COVER
COVER - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 05, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-15393 | |
Entity Registrant Name | HEARTLAND FINANCIAL USA, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 42-1405748 | |
Entity Address, Address Line One | 1800 Larimer Street, Suite 1800 | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80202 | |
City Area Code | 303 | |
Local Phone Number | 285-9200 | |
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 | 42,879,182 | |
Entity Central Index Key | 0000920112 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Stock, par value $1.00 per share | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $1.00 per share | |
Trading Symbol | HTLF | |
Security Exchange Name | NASDAQ | |
Depositary Shares, each representing 1/400th interest in a share of 7.00% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series E | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing 1/400th interest in a share of 7.00% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series E | |
Trading Symbol | HTLFP | |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
ASSETS | ||
Cash and due from banks | $ 226,735 | $ 275,554 |
Interest bearing deposits with other banks and other short-term investments | 147,211 | 47,459 |
Cash and cash equivalents | 373,946 | 323,013 |
Time deposits in other financial institutions | 1,340 | 1,240 |
Securities: | ||
Carried at fair value (cost of $4,636,825 at June 30, 2024, and $5,100,344 at December 31, 2023) | 4,185,054 | 4,646,891 |
Held to maturity, net of allowance for credit losses of $0 at both June 30, 2024, and December 31, 2023 (fair value of $809,516 at June 30, 2024, and $816,399 at December 31, 2023) | 842,980 | 838,241 |
Other investments, at cost | 70,684 | 91,277 |
Loans held for sale | 348,761 | 5,071 |
Loans receivable: | ||
Held to maturity | 11,608,309 | 12,068,645 |
Allowance for credit losses | (126,861) | (122,566) |
Loans receivable, net | 11,481,448 | 11,946,079 |
Premises, furniture and equipment, net | 159,772 | 177,001 |
Premises, furniture and equipment held for sale | 16,181 | 4,069 |
Other real estate, net | 7,533 | 12,548 |
Goodwill | 576,005 | 576,005 |
Core deposit intangibles, net | 15,501 | 18,415 |
Cash surrender value on life insurance | 199,036 | 197,085 |
Other assets | 534,429 | 574,772 |
TOTAL ASSETS | 18,812,670 | 19,411,707 |
Deposits: | ||
Demand | 4,244,169 | 4,500,304 |
Savings | 8,470,416 | 8,805,597 |
Time | 2,242,005 | 2,895,813 |
Total deposits | 14,956,590 | 16,201,714 |
Deposits held for sale | 538,308 | 0 |
Borrowings | 694,909 | 622,255 |
Term debt | 372,988 | 372,396 |
Accrued expenses and other liabilities | 222,025 | 282,225 |
TOTAL LIABILITIES | 16,784,820 | 17,478,590 |
STOCKHOLDERS' EQUITY: | ||
Common stock (par value $1 per share; 60,000,000 shares authorized at both June 30, 2024, and December 31, 2023; issued 42,852,180 shares at June 30, 2024, and 42,688,008 shares at December 31, 2023) | 42,852 | 42,688 |
Capital surplus | 1,096,619 | 1,090,740 |
Retained earnings | 1,203,092 | 1,141,501 |
Accumulated other comprehensive loss | (425,418) | (452,517) |
TOTAL STOCKHOLDERS' EQUITY | 2,027,850 | 1,933,117 |
TOTAL LIABILITIES AND EQUITY | 18,812,670 | 19,411,707 |
Preferred Stock | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock | 0 | 0 |
Series E Fixed-Rate Reset Cumulative Perpetual Preferred Stock | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock | $ 110,705 | $ 110,705 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Marketable securities, amortized cost | $ 4,636,825 | $ 5,100,344 |
Held to maturity | $ 842,980 | $ 838,241 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 60,000,000 | 60,000,000 |
Common stock, shares issued (in shares) | 42,852,180 | 42,688,008 |
Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 188,500 | 188,500 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Series E Fixed-Rate Reset Cumulative Perpetual Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 11,500 | 11,500 |
Preferred stock, shares issued (in shares) | 11,500 | 11,500 |
Preferred stock, shares outstanding (in shares) | 11,500 | 11,500 |
Significant Other Observable Inputs (Level 2) | ||
Held to maturity | $ 809,516 | $ 816,399 |
Obligations of states and political subdivisions | ||
Held to maturity, allowance for credit losses | 0 | 0 |
Held to maturity | $ 842,980 | $ 838,241 |
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 | |
INTEREST INCOME: | ||||
Interest and fees on loans | $ 199,161 | $ 168,899 | $ 394,822 | $ 322,742 |
Interest on securities: | ||||
Taxable | 47,381 | 58,172 | 94,395 | 114,148 |
Nontaxable | 6,042 | 6,378 | 12,083 | 12,406 |
Interest on interest bearing deposits in other financial institutions | 3,045 | 2,051 | 6,051 | 3,182 |
TOTAL INTEREST INCOME | 255,629 | 235,500 | 507,351 | 452,478 |
INTEREST EXPENSE: | ||||
Interest on deposits | 80,499 | 81,975 | 164,633 | 138,873 |
Interest on borrowings | 10,825 | 848 | 18,349 | 3,270 |
Interest on term debt (includes $(245) and $(63) of interest expense (income) related to derivatives reclassified from accumulated other comprehensive income for the three months ended June 30, 2024 and 2023, respectively, and $(210) and $701 of interest expense (income) related to derivatives reclassified from accumulated other comprehensive income for the six months ended June 30, 2024 and 2023, respectively) | 5,564 | 5,545 | 11,413 | 10,991 |
TOTAL INTEREST EXPENSE | 96,888 | 88,368 | 194,395 | 153,134 |
NET INTEREST INCOME | 158,741 | 147,132 | 312,956 | 299,344 |
Provision for credit losses | 9,008 | 5,379 | 9,994 | 8,453 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 149,733 | 141,753 | 302,962 | 290,891 |
NONINTEREST INCOME: | ||||
Loan servicing income | 107 | 411 | 238 | 1,125 |
Securities losses, net (includes $(10,556) and $(325) of net security losses reclassified from accumulated other comprehensive income for the three months ended June 30, 2024 and 2023, respectively, and $(10,556) and $(1,429) of net security losses reclassified from accumulated other comprehensive income for the six months ended June 30, 2024 and 2023, respectively) | (10,111) | (314) | (10,053) | (1,418) |
Unrealized gain (loss) on equity securities, net | 133 | (41) | 228 | 152 |
Net gains on sale of loans held for sale | 0 | 1,050 | 104 | 2,881 |
Income on bank owned life insurance | 1,326 | 1,220 | 2,503 | 2,184 |
Other noninterest income | 1,366 | 407 | 3,713 | 1,870 |
TOTAL NONINTEREST INCOME | 18,207 | 32,493 | 45,870 | 62,492 |
NONINTEREST EXPENSES: | ||||
Salaries and employee benefits | 65,120 | 62,099 | 129,075 | 124,248 |
Occupancy | 6,262 | 6,691 | 13,525 | 13,900 |
Furniture and equipment | 2,155 | 3,063 | 4,492 | 5,978 |
Professional fees | 15,372 | 15,194 | 30,903 | 27,991 |
FDIC insurance assessments | 3,340 | 3,035 | 8,309 | 6,314 |
Advertising | 1,368 | 3,052 | 2,726 | 5,037 |
Core deposit intangibles amortization | 1,421 | 1,715 | 2,913 | 3,503 |
Other real estate and loan collection expenses | 515 | 348 | 1,027 | 503 |
Loss (gain) on sales/valuations of assets, net | 193 | (3,372) | 407 | (2,257) |
Acquisition, integration and restructuring costs | 5,973 | 1,892 | 7,348 | 3,565 |
Partnership investment in tax credit projects | 222 | 154 | 716 | 692 |
Other noninterest expenses | 14,303 | 15,575 | 28,398 | 31,015 |
TOTAL NONINTEREST EXPENSES | 116,244 | 109,446 | 229,839 | 220,489 |
INCOME BEFORE INCOME TAXES | 51,696 | 64,800 | 118,993 | 132,894 |
Income taxes (includes $5,319 and $63 of income tax benefit reclassified from accumulated other comprehensive income for the three months ended June 30, 2024 and 2023, respectively, and $11,081 and $535 of income tax benefit reclassified from accumulated other comprehensive income for the six months ended June 30, 2024 and 2023, respectively) | 11,954 | 15,384 | 27,544 | 30,702 |
NET INCOME | 39,742 | 49,416 | 91,449 | 102,192 |
Preferred dividends | (2,012) | (2,012) | (4,025) | (4,025) |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ 37,730 | $ 47,404 | $ 87,424 | $ 98,167 |
EARNINGS PER COMMON SHARE - BASIC (in dollars per share) | $ 0.88 | $ 1.11 | $ 2.03 | $ 2.30 |
EARNINGS PER COMMON SHARE - DILUTED (in dollars per share) | 0.88 | 1.11 | 2.03 | 2.30 |
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $ 0.30 | $ 0.30 | $ 0.60 | $ 0.60 |
Reclassification out of accumulated other comprehensive income (loss) | Accumulated Net Unrealized Investment Gain (Loss) | ||||
NONINTEREST INCOME: | ||||
Securities losses, net (includes $(10,556) and $(325) of net security losses reclassified from accumulated other comprehensive income for the three months ended June 30, 2024 and 2023, respectively, and $(10,556) and $(1,429) of net security losses reclassified from accumulated other comprehensive income for the six months ended June 30, 2024 and 2023, respectively) | $ (10,556) | $ (325) | $ (10,556) | $ (1,429) |
Reclassification out of accumulated other comprehensive income (loss) | Accumulated Other Comprehensive Loss | ||||
NONINTEREST EXPENSES: | ||||
Income taxes (includes $5,319 and $63 of income tax benefit reclassified from accumulated other comprehensive income for the three months ended June 30, 2024 and 2023, respectively, and $11,081 and $535 of income tax benefit reclassified from accumulated other comprehensive income for the six months ended June 30, 2024 and 2023, respectively) | (5,319) | (63) | (11,081) | (535) |
Service charges and fees | ||||
NONINTEREST INCOME: | ||||
Revenue from contract with customers | 16,964 | 19,627 | 34,027 | 36,763 |
Trust fees | ||||
NONINTEREST INCOME: | ||||
Revenue from contract with customers | 5,532 | 5,419 | 10,575 | 11,076 |
Brokerage and insurance commissions | ||||
NONINTEREST INCOME: | ||||
Revenue from contract with customers | 894 | 677 | 1,648 | 1,373 |
Capital markets fees | ||||
NONINTEREST INCOME: | ||||
Revenue from contract with customers | $ 1,996 | $ 4,037 | $ 2,887 | $ 6,486 |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Net security gains (loss) | $ (10,111) | $ (314) | $ (10,053) | $ (1,418) |
Income tax expense (benefit) | 11,954 | 15,384 | 27,544 | 30,702 |
Reclassification out of accumulated other comprehensive income (loss) | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
Interest benefit | (245) | (63) | (210) | 701 |
Reclassification out of accumulated other comprehensive income (loss) | Accumulated Net Unrealized Investment Gain (Loss) | ||||
Net security gains (loss) | (10,556) | (325) | (10,556) | (1,429) |
Reclassification out of accumulated other comprehensive income (loss) | Accumulated Other Comprehensive Loss | ||||
Income tax expense (benefit) | $ (5,319) | $ (63) | $ (11,081) | $ (535) |
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 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 39,742 | $ 49,416 | $ 91,449 | $ 102,192 |
Changes in available for sale ("AFS") securities: | ||||
Net change in unrealized loss on securities | 5,755 | (43,558) | (8,874) | 22,609 |
Reclassification adjustment for net losses on hedged AFS securities | 8,398 | 29,510 | 28,549 | 29,510 |
Reclassification adjustment for net losses realized in net income | 10,556 | 325 | 10,556 | 1,429 |
Income tax benefit (expense) | (5,881) | 3,366 | (7,253) | (14,555) |
Other comprehensive income (loss) on AFS securities | 18,828 | (10,357) | 22,978 | 38,993 |
Changes in securities held to maturity: | ||||
Net amortization of unrealized losses on securities transferred from AFS | 2,550 | 2,768 | 5,393 | 5,508 |
Income tax expense | (418) | (693) | (1,123) | (1,753) |
Other comprehensive income on held to maturity securities | 2,132 | 2,075 | 4,270 | 3,755 |
Change in cash flow hedges: | ||||
Net change in unrealized gain on derivatives | 0 | 0 | 0 | 1,952 |
Reclassification adjustment for net (gains) losses on derivatives realized in net income | (245) | (63) | (210) | 701 |
Income tax benefit (expense) | 60 | 24 | 61 | (635) |
Other comprehensive income (loss) on cash flow hedges | (185) | (39) | (149) | 2,018 |
Other comprehensive income (loss) | 20,775 | (8,321) | 27,099 | 44,766 |
TOTAL COMPREHENSIVE INCOME | $ 60,517 | $ 41,095 | $ 118,548 | $ 146,958 |
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 | $ 91,449 | $ 102,192 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 9,071 | 10,519 |
Provision for credit losses | 9,994 | 8,453 |
Net amortization of premium on securities | 9,152 | 14,848 |
Securities losses, net | 10,053 | 1,418 |
Unrealized gain on equity securities, net | (228) | (152) |
Stock based compensation | 6,109 | 6,893 |
Loans originated for sale | 0 | (86,860) |
Proceeds on sales of loans held for sale | 5,175 | 80,641 |
Net gains on sale of loans held for sale | (104) | (2,857) |
(Increase) decrease in accrued interest receivable | 2,761 | (2,135) |
Decrease (increase) in prepaid expenses | (1,238) | 2,647 |
Increase (decrease) in accrued interest payable | (16,065) | 30,446 |
Capitalization of servicing rights | 0 | (24) |
Loss (gain) on sales/valuations of assets, net | 407 | (2,257) |
Net excess tax expense from stock based compensation | (418) | (75) |
Income from fair value hedge activity | 670 | 0 |
Other, net | 50,334 | 21,028 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 177,122 | 184,725 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of time deposits in other financial institutions | (100) | 0 |
Proceeds from the sale of securities available for sale | 97,836 | 286,738 |
Proceeds from the maturity of and principal paydowns on securities available for sale | 437,260 | 336,175 |
Proceeds from the maturity of and principal paydowns on securities held to maturity | 1,033 | 298 |
Proceeds from the maturity of time deposits in other financial institutions | 0 | 250 |
Proceeds from the sale, maturity of, redemption of and principal paydowns on other investments | 48,260 | 6,761 |
Purchase of securities available for sale | (91,436) | (265,959) |
Purchase of other investments | (27,164) | (4,474) |
Net (increase) decrease in loans | 61,949 | (307,920) |
Purchase of bank owned life insurance policies | (211) | (206) |
Proceeds from sale of mortgage servicing rights | 0 | 6,714 |
Capital expenditures and investments | (2,765) | (3,043) |
Proceeds from the sale of premises, furniture and equipment | 1,776 | 1,321 |
Proceeds on sale of OREO and other repossessed assets | 9,833 | 5,077 |
NET CASH PROVIDED BY INVESTING ACTIVITIES | 536,271 | 61,732 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net decrease in demand deposits | (123,484) | (803,482) |
Net decrease in savings deposits | (43,774) | (1,221,795) |
Net increase (decrease) in time deposit accounts | (539,558) | 2,175,811 |
Net increase (decrease) in borrowings | 53,840 | (281,753) |
Proceeds from Bank Term Funding Program advances | 500,000 | 0 |
Proceeds from short term FHLB advances | 643,309 | 51,000 |
Repayments of short term FHLB advances | (1,124,495) | (101,000) |
Repayments of term debt | 0 | (60) |
Proceeds from issuance of common stock | 1,454 | 1,456 |
Dividends paid | (29,752) | (29,534) |
NET CASH USED BY FINANCING ACTIVITIES | (662,460) | (209,357) |
Net increase in cash and cash equivalents | 50,933 | 37,100 |
Cash and cash equivalents at beginning of year | 323,013 | 363,087 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 373,946 | 400,187 |
Supplemental disclosures: | ||
Cash paid for income/franchise taxes | 11,511 | 40,303 |
Cash paid for interest | 210,460 | 122,688 |
Loans transferred to OREO | 5,111 | 239 |
Transfer of premises from premises, furniture and equipment, net, to premises, furniture and equipment held for sale | 13,155 | 3,741 |
Transfer of premises from premises, furniture and equipment held for sale to premises, furniture and equipment, net | 0 | 5,825 |
Deposits transferred to held for sale | 538,308 | 0 |
Loans transferred to held for sale | 348,761 | 0 |
Dividends declared, not paid | 2,071 | 2,074 |
Sales of securities available for sale, accrued, not settled | $ 4,181 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Loss |
Balance at beginning of period at Dec. 31, 2022 | $ 1,735,055 | $ 110,705 | $ 42,467 | $ 1,080,964 | $ 1,120,925 | $ (620,006) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive (loss) income | 146,958 | 102,192 | 44,766 | |||
Cash dividends declared: | ||||||
Preferred | (4,025) | (4,025) | ||||
Common | (25,570) | (25,570) | ||||
Issuance of shares of common stock | (321) | 178 | (499) | |||
Stock based compensation | 6,893 | 6,893 | ||||
Balance at end of period at Jun. 30, 2023 | 1,858,990 | 110,705 | 42,645 | 1,087,358 | 1,193,522 | (575,240) |
Balance at beginning of period at Mar. 31, 2023 | 1,829,405 | 110,705 | 42,559 | 1,084,112 | 1,158,948 | (566,919) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive (loss) income | 41,095 | 49,416 | (8,321) | |||
Cash dividends declared: | ||||||
Preferred | (2,012) | (2,012) | ||||
Common | (12,830) | (12,830) | ||||
Issuance of shares of common stock | 1,158 | 86 | 1,072 | |||
Stock based compensation | 2,174 | 2,174 | ||||
Balance at end of period at Jun. 30, 2023 | 1,858,990 | 110,705 | 42,645 | 1,087,358 | 1,193,522 | (575,240) |
Balance at beginning of period at Dec. 31, 2023 | 1,933,117 | 110,705 | 42,688 | 1,090,740 | 1,141,501 | (452,517) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive (loss) income | 118,548 | 91,449 | 27,099 | |||
Cash dividends declared: | ||||||
Preferred | (4,025) | (4,025) | ||||
Common | (25,833) | (25,833) | ||||
Issuance of shares of common stock | (66) | 164 | (230) | |||
Stock based compensation | 6,109 | 6,109 | ||||
Balance at end of period at Jun. 30, 2024 | 2,027,850 | 110,705 | 42,852 | 1,096,619 | 1,203,092 | (425,418) |
Balance at beginning of period at Mar. 31, 2024 | 1,978,833 | 110,705 | 42,784 | 1,093,207 | 1,178,330 | (446,193) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive (loss) income | 60,517 | 39,742 | 20,775 | |||
Cash dividends declared: | ||||||
Preferred | (2,012) | (2,012) | ||||
Common | (12,968) | (12,968) | ||||
Issuance of shares of common stock | 1,117 | 68 | 1,049 | |||
Stock based compensation | 2,363 | 2,363 | ||||
Balance at end of period at Jun. 30, 2024 | $ 2,027,850 | $ 110,705 | $ 42,852 | $ 1,096,619 | $ 1,203,092 | $ (425,418) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends per share preferred stock (in dollars per share) | $ 175 | $ 175 | $ 350 | $ 350 |
Cash dividends per share common stock (in dollars per share) | $ 0.30 | $ 0.30 | $ 0.60 | $ 0.60 |
Shares of common stock issued (in shares) | 68,510 | 85,818 | 164,172 | 177,150 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The interim unaudited consolidated financial statements contained herein should be read in conjunction with the audited consolidated financial statements and accompanying notes to the consolidated financial statements for the fiscal year ended December 31, 2023, included in the Annual Report on Form 10-K of Heartland Financial USA, Inc. ("HTLF") filed with the Securities and Exchange Commission ("SEC") on February 23, 2024 . Foot note disclosures to the interim unaudited consolidated financial statements which would substantially duplicate the disclosure contained in the footnotes to the audited consolidated financial statements have been omitted. The financial information included herein has been prepared in accordance with U.S. generally accepted accounting principles 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. 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. On April 28, 2024 (the “Signing Date”), HTLF entered into an Agreement and Plan of Merger (the “Merger Agreement”) with UMB Financial Corporation, a Missouri corporation (“UMB”) and Blue Sky Merger Sub Inc., a Delaware corporation and wholly owned subsidiary of UMB (“Blue Sky Merger Sub”). The Merger Agreement provides that, upon the terms and subject to the conditions set forth therein, (i) Blue Sky Merger Sub will merge with and into HTLF (the “Merger”), with HTLF surviving the Merger as a wholly owned subsidiary of UMB (the “Surviving Entity”) and (ii) immediately following the effective time of the Merger (the “Effective Time”) and as part of a single, integrated transaction, the Surviving Entity will merge with and into UMB (the “Second Merger”, and together with the Merger, the “Mergers”), with UMB surviving the Second Merger (the “Surviving Corporation”). On the day immediately following the closing date of the Mergers, UMB will cause HTLF’s wholly owned banking subsidiary, HTLF Bank, to merge with and into UMB’s wholly owned banking subsidiary, UMB Bank, National Association (the “Bank Merger”), with UMB Bank, National Association continuing as the surviving bank in the Bank Merger. The Merger Agreement was unanimously approved by the Board of Directors of each of HTLF and UMB. Upon the terms and subject to the conditions set forth in the Merger Agreement, at the Effective Time, each share of common stock, par value $1.00 per share, of HTLF (“HTLF Common Stock”) issued and outstanding immediately prior to the Effective Time, other than certain shares held by UMB or HTLF, will be converted into the right to receive 0.55 shares (the “Exchange Ratio,” and such shares, the “Merger Consideration”) of common stock, $1.00 par value, of UMB (“UMB Common Stock”) and cash in lieu of fractional shares. At the Effective Time, each share of 7.00% Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series E, par value $1.00 per share of HTLF (the “HTLF Preferred Stock”), issued and outstanding immediately before the Effective Time will be converted into the right to receive one share of a newly created series of preferred stock of UMB (“UMB Preferred Stock”) with such rights, preferences, privileges an d powers (including voting powers) as set forth in the Certificate of Designations attached as an exhibit to the Merger Agreement. Earnings Per Share Basic earnings per share is determined using net income available to common stockholders and weighted average common shares outstanding. Diluted earnings per share is computed by dividing net income available to common stockholders by the weighted average common shares and assumed incremental common shares issued. Amounts used in the determination of basic and diluted earnings per share for the three- and six- months ended June 30, 2024 and 2023, are shown in the table below, dollars and number of shares in thousands, except per share data: Three Months Ended 2024 2023 Net income attributable to HTLF $ 39,742 $ 49,416 Preferred dividends (2,012) (2,012) Net income available to common stockholders $ 37,730 $ 47,404 Weighted average common shares outstanding for basic earnings per share 42,918 42,696 Assumed incremental common shares issued upon vesting of outstanding restricted stock units 142 62 Weighted average common shares for diluted earnings per share 43,060 42,758 Earnings per common share — basic $ 0.88 $ 1.11 Earnings per common share — diluted $ 0.88 $ 1.11 Number of antidilutive common stock equivalents excluded from diluted earnings per share computation 88 59 Number of antidilutive stock options excluded from diluted earnings per share computation 53 221 Six Months Ended 2024 2023 Net income $ 91,449 $ 102,192 Preferred dividends (4,025) (4,025) Net income available to stockholders $ 87,424 $ 98,167 Weighted average common shares outstanding for basic earnings per share 42,862 42,655 Assumed incremental common shares issued upon vesting of outstanding restricted stock units 139 98 Weighted average common shares for diluted earnings per share 43,001 42,753 Earnings per common share — basic $ 2.03 $ 2.30 Earnings per common share — diluted $ 2.03 $ 2.30 Number of antidilutive common stock equivalents excluded from diluted earnings per share computation 6 95 Number of antidilutive stock options excluded from diluted earnings per share computation 53 62 Subsequent Events - HTLF has evaluated subsequent events that may require recognition or disclosure through the filing date of this Quarterly Report on Form 10-Q with the SEC. Subsequent to June 30, 2024, in July 2024, HTLF Bank closed on the sale of all nine Rocky Mountain Bank branches in Montana, including loans of $343.8 million and deposits of $531.8 million. The expected gain of $30 million will be realized in the third quarter of 2024. Effect of New Financial Accounting Standards ASU 2023-02 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)." ASU 2023-02 expands the permitted use of the proportional amortization method, which is currently only available to low-income housing tax credit investments, to other tax equity investments if certain conditions are met. Under the proportional amortization method, the initial cost of an investment is amortized in proportion to the income tax benefits received and both the amortization of the investment and the income tax benefits received are recognized as a component of income tax expense. This ASU was effective on January 1, 2024. HTLF has elected to use the proportional amortization method for investments in low-income housing projects. The amendments in this ASU do not have a material impact on the results of operations or financial position. ASU 2023-06 In October 2023, the FASB issued ASU 2023-06, "Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative." The amendments in this Update modify the disclosure or presentation requirements of a variety of Topics in the Codification. Certain of the amendments represent clarifications to, or technical corrections of, the current requirements. Each amendment in the ASU will only become effective if the SEC removes the related disclosure or presentation requirement from its existing regulations by June 30, 2027. The amendments in this ASU are not expected to have a material impact on the results of operations or financial position. ASU 2023-07 In November 2023, the FASB issued ASU 2023-07, " Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" to improve disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This update does not change how a public entity identifies its operating segments; however, it does require that an entity that has single reportable segment provide all the disclosures required by the amendments in this update. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. A public entity should apply the amendments in this update retrospectively to all prior periods presented in the consolidated financial statements. Early adoption is permitted. We currently have one reportable operating segment. This ASU will not impact our consolidated financial statements and will have minimal impact to our disclosures, requiring identification of the chief operating decision maker and the information used to make operating decisions and to allocate resources. ASU 2023-09 In December 2023, the FASB issued ASU 2023-09, “ Income Taxes (Topic 740): Improvements to Income Tax Disclosures” that require public business entities to annually disclose (1) specific categories in their rate reconciliation; (2) additional information for reconciling items that meet a quantitative threshold; (3) the amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes; (4) the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which the income taxes paid that meet a quantitative threshold; (5) income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign; and (6) income tax expense (or benefit) from continuing operations disaggregated by federal, state, and foreign. The ASU eliminates the requirement to disclose the nature and estimate of the range of the reasonably possible change in the unrecognized tax benefits balance in the next 12 months and to disclose the cumulative amount of each type of temporary difference when a deferred tax liability is not recognized because of the exceptions to comprehensive recognition of deferred taxes related to subsidiaries and corporate joint ventures. For public business entities, the amendments are effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments should be applied on a prospective basis, but retrospective application is permitted. HTLF is currently evaluating the impact of the standard and does not anticipate it will have a significant impact on the results of operations, financial position, or liquidity. Qualified Affordable Housing Investments HTLF uses the proportional amortization method for investments in low-income housing projects. HTLF’s net investments in low-income housing projects were $5.5 million and $5.9 million as of June 30, 2024, and December 31, 2023, respectively, and are included in other assets in the consolidated balance sheet. With respect to HTLF’s investment in low-income housing projects for the quarter ended June 30, 2024, we recognized income tax credits and other income tax benefits of $257,000 and $33,000, respectively. The total income tax benefits of $290,000 are partially offset in the “income taxes” item in the consolidated statements of income by $235,000 of investment amortization recognized, for a net income tax benefit of $55,000. The cash flows related to the total income tax benefits are presented in the following line items in the statement of cash flows: • $55,000 Net Income Tax Benefit, in the "Net income" line item in operating activities; • $235,000 Investment Amortization, in the "Other, net" line item, which is an adjustment to reconcile net income to cash from operating activities; • $257,000 Tax Credits, in the "Other, net" line item, which is also an adjustment to reconcile net income to cash from operating activities; and • $33,000 Other Tax Benefits Recognized, in the "Other, net" line item, which is also an adjustment to reconcile net income to cash from operating activities. There was no non-income-tax-related activity or impairment losses related to the low-income housing investments this reporting period. With respect to HTLF’s investment in low-income housing projects for the six months ended June 30, 2024, we recognized income tax credits and other income tax benefits of $513,000 and $66,000, respectively. The total income tax benefits of $579,000 are partially offset in the “income taxes” item in the consolidated statements of income by $470,000 of investment amortization recognized, for a net income tax benefit of $109,000. The cash flows related to the total income tax benefits are presented in the following line items in the statement of cash flows: • $109,000 Net Income Tax Benefit, in the "Net income" line item in operating activities; • $470,000 Investment Amortization, in the "Other, net" line item, which is an adjustment to reconcile net income to cash from operating activities; • $513,000 Tax Credits, in the "Other, net" line item, which is also an adjustment to reconcile net income to cash from operating activities; and • $66,000 Other Tax Benefits Recognized, in the "Other, net" line item, which is also an adjustment to reconcile net income to cash from operating activities. There was no non-income-tax-related activity or impairment losses related to the low-income housing investments this reporting period. |
SECURITIES
SECURITIES | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The amortized cost, gross unrealized gains and losses, and estimated fair values of debt securities available for sale and equity securities with a readily determinable fair value that are carried at fair value as of June 30, 2024, and December 31, 2023, are summarized in the table below, in thousands: Amortized Gross Gross Estimated June 30, 2024 U.S. treasuries $ 15,997 $ — $ (150) $ 15,847 U.S. agencies 12,729 — (129) 12,600 Obligations of states and political subdivisions 834,260 10 (109,805) 724,465 Mortgage-backed securities - agency 1,559,738 10 (230,460) 1,329,288 Mortgage-backed securities - non-agency 1,408,505 257 (72,622) 1,336,140 Commercial mortgage-backed securities - agency 71,770 — (11,269) 60,501 Commercial mortgage-backed securities - non-agency 397,330 — (9,391) 387,939 Asset-backed securities 193,022 — (16,640) 176,382 Corporate bonds 121,888 — (1,582) 120,306 Total debt securities 4,615,239 277 (452,048) 4,163,468 Equity securities with a readily determinable fair value 21,586 — — 21,586 Total $ 4,636,825 $ 277 $ (452,048) $ 4,185,054 December 31, 2023 U.S. treasuries $ 32,459 $ — $ (341) $ 32,118 U.S. agencies 14,724 — (194) 14,530 Obligations of states and political subdivisions 839,754 25 (98,534) 741,245 Mortgage-backed securities - agency 1,620,409 13 (226,793) 1,393,629 Mortgage-backed securities - non-agency 1,616,414 363 (87,649) 1,529,128 Commercial mortgage-backed securities - agency 76,076 — (11,288) 64,788 Commercial mortgage-backed securities - non-agency 526,974 — (12,116) 514,858 Asset-backed securities 232,140 — (14,770) 217,370 Corporate bonds 120,338 — (2,169) 118,169 Total debt securities 5,079,288 401 (453,854) 4,625,835 Equity securities with a readily determinable fair value 21,056 — — 21,056 Total $ 5,100,344 $ 401 $ (453,854) $ 4,646,891 The amortized cost, gross unrealized gains and losses and estimated fair values of held to maturity securities as of June 30, 2024, and December 31, 2023, are summarized in the table below, in thousands: Amortized Gross Gross Estimated June 30, 2024 Obligations of states and political subdivisions $ 842,980 $ 2,246 (35,710) $ 809,516 Total $ 842,980 $ 2,246 $ (35,710) $ 809,516 December 31, 2023 Obligations of states and political subdivisions $ 838,241 $ 3,622 $ (25,464) $ 816,399 Total $ 838,241 $ 3,622 $ (25,464) $ 816,399 As of June 30, 2024, and December 31, 2023, HTLF had $26.3 million and $28.0 million, respectively, of accrued interest receivable, which is included in other assets on the consolidated balance sheets. HTLF does not consider accrued interest receivable in the carrying amount of financial assets held at amortized cost basis or in the allowance for credit losses calculation. The amortized cost and estimated fair value of investment securities carried at fair value at June 30, 2024, by contractual maturity, are as follows, in thousands. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties. June 30, 2024 Amortized Cost Estimated Fair Value Due in 1 year or less $ 13,642 $ 13,509 Due in 1 to 5 years 57,666 56,991 Due in 5 to 10 years 28,145 24,841 Due after 10 years 885,421 777,877 Total debt securities 984,874 873,218 Mortgage and asset-backed securities 3,630,365 3,290,250 Equity securities with a readily determinable fair value 21,586 21,586 Total investment securities $ 4,636,825 $ 4,185,054 The amortized cost and estimated fair value of debt securities held to maturity at June 30, 2024, by contractual maturity, are as follows, in thousands. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties. June 30, 2024 Amortized Cost Estimated Fair Value Due in 1 year or less $ 9,259 $ 9,266 Due in 1 to 5 years 92,315 91,718 Due in 5 to 10 years 218,329 213,258 Due after 10 years 523,077 495,274 Total debt securities $ 842,980 $ 809,516 As of June 30, 2024, and December 31, 2023, securities with a carrying value of $2.57 billion and $2.63 billion, respectively, were pledged to secure public and trust deposits, short-term borrowings and for other purposes as required or permitted by law. Gross gains and losses realized related to the sales of securities carried at fair value for the three and six months ended June 30, 2024 and 2023, are summarized as follows, in thousands: Three Months Ended Six Months Ended 2024 2023 2024 2023 Proceeds from sales $ 97,836 $ 140,290 $ 97,836 $ 286,738 Gross security gains — 483 — 483 Gross security losses 10,556 808 10,556 1,912 The following table summarizes, in thousands, the amount of unrealized losses, defined as the amount by which cost or amortized cost exceeds fair value, and the related fair value of investments with unrealized losses in the securities portfolio as of June 30, 2024, and December 31, 2023. The investments were segregated into two categories: those that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 months or more. The reference point for determining how long an investment was in an unrealized loss position w as June 30, 2023, and December 31, 2022 , respectively. Debt securities available for sale Less than 12 months 12 months or longer Total Fair Unrealized Count Fair Unrealized Count Fair Unrealized Count June 30, 2024 U.S. treasuries $ 2,971 $ (25) 1 $ 12,876 $ (125) 3 $ 15,847 $ (150) 4 U.S. agencies — — — 12,600 (129) 4 12,600 (129) 4 Obligations of states and political subdivisions 1,679 (24) 3 718,773 (109,781) 148 720,452 (109,805) 151 Mortgage-backed securities - agency — — — 1,328,609 (230,460) 164 1,328,609 (230,460) 164 Mortgage-backed securities - non-agency 259,143 (16,261) 6 839,345 (56,361) 37 1,098,488 (72,622) 43 Commercial mortgage-backed securities - agency — — — 60,501 (11,269) 15 60,501 (11,269) 15 Commercial mortgage-backed securities - non-agency — — — 380,125 (9,391) 14 380,125 (9,391) 14 Asset-backed securities 120,432 (11,360) 4 55,950 (5,280) 5 176,382 (16,640) 9 Corporate bonds — — — 57,611 (1,582) 8 57,611 (1,582) 8 Total temporarily impaired securities $ 384,225 $ (27,670) 14 $ 3,466,390 $ (424,378) 398 $ 3,850,615 $ (452,048) 412 December 31, 2023 U.S. treasuries $ 2,985 $ (12) 1 $ 26,138 $ (329) 3 $ 29,123 $ (341) 4 U.S. agencies — — — 14,530 (194) 4 14,530 (194) 4 Obligations of states and political subdivisions 1,440 (65) 1 736,653 (98,469) 150 738,093 (98,534) 151 Mortgage-backed securities - agency 194 (2) 2 1,392,769 (226,791) 166 1,392,963 (226,793) 168 Mortgage-backed securities - non-agency 415,934 (24,568) 12 902,291 (63,081) 35 1,318,225 (87,649) 47 Commercial mortgage-backed securities - agency — — — 64,788 (11,288) 17 64,788 (11,288) 17 Commercial mortgage-backed securities - non-agency — — — 507,044 (12,116) 16 507,044 (12,116) 16 Asset-backed securities 148,063 (9,723) 4 69,307 (5,047) 7 217,370 (14,770) 11 Corporate bonds 61,031 (111) 1 57,138 (2,058) 8 118,169 (2,169) 9 Total temporarily impaired securities $ 629,647 $ (34,481) 21 $ 3,770,658 $ (419,373) 406 $ 4,400,305 $ (453,854) 427 Securities held to maturity Less than 12 months 12 months or longer Total Fair Unrealized Count Fair Unrealized Count Fair Unrealized Count June 30, 2024 Obligations of states and political subdivisions $ 27,460 $ (472) 9 $ 704,626 $ (35,238) 147 $ 732,086 $ (35,710) 156 Total temporarily impaired securities $ 27,460 (472) 9 $ 704,626 $ (35,238) 147 $ 732,086 (35,710) 156 December 31, 2023 Obligations of states and political subdivisions $ 145,471 $ (3,706) 23 $ 569,691 $ (21,758) 126 $ 715,162 $ (25,464) 149 Total temporarily impaired securities $ 145,471 $ (3,706) 23 $ 569,691 $ (21,758) 126 $ 715,162 $ (25,464) 149 HTLF reviews each security in the investment securities portfolio on a quarterly basis for potential credit losses, taking into consideration numerous factors, and the relative significance of any single factor can vary by security. Some factors HTLF may consider include changes in security ratings, financial condition of the issuer, and security and industry specific economic conditions. With regard to debt securities, HTLF may also evaluate payment structure, whether there are defaulted payments or expected defaults, prepayment speeds and the value of any underlying collateral. For certain debt securities in unrealized loss positions, HTLF prepares cash flow analyses to compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. The unrealized losses on HTLF's commercial mortgage, mortgage and asset-backed securities are the result of changes in market interest rates or widening of market spreads subsequent to HTLF's purchase of the securities. The losses are not related to concerns regarding the underlying credit of the issuers or the underlying collateral. It is expected that the securities will not be settled at a price less than the amortized cost of the investment. Because the decline in fair value is attributable to changes in interest rates or widening market spreads and not credit quality, and because, as of June 30, 2024, HTLF has the intent and ability to hold these investments until a market price recovery or to maturity and does not believe it will be required to sell the securities before maturity, no credit losses were recognized on these securities during the three and six months ended June 30, 2024 and 2023. The unrealized losses on HTLF's obligations of states and political subdivisions available for sale are the result of changes in market interest rates or widening of market spreads subsequent to the initial purchase of the securities. Management monitors the published credit ratings of these securities and the stability of the underlying municipalities. Because the declines in fair value are attributable to changes in interest rates or widening market spreads due to insurance company downgrades and not underlying credit quality, and because, as of June 30, 2024, HTLF has the intent and ability to hold these investments until a market price recovery or to maturity and does not believe it will be required to sell the securities before maturity, no credit losses were recognized on these securities during the three and six months ended June 30, 2024 and 2023. The following table summarizes, in thousands, the carrying amount of HTLF's held to maturity debt securities by investment rating as of June 30, 2024, and December 31, 2023, which are updated quarterly and used to monitor the credit quality of the securities: June 30, 2024 December 31, 2023 Rating AAA $ 101,620 $ 88,550 AA, AA+, AA- 565,305 583,816 A+, A, A- 151,225 139,658 BBB 20,288 20,133 Not Rated 4,542 6,084 Total $ 842,980 $ 838,241 Included in other investments were shares of stock in Federal Home Loan Bank (the "FHLB") at an amortized cost of $4.1 million at June 30, 2024, and $25.8 million at December 31, 2023. HTLF Bank is required by federal law to maintain FHLB stock as a member of the FHLB. These equity securities are "restricted" in that they can only be sold back to the respective institutions from which they were acquired or another member institution at par. Therefore, the FHLB stock is less liquid than other marketable equity securities, and the fair value approximates amortized cost. HTLF considers its FHLB stock as a long-term investment that provides access to competitive products and liquidity. HTLF evaluates impairment in these investments based on the ultimate recoverability of the par value and, at June 30, 2024, and December 31, 2023, did not consider the investments to be impaired. |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
LOANS | LOANS Loans as of June 30, 2024, and December 31, 2023, were as follows, in thousands: June 30, 2024 December 31, 2023 Loans receivable held to maturity: Commercial and industrial $ 3,541,239 $ 3,652,047 Paycheck Protection Program ("PPP") 1,864 2,777 Owner occupied commercial real estate 2,555,964 2,638,175 Non-owner occupied commercial real estate 2,434,258 2,553,711 Real estate construction 1,082,726 1,011,716 Agricultural and agricultural real estate 802,958 919,184 Residential real estate 733,401 797,829 Consumer 455,899 493,206 Total loans receivable held to maturity 11,608,309 12,068,645 Allowance for credit losses (126,861) (122,566) Loans receivable, net $ 11,481,448 $ 11,946,079 As of June 30, 2024, and December 31, 2023, HTLF had $64.4 million and $65.4 million, respectively, of accrued interest receivable, which is included in other assets on the consolidated balance sheets. HTLF does not consider accrued interest receivable in the allowance for credit losses calculation. The following table shows the balance in the allowance for credit losses at June 30, 2024, and December 31, 2023, and the related loan balances, disaggregated on the basis of measurement methodology, in thousands. If a loan no longer shares similar risk characteristics with other loans in the pool, it is evaluated on an individual basis and is not included in the collective evaluation. Lending relationships on nonaccrual with $500,000 or more of total exposure are individually assessed using a collateral dependency calculation. All other loans are collectively evaluated for losses. Allowance For Credit Losses Gross Loans Receivable Held to Maturity Individually Evaluated for Credit Losses Collectively Evaluated for Credit Losses Total Loans Individually Evaluated for Credit Losses Loans Collectively Evaluated for Credit Losses Total June 30, 2024 Commercial and industrial $ 22,729 $ 22,071 $ 44,800 $ 42,667 $ 3,498,572 $ 3,541,239 PPP — — — — 1,864 1,864 Owner occupied commercial real estate 3 14,711 14,714 12,582 2,543,382 2,555,964 Non-owner occupied commercial real estate — 13,697 13,697 — 2,434,258 2,434,258 Real estate construction 22 32,188 32,210 697 1,082,029 1,082,726 Agricultural and agricultural real estate 6,773 2,132 8,905 31,484 771,474 802,958 Residential real estate — 5,036 5,036 727 732,674 733,401 Consumer — 7,499 7,499 — 455,899 455,899 Total $ 29,527 $ 97,334 $ 126,861 $ 88,157 $ 11,520,152 $ 11,608,309 December 31, 2023 Commercial and industrial $ 18,425 $ 22,254 $ 40,679 $ 41,847 $ 3,610,200 $ 3,652,047 PPP — — — — 2,777 2,777 Owner occupied commercial real estate — 17,156 17,156 30,400 2,607,775 2,638,175 Non-owner occupied commercial real estate — 17,249 17,249 — 2,553,711 2,553,711 Real estate construction 56 28,717 28,773 697 1,011,019 1,011,716 Agricultural and agricultural real estate 1,932 2,360 4,292 6,700 912,484 919,184 Residential real estate — 5,845 5,845 741 797,088 797,829 Consumer — 8,572 8,572 — 493,206 493,206 Total $ 20,413 $ 102,153 $ 122,566 $ 80,385 $ 11,988,260 $ 12,068,645 The following tables show the amortized cost basis as of June 30, 2024 and June 30, 2023, of the loans modified during the three and six months ended June 30, 2024 and June 30, 2023, to borrowers experiencing financial difficulty by loan category and type of concession granted, dollars in thousands. Loan Modifications Made to Borrowers Experiencing Financial Difficulty Term Extension Term Extension and Interest Only Payments Term Extension and Interest Rate Reduction For the Three Months Ended June 30, 2024 Amortized % of Loan Amortized % of Loan Amortized % of Loan Non-owner occupied commercial real estate $ 614 0.03 % $ — — % $ — — % Real estate construction — — — — 3,116 0.29 Residential real estate 1,348 0.18 — — — — Consumer 169 0.04 — — — — Total $ 2,131 0.02 % $ — — % $ 3,116 0.03 % Loan Modifications Made to Borrowers Experiencing Financial Difficulty Term Extension Term Extension and Interest Only Payments Term Extension and Interest Rate Reduction For the Three Months Ended June 30, 2023 Amortized % of Loan Amortized % of Loan Amortized % of Loan Commercial $ 1,411 0.04 % $ — — % $ — — % Agricultural and agricultural real estate 1,354 0.16 — — — — Total $ 2,765 0.02 % $ — — % $ — — % Loan Modifications Made to Borrowers Experiencing Financial Difficulty Term Extension Term Extension and Term Extension and Interest Rate Reduction For the Six Months Ended June 30, 2024 Amortized % of Loan Amortized % of Loan Amortized % of Loan Commercial $ 266 0.01 % $ — — % $ — — % Non-owner occupied commercial real estate 614 0.03 — 0 — — — Real estate construction 739 0.07 — — 3,116 0.29 Residential real estate 1,348 0.18 — — — — Consumer 169 0.04 — — Total $ 3,136 0.03 % $ — — % $ 3,116 0.03 % Loan Modifications Made to Borrowers Experiencing Financial Difficulty Term Extension Term Extension and Term Extension and Interest Rate Reduction For the Six Months Ended June 30, 2023 Amortized % of Loan Amortized % of Loan Amortized % of Loan Commercial $ 5,073 0.14 % $ — — % $ — — % Owner occupied commercial real estate — — 5,043 0.21 — — Real estate construction 1,477 0.15 — — — — Agricultural and agricultural real estate 1,354 0.16 — — — — Residential real estate 752 0.09 — — — — Total $ 8,656 0.07 % $ 5,043 0.04 % $ — — % The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty in the six months ending June 30, 2024 and June 30, 2023. For the Six Months Ended June 30, 2024 Weighted Average Weighted Average Weighted Average Term Extension and Interest Rate Reduction (months) Commercial and industrial 6 0 0 Non-owner occupied commercial real estate 4 0 25 Real estate construction 4 0 0 Residential real estate 2 0 0 Consumer 86 0 0 For the Six Months Ended June 30, 2023 Weighted Average Weighted Average Weighted Average Term Extension and Interest Rate Reduction (months) Commercial and industrial 9 0 0 Owner occupied commercial real estate 0 12 0 Real estate construction 6 0 0 Agricultural and agricultural real estate 9 0 0 Residential real estate 12 0 0 At June 30, 2024, there were no unfunded commitments to extend credit to the borrowers experiencing financial difficulty. HTLF had no loans to borrowers experiencing financial difficulty that had a payment default during the three and six months ended June 30, 2024, that had been modified in the twelve-month period prior to the default. HTLF closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following tables show the performance of loans that have been modified in the six months ended June 30, 2024 and June 30, 2023, dollars in thousands. Accruing Loans 30-59 60-89 90 Days or Total Past Due Current Nonaccrual June 30, 2024 Commercial and industrial $ — $ — $ — $ — $ 267 $ — Non-owner occupied commercial real estate — — — — 614 — Real estate construction — — — — 3,855 — Residential real estate — — — — 1,347 — Consumer — — — — — 169 Total $ — $ — $ — $ — $ 6,083 $ 169 Accruing Loans 30-59 60-89 90 Days or Total Past Due Current Nonaccrual June 30, 2023 Commercial and industrial $ — $ — $ — $ — $ 5,073 $ — Owner occupied commercial real estate — — — — 5,043 — Real estate construction — — — — — 1,477 Agricultural and agricultural real estate — — — — 1,354 — Residential real estate — — — — — 752 Total $ — $ — $ — $ — $ 11,470 $ 2,229 HTLF's internal rating system is a series of grades reflecting management's credit risk assessment, based on its analysis of the borrower's financial condition. The "pass" category consists of all loans that are not in the "nonpass" category and consists of a range of loan grades that reflect increasing, though still acceptable, risk. Movement of risk through the various grade levels in the pass category is monitored for early identification of credit deterioration and risk rating migration analysis. The "nonpass" category consists of watch, substandard, doubtful and loss rated loans. The "watch" rating is attached to loans where the borrower exhibits negative trends in financial circumstances due to borrower specific or systemic conditions that, if left uncorrected, threaten the borrower's capacity to meet its debt obligations. The borrower is believed to have sufficient financial flexibility to react to and resolve its negative financial situation. These credits are closely monitored for improvement or deterioration. The "substandard" rating is assigned to loans that are inadequately protected by the current net worth and repaying capacity of the borrower and that may be further at risk due to deterioration in the value of collateral pledged. Well-defined weaknesses jeopardize liquidation of the debt. These loans are still considered collectible; however, a distinct possibility exists that HTLF will sustain some loss if deficiencies are not corrected. Substandard loans may exhibit some or all of the following weaknesses: deteriorating financial trends, insufficient earnings, inadequate debt service capacity, excessive debt and/or lack of liquidity. The "doubtful" rating is assigned to loans where identified weaknesses in the borrowers' ability to repay these loans make collection or liquidation in full, on the basis of existing facts, conditions and values, highly questionable and improbable. These borrowers are usually in default, lack liquidity, capital, and the resources necessary to remain as an operating entity. Specific pending events, such as capital injections, liquidations or perfection of liens on additional collateral, may strengthen the credit, thus deferring the rating of the loan as "loss" until the exact status of the loan can be determined. The "loss" rating is assigned to loans considered uncollectible. HTLF had no loans classified as "loss" or "doubtful" as of June 30, 2024, and December 31, 2023. The following table shows the risk category of loans by loan category, year of origination and charge-offs as of June 30, 2024, in thousands: As of June 30, 2024 Amortized Cost Basis of Term Loans by Year of Origination 2024 2023 2022 2021 2020 2019 and Prior Revolving Total Commercial and industrial Pass $ 295,000 $ 512,146 $ 618,107 $ 261,964 $ 154,860 $ 358,689 $ 1,068,196 $ 3,268,962 Watch 13,856 28,148 32,584 18,695 833 8,763 81,055 183,934 Substandard 312 6,131 16,329 1,723 3,751 9,041 51,056 88,343 Commercial and industrial total $ 309,168 $ 546,425 $ 667,020 $ 282,382 $ 159,444 $ 376,493 $ 1,200,307 $ 3,541,239 Commercial and industrial charge-offs $ — $ 8 $ 1,127 $ 784 $ 3,283 $ 30 $ 2,979 $ 8,211 PPP Pass $ — $ — $ — $ 1,610 $ 31 $ — $ — $ 1,641 Watch — — — 223 — — — 223 Substandard — — — — — — — — PPP total $ — $ — $ — $ 1,833 $ 31 $ — $ — $ 1,864 PPP charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Owner occupied commercial real estate Pass $ 110,750 $ 425,238 $ 510,666 $ 711,407 $ 200,668 $ 368,105 $ 42,998 $ 2,369,832 Watch 2,788 4,983 36,793 11,004 2,920 39,109 — 97,597 Substandard — 23,401 32,536 4,913 20,499 7,186 — 88,535 Owner occupied commercial real estate total $ 113,538 $ 453,622 $ 579,995 $ 727,324 $ 224,087 $ 414,400 $ 42,998 $ 2,555,964 Owner occupied commercial real estate charge-offs $ — $ — $ 87 $ — $ 248 $ 62 $ — $ 397 Non-owner occupied commercial real estate Pass $ 75,332 $ 423,879 $ 648,769 $ 401,764 $ 181,074 $ 434,109 $ 16,812 $ 2,181,739 Watch 3,943 67,195 44,057 4,601 4,097 67,735 — 191,628 Substandard — — 135 8,538 — 52,218 — 60,891 Non-owner occupied commercial real estate total $ 79,275 $ 491,074 $ 692,961 $ 414,903 $ 185,171 $ 554,062 $ 16,812 $ 2,434,258 Non-owner occupied commercial real estate charge-offs $ — $ — $ — $ — $ — $ — $ — $ — As of June 30, 2024 Amortized Cost Basis of Term Loans by Year of Origination 2024 2023 2022 2021 2020 2019 and Prior Revolving Total Real estate construction Pass $ 64,091 $ 323,350 $ 404,646 $ 104,823 $ 7,544 $ 10,269 $ 7,324 $ 922,047 Watch — 917 20,576 44,063 71 24,656 — 90,283 Substandard 3,116 9,375 57,650 88 — 81 86 70,396 Real estate construction total $ 67,207 $ 333,642 $ 482,872 $ 148,974 $ 7,615 $ 35,006 $ 7,410 $ 1,082,726 Real estate construction charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Agricultural and agricultural real estate Pass $ 50,760 $ 113,573 $ 178,283 $ 98,886 $ 49,712 $ 58,360 $ 204,938 $ 754,512 Watch 755 3,095 1,291 420 152 73 6,648 12,434 Substandard 526 181 19,399 2,040 1,582 12,284 — 36,012 Agricultural and agricultural real estate total $ 52,041 $ 116,849 $ 198,973 $ 101,346 $ 51,446 $ 70,717 $ 211,586 $ 802,958 Agricultural and agricultural real estate charge-offs $ — $ — $ 52 $ — $ 8 $ 167 $ 648 $ 875 Residential real estate Pass $ 26,824 $ 61,048 $ 155,494 $ 214,982 $ 64,465 $ 173,439 $ 19,687 $ 715,939 Watch 2 534 998 1,452 1,829 3,537 250 8,602 Substandard — 727 140 3,222 366 4,405 — 8,860 Residential real estate total $ 26,826 $ 62,309 $ 156,632 $ 219,656 $ 66,660 $ 181,381 $ 19,937 $ 733,401 Residential real estate charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer Pass $ 18,993 $ 36,800 $ 50,951 $ 29,240 $ 3,133 $ 6,709 $ 301,963 $ 447,789 Watch 49 901 94 203 17 802 2,546 4,612 Substandard 334 51 317 372 108 1,377 939 3,498 Consumer total $ 19,376 $ 37,752 $ 51,362 $ 29,815 $ 3,258 $ 8,888 $ 305,448 $ 455,899 Consumer charge-offs $ 10 $ 51 $ 92 $ 62 $ 13 $ 49 $ 1,721 $ 1,998 Total Pass $ 641,750 $ 1,896,034 $ 2,566,916 $ 1,824,676 $ 661,487 $ 1,409,680 $ 1,661,918 $ 10,662,461 Total Watch 21,393 105,773 136,393 80,661 9,919 144,675 90,499 589,313 Total Substandard 4,288 39,866 126,506 20,896 26,306 86,592 52,081 356,535 Total Loans $ 667,431 $ 2,041,673 $ 2,829,815 $ 1,926,233 $ 697,712 $ 1,640,947 $ 1,804,498 $ 11,608,309 Total charge-offs $ 10 $ 59 $ 1,358 $ 846 $ 3,552 $ 308 $ 5,348 $ 11,481 The following table shows the risk category of loans by loan category and year of origination as of December 31, 2023, in thousands. As of December 31, 2023 Amortized Cost Basis of Term Loans by Year of Origination 2023 2022 2021 2020 2019 2018 and Prior Revolving Total Commercial and industrial Pass $ 608,030 $ 779,218 $ 333,900 $ 187,406 $ 78,455 $ 327,775 $ 1,159,397 $ 3,474,181 Watch 20,694 19,788 257 3,631 2,398 2,953 28,749 78,470 Substandard 20,171 12,658 2,636 5,447 18,535 7,489 32,460 99,396 Commercial and industrial total $ 648,895 $ 811,664 $ 336,793 $ 196,484 $ 99,388 $ 338,217 $ 1,220,606 $ 3,652,047 Commercial and industrial charge-offs $ 245 $ 794 $ 680 $ 1,425 $ 563 $ 1,949 $ 2,966 $ 8,622 PPP Pass $ — $ — $ 2,591 $ 50 $ — $ — $ — $ 2,641 Watch — — 89 — — — — 89 Substandard — — 47 — — — — 47 PPP total $ — $ — $ 2,727 $ 50 $ — $ — $ — $ 2,777 PPP charge-offs $ — $ — $ — $ — $ — $ — $ — $ — As of December 31, 2023 Amortized Cost Basis of Term Loans by Year of Origination 2023 2022 2021 2020 2019 2018 and Prior Revolving Total Owner occupied commercial real estate Pass $ 443,683 $ 547,898 $ 799,978 $ 225,257 $ 225,405 $ 224,608 $ 41,072 $ 2,507,901 Watch 8,052 25,947 13,114 2,662 8,115 7,553 — 65,443 Substandard 31,904 10,489 2,268 11,609 6,390 2,171 — 64,831 Owner occupied commercial real estate total $ 483,639 $ 584,334 $ 815,360 $ 239,528 $ 239,910 $ 234,332 $ 41,072 $ 2,638,175 Owner occupied commercial real estate charge-offs $ — $ 802 $ — $ 5 $ — $ 63 $ — $ 870 Non-owner occupied commercial real estate Pass $ 480,683 $ 656,824 $ 423,420 $ 203,330 $ 262,541 $ 251,499 $ 26,978 $ 2,305,275 Watch 71,400 34,651 8,237 3,834 27,345 57,083 — 202,550 Substandard 5,043 952 1,391 — 4,238 34,262 — 45,886 Non-owner occupied commercial real estate total $ 557,126 $ 692,427 $ 433,048 $ 207,164 $ 294,124 $ 342,844 $ 26,978 $ 2,553,711 Non-owner occupied commercial real estate charge-offs $ — $ 52 $ — $ 29 $ 399 $ 147 $ — $ 627 Real estate construction Pass $ 283,519 $ 468,646 $ 176,604 $ 9,889 $ 11,048 $ 3,405 $ 6,486 $ 959,597 Watch 629 33,220 9,418 72 — 65 — 43,404 Substandard — 8,522 — 107 — — 86 8,715 Real estate construction total $ 284,148 $ 510,388 $ 186,022 $ 10,068 $ 11,048 $ 3,470 $ 6,572 $ 1,011,716 Real estate construction charge-offs $ 284 $ — $ — $ 32 $ — $ — $ — $ 316 Agricultural and agricultural real estate Pass $ 152,665 $ 208,375 $ 114,798 $ 67,006 $ 28,247 $ 43,663 $ 260,941 $ 875,695 Watch 2,245 16,257 293 622 70 349 427 20,263 Substandard 12 7,616 1,649 4 855 12,591 499 23,226 Agricultural and agricultural real estate total $ 154,922 $ 232,248 $ 116,740 $ 67,632 $ 29,172 $ 56,603 $ 261,867 $ 919,184 Agricultural and agricultural real estate charge-offs $ — $ — $ — $ 9 $ — $ 1 $ 5,309 $ 5,319 Residential real estate Pass $ 71,470 $ 177,564 $ 241,362 $ 73,029 $ 42,526 $ 155,899 $ 19,534 $ 781,384 Watch 171 973 945 659 158 4,845 — 7,751 Substandard 741 150 3,400 464 290 3,649 — 8,694 Residential real estate total $ 72,382 $ 178,687 $ 245,707 $ 74,152 $ 42,974 $ 164,393 $ 19,534 $ 797,829 Residential real estate charge-offs $ — $ 59 $ 124 $ — $ — $ — $ — $ 183 Consumer Pass $ 45,595 $ 62,900 $ 35,459 $ 7,731 $ 3,663 $ 6,109 $ 324,218 $ 485,675 Watch 730 84 694 21 41 644 2,060 4,274 Substandard 80 308 401 75 159 1,769 465 3,257 Consumer total $ 46,405 $ 63,292 $ 36,554 $ 7,827 $ 3,863 $ 8,522 $ 326,743 $ 493,206 Consumer charge-offs $ 2 $ 246 $ 154 $ 27 $ 19 $ 112 $ 3,117 $ 3,677 Total Pass $ 2,085,645 $ 2,901,425 $ 2,128,112 $ 773,698 $ 651,885 $ 1,012,958 $ 1,838,626 $ 11,392,349 Total Watch 103,921 130,920 33,047 11,501 38,127 73,492 31,236 422,244 Total Substandard 57,951 40,695 11,792 17,706 30,467 61,931 33,510 254,052 Total Loans $ 2,247,517 $ 3,073,040 $ 2,172,951 $ 802,905 $ 720,479 $ 1,148,381 $ 1,903,372 $ 12,068,645 Total charge-offs $ 531 $ 1,953 $ 958 $ 1,527 $ 981 $ 2,272 $ 11,392 $ 19,614 Included in the nonpass loans at June 30, 2024, and December 31, 2023, were $223,000 and $136,000, respectively, of nonpass PPP loans as a result of risk ratings on non-PPP related credits. HTLF's risk rating methodology assigns a risk rating to the whole lending relationship. HTLF has no allowance recorded related to the PPP loans because of the 100% government guarantee through the United States Small Business Administration. Changes in credit risk are monitored on a continuous basis as part of relationship management, and changes in risk ratings are made when credit quality improves or deteriorates in accordance with HTLF's credit risk rating framework. All individually assessed loans are reviewed at least annually. As of June 30, 2024, HTLF had $1.1 million of loans secured by residential real estate property that were in the process of foreclosure. The following table sets forth information regarding accruing and nonaccrual loans at June 30, 2024, and December 31, 2023, in thousands: Accruing Loans 30-59 60-89 90 Days or Total Current Nonaccrual Total Loans June 30, 2024 Commercial and industrial $ 7,061 $ 2,470 $ 251 $ 9,782 $ 3,483,319 $ 48,138 $ 3,541,239 PPP — — — — 1,864 — 1,864 Owner occupied commercial real estate 3,471 73 — 3,544 2,539,381 13,039 2,555,964 Non-owner occupied commercial real estate — — — — 2,434,123 135 2,434,258 Real estate construction 9,519 1,863 — 11,382 1,070,480 864 1,082,726 Agricultural and agricultural real estate 245 18 349 612 768,281 34,065 802,958 Residential real estate 1,321 205 — 1,526 726,372 5,503 733,401 Consumer 2,266 230 63 2,559 451,961 1,379 455,899 Total loans receivable held to maturity $ 23,883 $ 4,859 $ 663 $ 29,405 $ 11,475,781 $ 103,123 $ 11,608,309 December 31, 2023 Commercial and industrial $ 1,738 $ 126 $ 2,203 $ 4,067 $ 3,601,165 $ 46,815 $ 3,652,047 PPP 94 53 — 147 2,630 — 2,777 Owner occupied commercial real estate 205 2,664 74 2,943 2,603,640 31,592 2,638,175 Non-owner occupied commercial real estate 875 — — 875 2,552,469 367 2,553,711 Real estate construction 332 — — 332 1,010,601 783 1,011,716 Agricultural and agricultural real estate 121 — 12 133 909,841 9,210 919,184 Residential real estate 2,082 273 21 2,376 790,367 5,086 797,829 Consumer 2,257 150 197 2,604 489,029 1,573 493,206 Total loans receivable held to maturity $ 7,704 $ 3,266 $ 2,507 $ 13,477 $ 11,959,742 $ 95,426 $ 12,068,645 Loans delinquent 30 to 89 days as a percent of total loans were 0.25% at June 30, 2024, compared to 0.09% at December 31, 2023. HTLF recognized $0 of interest income on nonaccrual loans during the three and six months ended June 30, 2024 and June 30, 2023. As of June 30, 2024, and December 31, 2023, HTLF had $28.1 million and $52.5 million of nonaccrual loans with no related allowance, respectively. |
ALLOWANCE FOR CREDIT LOSSES
ALLOWANCE FOR CREDIT LOSSES | 6 Months Ended |
Jun. 30, 2024 | |
Loans and Leases Receivable Disclosure [Abstract] | |
ALLOWANCE FOR CREDIT LOSSES | ALLOWANCE FOR CREDIT LOSSES Changes in the allowance for credit losses on loans for the three- and six- months ended June 30, 2024, and June 30, 2023, were as follows, in thousands: Commercial Owner Occupied Commercial Non-Owner Occupied Commercial Real Estate Real Estate Agricultural and Agricultural Residential Consumer Total Balance at March 31, 2024 $ 41,105 $ 14,395 $ 15,770 $ 34,925 $ 5,108 $ 5,155 $ 7,476 $ 123,934 Charge-offs (5,914) (397) — — (608) — (469) (7,388) Recoveries 170 — — — 9 70 329 578 Provision (benefit) 9,439 716 (2,073) (2,715) 4,396 (189) 163 9,737 Balance at June 30, 2024 $ 44,800 $ 14,714 $ 13,697 $ 32,210 $ 8,905 $ 5,036 $ 7,499 $ 126,861 Commercial Owner Occupied Commercial Non-Owner Occupied Commercial Real Estate Real Estate Agricultural and Agricultural Residential Consumer Total Balance at December 31, 2023 $ 40,679 $ 17,156 $ 17,249 $ 28,773 $ 4,292 $ 5,845 $ 8,572 $ 122,566 Charge-offs (8,211) (397) — — (875) — (1,998) (11,481) Recoveries 732 — — — 9 105 1,525 2,371 Provision (benefit) 11,600 (2,045) (3,552) 3,437 5,479 (914) (600) 13,405 Balance at June 30, 2024 $ 44,800 $ 14,714 $ 13,697 $ 32,210 $ 8,905 $ 5,036 $ 7,499 $ 126,861 Commercial Owner Occupied Commercial Non-Owner Occupied Commercial Real Estate Real Estate Agricultural and Agricultural Residential Consumer Total Balance at March 31, 2023 $ 31,823 $ 14,151 $ 17,062 $ 30,138 $ 2,546 $ 7,564 $ 9,423 $ 112,707 Charge-offs (3,686) (5) (29) — (5,309) (59) (525) (9,613) Recoveries 118 — — 2 1 — 154 275 Provision (benefit) 1,141 563 943 (1,894) 6,273 139 664 7,829 Balance at June 30, 2023 $ 29,396 $ 14,709 $ 17,976 $ 28,246 $ 3,511 $ 7,644 $ 9,716 $ 111,198 Commercial Owner Occupied Commercial Non-Owner Occupied Commercial Real Estate Real Estate Agricultural and Agricultural Residential Consumer Total Balance at December 31, 2022 $ 29,071 $ 13,948 $ 16,539 $ 29,998 $ 2,634 $ 7,711 $ 9,582 $ 109,483 Charge-offs (5,137) (19) (29) — (5,309) (59) (1,211) (11,764) Recoveries 1,840 112 — 19 11 19 1,465 3,466 Provision (benefit) 3,622 668 1,466 (1,771) 6,175 (27) (120) 10,013 Balance at June 30, 2023 $ 29,396 $ 14,709 $ 17,976 $ 28,246 $ 3,511 $ 7,644 $ 9,716 $ 111,198 Management allocates the allowance for credit losses by pools of risk within each loan portfolio. The total allowance for credit losses is available to absorb losses from any segment of the loan portfolio. The provision expense in the six months ended June 30, 2024 was reduced by $2.6 million due to the transfer of $348.8 million of Rocky Mountain Bank loans to held for sale. Changes in the allowance for credit losses for unfunded commitments for the three and six months ended June 30, 2024, and June 30, 2023, were as follows: For the Three Months Ended June 30, 2024 2023 Balance at March 31, $ 13,786 $ 21,086 Provision (benefit) (729) (2,450) Balance at June 30, $ 13,057 $ 18,636 For the Six Months Ended June 30, 2024 2023 Balance at December 31, $ 16,468 $ 20,196 Provision (benefit) (3,411) (1,560) Balance at June 30, $ 13,057 $ 18,636 |
GOODWILL AND CORE DEPOSIT INTAN
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS | GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS HTLF had goodwill of $576.0 million at both June 30, 2024, and December 31, 2023. HTLF conducts an annual internal assessment of the goodwill both at the consolidated level and at the reporting unit level as of September 30, as well as when required due to triggering events related to the uncertainty of the value of the goodwill on HTLF's balance sheet. HTLF conducted its annual internal assessment of the goodwill at HTLF or HTLF's reporting units as of September 30. There was no goodwill impairment as of the most recent assessment. The gross carrying amount of other intangible assets consisted of core deposit intangibles and the associated accumulated amortization at June 30, 2024, and December 31, 2023, are presented in the table below, in thousands: June 30, 2024 December 31, 2023 Gross Accumulated Net Gross Accumulated Net Amortizing intangible assets: Core deposit intangibles $ 101,185 $ 85,684 $ 15,501 $ 101,185 $ 82,770 $ 18,415 Total $ 101,185 $ 85,684 $ 15,501 $ 101,185 $ 82,770 $ 18,415 The following table shows the estimated future amortization expense for amortizable intangible assets, in thousands: Core Deposit Intangibles Six months ending December 31, 2024 $ 2,677 Year ending December 31, 2025 4,700 2026 3,533 2027 2,601 2028 1,287 2029 466 Thereafter 237 Total $ 15,501 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS HTLF uses derivative financial instruments as part of its interest rate risk management strategy, which may include interest rate swaps, fair value hedges, risk participation agreements, caps, floors, and collars. HTLF's current strategy includes the use of interest rate swaps as well as back-to-back loan swaps to assist customers in managing their interest rate risk while executing offsetting interest rate swaps with dealer counterparties. HTLF's objectives are to add stability to its net interest margin and to manage its exposure to movements in interest rates. The contract or notional amount of a derivative is used to determine, along with the other terms of the derivative, the amounts to be exchanged between the counterparties. HTLF is exposed to credit risk in the event of nonperformance by counterparties to financial instruments. HTLF minimizes this risk by entering into derivative contracts that contain collateral posting provisions with counterparties that meet HTLF’s credit standards. HTLF has not experienced any losses from nonperformance by these counterparties. HTLF monitors counterparty risk in accordance with the provisions of ASC 815. HTLF was required to post $591,000 of collateral at June 30, 2024, compared to $27.7 million as of December 31, 2023, related to derivative financial instruments. HTLF's counterparties were required to pledge $104.5 million at June 30, 2024, compared to $44.8 million at December 31, 2023. HTLF's derivative and hedging instruments are recorded at fair value on the consolidated balance sheets. See Note 7, "Fair Value," for additional fair value information and disclosures. Cash Flow Hedges In 2021, one interest rate swap terminated, and the debt was converted to variable rate subordinated debentures. HTLF recognized all remaining cash payments related to the terminated derivatives in the first quarter of 2024 and reclassified the remaining cash payments from accumulated other comprehensive income (loss) to interest expense. In the first quarter of 2023, HTLF terminated its interest rate swap agreement, which effectively converted $500.0 million of variable rate loans to fixed rate loans. For the next twelve months, HTLF estimates cash payments and reclassification from accumulated other comprehensive income (loss) to interest income will total $982,000. HTLF had no derivative instruments designated as cash flow hedges at June 30, 2024. The table below identifies the gains and losses recognized on HTLF's terminated derivative instruments designated as cash flow hedges for the three and six months ended June 30, 2024, and June 30, 2023, in thousands: Effective Portion Recognized in OCI Reclassified from AOCI into Income Amount of Gain (Loss) Category Amount of Gain (Loss) Three Months Ended June 30, 2024 Interest rate swap $ — Interest income $ 245 Six Months Ended June 30, 2024 Interest rate swap $ — Interest income $ 210 Three Months Ended June 30, 2023 Interest rate swap $ — Interest income $ 63 Six Months Ended June 30, 2023 Interest rate swap $ 1,952 Interest income $ (701) Fair Value Hedges HTLF uses interest rate swaps to convert certain long term fixed rate loans to floating rates to hedge interest rate risk exposure. HTLF also uses interest rate swaps to mitigate the risk of changes in the fair market value of certain municipal and mortgage-backed securities. The changes in the fair values of derivatives that have been designated and qualify for fair value hedge accounting are recorded in the same line item in the consolidated statements of income as the changes in the fair value of the hedged items attributable to the risk being hedged. HTLF uses statistical regression to assess hedge effectiveness, both at the inception of the hedge as well as on a continual basis. The regression analysis involves regressing the periodic change in the fair value of the hedging instrument against the periodic changes in the fair value of the asset being hedged due to changes in the hedge risk. During 2023, HTLF entered into interest rate swaps designated as fair value hedges with initial notional amounts totaling $838.1 million primarily designed to provide protection for unrealized securities losses against the impact of higher mid-to-long term interest rates. HTLF also executed interest rate swaps designated as fair value hedges with total original notional amounts of $2.50 billion to convert certain long-term fixed rate loans to floating rates to hedge interest rate risk exposure using the portfolio layer method, which allows HTLF to designate as the hedged item a stated amount of the assets that are not expected to be affected by prepayments, defaults and other factors that would affect the timing and amount of cash flow. The table below identifies the fair value of the interest rate swaps designated as fair value hedges and the balance sheet category of the interest rate swaps as of June 30, 2024 and December 31, 2023, in thousands: Fair Value Balance Sheet Category June 30, 2024 Interest rate swaps-loans receivable held to maturity $ 14,914 Other assets Interest rate swaps-securities carried at fair value 51,297 Other assets Interest rate swaps-loans receivable held to maturity 2,267 Other liabilities December 31, 2023 Interest rate swaps-loans receivable held to maturity $ 5,027 Other assets Interest rate swaps-securities carried at fair value 23,182 Other assets Interest rate swaps-loans receivable held to maturity 27,554 Other liabilities The table below identifies the carrying amount of the hedged assets and cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets that are designated as fair value hedge accounting relationships at June 30, 2024, and December 31, 2023, in thousands: Location in the consolidated Carrying Amount of Cumulative Amount of Fair Value June 30, 2024 Interest rate swap Loans receivable held to maturity $ 2,489,744 $ (10,762) Interest rate swap Securities carried at fair value 734,510 (49,140) December 31, 2023 Interest rate swap Loans receivable held to maturity $ 2,525,261 $ 24,652 Interest rate swap Securities carried at fair value 786,716 (20,979) The table below identifies the net impact to interest income recognized on HTLF's fair value hedges specific to the fair value remeasurements and the income statement classification where it is recorded in comparison to the total amount of interest income presented on the consolidated statements of income for the three- and six- months ended June 30, 2024, and June 30, 2023, in thousands: Three Months Ended Six Months Ended 2024 2023 2024 2023 Gain (loss) recognized in interest income and fees on loans $ 7 $ 3 $ 15 $ 3 Total amount of interest and fees on loans 199,161 168,899 394,822 322,742 Gain (loss) recognized in interest income on securities-taxable (85) 74 (388) 74 Total amount of interest on securities-taxable 47,381 58,172 94,395 114,148 The table below identifies the effect of fair value hedge accounting on the consolidated statements of income, in thousands: Three Months Ended Six Months Ended 2024 2023 2024 2023 Hedged item (loans receivable held to maturity) $ (4,870) $ (12,897) $ (35,399) $ (12,882) Hedged item (securities carried at fair value) (8,398) (29,510) (28,549) (29,510) Derivatives designated as hedging instruments on loans receivable held to maturity 4,877 12,900 35,414 12,885 Derivatives designated as hedging instruments on securities carried at fair value 8,313 29,584 28,161 29,584 Embedded Derivatives HTLF has fixed rate loans with embedded derivatives. These loans contain terms that affect the cash flows or value of the loan similar to a derivative instrument, and therefore are considered to contain an embedded derivative. The embedded derivatives are bifurcated from the loans because the terms of the derivative instrument are not clearly and closely related to the loans. The embedded derivatives are recorded at fair value on the consolidated balance sheets as a part of other assets, and changes in the fair value are a component of noninterest income. The table below identifies the notional amount, fair value and balance sheet category of the embedded derivatives at June 30, 2024, and December 31, 2023, in thousands: Notional Amount Fair Value Balance Sheet Category June 30, 2024 Embedded derivatives $ 2,296 $ 62 Other assets December 31, 2023 Embedded derivatives $ 2,391 $ 61 Other assets The table below identifies the gains and losses recognized on HTLF's embedded derivatives for the three- and six- months ended June 30, 2024, and June 30, 2023, in thousands: Three Months Ended Six Months Ended 2024 2023 2024 2023 Gain (loss) recognized in other noninterest income on embedded derivatives $ (8) $ 20 $ 1 $ (17) Back-to-Back Loan Swaps HTLF has loan interest rate swap relationships with customers to assist them in managing their interest rate risk. Upon entering into these loan swaps, HTLF enters into offsetting positions with counterparties in order to minimize interest rate risk to HTLF. These back-to-back loan swaps qualify as free standing financial derivatives with the fair values reported in other assets and other liabilities on the consolidated balance sheets. Any gains and losses on these back-to-back swaps are recorded in noninterest income on the consolidated statements of income, and for the three and six months ended June 30, 2024, and June 30, 2023, no gain or loss was recognized. HTLF recognized $1.6 million and $2.5 million in fee income related to executing back-to-back loan swaps for customers for the three and six months ended June 30, 2024, respectively, compared to $3.1 million and $5.1 million for the three and six months ended June 30, 2023, respectively. The table below identifies the balance sheet category and fair values of the derivative instruments designated as loan swaps at June 30, 2024, and December 31, 2023, in thousands: Notional Fair Balance Sheet June 30, 2024 Customer interest rate swaps $ 1,844,969 $ 62,576 Other assets Customer interest rate swaps 1,844,969 (62,576) Other liabilities December 31, 2023 Customer interest rate swaps $ 1,672,729 $ 56,634 Other assets Customer interest rate swaps 1,672,729 (56,634) Other liabilities Other Free Standing Derivatives HTLF acquired undesignated interest rate swaps in 2015. These swaps were entered into primarily for the benefit of customers seeking to manage their interest rate risk and are not designated against specific assets or liabilities on the consolidated balance sheets or forecasted transactions and therefore do not qualify for hedge accounting in accordance with ASC 815. These swaps are carried at fair value on the consolidated balance sheets as a component of other liabilities, with changes in the fair value recorded as a component of other noninterest income. The table below identifies the balance sheet category and fair values of HTLF's other free standing derivative instruments not designated as hedging instruments at June 30, 2024, and December 31, 2023, in thousands: Notional Amount Fair Value Balance Sheet Category June 30, 2024 Undesignated interest rate swaps $ 2,296 $ (62) Other liabilities December 31, 2023 Undesignated interest rate swaps $ 2,391 $ (61) Other liabilities HTLF recognizes gains and losses on other free standing derivatives in two separate income statement categories. Interest rate lock commitments and forward commitments are recognized in net gains on sale of loans held for sale and undesignated interest rate swaps are recognized in other noninterest income. As of the balance sheet dates presented above there were no interest rate lock commitments or forward commitments. The table below identifies the gains and losses recognized in income on HTLF's other free standing derivative instruments not designated as hedging instruments for the three- and six- months ended June 30, 2024, and June 30, 2023, in thousands: Three Months Ended Six Months Ended 2024 2023 2024 2023 Interest rate lock commitments (mortgage) $ — $ (128) $ — $ 282 Forward commitments — (181) — 91 Undesignated interest rate swaps 8 (20) (1) 17 |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE HTLF utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities carried at fair value, which include available for sale, trading securities and equity securities with a readily determinable fair value, and derivatives are recorded in the consolidated balance sheets at fair value on a recurring basis. Additionally, from time to time, HTLF may be required to record at fair value other assets on a nonrecurring basis such as loans held for sale, loans held to maturity and certain other assets including, but not limited to, commercial servicing rights and other real estate owned. These nonrecurring fair value adjustments typically involve application of the lower of cost or fair value accounting or write-downs of individual assets. Fair Value Hierarchy Under ASC 820, assets and liabilities are grouped at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level 1 — Valuation is based upon quoted prices for identical instruments in active markets. Level 2 — Valuation is based upon quoted prices for similar instruments in active markets, or similar instruments in markets that are not active, and model-based valuation techniques for all significant assumptions are observable in the market. Level 3 — Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. The following is a description of valuation methodologies used for assets and liabilities recorded at fair value on a recurring or non-recurring basis. Securities Available for Sale and Held to Maturity Securities available for sale are recorded at fair value on a recurring basis. Securities held to maturity are generally recorded at cost. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security's credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, as well as U.S. Treasury securities. Level 2 securities include U.S. government and agency securities, mortgage and asset-backed securities and private collateralized mortgage obligations, municipal bonds and corporate debt securities. On a quarterly basis, a secondary independent pricing service is used for the securities portfolio to validate the pricing from HTLF's primary pricing service. Equity Securities with a Readily Determinable Fair Value Equity securities with a readily determinable fair value generally include Community Reinvestment Act mutual funds and are classified as Level 2 due to the infrequent trading of these securities. The fair value is based on the price per share. Loans Held for Sale Loans held for sale are carried at the lower of cost or fair value on an aggregate basis. The fair value of loans held for sale is based on what secondary markets are currently offering for portfolios with similar characteristics. As such, HTLF classifies loans held for sale subjected to nonrecurring fair value adjustments as Level 2. As of June 30, 2024, loans held for sale includes $348.8 million related to the Rocky Mountain Bank division. HTLF Bank signed definitive agreements in February 2024 to sell all nine Rocky Mountain Bank branches in Montana. Loans Held to Maturity HTLF does not record loans held to maturity at fair value on a recurring basis. However, from time to time, certain loans are considered collateral dependent and an allowance for credit losses is established. The fair value of individually assessed loans is measured using the fair value of the collateral. In accordance with ASC 820, individually assessed loans measured at fair value are classified as nonrecurring Level 3 in the fair value hierarchy. Premises, Furniture and Equipment Held for Sale HTLF considers third party appraisals less estimated disposal costs, as well as independent fair value assessments from realtors or persons involved in selling bank premises, furniture and equipment, in determining the fair value of particular properties held for sale. Accordingly, the valuation of premises, furniture and equipment held for sale is subject to significant external and internal judgment. HTLF periodically reviews premises, furniture and equipment held for sale to determine if the fair value of the property, less disposal costs, has declined below its recorded book value and records any adjustments accordingly. Premises, furniture and equipment held for sale are classified as nonrecurring Level 3 in the fair value hierarchy. As of June 30, 2024, premises, furniture and equipment held for sale includes $13.2 million related to the Rocky Mountain Bank division. HTLF Bank signed definitive agreements in February 2024 to sell all nine Rocky Mountain Bank branches in Montana. The properties will transfer upon completion of the sales transactions. Derivative Financial Instruments HTLF's current interest rate risk strategy includes cash flow hedges and interest rate swaps. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. To comply with the provisions of ASC 820, HTLF incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, HTLF has considered the impact of netting any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although HTLF has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of June 30, 2024, and December 31, 2023, HTLF has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, HTLF has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. Other Real Estate Owned Other real estate owned ("OREO") represents property acquired through foreclosures and settlements of loans. Property acquired is carried at the fair value of the property at the time of acquisition (representing the property's cost basis), plus any acquisition costs, or the estimated fair value of the property, less disposal costs. HTLF considers third party appraisals, as well as independent fair value assessments from realtors or persons involved in selling OREO, in determining the fair value of particular properties. Accordingly, the valuation of OREO is subject to significant external and internal judgment. HTLF periodically reviews OREO to determine if the fair value of the property, less disposal costs, has declined below its recorded book value and records any adjustments accordingly. OREO is classified as nonrecurring Level 3 of the fair value hierarchy. The table below presents HTLF's assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2024, and December 31, 2023, in thousands, aggregated by the level in the fair value hierarchy within which those measurements fall: Total Fair Value Level 1 Level 2 Level 3 June 30, 2024 Assets Securities available for sale U.S. treasuries $ 15,847 $ 15,847 $ — $ — U.S. agencies 12,600 — 12,600 — Obligations of states and political subdivisions 724,465 — 724,465 — Mortgage-backed securities - agency 1,329,288 — 1,329,288 — Mortgage-backed securities - non-agency 1,336,140 — 1,336,140 — Commercial mortgage-backed securities - agency 60,501 — 60,501 — Commercial mortgage-backed securities - non-agency 387,939 — 387,939 — Asset-backed securities 176,382 — 176,382 — Corporate bonds 120,306 — 120,306 — Equity securities with a readily determinable fair value 21,586 — 21,586 — Derivative financial instruments (1) 128,849 — 128,849 — Total assets at fair value $ 4,313,903 $ 15,847 $ 4,298,056 $ — Liabilities Derivative financial instruments (2) $ 64,905 $ — $ 64,905 $ — Total liabilities at fair value $ 64,905 $ — $ 64,905 $ — December 31, 2023 Assets Securities available for sale U.S. treasuries $ 32,118 $ 32,118 $ — $ — U.S. agencies 14,530 — 14,530 — Obligations of states and political subdivisions 741,245 — 741,245 — Mortgage-backed securities - agency 1,393,629 — 1,393,629 — Mortgage-backed securities - non-agency 1,529,128 — 1,529,128 — Commercial mortgage-backed securities - agency 64,788 — 64,788 — Commercial mortgage-backed securities - non-agency 514,858 — 514,858 — Asset-backed securities 217,370 — 217,370 — Corporate bonds 118,169 — 118,169 — Equity securities with a readily determinable fair value 21,056 — 21,056 — Derivative financial instruments (1) 84,904 — 84,904 — Total assets at fair value $ 4,731,795 $ 32,118 $ 4,699,677 $ — Liabilities Derivative financial instruments (2) $ 84,249 $ — $ 84,249 $ — Total liabilities at fair value $ 84,249 $ — $ 84,249 $ — (1) Includes interest rate swaps, fair value hedges, embedded derivatives and back-to-back loan swaps. (2) Includes fair value hedges, back-to-back loan swaps and free standing derivatives. The tables below present HTLF's assets that are measured at fair value on a nonrecurring basis as of June 30, 2024, and December 31, 2023, in thousands: Fair Value Measurements at June 30, 2024 Total Quoted Prices in Significant Other Significant Year-to- Collateral dependent individually assessed loans: Commercial and industrial $ 19,938 $ — $ — $ 19,938 $ 3,351 Owner occupied commercial real estate 12,579 — — 12,579 — Non-owner occupied commercial real estate — — — — — Real estate construction 675 — — 675 — Agricultural and agricultural real estate 24,711 — — 24,711 — Residential real estate 727 — — 727 — Total collateral dependent individually assessed loans $ 58,630 $ — $ — $ 58,630 $ 3,351 Loans held for sale $ 348,761 $ — $ 348,761 $ — $ — Other real estate owned 7,533 — — 7,533 696 Premises, furniture and equipment held for sale 16,181 — — 16,181 89 Fair Value Measurements at December 31, 2023 Total Quoted Prices in Significant Other Significant Year-to- Collateral dependent individually assessed loans: Commercial and industrial $ 23,422 $ — $ — $ 23,422 $ 554 Owner occupied commercial real estate 30,400 — — 30,400 — Non-owner occupied commercial real estate — — — — — Real estate construction 642 — — 642 — Agricultural and agricultural real estate 4,768 — — 4,768 5,309 Residential real estate 741 — — 741 — Total collateral dependent individually assessed loans $ 59,973 $ — $ — $ 59,973 $ 5,863 Loans held for sale $ 5,071 $ — $ 5,071 $ — $ — Other real estate owned 12,548 — — 12,548 2,967 Premises, furniture and equipment held for sale 4,069 — — 4,069 2,786 The following tables present additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis and for which HTLF has utilized Level 3 inputs to determine fair value, in thousands: Fair Value at Valuation Unobservable Range (Weighted Other real estate owned $ 7,533 Modified appraised value Third party appraisal (1) Appraisal discount 0-10% (2) Premises, furniture and equipment held for sale 16,181 Modified appraised value Third party appraisal (1) Appraisal discount 0-10% (2) Collateral dependent individually assessed loans: Commercial 19,938 Modified appraised value Third party appraisal (1) Appraisal discount 0-14% (2) Owner occupied commercial real estate 12,579 Modified appraised value Third party appraisal (1) Appraisal discount 0-10% (2) Non-owner occupied commercial real estate — Modified appraised value Third party appraisal (1) Appraisal discount 0-10% (2) Real estate construction 675 Modified appraised value Third party appraisal (1) Appraisal discount 0-10% (2) Agricultural and agricultural real estate 24,711 Modified appraised value Third party appraisal (1) Appraisal discount 0-15% (2) Residential real estate 727 Modified appraised value Third party appraisal (1) Appraisal discount 0-10% (2) (1) Third party appraisals are obtained and updated at least annually to establish the value of the underlying asset, but the disclosure of the unobservable inputs used by the appraisers would not be meaningful because the range will vary widely from appraisal to appraisal. (2) Discounts applied to the appraised values primarily include estimated sales costs, but also consider the age of the appraisal, changes in local market conditions and changes in the current condition of the collateral. Fair Value at 12/31/2023 Valuation Unobservable Range (Weighted Average) Other real estate owned $ 12,548 Modified appraised value Third party appraisal (1) Appraisal discount 0-10% (2) Premises, furniture and equipment held for sale 4,069 Modified appraised value Third party appraisal (1) Appraisal discount 0-10% (2) Collateral dependent individually assessed loans: Commercial and industrial 23,422 Modified appraised value Third party appraisal (1) Appraisal discount 0-12% (2) Owner occupied commercial real estate 30,400 Modified appraised value Third party appraisal (1) Appraisal discount 0-20% (2) Non-owner occupied commercial real estate — Modified appraised value Third party appraisal (1) Appraisal discount 0-10% (2) Real estate construction 642 Modified appraised value Third party appraisal (1) Appraisal discount 0-10% (2) Agricultural and agricultural real estate 4,768 Modified appraised value Third party appraisal (1) Appraisal discount 0-10% (2) Residential real estate 741 Modified appraised value Third party appraisal (1) Appraisal discount 0-10% (2) (1) Third-party appraisals are obtained and updated at least annually to establish the value of the underlying asset, but the disclosure of the unobservable inputs used by the appraisers would not be meaningful because the range will vary widely from appraisal to appraisal. (2) Discounts applied to the appraised values primarily include estimated sales costs, but also consider the age of the appraisal, changes in local market conditions and changes in the current condition of the collateral. The table below is a summary of the estimated fair value of HTLF's financial instruments (as defined by ASC 825) as of June 30, 2024, and December 31, 2023, in thousands. The carrying amounts in the following tables are recorded in the consolidated balance sheets under the indicated captions. In accordance with ASC 825, the assets and liabilities that are not financial instruments are not included in the disclosure, including the value of premises, furniture and equipment, premises, furniture and equipment held for sale, OREO, goodwill, and other intangibles and other liabilities. HTLF does not believe that the estimated information presented herein is representative of the earnings power or value of HTLF. The following analysis, which is inherently limited in depicting fair value, also does not consider any value associated with either existing customer relationships or the ability of HTLF to create value through loan origination, deposit gathering or fee generating activities. Many of the estimates presented herein are based upon the use of highly subjective information and assumptions and, accordingly, the results may not be precise. Management believes that fair value estimates may not be comparable between financial institutions due to the wide range of permitted valuation techniques and numerous estimates which must be made. Furthermore, because the disclosed fair value amounts were estimated as of the balance sheet date, the amounts actually realized or paid upon maturity or settlement of the various financial instruments could be significantly different. Fair Value Measurements at June 30, 2024 Carrying Estimated Quoted Prices in Significant Other Significant Financial assets: Cash and cash equivalents $ 373,946 $ 373,946 $ 373,946 $ — $ — Time deposits in other financial institutions 1,340 1,340 1,340 — — Securities: Carried at fair value 4,185,054 4,185,054 15,847 4,169,207 — Held to maturity 842,980 809,516 — 809,516 — Other investments 70,684 70,684 — 70,684 — Loans held for sale 348,761 348,761 — 348,761 — Loans, net: Commercial and industrial 3,496,439 3,305,473 — 3,285,535 19,938 PPP 1,864 1,864 — 1,864 — Owner occupied commercial real estate 2,541,250 2,375,272 — 2,362,693 12,579 Non-owner occupied commercial real estate 2,420,561 2,297,208 — 2,297,208 — Real estate construction 1,050,516 1,043,263 — 1,042,588 675 Agricultural and agricultural real estate 794,053 730,953 — 706,242 24,711 Residential real estate 728,365 636,845 — 636,118 727 Consumer 448,400 430,909 — 430,909 — Total Loans, net 11,481,448 10,821,787 — 10,763,157 58,630 Cash surrender value on life insurance 199,036 199,036 — 199,036 — Derivative financial instruments (1) 128,849 128,849 — 128,849 — Financial liabilities: Deposits Demand deposits 4,244,169 4,244,169 — 4,244,169 — Savings deposits 8,470,416 8,470,416 — 8,470,416 — Time deposits 2,242,005 2,242,005 — 2,242,005 — Deposits held for sale 538,308 569,298 — 569,298 — Borrowings 694,909 694,909 — 694,909 — Term Debt 372,988 374,830 — 374,830 — Derivative financial instruments (2) 64,905 64,905 — 64,905 — (1) Includes interest rate swaps, fair value hedges, embedded derivatives and back-to-back loan swaps. (2) Includes fair value hedges, back-to-back loan swaps and undesignated interest rate swaps. Fair Value Measurements at Carrying Estimated Quoted Prices in Significant Other Significant Financial assets: Cash and cash equivalents $ 323,013 $ 323,013 $ 323,013 $ — $ — Time deposits in other financial institutions 1,240 1,240 1,240 — — Securities: Carried at fair value 4,646,891 4,646,891 32,118 4,614,773 — Held to maturity 838,241 816,399 — 816,399 — Other investments 91,277 91,277 — 91,277 — Loans held for sale 5,071 5,071 — 5,071 — Loans, net: Commercial and industrial 3,611,368 3,396,628 — 3,373,206 23,422 PPP 2,777 2,777 — 2,777 — Owner occupied commercial real estate 2,621,019 2,444,540 — 2,414,140 30,400 Non-owner occupied commercial real estate 2,536,462 2,393,931 — 2,393,931 — Real estate construction 982,943 979,105 — 978,463 642 Agricultural and agricultural real estate 914,892 839,572 — 834,804 4,768 Residential real estate 791,984 687,428 — 686,687 741 Consumer 484,634 465,686 — 465,686 — Total Loans, net 11,946,079 11,209,667 — 11,149,694 59,973 Cash surrender value on life insurance 197,085 197,085 — 197,085 — Derivative financial instruments (1) 84,904 84,904 — 84,904 — Financial liabilities: Deposits Demand deposits 4,500,304 4,500,304 — 4,500,304 — Savings deposits 8,805,597 8,805,597 — 8,805,597 — Time deposits 2,895,813 2,895,813 — 2,895,813 — Borrowings 622,255 622,255 — 622,255 — Term Debt 372,396 374,017 — 374,017 — Derivative financial instruments (2) 84,249 84,249 — 84,249 — (1) Includes interest rate swaps, fair value hedges, embedded derivatives and back-to-back loan swaps. (2) Includes fair value hedges, back-to-back loan swaps and undesignated interest rate swaps. Cash and Cash Equivalents — The carrying amount is a reasonable estimate of fair value due to the short-term nature of these instruments. Time Deposits in Other Financial Institutions — The carrying amount is a reasonable estimate of fair value due to the short-term nature of these instruments. Securities — For equity securities with a readily determinable fair value and debt securities either held to maturity, available for sale or trading, fair value equals quoted market price if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. Other Investments — Fair value measurement of other investments, which consists primarily of FHLB stock, are based on their redeemable value, which is at cost due to the restrictions placed on their transferability. The market for these securities is restricted to the issuer of the stock and subject to impairment evaluation. Loans — The fair value of loans is determined using an exit price methodology. The exit price estimation of fair value is based on the present value of the expected cash flows. The projected cash flows are based on the contractual terms of the loans, adjusted for prepayments and a discount rate based on the relative risk of the cash flows. Other considerations include the loan type, remaining life of the loan and credit risk. The fair value of individually assessed or impaired loans is measured using the fair value of the underlying collateral. The fair value of loans held for sale is estimated using quoted market prices. Cash surrender value on life insurance — Life insurance policies are held on certain officers. The carrying value of these policies approximates fair value as it is based on the cash surrender value adjusted for other charges or amounts due that are probable at settlement. As such, HTLF classifies the estimated fair value of the cash surrender value on life insurance as Level 2. Derivative Financial Instruments — The fair value of all derivatives is estimated based on the amount that HTLF would pay or would be paid to terminate the contract or agreement, using current rates and prices, and, when appropriate, the current creditworthiness of the counterparty. Deposits — The fair value of demand deposits, savings accounts and certain money market deposits is the amount payable on demand at the reporting date. The fair value of fixed maturity certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities. If the fair value of the fixed maturity certificates of deposit is calculated at less than the carrying amount, the carrying value of these deposits is reported as the fair value. The fair value of deposits held for sale is estimated using quoted market prices. Borrowings and Term Debt — Rates currently available to HTLF for debt with similar terms and remaining maturities are used to estimate fair value of existing debt. Commitments to Extend Credit, Unused Lines of Credit and Standby Letters of Credit — Based upon management's analysis of the off balance sheet financial instruments, there are no significant unrealized gains or losses associated with these financial instruments based upon review of the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. |
STOCK COMPENSATION
STOCK COMPENSATION | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK COMPENSATION | STOCK COMPENSATION Under its 2024 Long-Term Incentive Plan (the "Plan"), HTLF's Compensation and Human Capital Committee, (the "Compensation Committee"), may grant non-qualified and incentive stock options, stock appreciation rights, stock awards, restricted stock, restricted stock units and cash incentive awards. The Plan was approved by stockholders in May 2024 and replaces the 2020 Long-Term Incentive Plan. The Plan has authorized a total of 2,460,000 shares of common stock for issuance, of which 1,464,540 shares of common stock were available as of June 30, 2024, for issuance of future awards to employees and directors of, and service providers to, HTLF or its subsidiaries. The cost of each award is based upon its fair value estimated on the date of grant and recognized in the consolidated statements of income over the vesting period of the award. The fair market value of restricted stock and restricted stock units is based on the fair value of the underlying shares of common stock on the date of grant. Forfeitures are accounted for as they occur. HTLF's income tax expense included $330,000 and $75,000 during the six months ended June 30, 2024 and June 30, 2023, respectively, related to the exercise, vesting and forfeiture of equity-based awards. Restricted Stock Units The Plan permits the Compensation Committee to grant restricted stock units ("RSUs"). The time-based RSUs are generally granted in the first quarter of each year and represent the right, without payment, to receive shares of HTLF common stock on a specified date in the future. Generally, the time-based RSUs vest over three years in equal installments in March of each of the three years following the year of the grant. The Compensation Committee has also granted three-year performance-based RSUs, generally in the first quarter of each year. These performance-based RSUs will be earned based on satisfaction of performance targets for the three-year performance period as defined in the RSU agreement. These performance-based RSUs or a portion thereof vest after measurement of performance in relation to the performance targets. The time-based RSUs (and performance-based RSUs to the extent earned) also vest upon death, disability, a "qualified retirement" (as defined in the RSU agreement), or upon certain terminations of employment related to a change in control. All of HTLF's RSUs will be settled in common stock upon vesting. Most RSUs granted after March 2023 accrue dividend equivalents, which are paid in cash without interest only upon vesting. Dividend equivalents with respect to RSUs forfeited are also forfeited. RSUs granted prior to March 2023 are not entitled to dividend equivalents. A summary of the RSUs outstanding as of June 30, 2024, and June 30, 2023, and changes during the six months ended June 30, 2024 and 2023, follows: 2024 2023 Shares Weighted-Average Grant Date Shares Weighted-Average Grant Date Outstanding at January 1, 466,105 $ 47.22 424,086 $ 46.15 Granted 340,855 34.61 241,347 47.30 Vested (173,932) 46.15 (166,845) 42.22 Forfeited (55,924) 47.32 (28,612) 44.27 Outstanding at June 30, 577,104 $ 40.08 469,976 $ 48.25 Total compensation costs recorded for RSUs were $5.9 million and $6.7 million during the six months ended June 30, 2024 and 2023, respectively. As of June 30, 2024, there were $12.9 million of total unrecognized compensation costs related to the Plan for RSUs that are expected to be recognized through 2027. Stock Options The Plan provides the Compensation Committee the authority to grant stock options. During the year ended December 31, 2022, 64,518 options were granted, and the fair value of the options granted was determined using the Black-Scholes valuation model. The options granted generally vest over the first four years in equal installments on the anniversary date of the grant. The options may also vest upon death, disability, upon a change in control or upon a "qualified retirement" as defined in the stock option agreement. The exercise price of the stock options was established by the Compensation Committee, but the exercise price may not be less than the fair market value of the shares on the date the options are granted. A summary of the status of stock options as of June 30, 2024, and June 30, 2023, and changes during the six months ended June 30, 2024 and 2023, follows: 2024 2023 Shares Weighted Average Shares Weighted Average Outstanding January 1, 58,066 $ 48.79 64,518 $ 48.79 Granted — — — — Exercised — — — — Forfeited (5,161) 48.79 (6,452) 48.79 Outstanding at June 30, 52,905 48.79 58,066 48.79 Options exercisable at June 30 13,224 $ 48.79 — $ — |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The interim unaudited consolidated financial statements contained herein should be read in conjunction with the audited consolidated financial statements and accompanying notes to the consolidated financial statements for the fiscal year ended December 31, 2023, included in the Annual Report on Form 10-K of Heartland Financial USA, Inc. ("HTLF") filed with the Securities and Exchange Commission ("SEC") on February 23, 2024 . Foot note disclosures to the interim unaudited consolidated financial statements which would substantially duplicate the disclosure contained in the footnotes to the audited consolidated financial statements have been omitted. The financial information included herein has been prepared in accordance with U.S. generally accepted accounting principles 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. 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. On April 28, 2024 (the “Signing Date”), HTLF entered into an Agreement and Plan of Merger (the “Merger Agreement”) with UMB Financial Corporation, a Missouri corporation (“UMB”) and Blue Sky Merger Sub Inc., a Delaware corporation and wholly owned subsidiary of UMB (“Blue Sky Merger Sub”). The Merger Agreement provides that, upon the terms and subject to the conditions set forth therein, (i) Blue Sky Merger Sub will merge with and into HTLF (the “Merger”), with HTLF surviving the Merger as a wholly owned subsidiary of UMB (the “Surviving Entity”) and (ii) immediately following the effective time of the Merger (the “Effective Time”) and as part of a single, integrated transaction, the Surviving Entity will merge with and into UMB (the “Second Merger”, and together with the Merger, the “Mergers”), with UMB surviving the Second Merger (the “Surviving Corporation”). On the day immediately following the closing date of the Mergers, UMB will cause HTLF’s wholly owned banking subsidiary, HTLF Bank, to merge with and into UMB’s wholly owned banking subsidiary, UMB Bank, National Association (the “Bank Merger”), with UMB Bank, National Association continuing as the surviving bank in the Bank Merger. The Merger Agreement was unanimously approved by the Board of Directors of each of HTLF and UMB. Upon the terms and subject to the conditions set forth in the Merger Agreement, at the Effective Time, each share of common stock, par value $1.00 per share, of HTLF (“HTLF Common Stock”) issued and outstanding immediately prior to the Effective Time, other than certain shares held by UMB or HTLF, will be converted into the right to receive 0.55 shares (the “Exchange Ratio,” and such shares, the “Merger Consideration”) of common stock, $1.00 par value, of UMB (“UMB Common Stock”) and cash in lieu of fractional shares. At the Effective Time, each share of 7.00% Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series E, par value $1.00 per share of HTLF (the “HTLF Preferred Stock”), issued and outstanding immediately before the Effective Time will be converted into the right to receive one share of a newly created series of preferred stock of UMB (“UMB Preferred Stock”) with such rights, preferences, privileges an d powers (including voting powers) as set forth in the Certificate of Designations attached as an exhibit to the Merger Agreement. |
Earnings Per Share | Basic earnings per share is determined using net income available to common stockholders and weighted average common shares outstanding. Diluted earnings per share is computed by dividing net income available to common stockholders by the weighted average common shares and assumed incremental common shares issued. |
Subsequent Events | HTLF has evaluated subsequent events that may require recognition or disclosure through the filing date of this Quarterly Report on Form 10-Q with the SEC. |
Effect of New Financial Accounting Standards | ASU 2023-02 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)." ASU 2023-02 expands the permitted use of the proportional amortization method, which is currently only available to low-income housing tax credit investments, to other tax equity investments if certain conditions are met. Under the proportional amortization method, the initial cost of an investment is amortized in proportion to the income tax benefits received and both the amortization of the investment and the income tax benefits received are recognized as a component of income tax expense. This ASU was effective on January 1, 2024. HTLF has elected to use the proportional amortization method for investments in low-income housing projects. The amendments in this ASU do not have a material impact on the results of operations or financial position. ASU 2023-06 In October 2023, the FASB issued ASU 2023-06, "Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative." The amendments in this Update modify the disclosure or presentation requirements of a variety of Topics in the Codification. Certain of the amendments represent clarifications to, or technical corrections of, the current requirements. Each amendment in the ASU will only become effective if the SEC removes the related disclosure or presentation requirement from its existing regulations by June 30, 2027. The amendments in this ASU are not expected to have a material impact on the results of operations or financial position. ASU 2023-07 In November 2023, the FASB issued ASU 2023-07, " Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" to improve disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This update does not change how a public entity identifies its operating segments; however, it does require that an entity that has single reportable segment provide all the disclosures required by the amendments in this update. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. A public entity should apply the amendments in this update retrospectively to all prior periods presented in the consolidated financial statements. Early adoption is permitted. We currently have one reportable operating segment. This ASU will not impact our consolidated financial statements and will have minimal impact to our disclosures, requiring identification of the chief operating decision maker and the information used to make operating decisions and to allocate resources. ASU 2023-09 In December 2023, the FASB issued ASU 2023-09, “ Income Taxes (Topic 740): Improvements to Income Tax Disclosures” that require public business entities to annually disclose (1) specific categories in their rate reconciliation; (2) additional information for reconciling items that meet a quantitative threshold; (3) the amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes; (4) the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which the income taxes paid that meet a quantitative threshold; (5) income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign; and (6) income tax expense (or benefit) from continuing operations disaggregated by federal, state, and foreign. The ASU eliminates the requirement to disclose the nature and estimate of the range of the reasonably possible change in the unrecognized tax benefits balance in the next 12 months and to disclose the cumulative amount of each type of temporary difference when a deferred tax liability is not recognized because of the exceptions to comprehensive recognition of deferred taxes related to subsidiaries and corporate joint ventures. For public business entities, the amendments are effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments should be applied on a prospective basis, but retrospective application is permitted. HTLF is currently evaluating the impact of the standard and does not anticipate it will have a significant impact on the results of operations, financial position, or liquidity. Qualified Affordable Housing Investments HTLF uses the proportional amortization method for investments in low-income housing projects. HTLF’s net investments in low-income housing projects were $5.5 million and $5.9 million as of June 30, 2024, and December 31, 2023, respectively, and are included in other assets in the consolidated balance sheet. With respect to HTLF’s investment in low-income housing projects for the quarter ended June 30, 2024, we recognized income tax credits and other income tax benefits of $257,000 and $33,000, respectively. The total income tax benefits of $290,000 are partially offset in the “income taxes” item in the consolidated statements of income by $235,000 of investment amortization recognized, for a net income tax benefit of $55,000. The cash flows related to the total income tax benefits are presented in the following line items in the statement of cash flows: • $55,000 Net Income Tax Benefit, in the "Net income" line item in operating activities; • $235,000 Investment Amortization, in the "Other, net" line item, which is an adjustment to reconcile net income to cash from operating activities; • $257,000 Tax Credits, in the "Other, net" line item, which is also an adjustment to reconcile net income to cash from operating activities; and • $33,000 Other Tax Benefits Recognized, in the "Other, net" line item, which is also an adjustment to reconcile net income to cash from operating activities. There was no non-income-tax-related activity or impairment losses related to the low-income housing investments this reporting period. With respect to HTLF’s investment in low-income housing projects for the six months ended June 30, 2024, we recognized income tax credits and other income tax benefits of $513,000 and $66,000, respectively. The total income tax benefits of $579,000 are partially offset in the “income taxes” item in the consolidated statements of income by $470,000 of investment amortization recognized, for a net income tax benefit of $109,000. The cash flows related to the total income tax benefits are presented in the following line items in the statement of cash flows: • $109,000 Net Income Tax Benefit, in the "Net income" line item in operating activities; • $470,000 Investment Amortization, in the "Other, net" line item, which is an adjustment to reconcile net income to cash from operating activities; • $513,000 Tax Credits, in the "Other, net" line item, which is also an adjustment to reconcile net income to cash from operating activities; and • $66,000 Other Tax Benefits Recognized, in the "Other, net" line item, which is also an adjustment to reconcile net income to cash from operating activities. There was no non-income-tax-related activity or impairment losses related to the low-income housing investments this reporting period. |
Fair Value Hierarchy | Under ASC 820, assets and liabilities are grouped at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level 1 — Valuation is based upon quoted prices for identical instruments in active markets. Level 2 — Valuation is based upon quoted prices for similar instruments in active markets, or similar instruments in markets that are not active, and model-based valuation techniques for all significant assumptions are observable in the market. Level 3 — Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. The following is a description of valuation methodologies used for assets and liabilities recorded at fair value on a recurring or non-recurring basis. Securities Available for Sale and Held to Maturity Securities available for sale are recorded at fair value on a recurring basis. Securities held to maturity are generally recorded at cost. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security's credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, as well as U.S. Treasury securities. Level 2 securities include U.S. government and agency securities, mortgage and asset-backed securities and private collateralized mortgage obligations, municipal bonds and corporate debt securities. On a quarterly basis, a secondary independent pricing service is used for the securities portfolio to validate the pricing from HTLF's primary pricing service. Equity Securities with a Readily Determinable Fair Value Equity securities with a readily determinable fair value generally include Community Reinvestment Act mutual funds and are classified as Level 2 due to the infrequent trading of these securities. The fair value is based on the price per share. Loans Held for Sale Loans held for sale are carried at the lower of cost or fair value on an aggregate basis. The fair value of loans held for sale is based on what secondary markets are currently offering for portfolios with similar characteristics. As such, HTLF classifies loans held for sale subjected to nonrecurring fair value adjustments as Level 2. As of June 30, 2024, loans held for sale includes $348.8 million related to the Rocky Mountain Bank division. HTLF Bank signed definitive agreements in February 2024 to sell all nine Rocky Mountain Bank branches in Montana. Loans Held to Maturity HTLF does not record loans held to maturity at fair value on a recurring basis. However, from time to time, certain loans are considered collateral dependent and an allowance for credit losses is established. The fair value of individually assessed loans is measured using the fair value of the collateral. In accordance with ASC 820, individually assessed loans measured at fair value are classified as nonrecurring Level 3 in the fair value hierarchy. Premises, Furniture and Equipment Held for Sale HTLF considers third party appraisals less estimated disposal costs, as well as independent fair value assessments from realtors or persons involved in selling bank premises, furniture and equipment, in determining the fair value of particular properties held for sale. Accordingly, the valuation of premises, furniture and equipment held for sale is subject to significant external and internal judgment. HTLF periodically reviews premises, furniture and equipment held for sale to determine if the fair value of the property, less disposal costs, has declined below its recorded book value and records any adjustments accordingly. Premises, furniture and equipment held for sale are classified as nonrecurring Level 3 in the fair value hierarchy. As of June 30, 2024, premises, furniture and equipment held for sale includes $13.2 million related to the Rocky Mountain Bank division. HTLF Bank signed definitive agreements in February 2024 to sell all nine Rocky Mountain Bank branches in Montana. The properties will transfer upon completion of the sales transactions. Derivative Financial Instruments HTLF's current interest rate risk strategy includes cash flow hedges and interest rate swaps. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. To comply with the provisions of ASC 820, HTLF incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, HTLF has considered the impact of netting any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although HTLF has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of June 30, 2024, and December 31, 2023, HTLF has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, HTLF has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. Other Real Estate Owned Other real estate owned ("OREO") represents property acquired through foreclosures and settlements of loans. Property acquired is carried at the fair value of the property at the time of acquisition (representing the property's cost basis), plus any acquisition costs, or the estimated fair value of the property, less disposal costs. HTLF considers third party appraisals, as well as independent fair value assessments from realtors or persons involved in selling OREO, in determining the fair value of particular properties. Accordingly, the valuation of OREO is subject to significant external and internal judgment. HTLF periodically reviews OREO to determine if the fair value of the property, less disposal costs, has declined below its recorded book value and records any adjustments accordingly. OREO is classified as nonrecurring Level 3 of the fair value hierarchy. |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Amounts used in the determination of basic and diluted earnings per share for the three- and six- months ended June 30, 2024 and 2023, are shown in the table below, dollars and number of shares in thousands, except per share data: Three Months Ended 2024 2023 Net income attributable to HTLF $ 39,742 $ 49,416 Preferred dividends (2,012) (2,012) Net income available to common stockholders $ 37,730 $ 47,404 Weighted average common shares outstanding for basic earnings per share 42,918 42,696 Assumed incremental common shares issued upon vesting of outstanding restricted stock units 142 62 Weighted average common shares for diluted earnings per share 43,060 42,758 Earnings per common share — basic $ 0.88 $ 1.11 Earnings per common share — diluted $ 0.88 $ 1.11 Number of antidilutive common stock equivalents excluded from diluted earnings per share computation 88 59 Number of antidilutive stock options excluded from diluted earnings per share computation 53 221 Six Months Ended 2024 2023 Net income $ 91,449 $ 102,192 Preferred dividends (4,025) (4,025) Net income available to stockholders $ 87,424 $ 98,167 Weighted average common shares outstanding for basic earnings per share 42,862 42,655 Assumed incremental common shares issued upon vesting of outstanding restricted stock units 139 98 Weighted average common shares for diluted earnings per share 43,001 42,753 Earnings per common share — basic $ 2.03 $ 2.30 Earnings per common share — diluted $ 2.03 $ 2.30 Number of antidilutive common stock equivalents excluded from diluted earnings per share computation 6 95 Number of antidilutive stock options excluded from diluted earnings per share computation 53 62 |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available for Sale Securities | The amortized cost, gross unrealized gains and losses, and estimated fair values of debt securities available for sale and equity securities with a readily determinable fair value that are carried at fair value as of June 30, 2024, and December 31, 2023, are summarized in the table below, in thousands: Amortized Gross Gross Estimated June 30, 2024 U.S. treasuries $ 15,997 $ — $ (150) $ 15,847 U.S. agencies 12,729 — (129) 12,600 Obligations of states and political subdivisions 834,260 10 (109,805) 724,465 Mortgage-backed securities - agency 1,559,738 10 (230,460) 1,329,288 Mortgage-backed securities - non-agency 1,408,505 257 (72,622) 1,336,140 Commercial mortgage-backed securities - agency 71,770 — (11,269) 60,501 Commercial mortgage-backed securities - non-agency 397,330 — (9,391) 387,939 Asset-backed securities 193,022 — (16,640) 176,382 Corporate bonds 121,888 — (1,582) 120,306 Total debt securities 4,615,239 277 (452,048) 4,163,468 Equity securities with a readily determinable fair value 21,586 — — 21,586 Total $ 4,636,825 $ 277 $ (452,048) $ 4,185,054 December 31, 2023 U.S. treasuries $ 32,459 $ — $ (341) $ 32,118 U.S. agencies 14,724 — (194) 14,530 Obligations of states and political subdivisions 839,754 25 (98,534) 741,245 Mortgage-backed securities - agency 1,620,409 13 (226,793) 1,393,629 Mortgage-backed securities - non-agency 1,616,414 363 (87,649) 1,529,128 Commercial mortgage-backed securities - agency 76,076 — (11,288) 64,788 Commercial mortgage-backed securities - non-agency 526,974 — (12,116) 514,858 Asset-backed securities 232,140 — (14,770) 217,370 Corporate bonds 120,338 — (2,169) 118,169 Total debt securities 5,079,288 401 (453,854) 4,625,835 Equity securities with a readily determinable fair value 21,056 — — 21,056 Total $ 5,100,344 $ 401 $ (453,854) $ 4,646,891 |
Schedule of Held to Maturity Securities | The amortized cost, gross unrealized gains and losses and estimated fair values of held to maturity securities as of June 30, 2024, and December 31, 2023, are summarized in the table below, in thousands: Amortized Gross Gross Estimated June 30, 2024 Obligations of states and political subdivisions $ 842,980 $ 2,246 (35,710) $ 809,516 Total $ 842,980 $ 2,246 $ (35,710) $ 809,516 December 31, 2023 Obligations of states and political subdivisions $ 838,241 $ 3,622 $ (25,464) $ 816,399 Total $ 838,241 $ 3,622 $ (25,464) $ 816,399 Securities held to maturity Less than 12 months 12 months or longer Total Fair Unrealized Count Fair Unrealized Count Fair Unrealized Count June 30, 2024 Obligations of states and political subdivisions $ 27,460 $ (472) 9 $ 704,626 $ (35,238) 147 $ 732,086 $ (35,710) 156 Total temporarily impaired securities $ 27,460 (472) 9 $ 704,626 $ (35,238) 147 $ 732,086 (35,710) 156 December 31, 2023 Obligations of states and political subdivisions $ 145,471 $ (3,706) 23 $ 569,691 $ (21,758) 126 $ 715,162 $ (25,464) 149 Total temporarily impaired securities $ 145,471 $ (3,706) 23 $ 569,691 $ (21,758) 126 $ 715,162 $ (25,464) 149 |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of investment securities carried at fair value at June 30, 2024, by contractual maturity, are as follows, in thousands. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties. June 30, 2024 Amortized Cost Estimated Fair Value Due in 1 year or less $ 13,642 $ 13,509 Due in 1 to 5 years 57,666 56,991 Due in 5 to 10 years 28,145 24,841 Due after 10 years 885,421 777,877 Total debt securities 984,874 873,218 Mortgage and asset-backed securities 3,630,365 3,290,250 Equity securities with a readily determinable fair value 21,586 21,586 Total investment securities $ 4,636,825 $ 4,185,054 The amortized cost and estimated fair value of debt securities held to maturity at June 30, 2024, by contractual maturity, are as follows, in thousands. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties. June 30, 2024 Amortized Cost Estimated Fair Value Due in 1 year or less $ 9,259 $ 9,266 Due in 1 to 5 years 92,315 91,718 Due in 5 to 10 years 218,329 213,258 Due after 10 years 523,077 495,274 Total debt securities $ 842,980 $ 809,516 |
Schedule of Realized Gross Gains (Losses) | Gross gains and losses realized related to the sales of securities carried at fair value for the three and six months ended June 30, 2024 and 2023, are summarized as follows, in thousands: Three Months Ended Six Months Ended 2024 2023 2024 2023 Proceeds from sales $ 97,836 $ 140,290 $ 97,836 $ 286,738 Gross security gains — 483 — 483 Gross security losses 10,556 808 10,556 1,912 |
Schedule of Debt Securities Available-for-sale | The following table summarizes, in thousands, the amount of unrealized losses, defined as the amount by which cost or amortized cost exceeds fair value, and the related fair value of investments with unrealized losses in the securities portfolio as of June 30, 2024, and December 31, 2023. The investments were segregated into two categories: those that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 months or more. The reference point for determining how long an investment was in an unrealized loss position w as June 30, 2023, and December 31, 2022 , respectively. Debt securities available for sale Less than 12 months 12 months or longer Total Fair Unrealized Count Fair Unrealized Count Fair Unrealized Count June 30, 2024 U.S. treasuries $ 2,971 $ (25) 1 $ 12,876 $ (125) 3 $ 15,847 $ (150) 4 U.S. agencies — — — 12,600 (129) 4 12,600 (129) 4 Obligations of states and political subdivisions 1,679 (24) 3 718,773 (109,781) 148 720,452 (109,805) 151 Mortgage-backed securities - agency — — — 1,328,609 (230,460) 164 1,328,609 (230,460) 164 Mortgage-backed securities - non-agency 259,143 (16,261) 6 839,345 (56,361) 37 1,098,488 (72,622) 43 Commercial mortgage-backed securities - agency — — — 60,501 (11,269) 15 60,501 (11,269) 15 Commercial mortgage-backed securities - non-agency — — — 380,125 (9,391) 14 380,125 (9,391) 14 Asset-backed securities 120,432 (11,360) 4 55,950 (5,280) 5 176,382 (16,640) 9 Corporate bonds — — — 57,611 (1,582) 8 57,611 (1,582) 8 Total temporarily impaired securities $ 384,225 $ (27,670) 14 $ 3,466,390 $ (424,378) 398 $ 3,850,615 $ (452,048) 412 December 31, 2023 U.S. treasuries $ 2,985 $ (12) 1 $ 26,138 $ (329) 3 $ 29,123 $ (341) 4 U.S. agencies — — — 14,530 (194) 4 14,530 (194) 4 Obligations of states and political subdivisions 1,440 (65) 1 736,653 (98,469) 150 738,093 (98,534) 151 Mortgage-backed securities - agency 194 (2) 2 1,392,769 (226,791) 166 1,392,963 (226,793) 168 Mortgage-backed securities - non-agency 415,934 (24,568) 12 902,291 (63,081) 35 1,318,225 (87,649) 47 Commercial mortgage-backed securities - agency — — — 64,788 (11,288) 17 64,788 (11,288) 17 Commercial mortgage-backed securities - non-agency — — — 507,044 (12,116) 16 507,044 (12,116) 16 Asset-backed securities 148,063 (9,723) 4 69,307 (5,047) 7 217,370 (14,770) 11 Corporate bonds 61,031 (111) 1 57,138 (2,058) 8 118,169 (2,169) 9 Total temporarily impaired securities $ 629,647 $ (34,481) 21 $ 3,770,658 $ (419,373) 406 $ 4,400,305 $ (453,854) 427 |
Schedule of Financing Receivable Credit Quality Indicators | The following table summarizes, in thousands, the carrying amount of HTLF's held to maturity debt securities by investment rating as of June 30, 2024, and December 31, 2023, which are updated quarterly and used to monitor the credit quality of the securities: June 30, 2024 December 31, 2023 Rating AAA $ 101,620 $ 88,550 AA, AA+, AA- 565,305 583,816 A+, A, A- 151,225 139,658 BBB 20,288 20,133 Not Rated 4,542 6,084 Total $ 842,980 $ 838,241 The following table shows the risk category of loans by loan category, year of origination and charge-offs as of June 30, 2024, in thousands: As of June 30, 2024 Amortized Cost Basis of Term Loans by Year of Origination 2024 2023 2022 2021 2020 2019 and Prior Revolving Total Commercial and industrial Pass $ 295,000 $ 512,146 $ 618,107 $ 261,964 $ 154,860 $ 358,689 $ 1,068,196 $ 3,268,962 Watch 13,856 28,148 32,584 18,695 833 8,763 81,055 183,934 Substandard 312 6,131 16,329 1,723 3,751 9,041 51,056 88,343 Commercial and industrial total $ 309,168 $ 546,425 $ 667,020 $ 282,382 $ 159,444 $ 376,493 $ 1,200,307 $ 3,541,239 Commercial and industrial charge-offs $ — $ 8 $ 1,127 $ 784 $ 3,283 $ 30 $ 2,979 $ 8,211 PPP Pass $ — $ — $ — $ 1,610 $ 31 $ — $ — $ 1,641 Watch — — — 223 — — — 223 Substandard — — — — — — — — PPP total $ — $ — $ — $ 1,833 $ 31 $ — $ — $ 1,864 PPP charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Owner occupied commercial real estate Pass $ 110,750 $ 425,238 $ 510,666 $ 711,407 $ 200,668 $ 368,105 $ 42,998 $ 2,369,832 Watch 2,788 4,983 36,793 11,004 2,920 39,109 — 97,597 Substandard — 23,401 32,536 4,913 20,499 7,186 — 88,535 Owner occupied commercial real estate total $ 113,538 $ 453,622 $ 579,995 $ 727,324 $ 224,087 $ 414,400 $ 42,998 $ 2,555,964 Owner occupied commercial real estate charge-offs $ — $ — $ 87 $ — $ 248 $ 62 $ — $ 397 Non-owner occupied commercial real estate Pass $ 75,332 $ 423,879 $ 648,769 $ 401,764 $ 181,074 $ 434,109 $ 16,812 $ 2,181,739 Watch 3,943 67,195 44,057 4,601 4,097 67,735 — 191,628 Substandard — — 135 8,538 — 52,218 — 60,891 Non-owner occupied commercial real estate total $ 79,275 $ 491,074 $ 692,961 $ 414,903 $ 185,171 $ 554,062 $ 16,812 $ 2,434,258 Non-owner occupied commercial real estate charge-offs $ — $ — $ — $ — $ — $ — $ — $ — As of June 30, 2024 Amortized Cost Basis of Term Loans by Year of Origination 2024 2023 2022 2021 2020 2019 and Prior Revolving Total Real estate construction Pass $ 64,091 $ 323,350 $ 404,646 $ 104,823 $ 7,544 $ 10,269 $ 7,324 $ 922,047 Watch — 917 20,576 44,063 71 24,656 — 90,283 Substandard 3,116 9,375 57,650 88 — 81 86 70,396 Real estate construction total $ 67,207 $ 333,642 $ 482,872 $ 148,974 $ 7,615 $ 35,006 $ 7,410 $ 1,082,726 Real estate construction charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Agricultural and agricultural real estate Pass $ 50,760 $ 113,573 $ 178,283 $ 98,886 $ 49,712 $ 58,360 $ 204,938 $ 754,512 Watch 755 3,095 1,291 420 152 73 6,648 12,434 Substandard 526 181 19,399 2,040 1,582 12,284 — 36,012 Agricultural and agricultural real estate total $ 52,041 $ 116,849 $ 198,973 $ 101,346 $ 51,446 $ 70,717 $ 211,586 $ 802,958 Agricultural and agricultural real estate charge-offs $ — $ — $ 52 $ — $ 8 $ 167 $ 648 $ 875 Residential real estate Pass $ 26,824 $ 61,048 $ 155,494 $ 214,982 $ 64,465 $ 173,439 $ 19,687 $ 715,939 Watch 2 534 998 1,452 1,829 3,537 250 8,602 Substandard — 727 140 3,222 366 4,405 — 8,860 Residential real estate total $ 26,826 $ 62,309 $ 156,632 $ 219,656 $ 66,660 $ 181,381 $ 19,937 $ 733,401 Residential real estate charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer Pass $ 18,993 $ 36,800 $ 50,951 $ 29,240 $ 3,133 $ 6,709 $ 301,963 $ 447,789 Watch 49 901 94 203 17 802 2,546 4,612 Substandard 334 51 317 372 108 1,377 939 3,498 Consumer total $ 19,376 $ 37,752 $ 51,362 $ 29,815 $ 3,258 $ 8,888 $ 305,448 $ 455,899 Consumer charge-offs $ 10 $ 51 $ 92 $ 62 $ 13 $ 49 $ 1,721 $ 1,998 Total Pass $ 641,750 $ 1,896,034 $ 2,566,916 $ 1,824,676 $ 661,487 $ 1,409,680 $ 1,661,918 $ 10,662,461 Total Watch 21,393 105,773 136,393 80,661 9,919 144,675 90,499 589,313 Total Substandard 4,288 39,866 126,506 20,896 26,306 86,592 52,081 356,535 Total Loans $ 667,431 $ 2,041,673 $ 2,829,815 $ 1,926,233 $ 697,712 $ 1,640,947 $ 1,804,498 $ 11,608,309 Total charge-offs $ 10 $ 59 $ 1,358 $ 846 $ 3,552 $ 308 $ 5,348 $ 11,481 The following table shows the risk category of loans by loan category and year of origination as of December 31, 2023, in thousands. As of December 31, 2023 Amortized Cost Basis of Term Loans by Year of Origination 2023 2022 2021 2020 2019 2018 and Prior Revolving Total Commercial and industrial Pass $ 608,030 $ 779,218 $ 333,900 $ 187,406 $ 78,455 $ 327,775 $ 1,159,397 $ 3,474,181 Watch 20,694 19,788 257 3,631 2,398 2,953 28,749 78,470 Substandard 20,171 12,658 2,636 5,447 18,535 7,489 32,460 99,396 Commercial and industrial total $ 648,895 $ 811,664 $ 336,793 $ 196,484 $ 99,388 $ 338,217 $ 1,220,606 $ 3,652,047 Commercial and industrial charge-offs $ 245 $ 794 $ 680 $ 1,425 $ 563 $ 1,949 $ 2,966 $ 8,622 PPP Pass $ — $ — $ 2,591 $ 50 $ — $ — $ — $ 2,641 Watch — — 89 — — — — 89 Substandard — — 47 — — — — 47 PPP total $ — $ — $ 2,727 $ 50 $ — $ — $ — $ 2,777 PPP charge-offs $ — $ — $ — $ — $ — $ — $ — $ — As of December 31, 2023 Amortized Cost Basis of Term Loans by Year of Origination 2023 2022 2021 2020 2019 2018 and Prior Revolving Total Owner occupied commercial real estate Pass $ 443,683 $ 547,898 $ 799,978 $ 225,257 $ 225,405 $ 224,608 $ 41,072 $ 2,507,901 Watch 8,052 25,947 13,114 2,662 8,115 7,553 — 65,443 Substandard 31,904 10,489 2,268 11,609 6,390 2,171 — 64,831 Owner occupied commercial real estate total $ 483,639 $ 584,334 $ 815,360 $ 239,528 $ 239,910 $ 234,332 $ 41,072 $ 2,638,175 Owner occupied commercial real estate charge-offs $ — $ 802 $ — $ 5 $ — $ 63 $ — $ 870 Non-owner occupied commercial real estate Pass $ 480,683 $ 656,824 $ 423,420 $ 203,330 $ 262,541 $ 251,499 $ 26,978 $ 2,305,275 Watch 71,400 34,651 8,237 3,834 27,345 57,083 — 202,550 Substandard 5,043 952 1,391 — 4,238 34,262 — 45,886 Non-owner occupied commercial real estate total $ 557,126 $ 692,427 $ 433,048 $ 207,164 $ 294,124 $ 342,844 $ 26,978 $ 2,553,711 Non-owner occupied commercial real estate charge-offs $ — $ 52 $ — $ 29 $ 399 $ 147 $ — $ 627 Real estate construction Pass $ 283,519 $ 468,646 $ 176,604 $ 9,889 $ 11,048 $ 3,405 $ 6,486 $ 959,597 Watch 629 33,220 9,418 72 — 65 — 43,404 Substandard — 8,522 — 107 — — 86 8,715 Real estate construction total $ 284,148 $ 510,388 $ 186,022 $ 10,068 $ 11,048 $ 3,470 $ 6,572 $ 1,011,716 Real estate construction charge-offs $ 284 $ — $ — $ 32 $ — $ — $ — $ 316 Agricultural and agricultural real estate Pass $ 152,665 $ 208,375 $ 114,798 $ 67,006 $ 28,247 $ 43,663 $ 260,941 $ 875,695 Watch 2,245 16,257 293 622 70 349 427 20,263 Substandard 12 7,616 1,649 4 855 12,591 499 23,226 Agricultural and agricultural real estate total $ 154,922 $ 232,248 $ 116,740 $ 67,632 $ 29,172 $ 56,603 $ 261,867 $ 919,184 Agricultural and agricultural real estate charge-offs $ — $ — $ — $ 9 $ — $ 1 $ 5,309 $ 5,319 Residential real estate Pass $ 71,470 $ 177,564 $ 241,362 $ 73,029 $ 42,526 $ 155,899 $ 19,534 $ 781,384 Watch 171 973 945 659 158 4,845 — 7,751 Substandard 741 150 3,400 464 290 3,649 — 8,694 Residential real estate total $ 72,382 $ 178,687 $ 245,707 $ 74,152 $ 42,974 $ 164,393 $ 19,534 $ 797,829 Residential real estate charge-offs $ — $ 59 $ 124 $ — $ — $ — $ — $ 183 Consumer Pass $ 45,595 $ 62,900 $ 35,459 $ 7,731 $ 3,663 $ 6,109 $ 324,218 $ 485,675 Watch 730 84 694 21 41 644 2,060 4,274 Substandard 80 308 401 75 159 1,769 465 3,257 Consumer total $ 46,405 $ 63,292 $ 36,554 $ 7,827 $ 3,863 $ 8,522 $ 326,743 $ 493,206 Consumer charge-offs $ 2 $ 246 $ 154 $ 27 $ 19 $ 112 $ 3,117 $ 3,677 Total Pass $ 2,085,645 $ 2,901,425 $ 2,128,112 $ 773,698 $ 651,885 $ 1,012,958 $ 1,838,626 $ 11,392,349 Total Watch 103,921 130,920 33,047 11,501 38,127 73,492 31,236 422,244 Total Substandard 57,951 40,695 11,792 17,706 30,467 61,931 33,510 254,052 Total Loans $ 2,247,517 $ 3,073,040 $ 2,172,951 $ 802,905 $ 720,479 $ 1,148,381 $ 1,903,372 $ 12,068,645 Total charge-offs $ 531 $ 1,953 $ 958 $ 1,527 $ 981 $ 2,272 $ 11,392 $ 19,614 |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Schedule of Loans | Loans as of June 30, 2024, and December 31, 2023, were as follows, in thousands: June 30, 2024 December 31, 2023 Loans receivable held to maturity: Commercial and industrial $ 3,541,239 $ 3,652,047 Paycheck Protection Program ("PPP") 1,864 2,777 Owner occupied commercial real estate 2,555,964 2,638,175 Non-owner occupied commercial real estate 2,434,258 2,553,711 Real estate construction 1,082,726 1,011,716 Agricultural and agricultural real estate 802,958 919,184 Residential real estate 733,401 797,829 Consumer 455,899 493,206 Total loans receivable held to maturity 11,608,309 12,068,645 Allowance for credit losses (126,861) (122,566) Loans receivable, net $ 11,481,448 $ 11,946,079 |
Allowance for Loan and Lease Losses, Based on Impairment Methodology | The following table shows the balance in the allowance for credit losses at June 30, 2024, and December 31, 2023, and the related loan balances, disaggregated on the basis of measurement methodology, in thousands. If a loan no longer shares similar risk characteristics with other loans in the pool, it is evaluated on an individual basis and is not included in the collective evaluation. Lending relationships on nonaccrual with $500,000 or more of total exposure are individually assessed using a collateral dependency calculation. All other loans are collectively evaluated for losses. Allowance For Credit Losses Gross Loans Receivable Held to Maturity Individually Evaluated for Credit Losses Collectively Evaluated for Credit Losses Total Loans Individually Evaluated for Credit Losses Loans Collectively Evaluated for Credit Losses Total June 30, 2024 Commercial and industrial $ 22,729 $ 22,071 $ 44,800 $ 42,667 $ 3,498,572 $ 3,541,239 PPP — — — — 1,864 1,864 Owner occupied commercial real estate 3 14,711 14,714 12,582 2,543,382 2,555,964 Non-owner occupied commercial real estate — 13,697 13,697 — 2,434,258 2,434,258 Real estate construction 22 32,188 32,210 697 1,082,029 1,082,726 Agricultural and agricultural real estate 6,773 2,132 8,905 31,484 771,474 802,958 Residential real estate — 5,036 5,036 727 732,674 733,401 Consumer — 7,499 7,499 — 455,899 455,899 Total $ 29,527 $ 97,334 $ 126,861 $ 88,157 $ 11,520,152 $ 11,608,309 December 31, 2023 Commercial and industrial $ 18,425 $ 22,254 $ 40,679 $ 41,847 $ 3,610,200 $ 3,652,047 PPP — — — — 2,777 2,777 Owner occupied commercial real estate — 17,156 17,156 30,400 2,607,775 2,638,175 Non-owner occupied commercial real estate — 17,249 17,249 — 2,553,711 2,553,711 Real estate construction 56 28,717 28,773 697 1,011,019 1,011,716 Agricultural and agricultural real estate 1,932 2,360 4,292 6,700 912,484 919,184 Residential real estate — 5,845 5,845 741 797,088 797,829 Consumer — 8,572 8,572 — 493,206 493,206 Total $ 20,413 $ 102,153 $ 122,566 $ 80,385 $ 11,988,260 $ 12,068,645 |
Financing Receivable, Loan Modification | The following tables show the amortized cost basis as of June 30, 2024 and June 30, 2023, of the loans modified during the three and six months ended June 30, 2024 and June 30, 2023, to borrowers experiencing financial difficulty by loan category and type of concession granted, dollars in thousands. Loan Modifications Made to Borrowers Experiencing Financial Difficulty Term Extension Term Extension and Interest Only Payments Term Extension and Interest Rate Reduction For the Three Months Ended June 30, 2024 Amortized % of Loan Amortized % of Loan Amortized % of Loan Non-owner occupied commercial real estate $ 614 0.03 % $ — — % $ — — % Real estate construction — — — — 3,116 0.29 Residential real estate 1,348 0.18 — — — — Consumer 169 0.04 — — — — Total $ 2,131 0.02 % $ — — % $ 3,116 0.03 % Loan Modifications Made to Borrowers Experiencing Financial Difficulty Term Extension Term Extension and Interest Only Payments Term Extension and Interest Rate Reduction For the Three Months Ended June 30, 2023 Amortized % of Loan Amortized % of Loan Amortized % of Loan Commercial $ 1,411 0.04 % $ — — % $ — — % Agricultural and agricultural real estate 1,354 0.16 — — — — Total $ 2,765 0.02 % $ — — % $ — — % Loan Modifications Made to Borrowers Experiencing Financial Difficulty Term Extension Term Extension and Term Extension and Interest Rate Reduction For the Six Months Ended June 30, 2024 Amortized % of Loan Amortized % of Loan Amortized % of Loan Commercial $ 266 0.01 % $ — — % $ — — % Non-owner occupied commercial real estate 614 0.03 — 0 — — — Real estate construction 739 0.07 — — 3,116 0.29 Residential real estate 1,348 0.18 — — — — Consumer 169 0.04 — — Total $ 3,136 0.03 % $ — — % $ 3,116 0.03 % Loan Modifications Made to Borrowers Experiencing Financial Difficulty Term Extension Term Extension and Term Extension and Interest Rate Reduction For the Six Months Ended June 30, 2023 Amortized % of Loan Amortized % of Loan Amortized % of Loan Commercial $ 5,073 0.14 % $ — — % $ — — % Owner occupied commercial real estate — — 5,043 0.21 — — Real estate construction 1,477 0.15 — — — — Agricultural and agricultural real estate 1,354 0.16 — — — — Residential real estate 752 0.09 — — — — Total $ 8,656 0.07 % $ 5,043 0.04 % $ — — % The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty in the six months ending June 30, 2024 and June 30, 2023. For the Six Months Ended June 30, 2024 Weighted Average Weighted Average Weighted Average Term Extension and Interest Rate Reduction (months) Commercial and industrial 6 0 0 Non-owner occupied commercial real estate 4 0 25 Real estate construction 4 0 0 Residential real estate 2 0 0 Consumer 86 0 0 For the Six Months Ended June 30, 2023 Weighted Average Weighted Average Weighted Average Term Extension and Interest Rate Reduction (months) Commercial and industrial 9 0 0 Owner occupied commercial real estate 0 12 0 Real estate construction 6 0 0 Agricultural and agricultural real estate 9 0 0 Residential real estate 12 0 0 Accruing Loans 30-59 60-89 90 Days or Total Past Due Current Nonaccrual June 30, 2024 Commercial and industrial $ — $ — $ — $ — $ 267 $ — Non-owner occupied commercial real estate — — — — 614 — Real estate construction — — — — 3,855 — Residential real estate — — — — 1,347 — Consumer — — — — — 169 Total $ — $ — $ — $ — $ 6,083 $ 169 Accruing Loans 30-59 60-89 90 Days or Total Past Due Current Nonaccrual June 30, 2023 Commercial and industrial $ — $ — $ — $ — $ 5,073 $ — Owner occupied commercial real estate — — — — 5,043 — Real estate construction — — — — — 1,477 Agricultural and agricultural real estate — — — — 1,354 — Residential real estate — — — — — 752 Total $ — $ — $ — $ — $ 11,470 $ 2,229 |
Schedule of Financing Receivable Credit Quality Indicators | The following table summarizes, in thousands, the carrying amount of HTLF's held to maturity debt securities by investment rating as of June 30, 2024, and December 31, 2023, which are updated quarterly and used to monitor the credit quality of the securities: June 30, 2024 December 31, 2023 Rating AAA $ 101,620 $ 88,550 AA, AA+, AA- 565,305 583,816 A+, A, A- 151,225 139,658 BBB 20,288 20,133 Not Rated 4,542 6,084 Total $ 842,980 $ 838,241 The following table shows the risk category of loans by loan category, year of origination and charge-offs as of June 30, 2024, in thousands: As of June 30, 2024 Amortized Cost Basis of Term Loans by Year of Origination 2024 2023 2022 2021 2020 2019 and Prior Revolving Total Commercial and industrial Pass $ 295,000 $ 512,146 $ 618,107 $ 261,964 $ 154,860 $ 358,689 $ 1,068,196 $ 3,268,962 Watch 13,856 28,148 32,584 18,695 833 8,763 81,055 183,934 Substandard 312 6,131 16,329 1,723 3,751 9,041 51,056 88,343 Commercial and industrial total $ 309,168 $ 546,425 $ 667,020 $ 282,382 $ 159,444 $ 376,493 $ 1,200,307 $ 3,541,239 Commercial and industrial charge-offs $ — $ 8 $ 1,127 $ 784 $ 3,283 $ 30 $ 2,979 $ 8,211 PPP Pass $ — $ — $ — $ 1,610 $ 31 $ — $ — $ 1,641 Watch — — — 223 — — — 223 Substandard — — — — — — — — PPP total $ — $ — $ — $ 1,833 $ 31 $ — $ — $ 1,864 PPP charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Owner occupied commercial real estate Pass $ 110,750 $ 425,238 $ 510,666 $ 711,407 $ 200,668 $ 368,105 $ 42,998 $ 2,369,832 Watch 2,788 4,983 36,793 11,004 2,920 39,109 — 97,597 Substandard — 23,401 32,536 4,913 20,499 7,186 — 88,535 Owner occupied commercial real estate total $ 113,538 $ 453,622 $ 579,995 $ 727,324 $ 224,087 $ 414,400 $ 42,998 $ 2,555,964 Owner occupied commercial real estate charge-offs $ — $ — $ 87 $ — $ 248 $ 62 $ — $ 397 Non-owner occupied commercial real estate Pass $ 75,332 $ 423,879 $ 648,769 $ 401,764 $ 181,074 $ 434,109 $ 16,812 $ 2,181,739 Watch 3,943 67,195 44,057 4,601 4,097 67,735 — 191,628 Substandard — — 135 8,538 — 52,218 — 60,891 Non-owner occupied commercial real estate total $ 79,275 $ 491,074 $ 692,961 $ 414,903 $ 185,171 $ 554,062 $ 16,812 $ 2,434,258 Non-owner occupied commercial real estate charge-offs $ — $ — $ — $ — $ — $ — $ — $ — As of June 30, 2024 Amortized Cost Basis of Term Loans by Year of Origination 2024 2023 2022 2021 2020 2019 and Prior Revolving Total Real estate construction Pass $ 64,091 $ 323,350 $ 404,646 $ 104,823 $ 7,544 $ 10,269 $ 7,324 $ 922,047 Watch — 917 20,576 44,063 71 24,656 — 90,283 Substandard 3,116 9,375 57,650 88 — 81 86 70,396 Real estate construction total $ 67,207 $ 333,642 $ 482,872 $ 148,974 $ 7,615 $ 35,006 $ 7,410 $ 1,082,726 Real estate construction charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Agricultural and agricultural real estate Pass $ 50,760 $ 113,573 $ 178,283 $ 98,886 $ 49,712 $ 58,360 $ 204,938 $ 754,512 Watch 755 3,095 1,291 420 152 73 6,648 12,434 Substandard 526 181 19,399 2,040 1,582 12,284 — 36,012 Agricultural and agricultural real estate total $ 52,041 $ 116,849 $ 198,973 $ 101,346 $ 51,446 $ 70,717 $ 211,586 $ 802,958 Agricultural and agricultural real estate charge-offs $ — $ — $ 52 $ — $ 8 $ 167 $ 648 $ 875 Residential real estate Pass $ 26,824 $ 61,048 $ 155,494 $ 214,982 $ 64,465 $ 173,439 $ 19,687 $ 715,939 Watch 2 534 998 1,452 1,829 3,537 250 8,602 Substandard — 727 140 3,222 366 4,405 — 8,860 Residential real estate total $ 26,826 $ 62,309 $ 156,632 $ 219,656 $ 66,660 $ 181,381 $ 19,937 $ 733,401 Residential real estate charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer Pass $ 18,993 $ 36,800 $ 50,951 $ 29,240 $ 3,133 $ 6,709 $ 301,963 $ 447,789 Watch 49 901 94 203 17 802 2,546 4,612 Substandard 334 51 317 372 108 1,377 939 3,498 Consumer total $ 19,376 $ 37,752 $ 51,362 $ 29,815 $ 3,258 $ 8,888 $ 305,448 $ 455,899 Consumer charge-offs $ 10 $ 51 $ 92 $ 62 $ 13 $ 49 $ 1,721 $ 1,998 Total Pass $ 641,750 $ 1,896,034 $ 2,566,916 $ 1,824,676 $ 661,487 $ 1,409,680 $ 1,661,918 $ 10,662,461 Total Watch 21,393 105,773 136,393 80,661 9,919 144,675 90,499 589,313 Total Substandard 4,288 39,866 126,506 20,896 26,306 86,592 52,081 356,535 Total Loans $ 667,431 $ 2,041,673 $ 2,829,815 $ 1,926,233 $ 697,712 $ 1,640,947 $ 1,804,498 $ 11,608,309 Total charge-offs $ 10 $ 59 $ 1,358 $ 846 $ 3,552 $ 308 $ 5,348 $ 11,481 The following table shows the risk category of loans by loan category and year of origination as of December 31, 2023, in thousands. As of December 31, 2023 Amortized Cost Basis of Term Loans by Year of Origination 2023 2022 2021 2020 2019 2018 and Prior Revolving Total Commercial and industrial Pass $ 608,030 $ 779,218 $ 333,900 $ 187,406 $ 78,455 $ 327,775 $ 1,159,397 $ 3,474,181 Watch 20,694 19,788 257 3,631 2,398 2,953 28,749 78,470 Substandard 20,171 12,658 2,636 5,447 18,535 7,489 32,460 99,396 Commercial and industrial total $ 648,895 $ 811,664 $ 336,793 $ 196,484 $ 99,388 $ 338,217 $ 1,220,606 $ 3,652,047 Commercial and industrial charge-offs $ 245 $ 794 $ 680 $ 1,425 $ 563 $ 1,949 $ 2,966 $ 8,622 PPP Pass $ — $ — $ 2,591 $ 50 $ — $ — $ — $ 2,641 Watch — — 89 — — — — 89 Substandard — — 47 — — — — 47 PPP total $ — $ — $ 2,727 $ 50 $ — $ — $ — $ 2,777 PPP charge-offs $ — $ — $ — $ — $ — $ — $ — $ — As of December 31, 2023 Amortized Cost Basis of Term Loans by Year of Origination 2023 2022 2021 2020 2019 2018 and Prior Revolving Total Owner occupied commercial real estate Pass $ 443,683 $ 547,898 $ 799,978 $ 225,257 $ 225,405 $ 224,608 $ 41,072 $ 2,507,901 Watch 8,052 25,947 13,114 2,662 8,115 7,553 — 65,443 Substandard 31,904 10,489 2,268 11,609 6,390 2,171 — 64,831 Owner occupied commercial real estate total $ 483,639 $ 584,334 $ 815,360 $ 239,528 $ 239,910 $ 234,332 $ 41,072 $ 2,638,175 Owner occupied commercial real estate charge-offs $ — $ 802 $ — $ 5 $ — $ 63 $ — $ 870 Non-owner occupied commercial real estate Pass $ 480,683 $ 656,824 $ 423,420 $ 203,330 $ 262,541 $ 251,499 $ 26,978 $ 2,305,275 Watch 71,400 34,651 8,237 3,834 27,345 57,083 — 202,550 Substandard 5,043 952 1,391 — 4,238 34,262 — 45,886 Non-owner occupied commercial real estate total $ 557,126 $ 692,427 $ 433,048 $ 207,164 $ 294,124 $ 342,844 $ 26,978 $ 2,553,711 Non-owner occupied commercial real estate charge-offs $ — $ 52 $ — $ 29 $ 399 $ 147 $ — $ 627 Real estate construction Pass $ 283,519 $ 468,646 $ 176,604 $ 9,889 $ 11,048 $ 3,405 $ 6,486 $ 959,597 Watch 629 33,220 9,418 72 — 65 — 43,404 Substandard — 8,522 — 107 — — 86 8,715 Real estate construction total $ 284,148 $ 510,388 $ 186,022 $ 10,068 $ 11,048 $ 3,470 $ 6,572 $ 1,011,716 Real estate construction charge-offs $ 284 $ — $ — $ 32 $ — $ — $ — $ 316 Agricultural and agricultural real estate Pass $ 152,665 $ 208,375 $ 114,798 $ 67,006 $ 28,247 $ 43,663 $ 260,941 $ 875,695 Watch 2,245 16,257 293 622 70 349 427 20,263 Substandard 12 7,616 1,649 4 855 12,591 499 23,226 Agricultural and agricultural real estate total $ 154,922 $ 232,248 $ 116,740 $ 67,632 $ 29,172 $ 56,603 $ 261,867 $ 919,184 Agricultural and agricultural real estate charge-offs $ — $ — $ — $ 9 $ — $ 1 $ 5,309 $ 5,319 Residential real estate Pass $ 71,470 $ 177,564 $ 241,362 $ 73,029 $ 42,526 $ 155,899 $ 19,534 $ 781,384 Watch 171 973 945 659 158 4,845 — 7,751 Substandard 741 150 3,400 464 290 3,649 — 8,694 Residential real estate total $ 72,382 $ 178,687 $ 245,707 $ 74,152 $ 42,974 $ 164,393 $ 19,534 $ 797,829 Residential real estate charge-offs $ — $ 59 $ 124 $ — $ — $ — $ — $ 183 Consumer Pass $ 45,595 $ 62,900 $ 35,459 $ 7,731 $ 3,663 $ 6,109 $ 324,218 $ 485,675 Watch 730 84 694 21 41 644 2,060 4,274 Substandard 80 308 401 75 159 1,769 465 3,257 Consumer total $ 46,405 $ 63,292 $ 36,554 $ 7,827 $ 3,863 $ 8,522 $ 326,743 $ 493,206 Consumer charge-offs $ 2 $ 246 $ 154 $ 27 $ 19 $ 112 $ 3,117 $ 3,677 Total Pass $ 2,085,645 $ 2,901,425 $ 2,128,112 $ 773,698 $ 651,885 $ 1,012,958 $ 1,838,626 $ 11,392,349 Total Watch 103,921 130,920 33,047 11,501 38,127 73,492 31,236 422,244 Total Substandard 57,951 40,695 11,792 17,706 30,467 61,931 33,510 254,052 Total Loans $ 2,247,517 $ 3,073,040 $ 2,172,951 $ 802,905 $ 720,479 $ 1,148,381 $ 1,903,372 $ 12,068,645 Total charge-offs $ 531 $ 1,953 $ 958 $ 1,527 $ 981 $ 2,272 $ 11,392 $ 19,614 |
Past Due Financing Receivables | The following table sets forth information regarding accruing and nonaccrual loans at June 30, 2024, and December 31, 2023, in thousands: Accruing Loans 30-59 60-89 90 Days or Total Current Nonaccrual Total Loans June 30, 2024 Commercial and industrial $ 7,061 $ 2,470 $ 251 $ 9,782 $ 3,483,319 $ 48,138 $ 3,541,239 PPP — — — — 1,864 — 1,864 Owner occupied commercial real estate 3,471 73 — 3,544 2,539,381 13,039 2,555,964 Non-owner occupied commercial real estate — — — — 2,434,123 135 2,434,258 Real estate construction 9,519 1,863 — 11,382 1,070,480 864 1,082,726 Agricultural and agricultural real estate 245 18 349 612 768,281 34,065 802,958 Residential real estate 1,321 205 — 1,526 726,372 5,503 733,401 Consumer 2,266 230 63 2,559 451,961 1,379 455,899 Total loans receivable held to maturity $ 23,883 $ 4,859 $ 663 $ 29,405 $ 11,475,781 $ 103,123 $ 11,608,309 December 31, 2023 Commercial and industrial $ 1,738 $ 126 $ 2,203 $ 4,067 $ 3,601,165 $ 46,815 $ 3,652,047 PPP 94 53 — 147 2,630 — 2,777 Owner occupied commercial real estate 205 2,664 74 2,943 2,603,640 31,592 2,638,175 Non-owner occupied commercial real estate 875 — — 875 2,552,469 367 2,553,711 Real estate construction 332 — — 332 1,010,601 783 1,011,716 Agricultural and agricultural real estate 121 — 12 133 909,841 9,210 919,184 Residential real estate 2,082 273 21 2,376 790,367 5,086 797,829 Consumer 2,257 150 197 2,604 489,029 1,573 493,206 Total loans receivable held to maturity $ 7,704 $ 3,266 $ 2,507 $ 13,477 $ 11,959,742 $ 95,426 $ 12,068,645 |
ALLOWANCE FOR CREDIT LOSSES (Ta
ALLOWANCE FOR CREDIT LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Changes in the Allowance for Loan and Leases Losses | Changes in the allowance for credit losses on loans for the three- and six- months ended June 30, 2024, and June 30, 2023, were as follows, in thousands: Commercial Owner Occupied Commercial Non-Owner Occupied Commercial Real Estate Real Estate Agricultural and Agricultural Residential Consumer Total Balance at March 31, 2024 $ 41,105 $ 14,395 $ 15,770 $ 34,925 $ 5,108 $ 5,155 $ 7,476 $ 123,934 Charge-offs (5,914) (397) — — (608) — (469) (7,388) Recoveries 170 — — — 9 70 329 578 Provision (benefit) 9,439 716 (2,073) (2,715) 4,396 (189) 163 9,737 Balance at June 30, 2024 $ 44,800 $ 14,714 $ 13,697 $ 32,210 $ 8,905 $ 5,036 $ 7,499 $ 126,861 Commercial Owner Occupied Commercial Non-Owner Occupied Commercial Real Estate Real Estate Agricultural and Agricultural Residential Consumer Total Balance at December 31, 2023 $ 40,679 $ 17,156 $ 17,249 $ 28,773 $ 4,292 $ 5,845 $ 8,572 $ 122,566 Charge-offs (8,211) (397) — — (875) — (1,998) (11,481) Recoveries 732 — — — 9 105 1,525 2,371 Provision (benefit) 11,600 (2,045) (3,552) 3,437 5,479 (914) (600) 13,405 Balance at June 30, 2024 $ 44,800 $ 14,714 $ 13,697 $ 32,210 $ 8,905 $ 5,036 $ 7,499 $ 126,861 Commercial Owner Occupied Commercial Non-Owner Occupied Commercial Real Estate Real Estate Agricultural and Agricultural Residential Consumer Total Balance at March 31, 2023 $ 31,823 $ 14,151 $ 17,062 $ 30,138 $ 2,546 $ 7,564 $ 9,423 $ 112,707 Charge-offs (3,686) (5) (29) — (5,309) (59) (525) (9,613) Recoveries 118 — — 2 1 — 154 275 Provision (benefit) 1,141 563 943 (1,894) 6,273 139 664 7,829 Balance at June 30, 2023 $ 29,396 $ 14,709 $ 17,976 $ 28,246 $ 3,511 $ 7,644 $ 9,716 $ 111,198 Commercial Owner Occupied Commercial Non-Owner Occupied Commercial Real Estate Real Estate Agricultural and Agricultural Residential Consumer Total Balance at December 31, 2022 $ 29,071 $ 13,948 $ 16,539 $ 29,998 $ 2,634 $ 7,711 $ 9,582 $ 109,483 Charge-offs (5,137) (19) (29) — (5,309) (59) (1,211) (11,764) Recoveries 1,840 112 — 19 11 19 1,465 3,466 Provision (benefit) 3,622 668 1,466 (1,771) 6,175 (27) (120) 10,013 Balance at June 30, 2023 $ 29,396 $ 14,709 $ 17,976 $ 28,246 $ 3,511 $ 7,644 $ 9,716 $ 111,198 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Changes in the allowance for credit losses for unfunded commitments for the three and six months ended June 30, 2024, and June 30, 2023, were as follows: For the Three Months Ended June 30, 2024 2023 Balance at March 31, $ 13,786 $ 21,086 Provision (benefit) (729) (2,450) Balance at June 30, $ 13,057 $ 18,636 For the Six Months Ended June 30, 2024 2023 Balance at December 31, $ 16,468 $ 20,196 Provision (benefit) (3,411) (1,560) Balance at June 30, $ 13,057 $ 18,636 |
GOODWILL AND CORE DEPOSIT INT_2
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Gross Carrying Amount and Accumulated Amortization of Other Intangible Assets | The gross carrying amount of other intangible assets consisted of core deposit intangibles and the associated accumulated amortization at June 30, 2024, and December 31, 2023, are presented in the table below, in thousands: June 30, 2024 December 31, 2023 Gross Accumulated Net Gross Accumulated Net Amortizing intangible assets: Core deposit intangibles $ 101,185 $ 85,684 $ 15,501 $ 101,185 $ 82,770 $ 18,415 Total $ 101,185 $ 85,684 $ 15,501 $ 101,185 $ 82,770 $ 18,415 |
Schedule of Estimated Future Amortization Expense of Amortizable Intangible Assets | The following table shows the estimated future amortization expense for amortizable intangible assets, in thousands: Core Deposit Intangibles Six months ending December 31, 2024 $ 2,677 Year ending December 31, 2025 4,700 2026 3,533 2027 2,601 2028 1,287 2029 466 Thereafter 237 Total $ 15,501 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Balance Sheet Category and Fair Values of Embedded Derivatives | The table below identifies the effect of fair value hedge accounting on the consolidated statements of income, in thousands: Three Months Ended Six Months Ended 2024 2023 2024 2023 Hedged item (loans receivable held to maturity) $ (4,870) $ (12,897) $ (35,399) $ (12,882) Hedged item (securities carried at fair value) (8,398) (29,510) (28,549) (29,510) Derivatives designated as hedging instruments on loans receivable held to maturity 4,877 12,900 35,414 12,885 Derivatives designated as hedging instruments on securities carried at fair value 8,313 29,584 28,161 29,584 Notional Amount Fair Value Balance Sheet Category June 30, 2024 Embedded derivatives $ 2,296 $ 62 Other assets December 31, 2023 Embedded derivatives $ 2,391 $ 61 Other assets The table below identifies the gains and losses recognized on HTLF's embedded derivatives for the three- and six- months ended June 30, 2024, and June 30, 2023, in thousands: Three Months Ended Six Months Ended 2024 2023 2024 2023 Gain (loss) recognized in other noninterest income on embedded derivatives $ (8) $ 20 $ 1 $ (17) |
Gains (Losses) on Derivative Instruments | The table below identifies the gains and losses recognized on HTLF's terminated derivative instruments designated as cash flow hedges for the three and six months ended June 30, 2024, and June 30, 2023, in thousands: Effective Portion Recognized in OCI Reclassified from AOCI into Income Amount of Gain (Loss) Category Amount of Gain (Loss) Three Months Ended June 30, 2024 Interest rate swap $ — Interest income $ 245 Six Months Ended June 30, 2024 Interest rate swap $ — Interest income $ 210 Three Months Ended June 30, 2023 Interest rate swap $ — Interest income $ 63 Six Months Ended June 30, 2023 Interest rate swap $ 1,952 Interest income $ (701) The table below identifies the net impact to interest income recognized on HTLF's fair value hedges specific to the fair value remeasurements and the income statement classification where it is recorded in comparison to the total amount of interest income presented on the consolidated statements of income for the three- and six- months ended June 30, 2024, and June 30, 2023, in thousands: Three Months Ended Six Months Ended 2024 2023 2024 2023 Gain (loss) recognized in interest income and fees on loans $ 7 $ 3 $ 15 $ 3 Total amount of interest and fees on loans 199,161 168,899 394,822 322,742 Gain (loss) recognized in interest income on securities-taxable (85) 74 (388) 74 Total amount of interest on securities-taxable 47,381 58,172 94,395 114,148 |
Balance Sheet Category and Fair Values of Derivative Instruments | The table below identifies the fair value of the interest rate swaps designated as fair value hedges and the balance sheet category of the interest rate swaps as of June 30, 2024 and December 31, 2023, in thousands: Fair Value Balance Sheet Category June 30, 2024 Interest rate swaps-loans receivable held to maturity $ 14,914 Other assets Interest rate swaps-securities carried at fair value 51,297 Other assets Interest rate swaps-loans receivable held to maturity 2,267 Other liabilities December 31, 2023 Interest rate swaps-loans receivable held to maturity $ 5,027 Other assets Interest rate swaps-securities carried at fair value 23,182 Other assets Interest rate swaps-loans receivable held to maturity 27,554 Other liabilities The table below identifies the carrying amount of the hedged assets and cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets that are designated as fair value hedge accounting relationships at June 30, 2024, and December 31, 2023, in thousands: Location in the consolidated Carrying Amount of Cumulative Amount of Fair Value June 30, 2024 Interest rate swap Loans receivable held to maturity $ 2,489,744 $ (10,762) Interest rate swap Securities carried at fair value 734,510 (49,140) December 31, 2023 Interest rate swap Loans receivable held to maturity $ 2,525,261 $ 24,652 Interest rate swap Securities carried at fair value 786,716 (20,979) The table below identifies the balance sheet category and fair values of the derivative instruments designated as loan swaps at June 30, 2024, and December 31, 2023, in thousands: Notional Fair Balance Sheet June 30, 2024 Customer interest rate swaps $ 1,844,969 $ 62,576 Other assets Customer interest rate swaps 1,844,969 (62,576) Other liabilities December 31, 2023 Customer interest rate swaps $ 1,672,729 $ 56,634 Other assets Customer interest rate swaps 1,672,729 (56,634) Other liabilities |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Balance Sheet and Income Category | The table below identifies the balance sheet category and fair values of HTLF's other free standing derivative instruments not designated as hedging instruments at June 30, 2024, and December 31, 2023, in thousands: Notional Amount Fair Value Balance Sheet Category June 30, 2024 Undesignated interest rate swaps $ 2,296 $ (62) Other liabilities December 31, 2023 Undesignated interest rate swaps $ 2,391 $ (61) Other liabilities HTLF recognizes gains and losses on other free standing derivatives in two separate income statement categories. Interest rate lock commitments and forward commitments are recognized in net gains on sale of loans held for sale and undesignated interest rate swaps are recognized in other noninterest income. As of the balance sheet dates presented above there were no interest rate lock commitments or forward commitments. The table below identifies the gains and losses recognized in income on HTLF's other free standing derivative instruments not designated as hedging instruments for the three- and six- months ended June 30, 2024, and June 30, 2023, in thousands: Three Months Ended Six Months Ended 2024 2023 2024 2023 Interest rate lock commitments (mortgage) $ — $ (128) $ — $ 282 Forward commitments — (181) — 91 Undesignated interest rate swaps 8 (20) (1) 17 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The table below presents HTLF's assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2024, and December 31, 2023, in thousands, aggregated by the level in the fair value hierarchy within which those measurements fall: Total Fair Value Level 1 Level 2 Level 3 June 30, 2024 Assets Securities available for sale U.S. treasuries $ 15,847 $ 15,847 $ — $ — U.S. agencies 12,600 — 12,600 — Obligations of states and political subdivisions 724,465 — 724,465 — Mortgage-backed securities - agency 1,329,288 — 1,329,288 — Mortgage-backed securities - non-agency 1,336,140 — 1,336,140 — Commercial mortgage-backed securities - agency 60,501 — 60,501 — Commercial mortgage-backed securities - non-agency 387,939 — 387,939 — Asset-backed securities 176,382 — 176,382 — Corporate bonds 120,306 — 120,306 — Equity securities with a readily determinable fair value 21,586 — 21,586 — Derivative financial instruments (1) 128,849 — 128,849 — Total assets at fair value $ 4,313,903 $ 15,847 $ 4,298,056 $ — Liabilities Derivative financial instruments (2) $ 64,905 $ — $ 64,905 $ — Total liabilities at fair value $ 64,905 $ — $ 64,905 $ — December 31, 2023 Assets Securities available for sale U.S. treasuries $ 32,118 $ 32,118 $ — $ — U.S. agencies 14,530 — 14,530 — Obligations of states and political subdivisions 741,245 — 741,245 — Mortgage-backed securities - agency 1,393,629 — 1,393,629 — Mortgage-backed securities - non-agency 1,529,128 — 1,529,128 — Commercial mortgage-backed securities - agency 64,788 — 64,788 — Commercial mortgage-backed securities - non-agency 514,858 — 514,858 — Asset-backed securities 217,370 — 217,370 — Corporate bonds 118,169 — 118,169 — Equity securities with a readily determinable fair value 21,056 — 21,056 — Derivative financial instruments (1) 84,904 — 84,904 — Total assets at fair value $ 4,731,795 $ 32,118 $ 4,699,677 $ — Liabilities Derivative financial instruments (2) $ 84,249 $ — $ 84,249 $ — Total liabilities at fair value $ 84,249 $ — $ 84,249 $ — (1) Includes interest rate swaps, fair value hedges, embedded derivatives and back-to-back loan swaps. (2) Includes fair value hedges, back-to-back loan swaps and free standing derivatives. |
Fair Value Measurements, Nonrecurring | The tables below present HTLF's assets that are measured at fair value on a nonrecurring basis as of June 30, 2024, and December 31, 2023, in thousands: Fair Value Measurements at June 30, 2024 Total Quoted Prices in Significant Other Significant Year-to- Collateral dependent individually assessed loans: Commercial and industrial $ 19,938 $ — $ — $ 19,938 $ 3,351 Owner occupied commercial real estate 12,579 — — 12,579 — Non-owner occupied commercial real estate — — — — — Real estate construction 675 — — 675 — Agricultural and agricultural real estate 24,711 — — 24,711 — Residential real estate 727 — — 727 — Total collateral dependent individually assessed loans $ 58,630 $ — $ — $ 58,630 $ 3,351 Loans held for sale $ 348,761 $ — $ 348,761 $ — $ — Other real estate owned 7,533 — — 7,533 696 Premises, furniture and equipment held for sale 16,181 — — 16,181 89 Fair Value Measurements at December 31, 2023 Total Quoted Prices in Significant Other Significant Year-to- Collateral dependent individually assessed loans: Commercial and industrial $ 23,422 $ — $ — $ 23,422 $ 554 Owner occupied commercial real estate 30,400 — — 30,400 — Non-owner occupied commercial real estate — — — — — Real estate construction 642 — — 642 — Agricultural and agricultural real estate 4,768 — — 4,768 5,309 Residential real estate 741 — — 741 — Total collateral dependent individually assessed loans $ 59,973 $ — $ — $ 59,973 $ 5,863 Loans held for sale $ 5,071 $ — $ 5,071 $ — $ — Other real estate owned 12,548 — — 12,548 2,967 Premises, furniture and equipment held for sale 4,069 — — 4,069 2,786 |
Fair Value Inputs, Assets, Quantitative Information | The following tables present additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis and for which HTLF has utilized Level 3 inputs to determine fair value, in thousands: Fair Value at Valuation Unobservable Range (Weighted Other real estate owned $ 7,533 Modified appraised value Third party appraisal (1) Appraisal discount 0-10% (2) Premises, furniture and equipment held for sale 16,181 Modified appraised value Third party appraisal (1) Appraisal discount 0-10% (2) Collateral dependent individually assessed loans: Commercial 19,938 Modified appraised value Third party appraisal (1) Appraisal discount 0-14% (2) Owner occupied commercial real estate 12,579 Modified appraised value Third party appraisal (1) Appraisal discount 0-10% (2) Non-owner occupied commercial real estate — Modified appraised value Third party appraisal (1) Appraisal discount 0-10% (2) Real estate construction 675 Modified appraised value Third party appraisal (1) Appraisal discount 0-10% (2) Agricultural and agricultural real estate 24,711 Modified appraised value Third party appraisal (1) Appraisal discount 0-15% (2) Residential real estate 727 Modified appraised value Third party appraisal (1) Appraisal discount 0-10% (2) (1) Third party appraisals are obtained and updated at least annually to establish the value of the underlying asset, but the disclosure of the unobservable inputs used by the appraisers would not be meaningful because the range will vary widely from appraisal to appraisal. (2) Discounts applied to the appraised values primarily include estimated sales costs, but also consider the age of the appraisal, changes in local market conditions and changes in the current condition of the collateral. Fair Value at 12/31/2023 Valuation Unobservable Range (Weighted Average) Other real estate owned $ 12,548 Modified appraised value Third party appraisal (1) Appraisal discount 0-10% (2) Premises, furniture and equipment held for sale 4,069 Modified appraised value Third party appraisal (1) Appraisal discount 0-10% (2) Collateral dependent individually assessed loans: Commercial and industrial 23,422 Modified appraised value Third party appraisal (1) Appraisal discount 0-12% (2) Owner occupied commercial real estate 30,400 Modified appraised value Third party appraisal (1) Appraisal discount 0-20% (2) Non-owner occupied commercial real estate — Modified appraised value Third party appraisal (1) Appraisal discount 0-10% (2) Real estate construction 642 Modified appraised value Third party appraisal (1) Appraisal discount 0-10% (2) Agricultural and agricultural real estate 4,768 Modified appraised value Third party appraisal (1) Appraisal discount 0-10% (2) Residential real estate 741 Modified appraised value Third party appraisal (1) Appraisal discount 0-10% (2) (1) Third-party appraisals are obtained and updated at least annually to establish the value of the underlying asset, but the disclosure of the unobservable inputs used by the appraisers would not be meaningful because the range will vary widely from appraisal to appraisal. (2) Discounts applied to the appraised values primarily include estimated sales costs, but also consider the age of the appraisal, changes in local market conditions and changes in the current condition of the collateral. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | |
Fair Value, by Balance Sheet Grouping | The table below is a summary of the estimated fair value of HTLF's financial instruments (as defined by ASC 825) as of June 30, 2024, and December 31, 2023, in thousands. The carrying amounts in the following tables are recorded in the consolidated balance sheets under the indicated captions. In accordance with ASC 825, the assets and liabilities that are not financial instruments are not included in the disclosure, including the value of premises, furniture and equipment, premises, furniture and equipment held for sale, OREO, goodwill, and other intangibles and other liabilities. HTLF does not believe that the estimated information presented herein is representative of the earnings power or value of HTLF. The following analysis, which is inherently limited in depicting fair value, also does not consider any value associated with either existing customer relationships or the ability of HTLF to create value through loan origination, deposit gathering or fee generating activities. Many of the estimates presented herein are based upon the use of highly subjective information and assumptions and, accordingly, the results may not be precise. Management believes that fair value estimates may not be comparable between financial institutions due to the wide range of permitted valuation techniques and numerous estimates which must be made. Furthermore, because the disclosed fair value amounts were estimated as of the balance sheet date, the amounts actually realized or paid upon maturity or settlement of the various financial instruments could be significantly different. Fair Value Measurements at June 30, 2024 Carrying Estimated Quoted Prices in Significant Other Significant Financial assets: Cash and cash equivalents $ 373,946 $ 373,946 $ 373,946 $ — $ — Time deposits in other financial institutions 1,340 1,340 1,340 — — Securities: Carried at fair value 4,185,054 4,185,054 15,847 4,169,207 — Held to maturity 842,980 809,516 — 809,516 — Other investments 70,684 70,684 — 70,684 — Loans held for sale 348,761 348,761 — 348,761 — Loans, net: Commercial and industrial 3,496,439 3,305,473 — 3,285,535 19,938 PPP 1,864 1,864 — 1,864 — Owner occupied commercial real estate 2,541,250 2,375,272 — 2,362,693 12,579 Non-owner occupied commercial real estate 2,420,561 2,297,208 — 2,297,208 — Real estate construction 1,050,516 1,043,263 — 1,042,588 675 Agricultural and agricultural real estate 794,053 730,953 — 706,242 24,711 Residential real estate 728,365 636,845 — 636,118 727 Consumer 448,400 430,909 — 430,909 — Total Loans, net 11,481,448 10,821,787 — 10,763,157 58,630 Cash surrender value on life insurance 199,036 199,036 — 199,036 — Derivative financial instruments (1) 128,849 128,849 — 128,849 — Financial liabilities: Deposits Demand deposits 4,244,169 4,244,169 — 4,244,169 — Savings deposits 8,470,416 8,470,416 — 8,470,416 — Time deposits 2,242,005 2,242,005 — 2,242,005 — Deposits held for sale 538,308 569,298 — 569,298 — Borrowings 694,909 694,909 — 694,909 — Term Debt 372,988 374,830 — 374,830 — Derivative financial instruments (2) 64,905 64,905 — 64,905 — (1) Includes interest rate swaps, fair value hedges, embedded derivatives and back-to-back loan swaps. (2) Includes fair value hedges, back-to-back loan swaps and undesignated interest rate swaps. Fair Value Measurements at Carrying Estimated Quoted Prices in Significant Other Significant Financial assets: Cash and cash equivalents $ 323,013 $ 323,013 $ 323,013 $ — $ — Time deposits in other financial institutions 1,240 1,240 1,240 — — Securities: Carried at fair value 4,646,891 4,646,891 32,118 4,614,773 — Held to maturity 838,241 816,399 — 816,399 — Other investments 91,277 91,277 — 91,277 — Loans held for sale 5,071 5,071 — 5,071 — Loans, net: Commercial and industrial 3,611,368 3,396,628 — 3,373,206 23,422 PPP 2,777 2,777 — 2,777 — Owner occupied commercial real estate 2,621,019 2,444,540 — 2,414,140 30,400 Non-owner occupied commercial real estate 2,536,462 2,393,931 — 2,393,931 — Real estate construction 982,943 979,105 — 978,463 642 Agricultural and agricultural real estate 914,892 839,572 — 834,804 4,768 Residential real estate 791,984 687,428 — 686,687 741 Consumer 484,634 465,686 — 465,686 — Total Loans, net 11,946,079 11,209,667 — 11,149,694 59,973 Cash surrender value on life insurance 197,085 197,085 — 197,085 — Derivative financial instruments (1) 84,904 84,904 — 84,904 — Financial liabilities: Deposits Demand deposits 4,500,304 4,500,304 — 4,500,304 — Savings deposits 8,805,597 8,805,597 — 8,805,597 — Time deposits 2,895,813 2,895,813 — 2,895,813 — Borrowings 622,255 622,255 — 622,255 — Term Debt 372,396 374,017 — 374,017 — Derivative financial instruments (2) 84,249 84,249 — 84,249 — (1) Includes interest rate swaps, fair value hedges, embedded derivatives and back-to-back loan swaps. (2) Includes fair value hedges, back-to-back loan swaps and undesignated interest rate swaps. |
STOCK COMPENSATION (Tables)
STOCK COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Status of RSUs | A summary of the RSUs outstanding as of June 30, 2024, and June 30, 2023, and changes during the six months ended June 30, 2024 and 2023, follows: 2024 2023 Shares Weighted-Average Grant Date Shares Weighted-Average Grant Date Outstanding at January 1, 466,105 $ 47.22 424,086 $ 46.15 Granted 340,855 34.61 241,347 47.30 Vested (173,932) 46.15 (166,845) 42.22 Forfeited (55,924) 47.32 (28,612) 44.27 Outstanding at June 30, 577,104 $ 40.08 469,976 $ 48.25 |
Share-Based Payment Arrangement, Option, Activity | A summary of the status of stock options as of June 30, 2024, and June 30, 2023, and changes during the six months ended June 30, 2024 and 2023, follows: 2024 2023 Shares Weighted Average Shares Weighted Average Outstanding January 1, 58,066 $ 48.79 64,518 $ 48.79 Granted — — — — Exercised — — — — Forfeited (5,161) 48.79 (6,452) 48.79 Outstanding at June 30, 52,905 48.79 58,066 48.79 Options exercisable at June 30 13,224 $ 48.79 — $ — |
BASIS OF PRESENTATION (Narrativ
BASIS OF PRESENTATION (Narrative) (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Apr. 27, 2024 $ / shares | Jul. 31, 2024 USD ($) bank | Sep. 30, 2024 USD ($) | Jun. 30, 2024 USD ($) $ / shares | Jun. 30, 2024 USD ($) segment $ / shares | Apr. 28, 2024 $ / shares shares | Feb. 28, 2024 bank | Dec. 31, 2023 USD ($) $ / shares | |
Business Acquisition [Line Items] | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 1 | $ 1 | $ 1 | |||||
Number of operating segments | segment | 1 | |||||||
Qualified Affordable Housing Investments | ||||||||
Affordable housing project investments | $ 5,500 | $ 5,500 | $ 5,900 | |||||
Affordable housing tax credits, amount | 257 | 513 | ||||||
Affordable housing, other tax benefits, amount | 33 | 66 | ||||||
Affordable housing tax credits and other tax benefits, amount | 290 | 579 | ||||||
Affordable housing project investments, amortization | 235 | 470 | ||||||
Income (loss) from affordable housing projects | $ 55 | $ 109 | ||||||
Rocky Mountain Bank | ||||||||
Business Acquisition [Line Items] | ||||||||
Disposal group, number of bank branches | bank | 9 | |||||||
Rocky Mountain Bank | Forecast | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from Sale of Loans Receivable | $ 30,000 | |||||||
Subsequent Event | Rocky Mountain Bank | ||||||||
Business Acquisition [Line Items] | ||||||||
Disposal group, number of bank branches | bank | 9 | |||||||
Time Deposits, Sold | $ 531,800 | |||||||
Financing Receivable, Sale | $ 343,800 | |||||||
Bank Merger | ||||||||
Business Acquisition [Line Items] | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 1 | |||||||
Business combination, equity interest conversion per common share (in shares) | shares | 0.55 | |||||||
Business combination, equity interest conversion, per preferred share (in shares) | shares | 1 | |||||||
Bank Merger | HTLF | ||||||||
Business Acquisition [Line Items] | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 1 | |||||||
Preferred stock, percentage | 7% | |||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 1 |
BASIS OF PRESENTATION (Earnings
BASIS OF PRESENTATION (Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net income attributable to HTLF | $ 39,742 | $ 49,416 | $ 91,449 | $ 102,192 |
Preferred dividends | (2,012) | (2,012) | (4,025) | (4,025) |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ 37,730 | $ 47,404 | $ 87,424 | $ 98,167 |
Weighted average common shares outstanding for basic earnings per share (in shares) | 42,918 | 42,696 | 42,862 | 42,655 |
Assumed incremental common shares issued upon vesting of outstanding restricted stock units (in shares) | 142 | 62 | 139 | 98 |
Weighted average common shares for diluted earnings per share (in shares) | 43,060 | 42,758 | 43,001 | 42,753 |
Earnings per common share — basic (in dollars per share) | $ 0.88 | $ 1.11 | $ 2.03 | $ 2.30 |
Earnings per common share — diluted (in dollars per share) | $ 0.88 | $ 1.11 | $ 2.03 | $ 2.30 |
Common Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of antidilutive common stock equivalents and stock options excluded from diluted earnings per share computation (in shares) | 88 | 59 | 6 | 95 |
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of antidilutive common stock equivalents and stock options excluded from diluted earnings per share computation (in shares) | 53 | 221 | 53 | 62 |
SECURITIES (Securities availabl
SECURITIES (Securities available for sale) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Gains | $ 277 | $ 401 |
Gross Unrealized Losses | (452,048) | (453,854) |
Estimated Fair Value | 873,218 | |
Equity securities with a readily determinable fair value | 21,586 | 21,056 |
Amortized Cost | 4,636,825 | 5,100,344 |
Estimated Fair Value | 4,185,054 | 4,646,891 |
Total debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total debt securities | 4,615,239 | 5,079,288 |
Gross Unrealized Gains | 277 | 401 |
Gross Unrealized Losses | (452,048) | (453,854) |
Estimated Fair Value | 4,163,468 | 4,625,835 |
U.S. treasuries | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total debt securities | 15,997 | 32,459 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (150) | (341) |
Estimated Fair Value | 15,847 | 32,118 |
U.S. agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total debt securities | 12,729 | 14,724 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (129) | (194) |
Estimated Fair Value | 12,600 | 14,530 |
Obligations of states and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total debt securities | 834,260 | 839,754 |
Gross Unrealized Gains | 10 | 25 |
Gross Unrealized Losses | (109,805) | (98,534) |
Estimated Fair Value | 724,465 | 741,245 |
Mortgage-backed securities - agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total debt securities | 1,559,738 | 1,620,409 |
Gross Unrealized Gains | 10 | 13 |
Gross Unrealized Losses | (230,460) | (226,793) |
Estimated Fair Value | 1,329,288 | 1,393,629 |
Mortgage-backed securities - non-agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total debt securities | 1,408,505 | 1,616,414 |
Gross Unrealized Gains | 257 | 363 |
Gross Unrealized Losses | (72,622) | (87,649) |
Estimated Fair Value | 1,336,140 | 1,529,128 |
Commercial mortgage-backed securities - agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total debt securities | 71,770 | 76,076 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (11,269) | (11,288) |
Estimated Fair Value | 60,501 | 64,788 |
Commercial mortgage-backed securities - non-agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total debt securities | 397,330 | 526,974 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (9,391) | (12,116) |
Estimated Fair Value | 387,939 | 514,858 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total debt securities | 193,022 | 232,140 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (16,640) | (14,770) |
Estimated Fair Value | 176,382 | 217,370 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total debt securities | 121,888 | 120,338 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1,582) | (2,169) |
Estimated Fair Value | $ 120,306 | $ 118,169 |
SECURITIES (Held to maturity se
SECURITIES (Held to maturity securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 842,980 | $ 838,241 |
Gross Unrealized Gains | 2,246 | 3,622 |
Gross Unrealized Losses | (35,710) | (25,464) |
Estimated Fair Value | 809,516 | 816,399 |
Obligations of states and political subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 842,980 | 838,241 |
Gross Unrealized Gains | 2,246 | 3,622 |
Gross Unrealized Losses | (35,710) | (25,464) |
Estimated Fair Value | $ 809,516 | $ 816,399 |
SECURITIES (Narrative) (Details
SECURITIES (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Accrued interest receivable | $ 26,300 | $ 28,000 |
Debt securities, trading and equity securities, carrying value | 4,636,825 | |
Amortized cost of FHLBs | 4,100 | 25,800 |
Asset Pledged as Collateral | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities, trading and equity securities, carrying value | $ 2,570,000 | $ 2,630,000 |
SECURITIES (Securities availa_2
SECURITIES (Securities available for sale debt maturities) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Amortized Cost | ||
Due in 1 year or less | $ 13,642 | |
Due in 1 to 5 years | 57,666 | |
Due in 5 to 10 years | 28,145 | |
Due after 10 years | 885,421 | |
Total debt securities | 984,874 | |
Mortgage and asset-backed securities | 3,630,365 | |
Equity securities with a readily determinable fair value | 21,586 | |
Total investment securities | 4,636,825 | |
Estimated Fair Value | ||
Due in 1 year or less | 13,509 | |
Due in 1 to 5 years | 56,991 | |
Due in 5 to 10 years | 24,841 | |
Due after 10 years | 777,877 | |
Estimated Fair Value | 873,218 | |
Mortgage and asset-backed securities | 3,290,250 | |
Equity securities with a readily determinable fair value | 21,586 | $ 21,056 |
Total investment securities | $ 4,185,054 |
SECURITIES (Securities held to
SECURITIES (Securities held to maturity debt maturities) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Amortized Cost | ||
Due in 1 year or less | $ 9,259 | |
Due in 1 to 5 years | 92,315 | |
Due in 5 to 10 years | 218,329 | |
Due after 10 years | 523,077 | |
Total debt securities | 842,980 | $ 838,241 |
Estimated Fair Value | ||
Due in 1 year or less | 9,266 | |
Due in 1 to 5 years | 91,718 | |
Due in 5 to 10 years | 213,258 | |
Due after 10 years | 495,274 | |
Estimated Fair Value | $ 809,516 | $ 816,399 |
SECURITIES (Gross realized gain
SECURITIES (Gross realized gain (loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales | $ 97,836 | $ 140,290 | $ 97,836 | $ 286,738 |
Gross security gains | 0 | 483 | 0 | 483 |
Gross security losses | $ 10,556 | $ 808 | $ 10,556 | $ 1,912 |
SECURITIES (Debt securities ava
SECURITIES (Debt securities available for sale) (Details) $ in Thousands | Jun. 30, 2024 USD ($) security investmentCategory | Dec. 31, 2023 USD ($) security |
Fair Value | ||
Less than 12 months | $ 384,225 | $ 629,647 |
12 months or longer | 3,466,390 | 3,770,658 |
Total | 3,850,615 | 4,400,305 |
Unrealized Losses | ||
Less than 12 months | (27,670) | (34,481) |
12 months or longer | (424,378) | (419,373) |
Total | $ (452,048) | $ (453,854) |
Count | ||
Less than 12 months | security | 14 | 21 |
12 months or longer | security | 398 | 406 |
Total | security | 412 | 427 |
Number of investment categories | investmentCategory | 2 | |
U.S. treasuries | ||
Fair Value | ||
Less than 12 months | $ 2,971 | $ 2,985 |
12 months or longer | 12,876 | 26,138 |
Total | 15,847 | 29,123 |
Unrealized Losses | ||
Less than 12 months | (25) | (12) |
12 months or longer | (125) | (329) |
Total | $ (150) | $ (341) |
Count | ||
Less than 12 months | security | 1 | 1 |
12 months or longer | security | 3 | 3 |
Total | security | 4 | 4 |
U.S. agencies | ||
Fair Value | ||
Less than 12 months | $ 0 | $ 0 |
12 months or longer | 12,600 | 14,530 |
Total | 12,600 | 14,530 |
Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or longer | (129) | (194) |
Total | $ (129) | $ (194) |
Count | ||
Less than 12 months | security | 0 | 0 |
12 months or longer | security | 4 | 4 |
Total | security | 4 | 4 |
Obligations of states and political subdivisions | ||
Fair Value | ||
Less than 12 months | $ 1,679 | $ 1,440 |
12 months or longer | 718,773 | 736,653 |
Total | 720,452 | 738,093 |
Unrealized Losses | ||
Less than 12 months | (24) | (65) |
12 months or longer | (109,781) | (98,469) |
Total | $ (109,805) | $ (98,534) |
Count | ||
Less than 12 months | security | 3 | 1 |
12 months or longer | security | 148 | 150 |
Total | security | 151 | 151 |
Mortgage-backed securities - agency | ||
Fair Value | ||
Less than 12 months | $ 0 | $ 194 |
12 months or longer | 1,328,609 | 1,392,769 |
Total | 1,328,609 | 1,392,963 |
Unrealized Losses | ||
Less than 12 months | 0 | (2) |
12 months or longer | (230,460) | (226,791) |
Total | $ (230,460) | $ (226,793) |
Count | ||
Less than 12 months | security | 0 | 2 |
12 months or longer | security | 164 | 166 |
Total | security | 164 | 168 |
Mortgage-backed securities - non-agency | ||
Fair Value | ||
Less than 12 months | $ 259,143 | $ 415,934 |
12 months or longer | 839,345 | 902,291 |
Total | 1,098,488 | 1,318,225 |
Unrealized Losses | ||
Less than 12 months | (16,261) | (24,568) |
12 months or longer | (56,361) | (63,081) |
Total | $ (72,622) | $ (87,649) |
Count | ||
Less than 12 months | security | 6 | 12 |
12 months or longer | security | 37 | 35 |
Total | security | 43 | 47 |
Commercial mortgage-backed securities - agency | ||
Fair Value | ||
Less than 12 months | $ 0 | $ 0 |
12 months or longer | 60,501 | 64,788 |
Total | 60,501 | 64,788 |
Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or longer | (11,269) | (11,288) |
Total | $ (11,269) | $ (11,288) |
Count | ||
Less than 12 months | security | 0 | 0 |
12 months or longer | security | 15 | 17 |
Total | security | 15 | 17 |
Commercial mortgage-backed securities - non-agency | ||
Fair Value | ||
Less than 12 months | $ 0 | $ 0 |
12 months or longer | 380,125 | 507,044 |
Total | 380,125 | 507,044 |
Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or longer | (9,391) | (12,116) |
Total | $ (9,391) | $ (12,116) |
Count | ||
Less than 12 months | security | 0 | 0 |
12 months or longer | security | 14 | 16 |
Total | security | 14 | 16 |
Asset-backed securities | ||
Fair Value | ||
Less than 12 months | $ 120,432 | $ 148,063 |
12 months or longer | 55,950 | 69,307 |
Total | 176,382 | 217,370 |
Unrealized Losses | ||
Less than 12 months | (11,360) | (9,723) |
12 months or longer | (5,280) | (5,047) |
Total | $ (16,640) | $ (14,770) |
Count | ||
Less than 12 months | security | 4 | 4 |
12 months or longer | security | 5 | 7 |
Total | security | 9 | 11 |
Corporate bonds | ||
Fair Value | ||
Less than 12 months | $ 0 | $ 61,031 |
12 months or longer | 57,611 | 57,138 |
Total | 57,611 | 118,169 |
Unrealized Losses | ||
Less than 12 months | 0 | (111) |
12 months or longer | (1,582) | (2,058) |
Total | $ (1,582) | $ (2,169) |
Count | ||
Less than 12 months | security | 0 | 1 |
12 months or longer | security | 8 | 8 |
Total | security | 8 | 9 |
SECURITIES (Securities held t_2
SECURITIES (Securities held to maturity) (Details) $ in Thousands | Jun. 30, 2024 USD ($) security | Dec. 31, 2023 USD ($) security |
Fair Value | ||
Less than 12 months | $ 27,460 | $ 145,471 |
12 months or longer | 704,626 | 569,691 |
Total | 732,086 | 715,162 |
Unrealized Losses | ||
Less than 12 months | (472) | (3,706) |
12 months or longer | (35,238) | (21,758) |
Total | $ (35,710) | $ (25,464) |
Count | ||
Less than 12 months | security | 9 | 23 |
12 months or longer | security | 147 | 126 |
Total | security | 156 | 149 |
Obligations of states and political subdivisions | ||
Fair Value | ||
Less than 12 months | $ 27,460 | $ 145,471 |
12 months or longer | 704,626 | 569,691 |
Total | 732,086 | 715,162 |
Unrealized Losses | ||
Less than 12 months | (472) | (3,706) |
12 months or longer | (35,238) | (21,758) |
Total | $ (35,710) | $ (25,464) |
Count | ||
Less than 12 months | security | 9 | 23 |
12 months or longer | security | 147 | 126 |
Total | security | 156 | 149 |
SECURITIES (Schedule of financi
SECURITIES (Schedule of financing receivable credit quality indicators) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 842,980 | $ 838,241 |
AAA | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 101,620 | 88,550 |
AA, AA+, AA- | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 565,305 | 583,816 |
A+, A, A- | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 151,225 | 139,658 |
BBB | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 20,288 | 20,133 |
Not Rated | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 4,542 | $ 6,084 |
LOANS (Loans held to maturity)
LOANS (Loans held to maturity) (Details) - USD ($) | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans receivable held to maturity | $ 11,608,309,000 | $ 12,068,645,000 | ||||
Allowance for credit losses | (126,861,000) | $ (123,934,000) | (122,566,000) | $ (111,198,000) | $ (112,707,000) | $ (109,483,000) |
Loans receivable, net | 11,481,448,000 | 11,946,079,000 | ||||
Paycheck Protection Program ("PPP") | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Allowance for credit losses | 0 | |||||
Commercial and industrial | Commercial and industrial | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans receivable held to maturity | 3,541,239,000 | 3,652,047,000 | ||||
Allowance for credit losses | (44,800,000) | (41,105,000) | (40,679,000) | (29,396,000) | (31,823,000) | (29,071,000) |
Commercial and industrial | Paycheck Protection Program ("PPP") | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans receivable held to maturity | 1,864,000 | 2,777,000 | ||||
Allowance for credit losses | 0 | 0 | ||||
Commercial and industrial | Owner occupied commercial real estate | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans receivable held to maturity | 2,555,964,000 | 2,638,175,000 | ||||
Allowance for credit losses | (14,714,000) | (14,395,000) | (17,156,000) | (14,709,000) | (14,151,000) | (13,948,000) |
Commercial and industrial | Non-owner occupied commercial real estate | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans receivable held to maturity | 2,434,258,000 | 2,553,711,000 | ||||
Allowance for credit losses | (13,697,000) | (15,770,000) | (17,249,000) | (17,976,000) | (17,062,000) | (16,539,000) |
Commercial and industrial | Real Estate Construction | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans receivable held to maturity | 1,082,726,000 | 1,011,716,000 | ||||
Allowance for credit losses | (32,210,000) | (34,925,000) | (28,773,000) | (28,246,000) | (30,138,000) | (29,998,000) |
Agricultural and agricultural real estate | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans receivable held to maturity | 802,958,000 | 919,184,000 | ||||
Allowance for credit losses | (8,905,000) | (5,108,000) | (4,292,000) | (3,511,000) | (2,546,000) | (2,634,000) |
Residential real estate | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans receivable held to maturity | 733,401,000 | 797,829,000 | ||||
Allowance for credit losses | (5,036,000) | (5,155,000) | (5,845,000) | (7,644,000) | (7,564,000) | (7,711,000) |
Consumer | ||||||
Loans and Leases Receivable Disclosure [Line Items] | ||||||
Total loans receivable held to maturity | 455,899,000 | 493,206,000 | ||||
Allowance for credit losses | $ (7,499,000) | $ (7,476,000) | $ (8,572,000) | $ (9,716,000) | $ (9,423,000) | $ (9,582,000) |
LOANS (Narrative) (Details)
LOANS (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Loans and Leases [Line Items] | ||||||||
Accrued interest receivable | $ 64,400,000 | $ 64,400,000 | $ 65,400,000 | |||||
Unfunded commitments | 0 | 0 | ||||||
Total Loans | 11,608,309,000 | 11,608,309,000 | 12,068,645,000 | |||||
Allowance for credit losses | 126,861,000 | $ 111,198,000 | 126,861,000 | $ 111,198,000 | $ 123,934,000 | $ 122,566,000 | $ 112,707,000 | $ 109,483,000 |
Loans secured by residential real estate property in process of foreclosure | $ 1,100,000 | $ 1,100,000 | ||||||
Loans delinquent 30 to 89 days, percentage | 0.25% | 0.25% | 0.09% | |||||
Interest income on nonaccrual loans | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Nonaccrual loans with no related allowance | 28,100,000 | 28,100,000 | $ 52,500,000 | |||||
Paycheck Protection Program ("PPP") | ||||||||
Loans and Leases [Line Items] | ||||||||
Allowance for credit losses | 0 | 0 | ||||||
Paycheck Protection Program ("PPP") | Nonpass | ||||||||
Loans and Leases [Line Items] | ||||||||
Total Loans | $ 223,000 | $ 223,000 | $ 136,000,000 |
LOANS (Allowance for credit los
LOANS (Allowance for credit losses on financing receivables) (Details) - USD ($) | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans individually evaluated for impairment, nonaccrual threshold | $ 500,000 | |||||
Allowance For Credit Losses | ||||||
Individually Evaluated for Credit Losses | 29,527,000 | $ 20,413,000 | ||||
Collectively Evaluated for Credit Losses | 97,334,000 | 102,153,000 | ||||
Total | 126,861,000 | $ 123,934,000 | 122,566,000 | $ 111,198,000 | $ 112,707,000 | $ 109,483,000 |
Gross Loans Receivable Held to Maturity | ||||||
Loans Individually Evaluated for Credit Losses | 88,157,000 | 80,385,000 | ||||
Loans Collectively Evaluated for Credit Losses | 11,520,152,000 | 11,988,260,000 | ||||
Total | 11,608,309,000 | 12,068,645,000 | ||||
Paycheck Protection Program ("PPP") | ||||||
Allowance For Credit Losses | ||||||
Total | 0 | |||||
Commercial and industrial | Commercial and industrial | ||||||
Allowance For Credit Losses | ||||||
Individually Evaluated for Credit Losses | 22,729,000 | 18,425,000 | ||||
Collectively Evaluated for Credit Losses | 22,071,000 | 22,254,000 | ||||
Total | 44,800,000 | 41,105,000 | 40,679,000 | 29,396,000 | 31,823,000 | 29,071,000 |
Gross Loans Receivable Held to Maturity | ||||||
Loans Individually Evaluated for Credit Losses | 42,667,000 | 41,847,000 | ||||
Loans Collectively Evaluated for Credit Losses | 3,498,572,000 | 3,610,200,000 | ||||
Total | 3,541,239,000 | 3,652,047,000 | ||||
Commercial and industrial | Paycheck Protection Program ("PPP") | ||||||
Allowance For Credit Losses | ||||||
Individually Evaluated for Credit Losses | 0 | 0 | ||||
Collectively Evaluated for Credit Losses | 0 | 0 | ||||
Total | 0 | 0 | ||||
Gross Loans Receivable Held to Maturity | ||||||
Loans Individually Evaluated for Credit Losses | 0 | 0 | ||||
Loans Collectively Evaluated for Credit Losses | 1,864,000 | 2,777,000 | ||||
Total | 1,864,000 | 2,777,000 | ||||
Commercial and industrial | Owner occupied commercial real estate | ||||||
Allowance For Credit Losses | ||||||
Individually Evaluated for Credit Losses | 3,000 | 0 | ||||
Collectively Evaluated for Credit Losses | 14,711,000 | 17,156,000 | ||||
Total | 14,714,000 | 14,395,000 | 17,156,000 | 14,709,000 | 14,151,000 | 13,948,000 |
Gross Loans Receivable Held to Maturity | ||||||
Loans Individually Evaluated for Credit Losses | 12,582,000 | 30,400,000 | ||||
Loans Collectively Evaluated for Credit Losses | 2,543,382,000 | 2,607,775,000 | ||||
Total | 2,555,964,000 | 2,638,175,000 | ||||
Commercial and industrial | Non-owner occupied commercial real estate | ||||||
Allowance For Credit Losses | ||||||
Individually Evaluated for Credit Losses | 0 | 0 | ||||
Collectively Evaluated for Credit Losses | 13,697,000 | 17,249,000 | ||||
Total | 13,697,000 | 15,770,000 | 17,249,000 | 17,976,000 | 17,062,000 | 16,539,000 |
Gross Loans Receivable Held to Maturity | ||||||
Loans Individually Evaluated for Credit Losses | 0 | 0 | ||||
Loans Collectively Evaluated for Credit Losses | 2,434,258,000 | 2,553,711,000 | ||||
Total | 2,434,258,000 | 2,553,711,000 | ||||
Commercial and industrial | Real estate construction | ||||||
Allowance For Credit Losses | ||||||
Individually Evaluated for Credit Losses | 22,000 | 56,000 | ||||
Collectively Evaluated for Credit Losses | 32,188,000 | 28,717,000 | ||||
Total | 32,210,000 | 34,925,000 | 28,773,000 | 28,246,000 | 30,138,000 | 29,998,000 |
Gross Loans Receivable Held to Maturity | ||||||
Loans Individually Evaluated for Credit Losses | 697,000 | 697,000 | ||||
Loans Collectively Evaluated for Credit Losses | 1,082,029,000 | 1,011,019,000 | ||||
Total | 1,082,726,000 | 1,011,716,000 | ||||
Agricultural and agricultural real estate | ||||||
Allowance For Credit Losses | ||||||
Individually Evaluated for Credit Losses | 6,773,000 | 1,932,000 | ||||
Collectively Evaluated for Credit Losses | 2,132,000 | 2,360,000 | ||||
Total | 8,905,000 | 5,108,000 | 4,292,000 | 3,511,000 | 2,546,000 | 2,634,000 |
Gross Loans Receivable Held to Maturity | ||||||
Loans Individually Evaluated for Credit Losses | 31,484,000 | 6,700,000 | ||||
Loans Collectively Evaluated for Credit Losses | 771,474,000 | 912,484,000 | ||||
Total | 802,958,000 | 919,184,000 | ||||
Residential real estate | ||||||
Allowance For Credit Losses | ||||||
Individually Evaluated for Credit Losses | 0 | 0 | ||||
Collectively Evaluated for Credit Losses | 5,036,000 | 5,845,000 | ||||
Total | 5,036,000 | 5,155,000 | 5,845,000 | 7,644,000 | 7,564,000 | 7,711,000 |
Gross Loans Receivable Held to Maturity | ||||||
Loans Individually Evaluated for Credit Losses | 727,000 | 741,000 | ||||
Loans Collectively Evaluated for Credit Losses | 732,674,000 | 797,088,000 | ||||
Total | 733,401,000 | 797,829,000 | ||||
Consumer | ||||||
Allowance For Credit Losses | ||||||
Individually Evaluated for Credit Losses | 0 | 0 | ||||
Collectively Evaluated for Credit Losses | 7,499,000 | 8,572,000 | ||||
Total | 7,499,000 | $ 7,476,000 | 8,572,000 | $ 9,716,000 | $ 9,423,000 | $ 9,582,000 |
Gross Loans Receivable Held to Maturity | ||||||
Loans Individually Evaluated for Credit Losses | 0 | 0 | ||||
Loans Collectively Evaluated for Credit Losses | 455,899,000 | 493,206,000 | ||||
Total | $ 455,899,000 | $ 493,206,000 |
LOANS (Loan modifications) (Det
LOANS (Loan modifications) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 2,131 | $ 2,765 | $ 3,136 | $ 8,656 |
% of Loan Category | 0.02% | 0.02% | 0.03% | 0.07% |
Term Extension and Interest Only Payments | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 0 | $ 0 | $ 0 | $ 5,043 |
% of Loan Category | 0% | 0% | 0% | 0.04% |
Term Extension and Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 3,116 | $ 0 | $ 3,116 | $ 0 |
% of Loan Category | 0.03% | 0% | 0.03% | 0% |
Commercial and industrial | Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 614 | |||
% of Loan Category | 0.03% | |||
Commercial and industrial | Term Extension and Interest Only Payments | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 0 | |||
% of Loan Category | 0% | |||
Commercial and industrial | Term Extension and Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 0 | |||
% of Loan Category | 0% | |||
Commercial and industrial | Commercial and industrial | Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 1,411 | $ 266 | $ 5,073 | |
% of Loan Category | 0.04% | 0.01% | 0.14% | |
Commercial and industrial | Commercial and industrial | Term Extension and Interest Only Payments | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 0 | $ 0 | $ 0 | |
% of Loan Category | 0% | 0% | 0% | |
Commercial and industrial | Commercial and industrial | Term Extension and Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 0 | $ 0 | $ 0 | |
% of Loan Category | 0% | 0% | 0% | |
Commercial and industrial | Owner occupied commercial real estate | Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 0 | |||
% of Loan Category | 0% | |||
Commercial and industrial | Owner occupied commercial real estate | Term Extension and Interest Only Payments | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 5,043 | |||
% of Loan Category | 0.21% | |||
Commercial and industrial | Owner occupied commercial real estate | Term Extension and Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 0 | |||
% of Loan Category | 0% | |||
Commercial and industrial | Real estate construction | Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 0 | $ 739 | $ 1,477 | |
% of Loan Category | 0% | 0.07% | 0.15% | |
Commercial and industrial | Real estate construction | Term Extension and Interest Only Payments | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 0 | $ 0 | $ 0 | |
% of Loan Category | 0% | 0% | 0% | |
Commercial and industrial | Real estate construction | Term Extension and Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 3,116 | $ 3,116 | $ 0 | |
% of Loan Category | 0.29% | 0.29% | 0% | |
Commercial and industrial | Non-owner occupied commercial real estate | Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 614 | |||
% of Loan Category | 0.03% | |||
Commercial and industrial | Non-owner occupied commercial real estate | Term Extension and Interest Only Payments | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 0 | |||
% of Loan Category | 0% | |||
Commercial and industrial | Non-owner occupied commercial real estate | Term Extension and Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 0 | |||
% of Loan Category | 0% | |||
Agricultural and agricultural real estate | Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 1,354 | $ 1,354 | ||
% of Loan Category | 0.16% | 0.16% | ||
Agricultural and agricultural real estate | Term Extension and Interest Only Payments | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 0 | $ 0 | ||
% of Loan Category | 0% | 0% | ||
Agricultural and agricultural real estate | Term Extension and Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 0 | $ 0 | ||
% of Loan Category | 0% | 0% | ||
Residential real estate | Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 1,348 | $ 1,348 | $ 752 | |
% of Loan Category | 0.18% | 0.18% | 0.09% | |
Residential real estate | Term Extension and Interest Only Payments | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 0 | $ 0 | $ 0 | |
% of Loan Category | 0% | 0% | 0% | |
Residential real estate | Term Extension and Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 0 | $ 0 | $ 0 | |
% of Loan Category | 0% | 0% | 0% | |
Consumer | Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 169 | $ 169 | ||
% of Loan Category | 0.04% | 0.04% | ||
Consumer | Term Extension and Interest Only Payments | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 0 | $ 0 | ||
% of Loan Category | 0% | 0% | ||
Consumer | Term Extension and Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis | $ 0 | |||
% of Loan Category | 0% |
LOANS (Financial effect of loan
LOANS (Financial effect of loan modifications) (Details) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Commercial and industrial | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Term Extension (months) | 9 months | |
Commercial and industrial | Commercial and industrial | Term Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Term Extension (months) | 6 months | |
Commercial and industrial | Commercial and industrial | Term Extension and Interest Only Payments | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Term Extension (months) | 0 months | |
Weighted Average Term Extension and Interest Only Payments (months) | 0 months | |
Commercial and industrial | Commercial and industrial | Term Extension and Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Term Extension (months) | 0 months | |
Weighted Average Term Extension and Interest Only Payments (months) | 0 months | |
Commercial and industrial | Owner occupied commercial real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Term Extension (months) | 0 months | |
Commercial and industrial | Owner occupied commercial real estate | Term Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Term Extension (months) | 4 months | |
Commercial and industrial | Owner occupied commercial real estate | Term Extension and Interest Only Payments | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Term Extension (months) | 0 months | |
Weighted Average Term Extension and Interest Only Payments (months) | 12 months | |
Commercial and industrial | Owner occupied commercial real estate | Term Extension and Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Term Extension (months) | 25 months | |
Weighted Average Term Extension and Interest Only Payments (months) | 0 months | |
Commercial and industrial | Real Estate Construction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Term Extension (months) | 6 months | |
Commercial and industrial | Real Estate Construction | Term Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Term Extension (months) | 4 months | |
Commercial and industrial | Real Estate Construction | Term Extension and Interest Only Payments | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Term Extension (months) | 0 months | |
Weighted Average Term Extension and Interest Only Payments (months) | 0 months | |
Commercial and industrial | Real Estate Construction | Term Extension and Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Term Extension (months) | 0 months | |
Weighted Average Term Extension and Interest Only Payments (months) | 0 months | |
Agricultural and agricultural real estate | Real Estate Construction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Term Extension (months) | 9 months | |
Agricultural and agricultural real estate | Real Estate Construction | Term Extension and Interest Only Payments | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Term Extension and Interest Only Payments (months) | 0 months | |
Agricultural and agricultural real estate | Real Estate Construction | Term Extension and Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Term Extension and Interest Only Payments (months) | 0 months | |
Residential real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Term Extension (months) | 12 months | |
Residential real estate | Term Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Term Extension (months) | 2 months | |
Residential real estate | Term Extension and Interest Only Payments | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Term Extension (months) | 0 months | |
Weighted Average Term Extension and Interest Only Payments (months) | 0 months | |
Residential real estate | Term Extension and Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Term Extension (months) | 0 months | |
Weighted Average Term Extension and Interest Only Payments (months) | 0 months | |
Consumer | Term Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Term Extension (months) | 86 months | |
Consumer | Term Extension and Interest Only Payments | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Term Extension (months) | 0 months | |
Consumer | Term Extension and Interest Rate Reduction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Term Extension (months) | 0 months |
LOANS (Accruing loans - aging a
LOANS (Accruing loans - aging analysis) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Nonaccrual | $ 103,123 | $ 95,426 | |
Nonaccrual | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | $ 2,229 | ||
Nonaccrual | 169 | ||
Total Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | 0 | |
30-59 Days Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | 0 | |
60-89 Days Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | 0 | |
90 Days or More Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | 0 | |
Current | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 6,083 | 11,470 | |
Commercial and industrial | Commercial and industrial | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Nonaccrual | 48,138 | 46,815 | |
Commercial and industrial | Commercial and industrial | Nonaccrual | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | ||
Nonaccrual | 0 | ||
Commercial and industrial | Commercial and industrial | Total Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | 0 | |
Commercial and industrial | Commercial and industrial | 30-59 Days Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | 0 | |
Commercial and industrial | Commercial and industrial | 60-89 Days Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | 0 | |
Commercial and industrial | Commercial and industrial | 90 Days or More Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | 0 | |
Commercial and industrial | Commercial and industrial | Current | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 267 | 5,073 | |
Commercial and industrial | Real Estate Construction | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Nonaccrual | 864 | 783 | |
Commercial and industrial | Real Estate Construction | Nonaccrual | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 1,477 | ||
Nonaccrual | 0 | ||
Commercial and industrial | Real Estate Construction | Total Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | 0 | |
Commercial and industrial | Real Estate Construction | 30-59 Days Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | 0 | |
Commercial and industrial | Real Estate Construction | 60-89 Days Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | 0 | |
Commercial and industrial | Real Estate Construction | 90 Days or More Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | 0 | |
Commercial and industrial | Real Estate Construction | Current | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 3,855 | 0 | |
Commercial and industrial | Owner occupied commercial real estate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Nonaccrual | 13,039 | 31,592 | |
Commercial and industrial | Owner occupied commercial real estate | Nonaccrual | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | ||
Commercial and industrial | Owner occupied commercial real estate | Total Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | ||
Commercial and industrial | Owner occupied commercial real estate | 30-59 Days Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | ||
Commercial and industrial | Owner occupied commercial real estate | 60-89 Days Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | ||
Commercial and industrial | Owner occupied commercial real estate | 90 Days or More Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | ||
Commercial and industrial | Owner occupied commercial real estate | Current | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 5,043 | ||
Commercial and industrial | Non-owner occupied commercial real estate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Nonaccrual | 135 | 367 | |
Commercial and industrial | Non-owner occupied commercial real estate | Nonaccrual | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Nonaccrual | 0 | ||
Commercial and industrial | Non-owner occupied commercial real estate | Total Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | ||
Commercial and industrial | Non-owner occupied commercial real estate | 30-59 Days Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | ||
Commercial and industrial | Non-owner occupied commercial real estate | 60-89 Days Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | ||
Commercial and industrial | Non-owner occupied commercial real estate | 90 Days or More Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | ||
Commercial and industrial | Non-owner occupied commercial real estate | Current | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 614 | ||
Agricultural and agricultural real estate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Nonaccrual | 34,065 | 9,210 | |
Agricultural and agricultural real estate | Nonaccrual | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | ||
Agricultural and agricultural real estate | Total Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | ||
Agricultural and agricultural real estate | 30-59 Days Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | ||
Agricultural and agricultural real estate | 60-89 Days Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | ||
Agricultural and agricultural real estate | 90 Days or More Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | ||
Agricultural and agricultural real estate | Current | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 1,354 | ||
Residential real estate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Nonaccrual | 5,503 | 5,086 | |
Residential real estate | Nonaccrual | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 752 | ||
Nonaccrual | 0 | ||
Residential real estate | Total Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | 0 | |
Residential real estate | 30-59 Days Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | 0 | |
Residential real estate | 60-89 Days Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | 0 | |
Residential real estate | 90 Days or More Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | 0 | |
Residential real estate | Current | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 1,347 | $ 0 | |
Consumer | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Nonaccrual | 1,379 | $ 1,573 | |
Consumer | Nonaccrual | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Nonaccrual | 169 | ||
Consumer | Total Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | ||
Consumer | 30-59 Days Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | ||
Consumer | 60-89 Days Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | ||
Consumer | 90 Days or More Past Due | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | 0 | ||
Consumer | Current | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Accruing Loans | $ 0 |
LOANS (Loans by credit quality
LOANS (Loans by credit quality indicator) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | $ 667,431 | $ 667,431 | $ 2,247,517 | ||
Year Two | 2,041,673 | 2,041,673 | 3,073,040 | ||
Year Three | 2,829,815 | 2,829,815 | 2,172,951 | ||
Year Four | 1,926,233 | 1,926,233 | 802,905 | ||
Year Five | 697,712 | 697,712 | 720,479 | ||
Year Six and Prior | 1,640,947 | 1,640,947 | 1,148,381 | ||
Revolving | 1,804,498 | 1,804,498 | 1,903,372 | ||
Total | 11,608,309 | 11,608,309 | 12,068,645 | ||
Charge-offs | |||||
Year One | 10 | 531 | |||
Year Two | 59 | 1,953 | |||
Year Three | 1,358 | 958 | |||
Year Four | 846 | 1,527 | |||
Year Five | 3,552 | 981 | |||
Year Six and Prior | 308 | 2,272 | |||
Revolving | 5,348 | 11,392 | |||
Total charge-offs | 7,388 | $ 9,613 | 11,481 | $ 11,764 | 19,614 |
Pass | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 641,750 | 641,750 | 2,085,645 | ||
Year Two | 1,896,034 | 1,896,034 | 2,901,425 | ||
Year Three | 2,566,916 | 2,566,916 | 2,128,112 | ||
Year Four | 1,824,676 | 1,824,676 | 773,698 | ||
Year Five | 661,487 | 661,487 | 651,885 | ||
Year Six and Prior | 1,409,680 | 1,409,680 | 1,012,958 | ||
Revolving | 1,661,918 | 1,661,918 | 1,838,626 | ||
Total | 10,662,461 | 10,662,461 | 11,392,349 | ||
Watch | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 21,393 | 21,393 | 103,921 | ||
Year Two | 105,773 | 105,773 | 130,920 | ||
Year Three | 136,393 | 136,393 | 33,047 | ||
Year Four | 80,661 | 80,661 | 11,501 | ||
Year Five | 9,919 | 9,919 | 38,127 | ||
Year Six and Prior | 144,675 | 144,675 | 73,492 | ||
Revolving | 90,499 | 90,499 | 31,236 | ||
Total | 589,313 | 589,313 | 422,244 | ||
Substandard | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 4,288 | 4,288 | 57,951 | ||
Year Two | 39,866 | 39,866 | 40,695 | ||
Year Three | 126,506 | 126,506 | 11,792 | ||
Year Four | 20,896 | 20,896 | 17,706 | ||
Year Five | 26,306 | 26,306 | 30,467 | ||
Year Six and Prior | 86,592 | 86,592 | 61,931 | ||
Revolving | 52,081 | 52,081 | 33,510 | ||
Total | 356,535 | 356,535 | 254,052 | ||
Commercial and industrial | Commercial and industrial | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 309,168 | 309,168 | 648,895 | ||
Year Two | 546,425 | 546,425 | 811,664 | ||
Year Three | 667,020 | 667,020 | 336,793 | ||
Year Four | 282,382 | 282,382 | 196,484 | ||
Year Five | 159,444 | 159,444 | 99,388 | ||
Year Six and Prior | 376,493 | 376,493 | 338,217 | ||
Revolving | 1,200,307 | 1,200,307 | 1,220,606 | ||
Total | 3,541,239 | 3,541,239 | 3,652,047 | ||
Charge-offs | |||||
Year One | 0 | 245 | |||
Year Two | 8 | 794 | |||
Year Three | 1,127 | 680 | |||
Year Four | 784 | 1,425 | |||
Year Five | 3,283 | 563 | |||
Year Six and Prior | 30 | 1,949 | |||
Revolving | 2,979 | 2,966 | |||
Total charge-offs | 5,914 | 3,686 | 8,211 | 5,137 | 8,622 |
Commercial and industrial | Commercial and industrial | Pass | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 295,000 | 295,000 | 608,030 | ||
Year Two | 512,146 | 512,146 | 779,218 | ||
Year Three | 618,107 | 618,107 | 333,900 | ||
Year Four | 261,964 | 261,964 | 187,406 | ||
Year Five | 154,860 | 154,860 | 78,455 | ||
Year Six and Prior | 358,689 | 358,689 | 327,775 | ||
Revolving | 1,068,196 | 1,068,196 | 1,159,397 | ||
Total | 3,268,962 | 3,268,962 | 3,474,181 | ||
Commercial and industrial | Commercial and industrial | Watch | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 13,856 | 13,856 | 20,694 | ||
Year Two | 28,148 | 28,148 | 19,788 | ||
Year Three | 32,584 | 32,584 | 257 | ||
Year Four | 18,695 | 18,695 | 3,631 | ||
Year Five | 833 | 833 | 2,398 | ||
Year Six and Prior | 8,763 | 8,763 | 2,953 | ||
Revolving | 81,055 | 81,055 | 28,749 | ||
Total | 183,934 | 183,934 | 78,470 | ||
Commercial and industrial | Commercial and industrial | Substandard | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 312 | 312 | 20,171 | ||
Year Two | 6,131 | 6,131 | 12,658 | ||
Year Three | 16,329 | 16,329 | 2,636 | ||
Year Four | 1,723 | 1,723 | 5,447 | ||
Year Five | 3,751 | 3,751 | 18,535 | ||
Year Six and Prior | 9,041 | 9,041 | 7,489 | ||
Revolving | 51,056 | 51,056 | 32,460 | ||
Total | 88,343 | 88,343 | 99,396 | ||
Commercial and industrial | Paycheck Protection Program ("PPP") | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 0 | 0 | 0 | ||
Year Two | 0 | 0 | 0 | ||
Year Three | 0 | 0 | 2,727 | ||
Year Four | 1,833 | 1,833 | 50 | ||
Year Five | 31 | 31 | 0 | ||
Year Six and Prior | 0 | 0 | 0 | ||
Revolving | 0 | 0 | 0 | ||
Total | 1,864 | 1,864 | 2,777 | ||
Charge-offs | |||||
Year One | 0 | 0 | |||
Year Two | 0 | 0 | |||
Year Three | 0 | 0 | |||
Year Four | 0 | 0 | |||
Year Five | 0 | 0 | |||
Year Six and Prior | 0 | 0 | |||
Revolving | 0 | 0 | |||
Total charge-offs | 0 | 0 | |||
Commercial and industrial | Paycheck Protection Program ("PPP") | Pass | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 0 | 0 | 0 | ||
Year Two | 0 | 0 | 0 | ||
Year Three | 0 | 0 | 2,591 | ||
Year Four | 1,610 | 1,610 | 50 | ||
Year Five | 31 | 31 | 0 | ||
Year Six and Prior | 0 | 0 | 0 | ||
Revolving | 0 | 0 | 0 | ||
Total | 1,641 | 1,641 | 2,641 | ||
Commercial and industrial | Paycheck Protection Program ("PPP") | Watch | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 0 | 0 | 0 | ||
Year Two | 0 | 0 | 0 | ||
Year Three | 0 | 0 | 89 | ||
Year Four | 223 | 223 | 0 | ||
Year Five | 0 | 0 | 0 | ||
Year Six and Prior | 0 | 0 | 0 | ||
Revolving | 0 | 0 | 0 | ||
Total | 223 | 223 | 89 | ||
Commercial and industrial | Paycheck Protection Program ("PPP") | Substandard | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 0 | 0 | 0 | ||
Year Two | 0 | 0 | 0 | ||
Year Three | 0 | 0 | 47 | ||
Year Four | 0 | 0 | 0 | ||
Year Five | 0 | 0 | 0 | ||
Year Six and Prior | 0 | 0 | 0 | ||
Revolving | 0 | 0 | 0 | ||
Total | 0 | 0 | 47 | ||
Commercial and industrial | Owner occupied commercial real estate | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 113,538 | 113,538 | 483,639 | ||
Year Two | 453,622 | 453,622 | 584,334 | ||
Year Three | 579,995 | 579,995 | 815,360 | ||
Year Four | 727,324 | 727,324 | 239,528 | ||
Year Five | 224,087 | 224,087 | 239,910 | ||
Year Six and Prior | 414,400 | 414,400 | 234,332 | ||
Revolving | 42,998 | 42,998 | 41,072 | ||
Total | 2,555,964 | 2,555,964 | 2,638,175 | ||
Charge-offs | |||||
Year One | 0 | 0 | |||
Year Two | 0 | 802 | |||
Year Three | 87 | 0 | |||
Year Four | 0 | 5 | |||
Year Five | 248 | 0 | |||
Year Six and Prior | 62 | 63 | |||
Revolving | 0 | 0 | |||
Total charge-offs | 397 | 5 | 397 | 19 | 870 |
Commercial and industrial | Owner occupied commercial real estate | Pass | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 110,750 | 110,750 | 443,683 | ||
Year Two | 425,238 | 425,238 | 547,898 | ||
Year Three | 510,666 | 510,666 | 799,978 | ||
Year Four | 711,407 | 711,407 | 225,257 | ||
Year Five | 200,668 | 200,668 | 225,405 | ||
Year Six and Prior | 368,105 | 368,105 | 224,608 | ||
Revolving | 42,998 | 42,998 | 41,072 | ||
Total | 2,369,832 | 2,369,832 | 2,507,901 | ||
Commercial and industrial | Owner occupied commercial real estate | Watch | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 2,788 | 2,788 | 8,052 | ||
Year Two | 4,983 | 4,983 | 25,947 | ||
Year Three | 36,793 | 36,793 | 13,114 | ||
Year Four | 11,004 | 11,004 | 2,662 | ||
Year Five | 2,920 | 2,920 | 8,115 | ||
Year Six and Prior | 39,109 | 39,109 | 7,553 | ||
Revolving | 0 | 0 | 0 | ||
Total | 97,597 | 97,597 | 65,443 | ||
Commercial and industrial | Owner occupied commercial real estate | Substandard | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 0 | 0 | 31,904 | ||
Year Two | 23,401 | 23,401 | 10,489 | ||
Year Three | 32,536 | 32,536 | 2,268 | ||
Year Four | 4,913 | 4,913 | 11,609 | ||
Year Five | 20,499 | 20,499 | 6,390 | ||
Year Six and Prior | 7,186 | 7,186 | 2,171 | ||
Revolving | 0 | 0 | 0 | ||
Total | 88,535 | 88,535 | 64,831 | ||
Commercial and industrial | Non-owner occupied commercial real estate | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 79,275 | 79,275 | 557,126 | ||
Year Two | 491,074 | 491,074 | 692,427 | ||
Year Three | 692,961 | 692,961 | 433,048 | ||
Year Four | 414,903 | 414,903 | 207,164 | ||
Year Five | 185,171 | 185,171 | 294,124 | ||
Year Six and Prior | 554,062 | 554,062 | 342,844 | ||
Revolving | 16,812 | 16,812 | 26,978 | ||
Total | 2,434,258 | 2,434,258 | 2,553,711 | ||
Charge-offs | |||||
Year One | 0 | 0 | |||
Year Two | 0 | 52 | |||
Year Three | 0 | 0 | |||
Year Four | 0 | 29 | |||
Year Five | 0 | 399 | |||
Year Six and Prior | 0 | 147 | |||
Revolving | 0 | 0 | |||
Total charge-offs | 0 | 29 | 0 | 29 | 627 |
Commercial and industrial | Non-owner occupied commercial real estate | Pass | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 75,332 | 75,332 | 480,683 | ||
Year Two | 423,879 | 423,879 | 656,824 | ||
Year Three | 648,769 | 648,769 | 423,420 | ||
Year Four | 401,764 | 401,764 | 203,330 | ||
Year Five | 181,074 | 181,074 | 262,541 | ||
Year Six and Prior | 434,109 | 434,109 | 251,499 | ||
Revolving | 16,812 | 16,812 | 26,978 | ||
Total | 2,181,739 | 2,181,739 | 2,305,275 | ||
Commercial and industrial | Non-owner occupied commercial real estate | Watch | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 3,943 | 3,943 | 71,400 | ||
Year Two | 67,195 | 67,195 | 34,651 | ||
Year Three | 44,057 | 44,057 | 8,237 | ||
Year Four | 4,601 | 4,601 | 3,834 | ||
Year Five | 4,097 | 4,097 | 27,345 | ||
Year Six and Prior | 67,735 | 67,735 | 57,083 | ||
Revolving | 0 | 0 | 0 | ||
Total | 191,628 | 191,628 | 202,550 | ||
Commercial and industrial | Non-owner occupied commercial real estate | Substandard | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 0 | 0 | 5,043 | ||
Year Two | 0 | 0 | 952 | ||
Year Three | 135 | 135 | 1,391 | ||
Year Four | 8,538 | 8,538 | 0 | ||
Year Five | 0 | 0 | 4,238 | ||
Year Six and Prior | 52,218 | 52,218 | 34,262 | ||
Revolving | 0 | 0 | 0 | ||
Total | 60,891 | 60,891 | 45,886 | ||
Commercial and industrial | Real estate construction | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 67,207 | 67,207 | 284,148 | ||
Year Two | 333,642 | 333,642 | 510,388 | ||
Year Three | 482,872 | 482,872 | 186,022 | ||
Year Four | 148,974 | 148,974 | 10,068 | ||
Year Five | 7,615 | 7,615 | 11,048 | ||
Year Six and Prior | 35,006 | 35,006 | 3,470 | ||
Revolving | 7,410 | 7,410 | 6,572 | ||
Total | 1,082,726 | 1,082,726 | 1,011,716 | ||
Charge-offs | |||||
Year One | 0 | 284 | |||
Year Two | 0 | 0 | |||
Year Three | 0 | 0 | |||
Year Four | 0 | 32 | |||
Year Five | 0 | 0 | |||
Year Six and Prior | 0 | 0 | |||
Revolving | 0 | 0 | |||
Total charge-offs | 0 | 0 | 0 | 0 | 316 |
Commercial and industrial | Real estate construction | Pass | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 64,091 | 64,091 | 283,519 | ||
Year Two | 323,350 | 323,350 | 468,646 | ||
Year Three | 404,646 | 404,646 | 176,604 | ||
Year Four | 104,823 | 104,823 | 9,889 | ||
Year Five | 7,544 | 7,544 | 11,048 | ||
Year Six and Prior | 10,269 | 10,269 | 3,405 | ||
Revolving | 7,324 | 7,324 | 6,486 | ||
Total | 922,047 | 922,047 | 959,597 | ||
Commercial and industrial | Real estate construction | Watch | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 0 | 0 | 629 | ||
Year Two | 917 | 917 | 33,220 | ||
Year Three | 20,576 | 20,576 | 9,418 | ||
Year Four | 44,063 | 44,063 | 72 | ||
Year Five | 71 | 71 | 0 | ||
Year Six and Prior | 24,656 | 24,656 | 65 | ||
Revolving | 0 | 0 | 0 | ||
Total | 90,283 | 90,283 | 43,404 | ||
Commercial and industrial | Real estate construction | Substandard | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 3,116 | 3,116 | 0 | ||
Year Two | 9,375 | 9,375 | 8,522 | ||
Year Three | 57,650 | 57,650 | 0 | ||
Year Four | 88 | 88 | 107 | ||
Year Five | 0 | 0 | 0 | ||
Year Six and Prior | 81 | 81 | 0 | ||
Revolving | 86 | 86 | 86 | ||
Total | 70,396 | 70,396 | 8,715 | ||
Agricultural and agricultural real estate | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 52,041 | 52,041 | 154,922 | ||
Year Two | 116,849 | 116,849 | 232,248 | ||
Year Three | 198,973 | 198,973 | 116,740 | ||
Year Four | 101,346 | 101,346 | 67,632 | ||
Year Five | 51,446 | 51,446 | 29,172 | ||
Year Six and Prior | 70,717 | 70,717 | 56,603 | ||
Revolving | 211,586 | 211,586 | 261,867 | ||
Total | 802,958 | 802,958 | 919,184 | ||
Charge-offs | |||||
Year One | 0 | 0 | |||
Year Two | 0 | 0 | |||
Year Three | 52 | 0 | |||
Year Four | 0 | 9 | |||
Year Five | 8 | 0 | |||
Year Six and Prior | 167 | 1 | |||
Revolving | 648 | 5,309 | |||
Total charge-offs | 608 | 5,309 | 875 | 5,309 | 5,319 |
Agricultural and agricultural real estate | Pass | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 50,760 | 50,760 | 152,665 | ||
Year Two | 113,573 | 113,573 | 208,375 | ||
Year Three | 178,283 | 178,283 | 114,798 | ||
Year Four | 98,886 | 98,886 | 67,006 | ||
Year Five | 49,712 | 49,712 | 28,247 | ||
Year Six and Prior | 58,360 | 58,360 | 43,663 | ||
Revolving | 204,938 | 204,938 | 260,941 | ||
Total | 754,512 | 754,512 | 875,695 | ||
Agricultural and agricultural real estate | Watch | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 755 | 755 | 2,245 | ||
Year Two | 3,095 | 3,095 | 16,257 | ||
Year Three | 1,291 | 1,291 | 293 | ||
Year Four | 420 | 420 | 622 | ||
Year Five | 152 | 152 | 70 | ||
Year Six and Prior | 73 | 73 | 349 | ||
Revolving | 6,648 | 6,648 | 427 | ||
Total | 12,434 | 12,434 | 20,263 | ||
Agricultural and agricultural real estate | Substandard | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 526 | 526 | 12 | ||
Year Two | 181 | 181 | 7,616 | ||
Year Three | 19,399 | 19,399 | 1,649 | ||
Year Four | 2,040 | 2,040 | 4 | ||
Year Five | 1,582 | 1,582 | 855 | ||
Year Six and Prior | 12,284 | 12,284 | 12,591 | ||
Revolving | 0 | 0 | 499 | ||
Total | 36,012 | 36,012 | 23,226 | ||
Residential real estate | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 26,826 | 26,826 | 72,382 | ||
Year Two | 62,309 | 62,309 | 178,687 | ||
Year Three | 156,632 | 156,632 | 245,707 | ||
Year Four | 219,656 | 219,656 | 74,152 | ||
Year Five | 66,660 | 66,660 | 42,974 | ||
Year Six and Prior | 181,381 | 181,381 | 164,393 | ||
Revolving | 19,937 | 19,937 | 19,534 | ||
Total | 733,401 | 733,401 | 797,829 | ||
Charge-offs | |||||
Year One | 0 | 0 | |||
Year Two | 0 | 59 | |||
Year Three | 0 | 124 | |||
Year Four | 0 | 0 | |||
Year Five | 0 | 0 | |||
Year Six and Prior | 0 | 0 | |||
Revolving | 0 | 0 | |||
Total charge-offs | 0 | 59 | 0 | 59 | 183 |
Residential real estate | Pass | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 26,824 | 26,824 | 71,470 | ||
Year Two | 61,048 | 61,048 | 177,564 | ||
Year Three | 155,494 | 155,494 | 241,362 | ||
Year Four | 214,982 | 214,982 | 73,029 | ||
Year Five | 64,465 | 64,465 | 42,526 | ||
Year Six and Prior | 173,439 | 173,439 | 155,899 | ||
Revolving | 19,687 | 19,687 | 19,534 | ||
Total | 715,939 | 715,939 | 781,384 | ||
Residential real estate | Watch | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 2 | 2 | 171 | ||
Year Two | 534 | 534 | 973 | ||
Year Three | 998 | 998 | 945 | ||
Year Four | 1,452 | 1,452 | 659 | ||
Year Five | 1,829 | 1,829 | 158 | ||
Year Six and Prior | 3,537 | 3,537 | 4,845 | ||
Revolving | 250 | 250 | 0 | ||
Total | 8,602 | 8,602 | 7,751 | ||
Residential real estate | Substandard | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 0 | 0 | 741 | ||
Year Two | 727 | 727 | 150 | ||
Year Three | 140 | 140 | 3,400 | ||
Year Four | 3,222 | 3,222 | 464 | ||
Year Five | 366 | 366 | 290 | ||
Year Six and Prior | 4,405 | 4,405 | 3,649 | ||
Revolving | 0 | 0 | 0 | ||
Total | 8,860 | 8,860 | 8,694 | ||
Consumer | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 19,376 | 19,376 | 46,405 | ||
Year Two | 37,752 | 37,752 | 63,292 | ||
Year Three | 51,362 | 51,362 | 36,554 | ||
Year Four | 29,815 | 29,815 | 7,827 | ||
Year Five | 3,258 | 3,258 | 3,863 | ||
Year Six and Prior | 8,888 | 8,888 | 8,522 | ||
Revolving | 305,448 | 305,448 | 326,743 | ||
Total | 455,899 | 455,899 | 493,206 | ||
Charge-offs | |||||
Year One | 10 | 2 | |||
Year Two | 51 | 246 | |||
Year Three | 92 | 154 | |||
Year Four | 62 | 27 | |||
Year Five | 13 | 19 | |||
Year Six and Prior | 49 | 112 | |||
Revolving | 1,721 | 3,117 | |||
Total charge-offs | 469 | $ 525 | 1,998 | $ 1,211 | 3,677 |
Consumer | Pass | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 18,993 | 18,993 | 45,595 | ||
Year Two | 36,800 | 36,800 | 62,900 | ||
Year Three | 50,951 | 50,951 | 35,459 | ||
Year Four | 29,240 | 29,240 | 7,731 | ||
Year Five | 3,133 | 3,133 | 3,663 | ||
Year Six and Prior | 6,709 | 6,709 | 6,109 | ||
Revolving | 301,963 | 301,963 | 324,218 | ||
Total | 447,789 | 447,789 | 485,675 | ||
Consumer | Watch | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 49 | 49 | 730 | ||
Year Two | 901 | 901 | 84 | ||
Year Three | 94 | 94 | 694 | ||
Year Four | 203 | 203 | 21 | ||
Year Five | 17 | 17 | 41 | ||
Year Six and Prior | 802 | 802 | 644 | ||
Revolving | 2,546 | 2,546 | 2,060 | ||
Total | 4,612 | 4,612 | 4,274 | ||
Consumer | Substandard | |||||
Amortized Cost Basis of Term Loans by Year of Origination | |||||
Year One | 334 | 334 | 80 | ||
Year Two | 51 | 51 | 308 | ||
Year Three | 317 | 317 | 401 | ||
Year Four | 372 | 372 | 75 | ||
Year Five | 108 | 108 | 159 | ||
Year Six and Prior | 1,377 | 1,377 | 1,769 | ||
Revolving | 939 | 939 | 465 | ||
Total | $ 3,498 | $ 3,498 | $ 3,257 |
LOANS (Past due financing recei
LOANS (Past due financing receivables) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 103,123 | $ 95,426 |
Total Loans | 11,608,309 | 12,068,645 |
Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 29,405 | 13,477 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 23,883 | 7,704 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 4,859 | 3,266 |
90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 663 | 2,507 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 11,475,781 | 11,959,742 |
Commercial and industrial | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 48,138 | 46,815 |
Total Loans | 3,541,239 | 3,652,047 |
Commercial and industrial | Commercial and industrial | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 9,782 | 4,067 |
Commercial and industrial | Commercial and industrial | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 7,061 | 1,738 |
Commercial and industrial | Commercial and industrial | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 2,470 | 126 |
Commercial and industrial | Commercial and industrial | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 251 | 2,203 |
Commercial and industrial | Commercial and industrial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 3,483,319 | 3,601,165 |
Commercial and industrial | Paycheck Protection Program ("PPP") | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 0 | 0 |
Total Loans | 1,864 | 2,777 |
Commercial and industrial | Paycheck Protection Program ("PPP") | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 0 | 147 |
Commercial and industrial | Paycheck Protection Program ("PPP") | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 0 | 94 |
Commercial and industrial | Paycheck Protection Program ("PPP") | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 0 | 53 |
Commercial and industrial | Paycheck Protection Program ("PPP") | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 0 | 0 |
Commercial and industrial | Paycheck Protection Program ("PPP") | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,864 | 2,630 |
Commercial and industrial | Owner occupied commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 13,039 | 31,592 |
Total Loans | 2,555,964 | 2,638,175 |
Commercial and industrial | Owner occupied commercial real estate | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 3,544 | 2,943 |
Commercial and industrial | Owner occupied commercial real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 3,471 | 205 |
Commercial and industrial | Owner occupied commercial real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 73 | 2,664 |
Commercial and industrial | Owner occupied commercial real estate | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 0 | 74 |
Commercial and industrial | Owner occupied commercial real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 2,539,381 | 2,603,640 |
Commercial and industrial | Non-owner occupied commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 135 | 367 |
Total Loans | 2,434,258 | 2,553,711 |
Commercial and industrial | Non-owner occupied commercial real estate | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 0 | 875 |
Commercial and industrial | Non-owner occupied commercial real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 0 | 875 |
Commercial and industrial | Non-owner occupied commercial real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 0 | 0 |
Commercial and industrial | Non-owner occupied commercial real estate | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 0 | 0 |
Commercial and industrial | Non-owner occupied commercial real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 2,434,123 | 2,552,469 |
Commercial and industrial | Real estate construction | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 864 | 783 |
Total Loans | 1,082,726 | 1,011,716 |
Commercial and industrial | Real estate construction | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 11,382 | 332 |
Commercial and industrial | Real estate construction | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 9,519 | 332 |
Commercial and industrial | Real estate construction | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,863 | 0 |
Commercial and industrial | Real estate construction | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 0 | 0 |
Commercial and industrial | Real estate construction | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,070,480 | 1,010,601 |
Agricultural and agricultural real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 34,065 | 9,210 |
Total Loans | 802,958 | 919,184 |
Agricultural and agricultural real estate | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 612 | 133 |
Agricultural and agricultural real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 245 | 121 |
Agricultural and agricultural real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 18 | 0 |
Agricultural and agricultural real estate | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 349 | 12 |
Agricultural and agricultural real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 768,281 | 909,841 |
Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 5,503 | 5,086 |
Total Loans | 733,401 | 797,829 |
Residential real estate | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,526 | 2,376 |
Residential real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,321 | 2,082 |
Residential real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 205 | 273 |
Residential real estate | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 0 | 21 |
Residential real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 726,372 | 790,367 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 1,379 | 1,573 |
Total Loans | 455,899 | 493,206 |
Consumer | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 2,559 | 2,604 |
Consumer | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 2,266 | 2,257 |
Consumer | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 230 | 150 |
Consumer | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 63 | 197 |
Consumer | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | $ 451,961 | $ 489,029 |
ALLOWANCE FOR CREDIT LOSSES - S
ALLOWANCE FOR CREDIT LOSSES - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning Balance | $ 123,934 | $ 112,707 | $ 122,566 | $ 109,483 | $ 109,483 |
Charge-offs | (7,388) | (9,613) | (11,481) | (11,764) | (19,614) |
Recoveries | 578 | 275 | 2,371 | 3,466 | |
Provision (benefit) | 9,737 | 7,829 | 13,405 | 10,013 | |
Ending Balance | 126,861 | 111,198 | 126,861 | 111,198 | 122,566 |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||||
Beginning balance | 13,786 | 21,086 | 16,468 | 20,196 | 20,196 |
Provision (benefit) | (729) | (2,450) | (3,411) | (1,560) | |
Ending balance | 13,057 | 18,636 | 13,057 | 18,636 | 16,468 |
Agricultural and Agricultural Real Estate | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning Balance | 5,108 | 2,546 | 4,292 | 2,634 | 2,634 |
Charge-offs | (608) | (5,309) | (875) | (5,309) | (5,319) |
Recoveries | 9 | 1 | 9 | 11 | |
Provision (benefit) | 4,396 | 6,273 | 5,479 | 6,175 | |
Ending Balance | 8,905 | 3,511 | 8,905 | 3,511 | 4,292 |
Residential Real Estate | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning Balance | 5,155 | 7,564 | 5,845 | 7,711 | 7,711 |
Charge-offs | 0 | (59) | 0 | (59) | (183) |
Recoveries | 70 | 0 | 105 | 19 | |
Provision (benefit) | (189) | 139 | (914) | (27) | |
Ending Balance | 5,036 | 7,644 | 5,036 | 7,644 | 5,845 |
Consumer | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning Balance | 7,476 | 9,423 | 8,572 | 9,582 | 9,582 |
Charge-offs | (469) | (525) | (1,998) | (1,211) | (3,677) |
Recoveries | 329 | 154 | 1,525 | 1,465 | |
Provision (benefit) | 163 | 664 | (600) | (120) | |
Ending Balance | 7,499 | 9,716 | 7,499 | 9,716 | 8,572 |
Commercial and Industrial | Commercial and industrial | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning Balance | 41,105 | 31,823 | 40,679 | 29,071 | 29,071 |
Charge-offs | (5,914) | (3,686) | (8,211) | (5,137) | (8,622) |
Recoveries | 170 | 118 | 732 | 1,840 | |
Provision (benefit) | 9,439 | 1,141 | 11,600 | 3,622 | |
Ending Balance | 44,800 | 29,396 | 44,800 | 29,396 | 40,679 |
Owner occupied commercial real estate | Commercial and industrial | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning Balance | 14,395 | 14,151 | 17,156 | 13,948 | 13,948 |
Charge-offs | (397) | (5) | (397) | (19) | (870) |
Recoveries | 0 | 0 | 0 | 112 | |
Provision (benefit) | 716 | 563 | (2,045) | 668 | |
Ending Balance | 14,714 | 14,709 | 14,714 | 14,709 | 17,156 |
Non-owner occupied commercial real estate | Commercial and industrial | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning Balance | 15,770 | 17,062 | 17,249 | 16,539 | 16,539 |
Charge-offs | 0 | (29) | 0 | (29) | (627) |
Recoveries | 0 | 0 | 0 | 0 | |
Provision (benefit) | (2,073) | 943 | (3,552) | 1,466 | |
Ending Balance | 13,697 | 17,976 | 13,697 | 17,976 | 17,249 |
Real Estate Construction | Commercial and industrial | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning Balance | 34,925 | 30,138 | 28,773 | 29,998 | 29,998 |
Charge-offs | 0 | 0 | 0 | 0 | (316) |
Recoveries | 0 | 2 | 0 | 19 | |
Provision (benefit) | (2,715) | (1,894) | 3,437 | (1,771) | |
Ending Balance | $ 32,210 | $ 28,246 | $ 32,210 | $ 28,246 | $ 28,773 |
ALLOWANCE FOR CREDIT LOSSES - N
ALLOWANCE FOR CREDIT LOSSES - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans transferred to held for sale | $ 348,761 | $ 0 |
Rocky Mountain Bank | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, excluding accrued interest, transfer out, expense reversal | 2,600 | |
Loans transferred to held for sale | $ 348,800 |
GOODWILL AND CORE DEPOSIT INT_3
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS (Narrative) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 576,005,000 | $ 576,005,000 |
Goodwill impairment | $ 0 |
GOODWILL AND CORE DEPOSIT INT_4
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS (Carrying amount of intangible assets (including accumulated amortization) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 101,185 | $ 101,185 |
Accumulated Amortization | 85,684 | 82,770 |
Net Carrying Amount | 15,501 | 18,415 |
Core deposit intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 101,185 | 101,185 |
Accumulated Amortization | 85,684 | 82,770 |
Net Carrying Amount | $ 15,501 | $ 18,415 |
GOODWILL AND CORE DEPOSIT INT_5
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS (Estimated future amortization expense for amortizable intangible assets) (Details) - Core Deposit Intangibles $ in Thousands | Jun. 30, 2024 USD ($) |
Future amortization expense for amortizable intangible assets [Line Items] | |
Six months ending December 31, 2024 | $ 2,677 |
Year ending December 31, | |
2025 | 4,700 |
2026 | 3,533 |
2027 | 2,601 |
2028 | 1,287 |
2029 | 466 |
Thereafter | 237 |
Total | $ 15,501 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Derivatives narrative) (Details) - Interest rate swap - Back-to-Back Loan Swaps - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative [Line Items] | ||
Cash pledged as collateral | $ 591 | $ 27,700 |
Counterparties | ||
Derivative [Line Items] | ||
Cash pledged as collateral | $ 104,500 | $ 44,800 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS (Cash flow hedges narrative) (Details) | 3 Months Ended | ||
Mar. 31, 2023 USD ($) | Jun. 30, 2024 USD ($) | Dec. 31, 2021 swap | |
Derivative [Line Items] | |||
Estimated amount to be reclassified from accumulated other comprehensive income to interest expense | $ 982,000 | ||
Interest rate swap | Other assets | |||
Derivative [Line Items] | |||
Notional amount | $ 0 | ||
Interest rate swap | Cash Flow Hedges | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 500,000,000 | ||
Unaffiliated Bank | |||
Derivative [Line Items] | |||
Derivative, number of swaps | swap | 1 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS (Gains (Losses) Recognized on Derivatives (Cash Flow Hedges)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI | $ 0 | $ 0 | $ 0 | $ 1,952 |
Amount of Gain (Loss) Reclassed from AOCI into Income | 245 | 63 | 210 | (701) |
Derivative financial instruments | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI | 0 | 0 | 0 | 1,952 |
Interest Income | Derivative financial instruments | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Amount of Gain (Loss) Reclassed from AOCI into Income | $ 245 | $ 63 | $ 210 | $ (701) |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS (Fair value hedges narrative) (Details) - Fair Value Hedging $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Interest Rate Swap, Conversion From Fixed To Floating Rates | |
Derivative [Line Items] | |
Derivative, notional amount, executed | $ 2,500 |
Interest Rate Swap, Protection For Unrealized Securities Losses | |
Derivative [Line Items] | |
Derivative, notional amount, executed | $ 838.1 |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS (Fair value hedges balance sheet category and fair values) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Interest rate swaps-securities carried at fair value | ||
Derivative [Line Items] | ||
Fair Value Assets | $ 14,914 | $ 5,027 |
Hedged Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Fair Value Liabilities | $ 2,267 | $ 27,554 |
Interest rate swaps-loans receivable held to maturity | ||
Derivative [Line Items] | ||
Fair Value Assets | $ 51,297 | $ 23,182 |
Hedged Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
DERIVATIVE FINANCIAL INSTRUME_8
DERIVATIVE FINANCIAL INSTRUMENTS (Carrying amount of hedged assets and fair value hedging adjustment) (Details) - Interest rate swap - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Loans receivable held to maturity | ||
Derivative [Line Items] | ||
Carrying Amount of the Hedged Assets | $ 2,489,744 | $ 2,525,261 |
Cumulative Amount of Fair Value Hedging Adjustment Included in Carrying Amount of Hedged Assets | (10,762) | 24,652 |
Securities carried at fair value | ||
Derivative [Line Items] | ||
Carrying Amount of the Hedged Assets | 734,510 | 786,716 |
Cumulative Amount of Fair Value Hedging Adjustment Included in Carrying Amount of Hedged Assets | $ (49,140) | $ (20,979) |
DERIVATIVE FINANCIAL INSTRUME_9
DERIVATIVE FINANCIAL INSTRUMENTS (Fair value hedges gains (losses) recognized) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total amount of interest and fees on loans | $ 199,161 | $ 168,899 | $ 394,822 | $ 322,742 |
Total amount of interest on securities-taxable | 47,381 | 58,172 | 94,395 | 114,148 |
Gain (loss) recognized in interest income and fees on loans | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in interest income and fees on loans | 7 | 3 | 15 | 3 |
Gain (loss) recognized in interest income on securities-taxable | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in interest income and fees on loans | $ (85) | $ 74 | $ (388) | $ 74 |
DERIVATIVE FINANCIAL INSTRUM_10
DERIVATIVE FINANCIAL INSTRUMENTS (Effects of Fair Value Hedging) (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Loans Receivable | ||||
Derivative [Line Items] | ||||
Hedged item | $ (4,870) | $ (12,897) | $ (35,399) | $ (12,882) |
Derivatives designated as hedging instruments | 4,877 | 12,900 | 35,414 | 12,885 |
Securities (Assets) | ||||
Derivative [Line Items] | ||||
Hedged item | (8,398) | (29,510) | (28,549) | (29,510) |
Derivatives designated as hedging instruments | $ 8,313 | $ 29,584 | $ 28,161 | $ 29,584 |
DERIVATIVE FINANCIAL INSTRUM_11
DERIVATIVE FINANCIAL INSTRUMENTS (Embedded derivatives balance sheet category and fair values) (Details) - Embedded derivatives - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative [Line Items] | ||
Notional Amount | $ 2,296 | $ 2,391 |
Fair Value | $ 62 | $ 61 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
DERIVATIVE FINANCIAL INSTRUM_12
DERIVATIVE FINANCIAL INSTRUMENTS (Embedded derivatives gain (losses) recognized) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Other noninterest income | ||||
Derivative [Line Items] | ||||
Gain (loss) recognized in other noninterest income on embedded derivatives | $ (8) | $ 20 | $ 1 | $ (17) |
DERIVATIVE FINANCIAL INSTRUM_13
DERIVATIVE FINANCIAL INSTRUMENTS (Back-to-back loan swaps narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Back-to-Back Loan Swaps | ||||
Derivative [Line Items] | ||||
Fee Income | $ 1,600 | $ 3,100 | $ 2,500 | $ 5,100 |
DERIVATIVE FINANCIAL INSTRUM_14
DERIVATIVE FINANCIAL INSTRUMENTS (Back-to-back loan swaps balance sheet category and fair values) (Details) - Back-to-Back Loan Swaps - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Other assets | ||
Derivative [Line Items] | ||
Notional Amount | $ 1,844,969 | $ 1,672,729 |
Fair Value | 62,576 | 56,634 |
Other liabilities | ||
Derivative [Line Items] | ||
Notional Amount | 1,844,969 | 1,672,729 |
Fair Value | $ (62,576) | $ (56,634) |
DERIVATIVE FINANCIAL INSTRUM_15
DERIVATIVE FINANCIAL INSTRUMENTS (Other free standing derivatives balance sheet category and fair values) (Details) - Other liabilities - Undesignated interest rate swaps - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 2,296 | $ 2,391 |
Fair Value | $ (62) | $ (61) |
DERIVATIVE FINANCIAL INSTRUM_16
DERIVATIVE FINANCIAL INSTRUMENTS (Other free standing derivatives gains (losses) recognized) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Interest rate lock commitments (mortgage) | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Gains (losses) recognized in income | $ 0 | $ (128) | $ 0 | $ 282 |
Forward commitments | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Gains (losses) recognized in income | 0 | (181) | 0 | 91 |
Undesignated interest rate swaps | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Gains (losses) recognized in income | $ 8 | $ (20) | $ (1) | $ 17 |
FAIR VALUE (Narrative) (Details
FAIR VALUE (Narrative) (Details) $ in Thousands | Jun. 30, 2024 USD ($) | Feb. 28, 2024 bank | Dec. 31, 2023 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Loans held for sale | $ 348,761 | $ 5,071 | |
Premises, furniture and equipment held for sale | 16,181 | $ 4,069 | |
Rocky Mountain Bank | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Loans held for sale | 348,800 | ||
Premises, furniture and equipment held for sale | $ 13,200 | ||
Disposal group, number of bank branches | bank | 9 |
FAIR VALUE (Fair value measurem
FAIR VALUE (Fair value measurement recurring) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Securities available for sale | $ 873,218 | |
Equity securities with a readily determinable fair value | 21,586 | $ 21,056 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Securities available for sale | 15,847 | 32,118 |
Derivative financial instrument | 0 | 0 |
Liabilities | ||
Derivative financial instrument | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Securities available for sale | 4,169,207 | 4,614,773 |
Derivative financial instrument | 128,849 | 84,904 |
Liabilities | ||
Derivative financial instrument | 64,905 | 84,249 |
Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Derivative financial instrument | 0 | 0 |
Liabilities | ||
Derivative financial instrument | 0 | 0 |
U.S. treasuries | ||
Assets | ||
Securities available for sale | 15,847 | 32,118 |
U.S. agencies | ||
Assets | ||
Securities available for sale | 12,600 | 14,530 |
Obligations of states and political subdivisions | ||
Assets | ||
Securities available for sale | 724,465 | 741,245 |
Commercial mortgage-backed securities - agency | ||
Assets | ||
Securities available for sale | 60,501 | 64,788 |
Commercial mortgage-backed securities - non-agency | ||
Assets | ||
Securities available for sale | 387,939 | 514,858 |
Asset-backed securities | ||
Assets | ||
Securities available for sale | 176,382 | 217,370 |
Corporate bonds | ||
Assets | ||
Securities available for sale | 120,306 | 118,169 |
Recurring Basis | ||
Assets | ||
Equity securities with a readily determinable fair value | 21,586 | 21,056 |
Total assets at fair value | 4,313,903 | 4,731,795 |
Liabilities | ||
Total liabilities at fair value | 64,905 | 84,249 |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Equity securities with a readily determinable fair value | 0 | 0 |
Total assets at fair value | 15,847 | 32,118 |
Liabilities | ||
Total liabilities at fair value | 0 | 0 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Equity securities with a readily determinable fair value | 21,586 | 21,056 |
Total assets at fair value | 4,298,056 | 4,699,677 |
Liabilities | ||
Total liabilities at fair value | 64,905 | 84,249 |
Recurring Basis | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Equity securities with a readily determinable fair value | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities | ||
Total liabilities at fair value | 0 | 0 |
Recurring Basis | Derivative financial instruments | ||
Assets | ||
Derivative financial instrument | 128,849 | 84,904 |
Liabilities | ||
Derivative financial instrument | 64,905 | 84,249 |
Recurring Basis | Derivative financial instruments | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Derivative financial instrument | 0 | 0 |
Liabilities | ||
Derivative financial instrument | 0 | 0 |
Recurring Basis | Derivative financial instruments | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Derivative financial instrument | 128,849 | 84,904 |
Liabilities | ||
Derivative financial instrument | 64,905 | 84,249 |
Recurring Basis | Derivative financial instruments | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Derivative financial instrument | 0 | 0 |
Liabilities | ||
Derivative financial instrument | 0 | 0 |
Recurring Basis | U.S. treasuries | ||
Assets | ||
Securities available for sale | 15,847 | 32,118 |
Recurring Basis | U.S. treasuries | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Securities available for sale | 15,847 | 32,118 |
Recurring Basis | U.S. treasuries | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | U.S. treasuries | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | U.S. agencies | ||
Assets | ||
Securities available for sale | 12,600 | 14,530 |
Recurring Basis | U.S. agencies | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | U.S. agencies | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Securities available for sale | 12,600 | 14,530 |
Recurring Basis | U.S. agencies | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Obligations of states and political subdivisions | ||
Assets | ||
Securities available for sale | 724,465 | 741,245 |
Recurring Basis | Obligations of states and political subdivisions | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Obligations of states and political subdivisions | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Securities available for sale | 724,465 | 741,245 |
Recurring Basis | Obligations of states and political subdivisions | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Mortgage-backed securities - agency | ||
Assets | ||
Securities available for sale | 1,329,288 | 1,393,629 |
Recurring Basis | Mortgage-backed securities - agency | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Mortgage-backed securities - agency | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Securities available for sale | 1,329,288 | 1,393,629 |
Recurring Basis | Mortgage-backed securities - agency | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Mortgage-backed securities - non-agency | ||
Assets | ||
Securities available for sale | 1,336,140 | 1,529,128 |
Recurring Basis | Mortgage-backed securities - non-agency | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Mortgage-backed securities - non-agency | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Securities available for sale | 1,336,140 | 1,529,128 |
Recurring Basis | Mortgage-backed securities - non-agency | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Commercial mortgage-backed securities - agency | ||
Assets | ||
Securities available for sale | 60,501 | 64,788 |
Recurring Basis | Commercial mortgage-backed securities - agency | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Commercial mortgage-backed securities - agency | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Securities available for sale | 60,501 | 64,788 |
Recurring Basis | Commercial mortgage-backed securities - agency | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Commercial mortgage-backed securities - non-agency | ||
Assets | ||
Securities available for sale | 387,939 | 514,858 |
Recurring Basis | Commercial mortgage-backed securities - non-agency | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Commercial mortgage-backed securities - non-agency | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Securities available for sale | 387,939 | 514,858 |
Recurring Basis | Commercial mortgage-backed securities - non-agency | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Asset-backed securities | ||
Assets | ||
Securities available for sale | 176,382 | 217,370 |
Recurring Basis | Asset-backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Asset-backed securities | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Securities available for sale | 176,382 | 217,370 |
Recurring Basis | Asset-backed securities | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Corporate bonds | ||
Assets | ||
Securities available for sale | 120,306 | 118,169 |
Recurring Basis | Corporate bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Corporate bonds | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Securities available for sale | 120,306 | 118,169 |
Recurring Basis | Corporate bonds | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Securities available for sale | $ 0 | $ 0 |
FAIR VALUE (Fair value measur_2
FAIR VALUE (Fair value measurement non-recurring) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | $ 7,533 | $ 12,548 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 348,761 | 5,071 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Premises, furniture and equipment held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Premises, furniture and equipment held for sale | 16,181 | 4,069 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 58,630 | 59,973 |
Loans held for sale | 348,761 | 5,071 |
Other real estate owned | 7,533 | 12,548 |
Fair Value, Measurements, Nonrecurring | Premises, furniture and equipment held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Premises, furniture and equipment held for sale | 16,181 | 4,069 |
Fair Value, Measurements, Nonrecurring | Year-to- Date (Gains) Losses | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 3,351 | 5,863 |
Loans held for sale | 0 | 0 |
Other real estate owned | 696 | 2,967 |
Fair Value, Measurements, Nonrecurring | Year-to- Date (Gains) Losses | Premises, furniture and equipment held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Premises, furniture and equipment held for sale | 89 | 2,786 |
Fair Value, Measurements, Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Loans held for sale | 0 | 0 |
Other real estate owned | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Premises, furniture and equipment held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Premises, furniture and equipment held for sale | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Loans held for sale | 348,761 | 5,071 |
Other real estate owned | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant Other Observable Inputs (Level 2) | Premises, furniture and equipment held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Premises, furniture and equipment held for sale | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 58,630 | 59,973 |
Loans held for sale | 0 | 0 |
Other real estate owned | 7,533 | 12,548 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Premises, furniture and equipment held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Premises, furniture and equipment held for sale | 16,181 | 4,069 |
Fair Value, Measurements, Nonrecurring | Agricultural and agricultural real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 24,711 | 4,768 |
Fair Value, Measurements, Nonrecurring | Agricultural and agricultural real estate | Year-to- Date (Gains) Losses | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 5,309 |
Fair Value, Measurements, Nonrecurring | Agricultural and agricultural real estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Agricultural and agricultural real estate | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Agricultural and agricultural real estate | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 24,711 | 4,768 |
Fair Value, Measurements, Nonrecurring | Residential real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 727 | 741 |
Fair Value, Measurements, Nonrecurring | Residential real estate | Year-to- Date (Gains) Losses | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Residential real estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Residential real estate | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Residential real estate | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 727 | 741 |
Commercial and industrial | Fair Value, Measurements, Nonrecurring | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 19,938 | 23,422 |
Commercial and industrial | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Year-to- Date (Gains) Losses | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 3,351 | 554 |
Commercial and industrial | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Commercial and industrial | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Commercial and industrial | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 19,938 | 23,422 |
Owner occupied commercial real estate | Fair Value, Measurements, Nonrecurring | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 12,579 | 30,400 |
Owner occupied commercial real estate | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Year-to- Date (Gains) Losses | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Owner occupied commercial real estate | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Owner occupied commercial real estate | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Owner occupied commercial real estate | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 12,579 | 30,400 |
Non-owner occupied commercial real estate | Fair Value, Measurements, Nonrecurring | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Non-owner occupied commercial real estate | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Year-to- Date (Gains) Losses | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Non-owner occupied commercial real estate | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Non-owner occupied commercial real estate | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Non-owner occupied commercial real estate | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Real Estate Construction | Fair Value, Measurements, Nonrecurring | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 675 | 642 |
Real Estate Construction | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Year-to- Date (Gains) Losses | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Real Estate Construction | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Real Estate Construction | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Real Estate Construction | Fair Value, Measurements, Nonrecurring | Commercial and industrial | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | $ 675 | $ 642 |
FAIR VALUE (Quantitative Inform
FAIR VALUE (Quantitative Information about Level 3 fair value measurements) (Details) - Significant Unobservable Inputs (Level 3) $ in Thousands | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned | $ 7,533 | $ 12,548 |
Loans receivable | $ 58,630 | $ 59,973 |
Appraisal discount | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned, measurement input (percent) | 0 | 0 |
Appraisal discount | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned, measurement input (percent) | 0.10 | 0.10 |
Commercial and industrial | Commercial and industrial | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans receivable | $ 19,938 | $ 23,422 |
Commercial and industrial | Commercial and industrial | Appraisal discount | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans receivable, measurement input (percent) | 0% | 0% |
Commercial and industrial | Commercial and industrial | Appraisal discount | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans receivable, measurement input (percent) | 14% | 12% |
Commercial and industrial | Owner occupied commercial real estate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans receivable | $ 12,579 | $ 30,400 |
Commercial and industrial | Owner occupied commercial real estate | Appraisal discount | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans receivable, measurement input (percent) | 0% | 0% |
Commercial and industrial | Owner occupied commercial real estate | Appraisal discount | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans receivable, measurement input (percent) | 10% | 20% |
Commercial and industrial | Non-owner occupied commercial real estate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans receivable | $ 0 | $ 0 |
Commercial and industrial | Non-owner occupied commercial real estate | Appraisal discount | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans receivable, measurement input (percent) | 0% | 0% |
Commercial and industrial | Non-owner occupied commercial real estate | Appraisal discount | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans receivable, measurement input (percent) | 10% | 10% |
Commercial and industrial | Real Estate Construction | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans receivable | $ 675 | $ 642 |
Commercial and industrial | Real Estate Construction | Appraisal discount | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans receivable, measurement input (percent) | 0% | 0% |
Commercial and industrial | Real Estate Construction | Appraisal discount | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans receivable, measurement input (percent) | 10% | 10% |
Agricultural and agricultural real estate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans receivable | $ 24,711 | $ 4,768 |
Agricultural and agricultural real estate | Appraisal discount | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans receivable, measurement input (percent) | 0% | 0% |
Agricultural and agricultural real estate | Appraisal discount | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans receivable, measurement input (percent) | 15% | 10% |
Residential real estate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans receivable | $ 727 | $ 741 |
Residential real estate | Appraisal discount | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans receivable, measurement input (percent) | 0% | 0% |
Residential real estate | Appraisal discount | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans receivable, measurement input (percent) | 10% | 10% |
Premises, furniture and equipment held for sale | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Premises, furniture and equipment held for sale | $ 16,181 | $ 4,069 |
Premises, furniture and equipment held for sale | Appraisal discount | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Premises, furniture and equipment held for sale, measurement input (percent) | 0% | 0% |
Premises, furniture and equipment held for sale | Appraisal discount | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Premises, furniture and equipment held for sale, measurement input (percent) | 10% | 10% |
FAIR VALUE (Estimated fair valu
FAIR VALUE (Estimated fair value financial instruments incl. carrying amounts) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Securities: | ||
Carried at fair value | $ 873,218 | |
Held to maturity | 842,980 | $ 838,241 |
Deposits held for sale | 538,308 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 373,946 | 323,013 |
Time deposits in other financial institutions | 1,340 | 1,240 |
Securities: | ||
Carried at fair value | 15,847 | 32,118 |
Held to maturity | 0 | 0 |
Other investments | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Deposits held for sale | 0 | |
Cash surrender value on life insurance | 0 | 0 |
Derivative financial instrument | 0 | 0 |
Financial liabilities: | ||
Borrowings | 0 | 0 |
Term Debt | 0 | 0 |
Derivative financial instrument | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Demand deposits | ||
Financial liabilities: | ||
Deposits | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Savings deposits | ||
Financial liabilities: | ||
Deposits | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Time deposits | ||
Financial liabilities: | ||
Deposits | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Time deposits in other financial institutions | 0 | 0 |
Securities: | ||
Carried at fair value | 4,169,207 | 4,614,773 |
Held to maturity | 809,516 | 816,399 |
Other investments | 70,684 | 91,277 |
Loans held for sale | 348,761 | 5,071 |
Loans, net | 10,763,157 | 11,149,694 |
Deposits held for sale | 569,298 | |
Cash surrender value on life insurance | 199,036 | 197,085 |
Derivative financial instrument | 128,849 | 84,904 |
Financial liabilities: | ||
Borrowings | 694,909 | 622,255 |
Term Debt | 374,830 | 374,017 |
Derivative financial instrument | 64,905 | 84,249 |
Significant Other Observable Inputs (Level 2) | Demand deposits | ||
Financial liabilities: | ||
Deposits | 4,244,169 | 4,500,304 |
Significant Other Observable Inputs (Level 2) | Savings deposits | ||
Financial liabilities: | ||
Deposits | 8,470,416 | 8,805,597 |
Significant Other Observable Inputs (Level 2) | Time deposits | ||
Financial liabilities: | ||
Deposits | 2,242,005 | 2,895,813 |
Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Time deposits in other financial institutions | 0 | 0 |
Securities: | ||
Carried at fair value | 0 | 0 |
Held to maturity | 0 | 0 |
Other investments | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 58,630 | 59,973 |
Deposits held for sale | 0 | |
Cash surrender value on life insurance | 0 | 0 |
Derivative financial instrument | 0 | 0 |
Financial liabilities: | ||
Borrowings | 0 | 0 |
Term Debt | 0 | 0 |
Derivative financial instrument | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Demand deposits | ||
Financial liabilities: | ||
Deposits | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Savings deposits | ||
Financial liabilities: | ||
Deposits | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Time deposits | ||
Financial liabilities: | ||
Deposits | 0 | 0 |
Commercial and industrial | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial and industrial | ||
Securities: | ||
Loans, net | 0 | 0 |
Commercial and industrial | Quoted Prices in Active Markets for Identical Assets (Level 1) | Paycheck Protection Program ("PPP") | ||
Securities: | ||
Loans, net | 0 | 0 |
Commercial and industrial | Quoted Prices in Active Markets for Identical Assets (Level 1) | Owner occupied commercial real estate | ||
Securities: | ||
Loans, net | 0 | 0 |
Commercial and industrial | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-owner occupied commercial real estate | ||
Securities: | ||
Loans, net | 0 | 0 |
Commercial and industrial | Quoted Prices in Active Markets for Identical Assets (Level 1) | Real estate construction | ||
Securities: | ||
Loans, net | 0 | 0 |
Commercial and industrial | Significant Other Observable Inputs (Level 2) | Commercial and industrial | ||
Securities: | ||
Loans, net | 3,285,535 | 3,373,206 |
Commercial and industrial | Significant Other Observable Inputs (Level 2) | Paycheck Protection Program ("PPP") | ||
Securities: | ||
Loans, net | 1,864 | 2,777 |
Commercial and industrial | Significant Other Observable Inputs (Level 2) | Owner occupied commercial real estate | ||
Securities: | ||
Loans, net | 2,362,693 | 2,414,140 |
Commercial and industrial | Significant Other Observable Inputs (Level 2) | Non-owner occupied commercial real estate | ||
Securities: | ||
Loans, net | 2,297,208 | 2,393,931 |
Commercial and industrial | Significant Other Observable Inputs (Level 2) | Real estate construction | ||
Securities: | ||
Loans, net | 1,042,588 | 978,463 |
Commercial and industrial | Significant Unobservable Inputs (Level 3) | Commercial and industrial | ||
Securities: | ||
Loans, net | 19,938 | 23,422 |
Commercial and industrial | Significant Unobservable Inputs (Level 3) | Paycheck Protection Program ("PPP") | ||
Securities: | ||
Loans, net | 0 | 0 |
Commercial and industrial | Significant Unobservable Inputs (Level 3) | Owner occupied commercial real estate | ||
Securities: | ||
Loans, net | 12,579 | 30,400 |
Commercial and industrial | Significant Unobservable Inputs (Level 3) | Non-owner occupied commercial real estate | ||
Securities: | ||
Loans, net | 0 | 0 |
Commercial and industrial | Significant Unobservable Inputs (Level 3) | Real estate construction | ||
Securities: | ||
Loans, net | 675 | 642 |
Agricultural and agricultural real estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Securities: | ||
Loans, net | 0 | 0 |
Agricultural and agricultural real estate | Significant Other Observable Inputs (Level 2) | ||
Securities: | ||
Loans, net | 706,242 | 834,804 |
Agricultural and agricultural real estate | Significant Unobservable Inputs (Level 3) | ||
Securities: | ||
Loans, net | 24,711 | 4,768 |
Residential real estate | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Securities: | ||
Loans, net | 0 | 0 |
Residential real estate | Significant Other Observable Inputs (Level 2) | ||
Securities: | ||
Loans, net | 636,118 | 686,687 |
Residential real estate | Significant Unobservable Inputs (Level 3) | ||
Securities: | ||
Loans, net | 727 | 741 |
Consumer | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Securities: | ||
Loans, net | 0 | 0 |
Consumer | Significant Other Observable Inputs (Level 2) | ||
Securities: | ||
Loans, net | 430,909 | 465,686 |
Consumer | Significant Unobservable Inputs (Level 3) | ||
Securities: | ||
Loans, net | 0 | 0 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 373,946 | 323,013 |
Time deposits in other financial institutions | 1,340 | 1,240 |
Securities: | ||
Carried at fair value | 4,185,054 | 4,646,891 |
Held to maturity | 842,980 | 838,241 |
Other investments | 70,684 | 91,277 |
Loans held for sale | 348,761 | 5,071 |
Loans, net | 11,481,448 | 11,946,079 |
Deposits held for sale | 538,308 | |
Cash surrender value on life insurance | 199,036 | 197,085 |
Derivative financial instrument | 128,849 | 84,904 |
Financial liabilities: | ||
Borrowings | 694,909 | 622,255 |
Term Debt | 372,988 | 372,396 |
Derivative financial instrument | 64,905 | 84,249 |
Carrying Amount | Demand deposits | ||
Financial liabilities: | ||
Deposits | 4,244,169 | 4,500,304 |
Carrying Amount | Savings deposits | ||
Financial liabilities: | ||
Deposits | 8,470,416 | 8,805,597 |
Carrying Amount | Time deposits | ||
Financial liabilities: | ||
Deposits | 2,242,005 | 2,895,813 |
Carrying Amount | Commercial and industrial | Commercial and industrial | ||
Securities: | ||
Loans, net | 3,496,439 | 3,611,368 |
Carrying Amount | Commercial and industrial | Paycheck Protection Program ("PPP") | ||
Securities: | ||
Loans, net | 1,864 | 2,777 |
Carrying Amount | Commercial and industrial | Owner occupied commercial real estate | ||
Securities: | ||
Loans, net | 2,541,250 | 2,621,019 |
Carrying Amount | Commercial and industrial | Non-owner occupied commercial real estate | ||
Securities: | ||
Loans, net | 2,420,561 | 2,536,462 |
Carrying Amount | Commercial and industrial | Real estate construction | ||
Securities: | ||
Loans, net | 1,050,516 | 982,943 |
Carrying Amount | Agricultural and agricultural real estate | ||
Securities: | ||
Loans, net | 794,053 | 914,892 |
Carrying Amount | Residential real estate | ||
Securities: | ||
Loans, net | 728,365 | 791,984 |
Carrying Amount | Consumer | ||
Securities: | ||
Loans, net | 448,400 | 484,634 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 373,946 | 323,013 |
Time deposits in other financial institutions | 1,340 | 1,240 |
Securities: | ||
Carried at fair value | 4,185,054 | 4,646,891 |
Held to maturity | 809,516 | 816,399 |
Other investments | 70,684 | 91,277 |
Loans held for sale | 348,761 | 5,071 |
Loans, net | 10,821,787 | 11,209,667 |
Deposits held for sale | 569,298 | |
Cash surrender value on life insurance | 199,036 | 197,085 |
Derivative financial instrument | 128,849 | 84,904 |
Financial liabilities: | ||
Borrowings | 694,909 | 622,255 |
Term Debt | 374,830 | 374,017 |
Derivative financial instrument | 64,905 | 84,249 |
Estimated Fair Value | Demand deposits | ||
Financial liabilities: | ||
Deposits | 4,244,169 | 4,500,304 |
Estimated Fair Value | Savings deposits | ||
Financial liabilities: | ||
Deposits | 8,470,416 | 8,805,597 |
Estimated Fair Value | Time deposits | ||
Financial liabilities: | ||
Deposits | 2,242,005 | 2,895,813 |
Estimated Fair Value | Commercial and industrial | Commercial and industrial | ||
Securities: | ||
Loans, net | 3,305,473 | 3,396,628 |
Estimated Fair Value | Commercial and industrial | Paycheck Protection Program ("PPP") | ||
Securities: | ||
Loans, net | 1,864 | 2,777 |
Estimated Fair Value | Commercial and industrial | Owner occupied commercial real estate | ||
Securities: | ||
Loans, net | 2,375,272 | 2,444,540 |
Estimated Fair Value | Commercial and industrial | Non-owner occupied commercial real estate | ||
Securities: | ||
Loans, net | 2,297,208 | 2,393,931 |
Estimated Fair Value | Commercial and industrial | Real estate construction | ||
Securities: | ||
Loans, net | 1,043,263 | 979,105 |
Estimated Fair Value | Agricultural and agricultural real estate | ||
Securities: | ||
Loans, net | 730,953 | 839,572 |
Estimated Fair Value | Residential real estate | ||
Securities: | ||
Loans, net | 636,845 | 687,428 |
Estimated Fair Value | Consumer | ||
Securities: | ||
Loans, net | $ 430,909 | $ 465,686 |
STOCK COMPENSATION (Narrative)
STOCK COMPENSATION (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2022 | May 31, 2024 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for issuance (in shares) | 2,460,000 | |||
Shares available for issuance (in shares) | 1,464,540 | |||
Excess tax expense (benefit) related to share-based payment awards | $ 330 | $ 75 | ||
Options granted (in shares) | 0 | 0 | ||
Time-based RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation, award vesting periods (in years) | 3 years | |||
Performance-based RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation, award vesting periods (in years) | 3 years | |||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation costs | $ 5,900 | $ 6,700 | ||
Share-based unrecognized compensation costs | $ 12,900 | |||
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation, award vesting periods (in years) | 4 years | |||
Share-based compensation costs | $ 100 | $ 109 | ||
Share-based unrecognized compensation costs | $ 331 | |||
Options granted (in shares) | 64,518 | |||
Share-based compensation arrangement, contractual term | 8 years 5 months 1 day | |||
Share-based compensation arrangement, intrinsic value | $ 0 | |||
Intrinsic value of all options exercised | 0 | |||
Fair value of shares under vested stock options and awards | $ 0 |
STOCK COMPENSATION (Summary of
STOCK COMPENSATION (Summary of RSUs Activity) (Details) - RSUs - $ / shares | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Shares | ||
Outstanding at beginning of period (in shares) | 466,105 | 424,086 |
Granted (in shares) | 340,855 | 241,347 |
Vested (in shares) | (173,932) | (166,845) |
Forfeited (in shares) | (55,924) | (28,612) |
Outstanding at end of period (in shares) | 577,104 | 469,976 |
Weighted-Average Grant Date Fair Value | ||
Outstanding at beginning of period (in dollars per share) | $ 47.22 | $ 46.15 |
Granted (in dollars per share) | 34.61 | 47.30 |
Vested (in dollars per share) | 46.15 | 42.22 |
Forfeited (in dollars per share) | 47.32 | 44.27 |
Outstanding at end of period (in dollars per share) | $ 40.08 | $ 48.25 |
STOCK COMPENSATION (Summary o_2
STOCK COMPENSATION (Summary of Stock Options Activity) (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Shares | ||
Outstanding at beginning of period (in shares) | 58,066 | 64,518 |
Options granted (in shares) | 0 | 0 |
Exercised (in shares) | 0 | 0 |
Forfeited (in shares) | (5,161) | (6,452) |
Outstanding at end of period (in shares) | 52,905 | 58,066 |
Options exercisable at end of period (in shares) | 13,224 | 0 |
Weighted Average Exercise Price | ||
Outstanding at beginning of period (in dollars per share) | $ 48.79 | $ 48.79 |
Granted (in dollars per share) | 0 | 0 |
Exercised (in dollars per share) | 0 | 0 |
Forfeited (in dollars per share) | 48.79 | 48.79 |
Outstanding at end of period (in dollars per share) | 48.79 | 48.79 |
Options exercisable at end of period (in dollars per share) | $ 48.79 | $ 0 |