Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | May 03, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 000-22507 | |
Entity Registrant Name | THE FIRST BANCSHARES, INC. | |
Entity Incorporation, State or Country Code | MS | |
Entity Tax Identification Number | 64-0862173 | |
Entity Address, Address Line One | 6480 U.S. Highway 98 West, Suite A | |
Entity Address, City or Town | Hattiesburg | |
Entity Address, State or Province | MS | |
Entity Address, Postal Zip Code | 39402 | |
City Area Code | 601 | |
Local Phone Number | 268-8998 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | FBMS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 31,051,884 | |
Entity Central Index Key | 0000947559 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 106,586 | $ 67,176 |
Interest-bearing deposits with banks | 226,905 | 78,139 |
Total cash and cash equivalents | 333,491 | 145,315 |
Securities available-for-sale, at fair value (amortized cost: $1,387,394 - 2023; $1,418,337 - 2022; allowance for credit losses: $0) | 1,249,791 | 1,257,101 |
Securities held to maturity, net of allowance for credit losses of $0 (fair value: $639,518 - 2023; $642,097 - 2022) | 678,161 | 691,484 |
Other securities | 34,423 | 33,944 |
Total securities | 1,962,375 | 1,982,529 |
Loans held for sale | 4,073 | 4,443 |
Loans held for investment | 4,969,776 | 3,774,157 |
Allowance for credit losses | (52,450) | (38,917) |
Net loans held for investment | 4,917,326 | 3,735,240 |
Interest receivable | 29,983 | 27,723 |
Premises and equipment | 178,410 | 143,518 |
Operating lease right-of-use assets | 6,464 | 7,620 |
Finance lease right-of-use assets | 1,814 | 1,930 |
Cash surrender value of bank-owned life insurance | 131,945 | 95,571 |
Goodwill | 271,804 | 180,254 |
Other real estate owned | 5,066 | 4,832 |
Other assets | 174,565 | 132,742 |
Total assets | 8,017,316 | 6,461,717 |
Deposits: | ||
Noninterest-bearing | 2,082,441 | 1,630,203 |
Interest-bearing | 4,585,515 | 3,864,201 |
Total deposits | 6,667,956 | 5,494,404 |
Interest payable | 4,087 | 3,324 |
Borrowed funds | 250,000 | 130,100 |
Subordinated debentures | 154,127 | 145,027 |
Operating lease liabilities | 6,624 | 7,810 |
Finance lease liabilities | 1,874 | 1,918 |
Allowance for credit losses on off-balance sheet credit exposures | 1,825 | 1,325 |
Other liabilities | 34,396 | 31,146 |
Total liabilities | 7,120,889 | 5,815,054 |
Shareholders’ equity: | ||
Common stock, par value $1 per share, 40,000,000 shares authorized; 32,304,153 shares issued at March 31, 2023, and 25,275,369 shares issued at December 31, 2022, respectively | 32,304 | 25,275 |
Additional paid-in capital | 773,612 | 558,833 |
Retained earnings | 262,396 | 252,623 |
Accumulated other comprehensive (loss) income | (130,774) | (148,957) |
Treasury stock, at cost, 1,249,607 shares at March 31, 2023 and at December 31, 2022 | (41,111) | (41,111) |
Total shareholders’ equity | 896,427 | 646,663 |
Total liabilities and shareholders’ equity | $ 8,017,316 | $ 6,461,717 |
Treasury stock (in shares) | 1,249,607 | 1,249,607 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Securities available-for-sale, amortized cost | $ 1,387,394,000 | $ 1,418,337,000 |
Credit loss recognized | 0 | 0 |
Securities held-to-maturity, allowance for credit losses | 0 | 0 |
Securities held-to-maturity | $ 639,518,000 | $ 642,097,000 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 32,304,153 | 25,275,369 |
Treasury stock (in shares) | 1,249,607 | 1,249,607 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest and dividend income: | ||
Interest and fees on loans | $ 67,733 | $ 34,154 |
Interest and dividends on securities: | ||
Taxable interest and dividends | 8,759 | 6,152 |
Tax exempt interest | 2,948 | 2,422 |
Interest on federal funds sold and interest-bearing deposits in other banks | 898 | 13 |
Total interest income | 80,338 | 42,741 |
Interest expense: | ||
Interest on deposits | 12,277 | 2,283 |
Interest on borrowed funds | 3,135 | 1,819 |
Total interest expense | 15,412 | 4,102 |
Net interest income | 64,926 | 38,639 |
Provision for credit losses, LHFI | 10,500 | 0 |
Provision for credit losses, OBSC exposures | 500 | 0 |
Net interest income after provision for credit losses | 53,926 | 38,639 |
Non-interest income: | ||
Service charges on deposit accounts | 3,657 | 2,040 |
(Loss) gain on securities | 0 | (3) |
Government awards/grants | 0 | 702 |
BOLI death proceeds | 0 | 1,630 |
(Loss) gain on sale of premises and equipment | 662 | 2 |
Other | 8,293 | 6,786 |
Total non-interest income | 12,612 | 11,157 |
Non-interest expense: | ||
Salaries and employee benefits | 23,572 | 16,799 |
Occupancy and equipment | 5,296 | 3,876 |
Acquisition expense/charter conversion | 3,793 | 408 |
Other | 13,009 | 7,507 |
Total non-interest expense | 45,670 | 28,590 |
Income before income taxes | 20,868 | 21,206 |
Income tax expense | 4,597 | 4,377 |
Net income available to common stockholders, basic | 16,271 | 16,829 |
Net income available to common stockholders, diluted | $ 16,271 | $ 16,829 |
Earnings per share: | ||
Basic earnings per share (in dollars per share) | $ 0.52 | $ 0.81 |
Diluted earnings per share (in dollars per share) | $ 0.52 | $ 0.81 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 16,271 | $ 16,829 |
Unrealized gains/losses on securities: | ||
Unrealized holding (losses) gains arising during the period on available-for-sale securities | 24,249 | (102,849) |
Reclassification adjustment for (accretion) amortization of unrealized holdings gain/(loss) included in accumulated other comprehensive income from the transfer of securities available-for-sale to held-to-maturity | 92 | 0 |
Reclassification adjustment for losses (gains) included in net income | 0 | 3 |
Unrealized holding (losses) gains arising during the period on available-for-sale securities | 24,341 | (102,846) |
Income tax (expense) benefit | (6,158) | 26,021 |
Other comprehensive income (loss) | 18,183 | (76,825) |
Comprehensive income (loss) | $ 34,454 | $ (59,996) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | HSBI | Common Stock | Common Stock HSBI | Additional Paid-in Capital | Additional Paid-in Capital HSBI | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2021 | 21,668,644 | ||||||||
Beginning balance at Dec. 31, 2021 | $ 676,172 | $ 21,669 | $ 459,228 | $ 206,228 | $ 7,978 | $ (18,931) | |||
Treasury stock, beginning balance (in shares) at Dec. 31, 2021 | (649,607) | ||||||||
Net income | 16,829 | 16,829 | |||||||
Common stock repurchased (in shares) | (600,000) | ||||||||
Common stock repurchased | (22,180) | $ (22,180) | |||||||
Other comprehensive loss | (76,825) | (76,825) | |||||||
Dividends on common stock | (3,468) | (3,468) | |||||||
Stock Issued During Period, Value, Acquisitions | 0 | ||||||||
Issuance of restricted stock grants (in shares) | 82,123 | ||||||||
Issuance of restricted stock grants | 0 | $ 82 | (82) | ||||||
Restricted stock grants forfeited (in shares) | (1,000) | ||||||||
Restricted stock grants forfeited | 0 | $ (1) | 1 | ||||||
Repurchase of restricted stock for payment of taxes (in shares) | (15,330) | ||||||||
Repurchase of restricted stock for payment of taxes | (554) | $ (16) | (538) | ||||||
Compensation expense | 466 | 466 | |||||||
Ending balance at Mar. 31, 2022 | 590,440 | $ 21,734 | 459,075 | 219,589 | (68,847) | $ (41,111) | |||
Ending balance (in shares) at Mar. 31, 2022 | 21,734,437 | ||||||||
Treasury stock, ending balance (in shares) at Mar. 31, 2022 | (1,249,607) | ||||||||
Beginning balance (in shares) at Dec. 31, 2022 | 25,275,369 | ||||||||
Beginning balance at Dec. 31, 2022 | $ 646,663 | $ 25,275 | 558,833 | 252,623 | (148,957) | $ (41,111) | |||
Treasury stock, beginning balance (in shares) at Dec. 31, 2022 | (1,249,607) | (1,249,607) | |||||||
Net income | $ 16,271 | 16,271 | |||||||
Other comprehensive loss | 18,183 | 18,183 | |||||||
Dividends on common stock | (6,498) | (6,498) | |||||||
Issuance of common shares for HSBI acquisition (in shares) | 6,920,422 | ||||||||
Stock Issued During Period, Value, Acquisitions | 6,920,422 | $ 221,522 | $ 6,920 | $ 214,602 | |||||
Issuance of restricted stock grants (in shares) | 118,689 | ||||||||
Issuance of restricted stock grants | 0 | $ 119 | (119) | ||||||
Restricted stock grants forfeited (in shares) | (500) | ||||||||
Restricted stock grants forfeited | 0 | $ (1) | 1 | ||||||
Repurchase of restricted stock for payment of taxes (in shares) | (9,827) | ||||||||
Repurchase of restricted stock for payment of taxes | (307) | $ (9) | (298) | ||||||
Compensation expense | 593 | 593 | |||||||
Ending balance at Mar. 31, 2023 | $ 896,427 | $ 32,304 | $ 773,612 | $ 262,396 | $ (130,774) | $ (41,111) | |||
Ending balance (in shares) at Mar. 31, 2023 | 32,304,153 | ||||||||
Treasury stock, ending balance (in shares) at Mar. 31, 2023 | (1,249,607) | (1,249,607) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared | $ 0.21 | $ 0.17 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 16,271 | $ 16,829 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and accretion | 3,336 | 3,569 |
Provision for credit loss | 11,000 | 0 |
Loss (gain) on sale or writedown of ORE | 66 | (46) |
Securities loss (gain) | 0 | 3 |
Loss (gain) on disposal of premises and equipment | (662) | (2) |
Restricted stock expense | 593 | 466 |
Increase in cash value of life insurance | (795) | (574) |
Residential loans originated and held for sale | (21,900) | (38,783) |
Proceeds from sale of residential loans held for sale | 22,270 | 38,248 |
Changes in: | ||
Interest receivable | 2,089 | 22 |
Interest payable | 763 | (405) |
Operating lease liability | (1,186) | (316) |
Other, net | (27,191) | 4,093 |
Net cash provided by operating activities | 4,654 | 23,104 |
Securities available-for-sale | ||
Sales | 170,625 | 0 |
Maturities, prepayments and calls | 31,173 | 55,868 |
Held-to-maturity securities: | ||
Maturities, prepayments and calls | 14,044 | 597 |
Purchases | 0 | (372,629) |
Purchases of other securities | (7,631) | 0 |
Proceeds from other securities | 7,979 | 0 |
Net (increase) decrease in loans | (33,405) | (9,510) |
Net changes in premises and equipment | (1,066) | (1,183) |
Proceeds from sale of other real estate owned | 456 | 271 |
Proceeds from the sale of land | 731 | 0 |
Bank-owned life insurance – death proceeds | 0 | 1,630 |
Cash received in excess of cash paid for acquisitions | 106,973 | 0 |
Net cash provided by (used in) investing activities | 289,879 | (324,956) |
Cash flows from financing activities: | ||
(Decrease) increase in deposits | (219,484) | 210,953 |
Net change in borrowed funds | 119,900 | 0 |
Principal payments on finance lease liabilities | (44) | (44) |
Dividends paid on common stock | (6,422) | (3,423) |
Cash paid to repurchase common stock | 0 | (22,180) |
Repurchase of restricted stock for payment of taxes | (307) | (554) |
Net cash provided by (used in) financing activities | (106,357) | 184,752 |
Net change in cash and cash equivalents | 188,176 | (117,100) |
Beginning cash and cash equivalents | 145,315 | 919,713 |
Ending cash and cash equivalents | 333,491 | 802,613 |
Supplemental disclosures: | ||
Loans transferred to other real estate | 0 | 493 |
Issuance of restricted stock grants | 119 | 82 |
Dividends on restricted stock grants | 76 | 45 |
Issuance of common shares for HSBI acquisition | 6,920,422 | 0 |
Lease liabilities arising from obtaining right-of-use assets | 0 | 6 |
Lease liabilities arising from HSBI acquisition | $ 184 | $ 0 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial statements and the instructions to Form 10-Q of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2023, are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. For further information, please refer to the consolidated financial statements and footnotes thereto included in the Company’s Form 10-K for the fiscal year ended December 31, 2022. |
SUMMARY OF ORGANIZATION
SUMMARY OF ORGANIZATION | 3 Months Ended |
Mar. 31, 2023 | |
SUMMARY OF ORGANIZATION | |
SUMMARY OF ORGANIZATION | SUMMARY OF ORGANIZATION The First Bancshares, Inc., Hattiesburg, Mississippi (the “Company”), was incorporated June 23, 1995, under the laws of the State of Mississippi for the purpose of operating as a bank holding company. The Company’s primary asset is its interest in its wholly-owned subsidiary, The First Bank (the “Bank” or “The First”). At March 31, 2023, the Company had approximately $8.017 billion in assets, $4.917 billion in net loans held for investment (“LHFI”), $6.668 billion in deposits, and $896.4 million in shareholders' equity. For the three months ended March 31, 2023, the Company reported net income of $16.3 million. |
ACCOUNTING STANDARDS
ACCOUNTING STANDARDS | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
ACCOUNTING STANDARDS | ACCOUNTING STANDARDS Effect of Recently Adopted Accounting Standards In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (ASC 848): “Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This ASU provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference London Interbank Offer Rate ("LIBOR") or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The Company adopted ASU 2020-04 effective January 1, 2023. Adoption of ASU 2020-04 did not have a material impact on the Company's consolidated financial statements. In October 2021, the FASB issued ASU No. 2021-08, Business Combination (Topic 805): “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” This ASU requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendment improves comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. The Company adopted ASU 2021-08 effective January 1, 2023. Adoption of ASU 2022-02 did not have a material impact on the Company's consolidated financial statements. In November 2021, FASB issued ASU No. 2021-10, Government Assistance (Topic 832): “Disclosures by Business Entities about Government Assistance.” These amendments are expected to increase transparency in financial reporting by requiring business entities to disclose information about certain types of government assistance they receive. The Company adopted ASU 2021-10 effective January 1, 2022. Adoption of ASU 2021-10 did not have a material impact to the Company’s consolidated financial statements. In March 2022, FASB issued ASU No. 2022-02, " Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” These amendments eliminate the TDR recognition and measurement guidance and instead require that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan. The amendments also enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. For public business entities, these amendments require that an entity disclose current period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. Gross write-off information must be included in the vintage disclosures required for public business entities in accordance with paragraph 326-20-50-6, which requires that an entity disclose the amortized cost basis of financing receivables by credit quality indicator and class of financing receivable by year of origination. The Company adopted ASU 2022-02 effective January 1, 2023. Adoption of ASU 2022-02 did not have a material impact on the Company's consolidated financial statements. New Accounting Standards That Have Not Yet Been Adopted In March 2023, FASB issued ASU No. 2023-01, Leases (Topic 842) - "Common Control Arrangements." This ASU requires entities to determine whether a related party arrangement between entities under common control is a lease. If the arrangement is determined to be a lease, an entity must classify and account for the lease on the same basis as an arrangement with a related party. The ASU requires all entities to amortize leasehold improvements associated with common control leases over the useful life to the common control group. This guidance is effective for the Company January 1, 2024, and is not expected to have a material impact on the Company's consolidated financial statements. In March 2023, FASB issued ASU No. 2023-02, Investments - Equity Method and Joint Venture (Topic 323): "Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method." |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 3 Months Ended |
Mar. 31, 2023 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS Acquisitions Heritage Southeast Bank On January 1, 2023, the Company completed its acquisition of Heritage Southeast Bancorporation, Inc. ("HSBI"), pursuant to an Agreement and Plan of Merger dated July 27, 2022, by and between the Company and HSBI (the "HSBI Merger Agreement"). Upon the completion of the merger of HSBI with and into the Company, Heritage Southeast Bank, HSBI's wholly-owned subsidiary, was merged with and into The First Bank. Under the terms of the HSBI Merger Agreement, each share of HSBI common stock was converted into the right to receive 0.965 of a share of Company common stock. The Company paid a total consideration of $221.5 million to the former HSBI shareholders as consideration in the acquisition, which included approximately 6,920,909 shares of the Company's common stock, and $16 thousand in cash in lieu of fractional shares. The HSBI acquisition provides the opportunity for the Company to expand its operations in Georgia and the Florida panhandle. In connection with the acquisition of HSBI, the Company recorded approximately $91.4 million of goodwill, of which $3.2 million funded the ACL for estimated losses on the acquired PCD loans, and $43.7 million core deposit intangible. Goodwill is not deductible for income taxes. The core deposit intangible will be amortized to expense over 10 years. Expenses associated with the HSBI acquisition were $1.0 million for the three months period ended March 31, 2023. These costs included charges associated with legal and consulting expenses, which have been expensed as incurred. The assets acquired and liabilities assumed, and consideration paid in the acquisition were recorded at their estimated fair values based on management’s best estimates using information available at the date of the acquisition and are subject to adjustment for up to one year after the closing date of the acquisition. While the fair values are not expected to be materially different from the estimates, accounting guidance provides that an acquirer must recognize adjustments to provisional amounts that are identified during the measurement period, which will run through January 1, 2024, in respect of the acquisition, in the measurement period in which the adjustment amounts are determined. The acquirer must record in the financial statements, the effect on earnings of changes in depreciation, amortization or other income effects, if any, as a result of changes to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The items most susceptible to adjustment are the credit fair value adjustments on loans, core deposit intangible and the deferred income tax assets resulting from the acquisition. The following table summarizes the provisional fair values of the assets acquired and liabilities assumed, and the goodwill generated from the transaction ($ in thousands): Purchase price: Cash and stock $ 221,538 Total purchase price 221,538 Identifiable assets: Cash $ 106,973 Investments 172,775 Loans 1,155,712 Core deposit intangible 43,739 Personal and real property 35,963 Other real estate owned 857 Bank owned life insurance 35,579 Deferred taxes 6,761 Interest receivable 4,349 Other assets 3,103 Total assets 1,565,811 Liabilities and equity: Deposits 1,392,432 Trust Preferred 9,015 Other liabilities 34,271 Total liabilities 1,435,718 Net assets acquired 130,093 Goodwill $ 91,445 Beach Bancorp, Inc. On August 1, 2022, the Company completed its acquisition of Beach Bancorp, Inc. ("BBI"), pursuant to an Agreement and Plan of Merger dated April 26, 2022, by and between the Company and BBI (the "BBI Merger Agreement"). Upon the completion of the merger of BBI with and into the Company, Beach Bank, BBI's wholly-owned subsidiary, was merged with and into The First Bank. Under the terms of the BBI Merger Agreement, each share of BBI common stock and each share of BBI preferred stock was converted into the right to receive 0.1711 of a share of Company common stock (the "BBI Exchange Ratio"), and all stock options awarded under the BBI equity plans were converted automatically into an option to purchase shares of Company common stock on the same terms and conditions as applicable to each such BBI option as in effect immediately prior to the effective time, with the number of shares underlying each such option and the applicable exercise price adjusted based on the BBI Exchange Ratio. The BBI merger provides the opportunity for the Company to expand its operations in the Florida panhandle and enter the Tampa market. The Company paid consideration of $101.5 million to the former BBI shareholders including 3,498,936 shares of the Company's common stock and $1 thousand in cash in lieu of fractional shares, and also assumed options entitling the owners thereof to purchase an additional 310,427 shares of the Company's common stock. In connection with the acquisition of BBI, the Company recorded approximately $21.8 million of goodwill, of which $1.3 million funded the ACL for estimated losses on the acquired PCD loans, and $9.8 million core deposit intangible. Goodwill is not deductible for income taxes. The core deposit intangible will be amortized to expense over 10 years. Expenses associated with the BBI acquisition were $820 thousand for the three months period ended March 31, 2023. These costs included charges associated with legal and consulting expenses, which have been expensed as incurred. The assets acquired and liabilities assumed, and consideration paid in the acquisition were recorded at their estimated fair values based on management’s best estimates using information available at the date of the acquisition and are subject to adjustment for up to one year after the closing date of the acquisition. While the fair values are not expected to be materially different from the estimates, accounting guidance provides that an acquirer must recognize adjustments to provisional amounts that are identified during the measurement period, which will run through August 1, 2023, in respect of the acquisition, in the measurement period in which the adjustment amounts are determined. The acquirer must record in the financial statements, the effect on earnings of changes in depreciation, amortization or other income effects, if any, as a result of changes to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The items most susceptible to adjustment are the credit fair value adjustments on loans, core deposit intangible and the deferred income tax assets resulting from the acquisition. The following table summarizes the provisional fair values of the assets acquired and liabilities assumed, and the goodwill generated from the transaction ($ in thousands): Purchase price: Cash and stock $ 101,470 Total purchase price 101,470 Identifiable assets: Cash $ 23,939 Investments 22,907 Loans 482,903 Other real estate 8,797 Bank owned life insurance 10,092 Core deposit intangible 9,791 Personal and real property 13,825 Deferred tax asset 28,105 Other assets 9,649 Total assets 610,008 Liabilities and equity: Deposits 490,588 Borrowings 25,000 Other liabilities 14,772 Total liabilities 530,360 Net assets acquired 79,648 Goodwill $ 21,822 Supplemental Pro Forma Information The following table presents certain supplemental pro forma information, for illustrative purposes only, for the three months ended March 31, 2023 and 2022 as if the BBI and HSBI acquisitions had occurred on January 1, 2022. The pro forma financial information is not necessarily indicative of the results of operations had the acquisitions been effective as of this date. ($ in thousands) (unaudited) (unaudited) Three Months Ended Three Months Ended Net interest income $ 64,926 $ 42,722 Non-interest income 12,612 16,865 Total revenue 77,538 59,587 Income before income taxes 24,661 27,532 Supplemental pro-forma earnings were adjusted to exclude acquisition costs incurred. The Company’s operating results for the three months ended March 31, 2023, include the operating results of the acquired assets and assumed liabilities of the above mentioned acquisitions subsequent to the acquisition date. |
EARNINGS APPLICABLE TO COMMON S
EARNINGS APPLICABLE TO COMMON SHAREHOLDERS | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS APPLICABLE TO COMMON SHAREHOLDERS | EARNINGS APPLICABLE TO COMMON SHAREHOLDERS Basic per share data is calculated based on the weighted-average number of common shares outstanding during the reporting period. Diluted per share data includes any dilution from potential common stock outstanding, such as restricted stock grants. There were no anti-dilutive common stock equivalents excluded in the calculations. The following tables disclose the reconciliation of the numerators and denominators of the basic and diluted computations applicable to common shareholders ($ in thousands, except per share amount): Three Months Ended Three Months Ended Net Income Shares Per Net Income Shares Per Basic earnings per share $ 16,271 31,309,458 $ 0.52 $ 16,829 20,697,946 $ 0.81 Effect of dilutive shares: Restricted stock grants 231,755 149,051 Diluted earnings per share $ 16,271 31,541,213 $ 0.52 $ 16,829 20,846,997 $ 0.81 |
COMPREHENSIVE INCOME
COMPREHENSIVE INCOME | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
COMPREHENSIVE INCOME | COMPREHENSIVE INCOMEAs presented in the Consolidated Statements of Comprehensive Income (Loss), comprehensive income includes net income and other comprehensive income. The Company’s sources of other comprehensive income are unrealized gains and losses on available-for-sale securities, which are also recognized as separate components of equity. |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 3 Months Ended |
Mar. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. At March 31, 2023, and December 31, 2022, these financial instruments consisted of the following: ($ in thousands) March 31, 2023 December 31, 2022 Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 39,123 $ 29,041 $ 43,227 $ 15,758 Unused lines of credit 247,995 360,488 243,043 404,025 Standby letters of credit 9,299 8,909 4,260 9,909 Commitments to make loans are generally made for periods of 90 days or less. The fixed rate loan commitments have interest rates ranging from 1.0% to 18.0% and maturities ranging from approximately 1 year to 30 years. ALLOWANCE FOR CREDIT LOSSES (“ACL”) ON OFF BALANCE SHEET CREDIT (“OBSC”) Exposures The Company maintains a separate ACL on OBSC exposures, including unfunded commitments and letters of credit, which is included on the accompanying consolidated balance sheet as of March 31, 2023 and December 31, 2022. The ACL on OBSC exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Changes in the ACL on OBSC exposures were as follows for the presented periods: ($ in thousands) Three Months Ended March 31, 2023 2022 Balance at beginning of period $ 1,325 $ 1,070 Credit loss expense related to OBSC exposures 500 — Balance at end of period $ 1,825 $ 1,070 Adjustments to the ACL on OBSC exposures are recorded to provision for credit losses related to OBSC exposures. The Company recorded $500 thousand provision and no provision for the three months period ended March 31, 2023 and 2022, respectively. The increase in the ACL on OBSC exposures for the three months ended March 31, 2023 was due to the day one provision for unfunded commitments related to the HSBI acquisition. No credit loss estimate is reported for OBSC exposures that are unconditionally cancellable by the Company or for undrawn amounts under such arrangements that may be drawn prior to the cancellation on the arrangement. |
FAIR VALUE DISCLOSURES AND REPO
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS | FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the assets or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 : Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 : Significant observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data. Level 3 : Significant unobservable inputs that reflect a company’s own assumptions about the factors that market participants would likely consider in pricing an asset or liability. The following methods and assumptions were used by the Company to estimate its financial instrument fair values disclosed at March 31, 2023 and December 31, 2022: • Investment Securities : The fair value for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities that are not actively traded, valuing 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). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). • Loans Held for Sale - Loans held for sale are carried at the lower of cost or fair value in the aggregate as determined by the outstanding commitments from investors. As, such we classify those loans subjected to nonrecurring fair value adjustments as Level 2 of the fair value hierarchy. • Collateral Dependent Loans : Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment. If the impaired loan is identified as collateral dependent, then the fair value method of measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by independent appraisers to adjust for differences between the comparable sales and income data available for similar loans and collateral underlying such loans. Such adjustments, if any, result in a Level 3 classification of the inputs for determining fair value. The Company generally adjusts the appraisal down by approximately 10 percent to account for cost associated with litigation and collection. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment. • Other Real Estate Owned : Other real estate owned consists of properties obtained through foreclosure. The adjustment at the time of foreclosure is recorded through the allowance for credit losses. Fair value of other real estate owned is based on current independent appraisals of the collateral less costs to sell when acquired, establishing a new cost basis. These assets are subsequently 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 are updated no less frequently than annually. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach with data from comparable properties. 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, if any, result in a Level 3 classification of the inputs for determining fair value. In the determination of fair value subsequent to foreclosure, management also considers other factors or recent developments, such as changes in market conditions from the time of valuation and anticipated sales values considering plans for disposition, which could result in an adjustment to lower the collateral value estimates indicated in the appraisals. The Company generally adjusts the appraisal down by approximately 10 percent to account for carrying costs. Periodic revaluations are classified as Level 3 in the fair value hierarchy since assumptions are used that may not be observable in the market. Due to the subjective nature of establishing the fair value when the asset is acquired, the actual fair value of the other real estate owned or foreclosed asset could differ from the original estimate. If it is determined the fair value declines subsequent to foreclosure, a valuation allowance is recorded through other non-interest income. Operating costs associated with the assets after acquisition are also recorded as non-interest expense. Gains and losses on the disposition of other real estate owned and foreclosed assets are netted and recorded in other non-interest income. Other real estate owned is classified within Level 3 of the fair value hierarchy. • Interest Rate Swaps: The Company offers interest rate swaps to certain commercial loan customers to allow them to hedge the risk of rising interest rates on their variable rate loans. The Company originates a variable rate loan and enters into a variable to fixed interest rate swap with the customer. The Company also enters into an offsetting swap with a correspondent bank. These back-to-back agreements are intended to offset each other and allow the Company to originate a variable rate loan, while providing the contract or fixed interest payments for the customer. Due to the observable nature of the inputs used in deriving the fair value of these derivative contracts, the valuation of interest rates swaps is classified within Level 2 of the fair value hierarchy. Estimated fair values for the Company’s financial instruments are as follows, as of the dates noted: March 31, 2023 Carrying Estimated Fair Value Measurements ($ in thousands) Quoted Prices Significant Significant Financial Instruments: Assets: Cash and cash equivalents $ 333,491 $ 333,491 $ 333,491 $ — $ — Securities available-for-sale 1,249,791 1,249,791 125,773 1,108,360 15,658 Securities held-to-maturity 678,161 639,518 — 639,518 — Loans held for sale 4,073 4,073 — 4,073 — Loans, net 4,917,326 4,793,811 — — 4,793,811 Accrued interest receivable 29,983 29,983 — 8,408 21,575 Interest rate swaps 10,577 10,577 — 10,577 — Liabilities: Noninterest-bearing deposits $ 2,082,441 $ 2,082,441 $ — $ 2,082,441 $ — Interest-bearing deposits 4,585,515 4,270,490 — 4,270,490 — Subordinated debentures 154,127 134,532 — — 134,532 FHLB and other borrowings 250,000 250,000 — 250,000 — Accrued interest payable 4,087 4,087 — 4,087 — Interest rate swaps 10,577 10,577 — 10,577 — December 31, 2022 Carrying Estimated Fair Value Measurements ($ in thousands) Quoted Significant Significant Financial Instruments: Assets: Cash and cash equivalents $ 145,315 $ 145,315 $ 145,315 $ — $ — Securities available-for-sale 1,257,101 1,257,101 123,854 1,118,099 15,148 Securities held-to-maturity 691,484 642,097 — 642,097 — Loans held for sale 4,443 4,443 — 4,443 — Loans, net 3,735,240 3,681,313 — — 3,681,313 Accrued interest receivable 27,723 27,723 — 9,757 17,966 Interest rate swaps 12,825 12,825 — 12,825 — Liabilities: Non-interest-bearing deposits $ 1,630,203 $ 1,630,203 $ — $ 1,630,203 $ — Interest-bearing deposits 3,864,201 3,505,990 — 3,505,990 — Subordinated debentures 145,027 133,816 — — 133,816 FHLB and other borrowings 130,100 130,100 — 130,100 — Accrued interest payable 3,324 3,324 — 3,324 — Interest rate swaps 12,825 12,825 — 12,825 — Assets measured at fair value on a recurring basis are summarized below: March 31, 2023 ($ in thousands) Fair Value Fair Value Measurements Using Quoted Prices in Significant Other Significant Assets: Available-for-sale U.S. Treasury $ 125,773 $ 125,773 $ — $ — Obligations of U.S. Government agencies and sponsored entities 143,217 — 143,217 — Municipal securities 460,184 — 444,557 15,627 Mortgage-backed securities 481,553 — 481,553 — Corporate obligations 39,064 — 39,033 31 Total available-for-sale $ 1,249,791 $ 125,773 $ 1,108,360 $ 15,658 Loans held for sale $ 4,073 $ — $ 4,073 $ — Interest rate swaps $ 10,577 $ — $ 10,577 $ — Liabilities Interest rate swaps $ 10,577 $ — $ 10,577 $ — December 31, 2022 ($ in thousands) Fair Value Fair Value Measurements Using Quoted Prices in Significant Other Significant Available-for-sale U.S. Treasury $ 123,854 $ 123,854 $ — $ — Obligations of U.S. Government agencies and sponsored entities 144,369 — 144,369 — Municipal securities 457,857 — 442,740 15,117 Mortgage-backed securities 490,139 — 490,139 — Corporate obligations 40,882 — 40,851 31 Total available-for-sale $ 1,257,101 $ 123,854 $ 1,118,099 $ 15,148 Loans held for sale $ 4,443 $ — $ 4,443 $ — Interest rate swaps $ 12,825 $ — $ 12,825 $ — Liabilities: Interest rate swaps $ 12,825 $ — $ 12,825 $ — The following is a reconciliation of activity for assets measured at fair value based on significant unobservable inputs (Level 3) information. Bank-Issued Trust ($ in thousands) 2023 2022 Balance, January 1 $ 31 $ 235 Paydowns — (64) Unrealized gain included in comprehensive income — 55 Balance at March 31 $ 31 $ 226 Municipal Securities ($ in thousands) 2023 2022 Balance, January 1 $ 15,117 $ 20,126 Purchases — 4,209 Maturities, calls and paydowns (216) (4,474) Unrealized gain (loss) included in comprehensive income 726 (496) Balance at March 31 $ 15,627 $ 19,365 The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis at March 31, 2023 and December 31, 2022. The following tables present quantitative information about recurring Level 3 fair value measurements ($ in thousands): Trust Preferred Securities Fair Value Valuation Technique Significant Unobservable Range of Inputs March 31, 2023 $ 31 Discounted cash flow Probability of default 7.10% - 7.12% December 31, 2022 $ 31 Discounted cash flow Probability of default 6.98% - 7.19% Municipal Securities Fair Value Valuation Technique Significant Range of Inputs March 31, 2023 $ 15,627 Discounted cash flow Discount Rate 2.60% - 4.61% December 31, 2022 $ 15,117 Discounted cash flow Discount Rate 3.00% - 4.00% The following table presents the fair value measurement of assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which the fair value measurements were classified at March 31, 2023 and December 31, 2022. March 31, 2023 ($ in thousands) Fair Value Measurements Using Fair Value Quoted Prices in Significant Significant Collateral dependent loans $ 8,087 $ — $ — $ 8,087 Other real estate owned 5,066 — — 5,066 December 31, 2022 ($ in thousands) Fair Value Measurements Using Fair Value Quoted Prices in Significant Significant Collateral dependent loans $ 3,564 $ — $ — $ 3,564 Other real estate owned 4,832 — — 4,832 |
SECURITIES
SECURITIES | 3 Months Ended |
Mar. 31, 2023 | |
SECURITIES | |
SECURITIES | SECURITIES The following table summarizes the amortized cost, gross unrealized gains and losses, and estimated fair values of securities available-for-sale (“AFS”) and securities held-to-maturity at March 31, 2023 and December 31, 2022. ($ in thousands) March 31, 2023 Amortized Gross Gross Estimated Available-for-sale securities: U.S. Treasury $ 135,718 $ — $ 9,945 $ 125,773 Obligations of U.S. government agencies and sponsored entities 158,735 2 15,520 143,217 Tax-exempt and taxable obligations of states and municipal subdivisions 509,746 762 50,324 460,184 Mortgage-backed securities - residential 330,626 9 37,241 293,394 Mortgage-backed securities - commercial 209,947 56 21,844 188,159 Corporate obligations 42,622 — 3,558 39,064 Total available-for-sale $ 1,387,394 $ 829 $ 138,432 $ 1,249,791 Held-to-maturity: U.S. Treasury $ 99,677 $ — $ 4,114 $ 95,563 Obligations of U.S. government agencies and sponsored entities 33,679 12 1,549 32,142 Tax-exempt and taxable obligations of states and municipal subdivisions 247,872 8,676 13,569 242,979 Mortgage-backed securities - residential 152,636 — 15,229 137,407 Mortgage-backed securities - commercial 134,297 21 11,282 123,036 Corporate obligations 10,000 — 1,609 8,391 Total held-to-maturity $ 678,161 $ 8,709 $ 47,352 $ 639,518 ($ in thousands) December 31, 2022 Amortized Gross Gross Estimated Available-for-sale securities: U.S. Treasury $ 135,752 $ — $ 11,898 $ 123,854 Obligations of U.S. government agencies sponsored entities 163,054 3 18,688 144,369 Tax-exempt and taxable obligations of states and municipal subdivisions 519,190 598 61,931 457,857 Mortgage-backed securities - residential 341,272 11 42,041 299,242 Mortgage-backed securities - commercial 215,200 60 24,363 190,897 Corporate obligations 43,869 — 2,987 40,882 Total available-for-sale $ 1,418,337 $ 672 $ 161,908 $ 1,257,101 Held-to-maturity: U.S. Treasury $ 109,631 $ — $ 5,175 $ 104,456 Obligations of U.S. government agencies and sponsored entities 33,789 — 2,153 31,636 Tax-exempt and taxable obligations of states and municipal subdivisions 247,467 4,525 13,699 238,293 Mortgage-backed securities - residential 156,119 — 17,479 138,640 Mortgage-backed securities - commercial 134,478 7 13,798 120,687 Corporate obligations 10,000 — 1,615 8,385 Total held-to-maturity $ 691,484 $ 4,532 $ 53,919 $ 642,097 The amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. The Company reassessed classification of certain investments and effective October 2022, the Company transferred $863 thousand of obligations of U.S. government agencies and sponsored entities, $1.2 million of mortgage-backed securities - commercial, and $137.5 million of tax-exempt and taxable obligations of state and municipal subdivisions from AFS to HTM securities. The securities were transferred at their amortized cost basis, net of any remaining unrealized gain or loss reported in accumulated other comprehensive income. The related unrealized loss of $36.8 million included in other comprehensive income remained in other comprehensive income, to be amortized out of other comprehensive income with an offsetting entry to interest income as a yield adjustment through earnings over the remaining term of the securities. There was no allowance for credit loss associated with the AFS securities that were transferred to HTM. ACL on Securities Securities Available for Sale Quarterly, the Company evaluates if a 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 determine if the decline is indicative of credit loss or other factors. • The securities that violate the credit loss trigger above would be subjected to additional analysis. • If the Company determines that a credit loss exists, the credit portion of the allowance will be measured using the discounted cash flow (“DCF”) analysis using the effective interest rate. The amount of credit loss the Company records will be limited to the amount by which the amortized cost exceeds the fair value. The allowance for the calculated credit loss will be monitored going forward for further credit deterioration or improvement. At both March 31, 2023 and December 31, 2022, the results of the analysis did not identify any securities where the decline was indicative of credit loss factors; therefore, no credit loss was recognized on any of the securities AFS. Accrued interest receivable is excluded from the estimate of credit losses for securities AFS. Accrued interest receivable totaled $5.2 million and $6.2 million at March 31, 2023 and December 31, 2022, respectively and was reported in interest receivable on the accompanying Consolidated Balance Sheet. All AFS securities were current with no securities past due or on nonaccrual as of March 31, 2023 and December 31, 2022. Securities Held to Maturity At March 31, 2023 and December 31, 2022, the potential credit loss exposure was $282 thousand and $242 thousand, respectively and consisted of tax-exempt and taxable obligations of states and municipal subdivisions and corporate obligations securities. After applying appropriate probability of default (“PD”) and loss given default (“LGD”) assumptions, the total amount of current expected credit losses was deemed immaterial. Therefore, no reserve was recorded at March 31, 2023. Accrued interest receivable is excluded from the estimate of credit losses for securities held-to-maturity. Accrued interest receivable totaled $2.8 million and $3.6 million at March 31, 2023 and December 31, 2022, respectively and was reported in interest receivable on the accompanying Consolidated Balance Sheet. At both March 31, 2023 and December 31, 2022, the Company had no securities held-to-maturity that were past due 30 days or more as to principal or interest payments. The Company had no securities held-to-maturity classified as nonaccrual at both March 31, 2023 and December 31, 2022. The Company monitors the credit quality of the debt securities held-to-maturity through the use of credit ratings. The Company monitors the credit ratings on a quarterly basis. The following table summarizes the amortized cost of debt securities held-to-maturity at March 31, 2023 and December 31, 2022, aggregated by credit quality indicators. ($ in thousands) March 31, 2023 December 31, 2022 Aaa $ 454,048 $ 467,736 Aa1/Aa2/Aa3 110,991 110,854 A1/A2 13,793 13,757 BBB 10,000 10,000 Not rated 89,329 89,137 Total $ 678,161 $ 691,484 The amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. ($ in thousands) March 31, 2023 Amortized Fair Available-for-sale: Due less than one year $ 59,346 $ 58,055 Due after one year through five years 271,333 255,119 Due after five years through ten years 336,077 300,986 Due greater than ten years 180,065 154,078 Mortgage-backed securities - residential 330,626 293,394 Mortgage-backed securities - commercial 209,947 188,159 Total $ 1,387,394 $ 1,249,791 Held-to-maturity: Due less than one year $ 38,232 $ 37,371 Due after one year through five years 82,398 78,578 Due after five years through ten years 48,564 45,111 Due greater than ten years 222,034 218,015 Mortgage-backed securities - residential 152,636 137,407 Mortgage-backed securities - commercial 134,297 123,036 Total $ 678,161 $ 639,518 The amortized costs of securities pledged as collateral, to secure public deposits and for other purposes, was $1.198 billion at March 31, 2023 and $1.031 billion at December 31, 2022, respectively. The following table summarizes securities in an unrealized loss position for which an allowance for credit losses has not been recorded at March 31, 2023 and December 31, 2022. The securities are aggregated by major security type and length of time in a continuous unrealized loss position: ($ in thousands) March 31, 2023 Losses < 12 Months Losses 12 Months or > Total Fair Gross Fair Gross Fair Gross Available-for-sale: U.S. Treasury $ — $ — $ 125,773 $ 9,945 $ 125,773 $ 9,945 Obligations of U.S. government agencies and sponsored entities 5,573 137 137,028 15,383 142,601 15,520 Tax-exempt and taxable obligations of state and municipal subdivisions 57,181 1,363 368,485 48,961 425,666 50,324 Mortgage-backed securities - residential 31,971 1,266 260,601 35,975 292,572 37,241 Mortgage-backed securities - commercial 29,832 1,292 153,856 20,552 183,688 21,844 Corporate obligations 23,228 1,378 15,836 2,180 39,064 3,558 Total $ 147,785 $ 5,436 $ 1,061,579 $ 132,996 $ 1,209,364 $ 138,432 Held-to-maturity: U.S. Treasury $ — $ — $ 95,562 $ 4,114 $ 95,562 $ 4,114 Obligations of U.S. government agencies and sponsored entities 31,401 1,549 — — 31,401 1,549 Tax-exempt and taxable obligations of state and municipal subdivisions 71,182 5,667 40,327 7,902 111,509 13,569 Mortgage-backed securities - residential 48,340 4,190 89,067 11,039 137,407 15,229 Mortgage-backed securities - commercial 67,344 4,760 54,749 6,522 122,093 11,282 Corporate obligations — — 8,391 1,609 8,391 1,609 Total $ 218,267 $ 16,166 $ 288,096 $ 31,186 $ 506,363 $ 47,352 ($ in thousands) December 31, 2022 Losses < 12 Months Losses 12 Months or > Total Fair Gross Fair Gross Fair Gross Available-for-sale: U.S. Treasury $ 4,563 $ 419 $ 119,292 $ 11,479 $ 123,855 $ 11,898 Obligations of U.S. government agencies and sponsored entities 34,254 2,293 109,431 16,395 143,685 18,688 Tax-exempt and taxable obligations of state and municipal subdivisions 275,202 31,152 159,508 30,779 434,710 61,931 Mortgage-backed securities - residential 76,125 4,970 222,274 37,071 298,399 42,041 Mortgage-backed securities - commercial 50,193 3,025 136,062 21,338 186,255 24,363 Corporate obligations 35,142 1,995 5,739 992 40,881 2,987 Total $ 475,479 $ 43,854 $ 752,306 $ 118,054 $ 1,227,785 $ 161,908 Held-to-maturity: U.S. Treasury $ 104,457 $ 5,175 $ — $ — $ 104,457 $ 5,175 Obligations of U.S. government agencies and sponsored entities 31,636 2,153 — — 31,636 2,153 Tax-exempt and taxable obligations of state and municipal subdivisions 127,628 13,583 15,303 116 142,931 13,699 Mortgage-backed securities - residential 138,639 17,479 — — 138,639 17,479 Mortgage-backed securities - commercial 119,758 13,798 — — 119,758 13,798 Corporate obligations 8,385 1,615 — — 8,385 1,615 Total $ 530,503 $ 53,803 $ 15,303 $ 116 $ 545,806 $ 53,919 |
LOANS
LOANS | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
LOANS | LOANS The Company uses four different categories to classify loans in its portfolio based on the underlying collateral securing each loan. The loans grouped together in each category have been determined to share similar risk characteristics with respect to credit quality. Those four categories are commercial, financial and agriculture, commercial real estate, consumer real estate, consumer installment; Commercial, financial and agriculture – Commercial, financial and agriculture loans include loans to business entities issued for commercial, industrial, or other business purposes. This type of commercial loan shares a similar risk characteristic in that unlike commercial real estate loans, repayment is largely dependent on cash flow generated from the operation of the business. Commercial real estate – Commercial real estate loans are grouped as such because repayment is mainly dependent upon either the sale of the real estate, operation of the business occupying the real estate, or refinance of the debt obligation. This includes both owner-occupied and non-owner occupied CRE secured loans, because they share similar risk characteristics related to these variables. Consumer real estate – Consumer real estate loans consist primarily of loans secured by 1-4 family residential properties and/or residential lots. This includes loans for the purpose of constructing improvements on the residential property, as well as home equity lines of credit. Consumer installment – Installment and other loans are all loans issued to individuals that are not for any purpose related to operation of a business, and not secured by real estate. Repayment on these loans is mostly dependent on personal income, which may be impacted by general economic conditions. The following table shows the composition of the loan portfolio: ($ in thousands) March 31, 2023 December 31, 2022 Loans held for sale Mortgage loans held for sale $ 4,073 $ 4,443 Total LHFS $ 4,073 $ 4,443 Loans held for investment Commercial, financial and agriculture (1) $ 785,676 $ 536,192 Commercial real estate 2,862,145 2,135,263 Consumer real estate 1,268,776 1,058,999 Consumer installment 53,179 43,703 Total loans 4,969,776 3,774,157 Less allowance for credit losses (52,450) (38,917) Net LHFI $ 4,917,326 $ 3,735,240 ____________________________________________________________ (1) Loan balance includes $568 thousand and $710 thousand in Paycheck Protection Program (“PPP”) loans as of March 31, 2023 and December 31, 2022, respectively. Accrued interest receivable is not included in the amortized cost basis of the Company’s LHFI. At March 31, 2023 and December 31, 2022, accrued interest receivable for LHFI totaled $21.6 million and $18.0 million, respectively, with no related ACL and was reported in interest receivable on the accompanying consolidated balance sheet. Nonaccrual and Past Due LHFI Past due LHFI are loans contractually past due 30 days or more as to principal or interest payments. Generally, the Company will place a delinquent loan in nonaccrual status when the loan becomes 90 days or more past due. At the time a loan is placed in nonaccrual status, all interest which has been accrued on the loan but remains unpaid is reversed and deducted from earnings as a reduction of reported interest income. No additional interest is accrued on the loan balance until the collection of both principal and interest becomes reasonably certain. The following tables present the aging of the amortized cost basis in past due loans in addition to those loans classified as nonaccrual including purchase credit deteriorated (“PCD”) loans: ($ in thousands) March 31, 2023 Past Due Past Due Nonaccrual PCD Total Total Nonaccrual Commercial, financial and agriculture (1) $ 2,405 $ 70 $ 92 $ 1,563 $ 4,130 $ 785,676 $ 98 Commercial real estate 2,151 — 8,916 1,557 12,624 2,862,145 6,230 Consumer real estate 6,101 3 3,381 1,790 11,275 1,268,776 1,118 Consumer installment 214 — 14 — 228 53,179 — Total $ 10,871 $ 73 $ 12,403 $ 4,910 $ 28,257 $ 4,969,776 $ 7,446 ___________________________________________________________ (1) Total loan balance includes $568 thousand in PPP loans as of March 31, 2023. December 31, 2022 ($ in thousands) Past Due Past Due 90 Nonaccrual PCD Total Total Nonaccrual Commercial, financial and agriculture (1) $ 220 $ — $ 19 $ — $ 239 $ 536,192 $ — Commercial real estate 1,984 — 7,445 1,129 10,558 2,135,263 4,560 Consumer real estate 3,386 289 2,965 1,032 7,672 1,058,999 791 Consumer installment 173 — 1 — 174 43,703 — Total $ 5,763 $ 289 $ 10,430 $ 2,161 $ 18,643 $ 3,774,157 $ 5,351 ___________________________________________________________ (1) Total loan balance includes $710 thousand in PPP loans as of December 31, 2022. Acquired Loans In connection with the acquisitions of HSBI and BBI, the Company acquired loans both with and without evidence of credit quality deterioration since origination. Acquired loans are recorded at their fair value at the time of acquisition with no carryover from the acquired institution's previously recorded allowance for credit losses. Acquired loans are accounted for under the following accounting pronouncements: ASC 326, Financial Instruments - Credit Losses. The fair value for acquired loans recorded at the time of acquisition is based upon several factors including the timing and payment of expected cash flows, as adjusted for estimated credit losses and prepayments, and then discounting these cash flows using comparable market rates. The resulting fair value adjustment is recorded in the form of premium or discount to the unpaid principal balance of each acquired loan. As it relates to acquired PCD loans, the net premium or net discount is adjusted to reflect the Company's allowance for credit losses ("ACL") recorded for PCD loans at the time of acquisition, and the remaining fair value adjustment is accreted or amortized into interest income over the remaining life of the loan. As it relates to acquired loans not classified as PCD ("non-PCD") loans, the credit loss and yield components of the fair value adjustments are aggregated, and the resulting net premium or net discount is accreted or amortized into interest income over the average remaining life of those loans. The Company records an ACL for non-PCD loans at the time of acquisition through provision expense, and therefore, no further adjustments are made to the net premium or net discount for non-PCD loans. The estimated fair value of the non-PCD loans acquired in the BBI acquisition was $460.0 million, which is net of a $8.8 million discount. The gross contractual amounts receivable of the acquired non-PCD loans at acquisition was approximately $468.8 million, of which $6.4 million is the amount of contractual cash flows not expected to be collected. The estimated fair value of the non-PCD acquired in the HSBI acquisition was $1.091 billion, which is net of a $33.7 million discount. The gross contractual amounts receivable of the acquired non-PCD loans at acquisition was approximately $1.125 billion, of which $16.5 million is the amount of contractual cash flows not expected to be collected. The following table shows the carrying amount of loans acquired in the BBI and HSBI acquisitions for which there was, at the date of acquisition, more than insignificant deterioration of credit quality since origination: ($ in thousands) BBI HSBI Purchase price of loans at acquisition $ 27,669 $ 52,356 Allowance for credit losses at acquisition 1,303 3,176 Non-credit discount (premium) at acquisition 530 2,325 Par value of acquired loans at acquisition $ 29,502 $ 57,857 As of March 31, 2023, and December 31, 2022 the amortized cost of the Company’s PCD loans totaled $68.8 million and $24.0 million, respectively, which had an estimated ACL of $4.3 million and $1.7 million, respectively. Loan Modifications The Company adopted ASU No. 2022-02 effective January 1, 2023. These amendments eliminate the TDR recognition and measurement guidance and enhanced disclosures for loan modifications to borrowers experiencing financial difficulty. Occasionally, the Company modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, and other-than-insignificant payment delay or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses. In some cases, the Company provides multiple types of concessions on one loan. Typically, one type of concession, such as term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. For loans included in the "combination" columns below, multiple types of modifications have been made on the same loan within the current reporting period. The combination is at least two of the following: a term extension, principal forgiveness, an other-than-insignificant payment delay and/or an interest rate reduction. The following table presents the amortized cost basis of loans at March 31, 2023 that were both experiencing financial difficulty and modified during 2023, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below: ($ in thousands) Combination Payment Deferral and Payment Modification Percentage of Total Loans Held for Investment Commercial real estate $ 301 0.01 % Total $ 301 0.01 % The Company has not committed to lend additional amounts to the borrowers included in the previous table. Troubled Debt Restructurings Prior to the Adoption of ASU 2022-02 If the Company grants a concession to a borrower for economic or legal reasons related to a borrower’s financial difficulties that it would not otherwise consider, the loan is classified as a TDR. As of December 31, 2022, the Company had TDRs totaling $21.8 million. The Company acquired three TDRs totaling $1.5 million as part of the BBI acquisition. As of December 31, 2022, the Company had no additional amount committed on any loan classified as TDR. As of December 31, 2022, TDRs had a related ACL of $841 thousand. The following table presents LHFI by class modified as TDRs that occurred during the three months ended March 31, 2022. ($ in thousands) Three Months Ended March 31, 2022 Number of Outstanding Outstanding Commercial real estate 1 $ 230 $ 230 Total 1 $ 230 $ 230 The TDRs presented above increased the ACL $1 thousand and resulted in no charge-offs for the three months period ended March 31, 2022. The following table presents loans by class modified as TDRs for which there was a payment default within twelve months following the modification for the three months ended March 31, 2022 ($ in thousands). Troubled Debt Restructurings That Subsequently Defaulted: Three Months Ended March 31, 2022 Number of Recorded Commercial real estate 3 $ 4,606 Consumer real estate 3 141 Total 6 $ 4,747 The modifications described above included one of the following or a combination of the following: maturity date extensions, interest only payments, amortizations were extended beyond what would be available on similar type loans, and payment waiver. No interest rate concessions were given on these loans nor were any of these loans written down. A loan is considered to be in a payment default once it is 30 days contractually past due under the modified terms. The TDRs presented above increased the ACL $1.5 million and resulted in no charge-offs for the three months period ended March 31, 2022. The following tables represents the Company’s TDRs at December 31, 2022: December 31, 2022 Current Past Due Past Due 90 Nonaccrual Total ($ in thousands) Commercial, financial and agriculture $ 49 $ — $ — $ — $ 49 Commercial real estate 13,561 — — 6,121 19,682 Consumer real estate 1,077 — — 929 2,006 Consumer installment 14 — — — 14 Total $ 14,701 $ — $ — $ 7,050 $ 21,751 Allowance for credit losses $ 350 $ — $ — $ 491 $ 841 Collateral Dependent Loans The following table presents the amortized cost basis of collateral dependent individually evaluated loans by class of loans as of March 31, 2023 and December 31, 2022: March 31, 2023 ($ in thousands) Real Property Equipment Miscellaneous Total Commercial, financial and agriculture $ — $ 171 $ 701 $ 872 Commercial real estate 6,230 — — 6,230 Consumer real estate 1,342 — — 1,342 Total $ 7,572 $ 171 $ 701 $ 8,444 December 31, 2022 ($ in thousands) Real Property Total Commercial real estate $ 4,560 $ 4,560 Consumer real estate 998 998 Total $ 5,558 $ 5,558 A loan is collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the sale of the collateral. The following provides a qualitative description by class of loan of the collateral that secures the Company’s collateral-dependent LHFI: • Commercial, financial and agriculture – Loans within these loan classes are secured by equipment, inventory accounts, and other non-real estate collateral. • Commercial real estate – Loans within these loan classes are secured by commercial real property. • Consumer real estate - Loans within these loan classes are secured by consumer real property. • Consumer installment - Loans within these loan classes are secured by consumer goods, equipment, and non-real estate collateral. There have been no significant changes to the collateral that secures these financial assets during the period. Loan Participations The Company has loan participations, which qualify as participating interest, with other financial institutions. As of March 31, 2023, these loans totaled $251.3 million, of which $140.7 million had been sold to other financial institutions and $110.5 million was purchased by the Company. As of December 31, 2022, these loans totaled $202.6 million, of which $100.1 million had been sold to other financial institutions and $102.5 million was purchased by the Company. The loan participations convey proportionate ownership rights with equal priority to each participating interest holder; involving no recourse (other than ordinary representations and warranties) to, or subordination by, any participating interest holder; all cash flows are divided among the participating interest holders in proportion to each holder’s share of ownership; and no holder has the right to pledge the entire financial asset unless all participating interest holders agree. Credit Quality Indicators The Company categorizes loans 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. The Company analyzes loans individually to classify the loans as to credit risk. The Company uses the following definitions for risk ratings: Pass: Loan classified as pass are deemed to possess average to superior credit quality, requiring no more than normal attention. 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 Company’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. These above classifications were the most current available as of March 31, 2023, and were generally updated within the prior year. The tables below present the amortized cost basis of loans by credit quality indicator and class of loans based on the most recent analysis performed at March 31, 2023 and December 31, 2022. Revolving loans converted to term as of the three months ended March 31, 2023 and December 31, 2022 were not material to the total loan portfolio. As of March 31, 2023 Term Loans Amortized Cost Basis by Origination Year Revolving Total ($ in thousands) 2023 2022 2021 2020 2019 Prior Commercial, financial and agriculture: Risk Rating Pass $ 30,008 $ 164,576 $ 123,428 $ 59,554 $ 50,826 $ 84,846 $ 264,482 $ 777,720 Special mention — — 2,358 536 399 1,474 305 5,072 Substandard 9 291 181 334 908 1,136 25 2,884 Doubtful — — — — — — — — Total commercial, financial and agriculture $ 30,017 $ 164,867 $ 125,967 $ 60,424 $ 52,133 $ 87,456 $ 264,812 $ 785,676 Current period gross write offs $ — $ — $ 3 $ — $ — $ — $ — $ 3 Commercial real estate: Risk Rating Pass $ 37,110 $ 774,221 $ 586,611 $ 405,322 $ 285,453 $ 650,549 $ 9,306 $ 2,748,572 Special mention — 7,558 9,379 3,342 11,190 28,141 173 59,783 Substandard — 2,714 3,297 873 5,375 41,531 — 53,790 Doubtful — — — — — — — — Total commercial real estate $ 37,110 $ 784,493 $ 599,287 $ 409,537 $ 302,018 $ 720,221 $ 9,479 $ 2,862,145 Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer real estate: Risk Rating Pass $ 35,440 $ 397,923 $ 257,557 $ 148,394 $ 65,976 $ 194,847 $ 147,998 $ 1,248,135 Special mention — 77 179 — 92 4,270 2,026 6,644 Substandard — 538 673 1,579 1,075 8,978 1,154 13,997 Doubtful — — — — — — — — Total consumer real estate $ 35,440 $ 398,538 $ 258,409 $ 149,973 $ 67,143 $ 208,095 $ 151,178 $ 1,268,776 Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer installment: Risk Rating Pass $ 6,458 $ 19,656 $ 11,402 $ 5,236 $ 2,282 $ 1,989 $ 6,095 $ 53,118 Special mention — — — 1 — — — 1 Substandard — 14 20 23 — 3 — 60 Doubtful — — — — — — — — Total consumer installment $ 6,458 $ 19,670 $ 11,422 $ 5,260 $ 2,282 $ 1,992 $ 6,095 $ 53,179 Current period gross write offs $ — $ 114 $ 47 $ 85 $ 17 $ 75 $ — $ 338 Total Pass $ 109,016 $ 1,356,376 $ 978,998 $ 618,506 $ 404,537 $ 932,231 $ 427,881 $ 4,827,545 Special mention — 7,635 11,916 3,879 11,681 33,885 2,504 71,500 Substandard 9 3,557 4,171 2,809 7,358 51,648 1,179 70,731 Doubtful — — — — — — — — Total $ 109,025 $ 1,367,568 $ 995,085 $ 625,194 $ 423,576 $ 1,017,764 $ 431,564 $ 4,969,776 Current period gross write offs $ — $ 114 $ 50 $ 85 $ 17 $ 75 $ — $ 341 As of December 31, 2022 Term Loans Amortized Cost Basis by Origination Year Revolving Total ($ in thousands) 2022 2021 2020 2019 2018 Prior Commercial, financial and: agriculture Risk Rating Pass $ 181,761 $ 141,174 $ 55,690 $ 53,954 $ 43,441 $ 52,038 $ 181 $ 528,239 Special mention 380 5,188 1,664 — — 412 — 7,644 Substandard 50 — — 34 33 192 — 309 Doubtful — — — — — — — — Total commercial, financial and agriculture $ 182,191 $ 146,362 $ 57,354 $ 53,988 $ 43,474 $ 52,642 $ 181 $ 536,192 Commercial real estate: Risk Rating Pass $ 582,895 $ 436,661 $ 305,140 $ 217,626 $ 140,682 $ 368,185 $ 1,765 $ 2,052,954 Special mention 672 1,345 3,938 11,643 9,885 16,612 — 44,095 Substandard 50 2,830 908 1,694 4,797 27,935 — 38,214 Doubtful — — — — — — — — Total commercial real estate $ 583,617 $ 440,836 $ 309,986 $ 230,963 $ 155,364 $ 412,732 $ 1,765 $ 2,135,263 Consumer real estate: Risk Rating Pass $ 325,853 $ 226,355 $ 136,052 $ 59,376 $ 51,515 $ 129,923 $ 112,278 $ 1,041,352 Special mention — — — — 823 3,846 — 4,669 Substandard 519 554 1,481 648 1,706 6,894 1,176 12,978 Doubtful — — — — — — — — Total consumer real estate $ 326,372 $ 226,909 $ 137,533 $ 60,024 $ 54,044 $ 140,663 $ 113,454 $ 1,058,999 Consumer installment: Risk Rating Pass $ 18,925 $ 11,618 $ 5,031 $ 2,078 $ 832 $ 1,445 $ 3,725 $ 43,654 Special mention — — — — — — — — Substandard 4 13 24 — 3 5 — 49 Doubtful — — — — — — — — Total consumer installment $ 18,929 $ 11,631 $ 5,055 $ 2,078 $ 835 $ 1,450 $ 3,725 $ 43,703 Total Pass $ 1,109,434 $ 815,808 $ 501,913 $ 333,034 $ 236,470 $ 551,591 $ 117,949 $ 3,666,199 Special mention 1,052 6,533 5,602 11,643 10,708 20,870 — 56,408 Substandard 623 3,397 2,413 2,376 6,539 35,026 1,176 51,550 Doubtful — — — — — — — — Total $ 1,111,109 $ 825,738 $ 509,928 $ 347,053 $ 253,717 $ 607,487 $ 119,125 $ 3,774,157 Allowance for Credit Losses The ACL is a valuation account that is deducted from loans’ amortized cost basis to present the net amount expected to be collected on the loans. It is comprised of a general allowance for loans that are collectively assessed in pools with similar risk characteristics and a specific allowance for individually assessed loans. The allowance is continuously monitored by management to maintain a level adequate to absorb expected losses inherent in the loan portfolio. The ACL represents the estimated losses for financial assets accounted for on an amortized cost basis. Expected losses are calculated using relevant information, from internal and external sources, about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environment conditions, such as changes in unemployment rates, property values, or other relevant factors. Management may selectively apply external market data to subjectively adjust the Company’s own loss history including index or peer data. Expected losses are estimated over the contractual term of the loans, adjusted for expected prepayments. The contractual term excludes expected extensions, renewals, and modifications. Loans are charged-off against the allowance when management believes the uncollectibility of a loan balance is confirmed and recoveries are credited to the allowance when received. Expected recovery amounts may not exceed the aggregate of amounts previously charged-off. The ACL is measured on a collective basis when similar risk characteristics exist. Generally, collectively assessed loans are grouped by call code (segments). Segmenting loans by call code will group loans that contain similar types of collateral, purposes, and are usually structured with similar terms making each loan’s risk profile very similar to the rest in that segment. Each of these segments then flows up into one of the four bands (bands), Commercial, Financial, and Agriculture, Commercial Real Estate, Consumer Real Estate, and Consumer Installment. In accordance with the guidance in ASC 326, the Company redefined its LHFI portfolio segments and related loan classes based on the level at which risk is monitored within the ACL methodology. Construction loans for 1-4 family residential properties with a call code 1A1, and other construction, all land development and other land loans with a call code 1A2 were previously separated between the Commercial Real Estate or Consumer Real Estate bands based on loan type code. Under our ASC 326 methodology 1A1 loans are all defined as part of the Consumer Real Estate band and 1A2 loans are all defined as part of the Commercial Real Estate Band. The PD calculation analyzes the historical loan portfolio over the given lookback period to identify, by segment, loans that have defaulted. A default is defined as a loan that has moved to past due 90 days and greater, nonaccrual status, or experienced a charge-off during the period. The model observes loans over a 12-month window, detecting any events previously defined. This information is then used by the model to calculate annual iterative count-based PD rates for each segment. This process is then repeated for all dates within the historical data range. These averaged PD’s are used for an immediate reversion back to the historical mean. The historical data used to calculate this input was captured by the Company from 2009 through the most recent quarter end. The Company utilizes reasonable and supportable forecasts of future economic conditions when estimating the ACL on loans. The model’s calculation also includes a 24-month forecasted PD based on a regression model that calculated a comparison of the Company’s historical loan data to various national economic metrics during the same periods. The results showed the Company’s past losses having a high rate of correlation to unemployment, both regionally and nationally. Using this information, along with the most recently published Wall Street Journal survey of sixty economists’ forecasts predicting unemployment rates out over the next eight quarters, a corresponding future PD can be calculated for the forward-looking 24-month period. This data can also be used to predict loan losses at different levels of stress, including a baseline, adverse and severely adverse economic condition. After the forecast period, PD rates revert to the historical mean of the entire data set. The LGD calculation is based on actual losses (charge-offs, net recoveries) at a loan level experienced over the entire lookback period aggregated to get a total for each segment of loans. The aggregate loss amount is divided by the exposure at default to determine an LGD rate. Defaults occurring during the lookback period are included in the denominator, whether a loss occurred or not and exposure at default is determined by the loan balance immediately preceding the default event. If there is not a minimum of five past defaults in a loan segment, or less than 15.0% calculated LGD rate, or the total balance at default is less than 1% of the balance in the respective call code as of the model run date, a proxy index is used. This index is proprietary to the Company’s ACL modeling vendor derived from loss data of other client institutions similar in organization structure to the Company. The vendor also provides a “crisis” index derived from loss data between the post-recessionary years of 2008-2013 that the Company uses. The model then uses these inputs in a non-discounted version of DCF methodology to calculate the quantitative portion of estimated losses. The model creates loan level amortization schedules that detail out the expected monthly payments for a loan including estimated prepayments and payoffs. These expected cash flows are discounted back to present value using the loan’s coupon rate instead of the effective interest rate. On a quarterly basis, the Company uses internal credit portfolio data, such as changes in portfolio volume and composition, underwriting practices, and levels of past due loans, nonaccruals and classified assets along with other external information not used in the quantitative calculation to determine if any subjective qualitative adjustments are required so that all significant risks are incorporated to form a sufficient basis to estimate credit losses. The following table presents the activity in the allowance for credit losses by portfolio segment for the three months ended March 31, 2023 and 2022: ($ in thousands) Three Months Ended March 31, 2023 Commercial, Commercial Consumer Consumer Total Allowance for credit losses: Beginning balance $ 6,349 $ 20,389 $ 11,599 $ 580 $ 38,917 Initial allowance on PCD loans 727 2,260 182 7 3,176 Provision for credit losses 2,327 5,388 2,402 383 10,500 Loans charged-off (3) — — (338) (341) Recoveries 43 15 18 122 198 Total ending allowance balance $ 9,443 $ 28,052 $ 14,201 $ 754 $ 52,450 ($ in thousands) Three Months Ended March 31, 2022 Commercial, Commercial Consumer Consumer Total Allowance for credit losses: Beginning balance $ 4,873 $ 17,552 $ 7,889 $ 428 $ 30,742 Provision for credit losses — — — — — Loans charged-off (52) (3) (7) (169) (231) Recoveries 53 224 610 222 1,109 Total ending allowance balance $ 4,874 $ 17,773 $ 8,492 $ 481 $ 31,620 The initial ACL on PCD loans recorded in March 2023, of $3.2 million was related to the HSBI acquisition. The 2023 provision for credit losses includes $10.7 million associated with day one post-merger accounting provision recorded for non-PCD loans and unfunded commitments acquired in the HSBI merger. The Company recorded a $10.5 million provision for credit losses for the three months ended March 31, 2023, compared to no provision for the same periods in 2022. The increase in the provision is related to the HSBI acquisition and loan growth. The following table provides the ending balance in the Company’s LHFI and the ACL, broken down by portfolio segment as of March 31, 2023 and December 31, 2022 ($ in thousands). March 31, 2023 Commercial, Commercial Consumer Consumer Total LHFI Individually evaluated $ 872 $ 6,230 $ 1,342 $ — $ 8,444 Collectively evaluated 784,804 2,855,915 1,267,434 53,179 4,961,332 Total $ 785,676 $ 2,862,145 $ 1,268,776 $ 53,179 $ 4,969,776 Allowance for Credit Losses Individually evaluated $ 337 $ — $ 20 $ — $ 357 Collectively evaluated 9,106 28,052 14,181 754 52,093 Total $ 9,443 $ 28,052 $ 14,201 $ 754 $ 52,450 December 31, 2022 Commercial, Commercial Consumer Consumer Total LHFI Individually evaluated $ — $ 4,560 $ 998 $ — $ 5,558 Collectively evaluated 536,192 2,130,703 1,058,001 43,703 3,768,599 Total $ 536,192 $ 2,135,263 $ 1,058,999 $ 43,703 $ 3,774,157 Allowance for Credit Losses Individually evaluated $ — $ — $ 5 $ — $ 5 Collectively evaluated 6,349 20,389 11,594 580 38,912 Total $ 6,349 $ 20,389 $ 11,599 $ 580 $ 38,917 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS Interest Rate Swaps The Company enters into interest rate swap agreements primarily to facilitate the risk management strategies of certain commercial customers. The interest rate swap agreements entered into by the Company are all entered into under what is referred to as a back-to-back interest rate swap, as such, the net positions are offsetting assets and liabilities, as well as income and expenses. All derivative instruments are recorded in the consolidated statement of financial condition at their respective fair values, as components of other assets and other liabilities. Under a back-to-back interest rate swap program, the Company enters into an interest rate swap with the customer and another offsetting swap with a counterparty. The result is two mirrored interest rate swaps, absent a credit event, which will offset in the financial statements. These swaps are not designated as hedging instruments and are recorded at fair value in other assets and other liabilities. The change in fair value is recognized in the income statement as other income and fees. As part of the BBI acquisition, the Bank acquired 33 loans with related interest rate swaps. The following table provides outstanding interest rate swaps at March 31, 2023. ($ in thousands) March 31, 2023 Notional amount $ 332,873 Weighted average pay rate 4.4 % Weighted average receive rate 4.4 % Weighted average maturity in years 5.96 The following table provides the fair value of interest rate swap contracts at March 31, 2023 included in other assets and other liabilities. ($ in thousands) March 31, 2023 Derivative Assets Derivative Liabilities Interest rate swap contracts $ 10,577 $ 10,577 The Company also enters into a collateral agreement with the counterparty requiring the Company to post cash or cash equivalent collateral to mitigate the credit risk in the transaction. At March 31, 2023, the Company had $500 thousand of collateral posted with its counterparties, which is included in the consolidated statement of financial condition as cash and cash equivalents as "restricted cash". The Company also receives a swap spread to compensate it for the credit exposure it takes on the customer-facing portion of the transaction and this upfront cash payment from the counterparty is recorded in other income, net of any transaction execution expenses, in the consolidated statement of operations. For the three months ended March 31, 2023, net swap spread income included in other income was $169 thousand. Entering into derivative contracts potentially exposes the Company to the risk of counterparties' failure to fulfill their legal obligations, including, but not limited to, potential amounts due or payable under each derivative contract. Notional principal amounts are often used to express the volume of these transactions, but the amounts potentially subject to credit risk are much smaller. The Company assesses the credit risk of its dealer counterparties by regularly monitoring publicly available credit rating information, evaluating other market indicators, and periodically reviewing detailed financials. The Company records the fair value of its interest rate swap contracts separately within other assets and other liabilities as current accounting rules do not permit the netting of customer and counterparty fair value amounts in the consolidated statement of financial condition. |
RECLASSIFICATION
RECLASSIFICATION | 3 Months Ended |
Mar. 31, 2023 | |
RECLASSIFICATION | |
RECLASSIFICATION | RECLASSIFICATIONCertain amounts in the 2022 financial statements have been reclassified for comparative purposes to conform to the current period financial statement presentation. |
SUBSEQUENT EVENTS_OTHER
SUBSEQUENT EVENTS/OTHER | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS/OTHER | SUBSEQUENT EVENTS/OTHER In April 2023, the U.S. Department of Treasury (the "Treasury") informed the Company that the Treasury has reviewed the Company's application to receive a grant through the Community Development Financial Institution Fund ("CDFI Fund") related to the Equitable Recovery Program ("ERP"), and that the Company would be eligible to receive an ERP grant in an amount up to $6.2 million. The Company has not yet determined whether it will accept the offer to receive the ERP grant. If the Company moves forward with pursuing the ERP grant from the Treasury, the Company would be required to fulfill certain conditions established by the Treasury and would be subject to certain restrictions following its acceptance of the investment. Authorized by the Consolidated Appropriations Act, 2021, the ERP was created to respond to the economic effects of the Coronavirus Disease ("COVID-19") pandemic. These funds will strengthen the ability of the CDFIs to help low-and moderate-income communities recover from the COVID-19 pandemic and invest in long-term prosperity. |
ACCOUNTING STANDARDS (Policies)
ACCOUNTING STANDARDS (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Effect of Recently Adopted Accounting Standards & New Accounting Standards That Have Not Yet Been Adopted | Effect of Recently Adopted Accounting Standards In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (ASC 848): “Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This ASU provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference London Interbank Offer Rate ("LIBOR") or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The Company adopted ASU 2020-04 effective January 1, 2023. Adoption of ASU 2020-04 did not have a material impact on the Company's consolidated financial statements. In October 2021, the FASB issued ASU No. 2021-08, Business Combination (Topic 805): “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” This ASU requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendment improves comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. The Company adopted ASU 2021-08 effective January 1, 2023. Adoption of ASU 2022-02 did not have a material impact on the Company's consolidated financial statements. In November 2021, FASB issued ASU No. 2021-10, Government Assistance (Topic 832): “Disclosures by Business Entities about Government Assistance.” These amendments are expected to increase transparency in financial reporting by requiring business entities to disclose information about certain types of government assistance they receive. The Company adopted ASU 2021-10 effective January 1, 2022. Adoption of ASU 2021-10 did not have a material impact to the Company’s consolidated financial statements. In March 2022, FASB issued ASU No. 2022-02, " Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” These amendments eliminate the TDR recognition and measurement guidance and instead require that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan. The amendments also enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. For public business entities, these amendments require that an entity disclose current period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. Gross write-off information must be included in the vintage disclosures required for public business entities in accordance with paragraph 326-20-50-6, which requires that an entity disclose the amortized cost basis of financing receivables by credit quality indicator and class of financing receivable by year of origination. The Company adopted ASU 2022-02 effective January 1, 2023. Adoption of ASU 2022-02 did not have a material impact on the Company's consolidated financial statements. New Accounting Standards That Have Not Yet Been Adopted In March 2023, FASB issued ASU No. 2023-01, Leases (Topic 842) - "Common Control Arrangements." This ASU requires entities to determine whether a related party arrangement between entities under common control is a lease. If the arrangement is determined to be a lease, an entity must classify and account for the lease on the same basis as an arrangement with a related party. The ASU requires all entities to amortize leasehold improvements associated with common control leases over the useful life to the common control group. This guidance is effective for the Company January 1, 2024, and is not expected to have a material impact on the Company's consolidated financial statements. In March 2023, FASB issued ASU No. 2023-02, Investments - Equity Method and Joint Venture (Topic 323): "Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method." |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the provisional fair values of the assets acquired and liabilities assumed, and the goodwill generated from the transaction ($ in thousands): Purchase price: Cash and stock $ 221,538 Total purchase price 221,538 Identifiable assets: Cash $ 106,973 Investments 172,775 Loans 1,155,712 Core deposit intangible 43,739 Personal and real property 35,963 Other real estate owned 857 Bank owned life insurance 35,579 Deferred taxes 6,761 Interest receivable 4,349 Other assets 3,103 Total assets 1,565,811 Liabilities and equity: Deposits 1,392,432 Trust Preferred 9,015 Other liabilities 34,271 Total liabilities 1,435,718 Net assets acquired 130,093 Goodwill $ 91,445 The following table summarizes the provisional fair values of the assets acquired and liabilities assumed, and the goodwill generated from the transaction ($ in thousands): Purchase price: Cash and stock $ 101,470 Total purchase price 101,470 Identifiable assets: Cash $ 23,939 Investments 22,907 Loans 482,903 Other real estate 8,797 Bank owned life insurance 10,092 Core deposit intangible 9,791 Personal and real property 13,825 Deferred tax asset 28,105 Other assets 9,649 Total assets 610,008 Liabilities and equity: Deposits 490,588 Borrowings 25,000 Other liabilities 14,772 Total liabilities 530,360 Net assets acquired 79,648 Goodwill $ 21,822 |
Business Acquisition, Pro Forma Information | The following table presents certain supplemental pro forma information, for illustrative purposes only, for the three months ended March 31, 2023 and 2022 as if the BBI and HSBI acquisitions had occurred on January 1, 2022. The pro forma financial information is not necessarily indicative of the results of operations had the acquisitions been effective as of this date. ($ in thousands) (unaudited) (unaudited) Three Months Ended Three Months Ended Net interest income $ 64,926 $ 42,722 Non-interest income 12,612 16,865 Total revenue 77,538 59,587 Income before income taxes 24,661 27,532 |
EARNINGS APPLICABLE TO COMMON_2
EARNINGS APPLICABLE TO COMMON SHAREHOLDERS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerators and Denominators of Basic and Diluted Computations Applicable to Common Shareholders | The following tables disclose the reconciliation of the numerators and denominators of the basic and diluted computations applicable to common shareholders ($ in thousands, except per share amount): Three Months Ended Three Months Ended Net Income Shares Per Net Income Shares Per Basic earnings per share $ 16,271 31,309,458 $ 0.52 $ 16,829 20,697,946 $ 0.81 Effect of dilutive shares: Restricted stock grants 231,755 149,051 Diluted earnings per share $ 16,271 31,541,213 $ 0.52 $ 16,829 20,846,997 $ 0.81 |
FINANCIAL INSTRUMENTS WITH OF_2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Schedule of Financial Instruments with Off-Balance Sheet Risk | The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. At March 31, 2023, and December 31, 2022, these financial instruments consisted of the following: ($ in thousands) March 31, 2023 December 31, 2022 Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 39,123 $ 29,041 $ 43,227 $ 15,758 Unused lines of credit 247,995 360,488 243,043 404,025 Standby letters of credit 9,299 8,909 4,260 9,909 |
Schedule of Changes in the ACL on OBSC Exposures | Changes in the ACL on OBSC exposures were as follows for the presented periods: ($ in thousands) Three Months Ended March 31, 2023 2022 Balance at beginning of period $ 1,325 $ 1,070 Credit loss expense related to OBSC exposures 500 — Balance at end of period $ 1,825 $ 1,070 |
FAIR VALUE DISCLOSURES AND RE_2
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Estimated Fair Values | Estimated fair values for the Company’s financial instruments are as follows, as of the dates noted: March 31, 2023 Carrying Estimated Fair Value Measurements ($ in thousands) Quoted Prices Significant Significant Financial Instruments: Assets: Cash and cash equivalents $ 333,491 $ 333,491 $ 333,491 $ — $ — Securities available-for-sale 1,249,791 1,249,791 125,773 1,108,360 15,658 Securities held-to-maturity 678,161 639,518 — 639,518 — Loans held for sale 4,073 4,073 — 4,073 — Loans, net 4,917,326 4,793,811 — — 4,793,811 Accrued interest receivable 29,983 29,983 — 8,408 21,575 Interest rate swaps 10,577 10,577 — 10,577 — Liabilities: Noninterest-bearing deposits $ 2,082,441 $ 2,082,441 $ — $ 2,082,441 $ — Interest-bearing deposits 4,585,515 4,270,490 — 4,270,490 — Subordinated debentures 154,127 134,532 — — 134,532 FHLB and other borrowings 250,000 250,000 — 250,000 — Accrued interest payable 4,087 4,087 — 4,087 — Interest rate swaps 10,577 10,577 — 10,577 — December 31, 2022 Carrying Estimated Fair Value Measurements ($ in thousands) Quoted Significant Significant Financial Instruments: Assets: Cash and cash equivalents $ 145,315 $ 145,315 $ 145,315 $ — $ — Securities available-for-sale 1,257,101 1,257,101 123,854 1,118,099 15,148 Securities held-to-maturity 691,484 642,097 — 642,097 — Loans held for sale 4,443 4,443 — 4,443 — Loans, net 3,735,240 3,681,313 — — 3,681,313 Accrued interest receivable 27,723 27,723 — 9,757 17,966 Interest rate swaps 12,825 12,825 — 12,825 — Liabilities: Non-interest-bearing deposits $ 1,630,203 $ 1,630,203 $ — $ 1,630,203 $ — Interest-bearing deposits 3,864,201 3,505,990 — 3,505,990 — Subordinated debentures 145,027 133,816 — — 133,816 FHLB and other borrowings 130,100 130,100 — 130,100 — Accrued interest payable 3,324 3,324 — 3,324 — Interest rate swaps 12,825 12,825 — 12,825 — |
Schedule of Assets Measured at Fair Value on a Recurring Basis | Assets measured at fair value on a recurring basis are summarized below: March 31, 2023 ($ in thousands) Fair Value Fair Value Measurements Using Quoted Prices in Significant Other Significant Assets: Available-for-sale U.S. Treasury $ 125,773 $ 125,773 $ — $ — Obligations of U.S. Government agencies and sponsored entities 143,217 — 143,217 — Municipal securities 460,184 — 444,557 15,627 Mortgage-backed securities 481,553 — 481,553 — Corporate obligations 39,064 — 39,033 31 Total available-for-sale $ 1,249,791 $ 125,773 $ 1,108,360 $ 15,658 Loans held for sale $ 4,073 $ — $ 4,073 $ — Interest rate swaps $ 10,577 $ — $ 10,577 $ — Liabilities Interest rate swaps $ 10,577 $ — $ 10,577 $ — December 31, 2022 ($ in thousands) Fair Value Fair Value Measurements Using Quoted Prices in Significant Other Significant Available-for-sale U.S. Treasury $ 123,854 $ 123,854 $ — $ — Obligations of U.S. Government agencies and sponsored entities 144,369 — 144,369 — Municipal securities 457,857 — 442,740 15,117 Mortgage-backed securities 490,139 — 490,139 — Corporate obligations 40,882 — 40,851 31 Total available-for-sale $ 1,257,101 $ 123,854 $ 1,118,099 $ 15,148 Loans held for sale $ 4,443 $ — $ 4,443 $ — Interest rate swaps $ 12,825 $ — $ 12,825 $ — Liabilities: Interest rate swaps $ 12,825 $ — $ 12,825 $ — |
Schedule of Reconciliation of Activity for Assets Measured at Fair Value Based on Significant Unobservable Inputs (Level 3) | The following is a reconciliation of activity for assets measured at fair value based on significant unobservable inputs (Level 3) information. Bank-Issued Trust ($ in thousands) 2023 2022 Balance, January 1 $ 31 $ 235 Paydowns — (64) Unrealized gain included in comprehensive income — 55 Balance at March 31 $ 31 $ 226 Municipal Securities ($ in thousands) 2023 2022 Balance, January 1 $ 15,117 $ 20,126 Purchases — 4,209 Maturities, calls and paydowns (216) (4,474) Unrealized gain (loss) included in comprehensive income 726 (496) Balance at March 31 $ 15,627 $ 19,365 |
Schedule of Quantitative Information About Recurring Level 3 Fair Value Measurements | The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis at March 31, 2023 and December 31, 2022. The following tables present quantitative information about recurring Level 3 fair value measurements ($ in thousands): Trust Preferred Securities Fair Value Valuation Technique Significant Unobservable Range of Inputs March 31, 2023 $ 31 Discounted cash flow Probability of default 7.10% - 7.12% December 31, 2022 $ 31 Discounted cash flow Probability of default 6.98% - 7.19% Municipal Securities Fair Value Valuation Technique Significant Range of Inputs March 31, 2023 $ 15,627 Discounted cash flow Discount Rate 2.60% - 4.61% December 31, 2022 $ 15,117 Discounted cash flow Discount Rate 3.00% - 4.00% |
Schedule of Fair Value Measurement of Assets Measured at Fair Value on a Non-Recurring Basis and the Level Within the Fair Value Hierarchy | The following table presents the fair value measurement of assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which the fair value measurements were classified at March 31, 2023 and December 31, 2022. March 31, 2023 ($ in thousands) Fair Value Measurements Using Fair Value Quoted Prices in Significant Significant Collateral dependent loans $ 8,087 $ — $ — $ 8,087 Other real estate owned 5,066 — — 5,066 December 31, 2022 ($ in thousands) Fair Value Measurements Using Fair Value Quoted Prices in Significant Significant Collateral dependent loans $ 3,564 $ — $ — $ 3,564 Other real estate owned 4,832 — — 4,832 |
SECURITIES (Tables)
SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
SECURITIES | |
Schedule of Amortized Costs, Gross Unrealized Gains and Losses, and Estimated Fair Values | The following table summarizes the amortized cost, gross unrealized gains and losses, and estimated fair values of securities available-for-sale (“AFS”) and securities held-to-maturity at March 31, 2023 and December 31, 2022. ($ in thousands) March 31, 2023 Amortized Gross Gross Estimated Available-for-sale securities: U.S. Treasury $ 135,718 $ — $ 9,945 $ 125,773 Obligations of U.S. government agencies and sponsored entities 158,735 2 15,520 143,217 Tax-exempt and taxable obligations of states and municipal subdivisions 509,746 762 50,324 460,184 Mortgage-backed securities - residential 330,626 9 37,241 293,394 Mortgage-backed securities - commercial 209,947 56 21,844 188,159 Corporate obligations 42,622 — 3,558 39,064 Total available-for-sale $ 1,387,394 $ 829 $ 138,432 $ 1,249,791 Held-to-maturity: U.S. Treasury $ 99,677 $ — $ 4,114 $ 95,563 Obligations of U.S. government agencies and sponsored entities 33,679 12 1,549 32,142 Tax-exempt and taxable obligations of states and municipal subdivisions 247,872 8,676 13,569 242,979 Mortgage-backed securities - residential 152,636 — 15,229 137,407 Mortgage-backed securities - commercial 134,297 21 11,282 123,036 Corporate obligations 10,000 — 1,609 8,391 Total held-to-maturity $ 678,161 $ 8,709 $ 47,352 $ 639,518 ($ in thousands) December 31, 2022 Amortized Gross Gross Estimated Available-for-sale securities: U.S. Treasury $ 135,752 $ — $ 11,898 $ 123,854 Obligations of U.S. government agencies sponsored entities 163,054 3 18,688 144,369 Tax-exempt and taxable obligations of states and municipal subdivisions 519,190 598 61,931 457,857 Mortgage-backed securities - residential 341,272 11 42,041 299,242 Mortgage-backed securities - commercial 215,200 60 24,363 190,897 Corporate obligations 43,869 — 2,987 40,882 Total available-for-sale $ 1,418,337 $ 672 $ 161,908 $ 1,257,101 Held-to-maturity: U.S. Treasury $ 109,631 $ — $ 5,175 $ 104,456 Obligations of U.S. government agencies and sponsored entities 33,789 — 2,153 31,636 Tax-exempt and taxable obligations of states and municipal subdivisions 247,467 4,525 13,699 238,293 Mortgage-backed securities - residential 156,119 — 17,479 138,640 Mortgage-backed securities - commercial 134,478 7 13,798 120,687 Corporate obligations 10,000 — 1,615 8,385 Total held-to-maturity $ 691,484 $ 4,532 $ 53,919 $ 642,097 |
Schedule of Credit Quality Debt Securities Held-to-Maturity | The following table summarizes the amortized cost of debt securities held-to-maturity at March 31, 2023 and December 31, 2022, aggregated by credit quality indicators. ($ in thousands) March 31, 2023 December 31, 2022 Aaa $ 454,048 $ 467,736 Aa1/Aa2/Aa3 110,991 110,854 A1/A2 13,793 13,757 BBB 10,000 10,000 Not rated 89,329 89,137 Total $ 678,161 $ 691,484 |
Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | ($ in thousands) March 31, 2023 Amortized Fair Available-for-sale: Due less than one year $ 59,346 $ 58,055 Due after one year through five years 271,333 255,119 Due after five years through ten years 336,077 300,986 Due greater than ten years 180,065 154,078 Mortgage-backed securities - residential 330,626 293,394 Mortgage-backed securities - commercial 209,947 188,159 Total $ 1,387,394 $ 1,249,791 Held-to-maturity: Due less than one year $ 38,232 $ 37,371 Due after one year through five years 82,398 78,578 Due after five years through ten years 48,564 45,111 Due greater than ten years 222,034 218,015 Mortgage-backed securities - residential 152,636 137,407 Mortgage-backed securities - commercial 134,297 123,036 Total $ 678,161 $ 639,518 |
Schedule of Securities Classified as Available-for-Sale and Held-to-Maturity with Unrealized Losses | The following table summarizes securities in an unrealized loss position for which an allowance for credit losses has not been recorded at March 31, 2023 and December 31, 2022. The securities are aggregated by major security type and length of time in a continuous unrealized loss position: ($ in thousands) March 31, 2023 Losses < 12 Months Losses 12 Months or > Total Fair Gross Fair Gross Fair Gross Available-for-sale: U.S. Treasury $ — $ — $ 125,773 $ 9,945 $ 125,773 $ 9,945 Obligations of U.S. government agencies and sponsored entities 5,573 137 137,028 15,383 142,601 15,520 Tax-exempt and taxable obligations of state and municipal subdivisions 57,181 1,363 368,485 48,961 425,666 50,324 Mortgage-backed securities - residential 31,971 1,266 260,601 35,975 292,572 37,241 Mortgage-backed securities - commercial 29,832 1,292 153,856 20,552 183,688 21,844 Corporate obligations 23,228 1,378 15,836 2,180 39,064 3,558 Total $ 147,785 $ 5,436 $ 1,061,579 $ 132,996 $ 1,209,364 $ 138,432 Held-to-maturity: U.S. Treasury $ — $ — $ 95,562 $ 4,114 $ 95,562 $ 4,114 Obligations of U.S. government agencies and sponsored entities 31,401 1,549 — — 31,401 1,549 Tax-exempt and taxable obligations of state and municipal subdivisions 71,182 5,667 40,327 7,902 111,509 13,569 Mortgage-backed securities - residential 48,340 4,190 89,067 11,039 137,407 15,229 Mortgage-backed securities - commercial 67,344 4,760 54,749 6,522 122,093 11,282 Corporate obligations — — 8,391 1,609 8,391 1,609 Total $ 218,267 $ 16,166 $ 288,096 $ 31,186 $ 506,363 $ 47,352 ($ in thousands) December 31, 2022 Losses < 12 Months Losses 12 Months or > Total Fair Gross Fair Gross Fair Gross Available-for-sale: U.S. Treasury $ 4,563 $ 419 $ 119,292 $ 11,479 $ 123,855 $ 11,898 Obligations of U.S. government agencies and sponsored entities 34,254 2,293 109,431 16,395 143,685 18,688 Tax-exempt and taxable obligations of state and municipal subdivisions 275,202 31,152 159,508 30,779 434,710 61,931 Mortgage-backed securities - residential 76,125 4,970 222,274 37,071 298,399 42,041 Mortgage-backed securities - commercial 50,193 3,025 136,062 21,338 186,255 24,363 Corporate obligations 35,142 1,995 5,739 992 40,881 2,987 Total $ 475,479 $ 43,854 $ 752,306 $ 118,054 $ 1,227,785 $ 161,908 Held-to-maturity: U.S. Treasury $ 104,457 $ 5,175 $ — $ — $ 104,457 $ 5,175 Obligations of U.S. government agencies and sponsored entities 31,636 2,153 — — 31,636 2,153 Tax-exempt and taxable obligations of state and municipal subdivisions 127,628 13,583 15,303 116 142,931 13,699 Mortgage-backed securities - residential 138,639 17,479 — — 138,639 17,479 Mortgage-backed securities - commercial 119,758 13,798 — — 119,758 13,798 Corporate obligations 8,385 1,615 — — 8,385 1,615 Total $ 530,503 $ 53,803 $ 15,303 $ 116 $ 545,806 $ 53,919 |
LOANS (Tables)
LOANS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Composition of Loan Portfolio | The following table shows the composition of the loan portfolio: ($ in thousands) March 31, 2023 December 31, 2022 Loans held for sale Mortgage loans held for sale $ 4,073 $ 4,443 Total LHFS $ 4,073 $ 4,443 Loans held for investment Commercial, financial and agriculture (1) $ 785,676 $ 536,192 Commercial real estate 2,862,145 2,135,263 Consumer real estate 1,268,776 1,058,999 Consumer installment 53,179 43,703 Total loans 4,969,776 3,774,157 Less allowance for credit losses (52,450) (38,917) Net LHFI $ 4,917,326 $ 3,735,240 ____________________________________________________________ (1) Loan balance includes $568 thousand and $710 thousand in Paycheck Protection Program (“PPP”) loans as of March 31, 2023 and December 31, 2022, respectively. |
Schedule of Company's Loans that are Past Due and Nonaccrual Loans Including PCD Loans | The following tables present the aging of the amortized cost basis in past due loans in addition to those loans classified as nonaccrual including purchase credit deteriorated (“PCD”) loans: ($ in thousands) March 31, 2023 Past Due Past Due Nonaccrual PCD Total Total Nonaccrual Commercial, financial and agriculture (1) $ 2,405 $ 70 $ 92 $ 1,563 $ 4,130 $ 785,676 $ 98 Commercial real estate 2,151 — 8,916 1,557 12,624 2,862,145 6,230 Consumer real estate 6,101 3 3,381 1,790 11,275 1,268,776 1,118 Consumer installment 214 — 14 — 228 53,179 — Total $ 10,871 $ 73 $ 12,403 $ 4,910 $ 28,257 $ 4,969,776 $ 7,446 ___________________________________________________________ (1) Total loan balance includes $568 thousand in PPP loans as of March 31, 2023. December 31, 2022 ($ in thousands) Past Due Past Due 90 Nonaccrual PCD Total Total Nonaccrual Commercial, financial and agriculture (1) $ 220 $ — $ 19 $ — $ 239 $ 536,192 $ — Commercial real estate 1,984 — 7,445 1,129 10,558 2,135,263 4,560 Consumer real estate 3,386 289 2,965 1,032 7,672 1,058,999 791 Consumer installment 173 — 1 — 174 43,703 — Total $ 5,763 $ 289 $ 10,430 $ 2,161 $ 18,643 $ 3,774,157 $ 5,351 ___________________________________________________________ (1) Total loan balance includes $710 thousand in PPP loans as of December 31, 2022. |
Summary of Carrying Amount of Loans Acquired in Business Combination with more than Insignificant Deterioration of Credit Quality since Origination | The following table shows the carrying amount of loans acquired in the BBI and HSBI acquisitions for which there was, at the date of acquisition, more than insignificant deterioration of credit quality since origination: ($ in thousands) BBI HSBI Purchase price of loans at acquisition $ 27,669 $ 52,356 Allowance for credit losses at acquisition 1,303 3,176 Non-credit discount (premium) at acquisition 530 2,325 Par value of acquired loans at acquisition $ 29,502 $ 57,857 |
Schedule of Troubled Debt Restructurings | The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below: ($ in thousands) Combination Payment Deferral and Payment Modification Percentage of Total Loans Held for Investment Commercial real estate $ 301 0.01 % Total $ 301 0.01 % The following table presents LHFI by class modified as TDRs that occurred during the three months ended March 31, 2022. ($ in thousands) Three Months Ended March 31, 2022 Number of Outstanding Outstanding Commercial real estate 1 $ 230 $ 230 Total 1 $ 230 $ 230 The TDRs presented above increased the ACL $1 thousand and resulted in no charge-offs for the three months period ended March 31, 2022. The following table presents loans by class modified as TDRs for which there was a payment default within twelve months following the modification for the three months ended March 31, 2022 ($ in thousands). Troubled Debt Restructurings That Subsequently Defaulted: Three Months Ended March 31, 2022 Number of Recorded Commercial real estate 3 $ 4,606 Consumer real estate 3 141 Total 6 $ 4,747 The modifications described above included one of the following or a combination of the following: maturity date extensions, interest only payments, amortizations were extended beyond what would be available on similar type loans, and payment waiver. No interest rate concessions were given on these loans nor were any of these loans written down. A loan is considered to be in a payment default once it is 30 days contractually past due under the modified terms. The TDRs presented above increased the ACL $1.5 million and resulted in no charge-offs for the three months period ended March 31, 2022. The following tables represents the Company’s TDRs at December 31, 2022: December 31, 2022 Current Past Due Past Due 90 Nonaccrual Total ($ in thousands) Commercial, financial and agriculture $ 49 $ — $ — $ — $ 49 Commercial real estate 13,561 — — 6,121 19,682 Consumer real estate 1,077 — — 929 2,006 Consumer installment 14 — — — 14 Total $ 14,701 $ — $ — $ 7,050 $ 21,751 Allowance for credit losses $ 350 $ — $ — $ 491 $ 841 |
Collateral Dependent Loans Evaluated by Class | The following table presents the amortized cost basis of collateral dependent individually evaluated loans by class of loans as of March 31, 2023 and December 31, 2022: March 31, 2023 ($ in thousands) Real Property Equipment Miscellaneous Total Commercial, financial and agriculture $ — $ 171 $ 701 $ 872 Commercial real estate 6,230 — — 6,230 Consumer real estate 1,342 — — 1,342 Total $ 7,572 $ 171 $ 701 $ 8,444 December 31, 2022 ($ in thousands) Real Property Total Commercial real estate $ 4,560 $ 4,560 Consumer real estate 998 998 Total $ 5,558 $ 5,558 |
Schedule of Amortized Cost Basis of Loans by Credit Quality Indicator and Class of Loans Based on the Most Recent Analysis Performed and Risk Category of Loans by Class of Loans | The tables below present the amortized cost basis of loans by credit quality indicator and class of loans based on the most recent analysis performed at March 31, 2023 and December 31, 2022. Revolving loans converted to term as of the three months ended March 31, 2023 and December 31, 2022 were not material to the total loan portfolio. As of March 31, 2023 Term Loans Amortized Cost Basis by Origination Year Revolving Total ($ in thousands) 2023 2022 2021 2020 2019 Prior Commercial, financial and agriculture: Risk Rating Pass $ 30,008 $ 164,576 $ 123,428 $ 59,554 $ 50,826 $ 84,846 $ 264,482 $ 777,720 Special mention — — 2,358 536 399 1,474 305 5,072 Substandard 9 291 181 334 908 1,136 25 2,884 Doubtful — — — — — — — — Total commercial, financial and agriculture $ 30,017 $ 164,867 $ 125,967 $ 60,424 $ 52,133 $ 87,456 $ 264,812 $ 785,676 Current period gross write offs $ — $ — $ 3 $ — $ — $ — $ — $ 3 Commercial real estate: Risk Rating Pass $ 37,110 $ 774,221 $ 586,611 $ 405,322 $ 285,453 $ 650,549 $ 9,306 $ 2,748,572 Special mention — 7,558 9,379 3,342 11,190 28,141 173 59,783 Substandard — 2,714 3,297 873 5,375 41,531 — 53,790 Doubtful — — — — — — — — Total commercial real estate $ 37,110 $ 784,493 $ 599,287 $ 409,537 $ 302,018 $ 720,221 $ 9,479 $ 2,862,145 Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer real estate: Risk Rating Pass $ 35,440 $ 397,923 $ 257,557 $ 148,394 $ 65,976 $ 194,847 $ 147,998 $ 1,248,135 Special mention — 77 179 — 92 4,270 2,026 6,644 Substandard — 538 673 1,579 1,075 8,978 1,154 13,997 Doubtful — — — — — — — — Total consumer real estate $ 35,440 $ 398,538 $ 258,409 $ 149,973 $ 67,143 $ 208,095 $ 151,178 $ 1,268,776 Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer installment: Risk Rating Pass $ 6,458 $ 19,656 $ 11,402 $ 5,236 $ 2,282 $ 1,989 $ 6,095 $ 53,118 Special mention — — — 1 — — — 1 Substandard — 14 20 23 — 3 — 60 Doubtful — — — — — — — — Total consumer installment $ 6,458 $ 19,670 $ 11,422 $ 5,260 $ 2,282 $ 1,992 $ 6,095 $ 53,179 Current period gross write offs $ — $ 114 $ 47 $ 85 $ 17 $ 75 $ — $ 338 Total Pass $ 109,016 $ 1,356,376 $ 978,998 $ 618,506 $ 404,537 $ 932,231 $ 427,881 $ 4,827,545 Special mention — 7,635 11,916 3,879 11,681 33,885 2,504 71,500 Substandard 9 3,557 4,171 2,809 7,358 51,648 1,179 70,731 Doubtful — — — — — — — — Total $ 109,025 $ 1,367,568 $ 995,085 $ 625,194 $ 423,576 $ 1,017,764 $ 431,564 $ 4,969,776 Current period gross write offs $ — $ 114 $ 50 $ 85 $ 17 $ 75 $ — $ 341 As of December 31, 2022 Term Loans Amortized Cost Basis by Origination Year Revolving Total ($ in thousands) 2022 2021 2020 2019 2018 Prior Commercial, financial and: agriculture Risk Rating Pass $ 181,761 $ 141,174 $ 55,690 $ 53,954 $ 43,441 $ 52,038 $ 181 $ 528,239 Special mention 380 5,188 1,664 — — 412 — 7,644 Substandard 50 — — 34 33 192 — 309 Doubtful — — — — — — — — Total commercial, financial and agriculture $ 182,191 $ 146,362 $ 57,354 $ 53,988 $ 43,474 $ 52,642 $ 181 $ 536,192 Commercial real estate: Risk Rating Pass $ 582,895 $ 436,661 $ 305,140 $ 217,626 $ 140,682 $ 368,185 $ 1,765 $ 2,052,954 Special mention 672 1,345 3,938 11,643 9,885 16,612 — 44,095 Substandard 50 2,830 908 1,694 4,797 27,935 — 38,214 Doubtful — — — — — — — — Total commercial real estate $ 583,617 $ 440,836 $ 309,986 $ 230,963 $ 155,364 $ 412,732 $ 1,765 $ 2,135,263 Consumer real estate: Risk Rating Pass $ 325,853 $ 226,355 $ 136,052 $ 59,376 $ 51,515 $ 129,923 $ 112,278 $ 1,041,352 Special mention — — — — 823 3,846 — 4,669 Substandard 519 554 1,481 648 1,706 6,894 1,176 12,978 Doubtful — — — — — — — — Total consumer real estate $ 326,372 $ 226,909 $ 137,533 $ 60,024 $ 54,044 $ 140,663 $ 113,454 $ 1,058,999 Consumer installment: Risk Rating Pass $ 18,925 $ 11,618 $ 5,031 $ 2,078 $ 832 $ 1,445 $ 3,725 $ 43,654 Special mention — — — — — — — — Substandard 4 13 24 — 3 5 — 49 Doubtful — — — — — — — — Total consumer installment $ 18,929 $ 11,631 $ 5,055 $ 2,078 $ 835 $ 1,450 $ 3,725 $ 43,703 Total Pass $ 1,109,434 $ 815,808 $ 501,913 $ 333,034 $ 236,470 $ 551,591 $ 117,949 $ 3,666,199 Special mention 1,052 6,533 5,602 11,643 10,708 20,870 — 56,408 Substandard 623 3,397 2,413 2,376 6,539 35,026 1,176 51,550 Doubtful — — — — — — — — Total $ 1,111,109 $ 825,738 $ 509,928 $ 347,053 $ 253,717 $ 607,487 $ 119,125 $ 3,774,157 |
Financing Receivable, Allowance for Credit Loss | The following table presents the activity in the allowance for credit losses by portfolio segment for the three months ended March 31, 2023 and 2022: ($ in thousands) Three Months Ended March 31, 2023 Commercial, Commercial Consumer Consumer Total Allowance for credit losses: Beginning balance $ 6,349 $ 20,389 $ 11,599 $ 580 $ 38,917 Initial allowance on PCD loans 727 2,260 182 7 3,176 Provision for credit losses 2,327 5,388 2,402 383 10,500 Loans charged-off (3) — — (338) (341) Recoveries 43 15 18 122 198 Total ending allowance balance $ 9,443 $ 28,052 $ 14,201 $ 754 $ 52,450 ($ in thousands) Three Months Ended March 31, 2022 Commercial, Commercial Consumer Consumer Total Allowance for credit losses: Beginning balance $ 4,873 $ 17,552 $ 7,889 $ 428 $ 30,742 Provision for credit losses — — — — — Loans charged-off (52) (3) (7) (169) (231) Recoveries 53 224 610 222 1,109 Total ending allowance balance $ 4,874 $ 17,773 $ 8,492 $ 481 $ 31,620 The initial ACL on PCD loans recorded in March 2023, of $3.2 million was related to the HSBI acquisition. The 2023 provision for credit losses includes $10.7 million associated with day one post-merger accounting provision recorded for non-PCD loans and unfunded commitments acquired in the HSBI merger. The Company recorded a $10.5 million provision for credit losses for the three months ended March 31, 2023, compared to no provision for the same periods in 2022. The increase in the provision is related to the HSBI acquisition and loan growth. The following table provides the ending balance in the Company’s LHFI and the ACL, broken down by portfolio segment as of March 31, 2023 and December 31, 2022 ($ in thousands). March 31, 2023 Commercial, Commercial Consumer Consumer Total LHFI Individually evaluated $ 872 $ 6,230 $ 1,342 $ — $ 8,444 Collectively evaluated 784,804 2,855,915 1,267,434 53,179 4,961,332 Total $ 785,676 $ 2,862,145 $ 1,268,776 $ 53,179 $ 4,969,776 Allowance for Credit Losses Individually evaluated $ 337 $ — $ 20 $ — $ 357 Collectively evaluated 9,106 28,052 14,181 754 52,093 Total $ 9,443 $ 28,052 $ 14,201 $ 754 $ 52,450 December 31, 2022 Commercial, Commercial Consumer Consumer Total LHFI Individually evaluated $ — $ 4,560 $ 998 $ — $ 5,558 Collectively evaluated 536,192 2,130,703 1,058,001 43,703 3,768,599 Total $ 536,192 $ 2,135,263 $ 1,058,999 $ 43,703 $ 3,774,157 Allowance for Credit Losses Individually evaluated $ — $ — $ 5 $ — $ 5 Collectively evaluated 6,349 20,389 11,594 580 38,912 Total $ 6,349 $ 20,389 $ 11,599 $ 580 $ 38,917 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table provides outstanding interest rate swaps at March 31, 2023. ($ in thousands) March 31, 2023 Notional amount $ 332,873 Weighted average pay rate 4.4 % Weighted average receive rate 4.4 % Weighted average maturity in years 5.96 |
Schedule of Derivative Liabilities at Fair Value | The following table provides the fair value of interest rate swap contracts at March 31, 2023 included in other assets and other liabilities. ($ in thousands) March 31, 2023 Derivative Assets Derivative Liabilities Interest rate swap contracts $ 10,577 $ 10,577 |
Schedule of Derivative Assets at Fair Value | The following table provides the fair value of interest rate swap contracts at March 31, 2023 included in other assets and other liabilities. ($ in thousands) March 31, 2023 Derivative Assets Derivative Liabilities Interest rate swap contracts $ 10,577 $ 10,577 |
SUMMARY OF ORGANIZATION - Addit
SUMMARY OF ORGANIZATION - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||
Feb. 23, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
SUMMARY OF ORGANIZATION | |||||
Total assets | $ 8,017,316 | $ 6,461,717 | |||
Loans, excluding loans held for sale | 4,917,000 | ||||
Deposits | 6,667,956 | 5,494,404 | |||
Stockholders' equity | 896,427 | $ 590,440 | $ 646,663 | $ 676,172 | |
Net income | $ 16,271 | $ 16,829 | |||
Dividends on common stock, per share | $ 0.21 | ||||
Dividends declared | $ 0.21 | $ 0.17 |
BUSINESS COMBINATIONS - Narrati
BUSINESS COMBINATIONS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Jan. 01, 2023 | Aug. 01, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
BUSINESS COMBINATIONS | |||||
Goodwill | $ 271,804 | $ 180,254 | |||
Provision for credit loss | 11,000 | $ 0 | |||
Heritage Southeast Bank | |||||
BUSINESS COMBINATIONS | |||||
Entity shares issued per acquiree share | 0.965 | ||||
Purchase price | $ 221,538 | ||||
Business acquisition, equity interest issued or issuable, number of shares (in shares) | 6,920,909 | ||||
Cash received in lieu of fractional shares | $ 16 | ||||
Goodwill | 91,445 | ||||
Core deposit intangible | 43,739 | ||||
Provision for credit loss | 3,200 | ||||
Business combination, acquisition related costs | 1,000 | ||||
Heritage Southeast Bank | Core Deposits | |||||
BUSINESS COMBINATIONS | |||||
Core deposit intangible | $ 43,700 | ||||
Acquired finite-lived intangible assets, weighted average useful life | 10 years | ||||
Beach Bancorp | |||||
BUSINESS COMBINATIONS | |||||
Entity shares issued per acquiree share | 0.1711 | ||||
Purchase price | $ 101,470 | ||||
Business acquisition, equity interest issued or issuable, number of shares (in shares) | 3,498,936 | ||||
Cash received in lieu of fractional shares | $ 1 | ||||
Goodwill | 21,822 | ||||
Core deposit intangible | 9,791 | ||||
Provision for credit loss | $ 1,300 | ||||
Business combination, acquisition related costs | $ 820 | ||||
Assumed options, additional shares | 310,427 | ||||
Beach Bancorp | Core Deposits | |||||
BUSINESS COMBINATIONS | |||||
Acquired finite-lived intangible assets, weighted average useful life | 10 years |
BUSINESS COMBINATIONS - Schedul
BUSINESS COMBINATIONS - Schedule of Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jan. 01, 2023 | Aug. 01, 2022 | Mar. 31, 2023 | Dec. 31, 2022 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||
Goodwill | $ 271,804 | $ 180,254 | ||
Heritage Southeast Bank | ||||
Business Combination, Consideration Transferred [Abstract] | ||||
Cash and stock | $ 221,538 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||
Cash | 106,973 | |||
Investments | 172,775 | |||
Loans | 1,155,712 | |||
Core deposit intangible | 43,739 | |||
Personal and real property | 35,963 | |||
Other real estate | 857 | |||
Bank owned life insurance | 35,579 | |||
Deferred tax asset | 6,761 | |||
Interest receivable | 4,349 | |||
Other assets | 3,103 | |||
Total assets | 1,565,811 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||
Deposits | 1,392,432 | |||
Borrowings | 9,015 | |||
Other liabilities | 34,271 | |||
Total liabilities | 1,435,718 | |||
Net assets acquired | 130,093 | |||
Goodwill | $ 91,445 | |||
Beach Bancorp | ||||
Business Combination, Consideration Transferred [Abstract] | ||||
Cash and stock | $ 101,470 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||
Cash | 23,939 | |||
Investments | 22,907 | |||
Loans | 482,903 | |||
Core deposit intangible | 9,791 | |||
Personal and real property | 13,825 | |||
Other real estate | 8,797 | |||
Bank owned life insurance | 10,092 | |||
Deferred tax asset | 28,105 | |||
Other assets | 9,649 | |||
Total assets | 610,008 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||
Deposits | 490,588 | |||
Borrowings | 25,000 | |||
Other liabilities | 14,772 | |||
Total liabilities | 530,360 | |||
Net assets acquired | 79,648 | |||
Goodwill | $ 21,822 |
BUSINESS COMBINATIONS - Busines
BUSINESS COMBINATIONS - Business Acquisition, Pro Forma Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
BUSINESS COMBINATIONS | ||
Total revenue | $ 77,538 | $ 59,587 |
Income before income taxes | 24,661 | 27,532 |
Net interest income | ||
BUSINESS COMBINATIONS | ||
Total revenue | 64,926 | 42,722 |
Non-interest income | ||
BUSINESS COMBINATIONS | ||
Total revenue | $ 12,612 | $ 16,865 |
EARNINGS APPLICABLE TO COMMON_3
EARNINGS APPLICABLE TO COMMON SHAREHOLDERS - Narrative (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 0 |
Shares of restricted stock granted | 118,689 | 82,123 |
EARNINGS APPLICABLE TO COMMON_4
EARNINGS APPLICABLE TO COMMON SHAREHOLDERS - Earnings Available to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net income available to common stockholders, basic | $ 16,271 | $ 16,829 |
Net income available to common stockholders, diluted | $ 16,271 | $ 16,829 |
Effect of dilutive shares: | ||
Weighted average number of shares outstanding, basic (in shares) | 31,309,458 | 20,697,946 |
Restricted stock grants (in shares) | 231,755 | 149,051 |
Weighted average number of shares outstanding, diluted (in shares) | 31,541,213 | 20,846,997 |
Basic earnings per share (in dollars per share) | $ 0.52 | $ 0.81 |
Diluted earnings per share (in dollars per share) | $ 0.52 | $ 0.81 |
FINANCIAL INSTRUMENTS WITH OF_3
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK - Schedule of Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fixed Rate | ||
Financial instruments with off-balance-sheet risk | ||
Commitments to make loans | $ 39,123 | $ 43,227 |
Unused lines of credit | 247,995 | 243,043 |
Standby letters of credit | 9,299 | 4,260 |
Variable Rate | ||
Financial instruments with off-balance-sheet risk | ||
Commitments to make loans | 29,041 | 15,758 |
Unused lines of credit | 360,488 | 404,025 |
Standby letters of credit | $ 8,909 | $ 9,909 |
FINANCIAL INSTRUMENTS WITH OF_4
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK - Additional Information (Details) - Off balance sheet risk | 3 Months Ended |
Mar. 31, 2023 | |
Minimum | |
Concentration Risk [Line Items] | |
Debt instrument, interest rate, stated percentage | 1% |
Debt instrument, term | 1 year |
Maximum | |
Concentration Risk [Line Items] | |
Debt instrument, interest rate, stated percentage | 18% |
Debt instrument, term | 30 years |
FINANCIAL INSTRUMENTS WITH OF_5
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK - Changes in the ACL on OBSC Exposures (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||
Balance at beginning of period | $ 1,325,000 | $ 1,070,000 |
Credit loss expense related to OBSC exposures | 500,000 | 0 |
Balance at end of period | $ 1,825,000 | $ 1,070,000 |
FAIR VALUE DISCLOSURES AND RE_3
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Narrative (Details) | Mar. 31, 2023 |
Measurement Input, Discount Rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impaired loans and other real estate owned | 10 |
FAIR VALUE DISCLOSURES AND RE_4
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Fair Values of Off-Balance Sheet Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Cash and cash equivalents | $ 333,491 | $ 145,315 |
Securities available-for-sale | 1,249,791 | 1,257,101 |
Loans held for sale | 4,073 | 4,443 |
Securities held-to-maturity | 639,518 | 642,097 |
Net loans held for investment | 4,917,326 | 3,735,240 |
Accrued interest receivable | 29,983 | 27,723 |
Liabilities: | ||
Noninterest-bearing | 2,082,441 | 1,630,203 |
Interest-bearing deposits | 4,585,515 | 3,864,201 |
Subordinated debentures | 154,127 | 145,027 |
Accrued interest payable | 4,087 | 3,324 |
Quoted Prices (Level 1) | ||
Assets: | ||
Cash and cash equivalents | 333,491 | 145,315 |
Securities available-for-sale | 125,773 | 123,854 |
Loans held for sale | 0 | 0 |
Securities held-to-maturity | 0 | 0 |
Net loans held for investment | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Liabilities: | ||
Noninterest-bearing | 0 | 0 |
Interest-bearing deposits | 0 | 0 |
Subordinated debentures | 0 | 0 |
FHLB and other borrowings | 0 | 0 |
Accrued interest payable | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale | 1,108,360 | 1,118,099 |
Loans held for sale | 4,073 | 4,443 |
Securities held-to-maturity | 639,518 | 642,097 |
Net loans held for investment | 0 | 0 |
Accrued interest receivable | 8,408 | 9,757 |
Liabilities: | ||
Noninterest-bearing | 2,082,441 | 1,630,203 |
Interest-bearing deposits | 4,270,490 | 3,505,990 |
Subordinated debentures | 0 | 0 |
FHLB and other borrowings | 250,000 | 130,100 |
Accrued interest payable | 4,087 | 3,324 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale | 15,658 | 15,148 |
Loans held for sale | 0 | 0 |
Securities held-to-maturity | 0 | 0 |
Net loans held for investment | 4,793,811 | 3,681,313 |
Accrued interest receivable | 21,575 | 17,966 |
Liabilities: | ||
Noninterest-bearing | 0 | 0 |
Interest-bearing deposits | 0 | 0 |
Subordinated debentures | 134,532 | 133,816 |
FHLB and other borrowings | 0 | 0 |
Accrued interest payable | 0 | 0 |
Carrying Amount | ||
Assets: | ||
Cash and cash equivalents | 333,491 | 145,315 |
Securities available-for-sale | 1,249,791 | 1,257,101 |
Loans held for sale | 4,073 | 4,443 |
Securities held-to-maturity | 678,161 | 691,484 |
Net loans held for investment | 4,917,326 | 3,735,240 |
Accrued interest receivable | 29,983 | 27,723 |
Liabilities: | ||
Noninterest-bearing | 2,082,441 | 1,630,203 |
Interest-bearing deposits | 4,585,515 | 3,864,201 |
Subordinated debentures | 154,127 | 145,027 |
FHLB and other borrowings | 250,000 | 130,100 |
Accrued interest payable | 4,087 | 3,324 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 333,491 | 145,315 |
Securities available-for-sale | 1,249,791 | 1,257,101 |
Loans held for sale | 4,073 | 4,443 |
Securities held-to-maturity | 639,518 | 642,097 |
Net loans held for investment | 4,793,811 | 3,681,313 |
Accrued interest receivable | 29,983 | 27,723 |
Liabilities: | ||
Noninterest-bearing | 2,082,441 | 1,630,203 |
Interest-bearing deposits | 4,270,490 | 3,505,990 |
Subordinated debentures | 134,532 | 133,816 |
FHLB and other borrowings | 250,000 | 130,100 |
Accrued interest payable | 4,087 | 3,324 |
Interest rate swap contracts | ||
Assets: | ||
Interest rate swaps | 10,577 | |
Liabilities: | ||
Interest rate swaps | 10,577 | |
Interest rate swap contracts | Quoted Prices (Level 1) | ||
Assets: | ||
Interest rate swaps | 0 | 0 |
Liabilities: | ||
Interest rate swaps | 0 | 0 |
Interest rate swap contracts | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Interest rate swaps | 10,577 | 12,825 |
Liabilities: | ||
Interest rate swaps | 10,577 | 12,825 |
Interest rate swap contracts | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Interest rate swaps | 0 | 0 |
Liabilities: | ||
Interest rate swaps | 0 | 0 |
Interest rate swap contracts | Carrying Amount | ||
Assets: | ||
Interest rate swaps | 10,577 | 12,825 |
Liabilities: | ||
Interest rate swaps | 10,577 | 12,825 |
Interest rate swap contracts | Estimated Fair Value | ||
Assets: | ||
Interest rate swaps | 10,577 | 12,825 |
Liabilities: | ||
Interest rate swaps | $ 10,577 | $ 12,825 |
FAIR VALUE DISCLOSURES AND RE_5
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Fair Value of Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | $ 1,249,791 | $ 1,257,101 |
Loans held for sale | 4,073 | 4,443 |
Interest rate swap contracts | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Interest rate swaps | 10,577 | |
Interest rate swaps | 10,577 | |
Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 1,249,791 | 1,257,101 |
Recurring basis | Interest rate swap contracts | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Interest rate swaps | 10,577 | 12,825 |
Interest rate swaps | 10,577 | 12,825 |
U.S. Treasury | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 125,773 | 123,854 |
Obligations of U.S. Government agencies and sponsored entities | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 143,217 | 144,369 |
Municipal securities | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 460,184 | 457,857 |
Mortgage-backed securities | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 481,553 | 490,139 |
Corporate obligations | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 39,064 | 40,882 |
Quoted Prices (Level 1) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 125,773 | 123,854 |
Loans held for sale | 0 | 0 |
Quoted Prices (Level 1) | Interest rate swap contracts | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Interest rate swaps | 0 | 0 |
Interest rate swaps | 0 | 0 |
Quoted Prices (Level 1) | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 125,773 | 123,854 |
Quoted Prices (Level 1) | Recurring basis | Interest rate swap contracts | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Interest rate swaps | 0 | 0 |
Interest rate swaps | 0 | 0 |
Quoted Prices (Level 1) | U.S. Treasury | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 125,773 | 123,854 |
Quoted Prices (Level 1) | Obligations of U.S. Government agencies and sponsored entities | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Quoted Prices (Level 1) | Municipal securities | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Quoted Prices (Level 1) | Mortgage-backed securities | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Quoted Prices (Level 1) | Corporate obligations | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 1,108,360 | 1,118,099 |
Loans held for sale | 4,073 | 4,443 |
Significant Other Observable Inputs (Level 2) | Interest rate swap contracts | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Interest rate swaps | 10,577 | 12,825 |
Interest rate swaps | 10,577 | 12,825 |
Significant Other Observable Inputs (Level 2) | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 1,108,360 | 1,118,099 |
Significant Other Observable Inputs (Level 2) | Recurring basis | Interest rate swap contracts | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Interest rate swaps | 10,577 | 12,825 |
Interest rate swaps | 10,577 | 12,825 |
Significant Other Observable Inputs (Level 2) | U.S. Treasury | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Obligations of U.S. Government agencies and sponsored entities | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 143,217 | 144,369 |
Significant Other Observable Inputs (Level 2) | Municipal securities | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 444,557 | 442,740 |
Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 481,553 | 490,139 |
Significant Other Observable Inputs (Level 2) | Corporate obligations | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 39,033 | 40,851 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 15,658 | 15,148 |
Loans held for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Interest rate swap contracts | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Interest rate swaps | 0 | 0 |
Interest rate swaps | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 15,658 | 15,148 |
Significant Unobservable Inputs (Level 3) | Recurring basis | Interest rate swap contracts | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Interest rate swaps | 0 | 0 |
Interest rate swaps | 0 | 0 |
Significant Unobservable Inputs (Level 3) | U.S. Treasury | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Obligations of U.S. Government agencies and sponsored entities | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Municipal securities | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 15,627 | 15,117 |
Significant Unobservable Inputs (Level 3) | Mortgage-backed securities | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate obligations | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | $ 31 | $ 31 |
FAIR VALUE DISCLOSURES AND RE_6
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Reconciliation of Activity for Assets Measured at Fair Value based on Significant Unobservable (Non-market) Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Bank-Issued Trust Preferred Securities | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Balance, January 1 | $ 31 | $ 235 |
Paydowns | 0 | (64) |
Unrealized gain included in comprehensive income | 0 | 55 |
Balance at March 31 | 31 | 226 |
Municipal securities | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Balance, January 1 | 15,117 | 20,126 |
Purchases | 0 | 4,209 |
Maturities, calls and paydowns | (216) | (4,474) |
Unrealized gain included in comprehensive income | 726 | (496) |
Balance at March 31 | $ 15,627 | $ 19,365 |
FAIR VALUE DISCLOSURES AND RE_7
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Quantitative Information About Recurring Level 3 Fair Value Measurements (Details) $ in Thousands | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Quantitative Information About Recurring Fair Value Measurements [Line Items] | ||
Securities available-for-sale | $ 1,249,791 | $ 1,257,101 |
Trust Preferred Securities | Valuation Technique, Discounted Cash Flow | ||
Quantitative Information About Recurring Fair Value Measurements [Line Items] | ||
Securities available-for-sale | $ 31 | $ 31 |
Trust Preferred Securities | Measurement Input, Default Rate | Valuation Technique, Discounted Cash Flow | Minimum | ||
Quantitative Information About Recurring Fair Value Measurements [Line Items] | ||
Range of Inputs | 0.0710 | 0.0698 |
Trust Preferred Securities | Measurement Input, Default Rate | Valuation Technique, Discounted Cash Flow | Maximum | ||
Quantitative Information About Recurring Fair Value Measurements [Line Items] | ||
Range of Inputs | 0.0712 | 0.0719 |
Municipal securities | Valuation Technique, Discounted Cash Flow | ||
Quantitative Information About Recurring Fair Value Measurements [Line Items] | ||
Securities available-for-sale | $ 15,627 | $ 15,117 |
Municipal securities | Measurement Input, Discount Rate | Valuation Technique, Discounted Cash Flow | Minimum | ||
Quantitative Information About Recurring Fair Value Measurements [Line Items] | ||
Range of Inputs | 0.0260 | 0.0300 |
Municipal securities | Measurement Input, Discount Rate | Valuation Technique, Discounted Cash Flow | Maximum | ||
Quantitative Information About Recurring Fair Value Measurements [Line Items] | ||
Range of Inputs | 0.0461 | 0.0400 |
FAIR VALUE DISCLOSURES AND RE_8
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Fair Value of Assets Measured on Nonrecurring Basis (Details) - Fair Value, Nonrecurring - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | $ 8,087 | $ 3,564 |
Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 5,066 | 4,832 |
Quoted Prices (Level 1) | Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Quoted Prices (Level 1) | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 8,087 | 3,564 |
Significant Unobservable Inputs (Level 3) | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | $ 5,066 | $ 4,832 |
SECURITIES - Summary of Amortiz
SECURITIES - Summary of Amortized Cost and Fair Value of Available-For-Sale Securities and Held-To-Maturity Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Available-for-sale securities: | ||
Amortized Cost | $ 1,387,394 | $ 1,418,337 |
Gross Unrealized Gains | 829 | 672 |
Gross Unrealized Losses | 138,432 | 161,908 |
Securities available-for-sale | 1,249,791 | 1,257,101 |
Held-to-maturity: | ||
Securities held to maturity, net of allowance for credit losses of $0 (fair value: $639,518 - 2023; $642,097 - 2022) | 678,161 | 691,484 |
Gross Unrealized Gains | 8,709 | 4,532 |
Gross Unrealized Losses | 47,352 | 53,919 |
Estimated Fair Value | 639,518 | 642,097 |
U.S. Treasury | ||
Available-for-sale securities: | ||
Amortized Cost | 135,718 | 135,752 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 9,945 | 11,898 |
Securities available-for-sale | 125,773 | 123,854 |
Held-to-maturity: | ||
Securities held to maturity, net of allowance for credit losses of $0 (fair value: $639,518 - 2023; $642,097 - 2022) | 99,677 | 109,631 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 4,114 | 5,175 |
Estimated Fair Value | 95,563 | 104,456 |
Obligations of U.S. government agencies and sponsored entities | ||
Available-for-sale securities: | ||
Amortized Cost | 158,735 | 163,054 |
Gross Unrealized Gains | 2 | 3 |
Gross Unrealized Losses | 15,520 | 18,688 |
Securities available-for-sale | 143,217 | 144,369 |
Held-to-maturity: | ||
Securities held to maturity, net of allowance for credit losses of $0 (fair value: $639,518 - 2023; $642,097 - 2022) | 33,679 | 33,789 |
Gross Unrealized Gains | 12 | 0 |
Gross Unrealized Losses | 1,549 | 2,153 |
Estimated Fair Value | 32,142 | 31,636 |
Tax-exempt and taxable obligations of states and municipal subdivisions | ||
Available-for-sale securities: | ||
Amortized Cost | 509,746 | 519,190 |
Gross Unrealized Gains | 762 | 598 |
Gross Unrealized Losses | 50,324 | 61,931 |
Securities available-for-sale | 460,184 | 457,857 |
Held-to-maturity: | ||
Securities held to maturity, net of allowance for credit losses of $0 (fair value: $639,518 - 2023; $642,097 - 2022) | 247,872 | 247,467 |
Gross Unrealized Gains | 8,676 | 4,525 |
Gross Unrealized Losses | 13,569 | 13,699 |
Estimated Fair Value | 242,979 | 238,293 |
Mortgage-backed securities - residential | ||
Available-for-sale securities: | ||
Amortized Cost | 330,626 | 341,272 |
Gross Unrealized Gains | 9 | 11 |
Gross Unrealized Losses | 37,241 | 42,041 |
Securities available-for-sale | 293,394 | 299,242 |
Held-to-maturity: | ||
Securities held to maturity, net of allowance for credit losses of $0 (fair value: $639,518 - 2023; $642,097 - 2022) | 152,636 | 156,119 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 15,229 | 17,479 |
Estimated Fair Value | 137,407 | 138,640 |
Mortgage-backed securities - commercial | ||
Available-for-sale securities: | ||
Amortized Cost | 209,947 | 215,200 |
Gross Unrealized Gains | 56 | 60 |
Gross Unrealized Losses | 21,844 | 24,363 |
Securities available-for-sale | 188,159 | 190,897 |
Held-to-maturity: | ||
Securities held to maturity, net of allowance for credit losses of $0 (fair value: $639,518 - 2023; $642,097 - 2022) | 134,297 | 134,478 |
Gross Unrealized Gains | 21 | 7 |
Gross Unrealized Losses | 11,282 | 13,798 |
Estimated Fair Value | 123,036 | 120,687 |
Corporate obligations | ||
Available-for-sale securities: | ||
Amortized Cost | 42,622 | 43,869 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 3,558 | 2,987 |
Securities available-for-sale | 39,064 | 40,882 |
Held-to-maturity: | ||
Securities held to maturity, net of allowance for credit losses of $0 (fair value: $639,518 - 2023; $642,097 - 2022) | 10,000 | 10,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 1,609 | 1,615 |
Estimated Fair Value | $ 8,391 | $ 8,385 |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) | Mar. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) security | Oct. 31, 2022 USD ($) |
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt securities, HTM, accumulated unrecognized loss, transferred from AFS | $ 36,800,000 | ||
Credit loss recognized | $ 0 | $ 0 | |
Accrued interest receivable | 5,200,000 | 6,200,000 | |
Loans held for investment | 4,969,776,000 | 3,774,157,000 | |
Held to maturity, credit loss exposure | 282,000 | 242,000 | |
Amount of reserve recorded | 0 | ||
Accrued interest receivable of held-to-maturity securities | 2,800,000 | 3,600,000 | |
Held-to-maturity, excluding accrued interest, nonaccrual | 0 | 0 | |
Carrying value of securities pledged to public deposits | $ 1,198,000,000 | $ 1,031,000,000 | |
Number of securities in the portfolio that were in an unrealized loss position | security | 1,162 | 1,265 | |
AFS Securities | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Credit loss recognized | $ 0 | $ 0 | |
Obligations of U.S. government agencies and sponsored entities | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt securities, HTM, excluding accrued interest, after allowance for credit loss, transferred from AFS | 863,000 | ||
Mortgage-backed securities - commercial | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt securities, HTM, excluding accrued interest, after allowance for credit loss, transferred from AFS | 1,200,000 | ||
Tax-exempt and taxable obligations of states and municipal subdivisions | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt securities, HTM, excluding accrued interest, after allowance for credit loss, transferred from AFS | $ 137,500,000 | ||
Financial Asset, Past Due | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Loans held for investment | 0 | 0 | |
Securities held to maturity past due 30 days | $ 0 | $ 0 |
SECURITIES - Credit Quality Ind
SECURITIES - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | $ 678,161 | $ 691,484 |
A1/A2 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 13,793 | 13,757 |
Aa1/Aa2/Aa3 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 110,991 | 110,854 |
Aaa | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 454,048 | 467,736 |
BBB | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 10,000 | 10,000 |
Not rated | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | $ 89,329 | $ 89,137 |
SECURITIES - Amortized Cost and
SECURITIES - Amortized Cost and Fair Value of Debt Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Available-for-Sale, Amortized Cost | ||
Due less than one year | $ 59,346 | |
Due after one year through five years | 271,333 | |
Due after five years through ten years | 336,077 | |
Due greater than ten years | 180,065 | |
Mortgage-backed securities - residential | 330,626 | |
Mortgage-backed securities - commercial | 209,947 | |
Amortized Cost | 1,387,394 | $ 1,418,337 |
Available-for-Sale, Fair Value | ||
Due less than one year | 58,055 | |
Due after one year through five years | 255,119 | |
Due after five years through ten years | 300,986 | |
Due greater than ten years | 154,078 | |
Mortgage-backed securities - residential | 293,394 | |
Mortgage-backed securities - commercial | 188,159 | |
Securities available-for-sale | 1,249,791 | 1,257,101 |
Held-to-maturity, Amortized Cost | ||
Due less than one year | 38,232 | |
Due after one year through five years | 82,398 | |
Due after five years through ten years | 48,564 | |
Due greater than ten years | 222,034 | |
Mortgage-backed securities - residential | 152,636 | |
Mortgage-backed securities - commercial | 134,297 | |
Total | 678,161 | |
Held-to-maturity, Estimated Fair Value | ||
Due less than one year | 37,371 | |
Due after one year through five years | 78,578 | |
Due after five years through ten years | 45,111 | |
Due greater than ten years | 218,015 | |
Mortgage-backed securities - residential | 137,407 | |
Mortgage-backed securities - commercial | 123,036 | |
Total | $ 639,518 | $ 642,097 |
SECURITIES - Summary of Availab
SECURITIES - Summary of Available-For-Sale Securities With Unrealized and Unrecognized Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair value, less than 12 months | $ 147,785 | $ 475,479 |
Fair value, 12 months or longer | 1,061,579 | 752,306 |
Fair value, total | 1,209,364 | 1,227,785 |
Unrealized losses, less than 12 months | 5,436 | 43,854 |
Unrealized losses, 12 months or longer | 132,996 | 118,054 |
Unrealized losses, total | 138,432 | 161,908 |
Fair value, held-to-maturity, less than 12 months | 218,267 | 530,503 |
Fair value, held-to-maturity, 12 months or longer | 288,096 | 15,303 |
Fair value, held-to-maturity, total | 506,363 | 545,806 |
Unrealized losses, held-to-maturity, less than 12 months | 16,166 | 53,803 |
Unrealized losses, held-to-maturity, 12 months or longer | 31,186 | 116 |
Unrealized losses, held-to-maturity, total | 47,352 | 53,919 |
U.S. Treasury | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair value, less than 12 months | 0 | 4,563 |
Fair value, 12 months or longer | 125,773 | 119,292 |
Fair value, total | 125,773 | 123,855 |
Unrealized losses, less than 12 months | 0 | 419 |
Unrealized losses, 12 months or longer | 9,945 | 11,479 |
Unrealized losses, total | 9,945 | 11,898 |
Fair value, held-to-maturity, less than 12 months | 0 | 104,457 |
Fair value, held-to-maturity, 12 months or longer | 95,562 | 0 |
Fair value, held-to-maturity, total | 95,562 | 104,457 |
Unrealized losses, held-to-maturity, less than 12 months | 0 | 5,175 |
Unrealized losses, held-to-maturity, 12 months or longer | 4,114 | 0 |
Unrealized losses, held-to-maturity, total | 4,114 | 5,175 |
Obligations of U.S. government agencies and sponsored entities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair value, less than 12 months | 5,573 | 34,254 |
Fair value, 12 months or longer | 137,028 | 109,431 |
Fair value, total | 142,601 | 143,685 |
Unrealized losses, less than 12 months | 137 | 2,293 |
Unrealized losses, 12 months or longer | 15,383 | 16,395 |
Unrealized losses, total | 15,520 | 18,688 |
Fair value, held-to-maturity, less than 12 months | 31,401 | 31,636 |
Fair value, held-to-maturity, 12 months or longer | 0 | 0 |
Fair value, held-to-maturity, total | 31,401 | 31,636 |
Unrealized losses, held-to-maturity, less than 12 months | 1,549 | 2,153 |
Unrealized losses, held-to-maturity, 12 months or longer | 0 | 0 |
Unrealized losses, held-to-maturity, total | 1,549 | 2,153 |
Tax-exempt and taxable obligations of states and municipal subdivisions | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair value, less than 12 months | 57,181 | 275,202 |
Fair value, 12 months or longer | 368,485 | 159,508 |
Fair value, total | 425,666 | 434,710 |
Unrealized losses, less than 12 months | 1,363 | 31,152 |
Unrealized losses, 12 months or longer | 48,961 | 30,779 |
Unrealized losses, total | 50,324 | 61,931 |
Fair value, held-to-maturity, less than 12 months | 71,182 | 127,628 |
Fair value, held-to-maturity, 12 months or longer | 40,327 | 15,303 |
Fair value, held-to-maturity, total | 111,509 | 142,931 |
Unrealized losses, held-to-maturity, less than 12 months | 5,667 | 13,583 |
Unrealized losses, held-to-maturity, 12 months or longer | 7,902 | 116 |
Unrealized losses, held-to-maturity, total | 13,569 | 13,699 |
Mortgage-backed securities - residential | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair value, less than 12 months | 31,971 | 76,125 |
Fair value, 12 months or longer | 260,601 | 222,274 |
Fair value, total | 292,572 | 298,399 |
Unrealized losses, less than 12 months | 1,266 | 4,970 |
Unrealized losses, 12 months or longer | 35,975 | 37,071 |
Unrealized losses, total | 37,241 | 42,041 |
Fair value, held-to-maturity, less than 12 months | 48,340 | 138,639 |
Fair value, held-to-maturity, 12 months or longer | 89,067 | 0 |
Fair value, held-to-maturity, total | 137,407 | 138,639 |
Unrealized losses, held-to-maturity, less than 12 months | 4,190 | 17,479 |
Unrealized losses, held-to-maturity, 12 months or longer | 11,039 | 0 |
Unrealized losses, held-to-maturity, total | 15,229 | 17,479 |
Mortgage-backed securities - commercial | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair value, less than 12 months | 29,832 | 50,193 |
Fair value, 12 months or longer | 153,856 | 136,062 |
Fair value, total | 183,688 | 186,255 |
Unrealized losses, less than 12 months | 1,292 | 3,025 |
Unrealized losses, 12 months or longer | 20,552 | 21,338 |
Unrealized losses, total | 21,844 | 24,363 |
Fair value, held-to-maturity, less than 12 months | 67,344 | 119,758 |
Fair value, held-to-maturity, 12 months or longer | 54,749 | 0 |
Fair value, held-to-maturity, total | 122,093 | 119,758 |
Unrealized losses, held-to-maturity, less than 12 months | 4,760 | 13,798 |
Unrealized losses, held-to-maturity, 12 months or longer | 6,522 | 0 |
Unrealized losses, held-to-maturity, total | 11,282 | 13,798 |
Corporate obligations | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair value, less than 12 months | 23,228 | 35,142 |
Fair value, 12 months or longer | 15,836 | 5,739 |
Fair value, total | 39,064 | 40,881 |
Unrealized losses, less than 12 months | 1,378 | 1,995 |
Unrealized losses, 12 months or longer | 2,180 | 992 |
Unrealized losses, total | 3,558 | 2,987 |
Fair value, held-to-maturity, less than 12 months | 0 | 8,385 |
Fair value, held-to-maturity, 12 months or longer | 8,391 | 0 |
Fair value, held-to-maturity, total | 8,391 | 8,385 |
Unrealized losses, held-to-maturity, less than 12 months | 0 | 1,615 |
Unrealized losses, held-to-maturity, 12 months or longer | 1,609 | 0 |
Unrealized losses, held-to-maturity, total | $ 1,609 | $ 1,615 |
LOANS - Composition of Loan Por
LOANS - Composition of Loan Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Loans held for sale | ||||
Total LHFS | $ 4,073 | $ 4,443 | ||
Loans held for investment | ||||
Loans held for investment | 4,969,776 | 3,774,157 | ||
Less allowance for credit losses | (52,450) | (38,917) | $ (31,620) | $ (30,742) |
Net loans held for investment | 4,917,326 | 3,735,240 | ||
PPP Loans | 568 | 710 | ||
Mortgage loans held for sale | ||||
Loans held for sale | ||||
Total LHFS | 4,073 | 4,443 | ||
Commercial, financial and agriculture | ||||
Loans held for investment | ||||
Loans held for investment | 785,676 | 536,192 | ||
Less allowance for credit losses | (9,443) | (6,349) | (4,874) | (4,873) |
Commercial real estate | ||||
Loans held for investment | ||||
Loans held for investment | 2,862,145 | 2,135,263 | ||
Less allowance for credit losses | (28,052) | (20,389) | (17,773) | (17,552) |
Consumer real estate | ||||
Loans held for investment | ||||
Loans held for investment | 1,268,776 | 1,058,999 | ||
Less allowance for credit losses | (14,201) | (11,599) | (8,492) | (7,889) |
Consumer installment | ||||
Loans held for investment | ||||
Loans held for investment | 53,179 | 43,703 | ||
Less allowance for credit losses | $ (754) | $ (580) | $ (481) | $ (428) |
LOANS - Narrative (Details)
LOANS - Narrative (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Jan. 01, 2023 | Dec. 31, 2022 | Aug. 01, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing receivable, accrued interest, before allowance for credit loss | $ 21,600,000 | $ 18,000,000 | |||
Amortized cost, PCD loans | 68,800,000 | 24,000,000 | |||
PCD loans, estimated ACL | 4,300,000 | 1,700,000 | |||
Total TDRs | 21,751,000 | ||||
Additional amount committed on TDR loans | 0 | ||||
Allowance for TDRs | 841,000 | ||||
TDR period increase (decrease) in allowance | $ 1,000 | ||||
TDR charge-offs | 0 | 0 | |||
TDR subsequent default, increase (decrease) in allowance | 1,500,000 | ||||
TDR subsequent default, charge-offs | 0 | 0 | |||
Total loans, other financial institutions | 251,300,000 | 202,600,000 | |||
Loans sold to other financial institutions. | 140,700,000 | 100,100,000 | |||
Loans purchased | $ 110,500,000 | 102,500,000 | |||
LGD Rate | 15% | ||||
Threshold default percentage | 1% | ||||
Initial allowance on PCD loans | $ 3,176,000 | ||||
Provision for credit losses, LHFI | $ 10,500,000 | $ 0 | |||
Heritage Southeast Bank | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Business combination, acquired receivable, fair value | $ 1,091,000,000 | ||||
Discount (premium) on loans acquired | 33,700,000 | ||||
Gross contractual amounts receivable | 1,125,000,000 | ||||
Contractual cash flows not expected to be collected | $ 16,500,000 | ||||
Initial allowance on PCD loans | 3,200,000 | ||||
Provision for credit losses, LHFI | $ 10,700,000 | ||||
Beach Bancorp | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Business combination, acquired receivable, fair value | $ 460,000,000 | ||||
Discount (premium) on loans acquired | 8,800,000 | ||||
Gross contractual amounts receivable | 468,800,000 | ||||
Contractual cash flows not expected to be collected | 6,400,000 | ||||
TDRs acquired | $ 1,500,000 |
LOANS - Summary of Loans Classi
LOANS - Summary of Loans Classified as Past Due in Excess of Thirty Days or More and Loans Classified as Non-Accrual (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | $ 10,871 | $ 5,763 |
Past Due 90 Days or More and Still Accruing | 73 | 289 |
Nonaccrual | 12,403 | 10,430 |
PCD | 4,910 | 2,161 |
Total Past Due, Nonaccrual and PCD | 28,257 | 18,643 |
LHFI | 4,969,776 | 3,774,157 |
Nonaccrual and PCD with No ACL | 7,446 | 5,351 |
PPP Loans | 568 | 710 |
Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 2,405 | 220 |
Past Due 90 Days or More and Still Accruing | 70 | 0 |
Nonaccrual | 92 | 19 |
PCD | 1,563 | 0 |
Total Past Due, Nonaccrual and PCD | 4,130 | 239 |
LHFI | 785,676 | 536,192 |
Nonaccrual and PCD with No ACL | 98 | 0 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 2,151 | 1,984 |
Past Due 90 Days or More and Still Accruing | 0 | 0 |
Nonaccrual | 8,916 | 7,445 |
PCD | 1,557 | 1,129 |
Total Past Due, Nonaccrual and PCD | 12,624 | 10,558 |
LHFI | 2,862,145 | 2,135,263 |
Nonaccrual and PCD with No ACL | 6,230 | 4,560 |
Consumer real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 6,101 | 3,386 |
Past Due 90 Days or More and Still Accruing | 3 | 289 |
Nonaccrual | 3,381 | 2,965 |
PCD | 1,790 | 1,032 |
Total Past Due, Nonaccrual and PCD | 11,275 | 7,672 |
LHFI | 1,268,776 | 1,058,999 |
Nonaccrual and PCD with No ACL | 1,118 | 791 |
Consumer installment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 214 | 173 |
Past Due 90 Days or More and Still Accruing | 0 | 0 |
Nonaccrual | 14 | 1 |
PCD | 0 | 0 |
Total Past Due, Nonaccrual and PCD | 228 | 174 |
LHFI | 53,179 | 43,703 |
Nonaccrual and PCD with No ACL | $ 0 | $ 0 |
LOANS - Summary of Carrying Amo
LOANS - Summary of Carrying Amount of Loans Acquired in Business Combination with more than Insignificant Deterioration of Credit Quality since Origination (Details) - USD ($) $ in Thousands | Jan. 01, 2023 | Aug. 01, 2022 |
Beach Bancorp | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Purchase price of loans at acquisition | $ 27,669 | |
Allowance for credit losses at acquisition | 1,303 | |
Non-credit discount (premium) at acquisition | 530 | |
Par value of acquired loans at acquisition | $ 29,502 | |
Heritage Southeast Bank | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Purchase price of loans at acquisition | $ 52,356 | |
Allowance for credit losses at acquisition | 3,176 | |
Non-credit discount (premium) at acquisition | 2,325 | |
Par value of acquired loans at acquisition | $ 57,857 |
LOANS - Amortized Cost Basis of
LOANS - Amortized Cost Basis of Loans that were Modified to Borrowers by Class of Financing Receivable (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Financing receivable, excluding accrued interest, modified period | $ 301 |
Percentage of Total Loans Held for Investment | 0.01% |
Commercial real estate | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Financing receivable, excluding accrued interest, modified period | $ 301 |
Percentage of Total Loans Held for Investment | 0.01% |
LOANS - Detail of Troubled Debt
LOANS - Detail of Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022 USD ($) loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Loans | loan | 1 |
Outstanding Recorded Investment Pre-Modification | $ 230 |
Outstanding Recorded Investment Post-Modification | $ 230 |
Commercial real estate | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Loans | loan | 1 |
Outstanding Recorded Investment Pre-Modification | $ 230 |
Outstanding Recorded Investment Post-Modification | $ 230 |
LOANS - Summary of Loans Modifi
LOANS - Summary of Loans Modified as TDRs for Which There Was a Payment Default Within Twelve Months Following the Modification (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022 USD ($) loan | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Number of Loans | loan | 6 |
Recorded Investment | $ | $ 4,747 |
Commercial real estate | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Number of Loans | loan | 3 |
Recorded Investment | $ | $ 4,606 |
Consumer real estate | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Number of Loans | loan | 3 |
Recorded Investment | $ | $ 141 |
LOANS - Modifications of Loans
LOANS - Modifications of Loans Performing (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment | $ 4,969,776,000 | $ 3,774,157,000 |
Past Due 90 Days or More and Still Accruing | 73,000 | 289,000 |
Nonaccrual | 12,403,000 | 10,430,000 |
Total | 21,751,000 | |
Allowance for TDRs | 841,000 | |
Financing receivable, total | 841,000 | |
Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment | 785,676,000 | 536,192,000 |
Past Due 90 Days or More and Still Accruing | 70,000 | 0 |
Nonaccrual | 92,000 | 19,000 |
Total | 49,000 | |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment | 2,862,145,000 | 2,135,263,000 |
Past Due 90 Days or More and Still Accruing | 0 | 0 |
Nonaccrual | 8,916,000 | 7,445,000 |
Total | 19,682,000 | |
Consumer real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment | 1,268,776,000 | 1,058,999,000 |
Past Due 90 Days or More and Still Accruing | 3,000 | 289,000 |
Nonaccrual | 3,381,000 | 2,965,000 |
Total | 2,006,000 | |
Consumer installment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment | 53,179,000 | 43,703,000 |
Past Due 90 Days or More and Still Accruing | 0 | 0 |
Nonaccrual | 14,000 | 1,000 |
Total | 14,000 | |
Financial Asset, Not Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment | 14,701,000 | |
Allowance for TDRs | 350,000 | |
Financial Asset, Not Past Due | Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment | 49,000 | |
Financial Asset, Not Past Due | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment | 13,561,000 | |
Financial Asset, Not Past Due | Consumer real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment | 1,077,000 | |
Financial Asset, Not Past Due | Consumer installment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment | 14,000 | |
Financial Asset, Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment | $ 0 | 0 |
Past Due 30-89 | 0 | |
Past Due 90 Days or More and Still Accruing | 0 | |
Nonaccrual | 7,050,000 | |
Financing receivable allowance for credit losses current nonaccrual status | 491,000 | |
Financial Asset, Past Due | Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30-89 | 0 | |
Past Due 90 Days or More and Still Accruing | 0 | |
Nonaccrual | 0 | |
Financial Asset, Past Due | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30-89 | 0 | |
Past Due 90 Days or More and Still Accruing | 0 | |
Nonaccrual | 6,121,000 | |
Financial Asset, Past Due | Consumer real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30-89 | 0 | |
Past Due 90 Days or More and Still Accruing | 0 | |
Nonaccrual | 929,000 | |
Financial Asset, Past Due | Consumer installment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30-89 | 0 | |
Past Due 90 Days or More and Still Accruing | 0 | |
Nonaccrual | $ 0 |
LOANS - Collateral Dependent Lo
LOANS - Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | $ 8,444 | $ 5,558 |
Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 872 | |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 6,230 | 4,560 |
Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 1,342 | 998 |
Real Property | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 7,572 | 5,558 |
Real Property | Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 0 | |
Real Property | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 6,230 | 4,560 |
Real Property | Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 1,342 | $ 998 |
Equipment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 171 | |
Equipment | Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 171 | |
Equipment | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 0 | |
Equipment | Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 0 | |
Miscellaneous | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 701 | |
Miscellaneous | Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 701 | |
Miscellaneous | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 0 | |
Miscellaneous | Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | $ 0 |
LOANS - Amortized Cost Basis _2
LOANS - Amortized Cost Basis of Loans by Credit Quality Indicator and Class of Loans Based on the Most Recent Analysis Performed (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | $ 109,025 | $ 1,111,109 | |
Current period gross writeoffs, 2023 | 0 | ||
Year two | 1,367,568 | 825,738 | |
Current period gross writeoffs, 2022 | 114 | ||
Year three | 995,085 | 509,928 | |
Current period gross writeoffs, 2021 | 50 | ||
Year four | 625,194 | 347,053 | |
Current period gross writeoffs, 2020 | 85 | ||
Year five | 423,576 | 253,717 | |
Current period gross writeoffs, 2019 | 17 | ||
More than five years | 1,017,764 | 607,487 | |
Current period gross writeoffs, prior | 75 | ||
Revolving Loans | 431,564 | 119,125 | |
Current period gross writeoffs, revolving | 0 | ||
Loans held for investment | 4,969,776 | 3,774,157 | |
Loans charged-off | 341 | $ 231 | |
Commercial, financial and agriculture | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 30,017 | 182,191 | |
Current period gross writeoffs, 2023 | 0 | ||
Year two | 164,867 | 146,362 | |
Current period gross writeoffs, 2022 | 0 | ||
Year three | 125,967 | 57,354 | |
Current period gross writeoffs, 2021 | 3 | ||
Year four | 60,424 | 53,988 | |
Current period gross writeoffs, 2020 | 0 | ||
Year five | 52,133 | 43,474 | |
Current period gross writeoffs, 2019 | 0 | ||
More than five years | 87,456 | 52,642 | |
Current period gross writeoffs, prior | 0 | ||
Revolving Loans | 264,812 | 181 | |
Current period gross writeoffs, revolving | 0 | ||
Loans held for investment | 785,676 | 536,192 | |
Loans charged-off | 3 | 52 | |
Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 37,110 | 583,617 | |
Current period gross writeoffs, 2023 | 0 | ||
Year two | 784,493 | 440,836 | |
Current period gross writeoffs, 2022 | 0 | ||
Year three | 599,287 | 309,986 | |
Current period gross writeoffs, 2021 | 0 | ||
Year four | 409,537 | 230,963 | |
Current period gross writeoffs, 2020 | 0 | ||
Year five | 302,018 | 155,364 | |
Current period gross writeoffs, 2019 | 0 | ||
More than five years | 720,221 | 412,732 | |
Current period gross writeoffs, prior | 0 | ||
Revolving Loans | 9,479 | 1,765 | |
Current period gross writeoffs, revolving | 0 | ||
Loans held for investment | 2,862,145 | 2,135,263 | |
Loans charged-off | 0 | 3 | |
Consumer real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 35,440 | 326,372 | |
Current period gross writeoffs, 2023 | 0 | ||
Year two | 398,538 | 226,909 | |
Current period gross writeoffs, 2022 | 0 | ||
Year three | 258,409 | 137,533 | |
Current period gross writeoffs, 2021 | 0 | ||
Year four | 149,973 | 60,024 | |
Current period gross writeoffs, 2020 | 0 | ||
Year five | 67,143 | 54,044 | |
Current period gross writeoffs, 2019 | 0 | ||
More than five years | 208,095 | 140,663 | |
Current period gross writeoffs, prior | 0 | ||
Revolving Loans | 151,178 | 113,454 | |
Current period gross writeoffs, revolving | 0 | ||
Loans held for investment | 1,268,776 | 1,058,999 | |
Loans charged-off | 0 | 7 | |
Consumer installment | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 6,458 | 18,929 | |
Current period gross writeoffs, 2023 | 0 | ||
Year two | 19,670 | 11,631 | |
Current period gross writeoffs, 2022 | 114 | ||
Year three | 11,422 | 5,055 | |
Current period gross writeoffs, 2021 | 47 | ||
Year four | 5,260 | 2,078 | |
Current period gross writeoffs, 2020 | 85 | ||
Year five | 2,282 | 835 | |
Current period gross writeoffs, 2019 | 17 | ||
More than five years | 1,992 | 1,450 | |
Current period gross writeoffs, prior | 75 | ||
Revolving Loans | 6,095 | 3,725 | |
Current period gross writeoffs, revolving | 0 | ||
Loans held for investment | 53,179 | 43,703 | |
Loans charged-off | 338 | $ 169 | |
Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 109,016 | 1,109,434 | |
Year two | 1,356,376 | 815,808 | |
Year three | 978,998 | 501,913 | |
Year four | 618,506 | 333,034 | |
Year five | 404,537 | 236,470 | |
More than five years | 932,231 | 551,591 | |
Revolving Loans | 427,881 | 117,949 | |
Loans held for investment | 4,827,545 | 3,666,199 | |
Pass | Commercial, financial and agriculture | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 30,008 | 181,761 | |
Year two | 164,576 | 141,174 | |
Year three | 123,428 | 55,690 | |
Year four | 59,554 | 53,954 | |
Year five | 50,826 | 43,441 | |
More than five years | 84,846 | 52,038 | |
Revolving Loans | 264,482 | 181 | |
Loans held for investment | 777,720 | 528,239 | |
Pass | Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 37,110 | 582,895 | |
Year two | 774,221 | 436,661 | |
Year three | 586,611 | 305,140 | |
Year four | 405,322 | 217,626 | |
Year five | 285,453 | 140,682 | |
More than five years | 650,549 | 368,185 | |
Revolving Loans | 9,306 | 1,765 | |
Loans held for investment | 2,748,572 | 2,052,954 | |
Pass | Consumer real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 35,440 | 325,853 | |
Year two | 397,923 | 226,355 | |
Year three | 257,557 | 136,052 | |
Year four | 148,394 | 59,376 | |
Year five | 65,976 | 51,515 | |
More than five years | 194,847 | 129,923 | |
Revolving Loans | 147,998 | 112,278 | |
Loans held for investment | 1,248,135 | 1,041,352 | |
Pass | Consumer installment | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 6,458 | 18,925 | |
Year two | 19,656 | 11,618 | |
Year three | 11,402 | 5,031 | |
Year four | 5,236 | 2,078 | |
Year five | 2,282 | 832 | |
More than five years | 1,989 | 1,445 | |
Revolving Loans | 6,095 | 3,725 | |
Loans held for investment | 53,118 | 43,654 | |
Special mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 0 | 1,052 | |
Year two | 7,635 | 6,533 | |
Year three | 11,916 | 5,602 | |
Year four | 3,879 | 11,643 | |
Year five | 11,681 | 10,708 | |
More than five years | 33,885 | 20,870 | |
Revolving Loans | 2,504 | 0 | |
Loans held for investment | 71,500 | 56,408 | |
Special mention | Commercial, financial and agriculture | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 0 | 380 | |
Year two | 0 | 5,188 | |
Year three | 2,358 | 1,664 | |
Year four | 536 | 0 | |
Year five | 399 | 0 | |
More than five years | 1,474 | 412 | |
Revolving Loans | 305 | 0 | |
Loans held for investment | 5,072 | 7,644 | |
Special mention | Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 0 | 672 | |
Year two | 7,558 | 1,345 | |
Year three | 9,379 | 3,938 | |
Year four | 3,342 | 11,643 | |
Year five | 11,190 | 9,885 | |
More than five years | 28,141 | 16,612 | |
Revolving Loans | 173 | 0 | |
Loans held for investment | 59,783 | 44,095 | |
Special mention | Consumer real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 0 | 0 | |
Year two | 77 | 0 | |
Year three | 179 | 0 | |
Year four | 0 | 0 | |
Year five | 92 | 823 | |
More than five years | 4,270 | 3,846 | |
Revolving Loans | 2,026 | 0 | |
Loans held for investment | 6,644 | 4,669 | |
Special mention | Consumer installment | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 0 | 0 | |
Year two | 0 | 0 | |
Year three | 0 | 0 | |
Year four | 1 | 0 | |
Year five | 0 | 0 | |
More than five years | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Loans held for investment | 1 | 0 | |
Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 9 | 623 | |
Year two | 3,557 | 3,397 | |
Year three | 4,171 | 2,413 | |
Year four | 2,809 | 2,376 | |
Year five | 7,358 | 6,539 | |
More than five years | 51,648 | 35,026 | |
Revolving Loans | 1,179 | 1,176 | |
Loans held for investment | 70,731 | 51,550 | |
Substandard | Commercial, financial and agriculture | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 9 | 50 | |
Year two | 291 | 0 | |
Year three | 181 | 0 | |
Year four | 334 | 34 | |
Year five | 908 | 33 | |
More than five years | 1,136 | 192 | |
Revolving Loans | 25 | 0 | |
Loans held for investment | 2,884 | 309 | |
Substandard | Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 0 | 50 | |
Year two | 2,714 | 2,830 | |
Year three | 3,297 | 908 | |
Year four | 873 | 1,694 | |
Year five | 5,375 | 4,797 | |
More than five years | 41,531 | 27,935 | |
Revolving Loans | 0 | 0 | |
Loans held for investment | 53,790 | 38,214 | |
Substandard | Consumer real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 0 | 519 | |
Year two | 538 | 554 | |
Year three | 673 | 1,481 | |
Year four | 1,579 | 648 | |
Year five | 1,075 | 1,706 | |
More than five years | 8,978 | 6,894 | |
Revolving Loans | 1,154 | 1,176 | |
Loans held for investment | 13,997 | 12,978 | |
Substandard | Consumer installment | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 0 | 4 | |
Year two | 14 | 13 | |
Year three | 20 | 24 | |
Year four | 23 | 0 | |
Year five | 0 | 3 | |
More than five years | 3 | 5 | |
Revolving Loans | 0 | 0 | |
Loans held for investment | 60 | 49 | |
Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 0 | 0 | |
Year two | 0 | 0 | |
Year three | 0 | 0 | |
Year four | 0 | 0 | |
Year five | 0 | 0 | |
More than five years | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Loans held for investment | 0 | 0 | |
Doubtful | Commercial, financial and agriculture | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 0 | 0 | |
Year two | 0 | 0 | |
Year three | 0 | 0 | |
Year four | 0 | 0 | |
Year five | 0 | 0 | |
More than five years | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Loans held for investment | 0 | 0 | |
Doubtful | Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 0 | 0 | |
Year two | 0 | 0 | |
Year three | 0 | 0 | |
Year four | 0 | 0 | |
Year five | 0 | 0 | |
More than five years | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Loans held for investment | 0 | 0 | |
Doubtful | Consumer real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 0 | 0 | |
Year two | 0 | 0 | |
Year three | 0 | 0 | |
Year four | 0 | 0 | |
Year five | 0 | 0 | |
More than five years | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Loans held for investment | 0 | 0 | |
Doubtful | Consumer installment | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 0 | 0 | |
Year two | 0 | 0 | |
Year three | 0 | 0 | |
Year four | 0 | 0 | |
Year five | 0 | 0 | |
More than five years | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Loans held for investment | $ 0 | $ 0 |
LOANS - Activity in Allowance f
LOANS - Activity in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Allowance for loan losses: | ||
Beginning balance | $ 38,917 | $ 30,742 |
Initial allowance on PCD loans | 3,176 | |
Provision for credit losses | 10,500 | 0 |
Loans charged-off | (341) | (231) |
Recoveries | 198 | 1,109 |
Total ending allowance balance | 52,450 | 31,620 |
Commercial, financial and agriculture | ||
Allowance for loan losses: | ||
Beginning balance | 6,349 | 4,873 |
Initial allowance on PCD loans | 727 | |
Provision for credit losses | 2,327 | 0 |
Loans charged-off | (3) | (52) |
Recoveries | 43 | 53 |
Total ending allowance balance | 9,443 | 4,874 |
Commercial real estate | ||
Allowance for loan losses: | ||
Beginning balance | 20,389 | 17,552 |
Initial allowance on PCD loans | 2,260 | |
Provision for credit losses | 5,388 | 0 |
Loans charged-off | 0 | (3) |
Recoveries | 15 | 224 |
Total ending allowance balance | 28,052 | 17,773 |
Consumer real estate | ||
Allowance for loan losses: | ||
Beginning balance | 11,599 | 7,889 |
Initial allowance on PCD loans | 182 | |
Provision for credit losses | 2,402 | 0 |
Loans charged-off | 0 | (7) |
Recoveries | 18 | 610 |
Total ending allowance balance | 14,201 | 8,492 |
Consumer installment | ||
Allowance for loan losses: | ||
Beginning balance | 580 | 428 |
Initial allowance on PCD loans | 7 | |
Provision for credit losses | 383 | 0 |
Loans charged-off | (338) | (169) |
Recoveries | 122 | 222 |
Total ending allowance balance | $ 754 | $ 481 |
LOANS - Loans and Allowance for
LOANS - Loans and Allowance for Loan Losses, Broken Down by Portfolio Segment (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | $ 4,969,776 | $ 3,774,157 | ||
Allowance for Credit Losses | 52,450 | 38,917 | $ 31,620 | $ 30,742 |
Commercial, financial and agriculture | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 785,676 | 536,192 | ||
Allowance for Credit Losses | 9,443 | 6,349 | 4,874 | 4,873 |
Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 2,862,145 | 2,135,263 | ||
Allowance for Credit Losses | 28,052 | 20,389 | 17,773 | 17,552 |
Consumer real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 1,268,776 | 1,058,999 | ||
Allowance for Credit Losses | 14,201 | 11,599 | 8,492 | 7,889 |
Consumer installment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 53,179 | 43,703 | ||
Allowance for Credit Losses | 754 | 580 | $ 481 | $ 428 |
Individually evaluated | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 8,444 | 5,558 | ||
Allowance for Credit Losses | 357 | 5 | ||
Individually evaluated | Commercial, financial and agriculture | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 872 | 0 | ||
Allowance for Credit Losses | 337 | 0 | ||
Individually evaluated | Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 6,230 | 4,560 | ||
Allowance for Credit Losses | 0 | 0 | ||
Individually evaluated | Consumer real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 1,342 | 998 | ||
Allowance for Credit Losses | 20 | 5 | ||
Individually evaluated | Consumer installment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 0 | 0 | ||
Allowance for Credit Losses | 0 | 0 | ||
Collectively evaluated | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 4,961,332 | 3,768,599 | ||
Allowance for Credit Losses | 52,093 | 38,912 | ||
Collectively evaluated | Commercial, financial and agriculture | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 784,804 | 536,192 | ||
Allowance for Credit Losses | 9,106 | 6,349 | ||
Collectively evaluated | Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 2,855,915 | 2,130,703 | ||
Allowance for Credit Losses | 28,052 | 20,389 | ||
Collectively evaluated | Consumer real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 1,267,434 | 1,058,001 | ||
Allowance for Credit Losses | 14,181 | 11,594 | ||
Collectively evaluated | Consumer installment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 53,179 | 43,703 | ||
Allowance for Credit Losses | $ 754 | $ 580 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Derivative Instruments (Details) - Interest rate swap contracts $ in Thousands | Mar. 31, 2023 USD ($) |
Derivative [Line Items] | |
Notional amount | $ 332,873 |
Weighted average pay rate | 0.044 |
Weighted average receive rate | 0.044 |
Weighted average maturity in years | 5 years 11 months 15 days |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Derivative Liabilities/Assets at Fair Value (Details) - Interest rate swap contracts $ in Thousands | Mar. 31, 2023 USD ($) |
Derivative [Line Items] | |
Derivative Assets | $ 10,577 |
Derivative Liabilities | $ 10,577 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - Interest rate swap contracts $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 USD ($) | Aug. 01, 2022 loan | |
Derivative [Line Items] | ||
Collateralized agreements | $ 500 | |
Swap spread income, net | $ 169 | |
Beach Bancorp | ||
Derivative [Line Items] | ||
Number of loans acquired | loan | 33 |
SUBSEQUENT EVENTS_OTHER (Detail
SUBSEQUENT EVENTS/OTHER (Details) $ in Millions | Apr. 30, 2023 USD ($) |
Subsequent Event | |
SUBSEQUENT EVENTS | |
Government grants, eligibility, amount | $ 6.2 |