Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 01, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2022 | |
Entity Registrant Name | Premier Financial Corp. | |
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 | 35,566,382 | |
Entity Central Index Key | 0000946647 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Trading Symbol | PFC | |
City Area Code | 419 | |
Title of 12(b) Security | Common Stock, Par Value $0.01 Per Share | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Address, Address Line One | 601 Clinton Street | |
Entity Address, City or Town | Defiance | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 43512 | |
Entity File Number | 0-26850 | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 34-1803915 | |
Local Phone Number | 785-8700 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Financial Condition - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Cash and cash equivalents: | ||
Cash and amounts due from depository institutions | $ 67,124 | $ 54,858 |
Interest-bearing deposits | 37,868 | 106,708 |
Cash and cash equivalents, federal funds sold | 104,992 | 161,566 |
Securities available-for-sale, carried at fair value | 1,063,713 | 1,206,260 |
Equity securities, carried at fair value | 15,336 | 14,097 |
Loans held for sale, carried at fair value | 129,142 | 162,947 |
Loans receivable, net of allowance for credit losses of $70,626 at September 30, 2022 and $66,468 at December 31, 2021, respectively | 6,137,082 | 5,229,700 |
Mortgage servicing rights | 20,832 | 19,538 |
Accrued interest receivable | 26,021 | 20,767 |
Federal Home Loan Bank stock | 28,262 | 11,585 |
Bank owned life insurance | 169,728 | 166,767 |
Premises and equipment | 53,747 | 55,602 |
Real estate and other assets held for sale | 416 | 171 |
Goodwill | 317,948 | 317,948 |
Core deposit and other intangibles | 19,972 | 24,129 |
Other assets | 148,949 | 90,325 |
Total assets | 8,236,140 | 7,481,402 |
Liabilities: | ||
Deposits | 6,732,505 | 6,282,051 |
Advances from the Federal Home Loan Bank | 411,000 | 0 |
Subordinated debentures | 85,071 | 84,976 |
Advance payments by borrowers | 33,511 | 24,716 |
Reserve for credit losses - unfunded commitments | 7,061 | 5,031 |
Other liabilities | 102,032 | 61,132 |
Total liabilities | 7,371,180 | 6,457,906 |
Stockholders’ equity: | ||
Preferred stock, $.01 par value per share: 4,963,000 shares authorized; no shares issued | 0 | 0 |
Common stock, $.01 par value per share: 50,000,000 shares authorized; 43,297,260 and 43,297,260 shares issued and 35,562,684 and 36,383,613 shares outstanding at September 30, 2022 and December 31, 2021, respectively | 306 | 306 |
Additional paid-in capital | 691,578 | 691,132 |
Accumulated other comprehensive income, net of tax of $(48,175) and $(912), respectively | (181,231) | (3,428) |
Retained earnings | 488,305 | 443,517 |
Treasury stock, at cost, 7,734,576 shares at September 30, 2022 and 6,913,647 shares at December 31, 2021 | (133,998) | (108,031) |
Total stockholders’ equity | 864,960 | 1,023,496 |
Total liabilities and stockholders’ equity | $ 8,236,140 | $ 7,481,402 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Loans receivable, allowance (in dollars) | $ 70,626 | $ 66,468 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 4,963,000 | 4,963,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares, Issued | 43,297,260 | 43,297,260 |
Common stock, shares outstanding | 35,562,684 | 36,383,613 |
Accumulated other comprehensive income, tax effect (in dollars) | $ (48,175) | $ (912) |
Treasury stock, shares | 7,734,576 | 6,913,647 |
Cumulative Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 37,000 | 37,000 |
Preferred stock, shares issued | 0 | 0 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Income - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Interest Income | ||||
Loans | $ 65,559,000 | $ 55,443,000 | $ 177,366,000 | $ 168,781,000 |
Investment securities: | ||||
Taxable | 5,965,000 | 4,334,000 | 15,901,000 | 11,054,000 |
Non-taxable | 849,000 | 991,000 | 2,588,000 | 2,945,000 |
Interest-bearing deposits | 221,000 | 33,000 | 387,000 | 142,000 |
FHLB stock dividends | 510,000 | 60,000 | 743,000 | 175,000 |
Total interest income | 73,104,000 | 60,861,000 | 196,985,000 | 183,097,000 |
Interest Expense | ||||
Deposits | 6,855,000 | 3,144,000 | 11,749,000 | 10,867,000 |
FHLB advances and other | 2,069,000 | 11,000 | 2,609,000 | 23,000 |
Subordinated debentures | 868,000 | 671,000 | 2,326,000 | 2,040,000 |
Notes payable | 0 | 0 | 1,000 | 0 |
Total interest expense | 9,792,000 | 3,826,000 | 16,685,000 | 12,930,000 |
Net interest income | 63,312,000 | 57,035,000 | 180,300,000 | 170,167,000 |
Credit loss expense (benefit) - loans and leases | 3,706,000 | 1,594,000 | 9,483,000 | (9,549,000) |
Credit loss expense - unfunded commitments | 306,000 | 226,000 | 2,030,000 | 488,000 |
Net interest income after credit (benefit) loss expense | 59,300,000 | 55,215,000 | 168,787,000 | 179,228,000 |
Non-interest Income | ||||
Service fees and other charges | 6,545,000 | 6,067,000 | 19,221,000 | 17,817,000 |
Insurance commissions | 3,488,000 | 3,461,000 | 12,043,000 | 12,401,000 |
Mortgage banking income | 3,970,000 | 6,175,000 | 10,170,000 | 18,865,000 |
Gain on sale of securities available for sale | 0 | 233,000 | 0 | 2,218,000 |
Gain (loss) on equity securities | 43,000 | 20,000 | (1,760,000) | 822,000 |
Wealth management income | 1,355,000 | 1,321,000 | 4,246,000 | 4,644,000 |
Income from Bank Owned Life Insurance | 983,000 | 947,000 | 2,961,000 | 2,975,000 |
Other non-interest income | 320,000 | 146,000 | 1,051,000 | 2,005,000 |
Total non-interest income | 16,704,000 | 18,370,000 | 47,932,000 | 61,747,000 |
Non-interest Expense | ||||
Compensation and benefits | 24,522,000 | 23,355,000 | 72,397,000 | 66,399,000 |
Occupancy | 3,463,000 | 3,693,000 | 10,657,000 | 11,642,000 |
FDIC insurance premium | 976,000 | 695,000 | 2,370,000 | 2,115,000 |
Financial institutions tax | 1,050,000 | 1,187,000 | 3,315,000 | 3,553,000 |
Data processing | 3,121,000 | 3,387,000 | 9,899,000 | 10,103,000 |
Amortization of intangibles | 1,338,000 | 1,528,000 | 4,156,000 | 4,725,000 |
Other non-interest expense | 6,629,000 | 5,256,000 | 18,689,000 | 17,300,000 |
Total non-interest expense | 41,099,000 | 39,101,000 | 121,483,000 | 115,837,000 |
Income before income taxes | 34,905,000 | 34,484,000 | 95,236,000 | 125,138,000 |
Income tax expense | 6,710,000 | 6,124,000 | 18,324,000 | 24,397,000 |
Net income | $ 28,195,000 | $ 28,360,000 | $ 76,912,000 | $ 100,741,000 |
Earnings per common share | ||||
Basic | $ 0.79 | $ 0.76 | $ 2.15 | $ 2.70 |
Diluted | $ 0.79 | $ 0.76 | $ 2.15 | $ 2.70 |
Consolidated Condensed Statem_4
Consolidated Condensed Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 28,195 | $ 28,360 | $ 76,912 | $ 100,741 |
Other comprehensive (loss) income: | ||||
Unrealized (losses) gains on securities available for sale | (55,350) | (9,042) | (182,755) | (16,169) |
Reclassification adjustment for securities gains (losses) included in net income | (233) | (2,218) | ||
Income tax effect | 11,624 | 1,947 | 38,378 | 3,861 |
Net of tax amount | (43,726) | (7,328) | (144,377) | (14,526) |
Unrealized gain (loss) on balance sheet swap | (13,343) | (1,692) | (43,294) | 2,742 |
Reclassification adjustment for cash flow hedge derivatives gain included in net income | (266) | (860) | 982 | (1,310) |
Income tax effect | 2,858 | 536 | 8,886 | (301) |
Net of tax amount | (10,751) | (2,016) | (33,426) | 1,131 |
Total other comprehensive income (loss) | (54,477) | (9,344) | (177,803) | (13,395) |
Comprehensive income (loss) | $ (26,282) | $ 19,016 | $ (100,891) | $ 87,346 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
Balance at Dec. 31, 2020 | $ 982,276 | $ 306 | $ 689,390 | $ 15,004 | $ 356,414 | $ (78,838) |
Balance (in shares) at Dec. 31, 2020 | 37,291,480 | |||||
Net income | 40,996 | 40,996 | ||||
Other comprehensive income (loss) | (15,506) | (15,506) | ||||
Deferred compensation plan | 51 | (51) | ||||
Deferred compensation plan (in shares) | 7,911 | |||||
Stock based compensation expenses | 551 | 551 | ||||
Vesting of incentive plans | (82) | 82 | ||||
Vesting of incentive plans (in shares) | 6,124 | |||||
Shares issued under stock option plan | 8 | 8 | ||||
Shares issued under stock option plan (in shares) | 600 | |||||
Restricted share issuance | (183) | 183 | ||||
Restricted share issuance (in shares) | 13,708 | |||||
Restricted share forfeitures | (118) | 20 | (138) | |||
Restricted share forfeitures (in shares) | (5,779) | |||||
Shares repurchased | (1,078) | (1,078) | ||||
Shares repurchased (In Shares) | (39,200) | |||||
Common stock dividend payment | (8,943) | (8,943) | ||||
Balance at Mar. 31, 2021 | 998,186 | $ 306 | 689,747 | (502) | 388,467 | (79,832) |
Balance (in shares) at Mar. 31, 2021 | 37,274,844 | |||||
Balance at Dec. 31, 2020 | 982,276 | $ 306 | 689,390 | 15,004 | 356,414 | (78,838) |
Balance (in shares) at Dec. 31, 2020 | 37,291,480 | |||||
Net income | 100,741 | |||||
Other comprehensive income (loss) | (13,395) | |||||
Balance at Sep. 30, 2021 | 1,031,869 | $ 306 | 690,783 | 1,609 | 428,518 | (89,347) |
Balance (in shares) at Sep. 30, 2021 | 36,978,151 | |||||
Balance at Mar. 31, 2021 | 998,186 | $ 306 | 689,747 | (502) | 388,467 | (79,832) |
Balance (in shares) at Mar. 31, 2021 | 37,274,844 | |||||
Net income | 31,385 | 31,385 | ||||
Other comprehensive income (loss) | 11,455 | 11,455 | ||||
Deferred compensation plan | 0 | (26) | 26 | |||
Stock based compensation expenses | 656 | 656 | ||||
Vesting of incentive plans | 0 | (291) | 291 | |||
Vesting of incentive plans (in shares) | 21,834 | |||||
Restricted share issuance | (301) | 301 | ||||
Restricted share issuance (in shares) | 22,550 | |||||
Restricted share forfeitures | (507) | (507) | ||||
Restricted share forfeitures (in shares) | (15,257) | |||||
Shares repurchased | (3,773) | (3,773) | ||||
Shares repurchased (In Shares) | (126,366) | |||||
Common stock dividend payment | (9,699) | (9,699) | ||||
Balance at Jun. 30, 2021 | 1,027,703 | $ 306 | $ 689,785 | 10,953 | 410,153 | $ (83,494) |
Balance (in shares) at Jun. 30, 2021 | 37,177,605 | |||||
Net income | 28,360 | 28,360 | ||||
Other comprehensive income (loss) | $ (9,344) | (9,344) | ||||
Deferred compensation plan (in shares) | 0 | (10) | 10 | |||
Stock based compensation expenses | $ 1,176 | $ 1,176 | ||||
Vesting of incentive plans | 0 | (84) | $ 84 | |||
Vesting of incentive plans (in shares) | 2,002 | |||||
Restricted share issuance | 0 | (84) | 84 | |||
Restricted share issuance (in shares) | 6,116 | |||||
Restricted share forfeitures | $ (61) | $ (61) | ||||
Restricted share forfeitures (in shares) | (1,287) | |||||
Shares repurchased (In Shares) | (5,970) | (206,285) | (5,970) | |||
Common stock dividend payment | $ (9,995) | (9,995) | ||||
Balance at Sep. 30, 2021 | 1,031,869 | $ 306 | 690,783 | 1,609 | 428,518 | $ (89,347) |
Balance (in shares) at Sep. 30, 2021 | 36,978,151 | |||||
Balance at Dec. 31, 2021 | 1,023,496 | $ 306 | 691,132 | (3,428) | 443,517 | (108,031) |
Balance (in shares) at Dec. 31, 2021 | 36,383,613 | |||||
Net income | 26,357 | 26,357 | ||||
Other comprehensive income (loss) | (72,069) | (72,069) | ||||
Deferred compensation plan | (14) | 14 | ||||
Deferred compensation plan (in shares) | 9,933 | |||||
Stock based compensation expenses | 760 | 760 | ||||
Vesting of incentive plans | 0 | (246) | 246 | |||
Vesting of incentive plans (in shares) | 5,660 | |||||
Restricted share issuance | 0 | (351) | 351 | |||
Restricted share issuance (in shares) | 19,936 | |||||
Restricted share forfeitures | (216) | 69 | (285) | |||
Restricted share forfeitures (in shares) | (5,398) | |||||
Shares repurchased | (24,245) | (24,245) | ||||
Shares repurchased (In Shares) | (793,166) | |||||
Common stock dividend payment | (10,787) | (10,787) | ||||
Balance at Mar. 31, 2022 | 943,296 | $ 306 | 691,350 | (75,497) | 459,087 | (131,950) |
Balance (in shares) at Mar. 31, 2022 | 35,620,578 | |||||
Balance at Dec. 31, 2021 | 1,023,496 | $ 306 | 691,132 | (3,428) | 443,517 | (108,031) |
Balance (in shares) at Dec. 31, 2021 | 36,383,613 | |||||
Net income | 76,912 | |||||
Other comprehensive income (loss) | (177,803) | |||||
Balance at Sep. 30, 2022 | 864,960 | $ 306 | 691,578 | (181,231) | 488,305 | (133,998) |
Balance (in shares) at Sep. 30, 2022 | 35,562,684 | |||||
Balance at Mar. 31, 2022 | 943,296 | $ 306 | 691,350 | (75,497) | 459,087 | (131,950) |
Balance (in shares) at Mar. 31, 2022 | 35,620,578 | |||||
Net income | 22,360 | 22,360 | ||||
Other comprehensive income (loss) | (51,257) | (51,257) | ||||
Deferred compensation plan | (14) | 14 | ||||
Stock based compensation expenses | 157 | 157 | ||||
Vesting of incentive plans | (167) | 167 | ||||
Vesting of incentive plans (in shares) | 5,547 | |||||
Restricted share issuance | (421) | 421 | ||||
Restricted share issuance (in shares) | 24,256 | |||||
Restricted share forfeitures | (118) | (118) | ||||
Restricted share forfeitures (in shares) | (4,033) | |||||
Shares repurchased | (2,623) | (2,623) | ||||
Shares repurchased (In Shares) | (90,870) | |||||
Common stock dividend payment | (10,668) | (10,668) | ||||
Balance at Jun. 30, 2022 | 901,147 | $ 306 | $ 690,905 | (126,754) | 470,779 | $ (134,089) |
Balance (in shares) at Jun. 30, 2022 | 35,555,478 | |||||
Net income | 28,195 | 28,195 | ||||
Other comprehensive income (loss) | $ (54,477) | (54,477) | ||||
Deferred compensation plan (in shares) | 0 | (14) | 14 | |||
Stock based compensation expenses | $ 711 | $ 711 | ||||
Shares issued under stock option plan | 53 | $ 53 | ||||
Shares issued under stock option plan (in shares) | 3,000 | |||||
Restricted share issuance | $ 0 | (148) | $ 148 | |||
Restricted share issuance (in shares) | 8,521 | |||||
Restricted share forfeitures | 124 | |||||
Restricted share forfeitures (in shares) | 0 | (4,315) | (124) | |||
Shares repurchased | $ 0 | $ 0 | ||||
Common stock dividend payment | (10,669) | (10,669) | ||||
Balance at Sep. 30, 2022 | $ 864,960 | $ 306 | $ 691,578 | $ (181,231) | $ 488,305 | $ (133,998) |
Balance (in shares) at Sep. 30, 2022 | 35,562,684 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||||||
Dividend payment per share | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.27 | $ 0.26 | $ 0.24 | $ 0.90 | $ 0.77 |
Consolidated Condensed Statem_5
Consolidated Condensed Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Operating Activities | ||
Net income | $ 76,912,000 | $ 100,741,000 |
Items not requiring (providing) cash: | ||
Provision (benefit) for credit losses | 11,513,000 | (9,061,000) |
Depreciation | 4,264,000 | 4,837,000 |
Amortization of premium and discounts on loans, securities, deposits and debt obligations | 6,920,000 | 48,000 |
Amortization of mortgage servicing rights, net of impairment charges/recoveries | 2,504,000 | 464,000 |
Amortization of intangibles | 4,156,000 | 4,725,000 |
Change in deferred taxes | (774,000) | 1,708,000 |
Proceeds from the sale of loans held for sale | 264,253,000 | 681,946,000 |
Originations of loans held for sale | (227,175,000) | (631,573,000) |
Mortgage banking gain, net | (7,072,000) | (13,663,000) |
Loss (gain) on sale / write-down of real estate and other assets held for sale | (78,000) | 10,000 |
Loss (gain) on sale of available for sale securities | 0 | (2,218,000) |
Loss (gain) on equity securities | 1,760,000 | (822,000) |
Shares issued under stock option plan | 53,000 | 0 |
Stock based compensation expense | 1,628,000 | 2,383,000 |
Restricted stock forfeitures for taxes and option exercises | (334,000) | (678,000) |
Income from bank owned life insurance | (2,961,000) | (2,975,000) |
Changes in: | ||
Accrued interest receivable and other assets | (62,582,000) | (11,908,000) |
Other liabilities | 45,332,000 | (10,957,000) |
Net cash provided (used) by operating activities | 118,319,000 | 113,007,000 |
Investing Activities | ||
Proceeds from maturities, calls and pay-downs of available-for-sale securities | 76,837,000 | 109,756,000 |
Proceeds from sale of available-for-sale securities | 0 | 158,011,000 |
Proceeds from sale of premises and equipment, real estate and other assets held for sale | 475,000 | 290,000 |
Purchases of available-for-sale securities | (122,458,000) | (803,082,000) |
Purchases of equity securities | (2,999,000) | (11,053,000) |
Net change in Federal Home Loan Bank stock | (16,677,000) | 4,441,000 |
Purchases of premises and equipment, net | (2,409,000) | (2,025,000) |
Proceeds from bank owned life insurance | 0 | 893,000 |
Purchase of bank owned life insurance | 0 | (20,000,000) |
Net (increase) decrease in loans receivable | (919,634,000) | 226,637,000 |
Net cash used in investing activities | (986,865,000) | (336,132,000) |
Financing Activities | ||
Net increase in deposits and advance payments by borrowers | 459,964,000 | 199,599,000 |
Net change in Federal Home Loan Bank advances | 411,000,000 | 0 |
Net change in notes payable | 0 | 18,812,000 |
Net cash paid for repurchase of common stock | (26,868,000) | (10,821,000) |
Cash dividends paid on common stock | (32,124,000) | (28,637,000) |
Net cash provided by financing activities | 811,972,000 | 178,953,000 |
Increase (decrease) in cash and cash equivalents | (56,574,000) | (44,172,000) |
Cash and cash equivalents at beginning of period | 161,566,000 | 159,266,000 |
Cash and cash equivalents at end of period | 104,992,000 | 115,094,000 |
Supplemental cash flow information: | ||
Interest paid | 16,529,000 | 13,086,000 |
Income taxes paid | 12,320,000 | 23,858,000 |
Initial recognition of right-of-use asset | 643,000 | 500,000 |
Initial recognition of lease liability | 643,000 | 500,000 |
Transfers from loans to real estate and other assets held for sale | $ 0 | $ 438,000 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation Premier Financial Corp. (“Premier” or the “Company”) is a bank holding company that conducts business through its wholly-owned subsidiaries, Premier Bank (the "Bank"), First Insurance Group of the Midwest, Inc. (“First Insurance”), PFC Risk Management Inc. (“PFC Risk Management”) and PFC Capital, LLC (“PFC Capital”). All significant intercompany transactions and balances are eliminated in consolidation. Premier’s stock is traded on the NASDAQ Global Select Market under the ticker PFC. The Bank is primarily engaged in community banking. It attracts deposits from the general public through its offices and website, and uses those and other available sources of funds to originate residential real estate loans, commercial real estate loans, commercial loans, home improvement and home equity loans and consumer loans. In addition, the Bank invests in U.S. Treasury and federal government agency obligations, obligations of states and political subdivisions, mortgage-backed securities ("MBS") that are issued by federal agencies, collateralized mortgage obligations (“CMOs”), and corporate bonds. The Bank’s deposits are insured by the Federal Deposit Insurance Corporation (“FDIC”). The Bank is a member of the Federal Home Loan Bank (“FHLB”) System. First Insurance is an insurance agency that conducts business throughout Premier’s markets. First Insurance offers property and casualty insurance, life insurance and group health insurance. PFC Risk Management is a wholly-owned insurance company subsidiary of the Company that insures the Company and its subsidiaries against certain risks unique to the operations of the Company and for which insurance may not be currently available or economically feasible in today’s insurance marketplace. PFC Risk Management pools resources with several other similar insurance company subsidiaries of financial institutions to help minimize the risk allocable to each participating insurer. PFC Capital was formed as an Ohio limited liability company in 2016 for the purpose of providing mezzanine funding for customers. Mezzanine loans are offered by PFC Capital to customers in the Company’s market area and are expected to be repaid from the cash flow from operations of the business. The consolidated condensed statement of financial condition at December 31, 2021, was derived from the audited financial statements at that date, which were included in Premier’s Annual Report on Form 10-K for the year ended December 31, 2021 ("2021 Form 10-K"). The accompanying consolidated condensed financial statements as of September 30, 2022, and for the three and nine months ended September 30, 2022 and 2021 have been prepared by the Company without audit and do not include information or footnotes necessary for the complete presentation of financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States (“GAAP”). These consolidated condensed financial statements should be read in conjunction with the financial statements and notes thereto included in the 2021 Form 10-K. However, in the opinion of management, all adjustments, consisting of only normal recurring items, necessary for the fair presentation of the financial statements have been made. The results for the three and nine months ended September 30, 2022 , are not necessarily indicative of the results that may be expected for the entire year. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Accounting Standards Update ASU No. 2020-04: Reference Rate Reform – Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848): On March 12, 2020, the FASB issued Accounting Standards Update (ASU) 2020-04, "Reference Rate Reform (“ASC 848”): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." ASC 848 contains optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or other reference rates expected to be discontinued. The Company has formed a cross-functional project team to lead the transition from LIBOR to the adoption of alternative reference rates which include Secured Overnight Financing Rate. The Company identified loans that renewed prior to 2021 and began incorporating LIBOR fallback language into existing LIBOR loans. Additionally, management is utilizing the timeline guidance published by the Alternative Reference Rates Committee to develop and achieve internal milestones during this transitional period. The Company has also adhered to the International Swaps and Derivatives Association 2020 IBOR Fallbacks Protocol that was released on October 23, 2020, and has discontinued the issuance of new LIBOR-based loans since December 31, 2021, according to regulatory guidelines. Legacy LIBOR-based loans will be transitioned to an alternative reference rate on or before June 30, 2023. The updates are elective, are only available from March 12, 2020 until December 31, 2022, and their application did not have a material effect on the Company. Accounting Standards Not Yet Adopted ASU No. 2022-02, Troubled Debt Restructurings and Vintage Disclosures: On March 30, 2022, the FASB issued ASU 2022-02, "Troubled Debt Restructurings and Vintage Disclosures" which will eliminate troubled debt restructuring ("TDR") accounting for entities that have adopted ASU 2016-13, the current expected credit loss ("CECL") model and will add new vintage disclosures for gross write-offs. The elimination of TDR accounting can be adopted either prospectively for loan modifications after adoption or on a modified retrospective basis that would result in a cumulative effect adjustment to retained earnings in the period of adoption. ASU 2022-02 is effective for the Company for fiscal years beginning after December 15, 2022. The Company can elect to early adopt a part or all of such update. The Company is currently assessing the impacts of adopting the guidance. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 3. Fair Value FASB ASC Topic 820, Fair Value Measurements, defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. FASB ASC Topic 820 requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on the best information available. In that regard, FASB ASC Topic 820 established a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: • Level 1 : Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. • Level 2 : Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by a correlation or other means. • Level 3 : Unobservable inputs for determining fair value of assets and liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Available-for-sale securities - Securities classified as available for sale are generally reported at fair value utilizing Level 2 inputs where the Company obtains fair value measurements from an independent pricing service that uses matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows and the bonds’ terms and conditions, among other things. Securities in Level 2 include U.S. federal government agencies, MBS, asset-backed securities ("ABS"), corporate bonds and municipal securities. Equity securities – These securities are reported at fair value utilizing Level 1 inputs where the Company obtains fair value measurements from a broker. Loans held for sale, carried at fair value – The Company has elected the fair value option for all loans held for sale originated after January 31, 2020. The fair value of conventional loans held for sale is determined using the current 15 day forward contract price for either 15 or 30 year conventional mortgages (Level 2). The fair value of permanent construction loans held for sale is determined using the current 60 day forward contract price for 15 or 30 years conventional mortgages which is then adjusted for unobservable market data such as estimated fall out rates and estimated time from origination to completion of construction (Level 3). Collateral dependent loans - Fair values for individually analyzed collateral dependent loans are generally based on appraisals obtained from licensed real estate appraisers and in certain circumstances consideration of offers obtained to purchase properties prior to foreclosure. Appraisals for commercial real estate generally use three methods to derive value: cost, sales or market comparison and income approach. The cost method bases value on the cost to replace the current property. Value of market comparison approach evaluates the sales price of similar properties in the same market area. The income approach considers net operating income generated by the property and an investor’s required return. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Comparable sales adjustments are based on known sales prices of similar type and similar use properties and duration of time that the property has been on the market to sell. Such adjustments made in the appraisal process are typically significant and result in a Level 3 classification of the inputs for determining fair value. Real estate held for sale - Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are then reviewed monthly by members of the asset review committee for valuation changes and are accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which may utilize a single valuation approach or a combination of approaches including cost, comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments may be significant and typically result in a Level 3 classification of the inputs for determining fair value. Appraisals for both individually analyzed collateral-dependent loans and other real estate owned ("OREO") are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the Company’s asset quality or collections department reviews the assumptions and approaches utilized in the appraisal. Appraisal values are discounted from 0 % to 30 % to account for other factors that may impact the value of collateral. In determining the value of individually analyzed collateral dependent loans and OREO, significant unobservable inputs may be used, which include but are not limited to: physical condition of comparable properties sold, net operating income generated by the property and investor rates of return. Mortgage servicing rights - On a quarterly basis, mortgage servicing rights are evaluated for impairment based upon the fair value of the rights as compared to the carrying amount. If the carrying amount of an individual tranche exceeds fair value, impairment is recorded on that tranche so that the servicing asset is carried at fair value. Fair value is determined at a tranche level based on a model that calculates the present value of estimated future net servicing income. The valuation model utilizes assumptions that market participants would use in estimating future net servicing income and are validated against available market data (Level 2). Mortgage banking derivative - The fair value of mortgage banking derivatives are evaluated monthly based on derivative valuation models using quoted prices for similar assets adjusted for specific attributes of the commitments and other observable market data at the valuation date (Level 2). Interest rate swaps – The Company periodically enters into interest rate swap agreements with its commercial customers who desire a fixed rate loan term that is longer than the Company is willing to extend. The Company then enters into a reciprocal swap agreement with a third party that offsets the interest rate risk from the interest rate swap extended to the customer. The interest rate swaps are derivative instruments which are carried at fair value on the statement of financial condition. The Company uses an independent third party to perform a market valuation analysis for both swap positions (Level 2). The Company also enters into cash flow hedge derivative instruments to hedge the risk of variability in cash flows (future interest payments) attributable to changes in the contractually specified LIBOR benchmark interest rate on the Company’s floating rate loan pool. The Company uses an independent third party to perform a market valuation analysis for these derivatives (Level 2). The following table summarizes the financial assets measured at fair value on a recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Assets and Liabilities Measured on a Recurring Basis September 30, 2022 Level 1 Level 2 Level 3 Total (In Thousands) Assets: Available for sale securities: Obligations of U.S. federal government corporations and $ 47,908 $ 96,117 $ — $ 144,025 Mortgage-backed securities — 169,108 — 169,108 Collateralized mortgage obligations — 257,055 — 257,055 Asset-backed securities — 198,548 — 198,548 Corporate bonds — 67,422 — 67,422 Obligations of state and political subdivisions — 227,555 — 227,555 Equity securities 15,336 — — 15,336 Loans held for sale, at fair value — 23,689 105,453 129,142 Interest rate swaps — 4,739 — 4,739 Mortgage banking derivatives — 15,237 — 15,237 Liabilities: Interest rate swaps — 4,739 — 4,739 Cash flow hedge derivative — 41,458 — 41,458 December 31, 2021 Level 1 Level 2 Level 3 Total (In Thousands) Assets: Available for sale securities: Obligations of U.S. federal government corporations and $ — $ 174,710 $ — $ 174,710 Mortgage-backed securities — 206,751 — 206,751 Collateralized mortgage obligations — 260,168 — 260,168 Asset-backed securities — 220,536 — 220,536 Corporate bonds — 70,893 — 70,893 Obligations of state and political subdivisions — 273,202 — 273,202 Equity securities 14,097 — — 14,097 Loans held for sale, at fair value — 28,780 134,167 162,947 Interest rate swaps — 1,287 — 1,287 Cash flow hedge derivative — 854 — 854 Mortgage banking derivatives — 2,336 — 2,336 Liabilities: Interest rate swaps — 1,292 — 1,292 The table below presents a reconciliation of assets that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2022 and 2021 . There were no securities that were measured at Level 3 for the three and nine months ended September 30, 2022 and 2021. Construction loans held for sale Three Months Ended Nine Months Ended 2022 2021 2022 2021 Balance of recurring Level 3 assets at beginning of period $ 117,015 $ 148,659 $ 134,167 $ 123,029 Total gains (losses) for the period Included in change in fair value of loans held for sale ( 7,627 ) ( 3 ) ( 27,417 ) ( 3,757 ) Originations 31,245 32,055 95,311 96,983 Sales ( 35,180 ) ( 41,141 ) ( 96,608 ) ( 76,685 ) Balance of recurring Level 3 assets at end of period $ 105,453 $ 139,570 $ 105,453 $ 139,570 For Level 3 assets and liabilities measured at fair value on a recurring basis, the significant unobservable inputs used in the fair value measurements were as follows: September 30, 2022 Fair Value Valuation Technique Unobservable Inputs Range of (Dollars in Thousands) Construction loans held for sale $ 105,453 Quoted market price Time discount using the 60 day forward contract 0.00 % - 0.30 % December 31, 2021 Fair Value Valuation Technique Unobservable Inputs Range of (Dollars in Thousands) Construction loans held for sale $ 134,167 Quoted market price Time discount using the 60 day forward contract 0.00 % - 1.86 % The following table summarizes the financial assets measured at fair value on a non-recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Assets and Liabilities Measured on a Non-Recurring Basis September 30, 2022 Level 1 Level 2 Level 3 Total Fair (In Thousands) Individually analyzed loans Commercial real estate $ — $ — $ 6,213 $ 6,213 Commercial — — 5,031 5,031 Total individually analyzed loans $ — $ — $ 11,244 $ 11,244 Mortgage servicing rights $ — $ 20,832 $ — $ 20,832 December 31, 2021 Level 1 Level 2 Level 3 Total Fair (In Thousands) Individually analyzed loans Commercial real estate $ — $ — $ 2,749 $ 2,749 Commercial — — 8,564 8,564 Total individually analyzed loans $ — $ — $ 11,313 $ 11,313 Mortgage servicing rights $ — $ 19,538 $ — $ 19,538 For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of September 30, 2022, the significant unobservable inputs used in the fair value measurements were as follows: Fair Valuation Unobservable Range of Weighted (Dollars in Thousands) Individually analyzed Loans- $ 7,386 Appraisals which utilize sales comparison, net income and cost approach Discounts for collection issues and changes in market conditions 10 - 70 % 22.03 % Individually analyzed Loans- $ 3,858 Equitable Recoupment claim estimate Discounts for collection issues 0 % 0 % For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2021, the significant unobservable inputs used in the fair value measurements were as follows: Fair Valuation Unobservable Range of Weighted (Dollars in Thousands) Individually analyzed Loans- $ 5,821 Appraisals which utilize sales comparison, net income and cost approach Discounts for collection issues and changes in market conditions 20 - 50 % 35.18 % Individually analyzed Loans- $ 5,492 Equitable Recoupment claim estimate Discounts for collection issues 25 % 25.00 % The Company has elected the fair value option for new applications accepted after January 31, 2020, and subsequently originated for residential mortgage and permanent construction loans held for sale. These loans are intended for sale and the Company believes that fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loan and in accordance with the Company’s policies. The aggregate fair value of the residential mortgage loans held for sale at September 30, 2022 and December 31, 2021 was $ 23.7 million and $ 28.8 million, respectively, and they had a contractual balance of $ 22.7 million and $ 27.7 million, respectively, for these same periods. The difference between the fair value and the contractual balance is recorded in gains and losses on the sale of loans held for sale. For the three and nine months ended September 30, 2022 , $ 1.7 million and $ 3.0 million, respectively, were recorded in losses on the sale of loans held for sale for the change in fair value. For the three and nine months ended September 30, 2021 , $ 1.2 million and $ 4.4 million, respectively, were recorded in losses on the sale of loans held for sale for the change in fair value. The aggregate fair value of the permanent construction loans held for sale at September 30, 2022 and December 31, 2021 , was $ 105.5 million and $ 134.2 million, respectively, and they had a contractual balance of $ 123.7 million and $ 125.0 million, respectively, for these same periods. The difference between the fair value and the contractual balance is recorded in gains and losses on the sale of loans held for sale. For the three and nine months ended September 30, 2022 , $ 7.6 million and $ 27.4 million, respectively, were recorded in losses on the sale of loans held for sale for the change in fair value. For the three and nine months ended September 30, 2021 , $ 3,000 and $ 3.9 million, respectively, were recorded in losses on the sale of loans held for sale for the change in fair value. In accordance with FASB ASC Topic 825, the Fair Value Measurements tables are a comparative condensed consolidated statement of financial condition based on carrying amount and estimated fair values of financial instruments as of September 30, 2022, and December 31, 2021. Accordingly, the aggregate fair value amounts presented do not represent the underlying value to Premier. Much of the information used to arrive at “fair value” is highly subjective and judgmental in nature and therefore the results may not be precise. Subjective factors include, among other things, estimated cash flows, risk characteristics and interest rates, all of which are subject to change. With the exception of investment securities, the Company’s financial instruments are not readily marketable and market prices do not exist. Since negotiated prices for the instruments, which are not readily marketable, depend greatly on the motivation of the buyer and seller, the amounts that will actually be realized or paid per settlement or maturity of these instruments could be significantly different. The carrying amount of cash and cash equivalents, as a result of their short-term nature, is considered to be equal to fair value and are classified as Level 1. It was not practicable to determine the fair value of FHLB stock due to restrictions placed on its transferability. The Company’s loans were valued on an individual basis, with consideration given to the loans’ underlying characteristics, including account types, remaining terms (in months), annual interest rates or coupons, interest types, past delinquencies, timing of principal and interest payments, current market rates, loss exposures, and remaining balances. The model utilizes a discounted cash flow (“DCF”) approach to estimate the fair value of the loans using assumptions for the coupon rates, remaining maturities, prepayment speeds, projected default probabilities, losses given defaults, and estimates of prevailing discount rates. The DCF approach models the credit losses directly in the projected cash flows. The model applies various assumptions regarding credit, interest, and prepayment risks for the loans based on loan types, payment types and fixed or variable classifications. The estimated fair value of individually analyzed loans is based on the fair value of the collateral, less estimated cost to sell, or the present value of the loan’s expected future cash flows (discounted at the loan’s effective interest rate). All individually analyzed loans are classified as Level 3 within the valuation hierarchy. The fair value of non-interest bearing deposits are considered equal to the amount payable on demand at the reporting date (i.e. carrying value) and are classified as Level 1. The fair value of savings, checking and certain money market accounts are equal to their carrying amounts and are a Level 1 classification. Fair values of fixed rate certificates of deposit are estimated using a DCF calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification. The carrying value of notes payable, as a result of their short-term nature, is considered to be equal to fair value and are classified as Level 1. The fair values of securities sold under repurchase agreements are equal to their carrying amounts resulting in a Level 1 classification. The carrying value of floating rate subordinated debentures was considered to be the carrying value as the debt is floating rate and can be prepaid at any time without penalty. The carrying value of fixed rate subordinated debt is estimated using a DCF calculation that applies interest rates currently being offered in the market to the expected maturity of the debt resulting in a Level 2 classification. FHLB advances with maturities greater than 90 days are valued based on a DCF analysis, using interest rates currently being quoted for similar characteristics and maturities resulting in a Level 2 classification. The cost or value of any call or put options is based on the estimated cost to settle the option at September 30, 2022. The carrying value and estimated fair values of financial instruments at September 30, 2022 and December 31, 2021, were as follows: Fair Value Measurements at September 30, 2022 (In Thousands) Carrying Total Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 104,992 $ 104,992 $ 104,992 $ — $ — Securities available for sale 1,063,713 1,063,713 47,908 1,015,805 — Equity securities 15,336 15,336 15,336 — — Federal Home Loan Bank Stock 28,262 N/A N/A N/A N/A Loans receivable, net 6,137,082 5,940,156 — — 5,940,156 Loans held for sale, carried at fair value 129,142 129,142 — 23,689 105,453 Financial Liabilities: Deposits $ 6,732,505 $ 6,706,619 $ 5,844,616 $ 862,003 $ — Advances from Federal Home Loan Bank 411,000 410,998 — 410,998 — Subordinated debentures 85,071 77,175 — 77,175 — Fair Value Measurements at December 31, 2021 (In Thousands) Carrying Total Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 161,566 $ 161,566 $ 161,566 $ — $ — Securities available for sale 1,206,260 1,206,260 — 1,206,260 — Equity securities 14,097 14,097 14,097 — — Federal Home Loan Bank Stock 11,585 N/A N/A N/A N/A Loans receivable, net 5,229,700 5,265,689 — — 5,265,689 Loans held for sale, carried at fair value 162,947 162,947 — 28,780 134,167 Financial Liabilities: Deposits $ 6,282,051 $ 6,280,336 $ 5,481,928 $ 798,408 $ — Subordinated debentures 84,976 85,417 — 85,417 — |
Stock Compensation Plans
Stock Compensation Plans | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Compensation Plans | 4. Stock Compensation Plans Premier has established equity based compensation plans for its directors and employees. On February 27, 2018, the Board adopted, and the shareholders approved at the 2018 Annual Shareholders Meeting, the Premier Financial Corp. 2018 Equity Incentive Plan (the “2018 Equity Plan”). The 2018 Equity Plan replaced all existing plans, although the Company’s former equity plans remain in existence to the extent there were outstanding grants thereunder at the time the 2018 Equity Plan was approved. In addition, as a result of the Company's merger (the "Merger") with United Community Federal Corp. ("UCFC"), Premier assumed certain outstanding stock options granted under UCFC’s Amended and Restated 2007 Long-Term Incentive Plan (the “UCFC 2007 Plan”) and UCFC’s 2015 Long Term Incentive Plan, which has since been renamed as the “Premier Financial Corp. 2015 Long Term Incentive Plan” (the “2015 Plan”). Premier also assumed the shares available for future issuance under the 2015 Plan as of the effective date of the Merger, with appropriate adjustments to the number of shares available to reflect the Merger. The stock options assumed from UCFC in the Merger remain subject to the terms of the 2015 Plan, but became exercisable solely to purchase shares of Premier, with appropriate adjustments to the number of shares subject to the assumed stock options and the exercise price of such stock options. Besides certain options issued under the First Defiance Financial Corp. 2010 Equity Incentive Plan, all awards currently outstanding are issued under the 2018 Equity Plan or the 2015 Plan. The 2018 Equity Plan and the 2015 Plan were each amended and restated in February 2022 to align certain administrative components of the plans in addition to enhancing certain governance components. New awards will be made under either the 2018 Equity Plan or the 2015 Plan as the Company determines. The 2018 Equity Plan allows for issuance of up to 900,000 common shares through the award of options, restricted stock, stock, stock appreciation rights, or other stock-based awards. The 2015 Plan allows for the issuance of up to 1.2 million common shares, as adjusted for the Merger, through the award of options, stock, restyricted stock, stock units, stock appreciation rights, or performance stock awards. The Company maintains Long-Term Equity Incentive Plans (each, an "LTIP") for select members of management (the "Executive LTIP") and a Key Employee and Commercial Lender Plan (the "Key Plan"). Under the Executive LTIP, participants may earn between 20 % to 50 % of their salary for potential payout in the form of equity awards based on the achievement of certain corporate performance targets over a three-year period. The Company granted 86,190 performance stock units ("PSUs") to the participants under the 2021 Executive LTIP during the first half of 2022 , which represents the maximum target award. The value of awards issued in 2021 and 2022 under the Executive LTIP will be determined individually at the end of each respective 36 month performance period ending December 31. The benefits earned under these LTIPs will be paid out in equity in the first quarter following the end of the performance period. The participants will receive all or a portion of the award if their employment is terminated by the Company without cause, by the participant in certain situations, or by death, disability or retirement of the participant. The maximum amount of compensation expense that may be earned for the PSUs at September 30, 2022 , is approximately $ 6.8 million in the aggregate. However, the estimated expense that is expected to be earned as of September 30, 2022, is $ 4.5 million of which $ 1.3 million was unrecognized at September 30, 2022 , and will be recognized over the remaining performance periods. Total expense of $ 432,000 and $ 842,000 was recorded during each of the three and nine months ended September 30, 2022 , respectively, compared to expense of $ 825,000 and $ 1.5 million for the three and nine months ended September 30, 2021, respectively. Beginning in 2022, under the Key Plan, the participants are granted restricted stock awards ("RSAs") based upon the achievement of certain targets in the prior year. Prior to 2022, restricted stock units ("RSUs") were issued to participants under the same plan. The participants can earn from 5 % to 10 % of their salary in RSAs or RSUs, that vest three years from the date of grant. The Company granted 19,612 in RSAs and 17,542 RSUs in the first quarter of 2022 and 2021, respectively, as a payout under the Key Plan. In the nine months ended September 30, 2022 , the Company also granted 33,101 discretionary RSAs that vest over a period of time ranging from one to three years . Of these grants, 14,712 were issued to directors and have a one year vesting period. The fair value of all granted restricted shares was determined by the stock price at the date of the grant. At September 30, 2022, a total of 347,343 RSAs were outstanding. Compensation expense is recognized over the performance or vesting period. Total expense of $ 280,000 and $ 786,000 was recorded during each of the three and nine months ended September 30, 2022 , respectively, compared to expense of $ 351,000 and $ 908,000 for the three and nine months ended September 30, 2021 , respectively. Approximately $ 2.3 million and $ 2.7 million is included within other liabilities at September 30, 2022 and December 31, 2021, respectively, related to the cash portion of the Company's Short-Term Incentive Plans. The f ollowing table sets forth Premier's performance and restricted stock activity during the nine months ended September 30, 2022: Performance Stock Units Restricted Stock Units Restricted Stock Awards Unvested Shares Shares Weighted- Shares Weighted- Shares Weighted- Unvested at January 1, 2022 161,674 $ 28.36 51,773 $ 28.44 58,260 $ 29.71 Granted 86,190 30.67 — — 52,713 29.24 Vested — — ( 13,637 ) 29.00 ( 35,159 ) 27.97 Forfeited ( 3,030 ) 31.12 ( 6,340 ) 27.25 ( 5,101 ) 30.50 Unvested at September 30, 2022 244,834 $ 29.14 31,796 $ 28.44 70,713 $ 30.17 As of September 30, 2022 , 29,661 options to acquire Premier shares were outstanding at option prices based on the market value of the underlying shares on the date the options were granted. All options expire ten years from the date of grant. Vested options of retirees expire on the earlier of the scheduled expiration date or one year after the retirement date. The fair value of each option award is estimated on the date of grant using the Black-Scholes model. Expected volatilities are based on historical volatilities of the Company’s common shares. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. There were no options granted during the nine months ended September 30, 2022 and 2021. Following is stock option activity under the plans during the nine months ended September 30, 2022: Options Weighted Weighted Aggregate Options outstanding, January 1, 2022 35,661 $ 21.72 Forfeited or cancelled ( 3,000 ) 17.68 Exercised ( 3,000 ) 17.68 Granted — — Options outstanding, September 30, 2022 29,661 $ 22.54 Exercisable at September 30, 2022 29,661 $ 22.54 4.34 $ 100 Proceeds, related tax benefits realized from options exercised and intrinsic value of options exercised were as follows (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Proceeds of options exercised $ 53 $ — $ 53 $ 8 Related tax benefit recognized 6 — 6 — Intrinsic value of options exercised 29 — 29 11 As of September 30, 2022 , there was a de minimus amount of total unrecognized compensation costs related to unvested stock options granted under the Company’s equity plans. The cost is expected to be recognized over a weighted-average period of one month . |
Dividends on Common Stock
Dividends on Common Stock | 9 Months Ended |
Sep. 30, 2022 | |
Dividends, Common Stock [Abstract] | |
Dividends on Common Stock | 5. Dividends on Common Stock Premier declared and paid $ 0.90 per common stock dividend in the first nine months of 2022 and $ 0.77 per common stock dividend in the first nine months of 2021 . Premier declared and paid a $ 0.30 per common stock dividend in the third quarter of 2022 and declared and paid a $ 0.27 per common stock dividend in the third quarter of 2021 . |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 6. Earnings Per Common Share Basic earnings per share are calculated using the two-class method. The two-class method is an earnings allocation formula under which earnings per share is calculated from common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings distributed and undistributed, are allocated to participating securities and common shares based on their respective rights to receive dividends. Unvested share-based payment awards that contain non-forfeitable rights to dividends are considered participating securities (i.e., unvested restricted stock), not subject to performance based measures. The following table sets forth the computation of basic and diluted earnings per common share: Three Months Ended Nine Months Ended 2022 2021 2022 2021 (In Thousands, except per share data) Basic Earnings Per Share: Net income available to common shareholders $ 28,195 $ 28,360 $ 76,912 $ 100,741 Less: income allocated to participating securities 22 27 80 98 Net income allocated to common shareholders 28,173 28,333 76,832 100,643 Weighted average common shares outstanding including 35,610 37,135 35,746 37,262 Less: Participating securities 28 35 37 36 Average common shares 35,582 37,100 35,709 37,226 Basic earnings per common share $ 0.79 $ 0.76 $ 2.15 $ 2.70 Diluted Earnings Per Share: Net income allocated to common shareholders $ 28,173 $ 28,333 $ 76,832 $ 100,643 Weighted average common shares outstanding for basic earnings 35,582 37,100 35,709 37,226 Add: Dilutive effects of stock options and restricted stock units 122 85 109 85 Average shares and dilutive potential common shares 35,704 37,185 35,818 37,311 Diluted earnings per common share $ 0.79 $ 0.76 $ 2.15 $ 2.70 There were 17,644 and 18,437 shares for the three and nine months ended September 30, 2022 , respectively, that were excluded from the diluted earnings per common share calculation. There were no shares for the three and nine months ended September 30, 2021 that were excluded from the dilutive earnings per common share calculation as no shares were anti-dilutive. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2022 | |
Marketable Securities [Abstract] | |
Investment Securities | 7. Investment Securities The following is a summary of available-for-sale securities: Amortized Gross Gross Fair Value (In Thousands) At September 30, 2022 Available-for-Sale Securities: Obligations of U.S. government corporations and agencies $ 173,907 $ — $ ( 29,882 ) $ 144,025 Mortgage-backed securities 204,655 ( 35,547 ) 169,108 Collateralized mortgage obligations 306,623 — ( 49,568 ) 257,055 Asset-backed securities 206,505 557 ( 8,514 ) 198,548 Corporate bonds 73,659 ( 6,237 ) 67,422 Obligations of state and political subdivisions 286,213 32 ( 58,690 ) 227,555 Total Available-for-Sale $ 1,251,562 $ 589 $ ( 188,438 ) $ 1,063,713 Amortized Gross Gross Fair Value (In Thousands) At December 31, 2021 Available-for-sale Obligations of U.S. government corporations and agencies $ 174,644 $ 984 $ ( 918 ) $ 174,710 Mortgage-backed securities 208,281 851 ( 2,381 ) 206,751 Collateralized mortgage obligations 264,541 363 ( 4,736 ) 260,168 Asset-backed securities 221,545 610 ( 1,619 ) 220,536 Corporate bonds 70,008 1,160 ( 275 ) 70,893 Obligations of state and political subdivisions 272,334 5,898 ( 5,030 ) 273,202 Total Available-for-Sale $ 1,211,353 $ 9,866 $ ( 14,959 ) $ 1,206,260 The amortized cost and fair value of the investment securities portfolio at September 30, 2022, are shown below by contractual maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. For purposes of the maturity table, MBS, CMOs and ABS, which are not due at a single maturity date, have not been allocated over the maturity groupings. These securities may mature earlier than their weighted-average contractual maturities because of principal prepayments. Available-for-Sale Amortized Fair Value (In Thousands) Due in one year or less $ 3,238 $ 3,239 Due after one year through five years 49,077 45,193 Due after five years through ten years 233,374 202,166 Due after ten years 248,090 188,403 MBS/CMO/ABS 717,783 624,712 $ 1,251,562 $ 1,063,713 Investment securities with a carrying amount of $ 736.1 million and $ 564.4 million at September 30, 2022 and December 31, 2021, respectively, were pledged as collateral. The following tables summarize Premier’s securities that were in an unrealized loss position at September 30, 2022 and December 31, 2021: Duration of Unrealized Loss Position Less than 12 Months 12 Months or Longer Total Fair Value Gross Fair Value Gross Fair Value Unrealized (In Thousands) At September 30, 2022 Available-for-sale securities: Obligations of U.S. government corporations and agencies $ 99,589 $ ( 19,180 ) $ 44,436 $ ( 10,702 ) $ 144,025 $ ( 29,882 ) Mortgage-backed securities 48,282 ( 5,761 ) 120,826 ( 29,786 ) 169,108 ( 35,547 ) Collateralized mortgage obligations 111,746 ( 14,355 ) 145,309 ( 35,213 ) 257,055 ( 49,568 ) Asset-backed securities 82,184 ( 1,816 ) 81,491 ( 6,698 ) 163,675 ( 8,514 ) Corporate bonds 57,170 ( 4,946 ) 10,252 ( 1,291 ) 67,422 ( 6,237 ) Obligations of state and political subdivisions 128,802 ( 19,309 ) 89,875 ( 39,381 ) 218,677 ( 58,690 ) Total available-for-sale $ 527,773 $ ( 65,367 ) $ 492,189 $ ( 123,071 ) $ 1,019,962 $ ( 188,438 ) Duration of Unrealized Loss Position Less than 12 Months 12 Months or Longer Total Fair Value Gross Fair Value Gross Fair Value Unrealized (In Thousands) At December 31, 2021 Available-for-sale securities: Obligations of U.S. government corporations and agencies $ 73,810 $ ( 918 ) $ — $ — $ 73,810 $ ( 918 ) Mortgage-backed securities-residential 167,379 ( 2,048 ) 13,689 ( 333 ) 181,068 ( 2,381 ) Collateralized mortgage obligations 222,134 ( 4,736 ) — — 222,134 ( 4,736 ) Asset-backed securities 140,226 ( 1,589 ) 2,705 ( 30 ) 142,931 ( 1,619 ) Corporate bonds 24,173 ( 270 ) 504 ( 5 ) 24,677 ( 275 ) Obligations of state and political subdivisions 99,199 ( 3,355 ) 34,548 ( 1,675 ) 133,747 ( 5,030 ) Total available-for-sale $ 726,921 $ ( 12,916 ) $ 51,446 $ ( 2,043 ) $ 778,367 $ ( 14,959 ) The Company realized no gains from the sale of available-for-sale securities in the three and nine months ended September 30, 2022. For the three and nine months ended September 30, 2021 , the Company had $ 233,000 and $ 2.2 million in realized gains from the sale of investment securities. Quarterly, the Company evaluates if any security has a fair value less than its amortized cost. Once these securities are identified, in order to determine whether a decline in fair value resulted from a credit loss or other factors, the Company performs further analysis as outlined below: • Review the extent to which the fair value is less than the amortized cost and observe the security’s lowest credit rating as reported by third-party credit ratings companies. • Any security that has a loss rate greater than 3 %, credit rating below investment grade or not rated by a third-party credit ratings company would be subjected to additional analysis that may include, but is not limited to: changes in market interest rates, changes in securities credit ratings, security type, service area economic factors, financial performance of the issuer/or obligor of the underlying issue and third-party guarantee. • If the Company determines that a credit loss exists, the credit portion of the allowance will be measured using a DCF analysis using the effective interest rate as of the security’s purchase date. The amount of credit loss the Company records will be limited to the amount by which the amortized cost exceeds the fair value. As of September 30, 2022, management determined that no credit loss exists and that the unrealized losses are due to the increased interest rate environment. At September 30, 2022, and December 31, 2021 , the Company held preferred and common stock of various bank holding companies totaling $ 15.3 million and $ 14.1 million, respectively. During the three and nine months ended September 30, 2022 , an unrealized gain of $ 43,000 and a $ 1.8 million unrealized loss were recorded within gain (loss) on equity securities on the Consolidated Condensed Statements of Income. During the three and nine months ended September 30, 2021 , $ 20,000 and $ 822,000 of unrealized gains were recorded within gain (loss) on equity securities on the Consolidated Condensed Statements of Income. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2022 | |
Loans and Leases Receivable, Net Amount [Abstract] | |
Loans | 8. Loans Loan segments have been identified by evaluating the portfolio based on collateral and credit risk characteristics. Loans receivable consist of the following: September 30, December 31, (In Thousands) Real Estate: Residential $ 1,478,360 $ 1,167,466 Commercial 2,674,078 2,450,349 Construction 1,242,045 862,815 5,394,483 4,480,630 Other Loans: Commercial 1,042,604 895,638 Home equity and improvement 272,367 264,354 Consumer finance 212,790 126,417 1,527,761 1,286,409 Loans before deferred loan origination fees and costs 6,922,244 5,767,039 Deduct: Undisbursed construction loan funds ( 724,797 ) ( 477,890 ) Net deferred loan origination fees and costs 10,261 7,019 Allowance for credit losses ( 70,626 ) ( 66,468 ) Total loans $ 6,137,082 $ 5,229,700 The Company has responded to the pandemic in numerous ways, including by actively participating in the Paycheck Protection Program (“PPP”) and distributing $ 636.9 million to small businesses in our markets. As of September 30, 2022 , the Company had $ 1.2 million in PPP loans, that remained unpaid and were included in commercial loans in the above loan table. As of December 31, 2021 , the Company had $ 58.9 million in PPP loans. The following table presents the amortized cost basis of collateral-dependent loans by class of loans and collateral type as of September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 Real Estate Equipment and Machinery Inventory and Receivables Vehicles Total Real Estate: Residential $ 54 $ — $ — $ — $ 54 Commercial 12,394 — 2,716 — 15,110 Construction — — — — — Other Loans: Commercial 2,607 561 3,858 — 7,026 Home equity and improvement — — — — — Consumer finance — — — — — Total $ 15,055 $ 561 $ 6,574 $ — $ 22,190 December 31, 2021 Real Estate Equipment and Machinery Inventory and Receivables Vehicles Total Real Estate: Residential $ 226 $ — $ — $ — $ 226 Commercial 18,399 — — — 18,399 Construction — — — — — Other Loans: Commercial 1,574 160 14,023 25 15,782 Home equity and improvement — — — — — Consumer finance — — — — — Total $ 20,199 $ 160 $ 14,023 $ 25 $ 34,407 Non-performing loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually analyzed loans. All loans greater than 90 days past due are placed on non-accrual status. The following table presents the current balance of the aggregate amounts of non-performing assets, comprised of non-performing loans and real estate owned as of the dates indicated: September 30, December 31, (In Thousands) Non-accrual loans with reserve $ 19,308 $ 35,480 Non-accrual loans without reserve 13,829 12,534 Loans 90 days plus past due and still accruing — — Total non-performing loans 33,137 48,014 Real estate and other assets held for sale 416 171 Total non-performing assets $ 33,553 $ 48,185 Troubled debt restructuring, still accruing $ 6,909 $ 7,768 The following table presents the aging of the amortized cost in past due and non-accrual loans as of September 30, 2022, by class of loans (in thousands): Current 30 - 59 days 60 - 89 days 90 + days Total Total Real Estate: Residential $ 1,460,105 $ 547 $ 5,816 $ 4,954 $ 11,317 $ 6,458 Commercial 2,663,003 809 177 11,570 12,556 13,709 Construction 517,248 — — — — — Other Loans: Commercial 1,031,322 333 50 4,685 5,068 4,895 Home equity and improvement 266,002 2,586 207 992 3,785 1,423 Consumer finance 209,642 2,540 803 1,759 5,102 1,881 PCD 18,332 358 220 3,648 4,226 4,771 Total Loans $ 6,165,654 $ 7,173 $ 7,273 $ 27,608 $ 42,054 $ 33,137 The following table presents the aging of the recorded investment in past due and non-accrual loans as of December 31, 2021, by class of loans (in thousands): Current 30 - 59 days 60 - 89 days 90 + days Total Total Real Estate: Residential $ 1,144,533 $ 234 $ 5,340 $ 7,487 $ 13,061 $ 9,034 Commercial 2,439,552 96 847 7,168 8,111 14,621 Construction 383,136 43 1,746 — 1,789 — Other Loans: Commercial 884,025 42 35 867 944 11,531 Home equity and improvement 257,055 1,851 408 1,634 3,893 2,051 Consumer finance 124,073 1,112 819 1,728 3,659 1,873 PCD 25,111 225 1,005 5,996 7,226 8,904 Total Loans $ 5,257,485 $ 3,603 $ 10,200 $ 24,880 $ 38,683 $ 48,014 Troubled Debt Restructurings As of September 30, 2022, and December 31, 2021 , the Company had a recorded investment in TDRs of $ 19.8 million and $ 11.9 million, respectively. The Company allocated $ 353,000 and $ 378,000 of reserves to those loans at September 30, 2022, and December 31, 2021 , respectively, and had committed to lend additional amounts totaling up to $ 319,000 and $ 348,000 at September 30, 2022, and December 31, 2021, respectively. The Company offers various types of concessions when modifying a loan, however, forgiveness of principal is rarely granted. Each TDR is uniquely designed to meet the specific needs of the borrower. Commercial and industrial loans modified in a TDR often involve temporary interest-only payments, term extensions and converting revolving credit lines to term loans. Additional collateral or an additional guarantor is often requested when granting a concession. Commercial mortgage loans modified in a TDR often involve temporary interest-only payments, re-amortization of remaining debt in order to lower payments and sometimes reducing the interest rate lower than the current market rate. Residential mortgage loans modified in a TDR are comprised of loans where monthly payments are lowered, either through interest rate reductions or principal only payments for a period of time, to accommodate the borrowers’ financial needs, interest is capitalized into principal, or the term and amortization are extended. Home equity modifications are made infrequently and usually involve providing an interest rate that is lower than the borrower would be able to obtain due to credit issues. All retail loans where the borrower is in bankruptcy are classified as TDRs regardless of whether or not a concession is made. Of the loans modified in a TDR as of September 30, 2022 , $ 12.9 million were on non-accrual status and partial charge-offs have in some cases been taken against the outstanding balance. Loans modified as a TDR may have the financial effect of increasing the allowance associated with the loan. If the loan is determined to be collateral dependent, the estimated fair value of the collateral, less any selling costs is used to determine if there is a need for a specific allowance or charge-off. If the loan is determined to be cash flow dependent, the allowance is measured based on the present value of expected future cash flows discounted at the loan’s pre-modification effective interest rate. The following tables present loans by class modified as TDRs that occurred during the three and nine months ended September 30, 2022: Loans Modified as a TDR for the Three Loans Modified as a TDR for the Nine Troubled Debt Restructurings Number of Recorded Investment Number of Recorded Investment Real Estate: Residential 3 $ 1,084 11 $ 2,097 Commercial 1 115 4 5,094 Construction — — — — Other Loans: Commercial 1 17 3 4,281 Home equity and improvement 3 198 6 277 Consumer finance 3 43 8 87 Total 11 $ 1,457 32 $ 11,836 The loans described above increased the ACL by $ 28,000 and $ 428,000 in the three and nine months ended September 30, 2022, respectively. Loans Modified as a TDR for the Three Loans Modified as a TDR for the Nine Troubled Debt Restructurings Number of Recorded Investment Number of Recorded Investment Real Estate: Residential 1 $ 263 4 $ 512 Commercial — — — — Construction — — — — Other Loans: Commercial 1 275 6 1,853 Home equity and improvement — — — — Consumer finance — — — — Total 2 $ 538 10 $ 2,365 The loans described above increased the ACL by $ 9,000 and $ 382,000 in the three and nine months ended September 30, 2021, respectively. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed on the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. There were no TDRs that subsequently defaulted as of September 30, 2021 . The following table presents loans by class modified as TDRs for which there was a payment default within twelve months following the modification during the three and nine months ended September 30, 2022: Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 (Dollars in Thousands) (Dollars in Thousands) Troubled Debt Restructurings That Subsequently Defaulted Number of Recorded Investment Number of Recorded Investment Real Estate: Residential 2 $ 219 3 $ 282 Commercial — — — — Construction — — — — Other Loans: Commercial — — — — Home equity and improvement — — — — Consumer finance 2 40 2 40 Total 4 $ 259 5 $ 322 The TDRs that subsequently defaulted described above increased the ACL by $ 9,000 and $ 11,000 for each of the three and nine months ended September 30, 2022. Credit Quality Indicators Loans are categorized into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Loans are analyzed individually by classifying the loans by credit risk. This analysis includes all non-homogeneous loans, such as commercial and commercial real estate loans and certain homogenous mortgage, home equity and consumer loans. This analysis is performed on a quarterly basis. Premier uses the following definitions for risk ratings: Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. As of September 30, 2022, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands): Class Unclassified Special Substandard Doubtful Total classified Total Real Estate: Residential $ 1,463,034 $ 1,267 $ 7,121 $ — $ 7,121 $ 1,471,422 Commercial 2,588,092 65,233 22,234 — 22,234 2,675,559 Construction 515,948 1,300 — — — 517,248 Other Loans: Commercial 1,009,333 20,106 6,951 — 6,951 1,036,390 Home equity and improvement 268,385 — 1,402 — 1,402 269,787 Consumer finance 212,853 — 1,891 — 1,891 214,744 PCD 17,044 93 5,421 — 5,421 22,558 Total Loans $ 6,074,689 $ 87,999 $ 45,020 $ — $ 45,020 $ 6,207,708 As of December 31, 2021, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands): Class Unclassified Special Substandard Doubtful Total classified Total Real Estate: Residential $ 1,146,212 $ 1,316 $ 10,066 $ — $ 10,066 $ 1,157,594 Commercial 2,324,846 93,676 29,141 — 29,141 2,447,663 Construction 365,403 19,522 — — — 384,925 Other Loans: Commercial 856,402 14,815 13,752 — 13,752 884,969 Home equity and improvement 258,914 — 2,034 — 2,034 260,948 Consumer finance 125,879 — 1,853 — 1,853 127,732 PCD 19,547 101 12,689 — 12,689 32,337 Total Loans $ 5,097,203 $ 129,430 $ 69,535 $ — $ 69,535 $ 5,296,168 The tables below present the amortized cost basis of loans by credit quality indicator and class of loans as of September 30, 2022 and December 31, 2021 (in thousands): Term of loans by origination 2022 2021 2020 2019 2018 Prior Revolving Loans Total As of September 30, 2022 Real Estate Residential: Risk Rating Pass $ 194,669 $ 472,696 $ 338,397 $ 95,857 $ 53,398 $ 306,452 $ 1,565 $ 1,463,034 Special Mention — 183 182 — — 144 758 1,267 Substandard — 1,397 741 856 591 3,536 — 7,121 Doubtful — — — — — — — — Total $ 194,669 $ 474,276 $ 339,320 $ 96,713 $ 53,989 $ 310,132 $ 2,323 $ 1,471,422 Commercial: Risk Rating Pass $ 468,444 $ 504,860 $ 521,889 $ 321,775 $ 198,095 $ 560,364 $ 12,665 $ 2,588,092 Special Mention 2,345 2,284 — 268 25,660 34,210 466 65,233 Substandard 116 2,121 549 4,612 4,490 10,120 226 22,234 Doubtful — — — — — — — — Total $ 470,905 $ 509,265 $ 522,438 $ 326,655 $ 228,245 $ 604,694 $ 13,357 $ 2,675,559 Construction: Risk Rating Pass $ 213,186 $ 220,569 $ 52,156 $ 30,037 $ - $ — $ - $ 515,948 Special Mention — 1,300 — — — — — 1,300 Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 213,186 $ 221,869 $ 52,156 $ 30,037 $ - $ — $ - $ 517,248 Other Loans Commercial: Risk Rating Pass $ 224,003 $ 209,901 $ 97,286 $ 58,663 $ 28,214 $ 27,355 $ 363,911 $ 1,009,333 Special Mention 2,527 3,733 2,099 1,694 1,291 5,572 3,190 20,106 Substandard 40 120 3,898 5 190 200 2,498 6,951 Doubtful — — — — — — — — Total $ 226,570 $ 213,754 $ 103,283 $ 60,362 $ 29,695 $ 33,127 $ 369,599 $ 1,036,390 Home equity and Improvement: Risk Rating Pass $ 21,616 $ 21,726 $ 5,606 $ 3,744 $ 1,948 $ 31,676 $ 182,069 $ 268,385 Special Mention — — — — — — — — Substandard — 14 — 28 32 521 807 1,402 Doubtful — — — — — — — — Total $ 21,616 $ 21,740 $ 5,606 $ 3,772 $ 1,980 $ 32,197 $ 182,876 $ 269,787 Consumer Finance: Risk Rating Pass $ 123,887 $ 36,307 $ 19,016 $ 15,473 $ 5,140 $ 3,279 $ 9,751 $ 212,853 Special Mention — — — — — — — — Substandard 61 554 715 393 97 70 1 1,891 Doubtful — — — — — — — — Total $ 123,948 $ 36,861 $ 19,731 $ 15,866 $ 5,237 $ 3,349 $ 9,752 $ 214,744 PCD: Risk Rating Pass $ — $ — $ — $ 137 $ 376 $ 13,343 $ 3,188 $ 17,044 Special Mention — — — — — 93 — 93 Substandard — — — 3 27 4,393 998 5,421 Doubtful — — — — — — — — Total $ — $ — $ — $ 140 $ 403 $ 17,829 $ 4,186 $ 22,558 Term of loans by origination 2021 2020 2019 2018 2017 Prior Revolving Loans Total As of December 31, 2021 Real Estate Residential: Risk Rating Pass $ 219,006 $ 373,439 $ 112,781 $ 65,544 $ 71,794 $ 301,735 $ 1,913 $ 1,146,212 Special Mention — 190 — — 59 109 958 1,316 Substandard 465 780 1,198 1,006 2,095 4,522 — 10,066 Doubtful — — — — — — — — Total $ 219,471 $ 374,409 $ 113,979 $ 66,550 $ 73,948 $ 306,366 $ 2,871 $ 1,157,594 Commercial: Risk Rating Pass $ 514,333 $ 493,575 $ 388,117 $ 230,734 $ 237,712 $ 451,113 $ 9,262 $ 2,324,846 Special Mention 294 5,349 5,533 11,055 49,993 20,662 790 93,676 Substandard 172 570 4,920 5,525 62 17,665 227 29,141 Doubtful — — — — — — — — Total $ 514,799 $ 499,494 $ 398,570 $ 247,314 $ 287,767 $ 489,440 $ 10,279 $ 2,447,663 Construction: Risk Rating Pass $ 198,221 $ 100,606 $ 55,707 $ 10,039 $ 685 $ 145 $ — $ 365,403 Special Mention — 12,500 — 5,996 1,026 — — 19,522 Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 198,221 $ 113,106 $ 55,707 $ 16,035 $ 1,711 $ 145 $ — $ 384,925 Other Loans Commercial: Risk Rating Pass $ 293,644 $ 132,703 $ 84,668 $ 47,421 $ 24,269 $ 17,038 $ 256,659 $ 856,402 Special Mention — 2,180 4,094 272 1,264 4,663 2,342 14,815 Substandard 136 11,550 23 288 388 131 1,236 13,752 Doubtful — — — — — — — — Total $ 293,780 $ 146,433 $ 88,785 $ 47,981 $ 25,921 $ 21,832 $ 260,237 $ 884,969 Home equity and Improvement: Risk Rating Pass $ 24,707 $ 6,870 $ 4,867 $ 2,879 $ 5,534 $ 31,317 $ 182,740 $ 258,914 Special Mention — — — — — — — — Substandard 15 — 28 48 27 690 1,226 2,034 Doubtful — — — — — — — — Total $ 24,722 $ 6,870 $ 4,895 $ 2,927 $ 5,561 $ 32,007 $ 183,966 $ 260,948 Consumer Finance: Risk Rating Pass $ 50,202 $ 25,866 $ 23,000 $ 9,643 $ 4,313 $ 2,769 $ 10,086 $ 125,879 Special Mention — — — — — — — — Substandard 196 707 619 129 67 131 4 1,853 Doubtful — — — — — — — — Total $ 50,398 $ 26,573 $ 23,619 $ 9,772 $ 4,380 $ 2,900 $ 10,090 $ 127,732 PCD: Risk Rating Pass $ — $ — $ 170 $ 1,753 $ 1,860 $ 12,496 $ 3,268 $ 19,547 Special Mention — — — — — 101 — 101 Substandard — — 67 28 3,242 6,490 2,862 12,689 Doubtful — — — — — — — — Total $ — $ — $ 237 $ 1,781 $ 5,102 $ 19,087 $ 6,130 $ 32,337 Allowance for Credit Losses The Company has adopted ASU 2016-13 (Topic 326 – Credit Losses) to calculate the ACL, which requires a projection of credit loss over the contract lifetime of the credit adjusted for prepayment tendencies. This valuation account is deducted from the loans amortized cost basis to present the net amount expected to be collected on the loan. The ACL is adjusted through the provision for credit losses and reduced by net charge offs of loans. The credit loss estimation process involves procedures that consider the unique characteristics of the Company’s portfolio segments. These segments are further disaggregated into the loan pools for monitoring. When computing allowance levels, a model of risk characteristics, such as loss history and delinquency status, along with current conditions and a supportable forecast is used to determine credit loss assumptions. The Company is generally utilizing two methodologies to analyze loan pools, DCF and probability of default/loss given default (“PD/LGD”). A default can be triggered by one of several different asset quality factors including past due status, non-accrual status, TDR status or if the loan has had a charge-off. The PD/LGD utilizes charge off data from the Federal Financial Institutions Examination Council to construct a default rate. This default rate is further segmented based on the risk of the credit assigning a higher default rate to riskier credits. The DCF methodology was selected as the most appropriate for loan segments with longer average lives and regular payment structures. The DCF model has two key components, the loss driver analysis combined with a cash flow analysis. The contractual cash flow is adjusted for PD/LGD and prepayment speed to establish a reserve level. The prepayment studies are updated quarterly by a third-party for each applicable pool. The Company estimates losses over an approximate one-year forecast period using Moody’s baseline economic forecasts, and then reverts to longer term historical loss experience over a three-year period. The remaining life method was selected for the consumer direct loan segment since the pool contains loans with many different structures and payment streams and collateral. The weighted average remaining life uses an average annual charge-off rate applied to the contractual term, further adjusted for estimated prepayments to determine the unadjusted historical charge-off rate for the remaining balance of assets. Portfolio Segments Loan Pool Methodology Loss Drivers Residential real estate 1-4 Family nonowner occupied DCF National unemployment 1-4 Family owner occupied DCF National unemployment Commercial real estate Commercial real estate nonowner occupied DCF National unemployment Commercial real estate owner occupied DCF National unemployment Multi Family DCF National unemployment Agriculture Land DCF National unemployment Other commercial real estate DCF National unemployment Construction secured by real estate Construction Other PD/LGD Call report loss history Construction Residential PD/LGD Call report loss history Commercial Commercial working capital PD/LGD Call report loss history Agriculture production PD/LGD Call report loss history Other commercial PD/LGD Call report loss history Home equity and improvement Home equity and improvement PD/LGD Call report loss history Consumer finance Consumer direct Remaining life Call report loss history Consumer indirect DCF National unemployment According to the accounting standard, an entity may make an accounting policy election not to measure an ACL for accrued interest receivable if the entity writes off the applicable accrued interest receivable balance in a timely manner. The Company has made the accounting policy election not to measure an ACL for accrued interest receivables for all loan segments. Current policy dictates that a loan will be placed on nonaccrual status, with the current accrued interest receivable balance being written off, upon the loan being 90 days delinquent or when the loan is deemed to be collateral dependent and the collateral analysis shows less than 1.2 times discounted collateral coverage based on a current assessment of the value of the collateral. In addition, ASC Topic 326 requires the Company to establish a liability for anticipated credit losses for unfunded commitments. To accomplish this, the company must first establish a loss expectation for extended (funded) commitments. This loss expectation, expressed as a ratio to the amortized cost basis, is then applied to the portion of unfunded commitments not considered unilaterally cancelable and is considered by the company’s management as likely to fund over the life of the instrument. At September 30, 2022 , the Company had $ 1.8 billion in unfunded commitments and set aside $ 7.1 million in anticipated credit losses. This reserve is recorded in other liabilities as opposed to the ACL. The determination of ACL is complex and the Company makes decisions on the effects of matters that are inherently uncertain. Evaluations of the loan portfolio and individual credits require certain estimates, assumptions and judgements as to the facts and circumstances related to particular situations or credits. There may be significant changes in the ACL in future periods determined by prevailing factors at that point in time along with future forecasts. The following table discloses allowance for credit loss (“ACL”) activity for the three and nine months ended September 30, 2022 and 2021 by portfolio segment (in thousands): Three Months Ended September 30, 2022 Residential Real Estate Commercial Construction Commercial Home Equity Consumer Total Beginning Allowance $ 14,113 $ 34,952 $ 2,999 $ 9,762 $ 4,003 $ 1,245 $ 67,074 Charge-Offs ( 15 ) ( 206 ) — ( 29 ) ( 47 ) ( 185 ) ( 482 ) Recoveries 77 48 — 84 95 24 328 Provisions 2,136 ( 2,082 ) 287 2,465 159 741 3,706 Ending Allowance $ 16,311 $ 32,712 $ 3,286 $ 12,282 $ 4,210 $ 1,825 $ 70,626 Nine Months Ended Residential Real Estate Commercial Construction Commercial Home Equity Consumer Total Beginning Allowance $ 12,029 $ 32,399 $ 3,004 $ 13,410 $ 4,221 $ 1,405 $ 66,468 Charge-Offs ( 1,016 ) ( 350 ) ( 16 ) ( 5,342 ) ( 324 ) ( 426 ) ( 7,474 ) Recoveries 831 562 3 370 208 175 2,149 Provisions 4,467 101 295 3,844 105 671 9,483 Ending Allowance $ 16,311 $ 32,712 $ 3,286 $ 12,282 $ 4,210 $ 1,825 $ 70,626 Three Months Ended September 30, 2021 Residential Real Estate Commercial Construction Commercial Home Equity Consumer Finance Total Beginning Allowance $ 15,268 $ 34,461 $ 2,739 $ 12,211 $ 4,988 $ 1,700 $ 71,367 Charge-Offs ( 27 ) ( 84 ) — ( 375 ) ( 47 ) ( 85 ) ( 618 ) Recoveries 75 143 — 576 23 57 874 Provisions ( 1,567 ) ( 428 ) 882 3,016 ( 276 ) ( 33 ) 1,594 Ending Allowance $ 13,749 $ 34,092 $ 3,621 $ 15,428 $ 4,688 $ 1,639 $ 73,217 Nine Months Ended Residential Real Estate Commercial Construction Commercial Home Equity Consumer Total Beginning Allowance $ 17,534 $ 43,417 $ 2,741 $ 11,665 $ 4,739 $ 1,983 $ 82,079 Charge-Offs ( 29 ) ( 689 ) — ( 445 ) ( 50 ) ( 227 ) ( 1,440 ) Recoveries 165 332 12 1,279 217 122 2,127 Provisions ( 3,921 ) ( 8,968 ) 868 2,929 ( 218 ) ( 239 ) ( 9,549 ) Ending Allowance $ 13,749 $ 34,092 $ 3,621 $ 15,428 $ 4,688 $ 1,639 $ 73,217 Purchased Credit Deteriorated Loans Under ASU Topic 326, when loans are purchased with evidence of more than insignificant deterioration of credit, they are accounted for as PCD. PCD loans acquired in a transaction are marked to fair value and a mark on yield is recorded. In addition, an adjustment is made to the ACL for the expected loss on the acquisition date. These loans are assessed on a regular basis and subsequent adjustments to the ACL are recorded on the income statement. The outstanding balance and related allowance on these loans as of September 30, 2022 and December 31, 2021 is as follows (in thousands): As of September 30, 2022 As of December 31, 2021 Loan Balance ACL Balance Loan Balance ACL Balance (In Thousands) (In Thousands) Real Estate: Residential $ 11,890 $ 151 $ 13,396 $ 197 Commercial 1,627 27 5,878 151 Construction — — — — 13,517 178 19,274 348 Other Loans: Commercial 6,163 871 9,167 1,531 Home equity and improvement 2,581 104 3,405 154 Consumer finance 297 5 491 7 9,041 980 13,063 1,692 Total $ 22,558 $ 1,158 $ 32,337 $ 2,040 Foreclosure Proceedings Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure totale d $ 2.7 million as of September 30, 2022 , and $ 3.3 million as of December 31, 2021 . |
Mortgage Banking
Mortgage Banking | 9 Months Ended |
Sep. 30, 2022 | |
Mortgage Banking [Abstract] | |
Mortgage Banking | 9. Mortgage Banking Net revenues from the sales and servicing of mortgage loans consisted of the following: Three Months Ended Nine Months Ended 2022 2021 2022 2021 (In Thousands) Mortgage banking gain, net $ 3,363 $ 5,353 $ 7,072 $ 13,663 Mortgage loans servicing revenue (expense): Mortgage loans servicing revenue 1,861 1,861 5,602 5,666 Amortization of mortgage servicing rights ( 1,350 ) ( 1,822 ) ( 4,128 ) ( 6,119 ) Mortgage servicing rights valuation adjustments 96 783 1,624 5,655 607 822 3,098 5,202 Net revenue from sale and servicing of mortgage loans $ 3,970 $ 6,175 $ 10,170 $ 18,865 The unpaid principal balance of residential mortgage loans serviced for third parties was $ 2.94 billion at both September 30, 2022 and December 31, 2021. Activity for capitalized mortgage servicing rights and the related valuation allowance follows for the three and nine months ended September 30, 2022 and 2021: Three Months Ended Nine Months Ended 2022 2021 2022 2021 (In Thousands) Mortgage servicing assets: Balance at beginning of period $ 21,873 $ 21,682 $ 22,244 $ 21,666 Loans sold, servicing retained 1,392 2,103 3,799 6,416 Amortization ( 1,350 ) ( 1,822 ) ( 4,128 ) ( 6,119 ) Carrying value before valuation allowance at end of period 21,915 21,963 21,915 21,963 Valuation allowance: Balance at beginning of period ( 1,180 ) ( 3,641 ) ( 2,707 ) ( 8,513 ) Impairment recovery (charges) 97 783 1,624 5,655 Balance at end of period ( 1,083 ) ( 2,858 ) ( 1,083 ) ( 2,858 ) Net carrying value of MSRs at end of period $ 20,832 $ 19,105 $ 20,832 $ 19,105 Fair value of MSRs at end of period $ 27,633 $ 20,189 $ 27,633 $ 20,189 Amortization of mortgage servicing rights is computed based on payments and payoffs of the related mortgage loans serviced. Estimates of future amortization expense are not easily estimable. The Company had no accrual for secondary market buy-back activity at September 30, 2022 or December 31, 2021 based on management’s estimate of potential losses from this activity. There was no expense or credit recognized in the three and nine months ended September 30, 2022. The company recognized a credit of $ 0 and $ 43,000 in the three and nine months ended September 31, 2021. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | 10. Leases The Company’s lease agreements have maturity dates ranging from April 2022 to September 2044, some of which include options for multiple five and ten year extensions. The weighted average remaining life of the lease term for these leases was 13.44 years as of September 30, 2022 and 14.21 years as of December 31, 2021 . The weighted average discount rate for leases was 2.49 % as of September 30, 2022 and 2.57 % as of December 31, 2021. The total operating lease costs were $ 540,000 and $ 1.6 million for the three and nine months ended September 30, 2022 , respectively, and $ 560,000 and $ 1.8 million for the three and nine months ended September 30, 2021 , respectively. The right-of-use asset , included in other assets, was $ 15.2 million and $ 15.4 million at September 30, 2022 and December 31, 2021 , respectively. The lease liabilities , included in other liabilities, were $ 15.8 million and $ 16.1 million as of September 30, 2022 and December 31, 2021, respectively. Undiscounted cash flows included in lease liabilities have expected contractual payments as follows: (In Thousands) September 30, 2022 Remainder of 2022 $ 2,523 2023 2,087 2024 1,693 2025 1,470 2026 1,308 Thereafter 11,853 Total undiscounted minimum lease payments 20,934 Present value adjustment ( 5,100 ) Total lease liabilities $ 15,834 |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2022 | |
Deposits [Abstract] | |
Deposits | 11. Deposits A summary of deposit balances is as follows: September 30, December 31, (In Thousands) Non-interest-bearing checking accounts $ 1,826,511 $ 1,724,772 Interest-bearing checking and money market accounts 3,197,455 2,952,705 Savings deposits 820,650 804,451 Retail certificates of deposit less than $250,000 550,275 636,477 Retail certificates of deposit greater than $250,000 267,733 163,646 Brokered deposits 69,881 — $ 6,732,505 $ 6,282,051 |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2022 | |
Subordinated Borrowings [Abstract] | |
Borrowings | 12. Borrowings The Company's FHLB advances and junior subordinated debentures owed to unconsolidated subsidiary trusts and subordinated debentures are comprised of the following: September 30, 2022 December 31, (In Thousands) FHLB Advances: Overnight advances $ 411,000 — Single maturity fixed rate advances — — Total $ 411,000 $ — First Defiance Statutory Trust I due December 2035 $ 20,619 $ 20,619 First Defiance Statutory Trust II due June 2037 $ 15,464 15,464 Junior subordinated debentures owed to unconsolidated subsidiary trusts $ 36,083 $ 36,083 Subordinated debentures $ 48,988 $ 48,893 At September 30, 2022 , the Company had $ 411.0 million of outstanding FHLB advances with a maturity date in 2022. There were no outstanding FHLB advances at December 31, 2021. In September 2020, the Company completed the issuance of $ 50.0 million aggregate principal amount, fixed-to-floating rate subordinated notes due September 30, 2030 in a private offering exempt from the registration requirements under the Securities Act of 1933, as amended. The notes carry a fixed rate of 4.0 % for five years at which time they will convert to a floating rate based on the secured overnight borrowing rate, plus a spread of 388.5 basis points. The Company may, at its option, beginning September 30, 2025, redeem the notes, in whole or in part, from time to time, subject to certain conditions. The net proceeds from the sale were approximately $ 48.7 million, after deducting the estimated offering expenses. The Company has used, and intends to continue using, the net proceeds for general corporate purposes, which may include, without limitation, providing capital to support its growth organically or through strategic acquisitions, repaying indebtedness, in financing investments, capital expenditures, repurchasing its common shares and for investments in the Bank as regulatory capital. The subordinated debentures are included in "Total Capital", as such term is defined under current regulatory guidelines and interpretations. In March 2007, the Company sponsored an affiliated trust, First Defiance Statutory Trust II (“Trust Affiliate II”) that issued $ 15.0 million of Guaranteed Capital Trust Securities (“Trust Preferred Securities”). In connection with this transaction, the Company issued $ 15.5 million of Junior Subordinated Deferrable Interest Debentures ("Subordinated Debentures") to Trust Affiliate II. The Company formed Trust Affiliate II for the purpose of issuing Trust Preferred Securities to third-party investors and investing the proceeds from the sale of these capital securities solely in Subordinated Debentures of the Company. The Subordinated Debentures held by Trust Affiliate II are the sole assets of that trust. The Company is not considered the primary beneficiary of Trust Affiliate II (variable interest entity), therefore the trust is not consolidated in the Company’s financial statements, but rather the Subordinated Debentures are shown as a liability. Distributions on the Trust Preferred Securities issued by Trust Affiliate II are payable quarterly at a variable rate equal to the three-month LIBOR rate plus 1.5% . The coupon rate payable on the Trust Preferred Securities issued by Trust Affiliate II was 4.79 % as of September 30, 2022 , and 1.70 % as of December 31, 2021. The Trust Preferred Securities issued by Trust Affiliate II are subject to mandatory redemption, in whole or part, upon repayment of the Subordinated Debentures. The Company has entered into an agreement that fully and unconditionally guarantees the Trust Preferred Securities subject to the terms of the guarantee. The Trust Preferred Securities and Subordinated Debentures mature on September 15, 2037, but can be redeemed at the Company’s option at any time. The Company also sponsored an affiliated trust, First Defiance Statutory Trust I (“Trust Affiliate I”) that issued $ 20.0 million of Trust Preferred Securities in 2005. In connection with this transaction, the Company issued $ 20.6 million of Subordinated Debentures to Trust Affiliate I. Trust Affiliate I was formed for the purpose of issuing Trust Preferred Securities to third-party investors and investing the proceeds from the sale of these capital securities solely in Subordinated Debentures of the Company. The Junior Debentures held by Trust Affiliate I are the sole assets of the trust. The Company is not considered the primary beneficiary of Trust Affiliate I (variable interest entity), therefore the trust is not consolidated in the Company’s financial statements, but rather the subordinated debentures are shown as a liability. Distributions on the Trust Preferred Securities issued by Trust Affiliate I are payable quarterly at a variable rate equal to the three-month LIBOR rate plus 1.38% . The coupon rate payable on the Trust Preferred Securities issued by Trust Affiliate I was 3.21 % and 1.58 % on September 30, 2022 and December 31, 2021, respectively. The Trust Preferred Securities issued by Trust Affiliate I are subject to mandatory redemption, in whole or in part, upon repayment of the Subordinated Debentures. The Company has entered into an agreement that fully and unconditionally guarantees the Trust Preferred Securities subject to the terms of the guarantee. The Trust Preferred Securities and Subordinated Debentures mature on December 15, 2035, but can be redeemed at the Company’s option at any time now. The Subordinated Debentures related to the Trust Preferred Securities may be included in Tier 1 capital (with certain limitations applicable) under current regulatory guidelines and interpretations. Interest on both issues of Trust Preferred Securities may be deferred for a period of up to five years at the option of the issuer. |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Guarantees and Contingent Liabilities | 13. Commitments, Guarantees and Contingent Liabilities Loan commitments are made to accommodate the financial needs of Premier’s customers in the form of unfunded loans or unused lines of credit and result in market risk. Standby letters of credit commit the Company to make payments on behalf of customers when certain specified future events occur. They primarily are issued to facilitate customers’ trade transactions. Both arrangements have credit risk, essentially the same as that involved in extending loans to customers, and are subject to the Company’s normal credit policies. Collateral (e.g., securities, receivables, inventory and equipment) is obtained based on a credit assessment of the customer. The Company’s maximum obligation to extend credit for loan commitments (unfunded loans and unused lines of credit) and standby letters of credit outstanding as of the periods stated below were as follows (in thousands): September 30, 2022 December 31, 2021 Commitments to make loans $ 1,175,293 $ 1,175,916 Unused lines of credit 1,012,298 626,348 Standby letters of credit 16,114 10,851 Total $ 2,203,705 $ 1,813,115 Commitments to make loans are generally made for periods of 60 days or less . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax in the states of Indiana and West Virginia. The Company is no longer subject to examination by income taxing authorities for years before 2018. The Company also currently operates in the states of Ohio, Michigan and Pennsylvania which tax financial institutions based on their equity rather than their income. The components of income tax expense (benefit) are as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 (In Thousands) (In Thousands) Current: Federal $ 6,716 $ 6,600 $ 18,581 $ 22,199 State and local 162 162 517 490 Deferred ( 168 ) ( 638 ) ( 774 ) 1,708 $ 6,710 $ 6,124 $ 18,324 $ 24,397 The effective tax rates differ from federal statutory rate applied to income due to the following: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 (In Thousands) (In Thousands) Tax expense (benefit) at statutory rate ( 21 %) $ 7,330 $ 7,242 $ 20,000 $ 26,278 Increases (decreases) in taxes from: State income tax - net of federal tax benefit 129 128 409 387 Tax exempt interest income, net of TEFRA ( 180 ) ( 213 ) ( 554 ) ( 641 ) Bank owned life insurance ( 207 ) ( 199 ) ( 622 ) ( 625 ) Captive insurance ( 125 ) ( 90 ) ( 326 ) ( 282 ) Other ( 237 ) ( 744 ) ( 583 ) ( 720 ) Totals $ 6,710 $ 6,124 $ 18,324 $ 24,397 |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 15. Derivative Financial Instruments At September 30, 2022 , the Company had approximately $ 64.2 million of interest rate lock commitments and $ 311.0 million of forward sales of mortgage backed securities. These commitments are considered derivatives. The Company had $ 65.4 million of interest rate lock commitments and $ 305.0 million of forward commitments at December 31, 2021. The fair value of these mortgage banking derivatives are reflected by a derivative asset recorded in other assets in the Consolidated Statements of Financial Condition. The table below provides data about the carrying values of these derivative instrument assets: September 30, 2022 December 31, 2021 (In Thousands) Derivatives not designated as hedging instruments Mortgage Banking Derivatives $ 15,237 $ 2,336 The table below provides data about the amount of gains and losses recognized in income on derivative instruments not designated as hedging instruments. The difference in derivative carrying value at September 30, 2022 and 2021 represents a fair value adjustment that runs through mortgage banking income. Three Months Ended Nine Months Ended 2022 2021 2022 2021 (In Thousands) Derivatives not designated as hedging instruments Mortgage Banking Derivatives – Gain (Loss) $ 13,386 $ 2,122 $ 12,901 $ 2,446 Interest Rate Swaps The Company maintains an interest rate protection program for commercial loan customers. Under this program, the Company provides a customer with a fixed rate loan while creating a variable rate asset for the Company by the customer entering into an interest rate swap with terms that match the loan. The Company offsets its risk exposure by entering into an offsetting interest rate swap with an unaffiliated institution. The Company had interest rate swaps associated with commercial loans with a notional value of $ 67.9 million and fair value of $ 4.7 million in other assets and $ 4.7 million in other liabilities at September 30, 2022. As of December 31, 2021 , the Company had interest rate swaps associated with commercial loans with a notional value of $ 69.4 million and fair value of $ 1.3 million in other assets and $ 1.3 million in other liabilities. For the three and nine months ended September 30, 2022 , ($ 54,000 ) and ($ 53,000 ) flowed through noninterest income, respectively. For the three and nine months ended September 30, 2021 , ($ 7,000 ) and $ 136,000 flowed through noninterest income, respectively. Interest Rate Swap Designated as Cash Flow Hedge In May 2021, the Company entered into derivative instruments designated as a cash flow hedge. For a derivative instrument that is designated and qualifies as a cash flow hedge, the change in fair value of the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. An interest rate swap with notional amount totaling $ 250.0 million as of September 30, 2022 was designated as a cash flow hedge to hedge the risk of variability in cash flows (future interest receipts) attributable to changes in the contractually specified LIBOR benchmark interest rate on the Company’s floating rate loan pool. The gross aggregate fair value of the swap of $ 41.5 million is recorded in other liabilities in the unaudited Consolidated Balance Sheets at September 30, 2022, with changes in fair value recorded net of tax in other comprehensive income (loss). As of December 31, 2021 , the gross aggregate fair value of the swap of $ 854,000 was recorded in other assets in the Consolidated Balance Sheets. A summary of the interest-rate swap designated as a cash flow hedge is presented below (dollars in thousands): September 30, 2022 December 31, 2021 Notional amount $ 250,000 $ 250,000 Weighted average fixed receive rates 1.437 % 1.437 % Weighted average variable 1-month LIBOR pay rates 3.143 % 0.089 % Weighted average remaining maturity (in years) 8.4 9.3 Fair value $ ( 41,458 ) $ 854 |
Other Comprehensive (Loss) Inco
Other Comprehensive (Loss) Income | 9 Months Ended |
Sep. 30, 2022 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Other Comprehensive (Loss) Income | 16. Other Comprehensive (Loss) Income The before and after tax amounts allocated to each component of other comprehensive income (loss) are presented in the table below. Reclassification adjustments related to securities available for sale are included in gains on sale of securities in the accompanying consolidated condensed statements of income. Before Tax Tax (Expense) Net of Tax (In Thousands) Three Months Ended September 30, 2022 Securities available for sale and transferred securities: Change in net unrealized gain/loss during the period $ ( 55,350 ) $ 11,624 $ ( 43,726 ) Reclassification adjustment for net losses included in net income — — — Cash flow hedge derivatives Change in net unrealized gain/loss during the period ( 13,343 ) 2,802 ( 10,541 ) Reclassification adjustment for net gains included in net income ( 266 ) 56 ( 210 ) Total other comprehensive loss $ ( 68,959 ) $ 14,482 $ ( 54,477 ) Nine Months Ended September 30, 2022 Securities available for sale and transferred securities: Change in net unrealized gain/loss during the period $ ( 182,755 ) $ 38,378 $ ( 144,377 ) Reclassification adjustment for net gains included in net income — — — Cash flow hedge derivatives Change in net unrealized gain/loss during the period ( 43,294 ) 9,092 ( 34,202 ) Reclassification adjustment for net gains included in net income 982 ( 206 ) 776 Total other comprehensive loss $ ( 225,067 ) $ 47,264 $ ( 177,803 ) Before Tax Tax (Expense) Net of Tax (In Thousands) Three Months Ended September 30, 2021 Securities available for sale and transferred securities: Change in net unrealized gain/loss during the period $ ( 9,042 ) $ 1,898 $ ( 7,144 ) Reclassification adjustment for net gains included in net income ( 233 ) 49 ( 184 ) Cash flow hedge derivatives Change in net unrealized gain/loss during the period ( 1,692 ) 356 ( 1,336 ) Reclassification adjustment for net gains included in net income ( 860 ) 180 ( 680 ) Total other comprehensive loss $ ( 11,827 ) $ 2,483 $ ( 9,344 ) Nine Months Ended September 30, 2021 Securities available for sale and transferred securities: Change in net unrealized gain/loss during the period $ ( 16,169 ) $ 3,395 $ ( 12,774 ) Reclassification adjustment for net gains included in net income ( 2,218 ) 466 ( 1,752 ) Cash flow hedge derivatives Change in net unrealized gain/loss during the period 2,742 ( 576 ) 2,166 Reclassification adjustment for net gains included in net income ( 1,310 ) 275 ( 1,035 ) Total other comprehensive loss $ ( 16,955 ) $ 3,560 $ ( 13,395 ) Activity in accumulated other comprehensive income (loss), net of tax, was as follows: Securities Post- Cash Flow Hedge Derivatives Accumulated (In Thousands) Balance January 1, 2022 $ ( 4,023 ) $ ( 79 ) $ 674 $ ( 3,428 ) Other comprehensive income/(loss) before reclassifications ( 144,377 ) — ( 34,202 ) ( 178,579 ) Amounts reclassified from accumulated other comprehensive income — — 776 776 Net other comprehensive income/(loss) during period ( 144,377 ) — ( 33,426 ) ( 177,803 ) Balance September 30, 2022 $ ( 148,400 ) $ ( 79 ) $ ( 32,752 ) $ ( 181,231 ) Balance January 1, 2021 $ 15,083 $ ( 79 ) $ — $ 15,004 Other comprehensive income (loss) before reclassifications ( 12,774 ) — 2,166 ( 10,608 ) Amounts reclassified from accumulated other comprehensive income ( 1,752 ) — ( 1,035 ) ( 2,787 ) Net other comprehensive income/(loss) during period ( 14,526 ) — 1,131 ( 13,395 ) Balance September 30, 2021 $ 557 $ ( 79 ) $ 1,131 $ 1,609 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Accounting Standards Update | Accounting Standards Update ASU No. 2020-04: Reference Rate Reform – Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848): On March 12, 2020, the FASB issued Accounting Standards Update (ASU) 2020-04, "Reference Rate Reform (“ASC 848”): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." ASC 848 contains optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or other reference rates expected to be discontinued. The Company has formed a cross-functional project team to lead the transition from LIBOR to the adoption of alternative reference rates which include Secured Overnight Financing Rate. The Company identified loans that renewed prior to 2021 and began incorporating LIBOR fallback language into existing LIBOR loans. Additionally, management is utilizing the timeline guidance published by the Alternative Reference Rates Committee to develop and achieve internal milestones during this transitional period. The Company has also adhered to the International Swaps and Derivatives Association 2020 IBOR Fallbacks Protocol that was released on October 23, 2020, and has discontinued the issuance of new LIBOR-based loans since December 31, 2021, according to regulatory guidelines. Legacy LIBOR-based loans will be transitioned to an alternative reference rate on or before June 30, 2023. The updates are elective, are only available from March 12, 2020 until December 31, 2022, and their application did not have a material effect on the Company. |
Accounting Standards Not Yet Adopted | Accounting Standards Not Yet Adopted ASU No. 2022-02, Troubled Debt Restructurings and Vintage Disclosures: On March 30, 2022, the FASB issued ASU 2022-02, "Troubled Debt Restructurings and Vintage Disclosures" which will eliminate troubled debt restructuring ("TDR") accounting for entities that have adopted ASU 2016-13, the current expected credit loss ("CECL") model and will add new vintage disclosures for gross write-offs. The elimination of TDR accounting can be adopted either prospectively for loan modifications after adoption or on a modified retrospective basis that would result in a cumulative effect adjustment to retained earnings in the period of adoption. ASU 2022-02 is effective for the Company for fiscal years beginning after December 15, 2022. The Company can elect to early adopt a part or all of such update. The Company is currently assessing the impacts of adopting the guidance. |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets measured at fair value on a recurring basis | The following table summarizes the financial assets measured at fair value on a recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Assets and Liabilities Measured on a Recurring Basis September 30, 2022 Level 1 Level 2 Level 3 Total (In Thousands) Assets: Available for sale securities: Obligations of U.S. federal government corporations and $ 47,908 $ 96,117 $ — $ 144,025 Mortgage-backed securities — 169,108 — 169,108 Collateralized mortgage obligations — 257,055 — 257,055 Asset-backed securities — 198,548 — 198,548 Corporate bonds — 67,422 — 67,422 Obligations of state and political subdivisions — 227,555 — 227,555 Equity securities 15,336 — — 15,336 Loans held for sale, at fair value — 23,689 105,453 129,142 Interest rate swaps — 4,739 — 4,739 Mortgage banking derivatives — 15,237 — 15,237 Liabilities: Interest rate swaps — 4,739 — 4,739 Cash flow hedge derivative — 41,458 — 41,458 December 31, 2021 Level 1 Level 2 Level 3 Total (In Thousands) Assets: Available for sale securities: Obligations of U.S. federal government corporations and $ — $ 174,710 $ — $ 174,710 Mortgage-backed securities — 206,751 — 206,751 Collateralized mortgage obligations — 260,168 — 260,168 Asset-backed securities — 220,536 — 220,536 Corporate bonds — 70,893 — 70,893 Obligations of state and political subdivisions — 273,202 — 273,202 Equity securities 14,097 — — 14,097 Loans held for sale, at fair value — 28,780 134,167 162,947 Interest rate swaps — 1,287 — 1,287 Cash flow hedge derivative — 854 — 854 Mortgage banking derivatives — 2,336 — 2,336 Liabilities: Interest rate swaps — 1,292 — 1,292 |
Summary of Reconciliation of all Assets Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs (Level 3) | The table below presents a reconciliation of assets that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2022 and 2021 . There were no securities that were measured at Level 3 for the three and nine months ended September 30, 2022 and 2021. Construction loans held for sale Three Months Ended Nine Months Ended 2022 2021 2022 2021 Balance of recurring Level 3 assets at beginning of period $ 117,015 $ 148,659 $ 134,167 $ 123,029 Total gains (losses) for the period Included in change in fair value of loans held for sale ( 7,627 ) ( 3 ) ( 27,417 ) ( 3,757 ) Originations 31,245 32,055 95,311 96,983 Sales ( 35,180 ) ( 41,141 ) ( 96,608 ) ( 76,685 ) Balance of recurring Level 3 assets at end of period $ 105,453 $ 139,570 $ 105,453 $ 139,570 |
Schedule of Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis | For Level 3 assets and liabilities measured at fair value on a recurring basis, the significant unobservable inputs used in the fair value measurements were as follows: September 30, 2022 Fair Value Valuation Technique Unobservable Inputs Range of (Dollars in Thousands) Construction loans held for sale $ 105,453 Quoted market price Time discount using the 60 day forward contract 0.00 % - 0.30 % December 31, 2021 Fair Value Valuation Technique Unobservable Inputs Range of (Dollars in Thousands) Construction loans held for sale $ 134,167 Quoted market price Time discount using the 60 day forward contract 0.00 % - 1.86 % For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of September 30, 2022, the significant unobservable inputs used in the fair value measurements were as follows: Fair Valuation Unobservable Range of Weighted (Dollars in Thousands) Individually analyzed Loans- $ 7,386 Appraisals which utilize sales comparison, net income and cost approach Discounts for collection issues and changes in market conditions 10 - 70 % 22.03 % Individually analyzed Loans- $ 3,858 Equitable Recoupment claim estimate Discounts for collection issues 0 % 0 % For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2021, the significant unobservable inputs used in the fair value measurements were as follows: Fair Valuation Unobservable Range of Weighted (Dollars in Thousands) Individually analyzed Loans- $ 5,821 Appraisals which utilize sales comparison, net income and cost approach Discounts for collection issues and changes in market conditions 20 - 50 % 35.18 % Individually analyzed Loans- $ 5,492 Equitable Recoupment claim estimate Discounts for collection issues 25 % 25.00 % |
Schedule of financial assets measured at fair value on a non-recurring basis | The following table summarizes the financial assets measured at fair value on a non-recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Assets and Liabilities Measured on a Non-Recurring Basis September 30, 2022 Level 1 Level 2 Level 3 Total Fair (In Thousands) Individually analyzed loans Commercial real estate $ — $ — $ 6,213 $ 6,213 Commercial — — 5,031 5,031 Total individually analyzed loans $ — $ — $ 11,244 $ 11,244 Mortgage servicing rights $ — $ 20,832 $ — $ 20,832 December 31, 2021 Level 1 Level 2 Level 3 Total Fair (In Thousands) Individually analyzed loans Commercial real estate $ — $ — $ 2,749 $ 2,749 Commercial — — 8,564 8,564 Total individually analyzed loans $ — $ — $ 11,313 $ 11,313 Mortgage servicing rights $ — $ 19,538 $ — $ 19,538 For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of September 30, 2022, the significant unobservable inputs used in the fair value measurements were as follows: Fair Valuation Unobservable Range of Weighted (Dollars in Thousands) Individually analyzed Loans- $ 7,386 Appraisals which utilize sales comparison, net income and cost approach Discounts for collection issues and changes in market conditions 10 - 70 % 22.03 % Individually analyzed Loans- $ 3,858 Equitable Recoupment claim estimate Discounts for collection issues 0 % 0 % For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2021, the significant unobservable inputs used in the fair value measurements were as follows: Fair Valuation Unobservable Range of Weighted (Dollars in Thousands) Individually analyzed Loans- $ 5,821 Appraisals which utilize sales comparison, net income and cost approach Discounts for collection issues and changes in market conditions 20 - 50 % 35.18 % Individually analyzed Loans- $ 5,492 Equitable Recoupment claim estimate Discounts for collection issues 25 % 25.00 % |
Schedule of FHLB advances with maturities | FHLB advances with maturities greater than 90 days are valued based on a DCF analysis, using interest rates currently being quoted for similar characteristics and maturities resulting in a Level 2 classification. The cost or value of any call or put options is based on the estimated cost to settle the option at September 30, 2022. The carrying value and estimated fair values of financial instruments at September 30, 2022 and December 31, 2021, were as follows: Fair Value Measurements at September 30, 2022 (In Thousands) Carrying Total Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 104,992 $ 104,992 $ 104,992 $ — $ — Securities available for sale 1,063,713 1,063,713 47,908 1,015,805 — Equity securities 15,336 15,336 15,336 — — Federal Home Loan Bank Stock 28,262 N/A N/A N/A N/A Loans receivable, net 6,137,082 5,940,156 — — 5,940,156 Loans held for sale, carried at fair value 129,142 129,142 — 23,689 105,453 Financial Liabilities: Deposits $ 6,732,505 $ 6,706,619 $ 5,844,616 $ 862,003 $ — Advances from Federal Home Loan Bank 411,000 410,998 — 410,998 — Subordinated debentures 85,071 77,175 — 77,175 — Fair Value Measurements at December 31, 2021 (In Thousands) Carrying Total Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 161,566 $ 161,566 $ 161,566 $ — $ — Securities available for sale 1,206,260 1,206,260 — 1,206,260 — Equity securities 14,097 14,097 14,097 — — Federal Home Loan Bank Stock 11,585 N/A N/A N/A N/A Loans receivable, net 5,229,700 5,265,689 — — 5,265,689 Loans held for sale, carried at fair value 162,947 162,947 — 28,780 134,167 Financial Liabilities: Deposits $ 6,282,051 $ 6,280,336 $ 5,481,928 $ 798,408 $ — Subordinated debentures 84,976 85,417 — 85,417 — |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of restricted stock units and stock grants | ollowing table sets forth Premier's performance and restricted stock activity during the nine months ended September 30, 2022: Performance Stock Units Restricted Stock Units Restricted Stock Awards Unvested Shares Shares Weighted- Shares Weighted- Shares Weighted- Unvested at January 1, 2022 161,674 $ 28.36 51,773 $ 28.44 58,260 $ 29.71 Granted 86,190 30.67 — — 52,713 29.24 Vested — — ( 13,637 ) 29.00 ( 35,159 ) 27.97 Forfeited ( 3,030 ) 31.12 ( 6,340 ) 27.25 ( 5,101 ) 30.50 Unvested at September 30, 2022 244,834 $ 29.14 31,796 $ 28.44 70,713 $ 30.17 |
Schedule of stock option activity under the plans | Following is stock option activity under the plans during the nine months ended September 30, 2022: Options Weighted Weighted Aggregate Options outstanding, January 1, 2022 35,661 $ 21.72 Forfeited or cancelled ( 3,000 ) 17.68 Exercised ( 3,000 ) 17.68 Granted — — Options outstanding, September 30, 2022 29,661 $ 22.54 Exercisable at September 30, 2022 29,661 $ 22.54 4.34 $ 100 |
Schedule of proceeds, related tax benefits realized from options exercised and intrinsic value of options exercised | Proceeds, related tax benefits realized from options exercised and intrinsic value of options exercised were as follows (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Proceeds of options exercised $ 53 $ — $ 53 $ 8 Related tax benefit recognized 6 — 6 — Intrinsic value of options exercised 29 — 29 11 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings per common share | The following table sets forth the computation of basic and diluted earnings per common share: Three Months Ended Nine Months Ended 2022 2021 2022 2021 (In Thousands, except per share data) Basic Earnings Per Share: Net income available to common shareholders $ 28,195 $ 28,360 $ 76,912 $ 100,741 Less: income allocated to participating securities 22 27 80 98 Net income allocated to common shareholders 28,173 28,333 76,832 100,643 Weighted average common shares outstanding including 35,610 37,135 35,746 37,262 Less: Participating securities 28 35 37 36 Average common shares 35,582 37,100 35,709 37,226 Basic earnings per common share $ 0.79 $ 0.76 $ 2.15 $ 2.70 Diluted Earnings Per Share: Net income allocated to common shareholders $ 28,173 $ 28,333 $ 76,832 $ 100,643 Weighted average common shares outstanding for basic earnings 35,582 37,100 35,709 37,226 Add: Dilutive effects of stock options and restricted stock units 122 85 109 85 Average shares and dilutive potential common shares 35,704 37,185 35,818 37,311 Diluted earnings per common share $ 0.79 $ 0.76 $ 2.15 $ 2.70 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Marketable Securities [Abstract] | |
Summary of available-for-sale securities | The following is a summary of available-for-sale securities: Amortized Gross Gross Fair Value (In Thousands) At September 30, 2022 Available-for-Sale Securities: Obligations of U.S. government corporations and agencies $ 173,907 $ — $ ( 29,882 ) $ 144,025 Mortgage-backed securities 204,655 ( 35,547 ) 169,108 Collateralized mortgage obligations 306,623 — ( 49,568 ) 257,055 Asset-backed securities 206,505 557 ( 8,514 ) 198,548 Corporate bonds 73,659 ( 6,237 ) 67,422 Obligations of state and political subdivisions 286,213 32 ( 58,690 ) 227,555 Total Available-for-Sale $ 1,251,562 $ 589 $ ( 188,438 ) $ 1,063,713 Amortized Gross Gross Fair Value (In Thousands) At December 31, 2021 Available-for-sale Obligations of U.S. government corporations and agencies $ 174,644 $ 984 $ ( 918 ) $ 174,710 Mortgage-backed securities 208,281 851 ( 2,381 ) 206,751 Collateralized mortgage obligations 264,541 363 ( 4,736 ) 260,168 Asset-backed securities 221,545 610 ( 1,619 ) 220,536 Corporate bonds 70,008 1,160 ( 275 ) 70,893 Obligations of state and political subdivisions 272,334 5,898 ( 5,030 ) 273,202 Total Available-for-Sale $ 1,211,353 $ 9,866 $ ( 14,959 ) $ 1,206,260 |
Schedule of investments classified by contractual maturity date | The amortized cost and fair value of the investment securities portfolio at September 30, 2022, are shown below by contractual maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. For purposes of the maturity table, MBS, CMOs and ABS, which are not due at a single maturity date, have not been allocated over the maturity groupings. These securities may mature earlier than their weighted-average contractual maturities because of principal prepayments. Available-for-Sale Amortized Fair Value (In Thousands) Due in one year or less $ 3,238 $ 3,239 Due after one year through five years 49,077 45,193 Due after five years through ten years 233,374 202,166 Due after ten years 248,090 188,403 MBS/CMO/ABS 717,783 624,712 $ 1,251,562 $ 1,063,713 |
Schedule of securities that were in an unrealized loss position | The following tables summarize Premier’s securities that were in an unrealized loss position at September 30, 2022 and December 31, 2021: Duration of Unrealized Loss Position Less than 12 Months 12 Months or Longer Total Fair Value Gross Fair Value Gross Fair Value Unrealized (In Thousands) At September 30, 2022 Available-for-sale securities: Obligations of U.S. government corporations and agencies $ 99,589 $ ( 19,180 ) $ 44,436 $ ( 10,702 ) $ 144,025 $ ( 29,882 ) Mortgage-backed securities 48,282 ( 5,761 ) 120,826 ( 29,786 ) 169,108 ( 35,547 ) Collateralized mortgage obligations 111,746 ( 14,355 ) 145,309 ( 35,213 ) 257,055 ( 49,568 ) Asset-backed securities 82,184 ( 1,816 ) 81,491 ( 6,698 ) 163,675 ( 8,514 ) Corporate bonds 57,170 ( 4,946 ) 10,252 ( 1,291 ) 67,422 ( 6,237 ) Obligations of state and political subdivisions 128,802 ( 19,309 ) 89,875 ( 39,381 ) 218,677 ( 58,690 ) Total available-for-sale $ 527,773 $ ( 65,367 ) $ 492,189 $ ( 123,071 ) $ 1,019,962 $ ( 188,438 ) Duration of Unrealized Loss Position Less than 12 Months 12 Months or Longer Total Fair Value Gross Fair Value Gross Fair Value Unrealized (In Thousands) At December 31, 2021 Available-for-sale securities: Obligations of U.S. government corporations and agencies $ 73,810 $ ( 918 ) $ — $ — $ 73,810 $ ( 918 ) Mortgage-backed securities-residential 167,379 ( 2,048 ) 13,689 ( 333 ) 181,068 ( 2,381 ) Collateralized mortgage obligations 222,134 ( 4,736 ) — — 222,134 ( 4,736 ) Asset-backed securities 140,226 ( 1,589 ) 2,705 ( 30 ) 142,931 ( 1,619 ) Corporate bonds 24,173 ( 270 ) 504 ( 5 ) 24,677 ( 275 ) Obligations of state and political subdivisions 99,199 ( 3,355 ) 34,548 ( 1,675 ) 133,747 ( 5,030 ) Total available-for-sale $ 726,921 $ ( 12,916 ) $ 51,446 $ ( 2,043 ) $ 778,367 $ ( 14,959 ) |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Loans and Leases Receivable, Net Amount [Abstract] | |
Schedule of Loans Receivable | Loan segments have been identified by evaluating the portfolio based on collateral and credit risk characteristics. Loans receivable consist of the following: September 30, December 31, (In Thousands) Real Estate: Residential $ 1,478,360 $ 1,167,466 Commercial 2,674,078 2,450,349 Construction 1,242,045 862,815 5,394,483 4,480,630 Other Loans: Commercial 1,042,604 895,638 Home equity and improvement 272,367 264,354 Consumer finance 212,790 126,417 1,527,761 1,286,409 Loans before deferred loan origination fees and costs 6,922,244 5,767,039 Deduct: Undisbursed construction loan funds ( 724,797 ) ( 477,890 ) Net deferred loan origination fees and costs 10,261 7,019 Allowance for credit losses ( 70,626 ) ( 66,468 ) Total loans $ 6,137,082 $ 5,229,700 |
Summary of Amortized Cost Basis of Collateral-Dependent Loans by Class of Loans and Collateral Type | The following table presents the amortized cost basis of collateral-dependent loans by class of loans and collateral type as of September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 Real Estate Equipment and Machinery Inventory and Receivables Vehicles Total Real Estate: Residential $ 54 $ — $ — $ — $ 54 Commercial 12,394 — 2,716 — 15,110 Construction — — — — — Other Loans: Commercial 2,607 561 3,858 — 7,026 Home equity and improvement — — — — — Consumer finance — — — — — Total $ 15,055 $ 561 $ 6,574 $ — $ 22,190 December 31, 2021 Real Estate Equipment and Machinery Inventory and Receivables Vehicles Total Real Estate: Residential $ 226 $ — $ — $ — $ 226 Commercial 18,399 — — — 18,399 Construction — — — — — Other Loans: Commercial 1,574 160 14,023 25 15,782 Home equity and improvement — — — — — Consumer finance — — — — — Total $ 20,199 $ 160 $ 14,023 $ 25 $ 34,407 |
Schedule of current balance of the aggregate amounts of non-performing assets, comprised of non-performing loans and real estate owned | The following table presents the current balance of the aggregate amounts of non-performing assets, comprised of non-performing loans and real estate owned as of the dates indicated: September 30, December 31, (In Thousands) Non-accrual loans with reserve $ 19,308 $ 35,480 Non-accrual loans without reserve 13,829 12,534 Loans 90 days plus past due and still accruing — — Total non-performing loans 33,137 48,014 Real estate and other assets held for sale 416 171 Total non-performing assets $ 33,553 $ 48,185 Troubled debt restructuring, still accruing $ 6,909 $ 7,768 |
Schedule of Aging of the Amortized Cost/ Recorded Investment in Past Due and Non- Accrual Loans | The following table presents the aging of the amortized cost in past due and non-accrual loans as of September 30, 2022, by class of loans (in thousands): Current 30 - 59 days 60 - 89 days 90 + days Total Total Real Estate: Residential $ 1,460,105 $ 547 $ 5,816 $ 4,954 $ 11,317 $ 6,458 Commercial 2,663,003 809 177 11,570 12,556 13,709 Construction 517,248 — — — — — Other Loans: Commercial 1,031,322 333 50 4,685 5,068 4,895 Home equity and improvement 266,002 2,586 207 992 3,785 1,423 Consumer finance 209,642 2,540 803 1,759 5,102 1,881 PCD 18,332 358 220 3,648 4,226 4,771 Total Loans $ 6,165,654 $ 7,173 $ 7,273 $ 27,608 $ 42,054 $ 33,137 The following table presents the aging of the recorded investment in past due and non-accrual loans as of December 31, 2021, by class of loans (in thousands): Current 30 - 59 days 60 - 89 days 90 + days Total Total Real Estate: Residential $ 1,144,533 $ 234 $ 5,340 $ 7,487 $ 13,061 $ 9,034 Commercial 2,439,552 96 847 7,168 8,111 14,621 Construction 383,136 43 1,746 — 1,789 — Other Loans: Commercial 884,025 42 35 867 944 11,531 Home equity and improvement 257,055 1,851 408 1,634 3,893 2,051 Consumer finance 124,073 1,112 819 1,728 3,659 1,873 PCD 25,111 225 1,005 5,996 7,226 8,904 Total Loans $ 5,257,485 $ 3,603 $ 10,200 $ 24,880 $ 38,683 $ 48,014 |
Schedule of Present Loans by Class Modified as TDRs that Occurred | The following tables present loans by class modified as TDRs that occurred during the three and nine months ended September 30, 2022: Loans Modified as a TDR for the Three Loans Modified as a TDR for the Nine Troubled Debt Restructurings Number of Recorded Investment Number of Recorded Investment Real Estate: Residential 3 $ 1,084 11 $ 2,097 Commercial 1 115 4 5,094 Construction — — — — Other Loans: Commercial 1 17 3 4,281 Home equity and improvement 3 198 6 277 Consumer finance 3 43 8 87 Total 11 $ 1,457 32 $ 11,836 The loans described above increased the ACL by $ 28,000 and $ 428,000 in the three and nine months ended September 30, 2022, respectively. Loans Modified as a TDR for the Three Loans Modified as a TDR for the Nine Troubled Debt Restructurings Number of Recorded Investment Number of Recorded Investment Real Estate: Residential 1 $ 263 4 $ 512 Commercial — — — — Construction — — — — Other Loans: Commercial 1 275 6 1,853 Home equity and improvement — — — — Consumer finance — — — — Total 2 $ 538 10 $ 2,365 The following table presents loans by class modified as TDRs for which there was a payment default within twelve months following the modification during the three and nine months ended September 30, 2022: Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 (Dollars in Thousands) (Dollars in Thousands) Troubled Debt Restructurings That Subsequently Defaulted Number of Recorded Investment Number of Recorded Investment Real Estate: Residential 2 $ 219 3 $ 282 Commercial — — — — Construction — — — — Other Loans: Commercial — — — — Home equity and improvement — — — — Consumer finance 2 40 2 40 Total 4 $ 259 5 $ 322 |
Schedule of Risk Category of Loans by Class of Loans | As of September 30, 2022, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands): Class Unclassified Special Substandard Doubtful Total classified Total Real Estate: Residential $ 1,463,034 $ 1,267 $ 7,121 $ — $ 7,121 $ 1,471,422 Commercial 2,588,092 65,233 22,234 — 22,234 2,675,559 Construction 515,948 1,300 — — — 517,248 Other Loans: Commercial 1,009,333 20,106 6,951 — 6,951 1,036,390 Home equity and improvement 268,385 — 1,402 — 1,402 269,787 Consumer finance 212,853 — 1,891 — 1,891 214,744 PCD 17,044 93 5,421 — 5,421 22,558 Total Loans $ 6,074,689 $ 87,999 $ 45,020 $ — $ 45,020 $ 6,207,708 As of December 31, 2021, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands): Class Unclassified Special Substandard Doubtful Total classified Total Real Estate: Residential $ 1,146,212 $ 1,316 $ 10,066 $ — $ 10,066 $ 1,157,594 Commercial 2,324,846 93,676 29,141 — 29,141 2,447,663 Construction 365,403 19,522 — — — 384,925 Other Loans: Commercial 856,402 14,815 13,752 — 13,752 884,969 Home equity and improvement 258,914 — 2,034 — 2,034 260,948 Consumer finance 125,879 — 1,853 — 1,853 127,732 PCD 19,547 101 12,689 — 12,689 32,337 Total Loans $ 5,097,203 $ 129,430 $ 69,535 $ — $ 69,535 $ 5,296,168 |
Summary of Amortized Cost Basis of Loans by Credit Quality Indicator and Class of Loans | The tables below present the amortized cost basis of loans by credit quality indicator and class of loans as of September 30, 2022 and December 31, 2021 (in thousands): Term of loans by origination 2022 2021 2020 2019 2018 Prior Revolving Loans Total As of September 30, 2022 Real Estate Residential: Risk Rating Pass $ 194,669 $ 472,696 $ 338,397 $ 95,857 $ 53,398 $ 306,452 $ 1,565 $ 1,463,034 Special Mention — 183 182 — — 144 758 1,267 Substandard — 1,397 741 856 591 3,536 — 7,121 Doubtful — — — — — — — — Total $ 194,669 $ 474,276 $ 339,320 $ 96,713 $ 53,989 $ 310,132 $ 2,323 $ 1,471,422 Commercial: Risk Rating Pass $ 468,444 $ 504,860 $ 521,889 $ 321,775 $ 198,095 $ 560,364 $ 12,665 $ 2,588,092 Special Mention 2,345 2,284 — 268 25,660 34,210 466 65,233 Substandard 116 2,121 549 4,612 4,490 10,120 226 22,234 Doubtful — — — — — — — — Total $ 470,905 $ 509,265 $ 522,438 $ 326,655 $ 228,245 $ 604,694 $ 13,357 $ 2,675,559 Construction: Risk Rating Pass $ 213,186 $ 220,569 $ 52,156 $ 30,037 $ - $ — $ - $ 515,948 Special Mention — 1,300 — — — — — 1,300 Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 213,186 $ 221,869 $ 52,156 $ 30,037 $ - $ — $ - $ 517,248 Other Loans Commercial: Risk Rating Pass $ 224,003 $ 209,901 $ 97,286 $ 58,663 $ 28,214 $ 27,355 $ 363,911 $ 1,009,333 Special Mention 2,527 3,733 2,099 1,694 1,291 5,572 3,190 20,106 Substandard 40 120 3,898 5 190 200 2,498 6,951 Doubtful — — — — — — — — Total $ 226,570 $ 213,754 $ 103,283 $ 60,362 $ 29,695 $ 33,127 $ 369,599 $ 1,036,390 Home equity and Improvement: Risk Rating Pass $ 21,616 $ 21,726 $ 5,606 $ 3,744 $ 1,948 $ 31,676 $ 182,069 $ 268,385 Special Mention — — — — — — — — Substandard — 14 — 28 32 521 807 1,402 Doubtful — — — — — — — — Total $ 21,616 $ 21,740 $ 5,606 $ 3,772 $ 1,980 $ 32,197 $ 182,876 $ 269,787 Consumer Finance: Risk Rating Pass $ 123,887 $ 36,307 $ 19,016 $ 15,473 $ 5,140 $ 3,279 $ 9,751 $ 212,853 Special Mention — — — — — — — — Substandard 61 554 715 393 97 70 1 1,891 Doubtful — — — — — — — — Total $ 123,948 $ 36,861 $ 19,731 $ 15,866 $ 5,237 $ 3,349 $ 9,752 $ 214,744 PCD: Risk Rating Pass $ — $ — $ — $ 137 $ 376 $ 13,343 $ 3,188 $ 17,044 Special Mention — — — — — 93 — 93 Substandard — — — 3 27 4,393 998 5,421 Doubtful — — — — — — — — Total $ — $ — $ — $ 140 $ 403 $ 17,829 $ 4,186 $ 22,558 Term of loans by origination 2021 2020 2019 2018 2017 Prior Revolving Loans Total As of December 31, 2021 Real Estate Residential: Risk Rating Pass $ 219,006 $ 373,439 $ 112,781 $ 65,544 $ 71,794 $ 301,735 $ 1,913 $ 1,146,212 Special Mention — 190 — — 59 109 958 1,316 Substandard 465 780 1,198 1,006 2,095 4,522 — 10,066 Doubtful — — — — — — — — Total $ 219,471 $ 374,409 $ 113,979 $ 66,550 $ 73,948 $ 306,366 $ 2,871 $ 1,157,594 Commercial: Risk Rating Pass $ 514,333 $ 493,575 $ 388,117 $ 230,734 $ 237,712 $ 451,113 $ 9,262 $ 2,324,846 Special Mention 294 5,349 5,533 11,055 49,993 20,662 790 93,676 Substandard 172 570 4,920 5,525 62 17,665 227 29,141 Doubtful — — — — — — — — Total $ 514,799 $ 499,494 $ 398,570 $ 247,314 $ 287,767 $ 489,440 $ 10,279 $ 2,447,663 Construction: Risk Rating Pass $ 198,221 $ 100,606 $ 55,707 $ 10,039 $ 685 $ 145 $ — $ 365,403 Special Mention — 12,500 — 5,996 1,026 — — 19,522 Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 198,221 $ 113,106 $ 55,707 $ 16,035 $ 1,711 $ 145 $ — $ 384,925 Other Loans Commercial: Risk Rating Pass $ 293,644 $ 132,703 $ 84,668 $ 47,421 $ 24,269 $ 17,038 $ 256,659 $ 856,402 Special Mention — 2,180 4,094 272 1,264 4,663 2,342 14,815 Substandard 136 11,550 23 288 388 131 1,236 13,752 Doubtful — — — — — — — — Total $ 293,780 $ 146,433 $ 88,785 $ 47,981 $ 25,921 $ 21,832 $ 260,237 $ 884,969 Home equity and Improvement: Risk Rating Pass $ 24,707 $ 6,870 $ 4,867 $ 2,879 $ 5,534 $ 31,317 $ 182,740 $ 258,914 Special Mention — — — — — — — — Substandard 15 — 28 48 27 690 1,226 2,034 Doubtful — — — — — — — — Total $ 24,722 $ 6,870 $ 4,895 $ 2,927 $ 5,561 $ 32,007 $ 183,966 $ 260,948 Consumer Finance: Risk Rating Pass $ 50,202 $ 25,866 $ 23,000 $ 9,643 $ 4,313 $ 2,769 $ 10,086 $ 125,879 Special Mention — — — — — — — — Substandard 196 707 619 129 67 131 4 1,853 Doubtful — — — — — — — — Total $ 50,398 $ 26,573 $ 23,619 $ 9,772 $ 4,380 $ 2,900 $ 10,090 $ 127,732 PCD: Risk Rating Pass $ — $ — $ 170 $ 1,753 $ 1,860 $ 12,496 $ 3,268 $ 19,547 Special Mention — — — — — 101 — 101 Substandard — — 67 28 3,242 6,490 2,862 12,689 Doubtful — — — — — — — — Total $ — $ — $ 237 $ 1,781 $ 5,102 $ 19,087 $ 6,130 $ 32,337 |
Summary of Credit Loss Estimation | The remaining life method was selected for the consumer direct loan segment since the pool contains loans with many different structures and payment streams and collateral. The weighted average remaining life uses an average annual charge-off rate applied to the contractual term, further adjusted for estimated prepayments to determine the unadjusted historical charge-off rate for the remaining balance of assets. Portfolio Segments Loan Pool Methodology Loss Drivers Residential real estate 1-4 Family nonowner occupied DCF National unemployment 1-4 Family owner occupied DCF National unemployment Commercial real estate Commercial real estate nonowner occupied DCF National unemployment Commercial real estate owner occupied DCF National unemployment Multi Family DCF National unemployment Agriculture Land DCF National unemployment Other commercial real estate DCF National unemployment Construction secured by real estate Construction Other PD/LGD Call report loss history Construction Residential PD/LGD Call report loss history Commercial Commercial working capital PD/LGD Call report loss history Agriculture production PD/LGD Call report loss history Other commercial PD/LGD Call report loss history Home equity and improvement Home equity and improvement PD/LGD Call report loss history Consumer finance Consumer direct Remaining life Call report loss history Consumer indirect DCF National unemployment |
Schedule of allowance for credit loss (ACL) activity | The following table discloses allowance for credit loss (“ACL”) activity for the three and nine months ended September 30, 2022 and 2021 by portfolio segment (in thousands): Three Months Ended September 30, 2022 Residential Real Estate Commercial Construction Commercial Home Equity Consumer Total Beginning Allowance $ 14,113 $ 34,952 $ 2,999 $ 9,762 $ 4,003 $ 1,245 $ 67,074 Charge-Offs ( 15 ) ( 206 ) — ( 29 ) ( 47 ) ( 185 ) ( 482 ) Recoveries 77 48 — 84 95 24 328 Provisions 2,136 ( 2,082 ) 287 2,465 159 741 3,706 Ending Allowance $ 16,311 $ 32,712 $ 3,286 $ 12,282 $ 4,210 $ 1,825 $ 70,626 Nine Months Ended Residential Real Estate Commercial Construction Commercial Home Equity Consumer Total Beginning Allowance $ 12,029 $ 32,399 $ 3,004 $ 13,410 $ 4,221 $ 1,405 $ 66,468 Charge-Offs ( 1,016 ) ( 350 ) ( 16 ) ( 5,342 ) ( 324 ) ( 426 ) ( 7,474 ) Recoveries 831 562 3 370 208 175 2,149 Provisions 4,467 101 295 3,844 105 671 9,483 Ending Allowance $ 16,311 $ 32,712 $ 3,286 $ 12,282 $ 4,210 $ 1,825 $ 70,626 Three Months Ended September 30, 2021 Residential Real Estate Commercial Construction Commercial Home Equity Consumer Finance Total Beginning Allowance $ 15,268 $ 34,461 $ 2,739 $ 12,211 $ 4,988 $ 1,700 $ 71,367 Charge-Offs ( 27 ) ( 84 ) — ( 375 ) ( 47 ) ( 85 ) ( 618 ) Recoveries 75 143 — 576 23 57 874 Provisions ( 1,567 ) ( 428 ) 882 3,016 ( 276 ) ( 33 ) 1,594 Ending Allowance $ 13,749 $ 34,092 $ 3,621 $ 15,428 $ 4,688 $ 1,639 $ 73,217 Nine Months Ended Residential Real Estate Commercial Construction Commercial Home Equity Consumer Total Beginning Allowance $ 17,534 $ 43,417 $ 2,741 $ 11,665 $ 4,739 $ 1,983 $ 82,079 Charge-Offs ( 29 ) ( 689 ) — ( 445 ) ( 50 ) ( 227 ) ( 1,440 ) Recoveries 165 332 12 1,279 217 122 2,127 Provisions ( 3,921 ) ( 8,968 ) 868 2,929 ( 218 ) ( 239 ) ( 9,549 ) Ending Allowance $ 13,749 $ 34,092 $ 3,621 $ 15,428 $ 4,688 $ 1,639 $ 73,217 |
Schedule of Outstanding Balance and Related Allowance on Loans | The outstanding balance and related allowance on these loans as of September 30, 2022 and December 31, 2021 is as follows (in thousands): As of September 30, 2022 As of December 31, 2021 Loan Balance ACL Balance Loan Balance ACL Balance (In Thousands) (In Thousands) Real Estate: Residential $ 11,890 $ 151 $ 13,396 $ 197 Commercial 1,627 27 5,878 151 Construction — — — — 13,517 178 19,274 348 Other Loans: Commercial 6,163 871 9,167 1,531 Home equity and improvement 2,581 104 3,405 154 Consumer finance 297 5 491 7 9,041 980 13,063 1,692 Total $ 22,558 $ 1,158 $ 32,337 $ 2,040 |
Mortgage Banking (Tables)
Mortgage Banking (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Mortgage Banking [Abstract] | |
Schedule of net revenues from the sales and servicing of mortgage loans | Net revenues from the sales and servicing of mortgage loans consisted of the following: Three Months Ended Nine Months Ended 2022 2021 2022 2021 (In Thousands) Mortgage banking gain, net $ 3,363 $ 5,353 $ 7,072 $ 13,663 Mortgage loans servicing revenue (expense): Mortgage loans servicing revenue 1,861 1,861 5,602 5,666 Amortization of mortgage servicing rights ( 1,350 ) ( 1,822 ) ( 4,128 ) ( 6,119 ) Mortgage servicing rights valuation adjustments 96 783 1,624 5,655 607 822 3,098 5,202 Net revenue from sale and servicing of mortgage loans $ 3,970 $ 6,175 $ 10,170 $ 18,865 |
Schedule of capitalized mortgage and valuation allowance | Activity for capitalized mortgage servicing rights and the related valuation allowance follows for the three and nine months ended September 30, 2022 and 2021: Three Months Ended Nine Months Ended 2022 2021 2022 2021 (In Thousands) Mortgage servicing assets: Balance at beginning of period $ 21,873 $ 21,682 $ 22,244 $ 21,666 Loans sold, servicing retained 1,392 2,103 3,799 6,416 Amortization ( 1,350 ) ( 1,822 ) ( 4,128 ) ( 6,119 ) Carrying value before valuation allowance at end of period 21,915 21,963 21,915 21,963 Valuation allowance: Balance at beginning of period ( 1,180 ) ( 3,641 ) ( 2,707 ) ( 8,513 ) Impairment recovery (charges) 97 783 1,624 5,655 Balance at end of period ( 1,083 ) ( 2,858 ) ( 1,083 ) ( 2,858 ) Net carrying value of MSRs at end of period $ 20,832 $ 19,105 $ 20,832 $ 19,105 Fair value of MSRs at end of period $ 27,633 $ 20,189 $ 27,633 $ 20,189 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Schedule of Undiscounted Cash Flows Included in Lease Liabilities | Undiscounted cash flows included in lease liabilities have expected contractual payments as follows: (In Thousands) September 30, 2022 Remainder of 2022 $ 2,523 2023 2,087 2024 1,693 2025 1,470 2026 1,308 Thereafter 11,853 Total undiscounted minimum lease payments 20,934 Present value adjustment ( 5,100 ) Total lease liabilities $ 15,834 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Deposits [Abstract] | |
Summary of deposit balances | A summary of deposit balances is as follows: September 30, December 31, (In Thousands) Non-interest-bearing checking accounts $ 1,826,511 $ 1,724,772 Interest-bearing checking and money market accounts 3,197,455 2,952,705 Savings deposits 820,650 804,451 Retail certificates of deposit less than $250,000 550,275 636,477 Retail certificates of deposit greater than $250,000 267,733 163,646 Brokered deposits 69,881 — $ 6,732,505 $ 6,282,051 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Subordinated Borrowings [Abstract] | |
Schedule of Bank Line of Credit Advance, Junior Subordinated Debentures and Subordinated Debentures | The Company's FHLB advances and junior subordinated debentures owed to unconsolidated subsidiary trusts and subordinated debentures are comprised of the following: September 30, 2022 December 31, (In Thousands) FHLB Advances: Overnight advances $ 411,000 — Single maturity fixed rate advances — — Total $ 411,000 $ — First Defiance Statutory Trust I due December 2035 $ 20,619 $ 20,619 First Defiance Statutory Trust II due June 2037 $ 15,464 15,464 Junior subordinated debentures owed to unconsolidated subsidiary trusts $ 36,083 $ 36,083 Subordinated debentures $ 48,988 $ 48,893 |
Commitments, Guarantees and C_2
Commitments, Guarantees and Contingent Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of line of credit facilities | The Company’s maximum obligation to extend credit for loan commitments (unfunded loans and unused lines of credit) and standby letters of credit outstanding as of the periods stated below were as follows (in thousands): September 30, 2022 December 31, 2021 Commitments to make loans $ 1,175,293 $ 1,175,916 Unused lines of credit 1,012,298 626,348 Standby letters of credit 16,114 10,851 Total $ 2,203,705 $ 1,813,115 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax expense (benefit) | The components of income tax expense (benefit) are as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 (In Thousands) (In Thousands) Current: Federal $ 6,716 $ 6,600 $ 18,581 $ 22,199 State and local 162 162 517 490 Deferred ( 168 ) ( 638 ) ( 774 ) 1,708 $ 6,710 $ 6,124 $ 18,324 $ 24,397 |
Schedule of effective income tax rate reconciliation | The effective tax rates differ from federal statutory rate applied to income due to the following: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 (In Thousands) (In Thousands) Tax expense (benefit) at statutory rate ( 21 %) $ 7,330 $ 7,242 $ 20,000 $ 26,278 Increases (decreases) in taxes from: State income tax - net of federal tax benefit 129 128 409 387 Tax exempt interest income, net of TEFRA ( 180 ) ( 213 ) ( 554 ) ( 641 ) Bank owned life insurance ( 207 ) ( 199 ) ( 622 ) ( 625 ) Captive insurance ( 125 ) ( 90 ) ( 326 ) ( 282 ) Other ( 237 ) ( 744 ) ( 583 ) ( 720 ) Totals $ 6,710 $ 6,124 $ 18,324 $ 24,397 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of carrying values of the derivative instrument assets | The table below provides data about the carrying values of these derivative instrument assets: September 30, 2022 December 31, 2021 (In Thousands) Derivatives not designated as hedging instruments Mortgage Banking Derivatives $ 15,237 $ 2,336 |
Schedule of amount of gains and losses recognized in income on derivative instruments not designated as hedging instruments | The table below provides data about the amount of gains and losses recognized in income on derivative instruments not designated as hedging instruments. The difference in derivative carrying value at September 30, 2022 and 2021 represents a fair value adjustment that runs through mortgage banking income. Three Months Ended Nine Months Ended 2022 2021 2022 2021 (In Thousands) Derivatives not designated as hedging instruments Mortgage Banking Derivatives – Gain (Loss) $ 13,386 $ 2,122 $ 12,901 $ 2,446 |
Summary of Interest Rate Swap Designated as Cash Flow Hedge | A summary of the interest-rate swap designated as a cash flow hedge is presented below (dollars in thousands): September 30, 2022 December 31, 2021 Notional amount $ 250,000 $ 250,000 Weighted average fixed receive rates 1.437 % 1.437 % Weighted average variable 1-month LIBOR pay rates 3.143 % 0.089 % Weighted average remaining maturity (in years) 8.4 9.3 Fair value $ ( 41,458 ) $ 854 |
Other Comprehensive (Loss) In_2
Other Comprehensive (Loss) Income (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of reclassification adjustments related to securities available for sale are included in gains on sale of securities | Reclassification adjustments related to securities available for sale are included in gains on sale of securities in the accompanying consolidated condensed statements of income. Before Tax Tax (Expense) Net of Tax (In Thousands) Three Months Ended September 30, 2022 Securities available for sale and transferred securities: Change in net unrealized gain/loss during the period $ ( 55,350 ) $ 11,624 $ ( 43,726 ) Reclassification adjustment for net losses included in net income — — — Cash flow hedge derivatives Change in net unrealized gain/loss during the period ( 13,343 ) 2,802 ( 10,541 ) Reclassification adjustment for net gains included in net income ( 266 ) 56 ( 210 ) Total other comprehensive loss $ ( 68,959 ) $ 14,482 $ ( 54,477 ) Nine Months Ended September 30, 2022 Securities available for sale and transferred securities: Change in net unrealized gain/loss during the period $ ( 182,755 ) $ 38,378 $ ( 144,377 ) Reclassification adjustment for net gains included in net income — — — Cash flow hedge derivatives Change in net unrealized gain/loss during the period ( 43,294 ) 9,092 ( 34,202 ) Reclassification adjustment for net gains included in net income 982 ( 206 ) 776 Total other comprehensive loss $ ( 225,067 ) $ 47,264 $ ( 177,803 ) Before Tax Tax (Expense) Net of Tax (In Thousands) Three Months Ended September 30, 2021 Securities available for sale and transferred securities: Change in net unrealized gain/loss during the period $ ( 9,042 ) $ 1,898 $ ( 7,144 ) Reclassification adjustment for net gains included in net income ( 233 ) 49 ( 184 ) Cash flow hedge derivatives Change in net unrealized gain/loss during the period ( 1,692 ) 356 ( 1,336 ) Reclassification adjustment for net gains included in net income ( 860 ) 180 ( 680 ) Total other comprehensive loss $ ( 11,827 ) $ 2,483 $ ( 9,344 ) Nine Months Ended September 30, 2021 Securities available for sale and transferred securities: Change in net unrealized gain/loss during the period $ ( 16,169 ) $ 3,395 $ ( 12,774 ) Reclassification adjustment for net gains included in net income ( 2,218 ) 466 ( 1,752 ) Cash flow hedge derivatives Change in net unrealized gain/loss during the period 2,742 ( 576 ) 2,166 Reclassification adjustment for net gains included in net income ( 1,310 ) 275 ( 1,035 ) Total other comprehensive loss $ ( 16,955 ) $ 3,560 $ ( 13,395 ) |
Schedule of accumulated other comprehensive income (loss), net of tax | Activity in accumulated other comprehensive income (loss), net of tax, was as follows: Securities Post- Cash Flow Hedge Derivatives Accumulated (In Thousands) Balance January 1, 2022 $ ( 4,023 ) $ ( 79 ) $ 674 $ ( 3,428 ) Other comprehensive income/(loss) before reclassifications ( 144,377 ) — ( 34,202 ) ( 178,579 ) Amounts reclassified from accumulated other comprehensive income — — 776 776 Net other comprehensive income/(loss) during period ( 144,377 ) — ( 33,426 ) ( 177,803 ) Balance September 30, 2022 $ ( 148,400 ) $ ( 79 ) $ ( 32,752 ) $ ( 181,231 ) Balance January 1, 2021 $ 15,083 $ ( 79 ) $ — $ 15,004 Other comprehensive income (loss) before reclassifications ( 12,774 ) — 2,166 ( 10,608 ) Amounts reclassified from accumulated other comprehensive income ( 1,752 ) — ( 1,035 ) ( 2,787 ) Net other comprehensive income/(loss) during period ( 14,526 ) — 1,131 ( 13,395 ) Balance September 30, 2021 $ 557 $ ( 79 ) $ 1,131 $ 1,609 |
Fair Value - Additional informa
Fair Value - Additional information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Fair value determination of loans held for sale description | The fair value of conventional loans held for sale is determined using the current 15 day forward contract price for either 15 or 30 year conventional mortgages (Level 2). The fair value of permanent construction loans held for sale is determined using the current 60 day forward contract price for 15 or 30 years conventional mortgages which is then adjusted for unobservable market data such as estimated fall out rates and estimated time from origination to completion of construction (Level 3). | ||||
Loans held for sale, fair value disclosure | $ 129,142 | $ 129,142 | $ 162,947 | ||
Available for sale assets at fair value | 0 | $ 0 | 0 | $ 0 | |
Residential Mortgage Loans [Member] | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Loans held for sale, fair value disclosure | 23,700 | 23,700 | 28,800 | ||
Loans held for sale, contractual balance | 22,700 | 22,700 | 27,700 | ||
Gains (losses) on sale of loans held for sale for the change in fair value | (1,700) | (1,200) | (3,000) | (4,400) | |
Permanent Construction Loans [Member] | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Loans held for sale, fair value disclosure | 105,500 | 105,500 | 134,200 | ||
Loans held for sale, contractual balance | 123,700 | 123,700 | $ 125,000 | ||
Gains (losses) on sale of loans held for sale for the change in fair value | $ 7,600 | $ 3,000 | $ 27,400 | $ (3,900) | |
Minimum [Member] | Real Estate held for sale [Member] | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Fair value input discount rate | 0% | ||||
Maximum [Member] | Real Estate held for sale [Member] | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Fair value input discount rate | 30% |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured on a Recurring basis (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | $ 1,063,713 | $ 1,206,260 |
Collateralized mortgage obligations [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 257,055 | 260,168 |
Fair Value, Inputs, Level 1 [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 47,908 | |
Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 1,015,805 | 1,206,260 |
Fair Value, Inputs, Level 2 [Member] | Collateralized mortgage obligations [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 257,055 | 260,168 |
Obligations of U.S. government corporations and agencies [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 144,025 | 174,710 |
Obligations of U.S. government corporations and agencies [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 47,908 | |
Obligations of U.S. government corporations and agencies [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 96,117 | 174,710 |
Mortgage-Backed Securities [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 169,108 | 206,751 |
Mortgage-Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 169,108 | 206,751 |
Asset-backed Securities [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 198,548 | 220,536 |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 198,548 | 220,536 |
Corporate bonds [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 67,422 | 70,893 |
Corporate bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 67,422 | 70,893 |
Obligations of state and political subdivisions [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 227,555 | 273,202 |
Obligations of state and political subdivisions [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 227,555 | 273,202 |
Equity Securities [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 15,336 | 14,097 |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 15,336 | 14,097 |
Loans Held for Sale, at Fair Value [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 129,142 | 162,947 |
Loans Held for Sale, at Fair Value [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 23,689 | 28,780 |
Loans Held for Sale, at Fair Value [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 105,453 | 134,167 |
Interest Rate Swap Assets [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 4,739 | 1,287 |
Interest Rate Swap Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 4,739 | 1,287 |
Cash Flow Hedge Derivative Asset [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 854 | |
Cash Flow Hedge Derivative Asset [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 854 | |
Mortgage banking derivative [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 15,237 | 2,336 |
Mortgage banking derivative [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 15,237 | 2,336 |
Interest Rate Swap Liability [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 4,739 | 1,292 |
Interest Rate Swap Liability [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 4,739 | $ 1,292 |
Cash Flow Hedge Derivative Liability [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | 41,458 | |
Cash Flow Hedge Derivative Liability [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities: | ||
Securities available-for-sale, carried at fair value | $ 41,458 |
Fair Value - Summary of Reconci
Fair Value - Summary of Reconciliation of all Assets Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs (Level 3) (Details) - Construction Loans Held for Sale [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Balance of recurring Level 3 assets at beginning of period | $ 117,015 | $ 148,659 | $ 134,167 | $ 123,029 |
Total gains (losses) for the period, Included in change in fair value of loans held for sale | (7,627) | (3) | (27,417) | (3,757) |
Originations | 31,245 | 32,055 | 95,311 | 96,983 |
Sales | (35,180) | (41,141) | (96,608) | (76,685) |
Balance of recurring Level 3 assets at end of period | $ 105,453 | $ 139,570 | $ 105,453 | $ 139,570 |
Fair Value - Schedule of Level
Fair Value - Schedule of Level 3 Assets and Liabilities Measured At Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans held for sale, carried at fair value | $ 129,142 | $ 162,947 |
Range of Input 0.00% - 1.21% [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans held for sale, carried at fair value | $ 105,453 | |
Fair Value Measurements Valuation Processes Description 1 | Quoted market price | |
Unobservable Inputs, Fair Value | Time discount using the 60 day forward contract | |
Fair Value, Range of Input, Minimum | 0% | |
Fair Value, Range of Input, Maximum | 0.30% | |
Range of Input 0.00% - 1.86% [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans held for sale, carried at fair value | $ 134,167 | |
Fair Value Measurements Valuation Processes Description 1 | Quoted market price | |
Unobservable Inputs, Fair Value | Time discount using the 60 day forward contract | |
Fair Value, Range of Input, Minimum | 0% | |
Fair Value, Range of Input, Maximum | 1.86% |
Fair Value - Assets and Liabi_2
Fair Value - Assets and Liabilities Measured on a Non-Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Individually analyzed loans | ||
Total individually analyzed loans | $ 11,244 | $ 11,313 |
Mortgage servicing rights | 20,832 | 19,538 |
Commercial Real Estate [Member] | ||
Individually analyzed loans | ||
Total individually analyzed loans | 6,213 | 2,749 |
Commercial [Member] | ||
Individually analyzed loans | ||
Total individually analyzed loans | 5,031 | 8,564 |
Fair Value, Inputs, Level 2 [Member] | ||
Individually analyzed loans | ||
Mortgage servicing rights | 20,832 | 19,538 |
Fair Value, Inputs, Level 3 [Member] | ||
Individually analyzed loans | ||
Total individually analyzed loans | 11,244 | 11,313 |
Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate [Member] | ||
Individually analyzed loans | ||
Total individually analyzed loans | 6,213 | 2,749 |
Fair Value, Inputs, Level 3 [Member] | Commercial [Member] | ||
Individually analyzed loans | ||
Total individually analyzed loans | $ 5,031 | $ 8,564 |
Fair Value - Schedule of Leve_2
Fair Value - Schedule of Level 3 Assets and Liabilities Measured At Fair Value on a Non-Recurring Basis (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Individually analyzed Loans- Applies to loan classes with an appraisal valuation | $ 7,386 | $ 5,821 |
Individually analyzed Loans- Applies to loan classes without an appraisal valuation | $ 3,858 | $ 5,492 |
Appraisals Which Utilize Sales Comparison, Net Income and Cost Approach [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair Value Measurements Valuation Processes Description 1 | Appraisals which utilize sales comparison, net income and cost approach | Appraisals which utilize sales comparison, net income and cost approach |
Unobservable Inputs, Fair Value | Discounts for collection issues and changes in market conditions | Discounts for collection issues and changes in market conditions |
Fair Value, Range of Input, Minimum | 10% | 20% |
Fair Value, Range of Input, Maximum | 70% | 50% |
Fair Value Measurement Weighted Average Range | 22.03% | 35.18% |
Equitable Recoupment Claim Estimate [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair Value Measurements Valuation Processes Description 1 | Equitable Recoupment claim estimate | Equitable Recoupment claim estimate |
Unobservable Inputs, Fair Value | Discounts for collection issues | Discounts for collection issues |
Fair Value Measurement Range Of Input | 0% | 25% |
Fair Value Measurement Weighted Average Range | 0% | 25% |
Fair Value - Balance Sheet Grou
Fair Value - Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financial Assets, Carrying Value: | ||
Cash and cash equivalents, Carrying Value | $ 104,992 | $ 161,566 |
Securities available for sale, Carrying Value | 1,063,713 | 1,206,260 |
Equity securities, Carrying Value | 15,336 | 14,097 |
Federal Home Loan Bank Stock, Carrying Value | 28,262 | 11,585 |
Loans receivable, net, Carrying Value | 6,137,082 | 5,229,700 |
Loans held for sale, Carrying Value | 129,142 | 162,947 |
Financial Liabilities, Carrying Value: | ||
Deposits, Carrying Value | 6,732,505 | 6,282,051 |
Advances from the Federal Home Loan Bank | 411,000 | 0 |
Subordinated debentures, Carrying Value | 85,071 | 84,976 |
Financial Assets, Fair Value: | ||
Cash and cash equivalents, Fair Value | 104,992 | 161,566 |
Securities available-for-sale, carried at fair value | 1,063,713 | 1,206,260 |
Equity securities, Fair Value | 15,336 | 14,097 |
Loans receivable, net, Fair Value | 5,940,156 | 5,265,689 |
Loans held for sale, fair value disclosure | 129,142 | 162,947 |
Financial Liabilities, Fair Value: | ||
Deposits, Fair Value | 6,706,619 | 6,280,336 |
Advances from Federal Home Loan | 410,998 | |
Subordinated debentures, Fair Value | 77,175 | 85,417 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial Assets, Fair Value: | ||
Cash and cash equivalents, Fair Value | 104,992 | 161,566 |
Securities available-for-sale, carried at fair value | 47,908 | |
Equity securities, Fair Value | 15,336 | 14,097 |
Financial Liabilities, Fair Value: | ||
Deposits, Fair Value | 5,844,616 | 5,481,928 |
Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets, Fair Value: | ||
Securities available-for-sale, carried at fair value | 1,015,805 | 1,206,260 |
Loans held for sale, fair value disclosure | 23,689 | 28,780 |
Financial Liabilities, Fair Value: | ||
Deposits, Fair Value | 862,003 | 798,408 |
Advances from Federal Home Loan | 410,998 | |
Subordinated debentures, Fair Value | 77,175 | 85,417 |
Fair Value, Inputs, Level 3 [Member] | ||
Financial Assets, Fair Value: | ||
Loans receivable, net, Fair Value | 5,940,156 | 5,265,689 |
Loans held for sale, fair value disclosure | $ 105,453 | $ 134,167 |
Stock Compensation Plans - Addi
Stock Compensation Plans - Additional information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 29,661 | 29,661 | 35,661 | |||||
Stock Option Period, Description | All options expire ten years from the date of grant. Vested options of retirees expire on the earlier of the scheduled expiration date or one year after the retirement date. | |||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 month | |||||||
Allocated Share-based Compensation Expense | $ 280,000 | $ 351,000,000 | $ 786,000 | $ 908,000 | ||||
Compensation Expense, Maximum | 6,800,000 | 6,800,000 | ||||||
Estimated Compensation Expense, Excepted | 4,500,000 | 4,500,000 | ||||||
Unrecognized Compensation Expense | 1,300,000 | 1,300,000 | ||||||
Reduction of expense | $ 432,000 | $ 825,000 | $ 842,000 | $ 1,500,000 | ||||
Executive Long-Term Equity Incentive Plan [Member] | ||||||||
Stock Option Period, Description | The value of awards issued in 2021 and 2022 under the Executive LTIP will be determined individually at the end of each respective 36 month performance period ending December 31. The benefits earned under these LTIPs will be paid out in equity in the first quarter following the end of the performance period. The participants will receive all or a portion of the award if their employment is terminated by the Company without cause, by the participant in certain situations, or by death, disability or retirement of the participant. | |||||||
Share-based Compensation, Performance Period | 3 years | |||||||
Executive Long-Term Equity Incentive Plan [Member] | Minimum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 20% | 20% | ||||||
Executive Long-Term Equity Incentive Plan [Member] | Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 50% | 50% | ||||||
Equity Plan 2018 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 900,000 | 900,000 | ||||||
Long Term Equity Incentive Plan2015 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,200,000 | 1,200,000 | ||||||
Performance Stock Units (PSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 86,190 | 86,190 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 244,834 | 244,834 | 161,674 | |||||
Performance Stock Units (PSUs) [Member] | Executive Long-Term Equity Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 86,190 | |||||||
Restricted Stock Awards (RSAs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 52,713 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 70,713 | 70,713 | 58,260 | |||||
Restricted Stock Awards (RSAs) [Member] | Key Long-Term Equity Incentive Plan 2015 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 19,612 | |||||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 33,101 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 31,796 | 31,796 | 51,773 | |||||
Restricted Stock Units (RSUs) [Member] | Key Long-Term Equity Incentive Plan 2015 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 17,542 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||
Restricted Stock Units (RSUs) [Member] | Key Long-Term Equity Incentive Plan 2015 [Member] | Minimum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 5% | 5% | ||||||
Restricted Stock Units (RSUs) [Member] | Key Long-Term Equity Incentive Plan 2015 [Member] | Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 10% | 10% | ||||||
Restricted Share Awards [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 347,343 | 347,343 | ||||||
Short Term Incentive Plan [Member] | ||||||||
Allocated Share-based Compensation Expense | $ 2,300,000 | $ 2,700,000 | ||||||
Restricted Stock Grants [Member] | Share-based Compensation Award, Tranche One [Member] | Directors [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 14,712 |
Stock Compensation Plans - Stoc
Stock Compensation Plans - Stock option activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | |
Share-Based Payment Arrangement [Abstract] | |
Options outstanding, January 1, 2022 | shares | 35,661 |
Option Outstanding, Forfeited or cancelled | shares | (3,000) |
Option Outstanding, Exercised | shares | (3,000) |
Options outstanding, September 30, 2022 | shares | 29,661 |
Exercisable at September 30, 2022 | shares | 29,661 |
Weighted Average Exercise Price, Options outstanding, January 1, 2022 | $ / shares | $ 21.72 |
Weighted Average Exercise Price, Forfeited or cancelled | $ / shares | 17.68 |
Weighted Average Exercise Price, Exercised | $ / shares | 17.68 |
Weighted Average Exercise Price, Options outstanding, September 30, 2022 | $ / shares | 22.54 |
Weighted Average Exercise Price, Exercisable at September 30, 2022 | $ / shares | $ 22.54 |
Weighted Average Remaining Contractual Terms (In years), Exercisable at September 30, 2022 | 4 years 4 months 2 days |
Aggregate Intrinsic Value, Exercisable at September 30, 2022 | $ | $ 100 |
Stock Compensation Plans - Tax
Stock Compensation Plans - Tax benefits realized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Proceeds of options exercised | $ 53 | $ 53 | $ 8 |
Related tax benefit recognized | 6 | 6 | |
Intrinsic value of options exercised | $ 29 | $ 29 | $ 11 |
Stock Compensation Plans - Rest
Stock Compensation Plans - Restricted stock grants (Details) - $ / shares | 6 Months Ended | 9 Months Ended |
Jun. 30, 2022 | Sep. 30, 2022 | |
Performance Stock Units [Member] | ||
Shares, Unvested at January 1, 2022 | 161,674 | 161,674 |
Shares, Granted | 86,190 | 86,190 |
Shares, Vested | 0 | |
Shares, Forfeited | (3,030) | |
Shares, Unvested at September 30, 2022 | 244,834 | |
Weighted -Average Grant Date Fair Value, Unvested at January 1, 2022 | $ 28.36 | $ 28.36 |
Weighted-Average Grant Date Fair Value, Granted | 30.67 | |
Weighted-Average Grant Date Fair Value, Vested | 0 | |
Weighted-Average Grant Date Fair Value, Forfeited | 31.12 | |
Weighted-Average Grant Date Fair Value, Unvested at September 30, 2022 | $ 29.14 | |
Restricted Stock Units (RSUs) [Member] | ||
Shares, Unvested at January 1, 2022 | 51,773 | 51,773 |
Shares, Vested | (13,637) | |
Shares, Forfeited | (6,340) | |
Shares, Unvested at September 30, 2022 | 31,796 | |
Weighted -Average Grant Date Fair Value, Unvested at January 1, 2022 | $ 28.44 | $ 28.44 |
Weighted-Average Grant Date Fair Value, Vested | 29 | |
Weighted-Average Grant Date Fair Value, Forfeited | 27.25 | |
Weighted-Average Grant Date Fair Value, Unvested at September 30, 2022 | $ 28.44 | |
Restricted Stock Awards (RSAs) [Member] | ||
Shares, Unvested at January 1, 2022 | 58,260 | 58,260 |
Shares, Granted | 52,713 | |
Shares, Vested | (35,159) | |
Shares, Forfeited | (5,101) | |
Shares, Unvested at September 30, 2022 | 70,713 | |
Weighted -Average Grant Date Fair Value, Unvested at January 1, 2022 | $ 29.71 | $ 29.71 |
Weighted-Average Grant Date Fair Value, Granted | 29.24 | |
Weighted-Average Grant Date Fair Value, Vested | 27.97 | |
Weighted-Average Grant Date Fair Value, Forfeited | 30.50 | |
Weighted-Average Grant Date Fair Value, Unvested at September 30, 2022 | $ 30.17 |
Dividends on Common Stock (Deta
Dividends on Common Stock (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Dividends, Common Stock [Abstract] | ||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.27 | $ 0.26 | $ 0.24 | $ 0.90 | $ 0.77 |
Common Stock, Dividends, Per Share, Declared | $ 0.30 | $ 0.27 | $ 0.90 | $ 0.77 |
Earnings Per Common Share - Com
Earnings Per Common Share - Computation of basic and diluted earnings per common share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Basic Earnings Per Share: | ||||||||
Net income available to common shareholders | $ 28,195 | $ 22,360 | $ 26,357 | $ 28,360 | $ 31,385 | $ 40,996 | $ 76,912 | $ 100,741 |
Less: income allocated to participating securities | 22 | 27 | 80 | 98 | ||||
Net income allocated to common shareholders | $ 28,173 | $ 28,333 | $ 76,832 | $ 100,643 | ||||
Weighted average common shares outstanding including participating securities | 35,610 | 37,135 | 35,746 | 37,262 | ||||
Less: Participating securities | 28 | 35 | 37 | 36 | ||||
Average common shares | 35,582 | 37,100 | 35,709 | 37,226 | ||||
Basic earnings per common share | $ 0.79 | $ 0.76 | $ 2.15 | $ 2.70 | ||||
Diluted Earnings Per Share: | ||||||||
Net income allocated to common shareholders | $ 28,173 | $ 28,333 | $ 76,832 | $ 100,643 | ||||
Weighted average common shares outstanding for basic earnings per common share | 35,582 | 37,100 | 35,709 | 37,226 | ||||
Add: Dilutive effects of stock options and restricted stock units | 122 | 85 | 109 | 85 | ||||
Average shares and dilutive potential common shares | 35,704 | 37,185 | 35,818 | 37,311 | ||||
Diluted earnings per common share | $ 0.79 | $ 0.76 | $ 2.15 | $ 2.70 |
Earnings Per Common Share - Add
Earnings Per Common Share - Additional Information (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share, Basic [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 17,644 | 0 | 18,437 | 0 |
Investment Securities - Summary
Investment Securities - Summary of available-for-sale securities - (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Marketable Securities [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | $ 1,251,562 | $ 1,211,353 |
Available-for-Sale Securities, Gross Unrealized Gains | 589 | 9,866 |
Available-for-Sale Securities, Gross Unrealized Loss | (188,438) | (14,959) |
Available-for-Sale Securities, Fair Value | 1,063,713 | 1,206,260 |
Obligations of U.S. government corporations and agencies [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 173,907 | 174,644 |
Available-for-Sale Securities, Gross Unrealized Gains | 0 | 984 |
Available-for-Sale Securities, Gross Unrealized Loss | (29,882) | (918) |
Available-for-Sale Securities, Fair Value | 144,025 | 174,710 |
Mortgage-Backed Securities [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 204,655 | 208,281 |
Available-for-Sale Securities, Gross Unrealized Gains | 851 | |
Available-for-Sale Securities, Gross Unrealized Loss | (35,547) | (2,381) |
Available-for-Sale Securities, Fair Value | 169,108 | 206,751 |
Collateralized mortgage obligations [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 306,623 | 264,541 |
Available-for-Sale Securities, Gross Unrealized Gains | 0 | 363 |
Available-for-Sale Securities, Gross Unrealized Loss | (49,568) | (4,736) |
Available-for-Sale Securities, Fair Value | 257,055 | 260,168 |
Asset-backed securities [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 206,505 | 221,545 |
Available-for-Sale Securities, Gross Unrealized Gains | 557 | 610 |
Available-for-Sale Securities, Gross Unrealized Loss | (8,514) | (1,619) |
Available-for-Sale Securities, Fair Value | 198,548 | 220,536 |
Corporate bonds [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 73,659 | 70,008 |
Available-for-Sale Securities, Gross Unrealized Gains | 1,160 | |
Available-for-Sale Securities, Gross Unrealized Loss | (6,237) | (275) |
Available-for-Sale Securities, Fair Value | 67,422 | 70,893 |
Obligations of state and political subdivisions [Member] | ||
Marketable Securities [Line Items] | ||
Available-for-Sale Securities, Amortized Cost | 286,213 | 272,334 |
Available-for-Sale Securities, Gross Unrealized Gains | 32 | 5,898 |
Available-for-Sale Securities, Gross Unrealized Loss | (58,690) | (5,030) |
Available-for-Sale Securities, Fair Value | $ 227,555 | $ 273,202 |
Investment Securities - Schedul
Investment Securities - Schedule of Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Marketable Securities [Abstract] | ||
Available-for-sale, Due in one year or less, Amortized Cost | $ 3,238 | |
Available-for-sale, Due after one year through five years, Amortized Cost | 49,077 | |
Available-for-sale, Due after five years through ten years, Amortized Cost | 233,374 | |
Available-for-sale, Due after ten years, Amortized Cost | 248,090 | |
Available-for-sale, MBS/CMO/ABS, Amortized Cost | 717,783 | |
Available-for-Sale Securities, Amortized Cost | 1,251,562 | $ 1,211,353 |
Available-for-sale, Due in one year or less, Fair Value | 3,239 | |
Available-for-sale, Due after one year through five years, Fair Value | 45,193 | |
Available-for-sale, Due after five years through ten years, Fair Value | 202,166 | |
Available-for-sale, Due after ten years, Fair Value | 188,403 | |
Available-for-sale,MBS/CMO/ABS, Fair Value | 624,712 | |
Available-for-sale, Fair Value | $ 1,063,713 | $ 1,206,260 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Marketable Securities [Line Items] | |||||
Security Owned and Pledged as Collateral Carrying Value | $ 736,100,000 | $ 736,100,000 | $ 564,400,000 | ||
Realized available-for-sale securities gains (losses) | 0 | $ 233,000,000 | 0 | $ 2,200,000 | |
Preferred and common stock held as investment securities | 15,336,000 | 15,336,000 | 14,097,000 | ||
Unrealized loss on equity securities | 43,000 | $ 20,000 | $ (1,760,000) | $ 822,000 | |
Minimum [Member] | |||||
Marketable Securities [Line Items] | |||||
Loss Rate Percent | 3% | ||||
Preferred and Common Stock [Member] | |||||
Marketable Securities [Line Items] | |||||
Preferred and common stock held as investment securities | $ 15,300,000 | $ 15,300,000 | $ 14,100,000 |
Investment Securities - Unreali
Investment Securities - Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Total temporarily impaired securities, Duration Unrealized Loss Position, Less Than Twelve Months, Fair Value | $ 527,773 | $ 726,921 |
Total temporarily impaired securities, Duration of Unrealized Loss Position, Less Than 12 Months, Gross Unrealized Loss | (65,367) | (12,916) |
Total temporarily impaired securities, Duration of Unrealized Loss Position, Twelve Months or Longer, Fair Value | 492,189 | 51,446 |
Total temporarily impaired securities, Duration of Unrealized Loss Position, Twelve Months or Longer, Gross Unrealized Loss | (123,071) | (2,043) |
Total temporarily impaired securities, Duration of Unrealized Loss Position, Fair Value | 1,019,962 | 778,367 |
Total temporarily impaired securities, Duration of Unrealized Loss Position, Unrealized Loss | (188,438) | (14,959) |
Obligations of U.S. government corporations and agencies [Member] | ||
Available-for-sale securities, Duration of Unrealized Loss Position, Less than 12 Month, Fair Value | 99,589 | 73,810 |
Available-for-sale Securities, Duration of Unrealized Loss Position, Less than 12 Month, Gross Unrealized Loss | (19,180) | (918) |
Available-for-sale securities, Duration of Unrealized Loss Position, 12 Month or Longer, Fair Value | 44,436 | 0 |
Available-for-sale Securities, Duration of Unrealized Loss Position, 12 Month or Longer, Gross Unrealized Loss | (10,702) | 0 |
Available-for-sale securities, Total, Fair Value | 144,025 | 73,810 |
Available-for-sale securities, Total, Unrealized Loss | (29,882) | (918) |
Mortgage-Backed Securities [Member] | ||
Available-for-sale securities, Duration of Unrealized Loss Position, Less than 12 Month, Fair Value | 48,282 | 167,379 |
Available-for-sale Securities, Duration of Unrealized Loss Position, Less than 12 Month, Gross Unrealized Loss | (5,761) | (2,048) |
Available-for-sale securities, Duration of Unrealized Loss Position, 12 Month or Longer, Fair Value | 120,826 | 13,689 |
Available-for-sale Securities, Duration of Unrealized Loss Position, 12 Month or Longer, Gross Unrealized Loss | (29,786) | (333) |
Available-for-sale securities, Total, Fair Value | 169,108 | 181,068 |
Available-for-sale securities, Total, Unrealized Loss | (35,547) | (2,381) |
Collateralized mortgage obligations [Member] | ||
Available-for-sale securities, Duration of Unrealized Loss Position, Less than 12 Month, Fair Value | 111,746 | 222,134 |
Available-for-sale Securities, Duration of Unrealized Loss Position, Less than 12 Month, Gross Unrealized Loss | (14,355) | (4,736) |
Available-for-sale securities, Duration of Unrealized Loss Position, 12 Month or Longer, Fair Value | 145,309 | 0 |
Available-for-sale Securities, Duration of Unrealized Loss Position, 12 Month or Longer, Gross Unrealized Loss | (35,213) | 0 |
Available-for-sale securities, Total, Fair Value | 257,055 | 222,134 |
Available-for-sale securities, Total, Unrealized Loss | (49,568) | (4,736) |
Corporate bonds [Member] | ||
Available-for-sale securities, Duration of Unrealized Loss Position, Less than 12 Month, Fair Value | 57,170 | 24,173 |
Available-for-sale Securities, Duration of Unrealized Loss Position, Less than 12 Month, Gross Unrealized Loss | (4,946) | (270) |
Available-for-sale securities, Duration of Unrealized Loss Position, 12 Month or Longer, Fair Value | 10,252 | 504 |
Available-for-sale Securities, Duration of Unrealized Loss Position, 12 Month or Longer, Gross Unrealized Loss | (1,291) | (5) |
Available-for-sale securities, Total, Fair Value | 67,422 | 24,677 |
Available-for-sale securities, Total, Unrealized Loss | (6,237) | (275) |
Obligations of state and political subdivisions [Member] | ||
Available-for-sale securities, Duration of Unrealized Loss Position, Less than 12 Month, Fair Value | 128,802 | 99,199 |
Available-for-sale Securities, Duration of Unrealized Loss Position, Less than 12 Month, Gross Unrealized Loss | (19,309) | (3,355) |
Available-for-sale securities, Duration of Unrealized Loss Position, 12 Month or Longer, Fair Value | 89,875 | 34,548 |
Available-for-sale Securities, Duration of Unrealized Loss Position, 12 Month or Longer, Gross Unrealized Loss | (39,381) | (1,675) |
Available-for-sale securities, Total, Fair Value | 218,677 | 133,747 |
Available-for-sale securities, Total, Unrealized Loss | (58,690) | (5,030) |
Asset-backed securities [Member] | ||
Available-for-sale securities, Duration of Unrealized Loss Position, Less than 12 Month, Fair Value | 82,184 | 140,226 |
Available-for-sale Securities, Duration of Unrealized Loss Position, Less than 12 Month, Gross Unrealized Loss | (1,816) | (1,589) |
Available-for-sale securities, Duration of Unrealized Loss Position, 12 Month or Longer, Fair Value | 81,491 | 2,705 |
Available-for-sale Securities, Duration of Unrealized Loss Position, 12 Month or Longer, Gross Unrealized Loss | (6,698) | (30) |
Available-for-sale securities, Total, Fair Value | 163,675 | 142,931 |
Available-for-sale securities, Total, Unrealized Loss | $ (8,514) | $ (1,619) |
Loans - Schedule of Loans Recei
Loans - Schedule of Loans Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Real Estate: | ||||||
Real Estate | $ 5,394,483 | $ 4,480,630 | ||||
Other Loans: | ||||||
Loans before deferred loan origination fees and costs | 6,922,244 | 5,767,039 | ||||
Deduct: | ||||||
Undisbursed construction loan funds | (724,797) | (477,890) | ||||
Net deferred loan origination fees and costs | 10,261 | 7,019 | ||||
Allowance for credit losses | (70,626) | $ (67,074) | (66,468) | $ (73,217) | $ (71,367) | $ (82,079) |
Total loans | 6,137,082 | 5,229,700 | ||||
Other Loan [Member] | ||||||
Other Loans: | ||||||
Total loans | 1,527,761 | 1,286,409 | ||||
Residential Real Estate [Member] | ||||||
Real Estate: | ||||||
Real Estate | 1,478,360 | 1,167,466 | ||||
Commercial Real Estate [Member] | ||||||
Real Estate: | ||||||
Real Estate | 2,674,078 | 2,450,349 | ||||
Construction Loans [Member] | ||||||
Real Estate: | ||||||
Real Estate | 1,242,045 | 862,815 | ||||
Commercial [Member] | ||||||
Other Loans: | ||||||
Total loans | 1,042,604 | 895,638 | ||||
Deduct: | ||||||
Allowance for credit losses | (12,282) | (9,762) | (13,410) | (15,428) | (12,211) | (11,665) |
Home Equity and Improvement [Member] | ||||||
Other Loans: | ||||||
Total loans | 272,367 | 264,354 | ||||
Consumer Finance [Member] | ||||||
Other Loans: | ||||||
Total loans | 212,790 | 126,417 | ||||
Deduct: | ||||||
Allowance for credit losses | $ (1,825) | $ (1,245) | $ (1,405) | $ (1,639) | $ (1,700) | $ (1,983) |
Loans - Additional Information
Loans - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Cash paid for paycheck protection program | $ 636,900,000 | ||||
Anticipated credit losses | $ 3,706,000 | $ 1,594,000 | 9,483,000 | $ (9,549,000) | |
Loans and Leases Receivable, Loans in Process | 724,797,000 | 724,797,000 | $ 477,890,000 | ||
Scenario Plan [Member] | |||||
Anticipated credit losses | 7,100,000 | ||||
Subsequently Defaulted [Member] | |||||
Financing Receivable, Allowance for Credit Losses, Period Increase (decrease) | 0 | ||||
TDRs [Member] | |||||
Financing Receivable, Modifications, Recorded Investment | 19,800 | 19,800 | 11,900,000 | ||
Specified Reserves, Provision for Troubled Debt Restructurings | 353,000,000 | 353,000,000 | 378,000,000 | ||
Loans and Leases Receivable, Impaired, Commitment to Lend | 319,000,000 | 319,000,000 | 348,000,000 | ||
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | 12,900 | ||||
Financing Receivable, Allowance for Credit Losses, Period Increase (decrease) | 28,000,000 | $ 9,000,000 | 428,000,000 | $ 382,000,000 | |
TDRs [Member] | Subsequently Defaulted [Member] | |||||
Financing Receivable, Allowance for Credit Losses, Period Increase (decrease) | 9,000,000 | 11,000,000 | |||
Consumer Portfolio Segment [Member] | |||||
Loans and Leases Receivable, Loans in Process | 2,700,000 | 2,700,000 | 3,300,000 | ||
Other Loans [Member] | Commercial [Member] | |||||
PPP loans | 1,200,000 | 1,200,000 | $ 58,900,000 | ||
Unfunded Loan Commitments [Member] | |||||
Unfunded loan commitments | $ 1,800,000,000 | $ 1,800,000,000 |
Loans - Summary of Amortized Co
Loans - Summary of Amortized Cost Basis of Collateral-dependent Loans by Class of Loans and Collateral Type (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 6,137,082 | $ 5,229,700 |
Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 15,055 | 20,199 |
Equipment and Machinery [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 561 | 160 |
Inventory and Receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 6,574 | 14,023 |
Vehicles [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 0 | 25 |
Collateral Pledged [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 22,190 | 34,407 |
Real Estate Loans [Member] | Real Estate [Member] | Residential [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 54 | 226 |
Real Estate Loans [Member] | Real Estate [Member] | Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 12,394 | 18,399 |
Real Estate Loans [Member] | Inventory and Receivables [Member] | Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,716 | |
Real Estate Loans [Member] | Collateral Pledged [Member] | Residential [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 54 | 226 |
Real Estate Loans [Member] | Collateral Pledged [Member] | Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 15,110 | 18,399 |
Other Loans [Member] | Real Estate [Member] | Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,607 | 1,574 |
Other Loans [Member] | Equipment and Machinery [Member] | Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 561 | 160 |
Other Loans [Member] | Inventory and Receivables [Member] | Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 3,858 | 14,023 |
Other Loans [Member] | Vehicles [Member] | Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 25 | |
Other Loans [Member] | Collateral Pledged [Member] | Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 7,026 | $ 15,782 |
Loans - Schedule of Non-Perform
Loans - Schedule of Non-Performing Loans and Real Estate Owned (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Loans and Leases Receivable, Net Amount [Abstract] | ||
Non-accrual loans with reserve | $ 19,308 | $ 35,480 |
Non-accrual loans without reserve | 13,829 | 12,534 |
Total non-performing loans | 33,137 | 48,014 |
Real estate and other assets held for sale | 416 | 171 |
Total non-performing assets | 33,553 | 48,185 |
Troubled debt restructuring, still accruing | $ 6,909 | $ 7,768 |
Loans - Schedule of Aging of th
Loans - Schedule of Aging of the Amortized Cost/ Recorded Investment in Past Due and Non- Accrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 42,054 | $ 38,683 |
Total Non-Accrual | 33,137 | 48,014 |
Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 6,165,654 | 5,257,485 |
Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 7,173 | 3,603 |
Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 7,273 | 10,200 |
Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 27,608 | 24,880 |
Real Estate Loans [Member] | Residential [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 11,317 | 13,061 |
Total Non-Accrual | 6,458 | 9,034 |
Real Estate Loans [Member] | Residential [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,460,105 | 1,144,533 |
Real Estate Loans [Member] | Residential [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 547 | 234 |
Real Estate Loans [Member] | Residential [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 5,816 | 5,340 |
Real Estate Loans [Member] | Residential [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 4,954 | 7,487 |
Real Estate Loans [Member] | Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 12,556 | 8,111 |
Total Non-Accrual | 13,709 | 14,621 |
Real Estate Loans [Member] | Commercial Real Estate [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 2,663,003 | 2,439,552 |
Real Estate Loans [Member] | Commercial Real Estate [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 809 | 96 |
Real Estate Loans [Member] | Commercial Real Estate [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 177 | 847 |
Real Estate Loans [Member] | Commercial Real Estate [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 11,570 | 7,168 |
Real Estate Loans [Member] | Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 1,789 |
Total Non-Accrual | 0 | 0 |
Real Estate Loans [Member] | Construction [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 517,248 | 383,136 |
Real Estate Loans [Member] | Construction [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 43 |
Real Estate Loans [Member] | Construction [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 1,746 |
Real Estate Loans [Member] | Construction [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Other Loans [Member] | Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 5,068 | 944 |
Total Non-Accrual | 4,895 | 11,531 |
Other Loans [Member] | Commercial [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,031,322 | 884,025 |
Other Loans [Member] | Commercial [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 333 | 42 |
Other Loans [Member] | Commercial [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 50 | 35 |
Other Loans [Member] | Commercial [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 4,685 | 867 |
Other Loans [Member] | Home Equity and Improvement [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 3,785 | 3,893 |
Total Non-Accrual | 1,423 | 2,051 |
Other Loans [Member] | Home Equity and Improvement [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 266,002 | 257,055 |
Other Loans [Member] | Home Equity and Improvement [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 2,586 | 1,851 |
Other Loans [Member] | Home Equity and Improvement [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 207 | 408 |
Other Loans [Member] | Home Equity and Improvement [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 992 | 1,634 |
Other Loans [Member] | Consumer Finance [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 5,102 | 3,659 |
Total Non-Accrual | 1,881 | 1,873 |
Other Loans [Member] | Consumer Finance [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 209,642 | 124,073 |
Other Loans [Member] | Consumer Finance [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 2,540 | 1,112 |
Other Loans [Member] | Consumer Finance [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 803 | 819 |
Other Loans [Member] | Consumer Finance [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,759 | 1,728 |
PCD [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 4,226 | 7,226 |
Total Non-Accrual | 4,771 | 8,904 |
PCD [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 18,332 | 25,111 |
PCD [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 358 | 225 |
PCD [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 220 | 1,005 |
PCD [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 3,648 | $ 5,996 |
Loans - Schedule of Present Loa
Loans - Schedule of Present Loans by Class Modified as TDRs that Occurred (Details) - TDRs [Member] $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) Loan | Sep. 30, 2021 USD ($) Loan | Sep. 30, 2022 USD ($) Loan | Sep. 30, 2021 USD ($) Loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Troubled Debt Restructurings, Number of Loans | Loan | 11 | 2 | 32 | 10 |
Troubled Debt Restructurings, Recorded Investment | $ | $ 1,457 | $ 538 | $ 11,836 | $ 2,365 |
Residential Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Troubled Debt Restructurings, Number of Loans | Loan | 3 | 1 | 11 | 4 |
Troubled Debt Restructurings, Recorded Investment | $ | $ 1,084 | $ 263 | $ 2,097 | $ 512 |
Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Troubled Debt Restructurings, Number of Loans | Loan | 1 | 4 | ||
Troubled Debt Restructurings, Recorded Investment | $ | $ 115 | $ 5,094 | ||
Home Equity and Improvement [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Troubled Debt Restructurings, Number of Loans | Loan | 3 | 6 | ||
Troubled Debt Restructurings, Recorded Investment | $ | $ 198 | $ 277 | ||
Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Troubled Debt Restructurings, Number of Loans | Loan | 1 | 1 | 3 | 6 |
Troubled Debt Restructurings, Recorded Investment | $ | $ 17 | $ 275 | $ 4,281 | $ 1,853 |
Consumer Finance [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Troubled Debt Restructurings, Number of Loans | Loan | 3 | 8 | ||
Troubled Debt Restructurings, Recorded Investment | $ | $ 43 | $ 87 |
Loans - Troubled Debt Restructu
Loans - Troubled Debt Restructurings on Payments (Details) - Subsequently Defaulted [Member] $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 USD ($) Loan | Sep. 30, 2022 USD ($) Loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled Debt Restructurings That Subsequently Defaulted, Number of Loans | Loan | 4 | 5 |
Troubled Debt Restructurings That Subsequently Defaulted, Recorded Investment | $ | $ 259 | $ 322 |
Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled Debt Restructurings That Subsequently Defaulted, Number of Loans | Loan | 2 | 3 |
Troubled Debt Restructurings That Subsequently Defaulted, Recorded Investment | $ | $ 219 | $ 282 |
Consumer Finance [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled Debt Restructurings That Subsequently Defaulted, Number of Loans | Loan | 2 | 2 |
Troubled Debt Restructurings That Subsequently Defaulted, Recorded Investment | $ | $ 40 | $ 40 |
Loans - Schedule of Risk Catego
Loans - Schedule of Risk Category of Loans by Class of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | $ 6,207,708 | $ 5,296,168 |
Unclassified [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 6,074,689 | 5,097,203 |
Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 87,999 | 129,430 |
Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 45,020 | 69,535 |
Total Classified [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 45,020 | 69,535 |
Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 1,471,422 | 1,157,594 |
Residential Real Estate [Member] | Unclassified [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 1,463,034 | 1,146,212 |
Residential Real Estate [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 1,267 | 1,316 |
Residential Real Estate [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 7,121 | 10,066 |
Residential Real Estate [Member] | Total Classified [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 7,121 | 10,066 |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 2,675,559 | 2,447,663 |
Commercial Real Estate [Member] | Unclassified [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 2,588,092 | 2,324,846 |
Commercial Real Estate [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 65,233 | 93,676 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 22,234 | 29,141 |
Commercial Real Estate [Member] | Total Classified [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 22,234 | 29,141 |
Construction Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 517,248 | 384,925 |
Construction Loans [Member] | Unclassified [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 515,948 | 365,403 |
Construction Loans [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 1,300 | 19,522 |
Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 1,036,390 | 884,969 |
Commercial [Member] | Unclassified [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 1,009,333 | 856,402 |
Commercial [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 20,106 | 14,815 |
Commercial [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 6,951 | 13,752 |
Commercial [Member] | Total Classified [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 6,951 | 13,752 |
Home Equity and Improvement [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 269,787 | 260,948 |
Home Equity and Improvement [Member] | Unclassified [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 268,385 | 258,914 |
Home Equity and Improvement [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 1,402 | 2,034 |
Home Equity and Improvement [Member] | Total Classified [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 1,402 | 2,034 |
Consumer Finance [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 214,744 | 127,732 |
Consumer Finance [Member] | Unclassified [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 212,853 | 125,879 |
Consumer Finance [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 1,891 | 1,853 |
Consumer Finance [Member] | Total Classified [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 1,891 | 1,853 |
PCD [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 22,558 | 32,337 |
PCD [Member] | Unclassified [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 17,044 | 19,547 |
PCD [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 93 | 101 |
PCD [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 5,421 | 12,689 |
PCD [Member] | Total Classified [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | $ 5,421 | $ 12,689 |
Loans - Summary of Amortized _2
Loans - Summary of Amortized Cost Basis of Loans by Credit Quality Indicator and Class of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable Recorded Investment [Line Items] | ||
Total | $ 6,207,708 | $ 5,296,168 |
Residential [Member] | Real Estate [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Current year | 194,669 | 219,471 |
Year 1 | 474,276 | 374,409 |
Year 2 | 339,320 | 113,979 |
Year 3 | 96,713 | 66,550 |
Year 4 | 53,989 | 73,948 |
Prior | 310,132 | 306,366 |
Revolving Loans | 2,323 | 2,871 |
Total | 1,471,422 | 1,157,594 |
Commercial [Member] | Real Estate [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Current year | 470,905 | 514,799 |
Year 1 | 509,265 | 499,494 |
Year 2 | 522,438 | 398,570 |
Year 3 | 326,655 | 247,314 |
Year 4 | 228,245 | 287,767 |
Prior | 604,694 | 489,440 |
Revolving Loans | 13,357 | 10,279 |
Total | 2,675,559 | 2,447,663 |
Construction [Member] | Real Estate [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Current year | 213,186 | 198,221 |
Year 1 | 221,869 | 113,106 |
Year 2 | 52,156 | 55,707 |
Year 3 | 30,037 | 16,035 |
Year 4 | 1,711 | |
Prior | 145 | |
Total | 517,248 | 384,925 |
Commercial [Member] | Other Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Current year | 226,570 | 293,780 |
Year 1 | 213,754 | 146,433 |
Year 2 | 103,283 | 88,785 |
Year 3 | 60,362 | 47,981 |
Year 4 | 29,695 | 25,921 |
Prior | 33,127 | 21,832 |
Revolving Loans | 369,599 | 260,237 |
Total | 1,036,390 | 884,969 |
Home Equity and Improvement [Member] | Other Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Current year | 21,616 | 24,722 |
Year 1 | 21,740 | 6,870 |
Year 2 | 5,606 | 4,895 |
Year 3 | 3,772 | 2,927 |
Year 4 | 1,980 | 5,561 |
Prior | 32,197 | 32,007 |
Revolving Loans | 182,876 | 183,966 |
Total | 269,787 | 260,948 |
Consumer Finance [Member] | Other Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Current year | 123,948 | 50,398 |
Year 1 | 36,861 | 26,573 |
Year 2 | 19,731 | 23,619 |
Year 3 | 15,866 | 9,772 |
Year 4 | 5,237 | 4,380 |
Prior | 3,349 | 2,900 |
Revolving Loans | 9,752 | 10,090 |
Total | 214,744 | 127,732 |
PCD [Member] | Other Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Year 2 | 237 | |
Year 3 | 140 | 1,781 |
Year 4 | 403 | 5,102 |
Prior | 17,829 | 19,087 |
Revolving Loans | 4,186 | 6,130 |
Total | 22,558 | 32,337 |
Pass [Member] | Residential [Member] | Real Estate [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Current year | 194,669 | 219,006 |
Year 1 | 472,696 | 373,439 |
Year 2 | 338,397 | 112,781 |
Year 3 | 95,857 | 65,544 |
Year 4 | 53,398 | 71,794 |
Prior | 306,452 | 301,735 |
Revolving Loans | 1,565 | 1,913 |
Total | 1,463,034 | 1,146,212 |
Pass [Member] | Commercial [Member] | Real Estate [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Current year | 468,444 | 514,333 |
Year 1 | 504,860 | 493,575 |
Year 2 | 521,889 | 388,117 |
Year 3 | 321,775 | 230,734 |
Year 4 | 198,095 | 237,712 |
Prior | 560,364 | 451,113 |
Revolving Loans | 12,665 | 9,262 |
Total | 2,588,092 | 2,324,846 |
Pass [Member] | Construction [Member] | Real Estate [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Current year | 213,186 | 198,221 |
Year 1 | 220,569 | 100,606 |
Year 2 | 52,156 | 55,707 |
Year 3 | 30,037 | 10,039 |
Year 4 | 685 | |
Prior | 145 | |
Total | 515,948 | 365,403 |
Pass [Member] | Commercial [Member] | Other Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Current year | 224,003 | 293,644 |
Year 1 | 209,901 | 132,703 |
Year 2 | 97,286 | 84,668 |
Year 3 | 58,663 | 47,421 |
Year 4 | 28,214 | 24,269 |
Prior | 27,355 | 17,038 |
Revolving Loans | 363,911 | 256,659 |
Total | 1,009,333 | 856,402 |
Pass [Member] | Home Equity and Improvement [Member] | Other Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Current year | 21,616 | 24,707 |
Year 1 | 21,726 | 6,870 |
Year 2 | 5,606 | 4,867 |
Year 3 | 3,744 | 2,879 |
Year 4 | 1,948 | 5,534 |
Prior | 31,676 | 31,317 |
Revolving Loans | 182,069 | 182,740 |
Total | 268,385 | 258,914 |
Pass [Member] | Consumer Finance [Member] | Other Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Current year | 123,887 | 50,202 |
Year 1 | 36,307 | 25,866 |
Year 2 | 19,016 | 23,000 |
Year 3 | 15,473 | 9,643 |
Year 4 | 5,140 | 4,313 |
Prior | 3,279 | 2,769 |
Revolving Loans | 9,751 | 10,086 |
Total | 212,853 | 125,879 |
Pass [Member] | PCD [Member] | Other Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Year 2 | 170 | |
Year 3 | 137 | 1,753 |
Year 4 | 376 | 1,860 |
Prior | 13,343 | 12,496 |
Revolving Loans | 3,188 | 3,268 |
Total | 17,044 | 19,547 |
Special Mention [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 87,999 | 129,430 |
Special Mention [Member] | Residential [Member] | Real Estate [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Year 1 | 183 | 190 |
Year 2 | 182 | |
Year 4 | 59 | |
Prior | 144 | 109 |
Revolving Loans | 758 | 958 |
Total | 1,267 | 1,316 |
Special Mention [Member] | Commercial [Member] | Real Estate [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Current year | 2,345 | 294 |
Year 1 | 2,284 | 5,349 |
Year 2 | 5,533 | |
Year 3 | 268 | 11,055 |
Year 4 | 25,660 | 49,993 |
Prior | 34,210 | 20,662 |
Revolving Loans | 466 | 790 |
Total | 65,233 | 93,676 |
Special Mention [Member] | Construction [Member] | Real Estate [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Year 1 | 1,300 | 12,500 |
Year 3 | 5,996 | |
Year 4 | 1,026 | |
Total | 1,300 | 19,522 |
Special Mention [Member] | Commercial [Member] | Other Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Current year | 2,527 | |
Year 1 | 3,733 | 2,180 |
Year 2 | 2,099 | 4,094 |
Year 3 | 1,694 | 272 |
Year 4 | 1,291 | 1,264 |
Prior | 5,572 | 4,663 |
Revolving Loans | 3,190 | 2,342 |
Total | 20,106 | 14,815 |
Special Mention [Member] | PCD [Member] | Other Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Year 3 | 0 | |
Year 4 | 0 | |
Prior | 93 | 101 |
Revolving Loans | 0 | |
Total | 93 | 101 |
Substandard [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 45,020 | 69,535 |
Substandard [Member] | Residential [Member] | Real Estate [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Current year | 465 | |
Year 1 | 1,397 | 780 |
Year 2 | 741 | 1,198 |
Year 3 | 856 | 1,006 |
Year 4 | 591 | 2,095 |
Prior | 3,536 | 4,522 |
Total | 7,121 | 10,066 |
Substandard [Member] | Commercial [Member] | Real Estate [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Current year | 116 | 172 |
Year 1 | 2,121 | 570 |
Year 2 | 549 | 4,920 |
Year 3 | 4,612 | 5,525 |
Year 4 | 4,490 | 62 |
Prior | 10,120 | 17,665 |
Revolving Loans | 226 | 227 |
Total | 22,234 | 29,141 |
Substandard [Member] | Commercial [Member] | Other Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Current year | 40 | 136 |
Year 1 | 120 | 11,550 |
Year 2 | 3,898 | 23 |
Year 3 | 5 | 288 |
Year 4 | 190 | 388 |
Prior | 200 | 131 |
Revolving Loans | 2,498 | 1,236 |
Total | 6,951 | 13,752 |
Substandard [Member] | Home Equity and Improvement [Member] | Other Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Current year | 15 | |
Year 1 | 14 | |
Year 2 | 28 | |
Year 3 | 28 | 48 |
Year 4 | 32 | 27 |
Prior | 521 | 690 |
Revolving Loans | 807 | 1,226 |
Total | 1,402 | 2,034 |
Substandard [Member] | Consumer Finance [Member] | Other Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Current year | 61 | 196 |
Year 1 | 554 | 707 |
Year 2 | 715 | 619 |
Year 3 | 393 | 129 |
Year 4 | 97 | 67 |
Prior | 70 | 131 |
Revolving Loans | 1 | 4 |
Total | 1,891 | 1,853 |
Substandard [Member] | PCD [Member] | Other Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Year 2 | 67 | |
Year 3 | 3 | 28 |
Year 4 | 27 | 3,242 |
Prior | 4,393 | 6,490 |
Revolving Loans | 998 | 2,862 |
Total | $ 5,421 | $ 12,689 |
Loans - Summary of Credit Loss
Loans - Summary of Credit Loss Estimation (Details) | 9 Months Ended |
Sep. 30, 2022 | |
Residential Portfolio Segment [Member] | Real Estate [Member] | 1-4 Family Nonowner Occupied [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Residential real estate |
Loan Pool | 1-4 Family nonowner occupied |
Methodology | DCF |
Loss Drivers | National unemployment |
Residential Portfolio Segment [Member] | Real Estate [Member] | 1-4 Family Owner Occupied [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Residential real estate |
Loan Pool | 1-4 Family owner occupied |
Methodology | DCF |
Loss Drivers | National unemployment |
Commercial Real Estate [Member] | Real Estate [Member] | Commercial Real Estate Nonowner Occupied [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Commercial real estate |
Loan Pool | Commercial real estate nonowner occupied |
Methodology | DCF |
Loss Drivers | National unemployment |
Commercial Real Estate [Member] | Real Estate [Member] | Commercial Real Estate Owner Occupied [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Commercial real estate |
Loan Pool | Commercial real estate owner occupied |
Methodology | DCF |
Loss Drivers | National unemployment |
Commercial Real Estate [Member] | Real Estate [Member] | Multi Family Residential Real Estate [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Commercial real estate |
Loan Pool | Multi Family |
Methodology | DCF |
Loss Drivers | National unemployment |
Commercial Real Estate [Member] | Real Estate [Member] | Agriculture Land [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Commercial real estate |
Loan Pool | Agriculture Land |
Methodology | DCF |
Loss Drivers | National unemployment |
Commercial Real Estate [Member] | Real Estate [Member] | Commercial Loans Other [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Commercial |
Loan Pool | Other commercial real estate |
Methodology | DCF |
Loss Drivers | National unemployment |
Construction Portfolio Segment [Member] | Real Estate [Member] | Construction Loans [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Construction secured by real estate |
Loan Pool | Construction Other |
Methodology | PD/LGD |
Loss Drivers | Call report loss history |
Construction Portfolio Segment [Member] | Real Estate [Member] | Construction Residential [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Construction secured by real estate |
Loan Pool | Construction Residential |
Methodology | PD/LGD |
Loss Drivers | Call report loss history |
Commercial Loan Portfolio Segment [Member] | Other Loans [Member] | Commercial Loans Other [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Commercial |
Loan Pool | Other commercial |
Methodology | PD/LGD |
Loss Drivers | Call report loss history |
Commercial Loan Portfolio Segment [Member] | Other Loans [Member] | Commercial Working Capital [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Commercial |
Loan Pool | Commercial working capital |
Methodology | PD/LGD |
Loss Drivers | Call report loss history |
Commercial Loan Portfolio Segment [Member] | Other Loans [Member] | Agriculture Production [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Commercial |
Loan Pool | Agriculture production |
Methodology | PD/LGD |
Loss Drivers | Call report loss history |
Home Equity and Improvement Portfolio Segment [Member] | Other Loans [Member] | Home Equity and Improvement [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Home equity and improvement |
Loan Pool | Home equity and improvement |
Methodology | PD/LGD |
Loss Drivers | Call report loss history |
Consumer Finance [Member] | Other Loans [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Loan Pool | Consumer indirect |
Methodology | DCF |
Loss Drivers | National unemployment |
Consumer Finance [Member] | Other Loans [Member] | Consumer Finance [Member] | |
Financing Receivable Recorded Investment [Line Items] | |
Portfolio Segments | Consumer finance |
Loan Pool | Consumer direct |
Methodology | Remaining life |
Loss Drivers | Call report loss history |
Loans - Schedule of allowance f
Loans - Schedule of allowance for credit loss (ACL) activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Beginning Allowance | $ 67,074 | $ 71,367 | $ 66,468 | $ 82,079 |
Charge-Offs | (482) | (618) | (7,474) | (1,440) |
Recoveries | 328 | 874 | 2,149 | 2,127 |
Provisions | 3,706 | 1,594 | 9,483 | (9,549) |
Ending Allowance | 70,626 | 73,217 | 70,626 | 73,217 |
Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Beginning Allowance | 9,762 | 12,211 | 13,410 | 11,665 |
Charge-Offs | (29) | (375) | (5,342) | (445) |
Recoveries | 84 | 576 | 370 | 1,279 |
Provisions | 2,465 | 3,016 | 3,844 | 2,929 |
Ending Allowance | 12,282 | 15,428 | 12,282 | 15,428 |
Consumer Finance [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Beginning Allowance | 1,245 | 1,700 | 1,405 | 1,983 |
Charge-Offs | (185) | (85) | (426) | (227) |
Recoveries | 24 | 57 | 175 | 122 |
Provisions | 741 | (33) | 671 | (239) |
Ending Allowance | 1,825 | 1,639 | 1,825 | 1,639 |
Residential Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Beginning Allowance | 14,113 | 15,268 | 12,029 | 17,534 |
Charge-Offs | (15) | (27) | (1,016) | (29) |
Recoveries | 77 | 75 | 831 | 165 |
Provisions | 2,136 | (1,567) | 4,467 | (3,921) |
Ending Allowance | 16,311 | 13,749 | 16,311 | 13,749 |
Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Beginning Allowance | 34,952 | 34,461 | 32,399 | 43,417 |
Charge-Offs | (206) | (84) | (350) | (689) |
Recoveries | 48 | 143 | 562 | 332 |
Provisions | (2,082) | (428) | 101 | (8,968) |
Ending Allowance | 32,712 | 34,092 | 32,712 | 34,092 |
Construction Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Beginning Allowance | 2,999 | 2,739 | 3,004 | 2,741 |
Charge-Offs | 0 | 0 | (16) | 0 |
Recoveries | 0 | 0 | 3 | 12 |
Provisions | 287 | 882 | 295 | 868 |
Ending Allowance | 3,286 | 3,621 | 3,286 | 3,621 |
Home Equity and Improvement [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Beginning Allowance | 4,003 | 4,988 | 4,221 | 4,739 |
Charge-Offs | (47) | (47) | (324) | (50) |
Recoveries | 95 | 23 | 208 | 217 |
Provisions | 159 | (276) | 105 | (218) |
Ending Allowance | $ 4,210 | $ 4,688 | $ 4,210 | $ 4,688 |
Loans - Schedule of Outstanding
Loans - Schedule of Outstanding Balance and Related Allowance on Loans (Details) - Loan Purchase [Member] - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Loan Balance | $ 22,558 | $ 32,337 |
ACL Balance | 1,158 | 2,040 |
Real Estate [Member] | ||
Loan Balance | 13,517 | 19,274 |
ACL Balance | 178 | 348 |
Real Estate [Member] | Residential [Member] | ||
Loan Balance | 11,890 | 13,396 |
ACL Balance | 151 | 197 |
Real Estate [Member] | Commercial Real Estate [Member] | ||
Loan Balance | 1,627 | 5,878 |
ACL Balance | 27 | 151 |
Other Loans [Member] | ||
Loan Balance | 9,041 | 13,063 |
ACL Balance | 980 | 1,692 |
Other Loans [Member] | Commercial [Member] | ||
Loan Balance | 6,163 | 9,167 |
ACL Balance | 871 | 1,531 |
Other Loans [Member] | Home Equity and Improvement [Member] | ||
Loan Balance | 2,581 | 3,405 |
ACL Balance | 104 | 154 |
Other Loans [Member] | Consumer Finance [Member] | ||
Loan Balance | 297 | 491 |
ACL Balance | $ 5 | $ 7 |
Mortgage Banking - Net revenues
Mortgage Banking - Net revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Mortgage Banking [Abstract] | ||||
Mortgage banking gain, net | $ 3,363 | $ 5,353 | $ 7,072 | $ 13,663 |
Mortgage loans servicing revenue (expense): | ||||
Mortgage loans servicing revenue | 1,861 | 1,861 | 5,602 | 5,666 |
Amortization of mortgage servicing rights | (1,350) | (1,822) | (4,128) | (6,119) |
Mortgage servicing rights valuation adjustments | 96 | 783 | 1,624 | 5,655 |
Mortgage loans servicing revenue (expense), Total | 607 | 822 | 3,098 | 5,202 |
Net revenue from sale and servicing of mortgage loans | $ 3,970 | $ 6,175 | $ 10,170 | $ 18,865 |
Mortgage Banking - Additional i
Mortgage Banking - Additional information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Mortgage Banking [Abstract] | |||||
Residential Mortgage Loans, Unpaid Balance | $ 2,940,000,000 | $ 2,940,000,000 | $ 2,940,000,000 | ||
Expenses (credit) relating to secondary market buy-back activity | $ 0 | $ 0 | $ 0 | $ 43,000 |
Mortgage Banking - Capitalized
Mortgage Banking - Capitalized Mortgage and Valuation Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Mortgage servicing assets: | ||||
Balance at beginning of period | $ 21,873 | $ 21,682 | $ 22,244 | $ 21,666 |
Loans sold, servicing retained | 1,392 | 2,103 | 3,799 | 6,416 |
Amortization | (1,350) | (1,822) | (4,128) | (6,119) |
Carrying value before valuation allowance at end of period | 21,915 | 21,963 | 21,915 | 21,963 |
Valuation allowance: | ||||
Balance at beginning of period | (1,180) | (3,641) | (2,707) | (8,513) |
Impairment recovery (charges) | 97 | 783 | 1,624 | 5,655 |
Balance at end of period | (1,083) | (2,858) | (1,083) | (2,858) |
Net carrying value of MSRs at end of period | 20,832 | 19,105 | 20,832 | 19,105 |
Fair value of MSRs at end of period | $ 27,633 | $ 20,189 | $ 27,633 | $ 20,189 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Lessee Lease Description [Line Items] | |||||
Option extensions | true | ||||
Operating lease, option to extend | five and ten year | ||||
Operating lease, weighted average remaining lease term | 13 years 5 months 8 days | 13 years 5 months 8 days | 14 years 2 months 15 days | ||
Operating lease, weighted average discount rate | 2.49% | 2.49% | 2.57% | ||
Operating Lease, cost | $ 540,000 | $ 560,000 | $ 1,600,000 | $ 1,800,000 | |
Operating Lease, right-of-use asset | $ 15,200,000 | $ 15,200,000 | $ 15,400,000 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets | Other assets | ||
Operating Lease, liability | $ 15,834,000 | $ 15,834,000 | $ 16,100,000 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities | Other liabilities | ||
Minimum [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Lessee, Operating Lease, renewal term | 5 years | 5 years | |||
Maximum [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Lessee, Operating Lease, renewal term | 10 years | 10 years |
Leases - Schedule of Undiscount
Leases - Schedule of Undiscounted Cash Flows Included in Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Remainder of 2022 | $ 2,523 | |
2023 | 2,087 | |
2024 | 1,693 | |
2025 | 1,470 | |
2026 | 1,308 | |
Thereafter | 11,853 | |
Total undiscounted minimum lease payment | 20,934 | |
Present value adjustment | (5,100) | |
Operating Lease, liability | $ 15,834 | $ 16,100 |
Deposits - Summary of Deposit B
Deposits - Summary of Deposit Balances (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Deposits [Abstract] | ||
Non-interest-bearing checking accounts | $ 1,826,511 | $ 1,724,772 |
Interest-bearing checking and money market accounts | 3,197,455 | 2,952,705 |
Savings deposits | 820,650 | 804,451 |
Retail certificates of deposit less than $250,000 | 550,275 | 636,477 |
Retail certificates of deposit greater than $250,000 | 267,733 | 163,646 |
Brokered deposits | 69,881 | |
Total | $ 6,732,505 | $ 6,282,051 |
Borrowings - Schedule of Bank L
Borrowings - Schedule of Bank Line of Credit Advance, Junior Subordinated Debentures and Subordinated Debentures (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total | $ 411,000 | $ 0 |
Junior subordinated debentures owed to unconsolidated subsidiary trusts | 36,083 | 36,083 |
Subordinated debentures | 48,988 | 48,893 |
First Defiance Statutory Trusts I [Member] | ||
Debt Instrument [Line Items] | ||
Junior subordinated debentures owed to unconsolidated subsidiary trusts | 20,619 | 20,619 |
First Defiance Statutory Trusts II [Member] | ||
Debt Instrument [Line Items] | ||
Junior subordinated debentures owed to unconsolidated subsidiary trusts | 15,464 | 15,464 |
Federal Home Loan Bank Advances [Member] | ||
Debt Instrument [Line Items] | ||
Overnight Advances | 411,000 | 0 |
Single maturity fixed rate advances | $ 0 | $ 0 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2020 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Advances from the Federal Home Loan Bank | $ 411,000 | $ 0 | |
Period for Interest Deferral on Trust Preferred Securities | 5 years | ||
Premier Statutory Trust II [Member] | |||
Debt Instrument [Line Items] | |||
Proceeds from Issuance of Subordinated Long-term Debt | $ 15,500 | ||
Proceeds from Issuance of Trust Preferred Securities | $ 15,000 | ||
Coupon Rate on Preferred Securities, Period End | 4.79% | 1.70% | |
Preferred Securities Variable Interest Rate | LIBOR rate plus 1.5% | ||
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Description | The Trust Preferred Securities and Subordinated Debentures mature on September 15, 2037, but can be redeemed at the Company’s option at any time. | ||
Premier Statutory Trust I [Member] | |||
Debt Instrument [Line Items] | |||
Proceeds from Issuance of Subordinated Long-term Debt | $ 20,600 | ||
Proceeds from Issuance of Trust Preferred Securities | $ 20,000 | ||
Coupon Rate on Preferred Securities, Period End | 3.21% | 1.58% | |
Preferred Securities Variable Interest Rate | LIBOR rate plus 1.38% | ||
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Description | The Trust Preferred Securities and Subordinated Debentures mature on December 15, 2035, but can be redeemed at the Company’s option at any time now. | ||
Subordinated Debt [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 50,000 | ||
Subordinated notes, due date | Sep. 30, 2030 | ||
Subordinated notes, fixed Interest rate | 4% | ||
Subordinated notes, fixed interest rate, period | 5 years | ||
Basis spread on variable rate | 3.885% | ||
Proceeds from Issuance of Subordinated Long-term Debt | $ 48,700 | ||
Federal Home Loan Bank Advances [Member] | |||
Debt Instrument [Line Items] | |||
Advances from the Federal Home Loan Bank | $ 411,000 | $ 0 |
Commitments, Guarantees and C_3
Commitments, Guarantees and Contingent Liabilities - Maximum obligation to extend credit (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments to make loans | $ 1,175,293 | $ 1,175,916 |
Unused lines of credit | 1,012,298 | 626,348 |
Standby letters of credit | 16,114 | 10,851 |
Total | $ 2,203,705 | $ 1,813,115 |
Commitments, Guarantees and C_4
Commitments, Guarantees and Contingent Liabilities - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Loan Commitments Maturities Range Description | 60 days or less |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) - (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Current: | ||||
Federal | $ 6,716 | $ 6,600 | $ 18,581 | $ 22,199 |
State and local | 162 | 162 | 517 | 490 |
Deferred | (168) | (638) | (774) | 1,708 |
Income Tax Expense (Benefit) | $ 6,710 | $ 6,124 | $ 18,324 | $ 24,397 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation - (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Tax expense (benefit) at statutory rate (21%) | $ 7,330 | $ 7,242 | $ 20,000 | $ 26,278 |
Increases (decreases) in taxes from: | ||||
State income tax - net of federal tax benefit | 129 | 128 | 409 | 387 |
Tax exempt interest income, net of TEFRA | (180) | (213) | (554) | (641) |
Bank owned life insurance | (207) | (199) | (622) | (625) |
Captive insurance | (125) | (90) | (326) | (282) |
Other | (237) | (744) | (583) | (720) |
Income Tax Expense (Benefit) | $ 6,710 | $ 6,124 | $ 18,324 | $ 24,397 |
Income Taxes - Schedule of Ef_2
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation - (Parenthetical) - (Details) | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Derivatives Fair Value [Line Items] | |||||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | $ 64,200 | $ 64,200 | $ 65,400 | ||
Notional Amount of Interest Rate Derivative Instruments Not Designated as Hedging Instruments | $ 311,000 | $ 311,000 | $ 305,000 | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets | Other Assets | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities | Other Liabilities | ||
Interest Rate Swaps [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Notional Amount of Interest Rate Derivative Instruments Not Designated as Hedging Instruments | $ 67,900 | $ 67,900 | $ 69,400 | ||
Fair value of derivative assets | 4,700 | 4,700 | 1,300 | ||
Fair value of derivative liabilities | 4,700 | 4,700 | 1,300 | ||
Noninterest income expense | (54,000) | $ (7,000) | (53,000) | $ 136,000 | |
Interest Rate Swaps [Member] | Cash Flow Hedge [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Notional amount of interest rate derivative instruments designated as cash flow hedge | 250,000 | 250,000 | |||
Other Assets [Member] | Interest Rate Swaps [Member] | Cash Flow Hedge [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Aggregate fair value of interest rate cash flow hedge | $ 41,500 | $ 41,500 | $ 854,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Carrying values (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Derivatives not designated as hedging instruments | ||
Mortgage Banking Derivatives Assets, Carrying Value | $ 15,237 | $ 2,336 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Amount of gains and losses recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivatives not designated as hedging instruments | ||||
Mortgage Banking Derivatives – Gain (Loss) | $ 13,386 | $ 2,122 | $ 12,901 | $ 2,446 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Summary of Interest Rate Swap Designated as Cash Flow Hedge (Details) - Designated as Cash Flow Hedge [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||
Notional amount | $ 250,000 | |
Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 250,000 | |
Weighted average fixed receive rates | 1.437% | 1.437% |
Weighted average remaining maturity (in years) | 8 years 4 months 24 days | 9 years 3 months 18 days |
Fair value | $ (41,458) | $ 854 |
Interest Rate Swaps [Member] | 1-Month LIBOR | ||
Derivative [Line Items] | ||
Weighted average variable 1-month LIBOR pay rates | 3.143% | 0.089% |
Other Comprehensive (Loss) In_3
Other Comprehensive (Loss) Income - Reclassification adjustments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Securities available for sale and transferred securities: Before Tax Amount | ||||||||
Change in net unrealized gain/loss during the period | $ (55,350) | $ (9,042) | $ (182,755) | $ (16,169) | ||||
Reclassification adjustment for net gains included in net income | (233) | (2,218) | ||||||
Total other comprehensive loss | (68,959) | (11,827) | (225,067) | (16,955) | ||||
Cash flow hedge derivatives | ||||||||
Change in net unrealized gain/loss during the period, Before tax | (13,343) | (1,692) | (43,294) | 2,742 | ||||
Reclassification adjustment for net gains included in net income, Before tax | (266) | (860) | 982 | (1,310) | ||||
Change in net unrealized gain/loss during the period, Tax (expense) benefit | 2,802 | 356 | 9,092 | (576) | ||||
Reclassification adjustment for net gains included in net income, Tax (expense) benefit | 56 | 180 | (206) | 275 | ||||
Total other comprehensive gain (loss) | 14,482 | 2,483 | 47,264 | 3,560 | ||||
Change in net unrealized gain/loss during the period, Net of tax | (10,541) | (1,336) | (34,202) | 2,166 | ||||
Reclassification adjustment for net gains included in net income, Net of tax | (210) | (680) | 776 | (1,035) | ||||
Total other comprehensive income (loss) | (54,477) | $ (51,257) | $ (72,069) | (9,344) | $ 11,455 | $ (15,506) | (177,803) | (13,395) |
Securities available for sale and transferred securities: Tax (Expense) Benefit | ||||||||
Change in net unrealized gain/loss during the period | 11,624 | 1,898 | 38,378 | 3,395 | ||||
Reclassification adjustment for net gains included in net income | 49 | 466 | ||||||
Total other comprehensive gain (loss) | 14,482 | 2,483 | 47,264 | 3,560 | ||||
Securities available for sale and transferred securities: | ||||||||
Change in net unrealized gain/loss during the period | (43,726) | (7,144) | (144,377) | (12,774) | ||||
Reclassification adjustment for net gains included in net income | (184) | (1,752) | ||||||
Total other comprehensive income (loss) | $ (54,477) | $ (51,257) | $ (72,069) | $ (9,344) | $ 11,455 | $ (15,506) | $ (177,803) | $ (13,395) |
Other Comprehensive (Loss) In_4
Other Comprehensive (Loss) Income - Activity in AOCI, net of tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Securities Available For Sale, Beginning balance | $ (4,023) | $ 15,083 | ||
Securities Available For Sale, Other comprehensive income (loss) before reclassifications | (144,377) | (12,774) | ||
Securities Available For Sale, Amounts reclassified from accumulated other comprehensive income | 0 | (1,752) | ||
Securities Available For Sale, Net other comprehensive income during period | (144,377) | (14,526) | ||
Securities Available For Sale, Ending balance | $ (148,400) | $ 557 | (148,400) | 557 |
Post-retirement Benefit, Beginning balance | (79) | (79) | ||
Post-retirement Benefit, Ending balance | (79) | (79) | (79) | (79) |
Cash Flow hedge Derivatives, Beginning balance | 674 | |||
Cash Flow Hedge Derivatives, Other comprehensive income (loss) before reclassifications | (34,202) | 2,166 | ||
Cash Flow Hedge Derivatives, Amounts reclassified from accumulated other comprehensive income | (210) | (680) | 776 | (1,035) |
Net of tax amount | (10,751) | (2,016) | (33,426) | 1,131 |
Cash Flow hedge Derivatives, Ending balance | (32,752) | 1,131 | (32,752) | 1,131 |
Accumulated Other Comprehensive Income (Loss), Beginning balance | (3,428) | 15,004 | ||
Accumulated Other Comprehensive Income (Loss), Other comprehensive income (loss) before reclassifications | (178,579) | (10,608) | ||
Accumulated Other Comprehensive Income (Loss), Amounts reclassified from accumulated other comprehensive income | 776 | (2,787) | ||
Accumulated Other Comprehensive Income (loss), Net other comprehensive income during period | (177,803) | (13,395) | ||
Accumulated Other Comprehensive Income (Loss), Ending balance | $ (181,231) | $ 1,609 | $ (181,231) | $ 1,609 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Goodwill | $ 317,948 | $ 317,948 |
Business Combinations - Schedul
Business Combinations - Schedule of Business Acquisitions, by Acquisition (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: | ||
Goodwill | $ 317,948 | $ 317,948 |