 282,087 $ (47,784) $ 286,175 $ (48,179) At June 30, 2024, the investment portfolio included 647 securities. Of this number, 553 securities were in an unrealized loss position. The aggregate losses of these securities totaled approximately 9.5% of the total amortized cost of the portfolio. Of these 553 securities, there were 464 securities that had an unrealized loss for twelve months or more due to the current rate environment. For the six months ended June 30, 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 six months ended June 30, 2024, the remaining ACL on the related AFS security was removed as the security had been sold. 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 six months ended June 30, 2024 and 2023: Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Securities HTM Securities AFS Securities HTM Securities AFS Securities HTM Securities AFS Securities HTM Securities AFS Municipal Other Corporate Municipal Corporate Municipal Other Corporate Municipal Other securities securities Total securities securities securities securities Securities Total securities securities securities (dollars in thousands) Allowance for credit losses: Beginning balance $ 202 $ 1 $ 203 $ — $ 180 $ 989 $ 202 $ 1 $ 203 $ 989 $ 180 $ — Reduction due to sales — — — — — — — — — (544) — — Provision for credit loss expense — — — — — — — — — (445) — 989 Balance, ending $ 202 $ 1 $ 203 $ — $ 180 $ 989 $ 202 $ 1 $ 203 $ — $ 180 $ 989 Trading securities had a fair value of $22.4 million as of June 30, 2024 and December 31, 2023, respectively and consist of retained beneficial interests acquired in conjunction with Freddie Mac securitizations completed by the Company in 2023. The change in fair value on trading securities for the three months ended June 30, 2024 was a net gain of $234 thousand. The change in market value on trading securities for the six months ended June 30, 2024 was a net gain of $253 thousand. See also Note 4 to the Consolidated Financial Statements for details of these securitizations. There were no transfers of securities between classifications for the three and six months ended June 30, 2024 or 2023. All sales of securities for the three and six months ended June 30, 2024 and 2023 were securities identified as AFS. Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Proceeds from sales of securities $ — $ 1,940 $ 445 $ 30,568 Gross gains from sales of securities — 12 — 56 Gross losses from sales of securities — — — (507) The amortized cost and fair value of securities as of June 30, 2024 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 $ 1,912 $ 1,893 Due after one year through five years 21,605 22,436 Due after five years 697,311 672,118 $ 720,828 $ 696,447 Securities AFS: Due in one year or less $ 6,298 $ 6,293 Due after one year through five years 19,044 17,849 Due after five years 243,430 198,641 268,772 222,783 Residential mortgage-backed and related securities 60,950 54,708 Asset-backed securities 12,516 12,721 $ 342,238 $ 290,212 Portions of the U.S. government sponsored agency securities and municipal securities as of June 30, 2024, 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 $ 249,059 $ 246,233 Securities AFS: Municipal securities 204,660 164,606 Other securities 39,757 36,444 $ 244,417 $ 201,050 As of June 30, 2024, the Company's municipal securities portfolios were comprised of general obligation bonds issued by 79 issuers with fair values totaling $94.2 million and revenue bonds, issued by 163 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $766.5 million. The Company also held investments in general obligation bonds in 18 states, including eight states in which the aggregate fair value exceeded $5.0 million, and in revenue bonds in 31 states, including 14 states in which the aggregate fair value exceeded $5.0 million. As of December 31, 2023, the Company's municipal securities portfolios were comprised of general obligation bonds issued by 82 issuers with fair values totaling $99.4 million and revenue bonds, issued by 169 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $750.8 million. The Company also held investments in general obligation bonds in 18 states, including eight Both general obligation and revenue bonds are diversified across many issuers. As of June 30, 2024 and as of December 31, 2023, 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 Superior Quality. Additionally, many of these bonds are funding essential municipal services such as water, sewer, education, and medical facilities. The Company's municipal securities are owned by the four charters, whose investment policies set forth limits for various subcategories within the municipal securities portfolio. The investments of each charter are monitored individually, and as of June 30, 2024, all were within policy limitations approved by the Company’s board of directors. Policy limits are calculated as a percentage of each charter's total risk-based capital. As of June 30, 2024, 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 | 6 Months Ended |
Jun. 30, 2024 | |
LOANS/LEASES RECEIVABLE | |
LOANS/LEASES RECEIVABLE | NOTE 3 – LOANS/LEASES RECEIVABLE The composition of the loan/lease portfolio as of June 30, 2024 and December 31, 2023 is presented as follows: June 30, 2024 December 31, 2023 (dollars in thousands) C&I: C&I - revolving $ 362,115 $ 325,243 C&I - other */** 1,463,198 1,481,778 1,825,313 1,807,021 CRE - owner occupied 633,596 607,365 CRE - non-owner occupied 1,082,457 1,008,892 Construction and land development** 1,082,348 1,420,525 Multi-family** 1,477,483 996,143 Direct financing leases*** 25,808 31,164 1-4 family real estate**** 583,542 544,971 Consumer 143,839 127,335 6,854,386 6,543,416 Allowance for credit losses (87,706) (87,200) $ 6,766,680 $ 6,456,216 *** Direct financing leases: Net minimum lease payments to be received $ 28,823 $ 34,966 Estimated unguaranteed residual values of leased assets 165 165 Unearned lease/residual income (3,180) (3,967) 25,808 31,164 Plus deferred lease origination costs, net of fees 39 75 25,847 31,239 Less allowance for credit losses (800) (992) $ 25,047 $ 30,247 * Includes equipment financing agreements outstanding at m2, totaling $338.1 million and $319.5 million as of June 30, 2024 and December 31, 2023, respectively. ** As of June 30, 2024, there were multi-family loans held for sale in preparation for securitization totaling $243.2 million. There were no loans held for sale in preparation for securitization at December 31, 2023. *** 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 $2.9 million and $2.6 million as of June 30, 2024 and December 31, 2023, respectively. Accrued interest on loans, which is excluded from the amortized cost of loans, totaled $36.5 million and $31.8 million at June 30, 2024 and December 31, 2023, respectively, and was included in other assets on the consolidated balance sheets. Changes in net accretable discounts on acquired loans for the three and six months ended June 30, 2024 and 2023, respectively, are presented as follows: For the Three Months Ended For the Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Performing Performing Performing Performing Loans Loans Loans Loans (dollars in thousands) Balance at the beginning of the period $ (3,539) $ (5,239) $ (3,891) $ (6,088) Accretion recognized 268 135 620 984 Balance at the end of the period $ (3,271) $ (5,104) $ (3,271) $ (5,104) The aging of the loan/lease portfolio by classes of loans/leases as of June 30, 2024 and December 31, 2023 is presented as follows: As of June 30, 2024 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 $ 361,717 $ — $ 398 $ — $ — $ 362,115 C&I - other 1,440,829 5,034 4,121 — 13,214 1,463,198 CRE - owner occupied 631,321 65 — — 2,210 633,596 CRE - non-owner occupied 1,077,874 123 — — 4,460 1,082,457 Construction and land development 1,065,387 13,953 649 — 2,359 1,082,348 Multi-family 1,468,961 350 — — 8,172 1,477,483 Direct financing leases 24,705 310 264 — 529 25,808 1-4 family real estate 580,831 359 78 87 2,187 583,542 Consumer 143,198 69 157 — 415 143,839 $ 6,794,823 $ 20,263 $ 5,667 $ 87 $ 33,546 $ 6,854,386 As a percentage of total loan/lease portfolio 99.13 % 0.30 % 0.08 % 0.00 % 0.49 % 100.00 % As of December 31, 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 $ 325,243 $ — $ — $ — $ — $ 325,243 C&I - other 1,459,818 4,848 5,603 1 11,508 1,481,778 CRE - owner occupied 604,602 — 83 — 2,680 607,365 CRE - non-owner occupied 1,003,267 631 — — 4,994 1,008,892 Construction and land development 1,418,016 — — — 2,509 1,420,525 Multi-family 987,971 — — — 8,172 996,143 Direct financing leases 30,501 186 188 — 289 31,164 1-4 family real estate 538,229 3,883 534 85 2,240 544,971 Consumer 126,868 103 3 — 361 127,335 $ 6,494,515 $ 9,651 $ 6,411 $ 86 $ 32,753 $ 6,543,416 As a percentage of total loan/lease portfolio 99.25 % 0.15 % 0.10 % 0.00 % 0.50 % 100.00 % NPLs by classes of loans/leases as of June 30, 2024 and December 31, 2023 are presented as follows: As of June 30, 2024 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 — 10,923 2,291 13,214 39 CRE - owner occupied — 1,927 283 2,210 7 CRE - non-owner occupied — 1,784 2,676 4,460 13 Construction and land development — 2,359 — 2,359 7 Multi-family — — 8,172 8,172 24 Direct financing leases — 473 56 529 2 1-4 family real estate 87 1,817 370 2,274 7 Consumer — 415 — 415 1 $ 87 $ 19,698 $ 13,848 $ 33,633 100 % As of December 31, 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 1 8,865 2,643 11,509 35 CRE - owner occupied — 530 2,150 2,680 8 CRE - non-owner occupied — 1,213 3,781 4,994 15 Construction and land development — 2,509 — 2,509 8 Multi-family — — 8,172 8,172 25 Direct financing leases — 206 83 289 1 1-4 family real estate 85 1,866 374 2,325 7 Consumer — 361 — 361 1 $ 86 $ 15,550 $ 17,203 $ 32,839 100 % The Company did not recognize any interest income on nonaccrual loans during the three and six months ended June 30, 2024 and 2023. Changes in the ACL on loans/leases by portfolio segment for the three and six months ended June 30, 2024 and 2023, respectively, are presented as follows: Three Months Ended June 30, 2024 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 $ 4,440 $ 26,615 $ 8,416 $ 12,607 $ 12,737 $ 12,928 $ 5,289 $ 1,438 $ 84,470 Change in ACL for writedown of LHFS to fair value — — — — 513 (15) — — 498 Provision (741) 5,469 (363) (231) (1,196) 1,344 (66) 127 4,343 Charge-offs — (1,681) — — — — (21) (49) (1,751) Recoveries — 141 — — — — 1 4 146 Balance, ending $ 3,699 $ 30,544 $ 8,053 $ 12,376 $ 12,054 $ 14,257 $ 5,203 $ 1,520 $ 87,706 Six Months Ended June 30, 2024 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 $ 4,224 $ 27,460 $ 8,223 $ 11,581 $ 16,856 $ 12,463 $ 4,917 $ 1,476 $ 87,200 Change in ACL for writedown of LHFS to fair value — — — — — (2,879) — — (2,879) Provision (525) 7,696 (170) 795 (4,802) 4,673 309 103 8,079 Charge-offs — (5,219) — — — — (24) (68) (5,311) Recoveries — 607 — — — — 1 9 617 Balance, ending $ 3,699 $ 30,544 $ 8,053 $ 12,376 $ 12,054 $ 14,257 $ 5,203 $ 1,520 $ 87,706 * Included within the C&I – Other column are ACL on leases with a beginning balance of $884 thousand, negative provision of $106 thousand, no charge-offs and recoveries of $22 thousand. ACL on leases was $800 thousand as of June 30, 2024. ** Included within the C&I – Other column are ACL on leases with a beginning balance of $992 thousand, provision of $174 thousand, charge-offs of $89 thousand and recoveries of $71 thousand. ACL on leases was $800 thousand as of June 30, 2024. Three Months Ended June 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 $ 4,637 $ 26,637 $ 9,089 $ 12,632 $ 15,245 $ 11,621 $ 5,270 $ 1,442 $ 86,573 Change in ACL for writedown of LHFS to fair value — (5) — — 207 (2,479) — — (2,277) Provision (536) 2,318 (358) (664) 436 2,087 (57) 87 3,313 Charge-offs — (1,920) — — — — — (27) (1,947) Recoveries — 132 — — — — — 3 135 Balance, ending $ 4,101 $ 27,162 $ 8,731 $ 11,968 $ 15,888 $ 11,229 $ 5,213 $ 1,505 $ 85,797 Six Months Ended June 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) (3,834) — — (3,986) Provision (356) 2,875 (1,026) 214 1,785 1,877 245 157 5,771 Charge-offs — (3,975) (208) — (12) — — (27) (4,222) Recoveries — 514 — 5 — — 5 4 528 Balance, ending $ 4,101 $ 27,162 $ 8,731 $ 11,968 $ 15,888 $ 11,229 $ 5,213 $ 1,505 $ 85,797 * Included within the C&I – Other column are ACL on leases with a beginning balance of $1.1 million, negative provision of $10 thousand, charge-offs of $49 thousand and recoveries of $12 thousand. ACL on leases was $1.0 million as of June 30, 2023. ** Included within the C& I – Other column are ACL on leases with a beginning balance of $970 thousand, provision of $59 thousand, charge-offs of $53 thousand and recoveries of $30 thousand. ACL on leases was $1.0 million as of June 30, 2023. The composition of the ACL on loans/leases by portfolio segment based on evaluation method are as follows: As of June 30, 2024 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 $ 3,875 $ 358,240 $ 362,115 $ 10 $ 3,689 $ 3,699 C&I - other* 25,648 1,463,358 1,489,006 6,398 24,146 30,544 29,523 1,821,598 1,851,121 6,408 27,835 34,243 CRE - owner occupied 27,495 606,101 633,596 2,371 5,682 8,053 CRE - non-owner occupied 21,751 1,060,706 1,082,457 1,075 11,301 12,376 Construction and land development 6,758 1,075,590 1,082,348 790 11,264 12,054 Multi-family 8,201 1,469,282 1,477,483 4 14,253 14,257 1-4 family real estate 3,039 580,503 583,542 280 4,923 5,203 Consumer 547 143,292 143,839 67 1,453 1,520 $ 97,314 $ 6,757,072 $ 6,854,386 $ 10,995 $ 76,711 $ 87,706 * Included within the C&I – Other category are leases individually evaluated of $529 thousand with a related allowance for credit losses of $171 thousand and leases collectively evaluated of $25.3 million with a related allowance for credit losses of $629 thousand as of June 30, 2024. As of December 31, 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 $ 4,680 $ 320,563 $ 325,243 $ 632 $ 3,592 $ 4,224 C&I - other* 20,133 1,492,809 1,512,942 3,642 23,818 27,460 24,813 1,813,372 1,838,185 4,274 27,410 31,684 CRE - owner occupied 22,709 584,656 607,365 2,426 5,797 8,223 CRE - non-owner occupied 21,886 987,006 1,008,892 661 10,920 11,581 Construction and land development 2,726 1,417,799 1,420,525 809 16,047 16,856 Multi-family 8,206 987,937 996,143 3 12,460 12,463 1-4 family real estate 3,128 541,843 544,971 289 4,628 4,917 Consumer 508 126,827 127,335 56 1,420 1,476 $ 83,976 $ 6,459,440 $ 6,543,416 $ 8,518 $ 78,682 $ 87,200 * Included within the C&I – Other category are leases individually evaluated of $289 thousand with a related allowance for credit losses of $68 thousand and leases collectively evaluated of $30.9 million with a related allowance for credit losses of $924 thousand as of December 31, 2023. The following table presents the amortized cost basis of collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses as of June 30, 2024 and December 31, 2023: As of June 30, 2024 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 $ 3,875 $ — $ — $ — $ — $ — $ — $ 3,875 C&I - other* 5,919 — — — 5,177 12,176 2,376 25,648 9,794 — — — 5,177 12,176 2,376 29,523 CRE - owner occupied — 27,432 — 63 — — — 27,495 CRE - non-owner occupied — — 21,751 — — — — 21,751 Construction and land development — — 6,758 — — — — 6,758 Multi-family — — 8,201 — — — — 8,201 1-4 family real estate — — 185 2,854 — — — 3,039 Consumer — — 119 410 — — 18 547 $ 9,794 $ 27,432 $ 37,014 $ 3,327 $ 5,177 $ 12,176 $ 2,394 $ 97,314 * Included within the C&I – Other category are leases individually evaluated of $529 thousand with primary collateral of equipment as of June 30, 2024. As of December 31, 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 $ 4,680 $ — $ — $ — $ — $ — $ — $ 4,680 C&I - other* 871 — — — 5,191 13,249 822 20,133 5,551 — — — 5,191 13,249 822 24,813 CRE - owner occupied — 22,644 — 65 — — — 22,709 CRE - non-owner occupied — — 21,886 — — — — 21,886 Construction and land development — 150 2,576 — — — — 2,726 Multi-family — — 8,206 — — — — 8,206 1-4 family real estate — — 189 2,939 — — — 3,128 Consumer — — 119 365 — — 24 508 $ 5,551 $ 22,794 $ 32,976 $ 3,369 $ 5,191 $ 13,249 $ 846 $ 83,976 * Included within the C&I – Other category are leases individually evaluated of $289 thousand with primary collateral of equipment as of December 31, 2023. For all loans except direct financing leases and equipment financing agreements, 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), the Company’s credit quality indicator is performance determined by delinquency status. Delinquency status is updated daily by the Company’s loan system. For years prior to 2024, 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 June 30, 2024: As of June 30, 2024 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Internally Assigned Amortized Risk Rating 2024 2023 2022 2021 2020 Prior Cost Basis Total (dollars in thousands) C&I - revolving Pass $ 42,413 $ 28,875 $ 500 $ — $ 11 $ — $ 262,354 $ 334,153 Special Mention — 80 1,115 — — — 22,892 24,087 Substandard 2,749 — — — — — 1,126 3,875 Doubtful — — — — — — — — Total C&I - revolving $ 45,162 $ 28,955 $ 1,615 $ — $ 11 $ — $ 286,372 $ 362,115 C&I - other Pass $ 177,001 $ 313,812 $ 253,330 $ 88,465 $ 55,368 $ 161,254 $ 37,192 $ 1,086,422 Special Mention 5,892 5,914 3,624 4,859 2,950 1,117 357 24,713 Substandard 2,345 13 5,124 278 175 5,661 377 13,973 Doubtful — — — — — — — — Total C&I - other $ 185,238 $ 319,739 $ 262,078 $ 93,602 $ 58,493 $ 168,032 $ 37,926 $ 1,125,108 CRE - owner occupied Pass $ 36,647 $ 101,075 $ 118,873 $ 125,020 $ 99,720 $ 81,650 $ 27,004 $ 589,989 Special Mention 3,774 73 — 10,182 4,299 1,782 1,211 21,321 Substandard 2,172 292 534 328 16,769 2,191 — 22,286 Doubtful — — — — — — — — Total CRE - owner occupied $ 42,593 $ 101,440 $ 119,407 $ 135,530 $ 120,788 $ 85,623 $ 28,215 $ 633,596 CRE - non-owner occupied Pass $ 63,524 $ 206,697 $ 315,786 $ 169,580 $ 119,775 $ 136,806 $ 36,921 $ 1,049,089 Special Mention 4,354 158 57 — — 6,898 150 11,617 Substandard — 4,335 1,200 — 1,953 14,263 — 21,751 Doubtful — — — — — — — — Total CRE - non-owner occupied $ 67,878 $ 211,190 $ 317,043 $ 169,580 $ 121,728 $ 157,967 $ 37,071 $ 1,082,457 Construction and land development Pass $ 219,952 $ 446,423 $ 261,550 $ 101,730 $ 14,207 $ 70 $ 28,518 $ 1,072,450 Special Mention — 649 — — — — 2,491 3,140 Substandard 4,188 — 1,367 1,203 — — — 6,758 Doubtful — — — — — — — — Total Construction and land development $ 224,140 $ 447,072 $ 262,917 $ 102,933 $ 14,207 $ 70 $ 31,009 $ 1,082,348 Multi-family Pass $ 100,632 $ 203,713 $ 335,693 $ 279,294 $ 350,772 $ 185,529 $ 13,649 $ 1,469,282 Special Mention — — — — — — — — Substandard — — — 8,201 — — — 8,201 Doubtful — — — — — — — — Total Multi-family $ 100,632 $ 203,713 $ 335,693 $ 287,495 $ 350,772 $ 185,529 $ 13,649 $ 1,477,483 1-4 family real estate Pass $ 67,157 $ 129,189 $ 95,117 $ 116,564 $ 83,206 $ 72,864 $ 16,347 $ 580,444 Special Mention — — — 57 — 9 78 144 Substandard — 279 772 613 234 940 116 2,954 Doubtful — — — — — — — — Total 1-4 family real estate $ 67,157 $ 129,468 $ 95,889 $ 117,234 $ 83,440 $ 73,813 $ 16,541 $ 583,542 Consumer Pass $ 8,469 $ 20,330 $ 7,694 $ 1,924 $ 2,647 $ 2,081 $ 100,073 $ 143,218 Special Mention — — — — — — 74 74 Substandard — 174 160 33 — 115 65 547 Doubtful — — — — — — — — Total Consumer $ 8,469 $ 20,504 $ 7,854 $ 1,957 $ 2,647 $ 2,196 $ 100,212 $ 143,839 Total $ 741,269 $ 1,462,081 $ 1,402,496 $ 908,331 $ 752,086 $ 673,230 $ 550,995 $ 6,490,488 As of June 30, 2024 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Delinquency Status * 2024 2023 2022 2021 2020 Prior Cost Basis Total (dollars in thousands) C&I - other Performing $ 89,027 $ 120,871 $ 80,150 $ 27,989 $ 7,982 $ 971 $ — $ 326,990 Nonperforming — 3,056 5,099 2,640 280 25 — 11,100 Total C&I - other $ 89,027 $ 123,927 $ 85,249 $ 30,629 $ 8,262 $ 996 $ — $ 338,090 Direct financing leases Performing $ 1,102 $ 11,281 $ 8,690 $ 1,980 $ 1,259 $ 967 $ — $ 25,279 Nonperforming — 78 284 38 121 8 — 529 Total Direct financing leases $ 1,102 $ 11,359 $ 8,974 $ 2,018 $ 1,380 $ 975 $ — $ 25,808 Total $ 90,129 $ 135,286 $ 94,223 $ 32,647 $ 9,642 $ 1,971 $ — $ 363,898 * 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 six months ended June 30, 2024: Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 Gross Charge-off by Origination Year Gross Charge-off by Origination Year Classes of Loans/Leases 2024 2023 2022 2021 2020 Prior Total 2024 2023 2022 2021 2020 Prior Total (dollars in thousands) (dollars in thousands) C&I: C&I - revolving $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — C&I - other — 206 826 570 79 — 1,681 7 884 2,859 1,092 112 176 5,130 CRE - owner occupied — — — — — — — — — — — — — — CRE - non-owner occupied — — — — — — — — — — — — — — Construction and land development — — — — — — — — — — — — — — Multi-family — — — — — — — — — — — — — — Direct financing leases — — — — — — — — — 10 24 42 13 89 1-4 family real estate — 21 — — — — 21 — 21 — — — 3 24 Consumer — 1 22 11 15 — 49 — 1 41 11 15 — 68 $ — $ 228 $ 848 $ 581 $ 94 $ — $ 1,751 $ 7 $ 906 $ 2,910 $ 1,127 $ 169 $ 192 $ 5,311 The following tables show the credit quality indicator of loans by class of receivable and year of origination as of December 31, 2023: As of December 31, 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 $ — $ — $ — $ — $ — $ — $ 294,449 $ 294,449 Special Mention — — — — — — 26,289 26,289 Substandard — — — — — — 4,505 4,505 Doubtful — — — — — — — — Total C&I - revolving $ — $ — $ — $ — $ — $ — $ 325,243 $ 325,243 C&I - other Pass $ 430,764 $ 301,225 $ 128,057 $ 68,882 $ 62,149 $ 132,171 $ — $ 1,123,248 Special Mention 11,617 8,777 5,572 3,088 1,024 386 — 30,464 Substandard 14 81 625 443 2,108 5,320 — 8,591 Doubtful — — — — — — — — Total C&I - other $ 442,395 $ 310,083 $ 134,254 $ 72,413 $ 65,281 $ 137,877 $ — $ 1,162,303 CRE - owner occupied Pass $ 90,708 $ 124,388 $ 139,598 $ 109,483 $ 28,702 $ 58,214 $ 12,959 $ 564,052 Special Mention 5,091 711 8,689 5,567 466 1,828 — 22,352 Substandard 1,955 564 24 15,978 1,312 1,128 — 20,961 Doubtful — — — — — — — — Total CRE - owner occupied $ 97,754 $ 125,663 $ 148,311 $ 131,028 $ 30,480 $ 61,170 $ 12,959 $ 607,365 CRE - non-owner occupied Pass $ 200,214 $ 276,055 $ 195,013 $ 119,428 $ 72,136 $ 78,346 $ 7,406 $ 948,598 Special Mention 16,842 58 223 12,057 2,359 6,719 150 38,408 Substandard 3,805 1,200 — 1,989 14,892 — — 21,886 Doubtful — — — — — — — — Total CRE - non-owner occupied $ 220,861 $ 277,313 $ 195,236 $ 133,474 $ 89,387 $ 85,065 $ 7,556 $ 1,008,892 Construction and land development Pass $ 467,045 $ 485,376 $ 271,881 $ 151,091 $ 1,911 $ 4,137 $ 30,304 $ 1,411,745 Special Mention 6,054 — — — — — — 6,054 Substandard — 1,517 1,209 — — — — 2,726 Doubtful — — — — — — — — Total Construction and land development $ 473,099 $ 486,893 $ 273,090 $ 151,091 $ 1,911 $ 4,137 $ 30,304 $ 1,420,525 Multi-family Pass $ 180,971 $ 195,939 $ 170,893 $ 239,410 $ 102,070 $ 96,897 $ 162 $ 986,342 Special Mention 1,595 — — — — — — 1,595 Substandard — — 8,206 — — — — 8,206 Doubtful — — — — — — — — Total Multi-family $ 182,566 $ 195,939 $ 179,099 $ 239,410 $ 102,070 $ 96,897 $ 162 $ 996,143 1-4 family real estate Pass $ 133,923 $ 103,460 $ 130,724 $ 89,642 $ 25,914 $ 54,850 $ 3,329 $ 541,842 Special Mention 28 — 59 — — — — 87 Substandard 144 215 815 637 519 712 — 3,042 Doubtful — — — — — — — — Total 1-4 family real estate $ 134,095 $ 103,675 $ 131,598 $ 90,279 $ 26,433 $ 55,562 $ 3,329 $ 544,971 Consumer Pass $ 17,722 $ 9,405 $ 2,573 $ 3,024 $ 622 $ 1,842 $ 91,580 $ 126,768 Special Mention — — — — — — 59 59 Substandard 175 119 12 12 — 133 57 508 Doubtful — — — — — — — — Total Consumer $ 17,897 $ 9,524 $ 2,585 $ 3,036 $ 622 $ 1,975 $ 91,696 $ 127,335 Total $ 1,568,667 $ |
Note 4 - SECURITIZATIONS AND VA
Note 4 - SECURITIZATIONS AND VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2024 | |
SECURITIZATIONS AND VARIABLE INTEREST ENTITIES | |
SECURITIZATIONS AND VARIABLE INTEREST ENTITIES | NOTE 4. SECURITIZATIONS AND VARIABLE INTEREST ENTITIES Freddie Mac M and Q Series Securitizations In 2023, the Company completed two Freddie Mac sponsored securitizations. The Company retained beneficial interests which are classified as trading securities on the consolidated balance sheets. Details related to the securitizations and related VIEs can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. At June 30, 2024, the Company determined it was not the primary beneficiary of these VIEs, primarily because the Company did not have the power to direct the activities that most significantly impact the VIEs. Evaluation and assessment of VIEs for consolidation is performed on an ongoing basis by management. Any changes in facts and circumstances occurring since the previous primary beneficiary determination will be considered as part of this ongoing assessment. As of both June 30, 2024, and December 31, 2023, the Company’s total assets related to the VIEs were $22.4 million and there were no liabilities recorded. The Company’s maximum exposure to loss associated with these VIEs consists of the capital invested plus any unfunded equity commitments that are binding. As of June 30, 2024, the maximum exposure to loss was $31.8 million. |
Note 5 - DERIVATIVES AND HEDGIN
Note 5 - DERIVATIVES AND HEDGING ACTIVITIES | 6 Months Ended |
Jun. 30, 2024 | |
DERIVATIVES AND HEDGING ACTIVITIES | |
DERIVATIVES AND HEDGING ACTIVITIES | NOTE 5 – DERIVATIVES AND HEDGING ACTIVITIES Derivatives are summarized as follows as of June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 (dollars in thousands) Assets: Hedged Derivatives Cash Flow Hedges Interest rate caps $ 1,783 $ 2,847 Interest rate swaps 2,680 1,689 Fair Value Hedges Interest rate swaps 1,881 — Unhedged Derivatives Interest rate caps 586 951 Interest rate swaps 187,424 181,854 $ 194,354 $ 187,341 Liabilities: Hedged Derivatives Cash Flow Hedges Interest rate swaps (33,906) (30,407) Interest rate collars (468) (166) Fair Value Hedges Interest rate swaps — (3,308) Unhedged Derivatives Interest rate swaps (187,424) (181,854) $ (221,798) $ (215,735) 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 June 30, 2024 December 31, 2023 (dollars in thousands) Deposits 1/1/2020 1/1/2024 Derivatives - Assets $ 25,000 1.75 % $ - $ (79) Deposits 1/1/2020 1/1/2024 Derivatives - Assets 50,000 1.57 % - - Deposits 1/1/2020 1/1/2024 Derivatives - Assets 25,000 1.80 % - - Deposits 1/1/2020 1/1/2025 Derivatives - Assets 25,000 1.75 % 443 672 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 50,000 1.57 % 893 1,503 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 25,000 1.80 % 447 751 $ 200,000 $ 1,783 $ 2,847 The Company has entered into interest rate swaps to hedge against the risk of rising rates on one of its variable rate subordinated notes and its variable rate trust preferred securities. All of the interest rate swaps are designated as cash flow hedges in accordance with ASC 815. The details of the interest rate swaps are as follows: Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Receive Rate Pay Rate June 30, 2024 December 31, 2023 (dollars in thousands) QCR Holdings Statutory Trust V 7/7/2018 7/7/2028 Derivatives - Assets $ 10,000 7.14 % 4.54 % $ 509 $ 335 Community National Statutory Trust III 9/15/2018 9/15/2028 Derivatives - Assets 3,500 7.34 % 4.75 % 182 118 Guaranty Bankshares Statutory Trust I 9/15/2018 9/15/2028 Derivatives - Assets 4,500 7.34 % 4.75 % 234 152 Community National Statutory Trust II 9/20/2018 9/20/2028 Derivatives - Assets 3,000 7.76 % 5.17 % 156 101 QCR Holdings Statutory Trust II 9/30/2018 9/30/2028 Derivatives - Assets 10,000 8.44 % 5.85 % 522 341 QCR Holdings Statutory Trust III 9/30/2018 9/30/2028 Derivatives - Assets 8,000 8.44 % 5.85 % 418 272 Guaranty Statutory Trust II* 5/23/2019 2/23/2026 Derivatives - Assets 10,310 7.03 % 4.09 % 407 370 QCR Holdings Subordinated Note 3/1/2024 2/15/2028 Derivatives - Assets 65,000 5.34 % 4.02 % 252 - $ 114,310 $ 2,680 $ 1,689 * Acquired on April 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 June 30, 2024 December 31, 2023 (dollars in thousands) Loans 7/1/2021 7/1/2031 Derivatives - Liabilities $ 35,000 1.40 % 5.45 % $ (5,623) $ (5,004) Loans 7/1/2021 7/1/2031 Derivatives - Liabilities 50,000 1.40 % 5.45 % (8,033) (7,149) Loans 7/1/2021 7/1/2031 Derivatives - Liabilities 40,000 1.40 % 5.45 % (6,436) (5,730) Loans 10/1/2022 7/1/2031 Derivatives - Liabilities 25,000 1.30 % 5.45 % (4,047) (3,696) Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 15,000 1.91 % 5.45 % (977) (868) Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 50,000 1.91 % 5.45 % (3,256) (2,892) Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 35,000 1.91 % 5.45 % (2,279) (2,024) Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 50,000 1.91 % 5.45 % (3,255) (3,044) $ 300,000 $ (33,906) $ (30,407) 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 collar is as follows: Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Cap Strike Rate Floor Strike Rate June 30, 2024 December 31, 2023 Loans 10/1/2022 10/1/2026 Derivatives - Liabilities $ 50,000 4.40 % 2.44 % $ (468) $ (166) 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 June 30, 2024 December 31, 2023 (dollars in thousands) Loans 7/12/2023 8/1/2025 Derivatives - Assets 15,000 5.33 % 4.60 % 46 (69) Loans 7/12/2023 2/1/2026 Derivatives - Assets $ 25,000 5.33 % 4.38 % $ 104 $ (195) Loans 7/12/2023 2/1/2026 Derivatives - Assets 15,000 5.33 % 4.38 % 62 (117) Loans 7/12/2023 2/1/2026 Derivatives - Assets 20,000 5.33 % 4.38 % 83 (140) Loans 7/12/2023 8/1/2026 Derivatives - Assets 30,000 5.33 % 4.21 % 151 (293) Loans 7/12/2023 8/1/2026 Derivatives - Assets 15,000 5.33 % 4.21 % 76 (146) Loans 7/12/2023 8/1/2026 Derivatives - Assets 20,000 5.33 % 4.21 % 101 (176) Loans 7/12/2023 2/1/2027 Derivatives - Assets 32,500 5.33 % 4.08 % 194 (364) Loans 7/12/2023 2/1/2027 Derivatives - Assets 15,000 5.33 % 4.08 % 90 (168) Loans 7/12/2023 2/1/2027 Derivatives - Assets 20,000 5.33 % 4.08 % 119 (202) Loans 7/12/2023 8/1/2027 Derivatives - Assets 32,500 5.33 % 3.98 % 225 (397) Loans 7/12/2023 8/1/2027 Derivatives - Assets 15,000 5.33 % 3.98 % 104 (183) Loans 7/12/2023 8/1/2027 Derivatives - Assets 25,000 5.33 % 3.98 % 172 (276) Loans 7/12/2023 2/1/2028 Derivatives - Assets 30,000 5.33 % 3.90 % 236 (388) Loans 7/12/2023 2/1/2028 Derivatives - Assets 15,000 5.33 % 3.90 % 118 (194) $ 325,000 $ 1,881 $ (3,308) 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 other assets or other liabilities. For derivative instruments that are designated as unhedged, the change in fair value of the derivative instrument is recognized into current earnings. The details of the unhedged interest rate caps are as follows: Balance Sheet Fair Value as of Effective Date Maturity Date Location Notional Amount Strike Rate June 30, 2024 December 31, 2023 (dollars in thousands) 2/1/2020 2/1/2024 Derivatives - Assets $ 25,000 1.90 % $ - $ 79 3/1/2020 3/3/2025 Derivatives - Assets 25,000 1.90 % 586 872 $ 50,000 $ 586 $ 951 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 an upstream counterparty. Additionally, the Company receives an upfront, non-refundable fee from the upstream counterparty, dependent upon the pricing that is recognized upon receipt from the counterparty. Because the Company acts as an intermediary for the customer, changes in the fair value of the underlying derivative contracts, for the most part, offset each other and do not significantly impact the Company’s results of operations. Interest rate swaps that are not designated as hedging instruments are summarized as follows: June 30, 2024 December 31, 2023 Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value (dollars in thousands) Non-Hedging Interest Rate Derivatives Assets: Interest rate swap contracts $ 3,731,140 $ 187,424 $ 3,308,024 $ 181,854 Non-Hedging Interest Rate Derivatives Liabilities: Interest rate swap contracts $ 3,731,140 $ 187,424 $ 3,308,024 $ 181,854 The effect of cash flow hedging and fair value accounting on the consolidated statements of income for the three and six months ended June 30, 2024 and 2023 are as follows: Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Interest and Interest Interest and Interest Dividend Income Expense Dividend Income Expense (dollars in thousands) Income and expense line items presented in the consolidated statements of income $ 119,746 $ 63,583 $ 98,377 $ 45,172 The effects of cash flow hedging: Gain (loss) on interest rate caps on deposits - (1,039) - (1,875) Gain (loss) on interest rate swaps on junior subordinated debentures - (337) - (275) Gain (loss) on interest rate swaps and collars on loans (2,987) - (2,207) - The effects of fair value hedging: Gain on interest rate swaps on loans 985 - - - Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 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 $ 234,795 $ 123,933 $ 192,594 $ 82,579 The effects of cash flow hedging: Gain (loss) on interest rate caps on deposits - (2,155) - (3,456) Gain (loss) on interest rate swaps on junior subordinated debentures - (673) - (502) Gain (loss) on interest rate swaps and collars on loans (5,961) - (4,262) - The effects of fair value hedging: Gain on interest rate swaps on loans 1,962 - - - The Company’s hedged interest rate swaps and non-hedged interest rate swaps are collateralized with cash and investment securities with carrying values as follows: June 30, 2024 December 31, 2023 (dollars in thousands) Cash $ 34,960 $ 51,680 U.S govt. sponsored agency securities 6,262 6,413 Municipal securities 63,824 68,651 Residential mortgage-backed and related securities 21,268 23,358 $ 126,314 $ 150,102 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 6 - INCOME TAXES
Note 6 - INCOME TAXES | 6 Months Ended |
Jun. 30, 2024 | |
INCOME TAXES | |
INCOME TAXES | NOTE 6 – IN COME TAXES A reconciliation of the expected federal income tax expense to the income tax expense included in the consolidated statements of income is as follows for the three and six months ended June 30, 2024 and 2023: For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 % of % of % of % of Pretax Pretax Pretax Pretax Amount Income Amount Income Amount Income Amount Income (dollars in thousands) Computed "expected" tax expense $ 6,650 21.0 % $ 6,802 21.0 % $ 12,509 21.0 % $ 13,090 21.0 % Tax exempt income, net (3,986) (12.6) (3,182) (9.8) (7,761) (13.0) (6,398) (10.3) Bank-owned life insurance (622) (2.0) (176) (0.5) (804) (1.3) (324) (0.5) State income taxes, net of federal benefit, current year 1,088 3.4 1,239 3.8 2,102 3.5 2,428 3.9 Tax credits 35 0.1 (32) (0.1) (51) (0.1) (209) (0.3) Income from tax credit equity investments (497) (1.6) (478) (1.5) (1,093) (1.8) (891) (1.4) Excess tax benefit on stock options exercised and restricted stock awards vested (54) (0.1) (46) (0.1) (524) (0.9) (444) (0.7) Other (60) (0.1) (160) (0.6) (652) (1.1) (503) (0.9) Federal and state income tax expense $ 2,554 8.1 % $ 3,967 12.2 % $ 3,726 6.3 % $ 6,749 10.8 % Effective January 1, 2024, the Company made an election under ASU 2023-02 to account for its LIHTC investments using the proportional amortization method under newly adopted accounting guidance. Under the proportional amortization method, the Company applies a practical expedient for its LIHTC investments and amortizes the initial cost of the qualifying investments in proportion to the income tax credits received in the current period as compared to the total income tax credits expected to be received over the life of the investment. For LIHTC investments, the Company amortized the initial cost of qualifying investments in proportion to the income tax credits and other income tax benefits received in the current period. The following table summarizes the impact to the Consolidated Statements of Operations relative to the Company’s tax credit programs for which it has elected to apply the proportional amortization method of accounting: For the Three Months Ended For the Six Months Ended June 30, 2024 March 31, 2024 June 30, 2023 June 30, 2024 June 30, 2023 (dollars in thousands) (dollars in thousands) Tax credits recognized $ 2,115 $ 2,204 $ 1,784 $ 4,319 $ 2,905 Other tax benefits recognized 613 729 514 1,342 1,022 Amortization (2,092) (2,061) (1,616) (4,153) (2,581) Net benefit included in income tax 636 872 682 1,508 1,346 Other income — — — — — Allocated income on investments — — — — — Net benefit included in noninterest income — — — — — Net benefit included in the Consolidated Statements of Operations $ 636 $ 872 $ 682 $ 1,508 $ 1,346 The Company did not recognize impairment losses resulting from the forfeiture or ineligibility of income tax credits or other circumstances during the three and six months ending June 30, 2024 and 2023. |
Note 7 - EARNINGS PER SHARE
Note 7 - EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2024 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 7 - EARNINGS PER SHARE The following information was used in the computation of EPS on a basic and diluted basis: Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 (dollars in thousands, except share data) Net income $ 29,114 $ 28,425 $ 55,840 $ 55,582 Basic EPS $ 1.73 $ 1.70 $ 3.32 $ 3.32 Diluted EPS $ 1.72 $ 1.69 $ 3.30 $ 3.29 Weighted average common shares outstanding 16,814,814 16,701,950 16,799,081 16,739,120 Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan 107,040 97,577 117,183 131,710 Weighted average common and common equivalent shares outstanding 16,921,854 16,799,527 16,916,264 16,870,830 |
Note 8 - FAIR VALUE
Note 8 - FAIR VALUE | 6 Months Ended |
Jun. 30, 2024 | |
FAIR VALUE | |
FAIR VALUE | NOTE 8 – FAIR VALUE Accounting guidance on fair value measurement uses a hierarchy intended to maximize the use of observable inputs and minimize the use of unobservable inputs. This hierarchy includes three levels and is based upon the valuation techniques used to measure assets and liabilities. The three levels are as follows: ● Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in markets; ● Level 2 – Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; and ● Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Assets and liabilities measured at fair value on a recurring basis comprise the following at June 30, 2024 and December 31, 2023: Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (dollars in thousands) June 30, 2024: Securities AFS: U.S. treasuries and govt. sponsored agency securities $ 20,101 $ — $ 20,101 $ — Residential mortgage-backed and related securities 54,708 — 54,708 — Municipal securities 165,268 — 165,268 — Asset-backed securities 12,721 — 12,721 — Other securities 37,414 — 37,414 — Securities trading 22,362 — — 22,362 Derivatives 194,354 — 194,354 — Total assets measured at fair value $ 506,928 $ — $ 484,566 $ 22,362 Derivatives $ 221,798 $ — $ 221,798 $ — Total liabilities measured at fair value $ 221,798 $ — $ 221,798 $ — December 31, 2023: Securities AFS: U.S. govt. sponsored agency securities $ 14,973 $ — $ 14,973 $ — Residential mortgage-backed and related securities 59,196 — 59,196 — Municipal securities 170,987 — 170,987 — Asset-backed securities 15,423 — 15,423 — Other securities 39,076 — 39,076 — Securities trading 22,369 — — 22,369 Derivatives 187,341 — 187,341 — Total assets measured at fair value $ 509,365 $ — $ 486,996 $ 22,369 Derivatives $ 215,735 $ — $ 215,735 $ — Total liabilities measured at fair value $ 215,735 $ — $ 215,735 $ — 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, SOFR yield curve, credit spreads and prices from market makers and live trading systems (Level 2 inputs). Trading securities consist of retained beneficial interests from securitizations and are classified as a Level 3 in the fair value hierarchy. Fair values are estimated using the discounted cash flow method, including discount rates which are deemed to be significant unobservable inputs. As of June 30, 2024, the discount rates ranged from 5.85% to 7.62%. 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 June 30, 2024 and December 31, 2023: Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Fair Value Level 1 Level 2 Level 3 (dollars in thousands) June 30, 2024: Loans/leases evaluated individually $ 33,910 $ — $ — $ 33,910 Loans receivable held for sale in preparation for securitization 243,193 — — 243,193 OREO 399 — — 399 Other repossessed assets 576 — — 576 $ 278,078 $ — $ — $ 278,078 December 31, 2023: Loans/leases evaluated individually $ 33,656 $ — $ — $ 33,656 OREO 1,455 — — 1,455 $ 35,111 $ — $ — $ 35,111 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 settlement 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 acquired is 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. Other repossessed assets in the table above consists of equipment acquired through repossession and settlement 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 acquired is generally determined based on current average auction prices database used by a national auction company hired by the Company. The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value: Quantitative Information about Level Fair Value Measurements Fair Value Fair Value June 30, December 31, 2024 2023 Valuation Technique Unobservable Input Range (dollars in thousands) Loans/leases evaluated individually $ 33,910 $ 33,656 Appraisal of collateral Appraisal adjustments -10.00 % to -30.00 % Loans receivable held for sale in preparation for securitization 243,193 — Market prices for similar loans Market price adjustments n/a OREO 399 1,455 Appraisal of collateral Appraisal adjustments 0.00 % to -35.00 % Other repossessed assets 576 — Average auction prices Market price adjustments n/a For the loans/leases evaluated individually and OREO, 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 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 six months ended June 30, 2024 and 2023. The following table presents the carrying values and estimated fair values of financial assets and liabilities carried on the Company's consolidated balance sheets, including those financial assets and liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis: Fair Value As of June 30, 2024 As of December 31, 2023 Hierarchy Carrying Estimated Carrying Estimated Level Value Fair Value Value Fair Value (dollars in thousands) Cash and due from banks Level 1 $ 92,173 $ 92,173 $ 97,123 $ 97,123 Federal funds sold Level 2 8,150 8,150 35,450 35,450 Interest-bearing deposits at financial institutions Level 2 94,112 94,112 104,919 104,919 Investment securities: HTM Level 2 720,625 696,447 683,504 680,279 AFS Level 2 290,212 290,212 299,655 299,655 Trading Level 3 22,362 22,362 22,369 22,369 Loans/leases receivable, net Level 3 31,398 33,910 31,163 33,656 Loans/leases receivable, net Level 2 6,735,282 6,468,550 6,425,053 6,125,433 Derivatives Level 2 194,354 194,354 187,341 187,341 Deposits: Nonmaturity deposits Level 2 5,688,913 5,688,913 5,504,323 5,504,323 Time deposits Level 2 1,075,754 1,071,579 1,009,682 996,746 Short-term borrowings Level 2 1,600 1,600 1,500 1,500 FHLB advances Level 2 485,000 485,231 435,000 437,178 Subordinated notes Level 2 233,276 239,136 233,064 240,235 Junior subordinated debentures Level 2 48,795 40,718 48,731 40,397 Derivatives Level 2 221,798 221,798 215,735 215,735 |
Note 9 - BUSINESS SEGMENT INFOR
Note 9 - BUSINESS SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2024 | |
BUSINESS SEGMENT INFORMATION | |
BUSINESS SEGMENT INFORMATION | NOTE 9 – BUSINESS SEGMENT INFORMATION Selected financial and descriptive information is required to be disclosed for reportable operating segments, applying a “management perspective” as the basis for identifying reportable segments. The management perspective is determined by the view that management takes of the segments within the Company when making operating decisions, allocating resources, and measuring performance. The segments of the Company have been defined by the structure of the Company's internal organization, focusing on the financial information that the Company's operating decision-makers routinely use to make decisions about operating matters. The Company’s Commercial Banking business is geographically divided by markets into the operating segments which are the four subsidiary banks wholly owned by the Company: QCBT, CRBT, CSB, and GB. Each of these operating segments offers similar products and services, but is managed separately due to different pricing, product demand, and consumer markets. Each offers commercial, consumer, and mortgage loans and deposit services. The Company's All Other segment includes the corporate operations of the parent and operations of all other consolidated subsidiaries and/or defined operating segments that fall below the segment reporting thresholds. Selected financial information on the Company's business segments is presented as follows as of and for the three and six months ended June 30, 2024 and 2023: Commercial Banking Intercompany Consolidated QCBT CRBT CSB GB All other Eliminations Total (dollars in thousands) Three Months Ended June 30, 2024 Total revenue $ 41,866 $ 50,167 $ 21,480 $ 37,924 $ 37,295 $ (38,097) $ 150,635 Net interest income 17,725 17,100 11,284 13,862 (4,174) 366 56,163 Provision for credit losses 3,228 2,028 47 193 — — 5,496 Net income (loss) from continuing operations 5,557 17,736 4,627 8,266 29,667 (36,739) 29,114 Goodwill 3,223 14,980 9,888 110,936 — — 139,027 Intangibles — 755 1,148 10,538 — — 12,441 Total assets 2,559,049 2,428,266 1,531,109 2,369,754 1,263,250 (1,279,437) 8,871,991 Three Months Ended June 30, 2023 Total revenue $ 35,375 $ 51,303 $ 17,333 $ 28,324 $ 34,925 $ (36,363) $ 130,897 Net interest income 16,403 16,223 10,657 13,601 (3,989) 310 53,205 Provision for credit losses 3,620 480 198 (692) — — 3,606 Net income (loss) from continuing operations 4,816 19,353 4,613 5,156 28,945 (34,458) 28,425 Goodwill 3,223 14,980 9,888 110,936 — — 139,027 Intangibles — 991 1,729 12,508 — — 15,228 Total assets 2,611,832 2,389,623 1,332,966 2,179,844 1,143,683 (1,431,275) 8,226,673 Six Months Ended June 30, 2024 Total revenue $ 82,248 $ 98,142 $ 41,989 $ 71,549 $ 70,964 $ (72,350) $ 292,542 Net interest income 34,688 34,008 22,359 27,376 (8,283) 714 110,862 Provision for credit losses 6,453 1,794 233 (15) — — 8,465 Net income (loss) from continuing operations 10,460 35,779 9,076 13,272 56,990 (69,737) 55,840 Goodwill 3,223 14,980 9,888 110,936 — — 139,027 Intangibles — 755 1,148 10,538 — — 12,441 Total assets 2,559,049 2,428,266 1,531,109 2,369,754 1,263,250 (1,279,437) 8,871,991 Six Months Ended June 30, 2023 Total revenue $ 68,499 $ 94,426 $ 33,901 $ 55,945 $ 69,594 $ (71,409) $ 250,956 Net interest income 33,391 33,402 21,547 28,973 (7,952) 654 110,015 Provision for credit losses 5,193 1,996 690 (345) — — 7,534 Net income (loss) from continuing operations 11,854 35,753 9,373 10,543 56,625 (68,566) 55,582 Goodwill 3,223 14,980 9,888 110,936 — — 139,027 Intangibles — 991 1,729 12,508 — — 15,228 Total assets 2,611,832 2,389,623 1,332,966 2,179,844 1,143,683 (1,431,275) 8,226,673 |
Note 10 - REGULATORY CAPITAL RE
Note 10 - REGULATORY CAPITAL REQUIREMENTS | 6 Months Ended |
Jun. 30, 2024 | |
REGULATORY CAPITAL REQUIREMENTS | |
REGULATORY CAPITAL REQUIREMENTS | NOTE 10 – REGULATORY CAPITAL REQUIREMENTS The Company (on a consolidated basis) and the subsidiary banks are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company and the subsidiary banks' financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the subsidiary banks must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain OBS items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the subsidiary banks to maintain minimum amounts and ratios (set forth in the following table) of total common equity Tier 1, Tier 1 capital to risk-weighted assets and Tier 1 capital to average assets, each as defined by regulation. Management believes, as of June 30, 2024 and December 31, 2023, that the Company and the subsidiary banks met all capital adequacy requirements to which they are subject. Under the regulatory framework for prompt corrective action, to be categorized as “well capitalized,” an institution must maintain minimum total risk-based, Tier 1 risk-based, Tier 1 leverage and common equity Tier 1 ratios as set forth in the following tables. The Company and the subsidiary banks’ actual capital amounts and ratios as of June 30, 2024 and December 31, 2023 are presented in the following tables (dollars in thousands). As of June 30, 2024 and December 31, 2023, each of the subsidiary banks met such capital requirements to be “well capitalized.” For Capital Adequacy To Be Well Capitalized For Capital Purposes With Capital Under Prompt Corrective Actual Adequacy Purposes Conservation Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio ( dollars in thousands) As of June 30, 2024: Company: Total risk-based capital $ 1,215,780 14.21 % $ 684,345 > 8.00 % $ 855,431 > 10.50 % $ 898,203 > 10.00 % Tier 1 risk-based capital 897,236 10.49 513,259 > 6.00 684,345 > 8.50 727,116 > 8.00 Tier 1 leverage 897,236 10.40 345,057 > 4.00 431,321 > 4.00 345,057 > 5.00 Common equity Tier 1 848,441 9.92 384,944 > 4.50 556,030 > 7.00 598,802 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 311,392 12.91 % $ 192,968 > 8.00 % $ 241,210 > 10.50 % $ 253,271 > 10.00 % Tier 1 risk-based capital 281,205 11.66 144,726 > 6.00 192,968 > 8.50 205,029 > 8.00 Tier 1 leverage 281,205 11.11 101,245 > 4.00 126,557 > 4.00 101,245 > 5.00 Common equity Tier 1 281,205 11.66 108,545 > 4.50 156,787 > 7.00 168,847 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 417,981 15.87 % $ 210,700 > 8.00 % $ 263,375 > 10.50 % $ 276,544 > 10.00 % Tier 1 risk-based capital 390,482 14.83 158,025 > 6.00 210,700 > 8.50 223,869 > 8.00 Tier 1 leverage 390,482 16.22 96,312 > 4.00 120,390 > 4.00 96,312 > 5.00 Common equity Tier 1 390,482 14.83 118,519 > 4.50 171,194 > 7.00 184,362 > 6.50 Community State Bank: Total risk-based capital $ 179,959 12.61 % $ 114,161 > 8.00 % $ 142,701 > 10.50 % $ 149,836 > 10.00 % Tier 1 risk-based capital 165,686 11.61 85,621 > 6.00 114,161 > 8.50 121,296 > 8.00 Tier 1 leverage 165,686 11.30 58,666 > 4.00 73,332 > 4.00 58,666 > 5.00 Common equity Tier 1 165,686 11.61 64,216 > 4.50 92,756 > 7.00 99,891 > 6.50 Guaranty Bank: Total risk-based capital $ 282,164 13.26 % $ 170,291 > 8.00 % $ 212,864 > 10.50 % $ 223,508 > 10.00 % Tier 1 risk-based capital 258,749 12.16 127,719 > 6.00 170,291 > 8.50 180,935 > 8.00 Tier 1 leverage 258,749 11.54 89,674 > 4.00 112,092 > 4.00 89,674 > 5.00 Common equity Tier 1 258,749 12.16 95,789 > 4.50 138,362 > 7.00 149,005 > 6.50 For Capital Adequacy To Be Well Capitalized For Capital Purposes With Capital Under Prompt Corrective Actual Adequacy Purposes Conservation Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio ( dollars in thousands) As of December 31, 2023: Company: Total risk-based capital $ 1,171,047 14.29 % $ 655,461 > 8.00 % $ 860,293 > 10.50 % $ 819,327 > 10.00 % Tier 1 risk-based capital 841,052 10.27 491,596 > 6.00 696,428 > 8.50 655,461 > 8.00 Tier 1 leverage 841,052 10.03 335,420 > 4.00 335,420 > 4.00 419,275 > 5.00 Common equity Tier 1 792,321 9.67 368,697 > 4.50 573,529 > 7.00 532,562 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 300,413 12.67 % $ 189,707 > 8.00 % $ 248,990 > 10.50 % $ 237,133 > 10.00 % Tier 1 risk-based capital 270,744 11.42 142,280 > 6.00 201,563 > 8.50 189,707 > 8.00 Tier 1 leverage 270,744 11.23 96,425 > 4.00 96,425 > 4.00 120,531 > 5.00 Common equity Tier 1 270,744 11.42 106,710 > 4.50 165,993 > 7.00 154,137 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 381,514 15.60 % $ 195,687 > 8.00 % $ 256,840 > 10.50 % $ 244,609 > 10.00 % Tier 1 risk-based capital 354,940 14.51 146,766 > 6.00 207,918 > 8.50 195,687 > 8.00 Tier 1 leverage 354,940 14.77 96,093 > 4.00 96,093 > 4.00 120,116 > 5.00 Common equity Tier 1 354,940 14.51 110,074 > 4.50 171,227 > 7.00 158,996 > 6.50 Community State Bank: Total risk-based capital $ 171,747 13.22 % $ 103,903 > 8.00 % $ 136,372 > 10.50 % $ 129,878 > 10.00 % Tier 1 risk-based capital 156,629 12.06 77,927 > 6.00 110,397 > 8.50 103,903 > 8.00 Tier 1 leverage 156,629 11.19 56,005 > 4.00 56,005 > 4.00 70,007 > 5.00 Common equity Tier 1 156,629 12.06 58,445 > 4.50 90,915 > 7.00 84,421 > 6.50 Guaranty Bank: Total risk-based capital $ 267,822 12.68 % $ 168,967 > 8.00 % $ 221,770 > 10.50 % $ 211,209 > 10.00 % Tier 1 risk-based capital 244,506 11.58 126,726 > 6.00 179,528 > 8.50 168,967 > 8.00 Tier 1 leverage 244,506 11.41 85,688 > 4.00 85,688 > 4.00 107,110 > 5.00 Common equity Tier 1 244,506 11.58 95,044 > 4.50 147,847 > 7.00 137,286 > 6.50 |
Note 11 - COMMITMENTS
Note 11 - COMMITMENTS | 6 Months Ended |
Jun. 30, 2024 | |
COMMITMENTS | |
COMMITMENTS | NOTE 11 - 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 June 30, 2024, the Company has paid $10.4 million of the contract price, resulting in a remaining future commitment of $6.6 million. Construction is anticipated to be completed in the fourth quarter of 2024. The Company entered into a construction contract in 2024 for the construction of a new CSB facility in Ankeny, Iowa. The Company will pay the contractor a contract price of approximately $41.3 million, subject to certain agreed upon additions and deductions. As of June 30, 2024, the Company has not been obligated to make any payments under the terms of the contract. Construction is anticipated to be completed in 2026. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||
Net Income (Loss) | $ 29,114 | $ 26,726 | $ 28,425 | $ 27,157 | $ 55,840 | $ 55,582 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
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 |
Note 1 - SUMMARY OF SIGNIFICA_2
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies | |
Basis of presentation | Basis of presentation The financial information of the Company included herein has been prepared in accordance with GAAP for interim financial reporting and has been prepared pursuant to the rules and regulations for reporting on Form 10-Q and Rule 10-01 of Regulation S-X. Such information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented. Any differences appearing between the numbers presented in financial statements and management's discussion and analysis are due to rounding. The results of the interim period ended June 30, 2024 are not necessarily indicative of the results expected for the year ending December 31, 2024, 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 GAAP: Generally Accepted Accounting Principles AFS: Available for sale GB: Guaranty Bank Allowance: Allowance for credit losses GDP: Gross domestic product AOCI: Accumulated other comprehensive income (loss) GFED: Guaranty Federal Bancshares, Inc. ASC: Accounting Standards Codification HTM: Held to maturity ASU: Accounting Standards Update ICS: Insured Cash Sweep BOLI: Bank-owned life insurance LIBOR: London Inter-Bank Offered Rate Caps: Interest rate cap derivatives LIHTC: Low-income housing tax credit CDARS: Certificate of Deposit Account Registry Service m2: m2 Equipment Finance, LLC CECL: Current Expected Credit Losses NIM: Net interest margin Community National: Community National Bancorporation NPA: Nonperforming asset Company: QCR Holdings, Inc. NPL: Nonperforming loan CRBT: Cedar Rapids Bank & Trust Company OBS: Off-balance sheet CRE: Commercial real estate OREO: Other real estate owned CSB: Community State Bank OTTI: Other-than-temporary impairment C&I: Commercial and industrial PCAOB: Public Company Accounting Oversight Board 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 SOFR: Secured Overnight Financing rate Federal Reserve: Board of Governors of the Federal TA: Tangible assets Reserve System TCE: Tangible common equity FHLB: Federal Home Loan Bank TEY: Tax equivalent yield FRB: Federal Reserve Bank of Chicago VIE: Variable interest entities |
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. Additionally, the Company also engages in wealth management services through its banking subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. |
Credit quality indicators | Credit quality indicators 1. Highest Quality (pass) – loans of the highest quality with no credit risk, including those fully secured by bank certificates of deposit and U.S. government securities. 2. Superior Quality (pass) – loans with very strong credit quality. Borrowers have exceptionally strong earnings, liquidity, capital, cash flow coverage, and management ability. Includes loans secured by high quality, marketable securities, certificates of deposit from other institutions, and cash value of life insurance. Also includes loans supported by U.S. government, state, or municipal guarantees. 3. Good Quality (pass) – loans with good credit quality. Established borrowers with good financial condition, including earnings, liquidity, capital and cash flow coverage. Financial performance is above industry average. Management is capable and is very experienced. Collateral coverage, if applicable, is good. Includes loans secured by personal assets and business assets including equipment, accounts receivable, inventory, and real estate. 4. Moderate Quality (pass) – loans with moderate credit quality. Established borrowers with good financial condition, including earnings, liquidity, capital and cash flow coverage. Financial performance should be above industry averages. Management is capable and has more than adequate experience. Collateral coverage, if applicable, is more than adequate. Includes loans secured by personal assets and business assets including equipment, accounts receivable, inventory, and real estate. 5. Satisfactory Quality (pass) – loans with satisfactory credit quality. Established borrowers with satisfactory financial condition, including earnings, liquidity, capital, and cash flow coverage. Performance should at or above industry averages. Management is capable with adequate experience. Collateral coverage, if applicable, is adequate. Includes loans secured by personal assets and business assets including equipment, accounts receivable, inventory, and real estate. 6. Fair Quality (pass) – loans with acceptable credit quality. The primary repayment source is adequate; however, management’s ability to maintain consistent profitability is unproven or uncertain. Borrowers exhibit acceptable leverage and liquidity. May include new businesses with inexperienced management, performance at industry averages, or borrowers operating in highly cyclical or deteriorating industries. 7. Low Quality (pass) – loans with low credit quality. The primary repayment source remains adequate; however, management’s ability to maintain consistent profitability remains unproven or uncertain. Borrowers exhibit moderate leverage and limited liquidity. May include new businesses with inexperienced management, performance below industry averages, or borrowers operating in highly cyclical or deteriorating industries. 8. Early Warning (pass) – loans where the borrowers have generally performed as agreed, however unfavorable financial trends exist or are anticipated. Earnings may be erratic, with marginal cash flow or declining sales. Borrowers reflect leveraged financial condition and/or marginal liquidity. Management may be new, and a track record of performance has yet to be developed. Financial information may be incomplete, and reliance on secondary repayment sources may be increasing. 9. Special Mention – loans where the borrowers exhibit credit weaknesses or unfavorable financial trends requiring close monitoring. Weaknesses and adverse trends are more pronounced than Early Warning loans, and if left uncorrected, may jeopardize repayment according to the contractual terms. Currently, no loss of principal or interest is expected. Borrowers in this category have deteriorated to the point that it would be difficult to refinance with another lender. Special Mention should be assigned to borrowers in turnaround situations. This rating is intended as a transitional rating; therefore, it is generally not assigned to a borrower for a period of more than one year . 10. Substandard – loans which are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if applicable. These loans have a well-defined weakness or weaknesses which jeopardize repayment according to the contractual terms. There is distinct loss potential if the weaknesses are not corrected. Includes loans with insufficient cash flow coverage which are collateral dependent, other real estate owned, and repossessed assets. 11. Doubtful – loans which have all the weaknesses inherent in a Substandard loan, with the added characteristic that existing weaknesses make full principal collection, based on current facts, conditions, and values, highly doubtful. The possibility of loss is extremely high, but because of pending factors, recognition of a loss is deferred until a more exact status can be determined. All doubtful loans will be placed on non-accrual, with all payments, including interest, applied to principal reduction. The credit quality indicator for leases and equipment financing agreements remains unchanged at performing and nonperforming status. |
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 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) In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” In March 2024, the FASB issued ASU 2024-01, “Compensation – Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards.” Topic 718, Compensation - Stock Compensation” |
Note 2 - INVESTMENT SECURITIES
Note 2 - INVESTMENT SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
INVESTMENT SECURITIES | |
Schedule of amortized cost and fair value of HTM and AFS investment securities | Allowance Gross Gross Amortized for Credit Unrealized Unrealized Fair Cost (Losses) Gains (Losses) Value (dollars in thousands) June 30, 2024: Securities HTM: Municipal securities $ 719,778 $ (202) $ 24,827 $ (48,989) $ 695,414 Other securities 1,050 (1) — (16) 1,033 $ 720,828 $ (203) $ 24,827 $ (49,005) $ 696,447 Securities AFS: U.S. govt. sponsored agency securities $ 22,717 $ — $ 11 $ (2,627) $ 20,101 Residential mortgage-backed and related securities 60,950 — 1 (6,243) 54,708 Municipal securities 205,340 — — (40,072) 165,268 Asset-backed securities 12,516 — 205 — 12,721 Other securities 40,715 — 12 (3,313) 37,414 $ 342,238 $ — $ 229 $ (52,255) $ 290,212 Allowance Gross Gross Amortized for Credit Unrealized Unrealized Fair Cost (Losses) Gains (Losses) Value (dollars in thousands) December 31, 2023: Securities HTM: Municipal securities $ 682,657 $ (202) $ 33,385 $ (36,639) $ 679,201 Other securities 1,050 (1) 44 (15) 1,078 $ 683,707 $ (203) $ 33,429 $ (36,654) $ 680,279 Securities AFS: U.S. govt. sponsored agency securities $ 17,399 $ — $ 12 $ (2,438) $ 14,973 Residential mortgage-backed and related securities 65,168 — — (5,972) 59,196 Municipal securities 206,566 — 11 (35,590) 170,987 Asset-backed securities 15,261 — 167 (5) 15,423 Other securities 44,239 (989) — (4,174) 39,076 $ 348,633 $ (989) $ 190 $ (48,179) $ 299,655 |
Securities have been in a continuous unrealized loss position | Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) June 30, 2024: Securities HTM: Municipal securities $ 101,617 $ (3,262) $ 267,081 $ (45,727) $ 368,698 $ (48,989) Other securities 500 (1) 534 (15) 1,034 (16) $ 102,117 $ (3,263) $ 267,615 $ (45,742) $ 369,732 $ (49,005) Securities AFS: U.S. govt. sponsored agency securities $ 5,760 $ (4) $ 13,507 $ (2,623) $ 19,267 $ (2,627) Residential mortgage-backed and related securities 74 (1) 54,502 (6,242) 54,576 (6,243) Municipal securities 809 (1) 164,459 (40,071) 165,268 (40,072) Asset-backed securities — — — — — — Other securities 2,674 (327) 33,770 (2,986) 36,444 (3,313) $ 9,317 $ (333) $ 266,238 $ (51,922) $ 275,555 $ (52,255) 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, 2023: Securities HTM: Municipal securities $ 1,320 $ (11) $ 289,891 $ (36,628) $ 291,211 $ (36,639) Other securities 535 (15) — — 535 (15) $ 1,855 $ (26) $ 289,891 $ (36,628) $ 291,746 $ (36,654) Securities AFS: U.S. govt. sponsored agency securities $ — $ — $ 14,018 $ (2,438) $ 14,018 $ (2,438) Residential mortgage-backed and related securities — — 59,118 (5,972) 59,118 (5,972) Municipal securities 283 (2) 169,876 (35,588) 170,159 (35,590) Asset-backed securities — — 3,804 (5) 3,804 (5) Other securities 3,805 (393) 35,271 (3,781) 39,076 (4,174) $ 4,088 $ (395) $ 282,087 $ (47,784) $ 286,175 $ (48,179) |
Schedule of activity in allowance for credit losses for HTM and AFS securities by major security | Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Securities HTM Securities AFS Securities HTM Securities AFS Securities HTM Securities AFS Securities HTM Securities AFS Municipal Other Corporate Municipal Corporate Municipal Other Corporate Municipal Other securities securities Total securities securities securities securities Securities Total securities securities securities (dollars in thousands) Allowance for credit losses: Beginning balance $ 202 $ 1 $ 203 $ — $ 180 $ 989 $ 202 $ 1 $ 203 $ 989 $ 180 $ — Reduction due to sales — — — — — — — — — (544) — — Provision for credit loss expense — — — — — — — — — (445) — 989 Balance, ending $ 202 $ 1 $ 203 $ — $ 180 $ 989 $ 202 $ 1 $ 203 $ — $ 180 $ 989 |
Schedule of realized gain (loss) on investments | Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Proceeds from sales of securities $ — $ 1,940 $ 445 $ 30,568 Gross gains from sales of securities — 12 — 56 Gross losses from sales of securities — — — (507) |
Schedule of investments classified by maturity date | Amortized Cost Fair Value (dollars in thousands) Securities HTM: Due in one year or less $ 1,912 $ 1,893 Due after one year through five years 21,605 22,436 Due after five years 697,311 672,118 $ 720,828 $ 696,447 Securities AFS: Due in one year or less $ 6,298 $ 6,293 Due after one year through five years 19,044 17,849 Due after five years 243,430 198,641 268,772 222,783 Residential mortgage-backed and related securities 60,950 54,708 Asset-backed securities 12,516 12,721 $ 342,238 $ 290,212 |
Schedule of investment in callable securities | Amortized Cost Fair Value (dollars in thousands) Securities HTM: Municipal securities $ 249,059 $ 246,233 Securities AFS: Municipal securities 204,660 164,606 Other securities 39,757 36,444 $ 244,417 $ 201,050 |
Note 3 - LOANS_LEASES RECEIVA_2
Note 3 - LOANS/LEASES RECEIVABLE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Notes Tables | |
Composition of the loan/lease portfolio | June 30, 2024 December 31, 2023 (dollars in thousands) C&I: C&I - revolving $ 362,115 $ 325,243 C&I - other */** 1,463,198 1,481,778 1,825,313 1,807,021 CRE - owner occupied 633,596 607,365 CRE - non-owner occupied 1,082,457 1,008,892 Construction and land development** 1,082,348 1,420,525 Multi-family** 1,477,483 996,143 Direct financing leases*** 25,808 31,164 1-4 family real estate**** 583,542 544,971 Consumer 143,839 127,335 6,854,386 6,543,416 Allowance for credit losses (87,706) (87,200) $ 6,766,680 $ 6,456,216 *** Direct financing leases: Net minimum lease payments to be received $ 28,823 $ 34,966 Estimated unguaranteed residual values of leased assets 165 165 Unearned lease/residual income (3,180) (3,967) 25,808 31,164 Plus deferred lease origination costs, net of fees 39 75 25,847 31,239 Less allowance for credit losses (800) (992) $ 25,047 $ 30,247 * Includes equipment financing agreements outstanding at m2, totaling $338.1 million and $319.5 million as of June 30, 2024 and December 31, 2023, respectively. ** As of June 30, 2024, there were multi-family loans held for sale in preparation for securitization totaling $243.2 million. There were no loans held for sale in preparation for securitization at December 31, 2023. *** 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 $2.9 million and $2.6 million as of June 30, 2024 and December 31, 2023, respectively. |
Schedule of changes in remaining discounts on acquired loans | For the Three Months Ended For the Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Performing Performing Performing Performing Loans Loans Loans Loans (dollars in thousands) Balance at the beginning of the period $ (3,539) $ (5,239) $ (3,891) $ (6,088) Accretion recognized 268 135 620 984 Balance at the end of the period $ (3,271) $ (5,104) $ (3,271) $ (5,104) |
Aging of the loan/lease portfolio by classes of loans/leases | As of June 30, 2024 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 $ 361,717 $ — $ 398 $ — $ — $ 362,115 C&I - other 1,440,829 5,034 4,121 — 13,214 1,463,198 CRE - owner occupied 631,321 65 — — 2,210 633,596 CRE - non-owner occupied 1,077,874 123 — — 4,460 1,082,457 Construction and land development 1,065,387 13,953 649 — 2,359 1,082,348 Multi-family 1,468,961 350 — — 8,172 1,477,483 Direct financing leases 24,705 310 264 — 529 25,808 1-4 family real estate 580,831 359 78 87 2,187 583,542 Consumer 143,198 69 157 — 415 143,839 $ 6,794,823 $ 20,263 $ 5,667 $ 87 $ 33,546 $ 6,854,386 As a percentage of total loan/lease portfolio 99.13 % 0.30 % 0.08 % 0.00 % 0.49 % 100.00 % As of December 31, 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 $ 325,243 $ — $ — $ — $ — $ 325,243 C&I - other 1,459,818 4,848 5,603 1 11,508 1,481,778 CRE - owner occupied 604,602 — 83 — 2,680 607,365 CRE - non-owner occupied 1,003,267 631 — — 4,994 1,008,892 Construction and land development 1,418,016 — — — 2,509 1,420,525 Multi-family 987,971 — — — 8,172 996,143 Direct financing leases 30,501 186 188 — 289 31,164 1-4 family real estate 538,229 3,883 534 85 2,240 544,971 Consumer 126,868 103 3 — 361 127,335 $ 6,494,515 $ 9,651 $ 6,411 $ 86 $ 32,753 $ 6,543,416 As a percentage of total loan/lease portfolio 99.25 % 0.15 % 0.10 % 0.00 % 0.50 % 100.00 % |
NPLs by classes of loans/leases | As of June 30, 2024 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 — 10,923 2,291 13,214 39 CRE - owner occupied — 1,927 283 2,210 7 CRE - non-owner occupied — 1,784 2,676 4,460 13 Construction and land development — 2,359 — 2,359 7 Multi-family — — 8,172 8,172 24 Direct financing leases — 473 56 529 2 1-4 family real estate 87 1,817 370 2,274 7 Consumer — 415 — 415 1 $ 87 $ 19,698 $ 13,848 $ 33,633 100 % As of December 31, 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 1 8,865 2,643 11,509 35 CRE - owner occupied — 530 2,150 2,680 8 CRE - non-owner occupied — 1,213 3,781 4,994 15 Construction and land development — 2,509 — 2,509 8 Multi-family — — 8,172 8,172 25 Direct financing leases — 206 83 289 1 1-4 family real estate 85 1,866 374 2,325 7 Consumer — 361 — 361 1 $ 86 $ 15,550 $ 17,203 $ 32,839 100 % |
Allowance for credit losses on financing receivables | Changes in the ACL on loans/leases by portfolio segment for the three and six months ended June 30, 2024 and 2023, respectively, are presented as follows: Three Months Ended June 30, 2024 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 $ 4,440 $ 26,615 $ 8,416 $ 12,607 $ 12,737 $ 12,928 $ 5,289 $ 1,438 $ 84,470 Change in ACL for writedown of LHFS to fair value — — — — 513 (15) — — 498 Provision (741) 5,469 (363) (231) (1,196) 1,344 (66) 127 4,343 Charge-offs — (1,681) — — — — (21) (49) (1,751) Recoveries — 141 — — — — 1 4 146 Balance, ending $ 3,699 $ 30,544 $ 8,053 $ 12,376 $ 12,054 $ 14,257 $ 5,203 $ 1,520 $ 87,706 Six Months Ended June 30, 2024 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 $ 4,224 $ 27,460 $ 8,223 $ 11,581 $ 16,856 $ 12,463 $ 4,917 $ 1,476 $ 87,200 Change in ACL for writedown of LHFS to fair value — — — — — (2,879) — — (2,879) Provision (525) 7,696 (170) 795 (4,802) 4,673 309 103 8,079 Charge-offs — (5,219) — — — — (24) (68) (5,311) Recoveries — 607 — — — — 1 9 617 Balance, ending $ 3,699 $ 30,544 $ 8,053 $ 12,376 $ 12,054 $ 14,257 $ 5,203 $ 1,520 $ 87,706 * Included within the C&I – Other column are ACL on leases with a beginning balance of $884 thousand, negative provision of $106 thousand, no charge-offs and recoveries of $22 thousand. ACL on leases was $800 thousand as of June 30, 2024. ** Included within the C&I – Other column are ACL on leases with a beginning balance of $992 thousand, provision of $174 thousand, charge-offs of $89 thousand and recoveries of $71 thousand. ACL on leases was $800 thousand as of June 30, 2024. Three Months Ended June 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 $ 4,637 $ 26,637 $ 9,089 $ 12,632 $ 15,245 $ 11,621 $ 5,270 $ 1,442 $ 86,573 Change in ACL for writedown of LHFS to fair value — (5) — — 207 (2,479) — — (2,277) Provision (536) 2,318 (358) (664) 436 2,087 (57) 87 3,313 Charge-offs — (1,920) — — — — — (27) (1,947) Recoveries — 132 — — — — — 3 135 Balance, ending $ 4,101 $ 27,162 $ 8,731 $ 11,968 $ 15,888 $ 11,229 $ 5,213 $ 1,505 $ 85,797 Six Months Ended June 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) (3,834) — — (3,986) Provision (356) 2,875 (1,026) 214 1,785 1,877 245 157 5,771 Charge-offs — (3,975) (208) — (12) — — (27) (4,222) Recoveries — 514 — 5 — — 5 4 528 Balance, ending $ 4,101 $ 27,162 $ 8,731 $ 11,968 $ 15,888 $ 11,229 $ 5,213 $ 1,505 $ 85,797 * Included within the C&I – Other column are ACL on leases with a beginning balance of $1.1 million, negative provision of $10 thousand, charge-offs of $49 thousand and recoveries of $12 thousand. ACL on leases was $1.0 million as of June 30, 2023. ** Included within the C& I – Other column are ACL on leases with a beginning balance of $970 thousand, provision of $59 thousand, charge-offs of $53 thousand and recoveries of $30 thousand. ACL on leases was $1.0 million as of June 30, 2023. The composition of the ACL on loans/leases by portfolio segment based on evaluation method are as follows: As of June 30, 2024 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 $ 3,875 $ 358,240 $ 362,115 $ 10 $ 3,689 $ 3,699 C&I - other* 25,648 1,463,358 1,489,006 6,398 24,146 30,544 29,523 1,821,598 1,851,121 6,408 27,835 34,243 CRE - owner occupied 27,495 606,101 633,596 2,371 5,682 8,053 CRE - non-owner occupied 21,751 1,060,706 1,082,457 1,075 11,301 12,376 Construction and land development 6,758 1,075,590 1,082,348 790 11,264 12,054 Multi-family 8,201 1,469,282 1,477,483 4 14,253 14,257 1-4 family real estate 3,039 580,503 583,542 280 4,923 5,203 Consumer 547 143,292 143,839 67 1,453 1,520 $ 97,314 $ 6,757,072 $ 6,854,386 $ 10,995 $ 76,711 $ 87,706 * Included within the C&I – Other category are leases individually evaluated of $529 thousand with a related allowance for credit losses of $171 thousand and leases collectively evaluated of $25.3 million with a related allowance for credit losses of $629 thousand as of June 30, 2024. As of December 31, 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 $ 4,680 $ 320,563 $ 325,243 $ 632 $ 3,592 $ 4,224 C&I - other* 20,133 1,492,809 1,512,942 3,642 23,818 27,460 24,813 1,813,372 1,838,185 4,274 27,410 31,684 CRE - owner occupied 22,709 584,656 607,365 2,426 5,797 8,223 CRE - non-owner occupied 21,886 987,006 1,008,892 661 10,920 11,581 Construction and land development 2,726 1,417,799 1,420,525 809 16,047 16,856 Multi-family 8,206 987,937 996,143 3 12,460 12,463 1-4 family real estate 3,128 541,843 544,971 289 4,628 4,917 Consumer 508 126,827 127,335 56 1,420 1,476 $ 83,976 $ 6,459,440 $ 6,543,416 $ 8,518 $ 78,682 $ 87,200 * Included within the C&I – Other category are leases individually evaluated of $289 thousand with a related allowance for credit losses of $68 thousand and leases collectively evaluated of $30.9 million with a related allowance for credit losses of $924 thousand as of December 31, 2023. |
Schedule of loans receivable by collateral type | As of June 30, 2024 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 $ 3,875 $ — $ — $ — $ — $ — $ — $ 3,875 C&I - other* 5,919 — — — 5,177 12,176 2,376 25,648 9,794 — — — 5,177 12,176 2,376 29,523 CRE - owner occupied — 27,432 — 63 — — — 27,495 CRE - non-owner occupied — — 21,751 — — — — 21,751 Construction and land development — — 6,758 — — — — 6,758 Multi-family — — 8,201 — — — — 8,201 1-4 family real estate — — 185 2,854 — — — 3,039 Consumer — — 119 410 — — 18 547 $ 9,794 $ 27,432 $ 37,014 $ 3,327 $ 5,177 $ 12,176 $ 2,394 $ 97,314 * Included within the C&I – Other category are leases individually evaluated of $529 thousand with primary collateral of equipment as of June 30, 2024. As of December 31, 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 $ 4,680 $ — $ — $ — $ — $ — $ — $ 4,680 C&I - other* 871 — — — 5,191 13,249 822 20,133 5,551 — — — 5,191 13,249 822 24,813 CRE - owner occupied — 22,644 — 65 — — — 22,709 CRE - non-owner occupied — — 21,886 — — — — 21,886 Construction and land development — 150 2,576 — — — — 2,726 Multi-family — — 8,206 — — — — 8,206 1-4 family real estate — — 189 2,939 — — — 3,128 Consumer — — 119 365 — — 24 508 $ 5,551 $ 22,794 $ 32,976 $ 3,369 $ 5,191 $ 13,249 $ 846 $ 83,976 * Included within the C&I – Other category are leases individually evaluated of $289 thousand with primary collateral of equipment as of December 31, 2023. |
Schedule of financing receivable credit quality indicators based on internally assigned Risk rating | As of June 30, 2024 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Internally Assigned Amortized Risk Rating 2024 2023 2022 2021 2020 Prior Cost Basis Total (dollars in thousands) C&I - revolving Pass $ 42,413 $ 28,875 $ 500 $ — $ 11 $ — $ 262,354 $ 334,153 Special Mention — 80 1,115 — — — 22,892 24,087 Substandard 2,749 — — — — — 1,126 3,875 Doubtful — — — — — — — — Total C&I - revolving $ 45,162 $ 28,955 $ 1,615 $ — $ 11 $ — $ 286,372 $ 362,115 C&I - other Pass $ 177,001 $ 313,812 $ 253,330 $ 88,465 $ 55,368 $ 161,254 $ 37,192 $ 1,086,422 Special Mention 5,892 5,914 3,624 4,859 2,950 1,117 357 24,713 Substandard 2,345 13 5,124 278 175 5,661 377 13,973 Doubtful — — — — — — — — Total C&I - other $ 185,238 $ 319,739 $ 262,078 $ 93,602 $ 58,493 $ 168,032 $ 37,926 $ 1,125,108 CRE - owner occupied Pass $ 36,647 $ 101,075 $ 118,873 $ 125,020 $ 99,720 $ 81,650 $ 27,004 $ 589,989 Special Mention 3,774 73 — 10,182 4,299 1,782 1,211 21,321 Substandard 2,172 292 534 328 16,769 2,191 — 22,286 Doubtful — — — — — — — — Total CRE - owner occupied $ 42,593 $ 101,440 $ 119,407 $ 135,530 $ 120,788 $ 85,623 $ 28,215 $ 633,596 CRE - non-owner occupied Pass $ 63,524 $ 206,697 $ 315,786 $ 169,580 $ 119,775 $ 136,806 $ 36,921 $ 1,049,089 Special Mention 4,354 158 57 — — 6,898 150 11,617 Substandard — 4,335 1,200 — 1,953 14,263 — 21,751 Doubtful — — — — — — — — Total CRE - non-owner occupied $ 67,878 $ 211,190 $ 317,043 $ 169,580 $ 121,728 $ 157,967 $ 37,071 $ 1,082,457 Construction and land development Pass $ 219,952 $ 446,423 $ 261,550 $ 101,730 $ 14,207 $ 70 $ 28,518 $ 1,072,450 Special Mention — 649 — — — — 2,491 3,140 Substandard 4,188 — 1,367 1,203 — — — 6,758 Doubtful — — — — — — — — Total Construction and land development $ 224,140 $ 447,072 $ 262,917 $ 102,933 $ 14,207 $ 70 $ 31,009 $ 1,082,348 Multi-family Pass $ 100,632 $ 203,713 $ 335,693 $ 279,294 $ 350,772 $ 185,529 $ 13,649 $ 1,469,282 Special Mention — — — — — — — — Substandard — — — 8,201 — — — 8,201 Doubtful — — — — — — — — Total Multi-family $ 100,632 $ 203,713 $ 335,693 $ 287,495 $ 350,772 $ 185,529 $ 13,649 $ 1,477,483 1-4 family real estate Pass $ 67,157 $ 129,189 $ 95,117 $ 116,564 $ 83,206 $ 72,864 $ 16,347 $ 580,444 Special Mention — — — 57 — 9 78 144 Substandard — 279 772 613 234 940 116 2,954 Doubtful — — — — — — — — Total 1-4 family real estate $ 67,157 $ 129,468 $ 95,889 $ 117,234 $ 83,440 $ 73,813 $ 16,541 $ 583,542 Consumer Pass $ 8,469 $ 20,330 $ 7,694 $ 1,924 $ 2,647 $ 2,081 $ 100,073 $ 143,218 Special Mention — — — — — — 74 74 Substandard — 174 160 33 — 115 65 547 Doubtful — — — — — — — — Total Consumer $ 8,469 $ 20,504 $ 7,854 $ 1,957 $ 2,647 $ 2,196 $ 100,212 $ 143,839 Total $ 741,269 $ 1,462,081 $ 1,402,496 $ 908,331 $ 752,086 $ 673,230 $ 550,995 $ 6,490,488 As of December 31, 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 $ — $ — $ — $ — $ — $ — $ 294,449 $ 294,449 Special Mention — — — — — — 26,289 26,289 Substandard — — — — — — 4,505 4,505 Doubtful — — — — — — — — Total C&I - revolving $ — $ — $ — $ — $ — $ — $ 325,243 $ 325,243 C&I - other Pass $ 430,764 $ 301,225 $ 128,057 $ 68,882 $ 62,149 $ 132,171 $ — $ 1,123,248 Special Mention 11,617 8,777 5,572 3,088 1,024 386 — 30,464 Substandard 14 81 625 443 2,108 5,320 — 8,591 Doubtful — — — — — — — — Total C&I - other $ 442,395 $ 310,083 $ 134,254 $ 72,413 $ 65,281 $ 137,877 $ — $ 1,162,303 CRE - owner occupied Pass $ 90,708 $ 124,388 $ 139,598 $ 109,483 $ 28,702 $ 58,214 $ 12,959 $ 564,052 Special Mention 5,091 711 8,689 5,567 466 1,828 — 22,352 Substandard 1,955 564 24 15,978 1,312 1,128 — 20,961 Doubtful — — — — — — — — Total CRE - owner occupied $ 97,754 $ 125,663 $ 148,311 $ 131,028 $ 30,480 $ 61,170 $ 12,959 $ 607,365 CRE - non-owner occupied Pass $ 200,214 $ 276,055 $ 195,013 $ 119,428 $ 72,136 $ 78,346 $ 7,406 $ 948,598 Special Mention 16,842 58 223 12,057 2,359 6,719 150 38,408 Substandard 3,805 1,200 — 1,989 14,892 — — 21,886 Doubtful — — — — — — — — Total CRE - non-owner occupied $ 220,861 $ 277,313 $ 195,236 $ 133,474 $ 89,387 $ 85,065 $ 7,556 $ 1,008,892 Construction and land development Pass $ 467,045 $ 485,376 $ 271,881 $ 151,091 $ 1,911 $ 4,137 $ 30,304 $ 1,411,745 Special Mention 6,054 — — — — — — 6,054 Substandard — 1,517 1,209 — — — — 2,726 Doubtful — — — — — — — — Total Construction and land development $ 473,099 $ 486,893 $ 273,090 $ 151,091 $ 1,911 $ 4,137 $ 30,304 $ 1,420,525 Multi-family Pass $ 180,971 $ 195,939 $ 170,893 $ 239,410 $ 102,070 $ 96,897 $ 162 $ 986,342 Special Mention 1,595 — — — — — — 1,595 Substandard — — 8,206 — — — — 8,206 Doubtful — — — — — — — — Total Multi-family $ 182,566 $ 195,939 $ 179,099 $ 239,410 $ 102,070 $ 96,897 $ 162 $ 996,143 1-4 family real estate Pass $ 133,923 $ 103,460 $ 130,724 $ 89,642 $ 25,914 $ 54,850 $ 3,329 $ 541,842 Special Mention 28 — 59 — — — — 87 Substandard 144 215 815 637 519 712 — 3,042 Doubtful — — — — — — — — Total 1-4 family real estate $ 134,095 $ 103,675 $ 131,598 $ 90,279 $ 26,433 $ 55,562 $ 3,329 $ 544,971 Consumer Pass $ 17,722 $ 9,405 $ 2,573 $ 3,024 $ 622 $ 1,842 $ 91,580 $ 126,768 Special Mention — — — — — — 59 59 Substandard 175 119 12 12 — 133 57 508 Doubtful — — — — — — — — Total Consumer $ 17,897 $ 9,524 $ 2,585 $ 3,036 $ 622 $ 1,975 $ 91,696 $ 127,335 Total $ 1,568,667 $ 1,509,090 $ 1,064,173 $ 820,731 $ 316,184 $ 442,683 $ 471,249 $ 6,192,777 |
Schedule of financing receivable credit quality indicators based on delinquency status | As of June 30, 2024 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Delinquency Status * 2024 2023 2022 2021 2020 Prior Cost Basis Total (dollars in thousands) C&I - other Performing $ 89,027 $ 120,871 $ 80,150 $ 27,989 $ 7,982 $ 971 $ — $ 326,990 Nonperforming — 3,056 5,099 2,640 280 25 — 11,100 Total C&I - other $ 89,027 $ 123,927 $ 85,249 $ 30,629 $ 8,262 $ 996 $ — $ 338,090 Direct financing leases Performing $ 1,102 $ 11,281 $ 8,690 $ 1,980 $ 1,259 $ 967 $ — $ 25,279 Nonperforming — 78 284 38 121 8 — 529 Total Direct financing leases $ 1,102 $ 11,359 $ 8,974 $ 2,018 $ 1,380 $ 975 $ — $ 25,808 Total $ 90,129 $ 135,286 $ 94,223 $ 32,647 $ 9,642 $ 1,971 $ — $ 363,898 * 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, 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 $ 149,216 $ 103,804 $ 40,003 $ 12,590 $ 2,539 $ 132 $ — $ 308,284 Nonperforming 1,533 6,138 3,049 373 92 6 — 11,191 Total C&I - other $ 150,749 $ 109,942 $ 43,052 $ 12,963 $ 2,631 $ 138 $ — $ 319,475 Direct financing leases Performing $ 12,217 $ 11,170 $ 3,005 $ 2,631 $ 1,561 $ 291 $ — $ 30,875 Nonperforming — 50 43 176 20 — — 289 Total Direct financing leases $ 12,217 $ 11,220 $ 3,048 $ 2,807 $ 1,581 $ 291 $ — $ 31,164 Total $ 162,966 $ 121,162 $ 46,100 $ 15,770 $ 4,212 $ 429 $ — $ 350,639 * 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 June 30, 2024 Six Months Ended June 30, 2024 Gross Charge-off by Origination Year Gross Charge-off by Origination Year Classes of Loans/Leases 2024 2023 2022 2021 2020 Prior Total 2024 2023 2022 2021 2020 Prior Total (dollars in thousands) (dollars in thousands) C&I: C&I - revolving $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — C&I - other — 206 826 570 79 — 1,681 7 884 2,859 1,092 112 176 5,130 CRE - owner occupied — — — — — — — — — — — — — — CRE - non-owner occupied — — — — — — — — — — — — — — Construction and land development — — — — — — — — — — — — — — Multi-family — — — — — — — — — — — — — — Direct financing leases — — — — — — — — — 10 24 42 13 89 1-4 family real estate — 21 — — — — 21 — 21 — — — 3 24 Consumer — 1 22 11 15 — 49 — 1 41 11 15 — 68 $ — $ 228 $ 848 $ 581 $ 94 $ — $ 1,751 $ 7 $ 906 $ 2,910 $ 1,127 $ 169 $ 192 $ 5,311 |
Unfunded Loan Commitment | |
Notes Tables | |
Financing receivable credit quality indicators | Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 (dollars in thousands) Balance, beginning $ 9,207 $ 6,033 $ 9,529 $ 5,552 Provisions to expense 1,153 293 831 774 Balance, ending $ 10,360 $ 6,326 $ 10,360 $ 6,326 |
Note 5 - DERIVATIVES AND HEDG_2
Note 5 - DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
DERIVATIVES AND HEDGING ACTIVITIES | |
Summary of derivatives | June 30, 2024 December 31, 2023 (dollars in thousands) Assets: Hedged Derivatives Cash Flow Hedges Interest rate caps $ 1,783 $ 2,847 Interest rate swaps 2,680 1,689 Fair Value Hedges Interest rate swaps 1,881 — Unhedged Derivatives Interest rate caps 586 951 Interest rate swaps 187,424 181,854 $ 194,354 $ 187,341 Liabilities: Hedged Derivatives Cash Flow Hedges Interest rate swaps (33,906) (30,407) Interest rate collars (468) (166) Fair Value Hedges Interest rate swaps — (3,308) Unhedged Derivatives Interest rate swaps (187,424) (181,854) $ (221,798) $ (215,735) |
Summary of impact of AOCI | Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Interest and Interest Interest and Interest Dividend Income Expense Dividend Income Expense (dollars in thousands) Income and expense line items presented in the consolidated statements of income $ 119,746 $ 63,583 $ 98,377 $ 45,172 The effects of cash flow hedging: Gain (loss) on interest rate caps on deposits - (1,039) - (1,875) Gain (loss) on interest rate swaps on junior subordinated debentures - (337) - (275) Gain (loss) on interest rate swaps and collars on loans (2,987) - (2,207) - The effects of fair value hedging: Gain on interest rate swaps on loans 985 - - - Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 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 $ 234,795 $ 123,933 $ 192,594 $ 82,579 The effects of cash flow hedging: Gain (loss) on interest rate caps on deposits - (2,155) - (3,456) Gain (loss) on interest rate swaps on junior subordinated debentures - (673) - (502) Gain (loss) on interest rate swaps and collars on loans (5,961) - (4,262) - The effects of fair value hedging: Gain on interest rate swaps on loans 1,962 - - - |
Schedule of hedged interest rate swaps and non-hedged interest rate swaps are collateralized by investment securities with carrying values | June 30, 2024 December 31, 2023 (dollars in thousands) Cash $ 34,960 $ 51,680 U.S govt. sponsored agency securities 6,262 6,413 Municipal securities 63,824 68,651 Residential mortgage-backed and related securities 21,268 23,358 $ 126,314 $ 150,102 |
Interest rate caps | |
DERIVATIVES AND HEDGING ACTIVITIES | |
Schedule of interest rate caps | Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Strike Rate June 30, 2024 December 31, 2023 (dollars in thousands) Deposits 1/1/2020 1/1/2024 Derivatives - Assets $ 25,000 1.75 % $ - $ (79) Deposits 1/1/2020 1/1/2024 Derivatives - Assets 50,000 1.57 % - - Deposits 1/1/2020 1/1/2024 Derivatives - Assets 25,000 1.80 % - - Deposits 1/1/2020 1/1/2025 Derivatives - Assets 25,000 1.75 % 443 672 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 50,000 1.57 % 893 1,503 Deposits 1/1/2020 1/1/2025 Derivatives - Assets 25,000 1.80 % 447 751 $ 200,000 $ 1,783 $ 2,847 |
Changes in the fair value of the underlying derivative contracts | Balance Sheet Fair Value as of Effective Date Maturity Date Location Notional Amount Strike Rate June 30, 2024 December 31, 2023 (dollars in thousands) 2/1/2020 2/1/2024 Derivatives - Assets $ 25,000 1.90 % $ - $ 79 3/1/2020 3/3/2025 Derivatives - Assets 25,000 1.90 % 586 872 $ 50,000 $ 586 $ 951 |
Interest rate swaps | |
DERIVATIVES AND HEDGING ACTIVITIES | |
Schedule of interest rate caps | Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Receive Rate Pay Rate June 30, 2024 December 31, 2023 (dollars in thousands) QCR Holdings Statutory Trust V 7/7/2018 7/7/2028 Derivatives - Assets $ 10,000 7.14 % 4.54 % $ 509 $ 335 Community National Statutory Trust III 9/15/2018 9/15/2028 Derivatives - Assets 3,500 7.34 % 4.75 % 182 118 Guaranty Bankshares Statutory Trust I 9/15/2018 9/15/2028 Derivatives - Assets 4,500 7.34 % 4.75 % 234 152 Community National Statutory Trust II 9/20/2018 9/20/2028 Derivatives - Assets 3,000 7.76 % 5.17 % 156 101 QCR Holdings Statutory Trust II 9/30/2018 9/30/2028 Derivatives - Assets 10,000 8.44 % 5.85 % 522 341 QCR Holdings Statutory Trust III 9/30/2018 9/30/2028 Derivatives - Assets 8,000 8.44 % 5.85 % 418 272 Guaranty Statutory Trust II* 5/23/2019 2/23/2026 Derivatives - Assets 10,310 7.03 % 4.09 % 407 370 QCR Holdings Subordinated Note 3/1/2024 2/15/2028 Derivatives - Assets 65,000 5.34 % 4.02 % 252 - $ 114,310 $ 2,680 $ 1,689 * Acquired on April 1, 2022 with GFED acquisition. Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Receive Rate Pay Rate June 30, 2024 December 31, 2023 (dollars in thousands) Loans 7/1/2021 7/1/2031 Derivatives - Liabilities $ 35,000 1.40 % 5.45 % $ (5,623) $ (5,004) Loans 7/1/2021 7/1/2031 Derivatives - Liabilities 50,000 1.40 % 5.45 % (8,033) (7,149) Loans 7/1/2021 7/1/2031 Derivatives - Liabilities 40,000 1.40 % 5.45 % (6,436) (5,730) Loans 10/1/2022 7/1/2031 Derivatives - Liabilities 25,000 1.30 % 5.45 % (4,047) (3,696) Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 15,000 1.91 % 5.45 % (977) (868) Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 50,000 1.91 % 5.45 % (3,256) (2,892) Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 35,000 1.91 % 5.45 % (2,279) (2,024) Loans 4/1/2022 4/1/2027 Derivatives - Liabilities 50,000 1.91 % 5.45 % (3,255) (3,044) $ 300,000 $ (33,906) $ (30,407) Balance Sheet Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Receive Rate Pay Rate June 30, 2024 December 31, 2023 (dollars in thousands) Loans 7/12/2023 8/1/2025 Derivatives - Assets 15,000 5.33 % 4.60 % 46 (69) Loans 7/12/2023 2/1/2026 Derivatives - Assets $ 25,000 5.33 % 4.38 % $ 104 $ (195) Loans 7/12/2023 2/1/2026 Derivatives - Assets 15,000 5.33 % 4.38 % 62 (117) Loans 7/12/2023 2/1/2026 Derivatives - Assets 20,000 5.33 % 4.38 % 83 (140) Loans 7/12/2023 8/1/2026 Derivatives - Assets 30,000 5.33 % 4.21 % 151 (293) Loans 7/12/2023 8/1/2026 Derivatives - Assets 15,000 5.33 % 4.21 % 76 (146) Loans 7/12/2023 8/1/2026 Derivatives - Assets 20,000 5.33 % 4.21 % 101 (176) Loans 7/12/2023 2/1/2027 Derivatives - Assets 32,500 5.33 % 4.08 % 194 (364) Loans 7/12/2023 2/1/2027 Derivatives - Assets 15,000 5.33 % 4.08 % 90 (168) Loans 7/12/2023 2/1/2027 Derivatives - Assets 20,000 5.33 % 4.08 % 119 (202) Loans 7/12/2023 8/1/2027 Derivatives - Assets 32,500 5.33 % 3.98 % 225 (397) Loans 7/12/2023 8/1/2027 Derivatives - Assets 15,000 5.33 % 3.98 % 104 (183) Loans 7/12/2023 8/1/2027 Derivatives - Assets 25,000 5.33 % 3.98 % 172 (276) Loans 7/12/2023 2/1/2028 Derivatives - Assets 30,000 5.33 % 3.90 % 236 (388) Loans 7/12/2023 2/1/2028 Derivatives - Assets 15,000 5.33 % 3.90 % 118 (194) $ 325,000 $ 1,881 $ (3,308) |
Changes in the fair value of the underlying derivative contracts | June 30, 2024 December 31, 2023 Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value (dollars in thousands) Non-Hedging Interest Rate Derivatives Assets: Interest rate swap contracts $ 3,731,140 $ 187,424 $ 3,308,024 $ 181,854 Non-Hedging Interest Rate Derivatives Liabilities: Interest rate swap contracts $ 3,731,140 $ 187,424 $ 3,308,024 $ 181,854 |
Interest rate collars | |
DERIVATIVES AND HEDGING ACTIVITIES | |
Schedule of interest rate caps | Fair Value as of Hedged Item Effective Date Maturity Date Location Notional Amount Cap Strike Rate Floor Strike Rate June 30, 2024 December 31, 2023 Loans 10/1/2022 10/1/2026 Derivatives - Liabilities $ 50,000 4.40 % 2.44 % $ (468) $ (166) |
Note 6 - INCOME TAXES (Tables)
Note 6 - INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
INCOME TAXES | |
Schedule of Federal and state income tax expense | For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 % of % of % of % of Pretax Pretax Pretax Pretax Amount Income Amount Income Amount Income Amount Income (dollars in thousands) Computed "expected" tax expense $ 6,650 21.0 % $ 6,802 21.0 % $ 12,509 21.0 % $ 13,090 21.0 % Tax exempt income, net (3,986) (12.6) (3,182) (9.8) (7,761) (13.0) (6,398) (10.3) Bank-owned life insurance (622) (2.0) (176) (0.5) (804) (1.3) (324) (0.5) State income taxes, net of federal benefit, current year 1,088 3.4 1,239 3.8 2,102 3.5 2,428 3.9 Tax credits 35 0.1 (32) (0.1) (51) (0.1) (209) (0.3) Income from tax credit equity investments (497) (1.6) (478) (1.5) (1,093) (1.8) (891) (1.4) Excess tax benefit on stock options exercised and restricted stock awards vested (54) (0.1) (46) (0.1) (524) (0.9) (444) (0.7) Other (60) (0.1) (160) (0.6) (652) (1.1) (503) (0.9) Federal and state income tax expense $ 2,554 8.1 % $ 3,967 12.2 % $ 3,726 6.3 % $ 6,749 10.8 % |
Schedule of Consolidated statements of operations | For the Three Months Ended For the Six Months Ended June 30, 2024 March 31, 2024 June 30, 2023 June 30, 2024 June 30, 2023 (dollars in thousands) (dollars in thousands) Tax credits recognized $ 2,115 $ 2,204 $ 1,784 $ 4,319 $ 2,905 Other tax benefits recognized 613 729 514 1,342 1,022 Amortization (2,092) (2,061) (1,616) (4,153) (2,581) Net benefit included in income tax 636 872 682 1,508 1,346 Other income — — — — — Allocated income on investments — — — — — Net benefit included in noninterest income — — — — — Net benefit included in the Consolidated Statements of Operations $ 636 $ 872 $ 682 $ 1,508 $ 1,346 |
Note 7 - EARNINGS PER SHARE (Ta
Note 7 - EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
EARNINGS PER SHARE | |
Schedule of computation of earnings per share on a basic and diluted basis | Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 (dollars in thousands, except share data) Net income $ 29,114 $ 28,425 $ 55,840 $ 55,582 Basic EPS $ 1.73 $ 1.70 $ 3.32 $ 3.32 Diluted EPS $ 1.72 $ 1.69 $ 3.30 $ 3.29 Weighted average common shares outstanding 16,814,814 16,701,950 16,799,081 16,739,120 Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan 107,040 97,577 117,183 131,710 Weighted average common and common equivalent shares outstanding 16,921,854 16,799,527 16,916,264 16,870,830 |
Note 8 - FAIR VALUE (Tables)
Note 8 - FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Notes Tables | |
Schedule of assets measured at fair value | Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (dollars in thousands) June 30, 2024: Securities AFS: U.S. treasuries and govt. sponsored agency securities $ 20,101 $ — $ 20,101 $ — Residential mortgage-backed and related securities 54,708 — 54,708 — Municipal securities 165,268 — 165,268 — Asset-backed securities 12,721 — 12,721 — Other securities 37,414 — 37,414 — Securities trading 22,362 — — 22,362 Derivatives 194,354 — 194,354 — Total assets measured at fair value $ 506,928 $ — $ 484,566 $ 22,362 Derivatives $ 221,798 $ — $ 221,798 $ — Total liabilities measured at fair value $ 221,798 $ — $ 221,798 $ — December 31, 2023: Securities AFS: U.S. govt. sponsored agency securities $ 14,973 $ — $ 14,973 $ — Residential mortgage-backed and related securities 59,196 — 59,196 — Municipal securities 170,987 — 170,987 — Asset-backed securities 15,423 — 15,423 — Other securities 39,076 — 39,076 — Securities trading 22,369 — — 22,369 Derivatives 187,341 — 187,341 — Total assets measured at fair value $ 509,365 $ — $ 486,996 $ 22,369 Derivatives $ 215,735 $ — $ 215,735 $ — Total liabilities measured at fair value $ 215,735 $ — $ 215,735 $ — Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Fair Value Level 1 Level 2 Level 3 (dollars in thousands) June 30, 2024: Loans/leases evaluated individually $ 33,910 $ — $ — $ 33,910 Loans receivable held for sale in preparation for securitization 243,193 — — 243,193 OREO 399 — — 399 Other repossessed assets 576 — — 576 $ 278,078 $ — $ — $ 278,078 December 31, 2023: Loans/leases evaluated individually $ 33,656 $ — $ — $ 33,656 OREO 1,455 — — 1,455 $ 35,111 $ — $ — $ 35,111 |
Schedule of assets measured at fair value, valuation techniques | Quantitative Information about Level Fair Value Measurements Fair Value Fair Value June 30, December 31, 2024 2023 Valuation Technique Unobservable Input Range (dollars in thousands) Loans/leases evaluated individually $ 33,910 $ 33,656 Appraisal of collateral Appraisal adjustments -10.00 % to -30.00 % Loans receivable held for sale in preparation for securitization 243,193 — Market prices for similar loans Market price adjustments n/a OREO 399 1,455 Appraisal of collateral Appraisal adjustments 0.00 % to -35.00 % Other repossessed assets 576 — Average auction prices Market price adjustments n/a |
Schedule of assets and liabilities measured at fair value | Fair Value As of June 30, 2024 As of December 31, 2023 Hierarchy Carrying Estimated Carrying Estimated Level Value Fair Value Value Fair Value (dollars in thousands) Cash and due from banks Level 1 $ 92,173 $ 92,173 $ 97,123 $ 97,123 Federal funds sold Level 2 8,150 8,150 35,450 35,450 Interest-bearing deposits at financial institutions Level 2 94,112 94,112 104,919 104,919 Investment securities: HTM Level 2 720,625 696,447 683,504 680,279 AFS Level 2 290,212 290,212 299,655 299,655 Trading Level 3 22,362 22,362 22,369 22,369 Loans/leases receivable, net Level 3 31,398 33,910 31,163 33,656 Loans/leases receivable, net Level 2 6,735,282 6,468,550 6,425,053 6,125,433 Derivatives Level 2 194,354 194,354 187,341 187,341 Deposits: Nonmaturity deposits Level 2 5,688,913 5,688,913 5,504,323 5,504,323 Time deposits Level 2 1,075,754 1,071,579 1,009,682 996,746 Short-term borrowings Level 2 1,600 1,600 1,500 1,500 FHLB advances Level 2 485,000 485,231 435,000 437,178 Subordinated notes Level 2 233,276 239,136 233,064 240,235 Junior subordinated debentures Level 2 48,795 40,718 48,731 40,397 Derivatives Level 2 221,798 221,798 215,735 215,735 |
Note 9 - BUSINESS SEGMENT INF_2
Note 9 - BUSINESS SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Notes Tables | |
Schedule of business segment information | Commercial Banking Intercompany Consolidated QCBT CRBT CSB GB All other Eliminations Total (dollars in thousands) Three Months Ended June 30, 2024 Total revenue $ 41,866 $ 50,167 $ 21,480 $ 37,924 $ 37,295 $ (38,097) $ 150,635 Net interest income 17,725 17,100 11,284 13,862 (4,174) 366 56,163 Provision for credit losses 3,228 2,028 47 193 — — 5,496 Net income (loss) from continuing operations 5,557 17,736 4,627 8,266 29,667 (36,739) 29,114 Goodwill 3,223 14,980 9,888 110,936 — — 139,027 Intangibles — 755 1,148 10,538 — — 12,441 Total assets 2,559,049 2,428,266 1,531,109 2,369,754 1,263,250 (1,279,437) 8,871,991 Three Months Ended June 30, 2023 Total revenue $ 35,375 $ 51,303 $ 17,333 $ 28,324 $ 34,925 $ (36,363) $ 130,897 Net interest income 16,403 16,223 10,657 13,601 (3,989) 310 53,205 Provision for credit losses 3,620 480 198 (692) — — 3,606 Net income (loss) from continuing operations 4,816 19,353 4,613 5,156 28,945 (34,458) 28,425 Goodwill 3,223 14,980 9,888 110,936 — — 139,027 Intangibles — 991 1,729 12,508 — — 15,228 Total assets 2,611,832 2,389,623 1,332,966 2,179,844 1,143,683 (1,431,275) 8,226,673 Six Months Ended June 30, 2024 Total revenue $ 82,248 $ 98,142 $ 41,989 $ 71,549 $ 70,964 $ (72,350) $ 292,542 Net interest income 34,688 34,008 22,359 27,376 (8,283) 714 110,862 Provision for credit losses 6,453 1,794 233 (15) — — 8,465 Net income (loss) from continuing operations 10,460 35,779 9,076 13,272 56,990 (69,737) 55,840 Goodwill 3,223 14,980 9,888 110,936 — — 139,027 Intangibles — 755 1,148 10,538 — — 12,441 Total assets 2,559,049 2,428,266 1,531,109 2,369,754 1,263,250 (1,279,437) 8,871,991 Six Months Ended June 30, 2023 Total revenue $ 68,499 $ 94,426 $ 33,901 $ 55,945 $ 69,594 $ (71,409) $ 250,956 Net interest income 33,391 33,402 21,547 28,973 (7,952) 654 110,015 Provision for credit losses 5,193 1,996 690 (345) — — 7,534 Net income (loss) from continuing operations 11,854 35,753 9,373 10,543 56,625 (68,566) 55,582 Goodwill 3,223 14,980 9,888 110,936 — — 139,027 Intangibles — 991 1,729 12,508 — — 15,228 Total assets 2,611,832 2,389,623 1,332,966 2,179,844 1,143,683 (1,431,275) 8,226,673 |
Note 10 - REGULATORY CAPITAL _2
Note 10 - REGULATORY CAPITAL REQUIREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Notes Tables | |
Schedule of the company and the subsidiary banks actual capital amounts and ratios | For Capital Adequacy To Be Well Capitalized For Capital Purposes With Capital Under Prompt Corrective Actual Adequacy Purposes Conservation Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio ( dollars in thousands) As of June 30, 2024: Company: Total risk-based capital $ 1,215,780 14.21 % $ 684,345 > 8.00 % $ 855,431 > 10.50 % $ 898,203 > 10.00 % Tier 1 risk-based capital 897,236 10.49 513,259 > 6.00 684,345 > 8.50 727,116 > 8.00 Tier 1 leverage 897,236 10.40 345,057 > 4.00 431,321 > 4.00 345,057 > 5.00 Common equity Tier 1 848,441 9.92 384,944 > 4.50 556,030 > 7.00 598,802 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 311,392 12.91 % $ 192,968 > 8.00 % $ 241,210 > 10.50 % $ 253,271 > 10.00 % Tier 1 risk-based capital 281,205 11.66 144,726 > 6.00 192,968 > 8.50 205,029 > 8.00 Tier 1 leverage 281,205 11.11 101,245 > 4.00 126,557 > 4.00 101,245 > 5.00 Common equity Tier 1 281,205 11.66 108,545 > 4.50 156,787 > 7.00 168,847 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 417,981 15.87 % $ 210,700 > 8.00 % $ 263,375 > 10.50 % $ 276,544 > 10.00 % Tier 1 risk-based capital 390,482 14.83 158,025 > 6.00 210,700 > 8.50 223,869 > 8.00 Tier 1 leverage 390,482 16.22 96,312 > 4.00 120,390 > 4.00 96,312 > 5.00 Common equity Tier 1 390,482 14.83 118,519 > 4.50 171,194 > 7.00 184,362 > 6.50 Community State Bank: Total risk-based capital $ 179,959 12.61 % $ 114,161 > 8.00 % $ 142,701 > 10.50 % $ 149,836 > 10.00 % Tier 1 risk-based capital 165,686 11.61 85,621 > 6.00 114,161 > 8.50 121,296 > 8.00 Tier 1 leverage 165,686 11.30 58,666 > 4.00 73,332 > 4.00 58,666 > 5.00 Common equity Tier 1 165,686 11.61 64,216 > 4.50 92,756 > 7.00 99,891 > 6.50 Guaranty Bank: Total risk-based capital $ 282,164 13.26 % $ 170,291 > 8.00 % $ 212,864 > 10.50 % $ 223,508 > 10.00 % Tier 1 risk-based capital 258,749 12.16 127,719 > 6.00 170,291 > 8.50 180,935 > 8.00 Tier 1 leverage 258,749 11.54 89,674 > 4.00 112,092 > 4.00 89,674 > 5.00 Common equity Tier 1 258,749 12.16 95,789 > 4.50 138,362 > 7.00 149,005 > 6.50 For Capital Adequacy To Be Well Capitalized For Capital Purposes With Capital Under Prompt Corrective Actual Adequacy Purposes Conservation Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio ( dollars in thousands) As of December 31, 2023: Company: Total risk-based capital $ 1,171,047 14.29 % $ 655,461 > 8.00 % $ 860,293 > 10.50 % $ 819,327 > 10.00 % Tier 1 risk-based capital 841,052 10.27 491,596 > 6.00 696,428 > 8.50 655,461 > 8.00 Tier 1 leverage 841,052 10.03 335,420 > 4.00 335,420 > 4.00 419,275 > 5.00 Common equity Tier 1 792,321 9.67 368,697 > 4.50 573,529 > 7.00 532,562 > 6.50 Quad City Bank & Trust: Total risk-based capital $ 300,413 12.67 % $ 189,707 > 8.00 % $ 248,990 > 10.50 % $ 237,133 > 10.00 % Tier 1 risk-based capital 270,744 11.42 142,280 > 6.00 201,563 > 8.50 189,707 > 8.00 Tier 1 leverage 270,744 11.23 96,425 > 4.00 96,425 > 4.00 120,531 > 5.00 Common equity Tier 1 270,744 11.42 106,710 > 4.50 165,993 > 7.00 154,137 > 6.50 Cedar Rapids Bank & Trust: Total risk-based capital $ 381,514 15.60 % $ 195,687 > 8.00 % $ 256,840 > 10.50 % $ 244,609 > 10.00 % Tier 1 risk-based capital 354,940 14.51 146,766 > 6.00 207,918 > 8.50 195,687 > 8.00 Tier 1 leverage 354,940 14.77 96,093 > 4.00 96,093 > 4.00 120,116 > 5.00 Common equity Tier 1 354,940 14.51 110,074 > 4.50 171,227 > 7.00 158,996 > 6.50 Community State Bank: Total risk-based capital $ 171,747 13.22 % $ 103,903 > 8.00 % $ 136,372 > 10.50 % $ 129,878 > 10.00 % Tier 1 risk-based capital 156,629 12.06 77,927 > 6.00 110,397 > 8.50 103,903 > 8.00 Tier 1 leverage 156,629 11.19 56,005 > 4.00 56,005 > 4.00 70,007 > 5.00 Common equity Tier 1 156,629 12.06 58,445 > 4.50 90,915 > 7.00 84,421 > 6.50 Guaranty Bank: Total risk-based capital $ 267,822 12.68 % $ 168,967 > 8.00 % $ 221,770 > 10.50 % $ 211,209 > 10.00 % Tier 1 risk-based capital 244,506 11.58 126,726 > 6.00 179,528 > 8.50 168,967 > 8.00 Tier 1 leverage 244,506 11.41 85,688 > 4.00 85,688 > 4.00 107,110 > 5.00 Common equity Tier 1 244,506 11.58 95,044 > 4.50 147,847 > 7.00 137,286 > 6.50 |
Note 1 - SUMMARY OF SIGNIFICA_3
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 6 Months Ended |
Jun. 30, 2024 subsidiary | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Number of subsidiaries commercial banks | 4 |
Maximum term for financial receivable | 1 year |
Note 2 - INVESTMENT SECURITIE_2
Note 2 - INVESTMENT SECURITIES (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 USD ($) state security issuer | Mar. 31, 2023 USD ($) | Jun. 30, 2024 USD ($) state item security issuer | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) issuer state | |
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | |||||
Number of securities | security | 647 | 647 | |||
Aggregate losses of securities (as a percent) | 9.50% | 9.50% | |||
Available-for-sale, unrealized loss positions, qualitative disclosure, number of positions | security | 553 | 553 | |||
Available-for-sale, unrealized loss positions, qualitative disclosure, number of positions, greater than or equal to one year | security | 464 | 464 | |||
Securities trading, at fair value | $ 22,362 | $ 22,362 | $ 22,369 | ||
Recognized trading gain (loss) | $ 234 | $ 253 | |||
Number Of Charters Owning Municipal Securities | item | 4 | ||||
General Obligation Bonds | |||||
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | |||||
Number of issuers | issuer | 79 | 79 | 82 | ||
Other investments | $ 94,200 | $ 94,200 | $ 99,400 | ||
Number of states holding investments | state | 18 | 18 | 18 | ||
General Obligation Bonds | Aggregate Fair Value Exceeding 5 Million | |||||
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | |||||
Number of states holding investments | state | 8 | 8 | 8 | ||
General Obligation Bonds | Aggregate Fair Value Exceeding 5 Million | Minimum | |||||
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | |||||
Other investments | $ 5,000 | $ 5,000 | $ 5,000 | ||
Revenue Bonds | |||||
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | |||||
Number of issuers | issuer | 163 | 163 | 169 | ||
Other investments | $ 766,500 | $ 766,500 | $ 750,800 | ||
Number of states holding investments | state | 31 | 31 | 31 | ||
Revenue Bonds | Aggregate Fair Value Exceeding 5 Million | |||||
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | |||||
Number of states holding investments | state | 14 | 14 | 15 | ||
Revenue Bonds | Aggregate Fair Value Exceeding 5 Million | Minimum | |||||
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | |||||
Other investments | $ 5,000 | $ 5,000 | $ 5,000 | ||
Revenue Bonds | Aggregate Book Or Market Value Exceeded 5% of The Company Equity | |||||
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | |||||
Number of issuers | issuer | 2 | 2 | 2 | ||
Percentage threshold | 5% | 5% | |||
Other securities | |||||
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | |||||
Provision for credit loss expense | $ 989 | ||||
Corporate securities | |||||
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | |||||
Provision for credit loss expense | $ 989 | $ (445) |
Note 2 - INVESTMENT SECURITIE_3
Note 2 - INVESTMENT SECURITIES - Amortized Cost and Fair Value of HTM and AFS Investment Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Securities HTM: | ||||||
Securities HTM, Amortized cost | $ 720,828 | $ 683,707 | ||||
Securities HTM, Allowance for Credit (Losses) | (203) | $ (203) | (203) | |||
Securities HTM, Gross Unrealized Gains | 24,827 | 33,429 | ||||
Securities HTM, Gross Unrealized (Losses) | (49,005) | (36,654) | ||||
Securities HTM, Fair Value | 696,447 | 680,279 | ||||
Securities AFS: | ||||||
Securities AFS, Amortized Cost | 342,238 | 348,633 | ||||
Securities AFS, Allowance for Credit (Losses) | (989) | |||||
Securities AFS, Gross Unrealized Gains | 229 | 190 | ||||
Securities AFS, Gross Unrealized (Losses) | (52,255) | (48,179) | ||||
Securities AFS, Fair Value | 290,212 | 299,655 | ||||
U.S. treasuries and govt. sponsored agency securities | ||||||
Securities AFS: | ||||||
Securities AFS, Amortized Cost | 22,717 | 17,399 | ||||
Securities AFS, Gross Unrealized Gains | 11 | 12 | ||||
Securities AFS, Gross Unrealized (Losses) | (2,627) | (2,438) | ||||
Securities AFS, Fair Value | 20,101 | 14,973 | ||||
Residential mortgage-backed and related securities | ||||||
Securities AFS: | ||||||
Securities AFS, Amortized Cost | 60,950 | 65,168 | ||||
Securities AFS, Gross Unrealized Gains | 1 | |||||
Securities AFS, Gross Unrealized (Losses) | (6,243) | (5,972) | ||||
Securities AFS, Fair Value | 54,708 | 59,196 | ||||
Municipal securities | ||||||
Securities HTM: | ||||||
Securities HTM, Amortized cost | 719,778 | 682,657 | ||||
Securities HTM, Allowance for Credit (Losses) | (202) | (202) | (202) | $ (180) | $ (180) | $ (180) |
Securities HTM, Gross Unrealized Gains | 24,827 | 33,385 | ||||
Securities HTM, Gross Unrealized (Losses) | (48,989) | (36,639) | ||||
Securities HTM, Fair Value | 695,414 | 679,201 | ||||
Securities AFS: | ||||||
Securities AFS, Amortized Cost | 205,340 | 206,566 | ||||
Securities AFS, Gross Unrealized Gains | 11 | |||||
Securities AFS, Gross Unrealized (Losses) | (40,072) | (35,590) | ||||
Securities AFS, Fair Value | 165,268 | 170,987 | ||||
Asset-backed securities | ||||||
Securities AFS: | ||||||
Securities AFS, Amortized Cost | 12,516 | 15,261 | ||||
Securities AFS, Gross Unrealized Gains | 205 | 167 | ||||
Securities AFS, Gross Unrealized (Losses) | (5) | |||||
Securities AFS, Fair Value | 12,721 | 15,423 | ||||
Other securities | ||||||
Securities HTM: | ||||||
Securities HTM, Amortized cost | 1,050 | 1,050 | ||||
Securities HTM, Allowance for Credit (Losses) | (1) | $ (1) | (1) | |||
Securities HTM, Gross Unrealized Gains | 44 | |||||
Securities HTM, Gross Unrealized (Losses) | (16) | (15) | ||||
Securities HTM, Fair Value | 1,033 | 1,078 | ||||
Securities AFS: | ||||||
Securities AFS, Amortized Cost | 40,715 | 44,239 | ||||
Securities AFS, Allowance for Credit (Losses) | (989) | $ (989) | ||||
Securities AFS, Gross Unrealized Gains | 12 | |||||
Securities AFS, Gross Unrealized (Losses) | (3,313) | (4,174) | ||||
Securities AFS, Fair Value | $ 37,414 | $ 39,076 |
Note 2 - INVESTMENT SECURITIE_4
Note 2 - INVESTMENT SECURITIES - Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Securities HTM: | ||
Securities HTM, Less than 12 Months, Fair Value | $ 102,117 | $ 1,855 |
Securities HTM, Less than 12 Months, Gross Unrealized Losses | (3,263) | (26) |
Securities HTM, 12 Months or More, Fair Value | 267,615 | 289,891 |
Securities HTM, 12 Months or More, Gross Unrealized Losses | (45,742) | (36,628) |
Securities HTM, Total, Fair Value | 369,732 | 291,746 |
Securities HTM, Total, Gross Unrealized Losses | (49,005) | (36,654) |
Securities AFS: | ||
Securities AFS, Less than 12 Months, Fair Value | 9,317 | 4,088 |
Securities AFS, Less than 12 Months, Gross Unrealized Losses | (333) | (395) |
Securities AFS, 12 Months or More, Fair Value | 266,238 | 282,087 |
Securities AFS, 12 Months or More, Gross Unrealized Losses | (51,922) | (47,784) |
Securities AFS, Total, Fair Value | 275,555 | 286,175 |
Securities AFS, Total, Gross Unrealized Losses | (52,255) | (48,179) |
Municipal securities | ||
Securities HTM: | ||
Securities HTM, Less than 12 Months, Fair Value | 101,617 | 1,320 |
Securities HTM, Less than 12 Months, Gross Unrealized Losses | (3,262) | (11) |
Securities HTM, 12 Months or More, Fair Value | 267,081 | 289,891 |
Securities HTM, 12 Months or More, Gross Unrealized Losses | (45,727) | (36,628) |
Securities HTM, Total, Fair Value | 368,698 | 291,211 |
Securities HTM, Total, Gross Unrealized Losses | (48,989) | (36,639) |
Securities AFS: | ||
Securities AFS, Less than 12 Months, Fair Value | 809 | 283 |
Securities AFS, Less than 12 Months, Gross Unrealized Losses | (1) | (2) |
Securities AFS, 12 Months or More, Fair Value | 164,459 | 169,876 |
Securities AFS, 12 Months or More, Gross Unrealized Losses | (40,071) | (35,588) |
Securities AFS, Total, Fair Value | 165,268 | 170,159 |
Securities AFS, Total, Gross Unrealized Losses | (40,072) | (35,590) |
U.S. treasuries and govt. sponsored agency securities | ||
Securities AFS: | ||
Securities AFS, Less than 12 Months, Fair Value | 5,760 | |
Securities AFS, Less than 12 Months, Gross Unrealized Losses | (4) | |
Securities AFS, 12 Months or More, Fair Value | 13,507 | 14,018 |
Securities AFS, 12 Months or More, Gross Unrealized Losses | (2,623) | (2,438) |
Securities AFS, Total, Fair Value | 19,267 | 14,018 |
Securities AFS, Total, Gross Unrealized Losses | (2,627) | (2,438) |
Residential mortgage-backed and related securities | ||
Securities AFS: | ||
Securities AFS, Less than 12 Months, Fair Value | 74 | |
Securities AFS, Less than 12 Months, Gross Unrealized Losses | (1) | |
Securities AFS, 12 Months or More, Fair Value | 54,502 | 59,118 |
Securities AFS, 12 Months or More, Gross Unrealized Losses | (6,242) | (5,972) |
Securities AFS, Total, Fair Value | 54,576 | 59,118 |
Securities AFS, Total, Gross Unrealized Losses | (6,243) | (5,972) |
Asset-backed securities | ||
Securities AFS: | ||
Securities AFS, 12 Months or More, Fair Value | 3,804 | |
Securities AFS, 12 Months or More, Gross Unrealized Losses | (5) | |
Securities AFS, Total, Fair Value | 3,804 | |
Securities AFS, Total, Gross Unrealized Losses | (5) | |
Other securities | ||
Securities HTM: | ||
Securities HTM, Less than 12 Months, Fair Value | 500 | 535 |
Securities HTM, Less than 12 Months, Gross Unrealized Losses | (1) | (15) |
Securities HTM, 12 Months or More, Fair Value | 534 | |
Securities HTM, 12 Months or More, Gross Unrealized Losses | (15) | |
Securities HTM, Total, Fair Value | 1,034 | 535 |
Securities HTM, Total, Gross Unrealized Losses | (16) | (15) |
Securities AFS: | ||
Securities AFS, Less than 12 Months, Fair Value | 2,674 | 3,805 |
Securities AFS, Less than 12 Months, Gross Unrealized Losses | (327) | (393) |
Securities AFS, 12 Months or More, Fair Value | 33,770 | 35,271 |
Securities AFS, 12 Months or More, Gross Unrealized Losses | (2,986) | (3,781) |
Securities AFS, Total, Fair Value | 36,444 | 39,076 |
Securities AFS, Total, Gross Unrealized Losses | $ (3,313) | $ (4,174) |
Note 2 - INVESTMENT SECURITIE_5
Note 2 - INVESTMENT SECURITIES - Activity in Allowance for Credit Losses HTM and AFS securities by major security (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 203 | ||
Balance, ending | 203 | ||
Beginning balance | 989 | ||
Municipal securities | |||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 180 | 202 | $ 180 |
Balance, ending | 180 | 202 | 180 |
Corporate securities | |||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 989 | ||
Reduction due to sales | (544) | ||
Provision for credit loss expense | 989 | (445) | |
Balance, ending | $ 989 | 989 | |
Other securities | |||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 1 | ||
Balance, ending | 1 | ||
Beginning balance | $ 989 | ||
Provision for credit loss expense | 989 | ||
Balance, ending | $ 989 |
Note 2 - INVESTMENT SECURITIE_6
Note 2 - INVESTMENT SECURITIES - Sales of Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | |||
Proceeds from sales of securities | $ 1,940 | $ 445 | $ 30,568 |
Gross gains from sales of securities | $ 12 | 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 | Jun. 30, 2024 | Dec. 31, 2023 |
Securities HTM: | ||
Securities held to maturity, due in one year or less, amortized cost | $ 1,912 | |
Securities held to maturity, due in one year or less, fair value | 1,893 | |
Securities held to maturity, due after one year through five years, amortized cost | 21,605 | |
Securities held to maturity, due after one year through five years, fair value | 22,436 | |
Securities held to maturity, due after five years, amortized cost | 697,311 | |
Securities held to maturity, due after five years, fair value | 672,118 | |
Securities HTM, Amortized cost | 720,828 | $ 683,707 |
Securities held to maturity, fair value | 696,447 | 680,279 |
Securities AFS: | ||
Securities available for sale, due in one year or less, amortized cost | 6,298 | |
Securities available for sale, Due in one year or less, fair value | 6,293 | |
Securities available for sale, due after one year through five years, amortized cost | 19,044 | |
Securities available for sale, Due after one year through five years, fair value | 17,849 | |
Securities available for sale, due after five years, amortized cost | 243,430 | |
Securities available for sale, due after five years, fair value | 198,641 | |
Securities available for sale, single maturity, amortized cost | 268,772 | |
Securities available for sale, single maturity, fair value | 222,783 | |
Securities AFS, Amortized Cost | 342,238 | 348,633 |
Available-for-sale Securities, Debt Securities, Total | 290,212 | 299,655 |
Callable Securities | ||
Securities AFS: | ||
Securities AFS, Amortized Cost | 244,417 | |
Available-for-sale Securities, Debt Securities, Total | 201,050 | |
Municipal securities | ||
Securities HTM: | ||
Securities HTM, Amortized cost | 719,778 | 682,657 |
Securities held to maturity, fair value | 695,414 | 679,201 |
Securities AFS: | ||
Securities AFS, Amortized Cost | 205,340 | 206,566 |
Available-for-sale Securities, Debt Securities, Total | 165,268 | 170,987 |
Municipal securities | Callable Securities | ||
Securities HTM: | ||
Securities held to maturity, callable, amortized cost | 249,059 | |
Securities held to maturity, callable, fair value | 246,233 | |
Securities AFS: | ||
Securities available for sale, callable, amortized cost | 204,660 | |
Securities available for sale, callable, fair value | 164,606 | |
Asset-backed securities | ||
Securities AFS: | ||
Securities AFS, Amortized Cost | 12,516 | 15,261 |
Available-for-sale Securities, Debt Securities, Total | 12,721 | 15,423 |
Securities available for sale, callable, amortized cost | 12,516 | |
Securities available for sale, callable, fair value | 12,721 | |
Residential mortgage-backed and related securities | ||
Securities AFS: | ||
Securities AFS, Amortized Cost | 60,950 | 65,168 |
Available-for-sale Securities, Debt Securities, Total | 54,708 | 59,196 |
Securities available for sale, callable, amortized cost | 60,950 | |
Securities available for sale, callable, fair value | 54,708 | |
Other securities | ||
Securities HTM: | ||
Securities HTM, Amortized cost | 1,050 | 1,050 |
Securities held to maturity, fair value | 1,033 | 1,078 |
Securities AFS: | ||
Securities AFS, Amortized Cost | 40,715 | 44,239 |
Available-for-sale Securities, Debt Securities, Total | 37,414 | $ 39,076 |
Other securities | Callable Securities | ||
Securities AFS: | ||
Securities available for sale, callable, amortized cost | 39,757 | |
Securities available for sale, callable, fair value | $ 36,444 |
Note 3 - LOANS_LEASES RECEIVA_3
Note 3 - LOANS/LEASES RECEIVABLE (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Loans/leases receivable | $ 6,854,386 | $ 6,543,416 |
Accrued interest on loans | 36,500 | 31,800 |
C&I | ||
Loans/leases receivable | 1,825,313 | 1,807,021 |
C&I | C&I - other | ||
Loans/leases receivable | 1,463,198 | 1,481,778 |
C&I | C&I - other including lease | ||
Loans/leases receivable | 1,489,006 | 1,512,942 |
C&I | m2 Lease Funds, LLC | C&I - other | ||
Loans/leases receivable | 338,100 | 319,500 |
Direct financing leases | ||
Loans/leases receivable | 25,808 | 31,164 |
Multi-family | ||
Loans/leases receivable | 1,477,483 | 996,143 |
Loan held for sale | 243,200 | 0 |
1-4 family real estate | ||
Loans/leases receivable | 583,542 | 544,971 |
Loan held for sale | $ 2,900 | $ 2,600 |
Note 3 - LOANS_LEASES RECEIVA_4
Note 3 - LOANS/LEASES RECEIVABLE - Composition of the Loan Lease Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Gross loans/leases receivable | $ 6,854,386 | $ 6,543,416 | ||||
Less allowance for credit losses | (87,706) | $ (84,470) | (87,200) | $ (85,797) | $ (86,573) | $ (87,706) |
Net loans/leases receivable | 6,766,680 | 6,456,216 | ||||
C&I | ||||||
Gross loans/leases receivable | 1,825,313 | 1,807,021 | ||||
C&I | C&I - revolving | ||||||
Gross loans/leases receivable | 362,115 | 325,243 | ||||
Less allowance for credit losses | (3,699) | (4,440) | (4,224) | (4,101) | (4,637) | (4,457) |
C&I | C&I - other | ||||||
Gross loans/leases receivable | 1,463,198 | 1,481,778 | ||||
CRE | CRE - owner occupied | ||||||
Gross loans/leases receivable | 633,596 | 607,365 | ||||
CRE | Non-owner occupied | ||||||
Gross loans/leases receivable | 1,082,457 | 1,008,892 | ||||
Less allowance for credit losses | (12,376) | (12,607) | (11,581) | (11,968) | (12,632) | (11,749) |
Construction and land development | ||||||
Gross loans/leases receivable | 1,082,348 | 1,420,525 | ||||
Less allowance for credit losses | (12,054) | (12,737) | (16,856) | (15,888) | (15,245) | (14,262) |
Multi-family | ||||||
Gross loans/leases receivable | 1,477,483 | 996,143 | ||||
Less allowance for credit losses | (14,257) | (12,928) | (12,463) | (11,229) | (11,621) | (13,186) |
Direct financing leases | ||||||
Net minimum lease payments to be received | 28,823 | 34,966 | ||||
Estimated unguaranteed residual values of leased assets | 165 | 165 | ||||
Unearned lease/residual income | (3,180) | (3,967) | ||||
Gross loans/leases receivable | 25,808 | 31,164 | ||||
Plus deferred lease origination costs, net of fees | 39 | 75 | ||||
Gross loans/leases receivable after originated cost | 25,847 | 31,239 | ||||
Less allowance for credit losses | (800) | (992) | ||||
Net loans/leases receivable | 25,047 | 30,247 | ||||
1-4 family real estate | ||||||
Gross loans/leases receivable | 583,542 | 544,971 | ||||
Less allowance for credit losses | (5,203) | (5,289) | (4,917) | (5,213) | (5,270) | (4,963) |
Consumer | ||||||
Gross loans/leases receivable | 143,839 | 127,335 | ||||
Less allowance for credit losses | $ (1,520) | $ (1,438) | $ (1,476) | $ (1,505) | $ (1,442) | $ (1,371) |
Note 3 - LOANS_LEASES RECEIVA_5
Note 3 - LOANS/LEASES RECEIVABLE - Remaining Discount on Acquired loans (Details) - Performing Loans - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Balance at the beginning of the period | $ (3,539) | $ (5,239) | $ (3,891) | $ (6,088) |
Accretion recognized | 268 | 135 | 620 | 984 |
Balance at the end of the period | $ (3,271) | $ (5,104) | $ (3,271) | $ (5,104) |
Note 3 - LOANS_LEASES RECEIVA_6
Note 3 - LOANS/LEASES RECEIVABLE - Aging of the Loan Lease Portfolio (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Loans/leases receivable | $ 6,854,386 | $ 6,543,416 |
Accruing Past Due 90 Days or More | 87 | 86 |
Nonaccrual Loans/Leases | $ 33,546 | $ 32,753 |
Accruing past due 90 days or more as a percentage of total loan/lease portfolio | 0% | 0% |
Nonaccrual Loans/Leases as a percentage of total loan/lease portfolio | 0.49% | 0.50% |
Loans and leases as a percentage of total loan/lease portfolio | 100% | 100% |
Current | ||
Loans/leases receivable | $ 6,794,823 | $ 6,494,515 |
Current as a percentage of total loan/lease portfolio | 99.13% | 99.25% |
30-59 Days Past Due | ||
Loans/leases receivable | $ 20,263 | $ 9,651 |
Past due as a percentage of total loan/lease portfolio | 0.30% | 0.15% |
60 to 89 Days Past Due | ||
Loans/leases receivable | $ 5,667 | $ 6,411 |
Past due as a percentage of total loan/lease portfolio | 0.08% | 0.10% |
C&I | ||
Loans/leases receivable | $ 1,825,313 | $ 1,807,021 |
C&I | C&I - revolving | ||
Loans/leases receivable | 362,115 | 325,243 |
C&I | C&I - other | ||
Loans/leases receivable | 1,463,198 | 1,481,778 |
Accruing Past Due 90 Days or More | 1 | |
Nonaccrual Loans/Leases | 13,214 | 11,508 |
C&I | Current | C&I - revolving | ||
Loans/leases receivable | 361,717 | 325,243 |
C&I | Current | C&I - other | ||
Loans/leases receivable | 1,440,829 | 1,459,818 |
C&I | 30-59 Days Past Due | C&I - other | ||
Loans/leases receivable | 5,034 | 4,848 |
C&I | 60 to 89 Days Past Due | C&I - revolving | ||
Loans/leases receivable | 398 | |
C&I | 60 to 89 Days Past Due | C&I - other | ||
Loans/leases receivable | 4,121 | 5,603 |
CRE | Owner occupied - CRE | ||
Loans/leases receivable | 633,596 | 607,365 |
Nonaccrual Loans/Leases | 2,210 | 2,680 |
CRE | Non-owner occupied | ||
Loans/leases receivable | 1,082,457 | 1,008,892 |
Nonaccrual Loans/Leases | 4,460 | 4,994 |
CRE | Current | Owner occupied - CRE | ||
Loans/leases receivable | 631,321 | 604,602 |
CRE | Current | Non-owner occupied | ||
Loans/leases receivable | 1,077,874 | 1,003,267 |
CRE | 30-59 Days Past Due | Owner occupied - CRE | ||
Loans/leases receivable | 65 | |
CRE | 30-59 Days Past Due | Non-owner occupied | ||
Loans/leases receivable | 123 | 631 |
CRE | 60 to 89 Days Past Due | Owner occupied - CRE | ||
Loans/leases receivable | 83 | |
Construction and land development | ||
Loans/leases receivable | 1,082,348 | 1,420,525 |
Nonaccrual Loans/Leases | 2,359 | 2,509 |
Construction and land development | Current | ||
Loans/leases receivable | 1,065,387 | 1,418,016 |
Construction and land development | 30-59 Days Past Due | ||
Loans/leases receivable | 13,953 | |
Construction and land development | 60 to 89 Days Past Due | ||
Loans/leases receivable | 649 | |
Multi-family | ||
Loans/leases receivable | 1,477,483 | 996,143 |
Nonaccrual Loans/Leases | 8,172 | 8,172 |
Multi-family | Current | ||
Loans/leases receivable | 1,468,961 | 987,971 |
Multi-family | 30-59 Days Past Due | ||
Loans/leases receivable | 350 | |
Direct financing leases | ||
Loans/leases receivable | 25,808 | 31,164 |
Nonaccrual Loans/Leases | 529 | 289 |
Direct financing leases | Current | ||
Loans/leases receivable | 24,705 | 30,501 |
Direct financing leases | 30-59 Days Past Due | ||
Loans/leases receivable | 310 | 186 |
Direct financing leases | 60 to 89 Days Past Due | ||
Loans/leases receivable | 264 | 188 |
1-4 family real estate | ||
Loans/leases receivable | 583,542 | 544,971 |
Accruing Past Due 90 Days or More | 87 | 85 |
Nonaccrual Loans/Leases | 2,187 | 2,240 |
1-4 family real estate | Current | ||
Loans/leases receivable | 580,831 | 538,229 |
1-4 family real estate | 30-59 Days Past Due | ||
Loans/leases receivable | 359 | 3,883 |
1-4 family real estate | 60 to 89 Days Past Due | ||
Loans/leases receivable | 78 | 534 |
Consumer | ||
Loans/leases receivable | 143,839 | 127,335 |
Nonaccrual Loans/Leases | 415 | 361 |
Consumer | Current | ||
Loans/leases receivable | 143,198 | 126,868 |
Consumer | 30-59 Days Past Due | ||
Loans/leases receivable | 69 | 103 |
Consumer | 60 to 89 Days Past Due | ||
Loans/leases receivable | $ 157 | $ 3 |
Note 3 - LOANS_LEASES RECEIVA_7
Note 3 - LOANS/LEASES RECEIVABLE - Loans Leases Nonperforming Loans Leases (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Accruing Past Due 90 Days or More | $ 87 | $ 86 |
Nonaccrual Loans/Leases | 33,546 | 32,753 |
Loans/leases receivable | $ 6,854,386 | $ 6,543,416 |
Percentage of Total NPLs | 100% | 100% |
Nonperforming loans | ||
Accruing Past Due 90 Days or More | $ 87 | $ 86 |
Nonaccrual Loans/Leases | 19,698 | 15,550 |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 13,848 | 17,203 |
Loans/leases receivable | $ 33,633 | $ 32,839 |
Percentage of Total NPLs | 100% | 100% |
C&I | ||
Loans/leases receivable | $ 1,825,313 | $ 1,807,021 |
C&I | C&I - revolving | ||
Loans/leases receivable | 362,115 | 325,243 |
C&I | C&I - other | ||
Accruing Past Due 90 Days or More | 1 | |
Nonaccrual Loans/Leases | 13,214 | 11,508 |
Loans/leases receivable | 1,463,198 | 1,481,778 |
C&I | Nonperforming loans | C&I - other | ||
Loans/leases receivable | 11,100 | 11,191 |
CRE | Owner occupied - CRE | ||
Nonaccrual Loans/Leases | 2,210 | 2,680 |
Loans/leases receivable | 633,596 | 607,365 |
CRE | Non-owner occupied | ||
Nonaccrual Loans/Leases | 4,460 | 4,994 |
Loans/leases receivable | 1,082,457 | 1,008,892 |
CRE | Nonperforming loans | C&I - other | ||
Accruing Past Due 90 Days or More | 1 | |
Nonaccrual Loans/Leases | 10,923 | 8,865 |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 2,291 | 2,643 |
Loans/leases receivable | $ 13,214 | $ 11,509 |
Percentage of Total NPLs | 39% | 35% |
CRE | Nonperforming loans | Owner occupied - CRE | ||
Nonaccrual Loans/Leases | $ 1,927 | $ 530 |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 283 | 2,150 |
Loans/leases receivable | $ 2,210 | $ 2,680 |
Percentage of Total NPLs | 7% | 8% |
CRE | Nonperforming loans | Non-owner occupied | ||
Nonaccrual Loans/Leases | $ 1,784 | $ 1,213 |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 2,676 | 3,781 |
Loans/leases receivable | $ 4,460 | $ 4,994 |
Percentage of Total NPLs | 13% | 15% |
Construction and land development | ||
Nonaccrual Loans/Leases | $ 2,359 | $ 2,509 |
Loans/leases receivable | 1,082,348 | 1,420,525 |
Construction and land development | Nonperforming loans | ||
Nonaccrual Loans/Leases | 2,359 | 2,509 |
Loans/leases receivable | $ 2,359 | $ 2,509 |
Percentage of Total NPLs | 7% | 8% |
Multi-family | ||
Nonaccrual Loans/Leases | $ 8,172 | $ 8,172 |
Loans/leases receivable | 1,477,483 | 996,143 |
Multi-family | Nonperforming loans | ||
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 8,172 | 8,172 |
Loans/leases receivable | $ 8,172 | $ 8,172 |
Percentage of Total NPLs | 24% | 25% |
Direct financing leases | ||
Nonaccrual Loans/Leases | $ 529 | $ 289 |
Loans/leases receivable | 25,808 | 31,164 |
Direct financing leases | Nonperforming loans | ||
Nonaccrual Loans/Leases | 473 | 206 |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 56 | 83 |
Loans/leases receivable | $ 529 | $ 289 |
Percentage of Total NPLs | 2% | 1% |
1-4 family real estate | ||
Accruing Past Due 90 Days or More | $ 87 | $ 85 |
Nonaccrual Loans/Leases | 2,187 | 2,240 |
Loans/leases receivable | 583,542 | 544,971 |
1-4 family real estate | Nonperforming loans | ||
Accruing Past Due 90 Days or More | 87 | 85 |
Nonaccrual Loans/Leases | 1,817 | 1,866 |
Nonaccrual Loans/Leases without an Allowance for Credit Losses | 370 | 374 |
Loans/leases receivable | $ 2,274 | $ 2,325 |
Percentage of Total NPLs | 7% | 7% |
Consumer | ||
Nonaccrual Loans/Leases | $ 415 | $ 361 |
Loans/leases receivable | 143,839 | 127,335 |
Consumer | Nonperforming loans | ||
Nonaccrual Loans/Leases | 415 | 361 |
Loans/leases receivable | $ 415 | $ 361 |
Percentage of Total NPLs | 1% | 1% |
Note 3 - LOANS_LEASES RECEIVA_8
Note 3 - LOANS/LEASES RECEIVABLE - Allowance for Estimated Losses on Loans Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Balance, beginning | $ 84,470 | $ 86,573 | $ 87,200 | $ 87,706 |
Change in ACL for writedown of LHFS to fair value | 498 | (2,277) | (2,879) | (3,986) |
Provisions | 4,343 | 3,313 | 8,079 | 5,771 |
Charged off | (1,751) | (1,947) | (5,311) | (4,222) |
Recoveries | 146 | 135 | 617 | 528 |
Balance, ending | 87,706 | 85,797 | 87,706 | 85,797 |
C&I | C&I - revolving | ||||
Balance, beginning | 4,440 | 4,637 | 4,224 | 4,457 |
Provisions | (741) | (536) | (525) | (356) |
Balance, ending | 3,699 | 4,101 | 3,699 | 4,101 |
C&I | C&I - other including lease | ||||
Balance, beginning | 26,615 | 26,637 | 27,460 | 27,753 |
Change in ACL for writedown of LHFS to fair value | (5) | (5) | ||
Provisions | 5,469 | 2,318 | 7,696 | 2,875 |
Charged off | (1,681) | (1,920) | (5,219) | (3,975) |
Recoveries | 141 | 132 | 607 | 514 |
Balance, ending | 30,544 | 27,162 | 30,544 | 27,162 |
CRE | Owner occupied - CRE | ||||
Balance, beginning | 8,416 | 9,089 | 8,223 | 9,965 |
Provisions | (363) | (358) | (170) | (1,026) |
Charged off | (208) | |||
Balance, ending | 8,053 | 8,731 | 8,053 | 8,731 |
CRE | Non-owner occupied | ||||
Balance, beginning | 12,607 | 12,632 | 11,581 | 11,749 |
Provisions | (231) | (664) | 795 | 214 |
Recoveries | 5 | |||
Balance, ending | 12,376 | 11,968 | 12,376 | 11,968 |
Construction and land development | ||||
Balance, beginning | 12,737 | 15,245 | 16,856 | 14,262 |
Change in ACL for writedown of LHFS to fair value | 513 | 207 | (147) | |
Provisions | (1,196) | 436 | (4,802) | 1,785 |
Charged off | (12) | |||
Balance, ending | 12,054 | 15,888 | 12,054 | 15,888 |
Multi-family | ||||
Balance, beginning | 12,928 | 11,621 | 12,463 | 13,186 |
Change in ACL for writedown of LHFS to fair value | (15) | (2,479) | (2,879) | (3,834) |
Provisions | 1,344 | 2,087 | 4,673 | 1,877 |
Balance, ending | 14,257 | 11,229 | 14,257 | 11,229 |
Direct financing leases | ||||
Balance, beginning | 992 | |||
Charged off | (89) | |||
Balance, ending | 800 | 800 | ||
Direct financing leases | C&I - other including lease | ||||
Balance, beginning | 884 | 1,100 | 992 | 970 |
Provisions | (106) | (10) | 174 | 59 |
Charged off | 0 | (49) | 89 | 53 |
Recoveries | 22 | 12 | 71 | 30 |
Balance, ending | 800 | 1,000 | 800 | 1,000 |
1-4 family real estate | ||||
Balance, beginning | 5,289 | 5,270 | 4,917 | 4,963 |
Provisions | (66) | (57) | 309 | 245 |
Charged off | (21) | (24) | ||
Recoveries | 1 | 1 | 5 | |
Balance, ending | 5,203 | 5,213 | 5,203 | 5,213 |
Consumer | ||||
Balance, beginning | 1,438 | 1,442 | 1,476 | 1,371 |
Provisions | 127 | 87 | 103 | 157 |
Charged off | (49) | (27) | (68) | (27) |
Recoveries | 4 | 3 | 9 | 4 |
Balance, ending | $ 1,520 | $ 1,505 | $ 1,520 | $ 1,505 |
Note 3 - LOANS_LEASES RECEIVA_9
Note 3 - LOANS/LEASES RECEIVABLE - Composition Of Allowance For Credit Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | $ 97,314 | $ 83,976 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 6,757,072 | 6,459,440 | ||||
Gross loans/leases receivable | 6,854,386 | 6,543,416 | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 10,995 | 8,518 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 76,711 | 78,682 | ||||
Allowance for Credit Losses, Total | 87,706 | $ 84,470 | 87,200 | $ 85,797 | $ 86,573 | $ 87,706 |
C&I | ||||||
Gross loans/leases receivable | 1,825,313 | 1,807,021 | ||||
C&I | Commercial And Industrial Revolving Other Including Lease | ||||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 29,523 | 24,813 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 1,821,598 | 1,813,372 | ||||
Gross loans/leases receivable | 1,851,121 | 1,838,185 | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 6,408 | 4,274 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 27,835 | 27,410 | ||||
Allowance for Credit Losses, Total | 34,243 | 31,684 | ||||
C&I | C&I - revolving | ||||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 3,875 | 4,680 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 358,240 | 320,563 | ||||
Gross loans/leases receivable | 362,115 | 325,243 | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 10 | 632 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 3,689 | 3,592 | ||||
Allowance for Credit Losses, Total | 3,699 | 4,440 | 4,224 | 4,101 | 4,637 | 4,457 |
C&I | C&I - other including lease | ||||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 25,648 | 20,133 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 1,463,358 | 1,492,809 | ||||
Gross loans/leases receivable | 1,489,006 | 1,512,942 | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 6,398 | 3,642 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 24,146 | 23,818 | ||||
Allowance for Credit Losses, Total | 30,544 | 26,615 | 27,460 | 27,162 | 26,637 | 27,753 |
CRE | Owner occupied - CRE | ||||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 27,495 | 22,709 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 606,101 | 584,656 | ||||
Gross loans/leases receivable | 633,596 | 607,365 | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 2,371 | 2,426 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 5,682 | 5,797 | ||||
Allowance for Credit Losses, Total | 8,053 | 8,416 | 8,223 | 8,731 | 9,089 | 9,965 |
CRE | Non-owner occupied | ||||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 21,751 | 21,886 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 1,060,706 | 987,006 | ||||
Gross loans/leases receivable | 1,082,457 | 1,008,892 | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 1,075 | 661 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 11,301 | 10,920 | ||||
Allowance for Credit Losses, Total | 12,376 | 12,607 | 11,581 | 11,968 | 12,632 | 11,749 |
Construction and land development | ||||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 6,758 | 2,726 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 1,075,590 | 1,417,799 | ||||
Gross loans/leases receivable | 1,082,348 | 1,420,525 | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 790 | 809 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 11,264 | 16,047 | ||||
Allowance for Credit Losses, Total | 12,054 | 12,737 | 16,856 | 15,888 | 15,245 | 14,262 |
Multi-family | ||||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 8,201 | 8,206 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 1,469,282 | 987,937 | ||||
Gross loans/leases receivable | 1,477,483 | 996,143 | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 4 | 3 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 14,253 | 12,460 | ||||
Allowance for Credit Losses, Total | 14,257 | 12,928 | 12,463 | 11,229 | 11,621 | 13,186 |
1-4 family real estate | ||||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 3,039 | 3,128 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 580,503 | 541,843 | ||||
Gross loans/leases receivable | 583,542 | 544,971 | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 280 | 289 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 4,923 | 4,628 | ||||
Allowance for Credit Losses, Total | 5,203 | 5,289 | 4,917 | 5,213 | 5,270 | 4,963 |
Consumer | ||||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 547 | 508 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 143,292 | 126,827 | ||||
Gross loans/leases receivable | 143,839 | 127,335 | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 67 | 56 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 1,453 | 1,420 | ||||
Allowance for Credit Losses, Total | 1,520 | 1,438 | 1,476 | 1,505 | 1,442 | 1,371 |
Direct financing leases | ||||||
Gross loans/leases receivable | 25,808 | 31,164 | ||||
Allowance for Credit Losses, Total | 800 | 992 | ||||
Direct financing leases | C&I - other including lease | ||||||
Amortized Cost of Loans Receivable, Individually Evaluated for Credit Losses | 529 | 289 | ||||
Amortized Cost of Loans Receivable, Collectively Evaluated for Credit Losses | 25,300 | 30,900 | ||||
Allowance for Credit Losses, Individually Evaluated for Credit Losses | 171 | 68 | ||||
Allowance for Credit Losses, Collectively Evaluated for Credit Losses | 629 | 924 | ||||
Allowance for Credit Losses, Total | $ 800 | $ 884 | $ 992 | $ 1,000 | $ 1,100 | $ 970 |
Note 3 - LOANS_LEASES RECEIV_10
Note 3 - LOANS/LEASES RECEIVABLE - Amortized Cost Basis of Collateral (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Loans/leases receivable | $ 6,854,386 | $ 6,543,416 |
Collateral Dependent Loans | ||
Loans/leases receivable | 97,314 | 83,976 |
Commercial Assets | ||
Loans/leases receivable | 9,794 | 5,551 |
Owner occupied - CRE | ||
Loans/leases receivable | 27,432 | 22,794 |
Non Owner-Occupied Real Estate | ||
Loans/leases receivable | 37,014 | 32,976 |
Owner Occupied Real Estate | ||
Loans/leases receivable | 3,327 | 3,369 |
Securities | ||
Loans/leases receivable | 5,177 | 5,191 |
Equipment | ||
Loans/leases receivable | 12,176 | 13,249 |
Other | ||
Loans/leases receivable | 2,394 | 846 |
C&I | ||
Loans/leases receivable | 1,825,313 | 1,807,021 |
C&I | Commercial And Industrial Revolving Other Including Lease | ||
Loans/leases receivable | 1,851,121 | 1,838,185 |
C&I | Commercial And Industrial Revolving Other Including Lease | Collateral Dependent Loans | ||
Loans/leases receivable | 29,523 | 24,813 |
C&I | Commercial And Industrial Revolving Other Including Lease | Commercial Assets | ||
Loans/leases receivable | 9,794 | 5,551 |
C&I | Commercial And Industrial Revolving Other Including Lease | Securities | ||
Loans/leases receivable | 5,177 | 5,191 |
C&I | Commercial And Industrial Revolving Other Including Lease | Equipment | ||
Loans/leases receivable | 12,176 | 13,249 |
C&I | Commercial And Industrial Revolving Other Including Lease | Other | ||
Loans/leases receivable | 2,376 | 822 |
C&I | C&I - revolving | ||
Loans/leases receivable | 362,115 | 325,243 |
C&I | C&I - revolving | Collateral Dependent Loans | ||
Loans/leases receivable | 3,875 | 4,680 |
C&I | C&I - revolving | Commercial Assets | ||
Loans/leases receivable | 3,875 | 4,680 |
C&I | C&I - other including lease | ||
Loans/leases receivable | 1,489,006 | 1,512,942 |
C&I | C&I - other including lease | Collateral Dependent Loans | ||
Loans/leases receivable | 25,648 | 20,133 |
C&I | C&I - other including lease | Commercial Assets | ||
Loans/leases receivable | 5,919 | 871 |
C&I | C&I - other including lease | Securities | ||
Loans/leases receivable | 5,177 | 5,191 |
C&I | C&I - other including lease | Equipment | ||
Loans/leases receivable | 12,176 | 13,249 |
C&I | C&I - other including lease | Other | ||
Loans/leases receivable | 2,376 | 822 |
CRE | Owner occupied - CRE | ||
Loans/leases receivable | 633,596 | 607,365 |
CRE | Owner occupied - CRE | Collateral Dependent Loans | ||
Loans/leases receivable | 27,495 | 22,709 |
CRE | Owner occupied - CRE | Owner occupied - CRE | ||
Loans/leases receivable | 27,432 | 22,644 |
CRE | Owner occupied - CRE | Owner Occupied Real Estate | ||
Loans/leases receivable | 63 | 65 |
CRE | Non-owner occupied | ||
Loans/leases receivable | 1,082,457 | 1,008,892 |
CRE | Non-owner occupied | Collateral Dependent Loans | ||
Loans/leases receivable | 21,751 | 21,886 |
CRE | Non-owner occupied | Non Owner-Occupied Real Estate | ||
Loans/leases receivable | 21,751 | 21,886 |
Construction and land development | ||
Loans/leases receivable | 1,082,348 | 1,420,525 |
Construction and land development | Collateral Dependent Loans | ||
Loans/leases receivable | 6,758 | 2,726 |
Construction and land development | Owner occupied - CRE | ||
Loans/leases receivable | 150 | |
Construction and land development | Non Owner-Occupied Real Estate | ||
Loans/leases receivable | 6,758 | 2,576 |
Direct financing leases | ||
Loans/leases receivable | 25,808 | 31,164 |
Direct financing leases | C&I - other including lease | Equipment | ||
Loans/leases receivable | 529 | 289 |
Multi-family | ||
Loans/leases receivable | 1,477,483 | 996,143 |
Multi-family | Collateral Dependent Loans | ||
Loans/leases receivable | 8,201 | 8,206 |
Multi-family | Non Owner-Occupied Real Estate | ||
Loans/leases receivable | 8,201 | 8,206 |
1-4 family real estate | ||
Loans/leases receivable | 583,542 | 544,971 |
1-4 family real estate | Collateral Dependent Loans | ||
Loans/leases receivable | 3,039 | 3,128 |
1-4 family real estate | Non Owner-Occupied Real Estate | ||
Loans/leases receivable | 185 | 189 |
1-4 family real estate | Owner Occupied Real Estate | ||
Loans/leases receivable | 2,854 | 2,939 |
Consumer | ||
Loans/leases receivable | 143,839 | 127,335 |
Consumer | Collateral Dependent Loans | ||
Loans/leases receivable | 547 | 508 |
Consumer | Non Owner-Occupied Real Estate | ||
Loans/leases receivable | 119 | 119 |
Consumer | Owner Occupied Real Estate | ||
Loans/leases receivable | 410 | 365 |
Consumer | Other | ||
Loans/leases receivable | $ 18 | $ 24 |
Note 3 - LOANS_LEASES RECEIV_11
Note 3 - LOANS/LEASES RECEIVABLE - Loans by Internally Assigned Risk Rating (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Gross loans/leases receivable | $ 6,854,386 | $ 6,543,416 |
Internally Assigned Risk Rating | ||
2024/2023 | 741,269 | 1,568,667 |
2023/2022 | 1,462,081 | 1,509,090 |
2022/2021 | 1,402,496 | 1,064,173 |
2021/2020 | 908,331 | 820,731 |
2020/2019 | 752,086 | 316,184 |
Prior | 673,230 | 442,683 |
Revolving Loans Amortized Cost Basis | 550,995 | 471,249 |
Gross loans/leases receivable | 6,490,488 | 6,192,777 |
C&I | ||
Gross loans/leases receivable | 1,825,313 | 1,807,021 |
C&I | C&I - revolving | ||
Gross loans/leases receivable | 362,115 | 325,243 |
C&I | C&I - other | ||
Gross loans/leases receivable | 1,463,198 | 1,481,778 |
C&I | Internally Assigned Risk Rating | C&I - revolving | ||
2024/2023 | 45,162 | |
2023/2022 | 28,955 | |
2022/2021 | 1,615 | |
2020/2019 | 11 | |
Revolving Loans Amortized Cost Basis | 286,372 | 325,243 |
Gross loans/leases receivable | 362,115 | 325,243 |
C&I | Internally Assigned Risk Rating | C&I - other | ||
2024/2023 | 185,238 | 442,395 |
2023/2022 | 319,739 | 310,083 |
2022/2021 | 262,078 | 134,254 |
2021/2020 | 93,602 | 72,413 |
2020/2019 | 58,493 | 65,281 |
Prior | 168,032 | 137,877 |
Revolving Loans Amortized Cost Basis | 37,926 | |
Gross loans/leases receivable | 1,125,108 | 1,162,303 |
C&I | Pass | C&I - revolving | ||
2024/2023 | 42,413 | |
2023/2022 | 28,875 | |
2022/2021 | 500 | |
2020/2019 | 11 | |
Revolving Loans Amortized Cost Basis | 262,354 | 294,449 |
Gross loans/leases receivable | 334,153 | 294,449 |
C&I | Pass | C&I - other | ||
2024/2023 | 177,001 | 430,764 |
2023/2022 | 313,812 | 301,225 |
2022/2021 | 253,330 | 128,057 |
2021/2020 | 88,465 | 68,882 |
2020/2019 | 55,368 | 62,149 |
Prior | 161,254 | 132,171 |
Revolving Loans Amortized Cost Basis | 37,192 | |
Gross loans/leases receivable | 1,086,422 | 1,123,248 |
C&I | Special Mention | C&I - revolving | ||
2023/2022 | 80 | |
2022/2021 | 1,115 | |
Revolving Loans Amortized Cost Basis | 22,892 | 26,289 |
Gross loans/leases receivable | 24,087 | 26,289 |
C&I | Special Mention | C&I - other | ||
2024/2023 | 5,892 | 11,617 |
2023/2022 | 5,914 | 8,777 |
2022/2021 | 3,624 | 5,572 |
2021/2020 | 4,859 | 3,088 |
2020/2019 | 2,950 | 1,024 |
Prior | 1,117 | 386 |
Revolving Loans Amortized Cost Basis | 357 | |
Gross loans/leases receivable | 24,713 | 30,464 |
C&I | Substandard | C&I - revolving | ||
2024/2023 | 2,749 | |
Revolving Loans Amortized Cost Basis | 1,126 | 4,505 |
Gross loans/leases receivable | 3,875 | 4,505 |
C&I | Substandard | C&I - other | ||
2024/2023 | 2,345 | 14 |
2023/2022 | 13 | 81 |
2022/2021 | 5,124 | 625 |
2021/2020 | 278 | 443 |
2020/2019 | 175 | 2,108 |
Prior | 5,661 | 5,320 |
Revolving Loans Amortized Cost Basis | 377 | |
Gross loans/leases receivable | 13,973 | 8,591 |
CRE | Owner occupied - CRE | ||
Gross loans/leases receivable | 633,596 | 607,365 |
CRE | Non-owner occupied | ||
Gross loans/leases receivable | 1,082,457 | 1,008,892 |
CRE | Internally Assigned Risk Rating | Owner occupied - CRE | ||
2024/2023 | 42,593 | 97,754 |
2023/2022 | 101,440 | 125,663 |
2022/2021 | 119,407 | 148,311 |
2021/2020 | 135,530 | 131,028 |
2020/2019 | 120,788 | 30,480 |
Prior | 85,623 | 61,170 |
Revolving Loans Amortized Cost Basis | 28,215 | 12,959 |
Gross loans/leases receivable | 633,596 | 607,365 |
CRE | Internally Assigned Risk Rating | Non-owner occupied | ||
2024/2023 | 67,878 | 220,861 |
2023/2022 | 211,190 | 277,313 |
2022/2021 | 317,043 | 195,236 |
2021/2020 | 169,580 | 133,474 |
2020/2019 | 121,728 | 89,387 |
Prior | 157,967 | 85,065 |
Revolving Loans Amortized Cost Basis | 37,071 | 7,556 |
Gross loans/leases receivable | 1,082,457 | 1,008,892 |
CRE | Pass | Owner occupied - CRE | ||
2024/2023 | 36,647 | 90,708 |
2023/2022 | 101,075 | 124,388 |
2022/2021 | 118,873 | 139,598 |
2021/2020 | 125,020 | 109,483 |
2020/2019 | 99,720 | 28,702 |
Prior | 81,650 | 58,214 |
Revolving Loans Amortized Cost Basis | 27,004 | 12,959 |
Gross loans/leases receivable | 589,989 | 564,052 |
CRE | Pass | Non-owner occupied | ||
2024/2023 | 63,524 | 200,214 |
2023/2022 | 206,697 | 276,055 |
2022/2021 | 315,786 | 195,013 |
2021/2020 | 169,580 | 119,428 |
2020/2019 | 119,775 | 72,136 |
Prior | 136,806 | 78,346 |
Revolving Loans Amortized Cost Basis | 36,921 | 7,406 |
Gross loans/leases receivable | 1,049,089 | 948,598 |
CRE | Special Mention | Owner occupied - CRE | ||
2024/2023 | 3,774 | 5,091 |
2023/2022 | 73 | 711 |
2022/2021 | 8,689 | |
2021/2020 | 10,182 | 5,567 |
2020/2019 | 4,299 | 466 |
Prior | 1,782 | 1,828 |
Revolving Loans Amortized Cost Basis | 1,211 | |
Gross loans/leases receivable | 21,321 | 22,352 |
CRE | Special Mention | Non-owner occupied | ||
2024/2023 | 4,354 | 16,842 |
2023/2022 | 158 | 58 |
2022/2021 | 57 | 223 |
2021/2020 | 12,057 | |
2020/2019 | 2,359 | |
Prior | 6,898 | 6,719 |
Revolving Loans Amortized Cost Basis | 150 | 150 |
Gross loans/leases receivable | 11,617 | 38,408 |
CRE | Substandard | Owner occupied - CRE | ||
2024/2023 | 2,172 | 1,955 |
2023/2022 | 292 | 564 |
2022/2021 | 534 | 24 |
2021/2020 | 328 | 15,978 |
2020/2019 | 16,769 | 1,312 |
Prior | 2,191 | 1,128 |
Gross loans/leases receivable | 22,286 | 20,961 |
CRE | Substandard | Non-owner occupied | ||
2024/2023 | 3,805 | |
2023/2022 | 4,335 | 1,200 |
2022/2021 | 1,200 | |
2021/2020 | 1,989 | |
2020/2019 | 1,953 | 14,892 |
Prior | 14,263 | |
Gross loans/leases receivable | 21,751 | 21,886 |
Construction and land development | ||
Gross loans/leases receivable | 1,082,348 | 1,420,525 |
Construction and land development | Internally Assigned Risk Rating | ||
2024/2023 | 224,140 | 473,099 |
2023/2022 | 447,072 | 486,893 |
2022/2021 | 262,917 | 273,090 |
2021/2020 | 102,933 | 151,091 |
2020/2019 | 14,207 | 1,911 |
Prior | 70 | 4,137 |
Revolving Loans Amortized Cost Basis | 31,009 | 30,304 |
Gross loans/leases receivable | 1,082,348 | 1,420,525 |
Construction and land development | Pass | ||
2024/2023 | 219,952 | 467,045 |
2023/2022 | 446,423 | 485,376 |
2022/2021 | 261,550 | 271,881 |
2021/2020 | 101,730 | 151,091 |
2020/2019 | 14,207 | 1,911 |
Prior | 70 | 4,137 |
Revolving Loans Amortized Cost Basis | 28,518 | 30,304 |
Gross loans/leases receivable | 1,072,450 | 1,411,745 |
Construction and land development | Special Mention | ||
2024/2023 | 6,054 | |
2023/2022 | 649 | |
Revolving Loans Amortized Cost Basis | 2,491 | |
Gross loans/leases receivable | 3,140 | 6,054 |
Construction and land development | Substandard | ||
2024/2023 | 4,188 | |
2023/2022 | 1,517 | |
2022/2021 | 1,367 | 1,209 |
2021/2020 | 1,203 | |
Gross loans/leases receivable | 6,758 | 2,726 |
Multi-family | ||
Gross loans/leases receivable | 1,477,483 | 996,143 |
Multi-family | Internally Assigned Risk Rating | ||
2024/2023 | 100,632 | 182,566 |
2023/2022 | 203,713 | 195,939 |
2022/2021 | 335,693 | 179,099 |
2021/2020 | 287,495 | 239,410 |
2020/2019 | 350,772 | 102,070 |
Prior | 185,529 | 96,897 |
Revolving Loans Amortized Cost Basis | 13,649 | 162 |
Gross loans/leases receivable | 1,477,483 | 996,143 |
Multi-family | Pass | ||
2024/2023 | 100,632 | 180,971 |
2023/2022 | 203,713 | 195,939 |
2022/2021 | 335,693 | 170,893 |
2021/2020 | 279,294 | 239,410 |
2020/2019 | 350,772 | 102,070 |
Prior | 185,529 | 96,897 |
Revolving Loans Amortized Cost Basis | 13,649 | 162 |
Gross loans/leases receivable | 1,469,282 | 986,342 |
Multi-family | Special Mention | ||
2024/2023 | 1,595 | |
Gross loans/leases receivable | 1,595 | |
Multi-family | Substandard | ||
2022/2021 | 8,206 | |
2021/2020 | 8,201 | |
Gross loans/leases receivable | 8,201 | 8,206 |
1-4 family real estate | ||
Gross loans/leases receivable | 583,542 | 544,971 |
1-4 family real estate | Internally Assigned Risk Rating | ||
2024/2023 | 67,157 | 134,095 |
2023/2022 | 129,468 | 103,675 |
2022/2021 | 95,889 | 131,598 |
2021/2020 | 117,234 | 90,279 |
2020/2019 | 83,440 | 26,433 |
Prior | 73,813 | 55,562 |
Revolving Loans Amortized Cost Basis | 16,541 | 3,329 |
Gross loans/leases receivable | 583,542 | 544,971 |
1-4 family real estate | Pass | ||
2024/2023 | 67,157 | 133,923 |
2023/2022 | 129,189 | 103,460 |
2022/2021 | 95,117 | 130,724 |
2021/2020 | 116,564 | 89,642 |
2020/2019 | 83,206 | 25,914 |
Prior | 72,864 | 54,850 |
Revolving Loans Amortized Cost Basis | 16,347 | 3,329 |
Gross loans/leases receivable | 580,444 | 541,842 |
1-4 family real estate | Special Mention | ||
2024/2023 | 28 | |
2022/2021 | 59 | |
2021/2020 | 57 | |
Prior | 9 | |
Revolving Loans Amortized Cost Basis | 78 | |
Gross loans/leases receivable | 144 | 87 |
1-4 family real estate | Substandard | ||
2024/2023 | 144 | |
2023/2022 | 279 | 215 |
2022/2021 | 772 | 815 |
2021/2020 | 613 | 637 |
2020/2019 | 234 | 519 |
Prior | 940 | 712 |
Revolving Loans Amortized Cost Basis | 116 | |
Gross loans/leases receivable | 2,954 | 3,042 |
Consumer | ||
Gross loans/leases receivable | 143,839 | 127,335 |
Consumer | Internally Assigned Risk Rating | ||
2024/2023 | 8,469 | 17,897 |
2023/2022 | 20,504 | 9,524 |
2022/2021 | 7,854 | 2,585 |
2021/2020 | 1,957 | 3,036 |
2020/2019 | 2,647 | 622 |
Prior | 2,196 | 1,975 |
Revolving Loans Amortized Cost Basis | 100,212 | 91,696 |
Gross loans/leases receivable | 143,839 | 127,335 |
Consumer | Pass | ||
2024/2023 | 8,469 | 17,722 |
2023/2022 | 20,330 | 9,405 |
2022/2021 | 7,694 | 2,573 |
2021/2020 | 1,924 | 3,024 |
2020/2019 | 2,647 | 622 |
Prior | 2,081 | 1,842 |
Revolving Loans Amortized Cost Basis | 100,073 | 91,580 |
Gross loans/leases receivable | 143,218 | 126,768 |
Consumer | Special Mention | ||
Revolving Loans Amortized Cost Basis | 74 | 59 |
Gross loans/leases receivable | 74 | 59 |
Consumer | Substandard | ||
2024/2023 | 175 | |
2023/2022 | 174 | 119 |
2022/2021 | 160 | 12 |
2021/2020 | 33 | 12 |
Prior | 115 | 133 |
Revolving Loans Amortized Cost Basis | 65 | 57 |
Gross loans/leases receivable | $ 547 | $ 508 |
Note 3 - LOANS_LEASES RECEIV_12
Note 3 - LOANS/LEASES RECEIVABLE - Leases By Delinquency Status (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Gross loans/leases receivable | $ 6,854,386 | $ 6,543,416 |
Delinquency | ||
2024/2023 | 90,129 | 162,966 |
2023/2022 | 135,286 | 121,162 |
2022/2021 | 94,223 | 46,100 |
2021/2020 | 32,647 | 15,770 |
2020/2019 | 9,642 | 4,212 |
Prior | 1,971 | 429 |
Gross loans/leases receivable | 363,898 | 350,639 |
Nonperforming loans | ||
Gross loans/leases receivable | 33,633 | 32,839 |
C&I | ||
Gross loans/leases receivable | 1,825,313 | 1,807,021 |
C&I | C&I - other | ||
Gross loans/leases receivable | 1,463,198 | 1,481,778 |
C&I | C&I - other | Delinquency | ||
2024/2023 | 89,027 | 150,749 |
2023/2022 | 123,927 | 109,942 |
2022/2021 | 85,249 | 43,052 |
2021/2020 | 30,629 | 12,963 |
2020/2019 | 8,262 | 2,631 |
Prior | 996 | 138 |
Gross loans/leases receivable | 338,090 | 319,475 |
C&I | C&I - other | Performing Loans | ||
2024/2023 | 89,027 | 149,216 |
2023/2022 | 120,871 | 103,804 |
2022/2021 | 80,150 | 40,003 |
2021/2020 | 27,989 | 12,590 |
2020/2019 | 7,982 | 2,539 |
Prior | 971 | 132 |
Gross loans/leases receivable | 326,990 | 308,284 |
C&I | C&I - other | Nonperforming loans | ||
2024/2023 | 1,533 | |
2023/2022 | 3,056 | 6,138 |
2022/2021 | 5,099 | 3,049 |
2021/2020 | 2,640 | 373 |
2020/2019 | 280 | 92 |
Prior | 25 | 6 |
Gross loans/leases receivable | 11,100 | 11,191 |
Direct financing leases | ||
Gross loans/leases receivable | 25,808 | 31,164 |
Direct financing leases | Delinquency | ||
2024/2023 | 1,102 | 12,217 |
2023/2022 | 11,359 | 11,220 |
2022/2021 | 8,974 | 3,048 |
2021/2020 | 2,018 | 2,807 |
2020/2019 | 1,380 | 1,581 |
Prior | 975 | 291 |
Gross loans/leases receivable | 25,808 | 31,164 |
Direct financing leases | Performing Loans | ||
2024/2023 | 1,102 | 12,217 |
2023/2022 | 11,281 | 11,170 |
2022/2021 | 8,690 | 3,005 |
2021/2020 | 1,980 | 2,631 |
2020/2019 | 1,259 | 1,561 |
Prior | 967 | 291 |
Gross loans/leases receivable | 25,279 | 30,875 |
Direct financing leases | Nonperforming loans | ||
2023/2022 | 78 | 50 |
2022/2021 | 284 | 43 |
2021/2020 | 38 | 176 |
2020/2019 | 121 | 20 |
Prior | 8 | |
Gross loans/leases receivable | 529 | 289 |
Construction and land development | ||
Gross loans/leases receivable | 1,082,348 | 1,420,525 |
Construction and land development | Nonperforming loans | ||
Gross loans/leases receivable | 2,359 | 2,509 |
1-4 family real estate | ||
Gross loans/leases receivable | 583,542 | 544,971 |
1-4 family real estate | Nonperforming loans | ||
Gross loans/leases receivable | 2,274 | 2,325 |
Consumer | ||
Gross loans/leases receivable | 143,839 | 127,335 |
Consumer | Nonperforming loans | ||
Gross loans/leases receivable | $ 415 | $ 361 |
Note 3 - LOANS_LEASES RECEIV_13
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
2024 | $ 7 | |||
2023 | $ 228 | 906 | ||
2022 | 848 | 2,910 | ||
2021 | 581 | 1,127 | ||
2020 | 94 | 169 | ||
Prior | 192 | |||
Total | 1,751 | $ 1,947 | 5,311 | $ 4,222 |
Construction and land development | ||||
Total | 12 | |||
Direct financing leases | ||||
2022 | 10 | |||
2021 | 24 | |||
2020 | 42 | |||
Prior | 13 | |||
Total | 89 | |||
1-4 family real estate | ||||
2023 | 21 | 21 | ||
Prior | 3 | |||
Total | 21 | 24 | ||
Consumer | ||||
2023 | 1 | 1 | ||
2022 | 22 | 41 | ||
2021 | 11 | 11 | ||
2020 | 15 | 15 | ||
Total | 49 | $ 27 | 68 | $ 27 |
C&I - other | C&I | ||||
2024 | 7 | |||
2023 | 206 | 884 | ||
2022 | 826 | 2,859 | ||
2021 | 570 | 1,092 | ||
2020 | 79 | 112 | ||
Prior | 176 | |||
Total | $ 1,681 | $ 5,130 |
Note 3 - LOANS_LEASES RECEIV_14
Note 3 - LOANS/LEASES RECEIVABLE - Changes in the ACL for OBS exposures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Balance, beginning | $ 84,470 | $ 86,573 | $ 87,200 | $ 87,706 |
Provisions to expense | 4,343 | 3,313 | 8,079 | 5,771 |
Balance, ending | 87,706 | 85,797 | 87,706 | 85,797 |
Unfunded Loan Commitment | ||||
Balance, beginning | 9,207 | 6,033 | 9,529 | 5,552 |
Provisions to expense | 1,153 | 293 | 831 | 774 |
Balance, ending | $ 10,360 | $ 6,326 | $ 10,360 | $ 6,326 |
Note 4 - SECURITIZATIONS AND _2
Note 4 - SECURITIZATIONS AND VARIABLE INTEREST ENTITIES - VIE (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) item | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | |
Securitizations and Variable Interest Entities | |||
Total assets | $ 8,538,894 | $ 8,871,991 | $ 8,226,673 |
Liabilities | $ 7,652,298 | 7,935,672 | |
Number of sponsored securitizations completed | item | 2 | ||
VIE | |||
Securitizations and Variable Interest Entities | |||
Total assets | $ 22,400 | 22,400 | |
Liabilities | $ 0 | 0 | |
Maximum exposure to loss | $ 31,800 |
Note 5 - DERIVATIVES AND HEDG_3
Note 5 - DERIVATIVES AND HEDGING ACTIVITIES (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Deposits | $ 6,764,667 | $ 6,514,005 |
Cash Flow Hedges | ||
Deposits | 300,000 | |
Interest rate caps | Cash Flow Hedges | ||
Initial premium paid upfront for the two caps | $ 3,500 |
Note 5 - DERIVATIVES AND HEDG_4
Note 5 - DERIVATIVES AND HEDGING ACTIVITIES - Summary of Derivatives (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative Assets | $ 194,354 | $ 187,341 |
Derivative Liabilities | (221,798) | (215,735) |
Interest rate caps | Hedged Derivatives | Cash Flow Hedges | ||
Derivative Assets | 1,783 | 2,847 |
Interest rate caps | Unhedged Derivatives | ||
Derivative Assets | 586 | 951 |
Interest rate swaps | Hedged Derivatives | Cash Flow Hedges | ||
Derivative Assets | 2,680 | 1,689 |
Derivative Liabilities | (33,906) | (30,407) |
Interest rate swaps | Hedged Derivatives | Fair Value Hedges | ||
Derivative Assets | 1,881 | |
Derivative Liabilities | (3,308) | |
Interest rate swaps | Unhedged Derivatives | ||
Derivative Assets | 187,424 | 181,854 |
Derivative Liabilities | (187,424) | (181,854) |
Interest rate collars | Hedged Derivatives | Cash Flow Hedges | ||
Derivative Liabilities | $ (468) | $ (166) |
Note 5 - DERIVATIVES AND HEDG_5
Note 5 - DERIVATIVES AND HEDGING ACTIVITIES - Summary of Hedged Interest Rate Swap and Cap Derivatives (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Derivative Assets | $ 194,354 | $ 187,341 |
Derivative Liabilities | (221,798) | (215,735) |
Hedged Derivatives | Cash Flow Hedges | Interest rate swaps | ||
Derivative Asset, Notional Amount | 114,310 | |
Derivative Liability, Notional Amount | 300,000 | |
Derivative Assets | 2,680 | 1,689 |
Derivative Liabilities | (33,906) | (30,407) |
Hedged Derivatives | Cash Flow Hedges | QCR Holdings Statutory Trust V | ||
Derivative Asset, Notional Amount | $ 10,000 | |
Receive Rate | 7.14% | |
Pay Rate | 4.54% | |
Derivative Assets | $ 509 | 335 |
Hedged Derivatives | Cash Flow Hedges | Community National Statutory Trust III | ||
Derivative Asset, Notional Amount | $ 3,500 | |
Receive Rate | 7.34% | |
Pay Rate | 4.75% | |
Derivative Assets | $ 182 | 118 |
Hedged Derivatives | Cash Flow Hedges | Guaranty Bankshares Statutory Trust I | ||
Derivative Asset, Notional Amount | $ 4,500 | |
Receive Rate | 7.34% | |
Pay Rate | 4.75% | |
Derivative Assets | $ 234 | 152 |
Hedged Derivatives | Cash Flow Hedges | Community National Statutory Trust II | ||
Derivative Asset, Notional Amount | $ 3,000 | |
Receive Rate | 7.76% | |
Pay Rate | 5.17% | |
Derivative Assets | $ 156 | 101 |
Hedged Derivatives | Cash Flow Hedges | QCR Holdings Statutory Trust II | ||
Derivative Asset, Notional Amount | $ 10,000 | |
Receive Rate | 8.44% | |
Pay Rate | 5.85% | |
Derivative Assets | $ 522 | 341 |
Hedged Derivatives | Cash Flow Hedges | QCR Holdings Statutory Trust III | ||
Derivative Asset, Notional Amount | $ 8,000 | |
Receive Rate | 8.44% | |
Pay Rate | 5.85% | |
Derivative Assets | $ 418 | 272 |
Hedged Derivatives | Cash Flow Hedges | Guaranty Statutory Trust II | ||
Derivative Asset, Notional Amount | $ 10,310 | |
Receive Rate | 7.03% | |
Pay Rate | 4.09% | |
Derivative Assets | $ 407 | 370 |
Hedged Derivatives | Cash Flow Hedges | QCR Holdings Subordinated Note | ||
Derivative Asset, Notional Amount | $ 65,000 | |
Receive Rate | 5.34% | |
Pay Rate | 4.02% | |
Derivative Assets | $ 252 | |
Hedged Derivatives | Cash Flow Hedges | Loans, one | ||
Derivative Liability, Notional Amount | $ 35,000 | |
Receive Rate | 1.40% | |
Pay Rate | 5.45% | |
Derivative Liabilities | $ (5,623) | (5,004) |
Hedged Derivatives | Cash Flow Hedges | Loans, two | ||
Derivative Liability, Notional Amount | $ 50,000 | |
Receive Rate | 1.40% | |
Pay Rate | 5.45% | |
Derivative Liabilities | $ (8,033) | (7,149) |
Hedged Derivatives | Cash Flow Hedges | Loans, three | ||
Derivative Liability, Notional Amount | $ 40,000 | |
Receive Rate | 1.40% | |
Pay Rate | 5.45% | |
Derivative Liabilities | $ (6,436) | (5,730) |
Hedged Derivatives | Cash Flow Hedges | Loans, four | ||
Derivative Liability, Notional Amount | $ 25,000 | |
Receive Rate | 1.30% | |
Pay Rate | 5.45% | |
Derivative Liabilities | $ (4,047) | (3,696) |
Hedged Derivatives | Cash Flow Hedges | Loan five | ||
Derivative Liability, Notional Amount | $ 15,000 | |
Receive Rate | 1.91% | |
Pay Rate | 5.45% | |
Derivative Liabilities | $ (977) | (868) |
Hedged Derivatives | Cash Flow Hedges | Loan six | ||
Derivative Liability, Notional Amount | $ 50,000 | |
Receive Rate | 1.91% | |
Pay Rate | 5.45% | |
Derivative Liabilities | $ (3,256) | (2,892) |
Hedged Derivatives | Cash Flow Hedges | Loan seven | ||
Derivative Liability, Notional Amount | $ 35,000 | |
Receive Rate | 1.91% | |
Pay Rate | 5.45% | |
Derivative Liabilities | $ (2,279) | (2,024) |
Hedged Derivatives | Cash Flow Hedges | Loan eight | ||
Derivative Liability, Notional Amount | $ 50,000 | |
Receive Rate | 1.91% | |
Pay Rate | 5.45% | |
Derivative Liabilities | $ (3,255) | (3,044) |
Hedged Derivatives | Cash Flow Hedges | Interest rate caps | ||
Derivative Asset, Notional Amount | 200,000 | |
Derivative Assets | 1,783 | 2,847 |
Hedged Derivatives | Cash Flow Hedges | Deposits, one | ||
Derivative Asset, Notional Amount | $ 25,000 | |
Strike Rate | 1.75% | |
Derivative Assets | (79) | |
Hedged Derivatives | Cash Flow Hedges | Deposits, two | ||
Derivative Asset, Notional Amount | $ 50,000 | |
Strike Rate | 1.57% | |
Hedged Derivatives | Cash Flow Hedges | Deposits, three | ||
Derivative Asset, Notional Amount | $ 25,000 | |
Strike Rate | 1.80% | |
Hedged Derivatives | Cash Flow Hedges | Deposits, four | ||
Derivative Asset, Notional Amount | $ 25,000 | |
Strike Rate | 1.75% | |
Derivative Assets | $ 443 | 672 |
Hedged Derivatives | Cash Flow Hedges | Deposits, five | ||
Derivative Asset, Notional Amount | $ 50,000 | |
Strike Rate | 1.57% | |
Derivative Assets | $ 893 | 1,503 |
Hedged Derivatives | Cash Flow Hedges | Deposits, six | ||
Derivative Asset, Notional Amount | $ 25,000 | |
Strike Rate | 1.80% | |
Derivative Assets | $ 447 | 751 |
Hedged Derivatives | Fair Value Hedges | Interest rate swaps | ||
Notional Amount | 325,000 | |
Derivative Assets | 1,881 | |
Derivative Liabilities | (3,308) | |
Hedged Derivatives | Fair Value Hedges | Loan nineteen | ||
Notional Amount | $ 15,000 | |
Receive Rate | 5.33% | |
Pay Rate | 4.60% | |
Derivative Assets | $ 46 | |
Derivative Liabilities | (69) | |
Hedged Derivatives | Fair Value Hedges | Loan nine | ||
Notional Amount | $ 25,000 | |
Receive Rate | 5.33% | |
Pay Rate | 4.38% | |
Derivative Assets | $ 104 | |
Derivative Liabilities | (195) | |
Hedged Derivatives | Fair Value Hedges | Loan fourteen | ||
Notional Amount | $ 15,000 | |
Receive Rate | 5.33% | |
Pay Rate | 4.38% | |
Derivative Assets | $ 62 | |
Derivative Liabilities | (117) | |
Hedged Derivatives | Fair Value Hedges | Loan twenty | ||
Notional Amount | $ 20,000 | |
Receive Rate | 5.33% | |
Pay Rate | 4.38% | |
Derivative Assets | $ 83 | |
Derivative Liabilities | (140) | |
Hedged Derivatives | Fair Value Hedges | Loan ten | ||
Notional Amount | $ 30,000 | |
Receive Rate | 5.33% | |
Pay Rate | 4.21% | |
Derivative Assets | $ 151 | |
Derivative Liabilities | (293) | |
Hedged Derivatives | Fair Value Hedges | Loan fifteen | ||
Notional Amount | $ 15,000 | |
Receive Rate | 5.33% | |
Pay Rate | 4.21% | |
Derivative Assets | $ 76 | |
Derivative Liabilities | (146) | |
Hedged Derivatives | Fair Value Hedges | Loan twenty one | ||
Notional Amount | $ 20,000 | |
Receive Rate | 5.33% | |
Pay Rate | 4.21% | |
Derivative Assets | $ 101 | |
Derivative Liabilities | (176) | |
Hedged Derivatives | Fair Value Hedges | Loan eleven | ||
Notional Amount | $ 32,500 | |
Receive Rate | 5.33% | |
Pay Rate | 4.08% | |
Derivative Assets | $ 194 | |
Derivative Liabilities | (364) | |
Hedged Derivatives | Fair Value Hedges | Loan sixteen | ||
Notional Amount | $ 15,000 | |
Receive Rate | 5.33% | |
Pay Rate | 4.08% | |
Derivative Assets | $ 90 | |
Derivative Liabilities | (168) | |
Hedged Derivatives | Fair Value Hedges | Loan twenty two | ||
Notional Amount | $ 20,000 | |
Receive Rate | 5.33% | |
Pay Rate | 4.08% | |
Derivative Assets | $ 119 | |
Derivative Liabilities | (202) | |
Hedged Derivatives | Fair Value Hedges | Loan twelve | ||
Notional Amount | $ 32,500 | |
Receive Rate | 5.33% | |
Pay Rate | 3.98% | |
Derivative Assets | $ 225 | |
Derivative Liabilities | (397) | |
Hedged Derivatives | Fair Value Hedges | Loan seventeen | ||
Notional Amount | $ 15,000 | |
Receive Rate | 5.33% | |
Pay Rate | 3.98% | |
Derivative Assets | $ 104 | |
Derivative Liabilities | (183) | |
Hedged Derivatives | Fair Value Hedges | Loan twenty three | ||
Notional Amount | $ 25,000 | |
Receive Rate | 5.33% | |
Pay Rate | 3.98% | |
Derivative Assets | $ 172 | |
Derivative Liabilities | (276) | |
Hedged Derivatives | Fair Value Hedges | Loan thirteen | ||
Notional Amount | $ 30,000 | |
Receive Rate | 5.33% | |
Pay Rate | 3.90% | |
Derivative Assets | $ 236 | |
Derivative Liabilities | (388) | |
Hedged Derivatives | Fair Value Hedges | Loan eighteen | ||
Notional Amount | $ 15,000 | |
Receive Rate | 5.33% | |
Pay Rate | 3.90% | |
Derivative Assets | $ 118 | |
Derivative Liabilities | $ (194) |
Note 5 - DERIVATIVES AND HEDG_6
Note 5 - DERIVATIVES AND HEDGING ACTIVITIES - Hedged Interest Rate Collars (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative Liabilities | $ (221,798) | $ (215,735) |
Cash Flow Hedges | Hedged Derivatives | Interest rate collars | ||
Notional Amount | $ 50,000 | |
Cap Strike Rate | 4.40% | |
Floor Strike Rate | 2.44% | |
Derivative Liabilities | $ (468) | $ (166) |
Note 5 - DERIVATIVES AND HEDG_7
Note 5 - DERIVATIVES AND HEDGING ACTIVITIES - Unhedged Interest Rate Caps and Swaps (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative Assets | $ 194,354 | $ 187,341 |
Derivative Liabilities. | 221,798 | 215,735 |
Unhedged Derivatives | Interest rate swaps | ||
Derivative Asset, Notional Amount | 3,731,140 | 3,308,024 |
Derivative Assets | 187,424 | 181,854 |
Derivative Liability, Notional Amount | 3,731,140 | 3,308,024 |
Derivative Liabilities. | 187,424 | 181,854 |
Unhedged Derivatives | Interest rate caps | ||
Derivative Asset, Notional Amount | 50,000 | |
Derivative Assets | 586 | 951 |
Unhedged Derivatives | Deposits, one | ||
Derivative Asset, Notional Amount | $ 25,000 | |
Derivative Assets | 79 | |
Strike Rate | 1.90% | |
Investment, Variable Interest Rate, Type [Extensible Enumeration] | qcrh:LondonInterbankOfferedRateLiborRateMember | |
Unhedged Derivatives | Deposits, four | ||
Derivative Asset, Notional Amount | $ 25,000 | |
Derivative Assets | $ 586 | $ 872 |
Strike Rate | 1.90% | |
Investment, Variable Interest Rate, Type [Extensible Enumeration] | qcrh:LondonInterbankOfferedRateLiborRateMember |
Note 5 - DERIVATIVES AND HEDG_8
Note 5 - DERIVATIVES AND HEDGING ACTIVITIES - Cash flow hedging and fair value (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative [Line Items] | ||||
Interest and Dividend Income | $ 119,746 | $ 98,377 | $ 234,795 | $ 192,594 |
Interest Expense | 63,583 | 45,172 | 123,933 | 82,579 |
Interest rate caps | Interest Expense | ||||
Derivative [Line Items] | ||||
Gain (loss) on effects of cash flow hedging | (1,039) | (1,875) | (2,155) | (3,456) |
Interest rate swaps | Interest And Dividend Income | ||||
Derivative [Line Items] | ||||
Gain on effects of fair value hedging | 985 | 1,962 | ||
Interest rate swaps | Interest Expense | ||||
Derivative [Line Items] | ||||
Gain (loss) on effects of cash flow hedging | (337) | (275) | (673) | (502) |
Interest rate swaps and collars | Interest And Dividend Income | ||||
Derivative [Line Items] | ||||
Gain (loss) on effects of cash flow hedging | $ (2,987) | $ (2,207) | $ (5,961) | $ (4,262) |
Note 5 - DERIVATIVES AND HEDG_9
Note 5 - DERIVATIVES AND HEDGING ACTIVITIES - Hedged Interest Rate Swaps and Non-hedged Interest Rate Swaps (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
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 | $ 126,314 | $ 150,102 |
Interest rate swaps | Cash | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | 34,960 | 51,680 |
Interest rate swaps | U.S treasuries and govt. sponsored agency securities | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | 6,262 | 6,413 |
Interest rate swaps | Municipal securities | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | 63,824 | 68,651 |
Interest rate swaps | Residential mortgage-backed and related securities | ||
Derivative [Line Items] | ||
Interest rate swaps collateralized by investment securities | $ 21,268 | $ 23,358 |
Note 6 - INCOME TAXES - Reconci
Note 6 - INCOME TAXES - Reconciliation of the Expected Federal Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
INCOME TAXES | ||||
Computed "expected" tax expense | $ 6,650 | $ 6,802 | $ 12,509 | $ 13,090 |
Tax exempt income, net | (3,986) | (3,182) | (7,761) | (6,398) |
Bank-owned life insurance | (622) | (176) | (804) | (324) |
State income taxes, net of federal benefit, current year | 1,088 | 1,239 | 2,102 | 2,428 |
Tax credits | 35 | |||
Tax Credits | (32) | (51) | (209) | |
Income from tax credit equity investments | (497) | (478) | (1,093) | (891) |
Excess tax benefit on stock options exercised and restricted stock awards vested | (54) | (46) | (524) | (444) |
Other | (60) | (160) | (652) | (503) |
Federal and state income tax expense | $ 2,554 | $ 3,967 | $ 3,726 | $ 6,749 |
Computed "expected" tax expense (in percentage) | 21% | 21% | 21% | 21% |
Tax exempt income, net (in percentage) | (12.60%) | (9.80%) | (13.00%) | (10.30%) |
Bank-owned life insurance (in percentage) | (2.00%) | (0.50%) | (1.30%) | (0.50%) |
State income taxes, net of federal benefit, current year (in percentage) | 3.40% | 3.80% | 3.50% | 3.90% |
Tax credits (in percentage) | (0.10%) | (0.10%) | (0.30%) | |
Tax credits (in percentage) | 0.10% | |||
Income from tax credit equity investments (in percentage) | (1.60%) | (1.50%) | (1.80%) | (1.40%) |
Excess tax benefit on stock options exercised and restricted stock awards vested (in percentage) | (0.10%) | (0.10%) | (0.90%) | (0.70%) |
Other (in percentage) | (0.10%) | (0.60%) | (1.10%) | (0.90%) |
Federal and state income tax expense (in percentage) | 8.10% | 12.20% | 6.30% | 10.80% |
Note 6 - INCOME TAXES - Consoli
Note 6 - INCOME TAXES - Consolidated Statements of Operations relative to the Company's tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
INCOME TAXES | |||||
Tax credits recognized | $ 2,115 | $ 2,204 | $ 1,784 | $ 4,319 | $ 2,905 |
Other tax benefits recognized | 613 | 729 | 514 | 1,342 | 1,022 |
Amortization | (2,092) | (2,061) | (1,616) | (4,153) | (2,581) |
Net benefit included in income tax | 636 | 872 | 682 | 1,508 | 1,346 |
Net benefit included in the Consolidated Statements of Operations | $ 636 | $ 872 | $ 682 | $ 1,508 | $ 1,346 |
Note 7 - EARNINGS PER SHARE - B
Note 7 - EARNINGS PER SHARE - Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
EARNINGS PER SHARE | ||||||
Net Income (Loss) | $ 29,114 | $ 26,726 | $ 28,425 | $ 27,157 | $ 55,840 | $ 55,582 |
Basic EPS | $ 1.73 | $ 1.70 | $ 3.32 | $ 3.32 | ||
Diluted EPS | $ 1.72 | $ 1.69 | $ 3.30 | $ 3.29 | ||
Weighted average common shares outstanding (in shares) | 16,814,814 | 16,701,950 | 16,799,081 | 16,739,120 | ||
Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan (in shares) | 107,040 | 97,577 | 117,183 | 131,710 | ||
Weighted average common and common equivalent shares outstanding | 16,921,854 | 16,799,527 | 16,916,264 | 16,870,830 |
Note 8 - FAIR VALUE (Details)
Note 8 - FAIR VALUE (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 USD ($) | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Securities available for sale, at fair value | $ 290,212 | $ 290,212 | $ 299,655 |
Derivatives | 194,354 | 194,354 | 187,341 |
Loans receivable held for sale in preparation for securitization | 243,193 | 243,193 | |
Derivatives | 221,798 | 221,798 | 215,735 |
Trading securities | 22,362 | 22,362 | 22,369 |
Recognized trading gain (loss) | 234 | 253 | |
Fair Value, Measurements, Recurring | |||
Derivatives | 194,354 | 194,354 | 187,341 |
Total assets measured at fair value | 506,928 | 506,928 | 509,365 |
Derivatives | 221,798 | 221,798 | 215,735 |
Total liabilities measured at fair value | $ 221,798 | $ 221,798 | 215,735 |
Fair Value, Measurements, Recurring | Discount Rate | Minimum | |||
Measurement Input | 5.85 | 5.85 | |
Fair Value, Measurements, Recurring | Discount Rate | Maximum | |||
Measurement Input | 7.62 | 7.62 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||
Derivatives | $ 194,354 | $ 194,354 | 187,341 |
Total assets measured at fair value | 484,566 | 484,566 | 486,996 |
Derivatives | 221,798 | 221,798 | 215,735 |
Total liabilities measured at fair value | 221,798 | 221,798 | 215,735 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | |||
Total assets measured at fair value | 22,362 | 22,362 | 22,369 |
Fair Value, Measurements, Nonrecurring | |||
Total assets measured at fair value | 278,078 | 278,078 | 35,111 |
Loans receivable held for sale in preparation for securitization | 243,193 | 243,193 | |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | |||
Total assets measured at fair value | 278,078 | 278,078 | 35,111 |
Loans receivable held for sale in preparation for securitization | 243,193 | 243,193 | |
U.S. treasuries and govt. sponsored agency securities | |||
Securities available for sale, at fair value | 20,101 | 20,101 | 14,973 |
U.S. treasuries and govt. sponsored agency securities | Fair Value, Measurements, Recurring | |||
Securities available for sale, at fair value | 20,101 | 20,101 | 14,973 |
U.S. treasuries and govt. sponsored agency securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||
Securities available for sale, at fair value | 20,101 | 20,101 | 14,973 |
Residential mortgage-backed and related securities | |||
Securities available for sale, at fair value | 54,708 | 54,708 | 59,196 |
Residential mortgage-backed and related securities | Fair Value, Measurements, Recurring | |||
Securities available for sale, at fair value | 54,708 | 54,708 | 59,196 |
Residential mortgage-backed and related securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||
Securities available for sale, at fair value | 54,708 | 54,708 | 59,196 |
Municipal securities | |||
Securities available for sale, at fair value | 165,268 | 165,268 | 170,987 |
Municipal securities | Fair Value, Measurements, Recurring | |||
Securities available for sale, at fair value | 165,268 | 165,268 | 170,987 |
Municipal securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||
Securities available for sale, at fair value | 165,268 | 165,268 | 170,987 |
Asset-backed securities | |||
Securities available for sale, at fair value | 12,721 | 12,721 | 15,423 |
Asset-backed securities | Fair Value, Measurements, Recurring | |||
Securities available for sale, at fair value | 12,721 | 12,721 | 15,423 |
Asset-backed securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||
Securities available for sale, at fair value | 12,721 | 12,721 | 15,423 |
Other securities | |||
Securities available for sale, at fair value | 37,414 | 37,414 | 39,076 |
Other securities | Fair Value, Measurements, Recurring | |||
Securities available for sale, at fair value | 37,414 | 37,414 | 39,076 |
Other securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||
Securities available for sale, at fair value | 37,414 | 37,414 | 39,076 |
Securities trading | Fair Value, Measurements, Recurring | |||
Securities available for sale, at fair value | 22,362 | 22,362 | 22,369 |
Securities trading | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | |||
Securities available for sale, at fair value | 22,362 | 22,362 | 22,369 |
Impaired Loans Leases | Fair Value, Measurements, Nonrecurring | |||
Total assets measured at fair value | 33,910 | 33,910 | 33,656 |
Impaired Loans Leases | Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | |||
Total assets measured at fair value | 33,910 | 33,910 | 33,656 |
Other Real Estate Owned | Fair Value, Measurements, Nonrecurring | |||
Total assets measured at fair value | 399 | 399 | 1,455 |
Other Real Estate Owned | Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | |||
Total assets measured at fair value | $ 399 | $ 399 | $ 1,455 |
Note 8 - FAIR VALUE - Quantitat
Note 8 - FAIR VALUE - Quantitative Information About Level Fair Value Measurements (Details) $ in Thousands | Jun. 30, 2024 USD ($) item | Dec. 31, 2023 USD ($) |
Loans receivable held for sale in preparation for securitization | $ 243,193 | |
Fair Value, Measurements, Nonrecurring | ||
Fair value | 278,078 | $ 35,111 |
Loans receivable held for sale in preparation for securitization | 243,193 | |
Impaired Loans Leases | Fair Value, Measurements, Nonrecurring | ||
Fair value | 33,910 | 33,656 |
Other repossessed assets | Fair Value, Measurements, Nonrecurring | ||
Fair value | 576 | |
Other Real Estate Owned | Fair Value, Measurements, Nonrecurring | ||
Fair value | 399 | 1,455 |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring | ||
Fair value | 278,078 | 35,111 |
Loans receivable held for sale in preparation for securitization | 243,193 | |
Fair Value, Inputs, Level 3 | Valuation Technique, Appraisal of Collateral | Measurement Input, Appraised Value | ||
Loans receivable held for sale in preparation for securitization | $ 33,910 | $ 33,656 |
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 |
Fair Value, Inputs, Level 3 | Minimum | Valuation Technique, Appraisal of Collateral | Measurement Input, Appraised Value | ||
Loans receivable held-for-sale, Measurement Input | item | (0.1000) | |
Fair Value, Inputs, Level 3 | Maximum | Valuation Technique, Appraisal of Collateral | Measurement Input, Appraised Value | ||
Loans receivable held-for-sale, Measurement Input | item | (0.3000) | |
Fair Value, Inputs, Level 3 | Impaired Loans Leases | Fair Value, Measurements, Nonrecurring | ||
Fair value | $ 33,910 | $ 33,656 |
Fair Value, Inputs, Level 3 | Other repossessed assets | Fair Value, Measurements, Nonrecurring | ||
Fair value | 576 | |
Fair Value, Inputs, Level 3 | Other repossessed assets | Valuation Technique, Appraisal of Collateral | Measurement Input, Appraised Value | ||
Fair value | $ 576 | |
Loans receivable held-for-sale, Valuation Technique | qcrh:AverageAuctionPricesMember | qcrh:AverageAuctionPricesMember |
Unobservable input, OREO | us-gaap:MeasurementInputComparabilityAdjustmentMember | us-gaap:MeasurementInputComparabilityAdjustmentMember |
Fair Value, Inputs, Level 3 | Other Real Estate Owned | Fair Value, Measurements, Nonrecurring | ||
Fair value | $ 399 | $ 1,455 |
Fair Value, Inputs, Level 3 | Other Real Estate Owned | Valuation Technique, Appraisal of Collateral | Measurement Input, Appraised Value | ||
Fair value | $ 399 | $ 1,455 |
Valuation technique, OREO | Valuation Technique, Appraisal of Collateral | Valuation Technique, Appraisal of Collateral |
Unobservable input, OREO | Measurement Input, Appraised Value | Measurement Input, Appraised Value |
Fair Value, Inputs, Level 3 | Other Real Estate Owned | Minimum | Valuation Technique, Appraisal of Collateral | Measurement Input, Appraised Value | ||
OREO, measurement input | item | 0 | |
Fair Value, Inputs, Level 3 | Other Real Estate Owned | Maximum | Valuation Technique, Appraisal of Collateral | Measurement Input, Appraised Value | ||
OREO, measurement input | item | (0.3500) |
Note 8 - FAIR VALUE - Carrying
Note 8 - FAIR VALUE - Carrying Values and Estimated Fair Values of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Interest-bearing deposits at financial institutions | $ 94,112 | $ 104,919 |
Securities held to maturity, fair value | 696,447 | 680,279 |
Securities available for sale, at fair value | 290,212 | 299,655 |
Derivatives | 194,354 | 187,341 |
Loans, net | 243,193 | |
Subordinated notes | 233,276 | 233,064 |
Derivatives | 221,798 | 215,735 |
Fair Value, Inputs, Level 1 | Carrying Value | ||
Cash and due from banks | 92,173 | 97,123 |
Fair Value, Inputs, Level 1 | Estimated Fair Value | ||
Cash and due from banks | 92,173 | 97,123 |
Fair Value, Inputs, Level 2 | Carrying Value | ||
Federal funds sold | 8,150 | 35,450 |
Securities held to maturity, fair value | 720,625 | 683,504 |
Securities available for sale, at fair value | 290,212 | 299,655 |
Loans/leases receivable, net | 6,735,282 | 6,425,053 |
Short-term borrowings | 1,600 | 1,500 |
FHLB advances | 485,000 | 435,000 |
Subordinated notes | 233,276 | 233,064 |
Junior subordinated debentures | 48,795 | 48,731 |
Fair Value, Inputs, Level 2 | Carrying Value | Non-maturity Deposits | ||
Deposits | 5,688,913 | 5,504,323 |
Fair Value, Inputs, Level 2 | Carrying Value | Time Deposits | ||
Deposits | 1,075,754 | 1,009,682 |
Fair Value, Inputs, Level 2 | Carrying Value | Interest rate caps | ||
Derivatives | 194,354 | 187,341 |
Fair Value, Inputs, Level 2 | Carrying Value | Interest rate swaps | ||
Derivatives | 221,798 | 215,735 |
Fair Value, Inputs, Level 2 | Carrying Value | Interest-bearing Deposits | ||
Interest-bearing deposits at financial institutions | 94,112 | 104,919 |
Fair Value, Inputs, Level 2 | Estimated Fair Value | ||
Federal funds sold | 8,150 | 35,450 |
Securities held to maturity, fair value | 696,447 | 680,279 |
Securities available for sale, at fair value | 290,212 | 299,655 |
Loans/leases receivable, net | 6,468,550 | 6,125,433 |
Short-term borrowings | 1,600 | 1,500 |
FHLB advances | 485,231 | 437,178 |
Subordinated notes | 239,136 | 240,235 |
Junior subordinated debentures | 40,718 | 40,397 |
Fair Value, Inputs, Level 2 | Estimated Fair Value | Non-maturity Deposits | ||
Deposits | 5,688,913 | 5,504,323 |
Fair Value, Inputs, Level 2 | Estimated Fair Value | Time Deposits | ||
Deposits | 1,071,579 | 996,746 |
Fair Value, Inputs, Level 2 | Estimated Fair Value | Interest rate caps | ||
Derivatives | 194,354 | 187,341 |
Fair Value, Inputs, Level 2 | Estimated Fair Value | Interest rate swaps | ||
Derivatives | 221,798 | 215,735 |
Fair Value, Inputs, Level 2 | Estimated Fair Value | Interest-bearing Deposits | ||
Interest-bearing deposits at financial institutions | 94,112 | 104,919 |
Fair Value, Inputs, Level 3 | Carrying Value | ||
Trading | 22,362 | 22,369 |
Loans/leases receivable, net | 31,398 | 31,163 |
Fair Value, Inputs, Level 3 | Estimated Fair Value | ||
Trading | 22,362 | 22,369 |
Loans/leases receivable, net | 33,910 | 33,656 |
Fair Value, Measurements, Recurring | ||
Derivatives | 194,354 | 187,341 |
Derivatives | 221,798 | 215,735 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Derivatives | 194,354 | 187,341 |
Derivatives | 221,798 | $ 215,735 |
Fair Value, Measurements, Nonrecurring | ||
Loans, net | 243,193 | |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | ||
Loans, net | $ 243,193 |
Note 9 - BUSINESS SEGMENT INF_3
Note 9 - BUSINESS SEGMENT INFORMATION (Details) | Jun. 30, 2024 subsidiary |
Number of subsidiaries commercial banks | 4 |
Commercial Banking | |
Number of subsidiaries commercial banks | 4 |
Note 9 - BUSINESS SEGMENT INF_4
Note 9 - BUSINESS SEGMENT INFORMATION - Selected Financial Information on the Company's Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Total revenue | $ 150,635 | $ 130,897 | $ 292,542 | $ 250,956 | |||
Net interest income | 56,163 | 53,205 | 110,862 | 110,015 | |||
Provision for credit losses | 5,496 | 3,606 | 8,465 | 7,534 | |||
Net income (loss) from continuing operations | 29,114 | $ 26,726 | 28,425 | $ 27,157 | 55,840 | 55,582 | |
Goodwill | 139,027 | 139,027 | 139,027 | 139,027 | $ 139,027 | ||
Intangibles | 12,441 | 15,228 | 12,441 | 15,228 | 13,821 | ||
Total assets | 8,871,991 | 8,226,673 | 8,871,991 | 8,226,673 | $ 8,538,894 | ||
Intersegment Eliminations | |||||||
Total revenue | (38,097) | (36,363) | (72,350) | (71,409) | |||
Net interest income | 366 | 310 | 714 | 654 | |||
Net income (loss) from continuing operations | (36,739) | (34,458) | (69,737) | (68,566) | |||
Total assets | (1,279,437) | (1,431,275) | (1,279,437) | (1,431,275) | |||
Commercial Banking | QCBT | Operating Segments | |||||||
Total revenue | 41,866 | 35,375 | 82,248 | 68,499 | |||
Net interest income | 17,725 | 16,403 | 34,688 | 33,391 | |||
Provision for credit losses | 3,228 | 3,620 | 6,453 | 5,193 | |||
Net income (loss) from continuing operations | 5,557 | 4,816 | 10,460 | 11,854 | |||
Goodwill | 3,223 | 3,223 | 3,223 | 3,223 | |||
Total assets | 2,559,049 | 2,611,832 | 2,559,049 | 2,611,832 | |||
Commercial Banking | CRBT | Operating Segments | |||||||
Total revenue | 50,167 | 51,303 | 98,142 | 94,426 | |||
Net interest income | 17,100 | 16,223 | 34,008 | 33,402 | |||
Provision for credit losses | 2,028 | 480 | 1,794 | 1,996 | |||
Net income (loss) from continuing operations | 17,736 | 19,353 | 35,779 | 35,753 | |||
Goodwill | 14,980 | 14,980 | 14,980 | 14,980 | |||
Intangibles | 755 | 991 | 755 | 991 | |||
Total assets | 2,428,266 | 2,389,623 | 2,428,266 | 2,389,623 | |||
Commercial Banking | CSB | Operating Segments | |||||||
Total revenue | 21,480 | 17,333 | 41,989 | 33,901 | |||
Net interest income | 11,284 | 10,657 | 22,359 | 21,547 | |||
Provision for credit losses | 47 | 198 | 233 | 690 | |||
Net income (loss) from continuing operations | 4,627 | 4,613 | 9,076 | 9,373 | |||
Goodwill | 9,888 | 9,888 | 9,888 | 9,888 | |||
Intangibles | 1,148 | 1,729 | 1,148 | 1,729 | |||
Total assets | 1,531,109 | 1,332,966 | 1,531,109 | 1,332,966 | |||
Commercial Banking | Guaranty Bank | Operating Segments | |||||||
Total revenue | 37,924 | 28,324 | 71,549 | 55,945 | |||
Net interest income | 13,862 | 13,601 | 27,376 | 28,973 | |||
Provision for credit losses | 193 | (692) | (15) | (345) | |||
Net income (loss) from continuing operations | 8,266 | 5,156 | 13,272 | 10,543 | |||
Goodwill | 110,936 | 110,936 | 110,936 | 110,936 | |||
Intangibles | 10,538 | 12,508 | 10,538 | 12,508 | |||
Total assets | 2,369,754 | 2,179,844 | 2,369,754 | 2,179,844 | |||
Other Segments | Operating Segments | |||||||
Total revenue | 37,295 | 34,925 | 70,964 | 69,594 | |||
Net interest income | (4,174) | (3,989) | (8,283) | (7,952) | |||
Net income (loss) from continuing operations | 29,667 | 28,945 | 56,990 | 56,625 | |||
Total assets | $ 1,263,250 | $ 1,143,683 | $ 1,263,250 | $ 1,143,683 |
Note 10 - REGULATORY CAPITAL _3
Note 10 - REGULATORY CAPITAL REQUIREMENTS - Capital Requirements (Details) $ in Thousands | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Total risk-based capital, actual, amount | $ 1,215,780 | $ 1,171,047 |
Total risk-based capital, actual, ratio | 0.1421 | 0.1429 |
Total risk-based capital for capital adequacy purposes, amount | $ 684,345 | $ 655,461 |
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 | $ 855,431 | $ 860,293 |
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 | $ 898,203 | $ 819,327 |
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 | $ 897,236 | $ 841,052 |
Tier 1 risk-based capital, actual, ratio | 0.1049 | 0.1027 |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 513,259 | $ 491,596 |
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 | $ 684,345 | $ 696,428 |
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 | $ 727,116 | $ 655,461 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | 0.0800 |
Tier 1 leverage, actual, amount | $ 897,236 | $ 841,052 |
Tier 1 leverage, actual, ratio | 0.1040 | 0.1003 |
Tier 1 leverage for capital adequacy purposes, amount | $ 345,057 | $ 335,420 |
Tier 1 leverage for capital adequacy purposes, ratio | 0.0400 | 0.0400 |
Tier 1 leverage for capital adequacy purposes with capital conservation buffer, amount | $ 431,321 | $ 335,420 |
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 | $ 345,057 | $ 419,275 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | 0.0500 |
Common equity Tier 1, actual, amount | $ 848,441 | $ 792,321 |
Common equity Tier 1, actual ratio | 0.0992 | 0.0967 |
Common equity Tier 1 for capital adequacy purposes, amount | $ 384,944 | $ 368,697 |
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 | $ 556,030 | $ 573,529 |
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 | $ 598,802 | $ 532,562 |
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 | $ 311,392 | $ 300,413 |
Total risk-based capital, actual, ratio | 0.1291 | 0.1267 |
Total risk-based capital for capital adequacy purposes, amount | $ 192,968 | $ 189,707 |
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 | $ 241,210 | $ 248,990 |
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 | $ 253,271 | $ 237,133 |
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 | $ 281,205 | $ 270,744 |
Tier 1 risk-based capital, actual, ratio | 0.1166 | 0.1142 |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 144,726 | $ 142,280 |
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 | $ 192,968 | $ 201,563 |
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 | $ 205,029 | $ 189,707 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | 0.0800 |
Tier 1 leverage, actual, amount | $ 281,205 | $ 270,744 |
Tier 1 leverage, actual, ratio | 0.1111 | 0.1123 |
Tier 1 leverage for capital adequacy purposes, amount | $ 101,245 | $ 96,425 |
Tier 1 leverage for capital adequacy purposes, ratio | 0.0400 | 0.0400 |
Tier 1 leverage for capital adequacy purposes with capital conservation buffer, amount | $ 126,557 | $ 96,425 |
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 | $ 101,245 | $ 120,531 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | 0.0500 |
Common equity Tier 1, actual, amount | $ 281,205 | $ 270,744 |
Common equity Tier 1, actual ratio | 0.1166 | 0.1142 |
Common equity Tier 1 for capital adequacy purposes, amount | $ 108,545 | $ 106,710 |
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 | $ 156,787 | $ 165,993 |
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 | $ 168,847 | $ 154,137 |
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 | $ 417,981 | $ 381,514 |
Total risk-based capital, actual, ratio | 0.1587 | 0.1560 |
Total risk-based capital for capital adequacy purposes, amount | $ 210,700 | $ 195,687 |
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 | $ 263,375 | $ 256,840 |
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 | $ 276,544 | $ 244,609 |
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 | $ 390,482 | $ 354,940 |
Tier 1 risk-based capital, actual, ratio | 0.1483 | 0.1451 |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 158,025 | $ 146,766 |
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 | $ 210,700 | $ 207,918 |
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 | $ 223,869 | $ 195,687 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | 0.0800 |
Tier 1 leverage, actual, amount | $ 390,482 | $ 354,940 |
Tier 1 leverage, actual, ratio | 0.1622 | 0.1477 |
Tier 1 leverage for capital adequacy purposes, amount | $ 96,312 | $ 96,093 |
Tier 1 leverage for capital adequacy purposes, ratio | 0.0400 | 0.0400 |
Tier 1 leverage for capital adequacy purposes with capital conservation buffer, amount | $ 120,390 | $ 96,093 |
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 | $ 96,312 | $ 120,116 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | 0.0500 |
Common equity Tier 1, actual, amount | $ 390,482 | $ 354,940 |
Common equity Tier 1, actual ratio | 0.1483 | 0.1451 |
Common equity Tier 1 for capital adequacy purposes, amount | $ 118,519 | $ 110,074 |
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 | $ 171,194 | $ 171,227 |
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 | $ 184,362 | $ 158,996 |
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 | $ 179,959 | $ 171,747 |
Total risk-based capital, actual, ratio | 0.1261 | 0.1322 |
Total risk-based capital for capital adequacy purposes, amount | $ 114,161 | $ 103,903 |
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 | $ 142,701 | $ 136,372 |
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 | $ 149,836 | $ 129,878 |
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 | $ 165,686 | $ 156,629 |
Tier 1 risk-based capital, actual, ratio | 0.1161 | 0.1206 |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 85,621 | $ 77,927 |
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 | $ 114,161 | $ 110,397 |
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 | $ 121,296 | $ 103,903 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | 0.0800 |
Tier 1 leverage, actual, amount | $ 165,686 | $ 156,629 |
Tier 1 leverage, actual, ratio | 0.1130 | 0.1119 |
Tier 1 leverage for capital adequacy purposes, amount | $ 58,666 | $ 56,005 |
Tier 1 leverage for capital adequacy purposes, ratio | 0.0400 | 0.0400 |
Tier 1 leverage for capital adequacy purposes with capital conservation buffer, amount | $ 73,332 | $ 56,005 |
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 | $ 58,666 | $ 70,007 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | 0.0500 |
Common equity Tier 1, actual, amount | $ 165,686 | $ 156,629 |
Common equity Tier 1, actual ratio | 0.1161 | 0.1206 |
Common equity Tier 1 for capital adequacy purposes, amount | $ 64,216 | $ 58,445 |
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 | $ 92,756 | $ 90,915 |
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 | $ 99,891 | $ 84,421 |
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 | $ 282,164 | $ 267,822 |
Total risk-based capital, actual, ratio | 0.1326 | 0.1268 |
Total risk-based capital for capital adequacy purposes, amount | $ 170,291 | $ 168,967 |
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 | $ 212,864 | $ 221,770 |
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 | $ 223,508 | $ 211,209 |
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 | $ 258,749 | $ 244,506 |
Tier 1 risk-based capital, actual, ratio | 0.1216 | 0.1158 |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 127,719 | $ 126,726 |
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 | $ 170,291 | $ 179,528 |
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 | $ 180,935 | $ 168,967 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | 0.0800 |
Tier 1 leverage, actual, amount | $ 258,749 | $ 244,506 |
Tier 1 leverage, actual, ratio | 0.1154 | 0.1141 |
Tier 1 leverage for capital adequacy purposes, amount | $ 89,674 | $ 85,688 |
Tier 1 leverage for capital adequacy purposes, ratio | 0.0400 | 0.0400 |
Tier 1 leverage for capital adequacy purposes with capital conservation buffer, amount | $ 112,092 | $ 85,688 |
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 | $ 89,674 | $ 107,110 |
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | 0.0500 |
Common equity Tier 1, actual, amount | $ 258,749 | $ 244,506 |
Common equity Tier 1, actual ratio | 0.1216 | 0.1158 |
Common equity Tier 1 for capital adequacy purposes, amount | $ 95,789 | $ 95,044 |
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 | $ 138,362 | $ 147,847 |
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 | $ 149,005 | $ 137,286 |
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
Note 11 - COMMITMENTS (Details)
Note 11 - COMMITMENTS (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
CBRT facility | |
Long-Term Purchase Commitment [Line Items] | |
Contract price for construction of new facility | $ 17 |
Construction payment for new facility | 10.4 |
Construction remaining future commitment | 6.6 |
CSB facility | |
Long-Term Purchase Commitment [Line Items] | |
Contract price for construction of new facility | 41.3 |
Construction payment for new facility | $ 0 |