Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | May 03, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 31,218,726 | |
Entity Central Index Key | 0000947559 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
ASSETS | ||
Cash and due from banks | $ 109,323 | $ 224,199 |
Interest-bearing deposits with banks | 230,641 | 130,948 |
Total cash and cash equivalents | 339,964 | 355,147 |
Securities available-for-sale, at fair value (amortized cost: $1,216,163 - 2024; $1,164,227 - 2023; allowance for credit losses: $0) | 1,088,568 | 1,042,365 |
Securities held to maturity, net of allowance for credit losses of $0 (fair value: $577,343 - 2024; $615,944 - 2023) | 622,574 | 654,539 |
Other securities | 34,094 | 37,754 |
Total securities | 1,745,236 | 1,734,658 |
Loans held for sale | 4,241 | 2,914 |
Loans held for investment | 5,139,952 | 5,170,042 |
Allowance for credit losses | (53,959) | (54,032) |
Net loans held for investment | 5,085,993 | 5,116,010 |
Interest receivable | 34,954 | 33,300 |
Premises and equipment | 173,225 | 174,309 |
Operating lease right-of-use assets | 6,619 | 6,387 |
Finance lease right-of-use assets | 1,350 | 1,466 |
Cash surrender value of bank-owned life insurance | 135,148 | 134,249 |
Goodwill | 272,520 | 272,520 |
Other real estate owned | 6,743 | 8,320 |
Other assets | 157,766 | 160,065 |
Total assets | 7,963,759 | 7,999,345 |
Deposits: | ||
Noninterest-bearing | 1,836,952 | 1,849,013 |
Interest-bearing | 4,873,403 | 4,613,859 |
Total deposits | 6,710,355 | 6,462,872 |
Interest payable | 13,705 | 22,702 |
Borrowed funds | 110,000 | 390,000 |
Subordinated debentures | 123,472 | 123,386 |
Operating lease liabilities | 6,783 | 6,550 |
Finance lease liabilities | 1,693 | 1,739 |
Allowance for credit losses on off-balance sheet credit exposures | 2,075 | 2,075 |
Other liabilities | 35,764 | 40,987 |
Total liabilities | 7,003,847 | 7,050,311 |
Shareholders’ equity: | ||
Common stock, par value $1 per share, 80,000,000 shares authorized; 32,467,928 shares issued at March 31, 2024, and par value $1 per share, 80,000,000 shares authorized; 32,338,983 shares issued at December 31, 2023 | 32,468 | 32,339 |
Additional paid-in capital | 775,442 | 775,232 |
Retained earnings | 313,001 | 300,150 |
Accumulated other comprehensive (loss) | (119,888) | (117,576) |
Treasury stock, at cost, 1,249,607 shares at March 31, 2024 and at December 31, 2023 | (41,111) | (41,111) |
Total shareholders’ equity | 959,912 | 949,034 |
Total liabilities and shareholders’ equity | $ 7,963,759 | $ 7,999,345 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Securities available-for-sale, amortized cost | $ 1,216,163,000 | $ 1,164,227,000 |
Credit loss recognized | 0 | 0 |
Securities held-to-maturity, allowance for credit losses | 0 | 0 |
Securities held-to-maturity | $ 577,343,000 | $ 615,944,000 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 80,000,000 | 80,000,000 |
Common stock, shares issued (in shares) | 32,467,928 | 32,338,983 |
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, 2024 | Mar. 31, 2023 | |
Interest and dividend income: | ||
Interest and fees on loans | $ 78,799 | $ 67,733 |
Interest and dividends on securities: | ||
Taxable interest and dividends | 8,302 | 8,759 |
Tax exempt interest | 2,946 | 2,948 |
Interest on federal funds sold and interest-bearing deposits in other banks | 1,616 | 898 |
Total interest income | 91,663 | 80,338 |
Interest expense: | ||
Interest on deposits | 29,413 | 12,277 |
Interest on borrowed funds | 4,909 | 3,135 |
Total interest expense | 34,322 | 15,412 |
Net interest income | 57,341 | 64,926 |
Provision for credit losses, LHFI | 0 | 10,500 |
Provision for credit losses, OBSC exposures | 0 | 500 |
Net interest income after provision for credit losses | 57,341 | 53,926 |
Non-interest income: | ||
Service charges on deposit accounts | 3,367 | 3,657 |
Loss on securities | (48) | 0 |
Gain on sale of premises and equipment | 0 | 662 |
Other | 9,360 | 8,293 |
Total non-interest income | 12,679 | 12,612 |
Non-interest expense: | ||
Salaries and employee benefits | 24,508 | 23,572 |
Occupancy and equipment | 5,714 | 5,296 |
Acquisition expense/charter conversion | 8 | 3,793 |
Other | 13,195 | 13,009 |
Total non-interest expense | 43,425 | 45,670 |
Income before income taxes | 26,595 | 20,868 |
Income tax expense | 5,967 | 4,597 |
Net income available to common stockholders, basic | 20,628 | 16,271 |
Net income available to common stockholders, diluted | $ 20,628 | $ 16,271 |
Earnings per share: | ||
Basic earnings per share (in dollars per share) | $ 0.66 | $ 0.52 |
Diluted earnings per share (in dollars per share) | $ 0.65 | $ 0.52 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 20,628 | $ 16,271 |
Unrealized gains/losses on securities: | ||
Unrealized holding (losses) gains arising during the period on available-for-sale securities | (3,237) | 24,249 |
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 | 94 | 92 |
Reclassification adjustment for losses (gains) included in net income | 48 | 0 |
Unrealized holding (losses) gains arising during the period on available-for-sale securities | (3,095) | 24,341 |
Income tax (expense) benefit | 783 | (6,158) |
Other comprehensive (loss) income | (2,312) | 18,183 |
Comprehensive income | $ 18,316 | $ 34,454 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
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) | |||||
Net income | 16,271 | 16,271 | ||||
Other comprehensive income (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 | |||||
Issuance of common shares for HSBI acquisition | 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 (in shares) at Mar. 31, 2023 | 32,304,153 | |||||
Ending balance at Mar. 31, 2023 | 896,427 | $ 32,304 | 773,612 | 262,396 | (130,774) | $ (41,111) |
Treasury stock, ending balance (in shares) at Mar. 31, 2023 | (1,249,607) | |||||
Beginning balance (in shares) at Dec. 31, 2023 | 32,338,983 | |||||
Beginning balance at Dec. 31, 2023 | $ 949,034 | $ 32,339 | 775,232 | 300,150 | (117,576) | $ (41,111) |
Treasury stock, beginning balance (in shares) at Dec. 31, 2023 | (1,249,607) | (1,249,607) | ||||
Net income | $ 20,628 | 20,628 | ||||
Other comprehensive income (loss) | (2,312) | (2,312) | ||||
Dividends on common stock | (7,777) | (7,777) | ||||
Issuance of restricted stock grants (in shares) | 141,457 | |||||
Issuance of restricted stock grants | 0 | $ 141 | (141) | |||
Repurchase of restricted stock for payment of taxes (in shares) | (12,512) | |||||
Repurchase of restricted stock for payment of taxes | (314) | $ (12) | (302) | |||
Compensation expense | 653 | 653 | ||||
Ending balance (in shares) at Mar. 31, 2024 | 32,467,928 | |||||
Ending balance at Mar. 31, 2024 | $ 959,912 | $ 32,468 | $ 775,442 | $ 313,001 | $ (119,888) | $ (41,111) |
Treasury stock, ending balance (in shares) at Mar. 31, 2024 | (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, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared (in dollars per share) | $ 0.25 | $ 0.21 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 20,628 | $ 16,271 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization, and accretion | 3,700 | 3,336 |
Provision for credit loss | 0 | 11,000 |
(Gain) loss on sale or write-down of ORE | (33) | 66 |
Securities loss | 48 | 0 |
(Gain) loss on disposal of premises and equipment | 0 | (662) |
Restricted stock expense | 653 | 593 |
Increase in cash value of life insurance | (899) | (795) |
Federal Home Loan Bank stock dividends | (109) | 0 |
Residential loans originated and held for sale | (19,923) | (21,900) |
Proceeds from sale of residential loans held for sale | 18,596 | 22,270 |
Changes in: | ||
Interest receivable | (1,654) | 2,089 |
Interest payable | (8,997) | 763 |
Operating lease liability | 233 | (1,186) |
Other, net | (2,009) | (27,191) |
Net cash provided by operating activities | 10,234 | 4,654 |
Securities available-for-sale | ||
Sales | 0 | 170,625 |
Maturities, prepayments, and calls | 75,302 | 31,173 |
Purchases | (128,487) | 0 |
Held-to-maturity securities: | ||
Maturities, prepayments, and calls | 32,658 | 14,044 |
Purchases of other securities | 0 | (7,631) |
Proceeds from other securities | 3,769 | 7,979 |
Net decrease (increase) in loans | 33,486 | (33,405) |
Net changes in premises and equipment | (717) | (1,066) |
Proceeds from sale of other real estate owned | 768 | 456 |
Proceeds from the sale of premises and equipment | 0 | 731 |
Cash received in excess of cash paid for acquisitions | 0 | 106,973 |
Net cash provided by investing activities | 16,779 | 289,879 |
Cash flows from financing activities: | ||
Increase (decrease) in deposits | 245,821 | (219,484) |
Proceeds from borrowed funds | 100,000 | 1,533,086 |
Repayments of borrowed funds | (380,000) | (1,413,186) |
Principal payments on finance lease liabilities | (46) | (44) |
Dividends paid on common stock | (7,657) | (6,422) |
Repurchase of restricted stock for payment of taxes | (314) | (307) |
Net cash used in financing activities | (42,196) | (106,357) |
Net change in cash and cash equivalents | (15,183) | 188,176 |
Beginning cash and cash equivalents | 355,147 | 145,315 |
Ending cash and cash equivalents | 339,964 | 333,491 |
Cash paid during the year for: | ||
Interest | 39,006 | 10,551 |
Income taxes, (net of refunds) | (162) | (940) |
Non-cash activities: | ||
Loans transferred to other real estate | 842 | 0 |
Issuance of restricted stock grants | 141 | 119 |
Dividends on restricted stock grants | 120 | 76 |
Stock issued in connection with HSBI acquisition | 221,522 | |
Lease liabilities arising from obtaining right-of-use assets | 482 | 0 |
HSBI | ||
Non-cash activities: | ||
Stock issued in connection with HSBI acquisition | 0 | 221,522 |
Lease liabilities arising from HSBI acquisition | $ 0 | $ 184 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024, are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. 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, 2023. |
SUMMARY OF ORGANIZATION
SUMMARY OF ORGANIZATION | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024, the Company had approximately $7.964 billion in assets, $5.086 billion in net loans held for investment (“LHFI”), $6.710 billion in deposits, and $959.9 million in shareholders' equity. For the three months ended March 31, 2024, the Company reported net income of $20.6 million. |
ACCOUNTING STANDARDS
ACCOUNTING STANDARDS | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
ACCOUNTING STANDARDS | ACCOUNTING STANDARDS Effect of Recently Adopted Accounting Standards 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 did not 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." These amendments allow reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. This guidance is effective for the Company January 1, 2024, and did not have a material impact on the Company's consolidated financial statements. New Accounting Standards That Have Not Yet Been Adopted In October 2023, FASB issued ASU No. 2023-06, " Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative." This ASU amends the ASC to incorporate certain disclosure requirements from SEC Release No. 33-10532 - Disclosure Update and Simplification that was issued in 2018. The effective date for each amendment will be the date on which the SEC's removal of that related disclosure from Regulation S-K becomes effective, with early adoption prohibited. This guidance is not expected to have a material impact on the Company's consolidated financial statements. In November 2023, FASB issued ASU No. 2023-07, " Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." This ASU amends the ASC to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The key amendments: 1. Require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss. 2. Require that a public entity disclose, on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition. The other segment items category is the difference between segment revenue less the significant expenses disclosed and each reported measure of segment profit or loss. 3. Require that a public entity provide all annual disclosures about a reportable segment's profit or loss and assets currently required by FASB ASU Topic 280, Segment Reporting, in interim periods. 4. Clarify that if the CODM uses more than one measure of a segment's profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report one or more of those additional measures of segment profit. However, at least one of the reported segment profit or loss measures (or the single reported measure, if only one is disclosed) should be the measure that is most consistent with the measurement principles used in measuring the corresponding amounts in the public entity's consolidated financial statements. 5. Require that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. 6. Require that a public entity has a single reportable segment provide all the disclosures required by the amendments in the ASU and all existing segment disclosures in Topic 280. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. This guidance is not expected to have a material impact on the Company's consolidated financial statements. In December 2023, FASB issued ASU No. 2023-09, " Income Taxes (Topic 740): Improvements to Income Tax Disclosures." This ASU amendments require that a public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate). The amendments require that all entities disclose on an annual basis the following information about income taxes paid: 1. The amount of income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes. 2. The amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received). The amendments also require that all entities disclose the following information: 1. Income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign. 2. Income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign. This ASU is effective for annual periods beginning after December 15, 2024. This guidance is not expected to have a material impact on the Company's consolidated financial statements. In March 2024, FASB issued ASU No. 2024-02, Codification Improvements - Amendments to Remove References to the Concepts Statements: |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 3 Months Ended |
Mar. 31, 2024 | |
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 ("Heritage 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 6,920,422 shares of the Company's common stock, and $16 thousand in cash in lieu of fractional shares. The HSBI acquisition provided 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 $91.9 million of goodwill, of which $3.2 million funded the ACL for estimated losses on the acquired PCD loans, and $43.7 million core deposit intangible. Goodwill is not deductible for income taxes. The core deposit intangible will be amortized to expense over 10 years. The following table summarizes the finalized fair values of the assets acquired and liabilities assumed including the goodwill generated from the transaction on January 1, 2023, along with valuation adjustments that have been made since initially reported. ($ in thousands) As Initially Measurement As Adjusted Identifiable assets: Cash and due from banks $ 106,973 $ (180) $ 106,793 Investments 172,775 — 172,775 Loans 1,155,712 — 1,155,712 Core deposit intangible 43,739 — 43,739 Personal and real property 35,963 — 35,963 Other real estate owned 857 332 1,189 Bank owned life insurance 35,579 — 35,579 Deferred taxes 6,761 (632) 6,129 Interest receivable 4,349 — 4,349 Other assets 3,103 — 3,103 Total assets 1,565,811 (480) 1,565,331 Liabilities and equity: Deposits 1,392,432 — 1,392,432 Trust Preferred 9,015 — 9,015 Other liabilities 34,271 — 34,271 Total liabilities 1,435,718 — 1,435,718 Net assets acquired 130,093 (480) 129,613 Consideration paid 221,538 — 221,538 Goodwill $ 91,445 $ 480 $ 91,925 During the fourth quarter of 2023, the Company finalized its analysis and valuation adjustments have been made to cash and due from banks, other real estate owned, and deferred taxes since initially reported. 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 $23.7 million of goodwill, of which $1.3 million funded the ACL for estimated losses on the acquired PCD loans, and $9.8 million core deposit intangible. Goodwill is not deductible for income taxes. The core deposit intangible will be amortized to expense over 10 years. The following table summarizes the finalized fair values of the assets acquired and liabilities assumed including the goodwill generated from the transaction on August 1, 2022, along with valuation adjustments that have been made since initially reported. ($ in thousands) As Initially Reported Measurement Period Adjustments As Adjusted Purchase price: Cash and stock $ 101,470 $ — $ 101,470 Total purchase price 101,470 — 101,470 Identifiable assets: Cash $ 23,939 $ — $ 23,939 Investments 22,907 (264) 22,643 Loans 482,903 2,268 485,171 Other real estate 8,797 (580) 8,217 Bank owned life insurance 10,092 — 10,092 Core deposit intangible 9,791 — 9,791 Personal and real property 13,825 (1,868) 11,957 Deferred tax asset 28,105 (970) 27,135 Other assets 9,649 (414) 9,235 Total assets 610,008 (1,828) 608,180 Liabilities and equity: Deposits 490,588 3 490,591 Borrowings 25,000 — 25,000 Other liabilities 14,772 — 14,772 Total liabilities 530,360 3 530,363 Net assets acquired 79,648 (1,831) 77,817 Goodwill $ 21,822 $ 1,831 $ 23,653 During the third quarter of 2023, the Company finalized its analysis and valuation adjustments that have been made to investments, loans, other real estate, personal and real property, deferred tax asset, other assets, and deposits. |
EARNINGS APPLICABLE TO COMMON S
EARNINGS APPLICABLE TO COMMON SHAREHOLDERS | 3 Months Ended |
Mar. 31, 2024 | |
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 $ 20,628 31,475,254 $ 0.66 $ 16,271 31,309,458 $ 0.52 Effect of dilutive shares: Restricted stock grants 155,491 231,755 Diluted earnings per share $ 20,628 31,630,745 $ 0.65 $ 16,271 31,541,213 $ 0.52 |
COMPREHENSIVE INCOME
COMPREHENSIVE INCOME | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
COMPREHENSIVE INCOME | COMPREHENSIVE INCOME As 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, 2024 | |
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, 2024, and December 31, 2023, these financial instruments consisted of the following: ($ in thousands) March 31, 2024 December 31, 2023 Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 35,854 $ 116,668 $ 34,380 $ 50,226 Unused lines of credit 208,878 606,400 231,335 605,646 Standby letters of credit 14,845 14,621 15,573 13,114 Commitments to make loans are generally made for periods of 90 days or less. The fixed rate loan commitments have interest rates ranging from 0.0% 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, 2024 and December 31, 2023. 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, 2024 2023 Balance at beginning of period $ 2,075 $ 1,325 Credit loss expense related to OBSC exposures — 500 Balance at end of period $ 2,075 $ 1,825 Adjustments to the ACL on OBSC exposures are recorded to provision for credit losses related to OBSC exposures. The Company recorded no ACL provision for the three months period ended March 31, 2024 and a $500 thousand ACL provision for the three months period ended March 31, 2023. The ACL on OBSC exposures for the three months ended March 31, 2023 includes the day one provision for unfunded commitments related to the HSBI acquisition and an increase in unfunded commitments. 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, 2024 | |
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, 2024 and December 31, 2023: • Investment Securities : The fair value for investment securities is 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 fair value in the aggregate as determined by the outstanding commitments from investors. As such, we classify those loans subjected to recurring 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. In addition, the Company will enter into risk participation agreements ("RPA"). Under an RPA-in agreement, a derivative liability, the Company assumes, or participates in, a portion of the credit risk associated with the interest rate swap position with the commercial borrower, for a fee received from the other bank. Under an RPA-out agreement, a derivative asset, the Company participates out a portion of the credit risk associated with the interest rate swap position executed with the commercial borrower, for a fee paid to the participating bank. RPAs are derivative financial instruments recorded at fair value. Although we have determined that a majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit assumptions associated with our risk participation agreements utilize Level 3 inputs. Estimated fair values for the Company’s financial instruments are as follows, as of the dates noted: March 31, 2024 Carrying Estimated Fair Value Measurements ($ in thousands) Quoted Prices Significant Significant Financial Instruments: Assets: Cash and cash equivalents $ 339,964 $ 339,964 $ 339,964 $ — $ — Securities available-for-sale 1,088,568 1,088,568 6,742 1,056,214 25,612 Securities held-to-maturity 622,574 577,343 — 577,343 — Loans held for sale 4,241 4,241 — 4,241 — Loans, net 5,085,993 4,841,681 — — 4,841,681 Accrued interest receivable 34,954 34,954 — 7,604 27,350 Interest rate swaps 11,987 11,987 — 11,957 30 Liabilities: Noninterest-bearing deposits $ 1,836,952 $ 1,836,952 $ — $ 1,836,952 $ — Interest-bearing deposits 4,873,403 4,690,163 — 4,690,163 — Subordinated debentures 123,472 106,946 — — 106,946 FHLB and other borrowings 110,000 110,000 — 110,000 — Accrued interest payable 13,705 13,705 — 13,705 — Interest rate swaps 11,988 11,988 — 11,957 31 December 31, 2023 Carrying Estimated Fair Value Measurements ($ in thousands) Quoted Significant Significant Financial Instruments: Assets: Cash and cash equivalents $ 355,147 $ 355,147 $ 355,147 $ — $ — Securities available-for-sale 1,042,365 1,042,365 16,675 1,007,477 18,213 Securities held-to-maturity 654,539 615,944 — 615,944 — Loans held for sale 2,914 2,914 — 2,914 — Loans, net 5,116,010 4,877,935 — — 4,877,935 Accrued interest receivable 33,300 33,300 — 8,632 24,668 Interest rate swaps 12,170 12,170 — 12,129 41 Liabilities: Non-interest-bearing deposits $ 1,849,013 $ 1,849,013 $ — $ 1,849,013 $ — Interest-bearing deposits 4,613,859 4,430,227 — 4,430,227 — Subordinated debentures 123,386 109,426 — — 109,426 FHLB and other borrowings 390,000 390,000 — 390,000 — Accrued interest payable 22,702 22,702 — 22,702 — Interest rate swaps 12,175 12,175 — 12,129 46 Assets measured at fair value on a recurring basis are summarized below: March 31, 2024 ($ in thousands) Fair Value Fair Value Measurements Using Quoted Prices in Significant Other Significant Assets: Available-for-sale U.S. Treasury $ 6,742 $ 6,742 $ — $ — Obligations of U.S. Government agencies and sponsored entities 99,787 — 99,787 — Municipal securities 428,995 — 403,413 25,582 Mortgage-backed securities 515,517 — 515,517 — Corporate obligations 34,476 — 34,446 30 Other 3,051 — 3,051 — Total available-for-sale $ 1,088,568 $ 6,742 $ 1,056,214 $ 25,612 Loans held for sale $ 4,241 $ — $ 4,241 $ — Interest rate swaps $ 11,987 $ — $ 11,957 $ 30 Liabilities: Interest rate swaps $ 11,988 $ — $ 11,957 $ 31 December 31, 2023 ($ in thousands) Fair Value Fair Value Measurements Using Quoted Prices in Significant Other Significant Available-for-sale U.S. Treasury $ 16,675 $ 16,675 $ — $ — Obligations of U.S. Government agencies and sponsored entities 104,923 — 104,923 — Municipal securities 438,466 — 420,283 18,183 Mortgage-backed securities 441,661 — 441,661 — Corporate obligations 37,597 — 37,567 30 Other 3,043 — 3,043 — Total available-for-sale $ 1,042,365 $ 16,675 $ 1,007,477 $ 18,213 Loans held for sale $ 2,914 $ — $ 2,914 $ — Interest rate swaps $ 12,170 $ — $ 12,129 $ 41 Liabilities: Interest rate swaps $ 12,175 $ — $ 12,129 $ 46 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) 2024 2023 Balance, January 1 $ 30 $ 31 Balance at March 31 $ 30 $ 31 Municipal Securities ($ in thousands) 2024 2023 Balance, January 1 $ 18,183 $ 15,117 Maturities, calls and paydowns (221) (216) Transfer from level 2 to level 3 7,629 — Unrealized gain (loss) included in comprehensive income (9) 726 Balance at March 31 $ 25,582 $ 15,627 Interest Rate Swaps - Risk Participations ($ in thousands) 2024 Balance, January 1 $ (5) RPA-in 15 RPA-out (11) Balance at March 31 $ (1) 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, 2024 and December 31, 2023. 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, 2024 $ 30 Discounted cash flow Probability of default 7.71% - 7.82% December 31, 2023 $ 30 Discounted cash flow Probability of default 7.81% - 7.89% Municipal Securities Fair Value Valuation Technique Significant Range of Inputs March 31, 2024 $ 25,582 Discounted cash flow Discount Rate 3.59% - 7.59% December 31, 2023 $ 18,183 Discounted cash flow Discount Rate 2.34% - 5.50% Interest Rate Swaps - Risk Participations Fair Value Valuation Technique Significant Range of Inputs March 31, 2024 $ (1) Credit Value Adjustment Credit Spread 225 bps - 300 bps Recovery Rate 70% December 31, 2023 $ (5) Credit Value Adjustment Credit Spread 225 bps - 300 bps Recovery Rate 70% 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, 2024 and December 31, 2023. March 31, 2024 ($ in thousands) Fair Value Measurements Using Fair Value Quoted Prices in Significant Significant Collateral dependent loans $ 2,285 $ — $ — $ 2,285 Other real estate owned 6,743 — — 6,743 December 31, 2023 ($ in thousands) Fair Value Measurements Using Fair Value Quoted Prices in Significant Significant Collateral dependent loans $ 2,494 $ — $ — $ 2,494 Other real estate owned 8,320 — — 8,320 |
SECURITIES
SECURITIES | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
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, 2024 and December 31, 2023. ($ in thousands) March 31, 2024 Amortized Gross Gross Estimated Available-for-sale securities: U.S. Treasury $ 6,989 $ — $ 247 $ 6,742 Obligations of U.S. government agencies and sponsored entities 114,588 — 14,801 99,787 Tax-exempt and taxable obligations of states and municipal subdivisions 480,597 360 51,962 428,995 Mortgage-backed securities - residential 337,963 11 36,034 301,940 Mortgage-backed securities - commercial 234,691 326 21,440 213,577 Corporate obligations 38,258 — 3,782 34,476 Other 3,077 — 26 3,051 Total available-for-sale $ 1,216,163 $ 697 $ 128,292 $ 1,088,568 Held-to-maturity: U.S. Treasury $ 62,189 $ — $ 2,556 $ 59,633 Obligations of U.S. government agencies and sponsored entities 33,615 — 1,881 31,734 Tax-exempt and taxable obligations of states and municipal subdivisions 246,266 6,108 14,816 237,558 Mortgage-backed securities - residential 138,366 — 16,060 122,306 Mortgage-backed securities - commercial 132,138 — 13,609 118,529 Corporate obligations 10,000 — 2,417 7,583 Total held-to-maturity $ 622,574 $ 6,108 $ 51,339 $ 577,343 ($ in thousands) December 31, 2023 Amortized Gross Gross Estimated Available-for-sale securities: U.S. Treasury $ 16,985 $ — $ 310 $ 16,675 Obligations of U.S. government agencies sponsored entities 119,868 1 14,946 104,923 Tax-exempt and taxable obligations of states and municipal subdivisions 486,293 449 48,276 438,466 Mortgage-backed securities - residential 297,735 11 34,430 263,316 Mortgage-backed securities - commercial 198,944 76 20,675 178,345 Corporate obligations 41,347 — 3,750 37,597 Other 3,055 — 12 3,043 Total available-for-sale $ 1,164,227 $ 537 $ 122,399 $ 1,042,365 Held-to-maturity: U.S. Treasury $ 89,688 $ — $ 2,804 $ 86,884 Obligations of U.S. government agencies and sponsored entities 33,659 — 1,803 31,856 Tax-exempt and taxable obligations of states and municipal subdivisions 246,908 9,566 14,697 241,777 Mortgage-backed securities - residential 141,573 — 14,237 127,336 Mortgage-backed securities - commercial 132,711 — 12,334 120,377 Corporate obligations 10,000 — 2,286 7,714 Total held-to-maturity $ 654,539 $ 9,566 $ 48,161 $ 615,944 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, 2024 and December 31, 2023, 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 $4.6 million and $5.2 million at March 31, 2024 and December 31, 2023, 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, 2024 and December 31, 2023. Securities Held to Maturity At March 31, 2024 and December 31, 2023, the potential credit loss exposure was $226 thousand and $205 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, 2024. Accrued interest receivable is excluded from the estimate of credit losses for securities held-to-maturity. Accrued interest receivable totaled $2.7 million and $3.4 million at March 31, 2024 and December 31, 2023, respectively and was reported in interest receivable on the accompanying Consolidated Balance Sheet. At both March 31, 2024 and December 31, 2023, the Company had no securities held-to-maturity that were past due 30 days or more as to principal or interest payments. The Company had no securities held-to-maturity classified as nonaccrual at both March 31, 2024 and December 31, 2023. The Company monitors the credit quality of the debt securities held-to-maturity through the use of credit ratings. The Company monitors the credit ratings on a quarterly basis. The following table summarizes the amortized cost of debt securities held-to-maturity at March 31, 2024 and December 31, 2023, aggregated by credit quality indicators. ($ in thousands) March 31, 2024 December 31, 2023 Aaa $ 400,229 $ 431,527 Aa1/Aa2/Aa3 129,834 129,751 A1/A2 13,940 13,902 BBB 10,000 10,000 Not rated 68,571 69,359 Total $ 622,574 $ 654,539 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, 2024 Amortized Fair Available-for-sale: Due less than one year $ 35,451 $ 35,045 Due after one year through five years 148,780 141,077 Due after five years through ten years 322,402 280,601 Due greater than ten years 136,876 116,328 Mortgage-backed securities - residential 337,963 301,940 Mortgage-backed securities - commercial 234,691 213,577 Total $ 1,216,163 $ 1,088,568 Held-to-maturity: Due less than one year $ 29,130 $ 28,536 Due after one year through five years 54,788 52,372 Due after five years through ten years 58,556 53,344 Due greater than ten years 209,596 202,256 Mortgage-backed securities - residential 138,366 122,306 Mortgage-backed securities - commercial 132,138 118,529 Total $ 622,574 $ 577,343 Total securities pledged as collateral, to secure public deposits and for other purposes, was $1.321 billion at March 31, 2024 and $1.095 billion at December 31, 2023, respectively. The following table summarizes securities in an unrealized loss position for which an allowance for credit losses has not been recorded at March 31, 2024 and December 31, 2023. The securities are aggregated by major security type and length of time in a continuous unrealized loss position: ($ in thousands) March 31, 2024 Losses < 12 Months Losses 12 Months or > Total Fair Gross Fair Gross Fair Gross Available-for-sale: U.S. Treasury $ — $ — $ 6,742 $ 247 $ 6,742 $ 247 Obligations of U.S. government agencies and sponsored entities 258 — 99,374 14,801 99,632 14,801 Tax-exempt and taxable obligations of state and municipal subdivisions 38,338 3,528 372,292 48,434 410,630 51,962 Mortgage-backed securities - residential 49,355 311 251,328 35,723 300,683 36,034 Mortgage-backed securities - commercial 3,699 25 164,761 21,415 168,460 21,440 Corporate obligations — — 33,976 3,782 33,976 3,782 Other 3,051 26 — — 3,051 26 Total $ 94,701 $ 3,890 $ 928,473 $ 124,402 $ 1,023,174 $ 128,292 Held-to-maturity: U.S. Treasury $ — $ — $ 59,633 $ 2,556 $ 59,633 $ 2,556 Obligations of U.S. government agencies and sponsored entities 743 17 30,991 1,864 31,734 1,881 Tax-exempt and taxable obligations of state and municipal subdivisions 10,178 216 100,427 14,600 110,605 14,816 Mortgage-backed securities - residential — — 122,306 16,060 122,306 16,060 Mortgage-backed securities - commercial 902 20 117,627 13,589 118,529 13,609 Corporate obligations — — 7,583 2,417 7,583 2,417 Total $ 11,823 $ 253 $ 438,567 $ 51,086 $ 450,390 $ 51,339 ($ in thousands) December 31, 2023 Losses < 12 Months Losses 12 Months or > Total Fair Gross Fair Gross Fair Gross Available-for-sale: U.S. Treasury $ — $ — $ 16,675 $ 310 $ 16,675 $ 310 Obligations of U.S. government agencies and sponsored entities 123 — 104,495 14,946 104,618 14,946 Tax-exempt and taxable obligations of state and municipal subdivisions 20,879 1,479 389,113 46,797 409,992 48,276 Mortgage-backed securities - residential 222 2 262,012 34,428 262,234 34,430 Mortgage-backed securities - commercial 2,896 52 170,256 20,623 173,152 20,675 Corporate obligations — — 37,597 3,750 37,597 3,750 Other 3,055 12 — — 3,055 12 Total $ 27,175 $ 1,545 $ 980,148 $ 120,854 $ 1,007,323 $ 122,399 Held-to-maturity: U.S. Treasury $ — $ — $ 86,884 $ 2,804 $ 86,884 $ 2,804 Obligations of U.S. government agencies and sponsored entities 747 5 31,109 1,798 31,856 1,803 Tax-exempt and taxable obligations of state and municipal subdivisions 10,472 3,949 91,480 10,748 101,952 14,697 Mortgage-backed securities - residential — — 127,336 14,237 127,336 14,237 Mortgage-backed securities - commercial 920 2 119,457 12,332 120,377 12,334 Corporate obligations — — 7,714 2,286 7,714 2,286 Total $ 12,139 $ 3,956 $ 463,980 $ 44,205 $ 476,119 $ 48,161 |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | LOANS AND ALLOWANCE FOR CREDIT LOSSES 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, 2024 December 31, 2023 Loans held for sale Mortgage loans held for sale $ 4,241 $ 2,914 Total LHFS $ 4,241 $ 2,914 Loans held for investment Commercial, financial and agriculture (1) $ 772,124 $ 800,324 Commercial real estate 3,059,784 3,059,155 Consumer real estate 1,254,397 1,252,795 Consumer installment 53,647 57,768 Total loans 5,139,952 5,170,042 Less allowance for credit losses (53,959) (54,032) Net LHFI $ 5,085,993 $ 5,116,010 ____________________________________________________________ (1) Loan balance includes $320 thousand and $386 thousand in Paycheck Protection Program (“PPP”) loans as of March 31, 2024 and December 31, 2023, respectively. Accrued interest receivable is not included in the amortized cost basis of the Company’s LHFI. At March 31, 2024 and December 31, 2023, accrued interest receivable for LHFI totaled $27.4 million and $24.7 million, respectively, with no related ACL and was reported in interest receivable on the accompanying consolidated balance sheet. Nonaccrual and Past Due LHFI Past due LHFI are loans contractually past due 30 days or more as to principal or interest payments. Generally, the Company will place a delinquent loan in nonaccrual status when the loan becomes 90 days or more past due. At the time a loan is placed in nonaccrual status, all interest which has been accrued on the loan but remains unpaid is reversed and deducted from earnings as a reduction of reported interest income. No additional interest is accrued on the loan balance until the collection of both principal and interest becomes reasonably certain. The following tables present the aging of the amortized cost basis in past due loans in addition to those loans classified as nonaccrual including purchase credit deteriorated (“PCD”) loans: ($ in thousands) March 31, 2024 Past Due Past Due Nonaccrual PCD Total Total Nonaccrual Commercial, financial and agriculture (1) $ 1,768 $ 24 $ 991 $ 691 $ 3,474 $ 772,124 $ 468 Commercial real estate 2,714 455 3,650 660 7,479 3,059,784 300 Consumer real estate 4,631 137 1,987 2,942 9,697 1,254,397 789 Consumer installment 398 71 40 — 509 53,647 11 Total $ 9,511 $ 687 $ 6,668 $ 4,293 $ 21,159 $ 5,139,952 $ 1,568 ___________________________________________________________ (1) Total loan balance includes $320 thousand in PPP loans as of March 31, 2024. December 31, 2023 ($ in thousands) Past Due Past Due 90 Nonaccrual PCD Total Total Nonaccrual Commercial, financial and agriculture (1) $ 2,043 $ 313 $ 353 $ 965 $ 3,674 $ 800,324 $ 465 Commercial real estate 1,698 630 3,790 647 6,765 3,059,155 410 Consumer real estate 3,992 220 1,806 3,098 9,116 1,252,795 680 Consumer installment 180 — 31 — 211 57,768 — Total $ 7,913 $ 1,163 $ 5,980 $ 4,710 $ 19,766 $ 5,170,042 $ 1,555 ___________________________________________________________ (1) Total loan balance includes $386 thousand in PPP loans as of December 31, 2023. 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 following 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, 2024, and December 31, 2023 the amortized cost of the Company’s PCD loans totaled $54.7 million and $57.8 million, respectively, which had an estimated ACL of $3.2 million and $3.7 million, respectively. Loan Modifications The Company adopted ASU No. 2022-02 effective January 1, 2023. These amendments eliminate the TDR recognition and measurement guidance and enhanced disclosures for loan modifications to borrowers experiencing financial difficulty. Occasionally, the Company modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, and other-than-insignificant payment delay or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses. In some cases, the Company provides multiple types of concessions on one loan. Typically, one type of concession, such as term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. For loans included in the "combination" columns below, multiple types of modifications have been made on the same loan within the current reporting period. The combination is at least two of the following: a term extension, principal forgiveness, an other-than-insignificant payment delay and/or an interest rate reduction. The following table presents the amortized cost basis of loans that were both experiencing financial difficulty and modified during the three months ended March 31, 2024 and March 31, 2023, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below: ($ in thousands) March 31, 2024 Term Extension Combination Payment Deferral and Payment Modification Percentage of Total Loans Held for Investment Commercial real estate $ 578 $ — 0.05 % Total $ 578 $ — 0.05 % March 31, 2023 Term Extension 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. 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, 2024 and December 31, 2023: ($ in thousands) March 31, 2024 Real Property Equipment Miscellaneous Total Commercial, financial and agriculture $ 805 $ 186 $ 247 $ 1,238 Commercial real estate 599 — — 599 Consumer real estate 789 — — 789 Consumer installment — 82 — 82 Total $ 2,193 $ 268 $ 247 $ 2,708 December 31, 2023 Real Property Equipment Miscellaneous Total Commercial, financial and agriculture $ — $ 496 $ 918 $ 1,414 Commercial real estate 710 — — 710 Consumer real estate 778 — — 778 Total $ 1,488 $ 496 $ 918 $ 2,902 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 receivable, 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, 2024, these loans totaled $311.5 million, of which $174.9 million had been sold to other financial institutions and $136.5 million was purchased by the Company. As of December 31, 2023, these loans totaled $304.0 million, of which $165.9 million had been sold to other financial institutions and $138.1 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: Loans 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, 2024, 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, 2024 and December 31, 2023. Revolving loans converted to term as of the three months ended March 31, 2024 and December 31, 2023 were not material to the total loan portfolio. As of March 31, 2024 Term Loans Amortized Cost Basis by Origination Year Revolving Total ($ in thousands) 2024 2023 2022 2021 2020 Prior Commercial, financial and agriculture: Risk Rating Pass $ 15,750 $ 97,084 $ 140,290 $ 106,519 $ 40,841 $ 91,445 $ 270,636 $ 762,565 Special mention — 7 — 635 3,128 1,085 10 4,865 Substandard 75 449 714 610 255 2,182 409 4,694 Doubtful — — — — — — — — Total commercial, financial and agriculture $ 15,825 $ 97,540 $ 141,004 $ 107,764 $ 44,224 $ 94,712 $ 271,055 $ 772,124 Current period gross write offs $ — $ 20 $ 114 $ 25 $ — $ 236 $ — $ 395 Commercial real estate: Risk Rating Pass $ 48,444 $ 400,705 $ 827,718 $ 532,658 $ 368,103 $ 788,127 $ 5,394 $ 2,971,149 Special mention — 68 690 8,506 3,016 33,898 — 46,178 Substandard — 603 8,232 1,572 535 31,515 — 42,457 Doubtful — — — — — — — — Total commercial real estate $ 48,444 $ 401,376 $ 836,640 $ 542,736 $ 371,654 $ 853,540 $ 5,394 $ 3,059,784 Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer real estate: Risk Rating Pass $ 32,803 $ 175,955 $ 324,453 $ 214,401 $ 124,065 $ 211,149 $ 151,830 $ 1,234,656 Special mention — — 1,342 — — 3,801 697 5,840 Substandard — 907 385 590 1,543 7,290 3,186 13,901 Doubtful — — — — — — — — Total consumer real estate $ 32,803 $ 176,862 $ 326,180 $ 214,991 $ 125,608 $ 222,240 $ 155,713 $ 1,254,397 Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer installment: Risk Rating Pass $ 4,616 $ 20,143 $ 10,652 $ 6,110 $ 2,490 $ 1,930 $ 7,394 $ 53,335 Special mention — — — — — — — — Substandard — 143 20 15 37 90 7 312 Doubtful — — — — — — — — Total consumer installment $ 4,616 $ 20,286 $ 10,672 $ 6,125 $ 2,527 $ 2,020 $ 7,401 $ 53,647 Current period gross write offs $ 3 $ 106 $ 73 $ 25 $ 18 $ 100 $ 20 $ 345 Total Pass $ 101,613 $ 693,887 $ 1,303,113 $ 859,688 $ 535,499 $ 1,092,651 $ 435,254 $ 5,021,705 Special mention — 75 2,032 9,141 6,144 38,784 707 56,883 Substandard 75 2,102 9,351 2,787 2,370 41,077 3,602 61,364 Doubtful — — — — — — — — Total $ 101,688 $ 696,064 $ 1,314,496 $ 871,616 $ 544,013 $ 1,172,512 $ 439,563 $ 5,139,952 Current period gross write offs $ 3 $ 126 $ 187 $ 50 $ 18 $ 336 $ 20 $ 740 As of December 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 $ 102,263 $ 150,420 $ 113,487 $ 47,313 $ 36,065 $ 64,020 $ 281,646 $ 795,214 Special mention — — — 141 797 3 10 951 Substandard 451 330 121 185 550 1,894 628 4,159 Doubtful — — — — — — — — Total commercial, financial and agriculture $ 102,714 $ 150,750 $ 113,608 $ 47,639 $ 37,412 $ 65,917 $ 282,284 $ 800,324 Current period gross write offs $ 14 $ 51 $ 225 $ 139 $ 206 $ 110 $ — $ 745 Commercial real estate: Risk Rating Pass $ 385,954 $ 825,505 $ 558,742 $ 377,085 $ 253,746 $ 569,428 $ 6,397 $ 2,976,857 Special mention — 660 6,118 3,111 9,545 22,648 — 42,082 Substandard 136 7,293 393 566 5,427 26,401 — 40,216 Doubtful — — — — — — — — Total commercial real estate $ 386,090 $ 833,458 $ 565,253 $ 380,762 $ 268,718 $ 618,477 $ 6,397 $ 3,059,155 Current period gross write offs $ — $ — $ 193 $ — $ — $ 57 $ — $ 250 Consumer real estate: Risk Rating Pass $ 176,144 $ 334,056 $ 219,071 $ 127,539 $ 59,615 $ 163,464 $ 153,821 $ 1,233,710 Special mention — 1,081 — — 643 3,246 412 5,382 Substandard 502 404 511 1,559 514 6,988 3,225 13,703 Doubtful — — — — — — — — Total consumer real estate $ 176,646 $ 335,541 $ 219,582 $ 129,098 $ 60,772 $ 173,698 $ 157,458 $ 1,252,795 Current period gross write offs $ 5 $ 19 $ — $ — $ — $ 25 $ — $ 49 Consumer installment: Risk Rating Pass $ 24,482 $ 12,408 $ 7,316 $ 2,919 $ 1,213 $ 1,195 $ 8,156 $ 57,689 Special mention — — — — — — — — Substandard — 8 17 42 11 — 1 79 Doubtful — — — — — — — — Total consumer installment $ 24,482 $ 12,416 $ 7,333 $ 2,961 $ 1,224 $ 1,195 $ 8,157 $ 57,768 Current period gross write offs $ 226 $ 567 $ 223 $ 179 $ 156 $ 576 $ 121 $ 2,048 Total Pass $ 688,843 $ 1,322,389 $ 898,616 $ 554,856 $ 350,639 $ 798,107 $ 450,020 $ 5,063,470 Special mention — 1,741 6,118 3,252 10,985 25,897 422 48,415 Substandard 1,089 8,035 1,042 2,352 6,502 35,283 3,854 58,157 Doubtful — — — — — — — — Total $ 689,932 $ 1,332,165 $ 905,776 $ 560,460 $ 368,126 $ 859,287 $ 454,296 $ 5,170,042 Current period gross write offs $ 245 $ 637 $ 641 $ 318 $ 362 $ 768 $ 121 $ 3,092 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 and 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, 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, 2024 and 2023: ($ in thousands) Three Months Ended March 31, 2024 Commercial, Commercial Consumer Consumer Total Allowance for credit losses: Beginning balance $ 8,844 $ 29,125 $ 15,260 $ 803 $ 54,032 Provision for credit losses — — — — — Loans charged-off (395) — — (345) (740) Recoveries 6 432 20 209 667 Total ending allowance balance $ 8,455 $ 29,557 $ 15,280 $ 667 $ 53,959 ($ 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 Due to a decrease in loans for the first quarter of 2024, the Company recorded no provision for credit losses for the three months ended March 31, 2024, compared to $10.5 million provision for the same period in 2023. During January 2023, loans totaling $1.159 billion, net of purchase accounting adjustments, were acquired in the HSBI acquisition. 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 $10.7 million associated with day one post-merger accounting provision recorded for non-PCD loans and unfunded commitments acquired in the HSBI acquisition. The following table provides the ending balance in the Company’s LHFI and the ACL, broken down by portfolio segment as of March 31, 2024 and December 31, 2023. ($ in thousands) March 31, 2024 Commercial, Commercial Consumer Consumer Total LHFI Individually evaluated $ 1,238 $ 599 $ 789 $ 82 $ 2,708 Collectively evaluated 770,886 3,059,185 1,253,608 53,565 5,137,244 Total $ 772,124 $ 3,059,784 $ 1,254,397 $ 53,647 $ 5,139,952 Allowance for Credit Losses Individually evaluated $ 340 $ 12 $ — $ 71 $ 423 Collectively evaluated 8,115 29,545 15,280 596 53,536 Total $ 8,455 $ 29,557 $ 15,280 $ 667 $ 53,959 ($ in thousands) December 31, 2023 Commercial, Commercial Consumer Consumer Total LHFI Individually evaluated $ 1,414 $ 710 $ 778 $ — $ 2,902 Collectively evaluated 798,910 3,058,445 1,252,017 57,768 5,167,140 Total $ 800,324 $ 3,059,155 $ 1,252,795 $ 57,768 $ 5,170,042 Allowance for Credit Losses Individually evaluated $ 408 $ — $ — $ — $ 408 Collectively evaluated 8,436 29,125 15,260 803 53,624 Total $ 8,844 $ 29,125 $ 15,260 $ 803 $ 54,032 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2024 | |
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 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 and risk participation. Under a back-to-back interest rate swap program, 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. 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. Risk participation agreements are derivative financial instruments and are recorded at fair value. These derivatives are not designated as hedges and therefore, changes in fair value are recorded directly through earnings at each reporting period. Under a risk participation-out agreement, a derivative asset, the Company participates out a portion of the credit risk associated with the interest rate swap position executed with the commercial borrower, for a fee paid to the participating bank. Under a risk participation-in agreement, a derivative liability, the Company assumes, or participates in, a portion of the credit risk associated with the interest rate swap position with the commercial borrower, for a fee received from the other bank. The Company has two risk participation-in swaps and one risk participation-out swap at March 31, 2024. The following table provides outstanding interest rate swaps as of March 31, 2024 and December 31, 2023. ($ in thousands) March 31, 2024 December 31, 2023 Notional amount $ 475,321 $ 493,290 Weighted average pay rate 5.3 % 5.2 % Weighted average receive rate 5.3 % 5.2 % Weighted average maturity in years 5.44 5.39 The following table provides the fair value of interest rate swap contracts at March 31, 2024 and December 31, 2023 included in other assets and other liabilities. ($ in thousands) March 31, 2024 December 31, 2023 Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Interest rate swap contracts $ 11,987 $ 11,988 12,170 $ 12,175 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, 2024 and December 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, 2024, net swap spread income included in other income was $162 thousand compared to $169 thousand for the same period in 2023. Entering into derivative contracts potentially exposes the Company to the risk of counterparties' failure to fulfill their legal obligations, including, but not limited to, potential amounts due or payable under each derivative contract. Notional principal amounts are often used to express the volume of these transactions, but the amounts potentially subject to credit risk are much smaller. The Company assesses the credit risk of its dealer counterparties by regularly monitoring publicly available credit rating information, evaluating other market indicators, and periodically reviewing detailed financials. The Company records the fair value of its interest rate swap contracts separately within other assets and other liabilities as current accounting rules do not permit the netting of customer and counterparty fair value amounts in the consolidated statement of financial condition. |
RECLASSIFICATION
RECLASSIFICATION | 3 Months Ended |
Mar. 31, 2024 | |
RECLASSIFICATION | |
RECLASSIFICATION | RECLASSIFICATION Certain amounts in the 2023 financial statements have been reclassified for comparative purposes to conform to the current period financial statement presentation. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 20,628 | $ 16,271 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
ACCOUNTING STANDARDS (Policies)
ACCOUNTING STANDARDS (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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 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 did not 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." These amendments allow reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. This guidance is effective for the Company January 1, 2024, and did not have a material impact on the Company's consolidated financial statements. New Accounting Standards That Have Not Yet Been Adopted In October 2023, FASB issued ASU No. 2023-06, " Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative." This ASU amends the ASC to incorporate certain disclosure requirements from SEC Release No. 33-10532 - Disclosure Update and Simplification that was issued in 2018. The effective date for each amendment will be the date on which the SEC's removal of that related disclosure from Regulation S-K becomes effective, with early adoption prohibited. This guidance is not expected to have a material impact on the Company's consolidated financial statements. In November 2023, FASB issued ASU No. 2023-07, " Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." This ASU amends the ASC to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The key amendments: 1. Require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss. 2. Require that a public entity disclose, on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition. The other segment items category is the difference between segment revenue less the significant expenses disclosed and each reported measure of segment profit or loss. 3. Require that a public entity provide all annual disclosures about a reportable segment's profit or loss and assets currently required by FASB ASU Topic 280, Segment Reporting, in interim periods. 4. Clarify that if the CODM uses more than one measure of a segment's profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report one or more of those additional measures of segment profit. However, at least one of the reported segment profit or loss measures (or the single reported measure, if only one is disclosed) should be the measure that is most consistent with the measurement principles used in measuring the corresponding amounts in the public entity's consolidated financial statements. 5. Require that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. 6. Require that a public entity has a single reportable segment provide all the disclosures required by the amendments in the ASU and all existing segment disclosures in Topic 280. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. This guidance is not expected to have a material impact on the Company's consolidated financial statements. In December 2023, FASB issued ASU No. 2023-09, " Income Taxes (Topic 740): Improvements to Income Tax Disclosures." This ASU amendments require that a public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate). The amendments require that all entities disclose on an annual basis the following information about income taxes paid: 1. The amount of income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes. 2. The amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received). The amendments also require that all entities disclose the following information: 1. Income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign. 2. Income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign. This ASU is effective for annual periods beginning after December 15, 2024. This guidance is not expected to have a material impact on the Company's consolidated financial statements. In March 2024, FASB issued ASU No. 2024-02, Codification Improvements - Amendments to Remove References to the Concepts Statements: |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | ($ in thousands) As Initially Measurement As Adjusted Identifiable assets: Cash and due from banks $ 106,973 $ (180) $ 106,793 Investments 172,775 — 172,775 Loans 1,155,712 — 1,155,712 Core deposit intangible 43,739 — 43,739 Personal and real property 35,963 — 35,963 Other real estate owned 857 332 1,189 Bank owned life insurance 35,579 — 35,579 Deferred taxes 6,761 (632) 6,129 Interest receivable 4,349 — 4,349 Other assets 3,103 — 3,103 Total assets 1,565,811 (480) 1,565,331 Liabilities and equity: Deposits 1,392,432 — 1,392,432 Trust Preferred 9,015 — 9,015 Other liabilities 34,271 — 34,271 Total liabilities 1,435,718 — 1,435,718 Net assets acquired 130,093 (480) 129,613 Consideration paid 221,538 — 221,538 Goodwill $ 91,445 $ 480 $ 91,925 The following table summarizes the finalized fair values of the assets acquired and liabilities assumed including the goodwill generated from the transaction on August 1, 2022, along with valuation adjustments that have been made since initially reported. ($ in thousands) As Initially Reported Measurement Period Adjustments As Adjusted Purchase price: Cash and stock $ 101,470 $ — $ 101,470 Total purchase price 101,470 — 101,470 Identifiable assets: Cash $ 23,939 $ — $ 23,939 Investments 22,907 (264) 22,643 Loans 482,903 2,268 485,171 Other real estate 8,797 (580) 8,217 Bank owned life insurance 10,092 — 10,092 Core deposit intangible 9,791 — 9,791 Personal and real property 13,825 (1,868) 11,957 Deferred tax asset 28,105 (970) 27,135 Other assets 9,649 (414) 9,235 Total assets 610,008 (1,828) 608,180 Liabilities and equity: Deposits 490,588 3 490,591 Borrowings 25,000 — 25,000 Other liabilities 14,772 — 14,772 Total liabilities 530,360 3 530,363 Net assets acquired 79,648 (1,831) 77,817 Goodwill $ 21,822 $ 1,831 $ 23,653 During the third quarter of 2023, the Company finalized its analysis and valuation adjustments that have been made to investments, loans, other real estate, personal and real property, deferred tax asset, other assets, and deposits. |
EARNINGS APPLICABLE TO COMMON_2
EARNINGS APPLICABLE TO COMMON SHAREHOLDERS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 $ 20,628 31,475,254 $ 0.66 $ 16,271 31,309,458 $ 0.52 Effect of dilutive shares: Restricted stock grants 155,491 231,755 Diluted earnings per share $ 20,628 31,630,745 $ 0.65 $ 16,271 31,541,213 $ 0.52 |
FINANCIAL INSTRUMENTS WITH OF_2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024, and December 31, 2023, these financial instruments consisted of the following: ($ in thousands) March 31, 2024 December 31, 2023 Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 35,854 $ 116,668 $ 34,380 $ 50,226 Unused lines of credit 208,878 606,400 231,335 605,646 Standby letters of credit 14,845 14,621 15,573 13,114 |
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, 2024 2023 Balance at beginning of period $ 2,075 $ 1,325 Credit loss expense related to OBSC exposures — 500 Balance at end of period $ 2,075 $ 1,825 |
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, 2024 | |
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, 2024 Carrying Estimated Fair Value Measurements ($ in thousands) Quoted Prices Significant Significant Financial Instruments: Assets: Cash and cash equivalents $ 339,964 $ 339,964 $ 339,964 $ — $ — Securities available-for-sale 1,088,568 1,088,568 6,742 1,056,214 25,612 Securities held-to-maturity 622,574 577,343 — 577,343 — Loans held for sale 4,241 4,241 — 4,241 — Loans, net 5,085,993 4,841,681 — — 4,841,681 Accrued interest receivable 34,954 34,954 — 7,604 27,350 Interest rate swaps 11,987 11,987 — 11,957 30 Liabilities: Noninterest-bearing deposits $ 1,836,952 $ 1,836,952 $ — $ 1,836,952 $ — Interest-bearing deposits 4,873,403 4,690,163 — 4,690,163 — Subordinated debentures 123,472 106,946 — — 106,946 FHLB and other borrowings 110,000 110,000 — 110,000 — Accrued interest payable 13,705 13,705 — 13,705 — Interest rate swaps 11,988 11,988 — 11,957 31 December 31, 2023 Carrying Estimated Fair Value Measurements ($ in thousands) Quoted Significant Significant Financial Instruments: Assets: Cash and cash equivalents $ 355,147 $ 355,147 $ 355,147 $ — $ — Securities available-for-sale 1,042,365 1,042,365 16,675 1,007,477 18,213 Securities held-to-maturity 654,539 615,944 — 615,944 — Loans held for sale 2,914 2,914 — 2,914 — Loans, net 5,116,010 4,877,935 — — 4,877,935 Accrued interest receivable 33,300 33,300 — 8,632 24,668 Interest rate swaps 12,170 12,170 — 12,129 41 Liabilities: Non-interest-bearing deposits $ 1,849,013 $ 1,849,013 $ — $ 1,849,013 $ — Interest-bearing deposits 4,613,859 4,430,227 — 4,430,227 — Subordinated debentures 123,386 109,426 — — 109,426 FHLB and other borrowings 390,000 390,000 — 390,000 — Accrued interest payable 22,702 22,702 — 22,702 — Interest rate swaps 12,175 12,175 — 12,129 46 |
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, 2024 ($ in thousands) Fair Value Fair Value Measurements Using Quoted Prices in Significant Other Significant Assets: Available-for-sale U.S. Treasury $ 6,742 $ 6,742 $ — $ — Obligations of U.S. Government agencies and sponsored entities 99,787 — 99,787 — Municipal securities 428,995 — 403,413 25,582 Mortgage-backed securities 515,517 — 515,517 — Corporate obligations 34,476 — 34,446 30 Other 3,051 — 3,051 — Total available-for-sale $ 1,088,568 $ 6,742 $ 1,056,214 $ 25,612 Loans held for sale $ 4,241 $ — $ 4,241 $ — Interest rate swaps $ 11,987 $ — $ 11,957 $ 30 Liabilities: Interest rate swaps $ 11,988 $ — $ 11,957 $ 31 December 31, 2023 ($ in thousands) Fair Value Fair Value Measurements Using Quoted Prices in Significant Other Significant Available-for-sale U.S. Treasury $ 16,675 $ 16,675 $ — $ — Obligations of U.S. Government agencies and sponsored entities 104,923 — 104,923 — Municipal securities 438,466 — 420,283 18,183 Mortgage-backed securities 441,661 — 441,661 — Corporate obligations 37,597 — 37,567 30 Other 3,043 — 3,043 — Total available-for-sale $ 1,042,365 $ 16,675 $ 1,007,477 $ 18,213 Loans held for sale $ 2,914 $ — $ 2,914 $ — Interest rate swaps $ 12,170 $ — $ 12,129 $ 41 Liabilities: Interest rate swaps $ 12,175 $ — $ 12,129 $ 46 |
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) 2024 2023 Balance, January 1 $ 30 $ 31 Balance at March 31 $ 30 $ 31 Municipal Securities ($ in thousands) 2024 2023 Balance, January 1 $ 18,183 $ 15,117 Maturities, calls and paydowns (221) (216) Transfer from level 2 to level 3 7,629 — Unrealized gain (loss) included in comprehensive income (9) 726 Balance at March 31 $ 25,582 $ 15,627 |
Schedule of Quantitative Information About Recurring Level 3 Fair Value Measurements | Interest Rate Swaps - Risk Participations ($ in thousands) 2024 Balance, January 1 $ (5) RPA-in 15 RPA-out (11) Balance at March 31 $ (1) 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, 2024 and December 31, 2023. 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, 2024 $ 30 Discounted cash flow Probability of default 7.71% - 7.82% December 31, 2023 $ 30 Discounted cash flow Probability of default 7.81% - 7.89% Municipal Securities Fair Value Valuation Technique Significant Range of Inputs March 31, 2024 $ 25,582 Discounted cash flow Discount Rate 3.59% - 7.59% December 31, 2023 $ 18,183 Discounted cash flow Discount Rate 2.34% - 5.50% Interest Rate Swaps - Risk Participations Fair Value Valuation Technique Significant Range of Inputs March 31, 2024 $ (1) Credit Value Adjustment Credit Spread 225 bps - 300 bps Recovery Rate 70% December 31, 2023 $ (5) Credit Value Adjustment Credit Spread 225 bps - 300 bps Recovery Rate 70% |
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, 2024 and December 31, 2023. March 31, 2024 ($ in thousands) Fair Value Measurements Using Fair Value Quoted Prices in Significant Significant Collateral dependent loans $ 2,285 $ — $ — $ 2,285 Other real estate owned 6,743 — — 6,743 December 31, 2023 ($ in thousands) Fair Value Measurements Using Fair Value Quoted Prices in Significant Significant Collateral dependent loans $ 2,494 $ — $ — $ 2,494 Other real estate owned 8,320 — — 8,320 |
SECURITIES (Tables)
SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
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, 2024 and December 31, 2023. ($ in thousands) March 31, 2024 Amortized Gross Gross Estimated Available-for-sale securities: U.S. Treasury $ 6,989 $ — $ 247 $ 6,742 Obligations of U.S. government agencies and sponsored entities 114,588 — 14,801 99,787 Tax-exempt and taxable obligations of states and municipal subdivisions 480,597 360 51,962 428,995 Mortgage-backed securities - residential 337,963 11 36,034 301,940 Mortgage-backed securities - commercial 234,691 326 21,440 213,577 Corporate obligations 38,258 — 3,782 34,476 Other 3,077 — 26 3,051 Total available-for-sale $ 1,216,163 $ 697 $ 128,292 $ 1,088,568 Held-to-maturity: U.S. Treasury $ 62,189 $ — $ 2,556 $ 59,633 Obligations of U.S. government agencies and sponsored entities 33,615 — 1,881 31,734 Tax-exempt and taxable obligations of states and municipal subdivisions 246,266 6,108 14,816 237,558 Mortgage-backed securities - residential 138,366 — 16,060 122,306 Mortgage-backed securities - commercial 132,138 — 13,609 118,529 Corporate obligations 10,000 — 2,417 7,583 Total held-to-maturity $ 622,574 $ 6,108 $ 51,339 $ 577,343 ($ in thousands) December 31, 2023 Amortized Gross Gross Estimated Available-for-sale securities: U.S. Treasury $ 16,985 $ — $ 310 $ 16,675 Obligations of U.S. government agencies sponsored entities 119,868 1 14,946 104,923 Tax-exempt and taxable obligations of states and municipal subdivisions 486,293 449 48,276 438,466 Mortgage-backed securities - residential 297,735 11 34,430 263,316 Mortgage-backed securities - commercial 198,944 76 20,675 178,345 Corporate obligations 41,347 — 3,750 37,597 Other 3,055 — 12 3,043 Total available-for-sale $ 1,164,227 $ 537 $ 122,399 $ 1,042,365 Held-to-maturity: U.S. Treasury $ 89,688 $ — $ 2,804 $ 86,884 Obligations of U.S. government agencies and sponsored entities 33,659 — 1,803 31,856 Tax-exempt and taxable obligations of states and municipal subdivisions 246,908 9,566 14,697 241,777 Mortgage-backed securities - residential 141,573 — 14,237 127,336 Mortgage-backed securities - commercial 132,711 — 12,334 120,377 Corporate obligations 10,000 — 2,286 7,714 Total held-to-maturity $ 654,539 $ 9,566 $ 48,161 $ 615,944 |
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, 2024 and December 31, 2023, aggregated by credit quality indicators. ($ in thousands) March 31, 2024 December 31, 2023 Aaa $ 400,229 $ 431,527 Aa1/Aa2/Aa3 129,834 129,751 A1/A2 13,940 13,902 BBB 10,000 10,000 Not rated 68,571 69,359 Total $ 622,574 $ 654,539 |
Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | ($ in thousands) March 31, 2024 Amortized Fair Available-for-sale: Due less than one year $ 35,451 $ 35,045 Due after one year through five years 148,780 141,077 Due after five years through ten years 322,402 280,601 Due greater than ten years 136,876 116,328 Mortgage-backed securities - residential 337,963 301,940 Mortgage-backed securities - commercial 234,691 213,577 Total $ 1,216,163 $ 1,088,568 Held-to-maturity: Due less than one year $ 29,130 $ 28,536 Due after one year through five years 54,788 52,372 Due after five years through ten years 58,556 53,344 Due greater than ten years 209,596 202,256 Mortgage-backed securities - residential 138,366 122,306 Mortgage-backed securities - commercial 132,138 118,529 Total $ 622,574 $ 577,343 |
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, 2024 and December 31, 2023. The securities are aggregated by major security type and length of time in a continuous unrealized loss position: ($ in thousands) March 31, 2024 Losses < 12 Months Losses 12 Months or > Total Fair Gross Fair Gross Fair Gross Available-for-sale: U.S. Treasury $ — $ — $ 6,742 $ 247 $ 6,742 $ 247 Obligations of U.S. government agencies and sponsored entities 258 — 99,374 14,801 99,632 14,801 Tax-exempt and taxable obligations of state and municipal subdivisions 38,338 3,528 372,292 48,434 410,630 51,962 Mortgage-backed securities - residential 49,355 311 251,328 35,723 300,683 36,034 Mortgage-backed securities - commercial 3,699 25 164,761 21,415 168,460 21,440 Corporate obligations — — 33,976 3,782 33,976 3,782 Other 3,051 26 — — 3,051 26 Total $ 94,701 $ 3,890 $ 928,473 $ 124,402 $ 1,023,174 $ 128,292 Held-to-maturity: U.S. Treasury $ — $ — $ 59,633 $ 2,556 $ 59,633 $ 2,556 Obligations of U.S. government agencies and sponsored entities 743 17 30,991 1,864 31,734 1,881 Tax-exempt and taxable obligations of state and municipal subdivisions 10,178 216 100,427 14,600 110,605 14,816 Mortgage-backed securities - residential — — 122,306 16,060 122,306 16,060 Mortgage-backed securities - commercial 902 20 117,627 13,589 118,529 13,609 Corporate obligations — — 7,583 2,417 7,583 2,417 Total $ 11,823 $ 253 $ 438,567 $ 51,086 $ 450,390 $ 51,339 ($ in thousands) December 31, 2023 Losses < 12 Months Losses 12 Months or > Total Fair Gross Fair Gross Fair Gross Available-for-sale: U.S. Treasury $ — $ — $ 16,675 $ 310 $ 16,675 $ 310 Obligations of U.S. government agencies and sponsored entities 123 — 104,495 14,946 104,618 14,946 Tax-exempt and taxable obligations of state and municipal subdivisions 20,879 1,479 389,113 46,797 409,992 48,276 Mortgage-backed securities - residential 222 2 262,012 34,428 262,234 34,430 Mortgage-backed securities - commercial 2,896 52 170,256 20,623 173,152 20,675 Corporate obligations — — 37,597 3,750 37,597 3,750 Other 3,055 12 — — 3,055 12 Total $ 27,175 $ 1,545 $ 980,148 $ 120,854 $ 1,007,323 $ 122,399 Held-to-maturity: U.S. Treasury $ — $ — $ 86,884 $ 2,804 $ 86,884 $ 2,804 Obligations of U.S. government agencies and sponsored entities 747 5 31,109 1,798 31,856 1,803 Tax-exempt and taxable obligations of state and municipal subdivisions 10,472 3,949 91,480 10,748 101,952 14,697 Mortgage-backed securities - residential — — 127,336 14,237 127,336 14,237 Mortgage-backed securities - commercial 920 2 119,457 12,332 120,377 12,334 Corporate obligations — — 7,714 2,286 7,714 2,286 Total $ 12,139 $ 3,956 $ 463,980 $ 44,205 $ 476,119 $ 48,161 |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Schedule of Composition of Loan Portfolio | The following table shows the composition of the loan portfolio: ($ in thousands) March 31, 2024 December 31, 2023 Loans held for sale Mortgage loans held for sale $ 4,241 $ 2,914 Total LHFS $ 4,241 $ 2,914 Loans held for investment Commercial, financial and agriculture (1) $ 772,124 $ 800,324 Commercial real estate 3,059,784 3,059,155 Consumer real estate 1,254,397 1,252,795 Consumer installment 53,647 57,768 Total loans 5,139,952 5,170,042 Less allowance for credit losses (53,959) (54,032) Net LHFI $ 5,085,993 $ 5,116,010 ____________________________________________________________ (1) Loan balance includes $320 thousand and $386 thousand in Paycheck Protection Program (“PPP”) loans as of March 31, 2024 and December 31, 2023, respectively. |
Schedule of Company's Loans that are Past Due and Nonaccrual Loans Including PCD Loans | The following tables present the aging of the amortized cost basis in past due loans in addition to those loans classified as nonaccrual including purchase credit deteriorated (“PCD”) loans: ($ in thousands) March 31, 2024 Past Due Past Due Nonaccrual PCD Total Total Nonaccrual Commercial, financial and agriculture (1) $ 1,768 $ 24 $ 991 $ 691 $ 3,474 $ 772,124 $ 468 Commercial real estate 2,714 455 3,650 660 7,479 3,059,784 300 Consumer real estate 4,631 137 1,987 2,942 9,697 1,254,397 789 Consumer installment 398 71 40 — 509 53,647 11 Total $ 9,511 $ 687 $ 6,668 $ 4,293 $ 21,159 $ 5,139,952 $ 1,568 ___________________________________________________________ (1) Total loan balance includes $320 thousand in PPP loans as of March 31, 2024. December 31, 2023 ($ in thousands) Past Due Past Due 90 Nonaccrual PCD Total Total Nonaccrual Commercial, financial and agriculture (1) $ 2,043 $ 313 $ 353 $ 965 $ 3,674 $ 800,324 $ 465 Commercial real estate 1,698 630 3,790 647 6,765 3,059,155 410 Consumer real estate 3,992 220 1,806 3,098 9,116 1,252,795 680 Consumer installment 180 — 31 — 211 57,768 — Total $ 7,913 $ 1,163 $ 5,980 $ 4,710 $ 19,766 $ 5,170,042 $ 1,555 ___________________________________________________________ (1) Total loan balance includes $386 thousand in PPP loans as of December 31, 2023. |
Summary of Carrying Amount of Loans Acquired in Business Combination with more than Insignificant Deterioration of Credit Quality since Origination | The following table shows the carrying amount of loans acquired in the BBI and HSBI acquisitions for which there was, at the date of acquisition, more than insignificant deterioration of credit quality since origination: ($ 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 Modified Loans | 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) March 31, 2024 Term Extension Combination Payment Deferral and Payment Modification Percentage of Total Loans Held for Investment Commercial real estate $ 578 $ — 0.05 % Total $ 578 $ — 0.05 % March 31, 2023 Term Extension Combination Payment Deferral and Payment Modification Percentage of Total Loans Held for Investment Commercial real estate $ — $ 301 0.01 % Total $ — $ 301 0.01 % |
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, 2024 and December 31, 2023: ($ in thousands) March 31, 2024 Real Property Equipment Miscellaneous Total Commercial, financial and agriculture $ 805 $ 186 $ 247 $ 1,238 Commercial real estate 599 — — 599 Consumer real estate 789 — — 789 Consumer installment — 82 — 82 Total $ 2,193 $ 268 $ 247 $ 2,708 December 31, 2023 Real Property Equipment Miscellaneous Total Commercial, financial and agriculture $ — $ 496 $ 918 $ 1,414 Commercial real estate 710 — — 710 Consumer real estate 778 — — 778 Total $ 1,488 $ 496 $ 918 $ 2,902 |
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, 2024 and December 31, 2023. Revolving loans converted to term as of the three months ended March 31, 2024 and December 31, 2023 were not material to the total loan portfolio. As of March 31, 2024 Term Loans Amortized Cost Basis by Origination Year Revolving Total ($ in thousands) 2024 2023 2022 2021 2020 Prior Commercial, financial and agriculture: Risk Rating Pass $ 15,750 $ 97,084 $ 140,290 $ 106,519 $ 40,841 $ 91,445 $ 270,636 $ 762,565 Special mention — 7 — 635 3,128 1,085 10 4,865 Substandard 75 449 714 610 255 2,182 409 4,694 Doubtful — — — — — — — — Total commercial, financial and agriculture $ 15,825 $ 97,540 $ 141,004 $ 107,764 $ 44,224 $ 94,712 $ 271,055 $ 772,124 Current period gross write offs $ — $ 20 $ 114 $ 25 $ — $ 236 $ — $ 395 Commercial real estate: Risk Rating Pass $ 48,444 $ 400,705 $ 827,718 $ 532,658 $ 368,103 $ 788,127 $ 5,394 $ 2,971,149 Special mention — 68 690 8,506 3,016 33,898 — 46,178 Substandard — 603 8,232 1,572 535 31,515 — 42,457 Doubtful — — — — — — — — Total commercial real estate $ 48,444 $ 401,376 $ 836,640 $ 542,736 $ 371,654 $ 853,540 $ 5,394 $ 3,059,784 Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer real estate: Risk Rating Pass $ 32,803 $ 175,955 $ 324,453 $ 214,401 $ 124,065 $ 211,149 $ 151,830 $ 1,234,656 Special mention — — 1,342 — — 3,801 697 5,840 Substandard — 907 385 590 1,543 7,290 3,186 13,901 Doubtful — — — — — — — — Total consumer real estate $ 32,803 $ 176,862 $ 326,180 $ 214,991 $ 125,608 $ 222,240 $ 155,713 $ 1,254,397 Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer installment: Risk Rating Pass $ 4,616 $ 20,143 $ 10,652 $ 6,110 $ 2,490 $ 1,930 $ 7,394 $ 53,335 Special mention — — — — — — — — Substandard — 143 20 15 37 90 7 312 Doubtful — — — — — — — — Total consumer installment $ 4,616 $ 20,286 $ 10,672 $ 6,125 $ 2,527 $ 2,020 $ 7,401 $ 53,647 Current period gross write offs $ 3 $ 106 $ 73 $ 25 $ 18 $ 100 $ 20 $ 345 Total Pass $ 101,613 $ 693,887 $ 1,303,113 $ 859,688 $ 535,499 $ 1,092,651 $ 435,254 $ 5,021,705 Special mention — 75 2,032 9,141 6,144 38,784 707 56,883 Substandard 75 2,102 9,351 2,787 2,370 41,077 3,602 61,364 Doubtful — — — — — — — — Total $ 101,688 $ 696,064 $ 1,314,496 $ 871,616 $ 544,013 $ 1,172,512 $ 439,563 $ 5,139,952 Current period gross write offs $ 3 $ 126 $ 187 $ 50 $ 18 $ 336 $ 20 $ 740 As of December 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 $ 102,263 $ 150,420 $ 113,487 $ 47,313 $ 36,065 $ 64,020 $ 281,646 $ 795,214 Special mention — — — 141 797 3 10 951 Substandard 451 330 121 185 550 1,894 628 4,159 Doubtful — — — — — — — — Total commercial, financial and agriculture $ 102,714 $ 150,750 $ 113,608 $ 47,639 $ 37,412 $ 65,917 $ 282,284 $ 800,324 Current period gross write offs $ 14 $ 51 $ 225 $ 139 $ 206 $ 110 $ — $ 745 Commercial real estate: Risk Rating Pass $ 385,954 $ 825,505 $ 558,742 $ 377,085 $ 253,746 $ 569,428 $ 6,397 $ 2,976,857 Special mention — 660 6,118 3,111 9,545 22,648 — 42,082 Substandard 136 7,293 393 566 5,427 26,401 — 40,216 Doubtful — — — — — — — — Total commercial real estate $ 386,090 $ 833,458 $ 565,253 $ 380,762 $ 268,718 $ 618,477 $ 6,397 $ 3,059,155 Current period gross write offs $ — $ — $ 193 $ — $ — $ 57 $ — $ 250 Consumer real estate: Risk Rating Pass $ 176,144 $ 334,056 $ 219,071 $ 127,539 $ 59,615 $ 163,464 $ 153,821 $ 1,233,710 Special mention — 1,081 — — 643 3,246 412 5,382 Substandard 502 404 511 1,559 514 6,988 3,225 13,703 Doubtful — — — — — — — — Total consumer real estate $ 176,646 $ 335,541 $ 219,582 $ 129,098 $ 60,772 $ 173,698 $ 157,458 $ 1,252,795 Current period gross write offs $ 5 $ 19 $ — $ — $ — $ 25 $ — $ 49 Consumer installment: Risk Rating Pass $ 24,482 $ 12,408 $ 7,316 $ 2,919 $ 1,213 $ 1,195 $ 8,156 $ 57,689 Special mention — — — — — — — — Substandard — 8 17 42 11 — 1 79 Doubtful — — — — — — — — Total consumer installment $ 24,482 $ 12,416 $ 7,333 $ 2,961 $ 1,224 $ 1,195 $ 8,157 $ 57,768 Current period gross write offs $ 226 $ 567 $ 223 $ 179 $ 156 $ 576 $ 121 $ 2,048 Total Pass $ 688,843 $ 1,322,389 $ 898,616 $ 554,856 $ 350,639 $ 798,107 $ 450,020 $ 5,063,470 Special mention — 1,741 6,118 3,252 10,985 25,897 422 48,415 Substandard 1,089 8,035 1,042 2,352 6,502 35,283 3,854 58,157 Doubtful — — — — — — — — Total $ 689,932 $ 1,332,165 $ 905,776 $ 560,460 $ 368,126 $ 859,287 $ 454,296 $ 5,170,042 Current period gross write offs $ 245 $ 637 $ 641 $ 318 $ 362 $ 768 $ 121 $ 3,092 |
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, 2024 and 2023: ($ in thousands) Three Months Ended March 31, 2024 Commercial, Commercial Consumer Consumer Total Allowance for credit losses: Beginning balance $ 8,844 $ 29,125 $ 15,260 $ 803 $ 54,032 Provision for credit losses — — — — — Loans charged-off (395) — — (345) (740) Recoveries 6 432 20 209 667 Total ending allowance balance $ 8,455 $ 29,557 $ 15,280 $ 667 $ 53,959 ($ 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 Due to a decrease in loans for the first quarter of 2024, the Company recorded no provision for credit losses for the three months ended March 31, 2024, compared to $10.5 million provision for the same period in 2023. During January 2023, loans totaling $1.159 billion, net of purchase accounting adjustments, were acquired in the HSBI acquisition. 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 $10.7 million associated with day one post-merger accounting provision recorded for non-PCD loans and unfunded commitments acquired in the HSBI acquisition. The following table provides the ending balance in the Company’s LHFI and the ACL, broken down by portfolio segment as of March 31, 2024 and December 31, 2023. ($ in thousands) March 31, 2024 Commercial, Commercial Consumer Consumer Total LHFI Individually evaluated $ 1,238 $ 599 $ 789 $ 82 $ 2,708 Collectively evaluated 770,886 3,059,185 1,253,608 53,565 5,137,244 Total $ 772,124 $ 3,059,784 $ 1,254,397 $ 53,647 $ 5,139,952 Allowance for Credit Losses Individually evaluated $ 340 $ 12 $ — $ 71 $ 423 Collectively evaluated 8,115 29,545 15,280 596 53,536 Total $ 8,455 $ 29,557 $ 15,280 $ 667 $ 53,959 ($ in thousands) December 31, 2023 Commercial, Commercial Consumer Consumer Total LHFI Individually evaluated $ 1,414 $ 710 $ 778 $ — $ 2,902 Collectively evaluated 798,910 3,058,445 1,252,017 57,768 5,167,140 Total $ 800,324 $ 3,059,155 $ 1,252,795 $ 57,768 $ 5,170,042 Allowance for Credit Losses Individually evaluated $ 408 $ — $ — $ — $ 408 Collectively evaluated 8,436 29,125 15,260 803 53,624 Total $ 8,844 $ 29,125 $ 15,260 $ 803 $ 54,032 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table provides outstanding interest rate swaps as of March 31, 2024 and December 31, 2023. ($ in thousands) March 31, 2024 December 31, 2023 Notional amount $ 475,321 $ 493,290 Weighted average pay rate 5.3 % 5.2 % Weighted average receive rate 5.3 % 5.2 % Weighted average maturity in years 5.44 5.39 |
Schedule of Derivative Liabilities at Fair Value | The following table provides the fair value of interest rate swap contracts at March 31, 2024 and December 31, 2023 included in other assets and other liabilities. ($ in thousands) March 31, 2024 December 31, 2023 Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Interest rate swap contracts $ 11,987 $ 11,988 12,170 $ 12,175 |
Schedule of Derivative Assets at Fair Value | The following table provides the fair value of interest rate swap contracts at March 31, 2024 and December 31, 2023 included in other assets and other liabilities. ($ in thousands) March 31, 2024 December 31, 2023 Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Interest rate swap contracts $ 11,987 $ 11,988 12,170 $ 12,175 |
SUMMARY OF ORGANIZATION - Addit
SUMMARY OF ORGANIZATION - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||||
Apr. 24, 2024 | Feb. 23, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Organization [Line Items] | ||||||
Total assets | $ 7,963,759 | $ 7,999,345 | ||||
Loans, excluding loans held for sale | 5,086,000 | |||||
Deposits | 6,710,355 | 6,462,872 | ||||
Stockholders' equity | 959,912 | $ 896,427 | $ 949,034 | $ 646,663 | ||
Net income | $ 20,628 | $ 16,271 | ||||
Dividends on common stock, per share (in dollars per share) | $ 0.25 | |||||
Dividends declared (in dollars per share) | $ 0.25 | $ 0.21 | ||||
Subsequent Event | ||||||
Organization [Line Items] | ||||||
Dividends declared (in dollars per share) | $ 0.25 |
BUSINESS COMBINATIONS - Narrati
BUSINESS COMBINATIONS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Dec. 31, 2023 | Sep. 30, 2023 | Jan. 01, 2023 | Aug. 01, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | |
BUSINESS COMBINATIONS | ||||||
Goodwill | $ 272,520 | $ 272,520 | ||||
Provision for credit loss | $ 0 | $ 11,000 | ||||
Heritage Southeast Bank | ||||||
BUSINESS COMBINATIONS | ||||||
Entity shares issued per acquiree share (in shares) | 0.965 | |||||
Purchase price | 221,538 | $ 221,538 | ||||
Business acquisition, equity interest issued or issuable, number of shares (in shares) | 6,920,422 | |||||
Cash received in lieu of fractional shares | $ 16 | |||||
Goodwill | 91,925 | 91,445 | ||||
Core deposit intangible | $ 43,739 | 43,739 | ||||
Provision for credit loss | 3,200 | |||||
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 (in shares) | 0.1711 | |||||
Purchase price | $ 101,470 | $ 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 | 23,653 | 21,822 | ||||
Core deposit intangible | $ 9,791 | 9,791 | ||||
Provision for credit loss | $ 1,300 | |||||
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 | 12 Months Ended | 14 Months Ended | ||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jan. 01, 2023 | Aug. 01, 2022 | Dec. 31, 2023 | Sep. 30, 2023 | Mar. 31, 2024 | Jan. 31, 2023 | |
Identifiable assets: | ||||||||
Goodwill | $ 272,520 | $ 272,520 | $ 272,520 | |||||
Heritage Southeast Bank | ||||||||
Identifiable assets: | ||||||||
Consideration paid | 221,538 | $ 221,538 | ||||||
Cash | 106,793 | 106,973 | 106,793 | |||||
Investments | 172,775 | 172,775 | 172,775 | |||||
Loans | 1,155,712 | 1,155,712 | 1,155,712 | $ 1,159,000 | ||||
Other real estate | 1,189 | 857 | 1,189 | |||||
Bank owned life insurance | 35,579 | 35,579 | 35,579 | |||||
Core deposit intangible | 43,739 | 43,739 | 43,739 | |||||
Personal and real property | 35,963 | 35,963 | 35,963 | |||||
Deferred tax asset | 6,129 | 6,761 | 6,129 | |||||
Other assets | 3,103 | 3,103 | 3,103 | |||||
Interest receivable | 4,349 | 4,349 | 4,349 | |||||
Total assets | 1,565,331 | 1,565,811 | 1,565,331 | |||||
Net assets acquired | 129,613 | 130,093 | 129,613 | |||||
Goodwill | 91,925 | 91,445 | 91,925 | |||||
Liabilities and equity: | ||||||||
Deposits | 1,392,432 | 1,392,432 | 1,392,432 | |||||
Borrowings | 9,015 | 9,015 | 9,015 | |||||
Other liabilities | 34,271 | 34,271 | 34,271 | |||||
Total liabilities | $ 1,435,718 | $ 1,435,718 | 1,435,718 | |||||
Measurement Period Adjustments | ||||||||
Consideration paid | 0 | |||||||
Cash | (180) | |||||||
Investments | 0 | |||||||
Loans | 0 | |||||||
Other real estate | 332 | |||||||
Bank owned life insurance | 0 | |||||||
Core deposit intangible | 0 | |||||||
Personal and real property | 0 | |||||||
Deferred tax asset | (632) | |||||||
Interest receivable | 0 | |||||||
Other assets | 0 | |||||||
Total assets | (480) | |||||||
Deposits | 0 | |||||||
Borrowings | 0 | |||||||
Other liabilities | 0 | |||||||
Total liabilities | 0 | |||||||
Net assets acquired | (480) | |||||||
Goodwill | $ 480 | |||||||
Beach Bancorp | ||||||||
Identifiable assets: | ||||||||
Consideration paid | $ 101,470 | $ 101,470 | ||||||
Cash | 23,939 | 23,939 | $ 23,939 | |||||
Investments | 22,643 | 22,907 | 22,643 | |||||
Loans | 485,171 | 482,903 | 485,171 | |||||
Other real estate | 8,217 | 8,797 | 8,217 | |||||
Bank owned life insurance | 10,092 | 10,092 | 10,092 | |||||
Core deposit intangible | 9,791 | 9,791 | 9,791 | |||||
Personal and real property | 11,957 | 13,825 | 11,957 | |||||
Deferred tax asset | 27,135 | 28,105 | 27,135 | |||||
Other assets | 9,235 | 9,649 | 9,235 | |||||
Total assets | 608,180 | 610,008 | 608,180 | |||||
Net assets acquired | 77,817 | 79,648 | 77,817 | |||||
Goodwill | 23,653 | 21,822 | 23,653 | |||||
Liabilities and equity: | ||||||||
Deposits | 490,591 | 490,588 | 490,591 | |||||
Borrowings | 25,000 | 25,000 | 25,000 | |||||
Other liabilities | 14,772 | 14,772 | 14,772 | |||||
Total liabilities | $ 530,363 | $ 530,360 | 530,363 | |||||
Measurement Period Adjustments | ||||||||
Consideration paid | 0 | |||||||
Cash | 0 | |||||||
Investments | (264) | |||||||
Loans | 2,268 | |||||||
Other real estate | (580) | |||||||
Bank owned life insurance | 0 | |||||||
Core deposit intangible | 0 | |||||||
Personal and real property | (1,868) | |||||||
Deferred tax asset | (970) | |||||||
Other assets | (414) | |||||||
Total assets | (1,828) | |||||||
Deposits | 3 | |||||||
Borrowings | 0 | |||||||
Other liabilities | 0 | |||||||
Total liabilities | 3 | |||||||
Net assets acquired | (1,831) | |||||||
Goodwill | $ 1,831 |
EARNINGS APPLICABLE TO COMMON_3
EARNINGS APPLICABLE TO COMMON SHAREHOLDERS - Narrative (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 0 |
Shares of restricted stock granted | 141,457 | 118,689 |
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, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Net income available to common stockholders, basic | $ 20,628 | $ 16,271 |
Net income available to common stockholders, diluted | $ 20,628 | $ 16,271 |
Effect of dilutive shares: | ||
Weighted average number of shares outstanding, basic (in shares) | 31,475,254 | 31,309,458 |
Restricted stock grants (in shares) | 155,491 | 231,755 |
Weighted average number of shares outstanding, diluted (in shares) | 31,630,745 | 31,541,213 |
Basic earnings per share (in dollars per share) | $ 0.66 | $ 0.52 |
Diluted earnings per share (in dollars per share) | $ 0.65 | $ 0.52 |
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, 2024 | Dec. 31, 2023 |
Fixed Rate | ||
Financial instruments with off-balance-sheet risk | ||
Commitments to make loans | $ 35,854 | $ 34,380 |
Unused lines of credit | 208,878 | 231,335 |
Standby letters of credit | 14,845 | 15,573 |
Variable Rate | ||
Financial instruments with off-balance-sheet risk | ||
Commitments to make loans | 116,668 | 50,226 |
Unused lines of credit | 606,400 | 605,646 |
Standby letters of credit | $ 14,621 | $ 13,114 |
FINANCIAL INSTRUMENTS WITH OF_4
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Concentration Risk [Line Items] | ||
Credit loss expense related to OBSC exposures | $ 0 | $ 500,000 |
Minimum | Off balance sheet risk | ||
Concentration Risk [Line Items] | ||
Debt instrument, interest rate, stated percentage | 0% | |
Debt instrument, term | 1 year | |
Maximum | Off balance sheet risk | ||
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, 2024 | Mar. 31, 2023 | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||
Balance at beginning of period | $ 2,075,000 | $ 1,325,000 |
Credit loss expense related to OBSC exposures | 0 | 500,000 |
Balance at end of period | $ 2,075,000 | $ 1,825,000 |
FAIR VALUE DISCLOSURES AND RE_3
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Narrative (Details) | Mar. 31, 2024 |
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, 2024 | Dec. 31, 2023 |
Assets: | ||
Cash and cash equivalents | $ 339,964 | $ 355,147 |
Securities available-for-sale | 1,088,568 | 1,042,365 |
Loans held for sale | 4,241 | 2,914 |
Securities held-to-maturity | 577,343 | 615,944 |
Net loans held for investment | 5,085,993 | 5,116,010 |
Accrued interest receivable | 34,954 | 33,300 |
Liabilities: | ||
Noninterest-bearing | 1,836,952 | 1,849,013 |
Interest-bearing deposits | 4,873,403 | 4,613,859 |
Subordinated debentures | 123,472 | 123,386 |
Accrued interest payable | 13,705 | 22,702 |
Quoted Prices (Level 1) | ||
Assets: | ||
Cash and cash equivalents | 339,964 | 355,147 |
Securities available-for-sale | 6,742 | 16,675 |
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 | 1,056,214 | 1,007,477 |
Loans held for sale | 4,241 | 2,914 |
Securities held-to-maturity | 577,343 | 615,944 |
Net loans held for investment | 0 | 0 |
Accrued interest receivable | 7,604 | 8,632 |
Liabilities: | ||
Noninterest-bearing | 1,836,952 | 1,849,013 |
Interest-bearing deposits | 4,690,163 | 4,430,227 |
Subordinated debentures | 0 | 0 |
FHLB and other borrowings | 110,000 | 390,000 |
Accrued interest payable | 13,705 | 22,702 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale | 25,612 | 18,213 |
Loans held for sale | 0 | 0 |
Securities held-to-maturity | 0 | 0 |
Net loans held for investment | 4,841,681 | 4,877,935 |
Accrued interest receivable | 27,350 | 24,668 |
Liabilities: | ||
Noninterest-bearing | 0 | 0 |
Interest-bearing deposits | 0 | 0 |
Subordinated debentures | 106,946 | 109,426 |
FHLB and other borrowings | 0 | 0 |
Accrued interest payable | 0 | 0 |
Carrying Amount | ||
Assets: | ||
Cash and cash equivalents | 339,964 | 355,147 |
Securities available-for-sale | 1,088,568 | 1,042,365 |
Loans held for sale | 4,241 | 2,914 |
Securities held-to-maturity | 622,574 | 654,539 |
Net loans held for investment | 5,085,993 | 5,116,010 |
Accrued interest receivable | 34,954 | 33,300 |
Liabilities: | ||
Noninterest-bearing | 1,836,952 | 1,849,013 |
Interest-bearing deposits | 4,873,403 | 4,613,859 |
Subordinated debentures | 123,472 | 123,386 |
FHLB and other borrowings | 110,000 | 390,000 |
Accrued interest payable | 13,705 | 22,702 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 339,964 | 355,147 |
Securities available-for-sale | 1,088,568 | 1,042,365 |
Loans held for sale | 4,241 | 2,914 |
Securities held-to-maturity | 577,343 | 615,944 |
Net loans held for investment | 4,841,681 | 4,877,935 |
Accrued interest receivable | 34,954 | 33,300 |
Liabilities: | ||
Noninterest-bearing | 1,836,952 | 1,849,013 |
Interest-bearing deposits | 4,690,163 | 4,430,227 |
Subordinated debentures | 106,946 | 109,426 |
FHLB and other borrowings | 110,000 | 390,000 |
Accrued interest payable | 13,705 | 22,702 |
Interest rate swap contracts | ||
Assets: | ||
Interest rate swaps | 11,987 | 12,170 |
Liabilities: | ||
Interest rate swaps | 11,988 | 12,175 |
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 | 11,957 | 12,129 |
Liabilities: | ||
Interest rate swaps | 11,957 | 12,129 |
Interest rate swap contracts | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Interest rate swaps | 30 | 41 |
Liabilities: | ||
Interest rate swaps | 31 | 46 |
Interest rate swap contracts | Carrying Amount | ||
Assets: | ||
Interest rate swaps | 11,987 | 12,170 |
Liabilities: | ||
Interest rate swaps | 11,988 | 12,175 |
Interest rate swap contracts | Estimated Fair Value | ||
Assets: | ||
Interest rate swaps | 11,987 | 12,170 |
Liabilities: | ||
Interest rate swaps | $ 11,988 | $ 12,175 |
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, 2024 | Dec. 31, 2023 |
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | $ 1,088,568 | $ 1,042,365 |
Loans held for sale | 4,241 | 2,914 |
Interest rate swap contracts | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Interest rate swaps | 11,987 | 12,170 |
Interest rate swaps | 11,988 | 12,175 |
Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 1,088,568 | 1,042,365 |
Recurring basis | Interest rate swap contracts | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Interest rate swaps | 11,987 | 12,170 |
Interest rate swaps | 11,988 | 12,175 |
U.S. Treasury | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 6,742 | 16,675 |
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 | 99,787 | 104,923 |
Municipal securities | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 428,995 | 438,466 |
Mortgage-backed securities | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 515,517 | 441,661 |
Corporate obligations | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 34,476 | 37,597 |
Other | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 3,043 | |
Other | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 3,051 | |
Quoted Prices (Level 1) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 6,742 | 16,675 |
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 | 6,742 | 16,675 |
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 | 6,742 | 16,675 |
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 |
Quoted Prices (Level 1) | Other | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 0 | |
Quoted Prices (Level 1) | Other | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 1,056,214 | 1,007,477 |
Loans held for sale | 4,241 | 2,914 |
Significant Other Observable Inputs (Level 2) | Interest rate swap contracts | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Interest rate swaps | 11,957 | 12,129 |
Interest rate swaps | 11,957 | 12,129 |
Significant Other Observable Inputs (Level 2) | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 1,056,214 | 1,007,477 |
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 | 11,957 | 12,129 |
Interest rate swaps | 11,957 | 12,129 |
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 | 99,787 | 104,923 |
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 | 403,413 | 420,283 |
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 | 515,517 | 441,661 |
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 | 34,446 | 37,567 |
Significant Other Observable Inputs (Level 2) | Other | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 3,043 | |
Significant Other Observable Inputs (Level 2) | Other | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 3,051 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 25,612 | 18,213 |
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 | 30 | 41 |
Interest rate swaps | 31 | 46 |
Significant Unobservable Inputs (Level 3) | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | 25,612 | 18,213 |
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 | 30 | 41 |
Interest rate swaps | 31 | 46 |
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 | 25,582 | 18,183 |
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 | 30 | 30 |
Significant Unobservable Inputs (Level 3) | Other | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | $ 0 | |
Significant Unobservable Inputs (Level 3) | Other | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale | $ 0 |
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, 2024 | Mar. 31, 2023 | |
Bank-Issued Trust Preferred Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, January 1 | $ 30 | $ 31 |
Balance at March 31 | 30 | 31 |
Municipal securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, January 1 | 18,183 | 15,117 |
Maturities, calls and paydowns | (221) | (216) |
Transfer from level 2 to level 3 | 7,629 | 0 |
Unrealized gain (loss) included in comprehensive income | (9) | 726 |
Balance at March 31 | $ 25,582 | $ 15,627 |
FAIR VALUE DISCLOSURES AND RE_7
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Reconciliation of Activity for Liabilities Measured at Fair Value based on Significant Unobservable Information (Details) - Interest Rate Swaps - Risk Participations $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance, January 1 | $ (5) |
RPA-in | 15 |
RPA-out | (11) |
Balance at March 31 | $ (1) |
FAIR VALUE DISCLOSURES AND RE_8
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, 2024 USD ($) basis_point | Dec. 31, 2023 USD ($) basis_point |
Quantitative Information About Recurring Fair Value Measurements [Line Items] | ||
Securities available-for-sale | $ 1,088,568 | $ 1,042,365 |
Credit Value Adjustment | Interest Rate Swaps - Risk Participations | ||
Quantitative Information About Recurring Fair Value Measurements [Line Items] | ||
Interest rate swaps | $ (1) | $ (5) |
Credit Spread | Credit Value Adjustment | Minimum | Interest Rate Swaps - Risk Participations | ||
Quantitative Information About Recurring Fair Value Measurements [Line Items] | ||
Derivative liability, measurement input | basis_point | 225 | 225 |
Credit Spread | Credit Value Adjustment | Maximum | Interest Rate Swaps - Risk Participations | ||
Quantitative Information About Recurring Fair Value Measurements [Line Items] | ||
Derivative liability, measurement input | basis_point | 300 | 300 |
Recovery Rate | Credit Value Adjustment | Interest Rate Swaps - Risk Participations | ||
Quantitative Information About Recurring Fair Value Measurements [Line Items] | ||
Derivative liability, measurement input | 0.70 | 0.70 |
Trust Preferred Securities | Discounted cash flow | ||
Quantitative Information About Recurring Fair Value Measurements [Line Items] | ||
Securities available-for-sale | $ 30 | $ 30 |
Trust Preferred Securities | Probability of default | Discounted cash flow | Minimum | ||
Quantitative Information About Recurring Fair Value Measurements [Line Items] | ||
Range of Inputs | 0.0771 | 0.0781 |
Trust Preferred Securities | Probability of default | Discounted cash flow | Maximum | ||
Quantitative Information About Recurring Fair Value Measurements [Line Items] | ||
Range of Inputs | 0.0782 | 0.0789 |
Municipal securities | Discounted cash flow | ||
Quantitative Information About Recurring Fair Value Measurements [Line Items] | ||
Securities available-for-sale | $ 25,582 | $ 18,183 |
Municipal securities | Discount Rate | Discounted cash flow | Minimum | ||
Quantitative Information About Recurring Fair Value Measurements [Line Items] | ||
Range of Inputs | 0.0359 | 0.0234 |
Municipal securities | Discount Rate | Discounted cash flow | Maximum | ||
Quantitative Information About Recurring Fair Value Measurements [Line Items] | ||
Range of Inputs | 0.0759 | 0.0550 |
FAIR VALUE DISCLOSURES AND RE_9
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, 2024 | Dec. 31, 2023 |
Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | $ 2,285 | $ 2,494 |
Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 6,743 | 8,320 |
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 | 2,285 | 2,494 |
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 | $ 6,743 | $ 8,320 |
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, 2024 | Dec. 31, 2023 |
Available-for-sale securities: | ||
Amortized Cost | $ 1,216,163 | $ 1,164,227 |
Gross Unrealized Gains | 697 | 537 |
Gross Unrealized Losses | 128,292 | 122,399 |
Securities available-for-sale | 1,088,568 | 1,042,365 |
Held-to-maturity: | ||
Amortized Cost | 622,574 | 654,539 |
Gross Unrealized Gains | 6,108 | 9,566 |
Gross Unrealized Losses | 51,339 | 48,161 |
Estimated Fair Value | 577,343 | 615,944 |
U.S. Treasury | ||
Available-for-sale securities: | ||
Amortized Cost | 6,989 | 16,985 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 247 | 310 |
Securities available-for-sale | 6,742 | 16,675 |
Held-to-maturity: | ||
Amortized Cost | 62,189 | 89,688 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 2,556 | 2,804 |
Estimated Fair Value | 59,633 | 86,884 |
Obligations of U.S. government agencies and sponsored entities | ||
Available-for-sale securities: | ||
Amortized Cost | 114,588 | 119,868 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | 14,801 | 14,946 |
Securities available-for-sale | 99,787 | 104,923 |
Held-to-maturity: | ||
Amortized Cost | 33,615 | 33,659 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 1,881 | 1,803 |
Estimated Fair Value | 31,734 | 31,856 |
Tax-exempt and taxable obligations of states and municipal subdivisions | ||
Available-for-sale securities: | ||
Amortized Cost | 480,597 | 486,293 |
Gross Unrealized Gains | 360 | 449 |
Gross Unrealized Losses | 51,962 | 48,276 |
Securities available-for-sale | 428,995 | 438,466 |
Held-to-maturity: | ||
Amortized Cost | 246,266 | 246,908 |
Gross Unrealized Gains | 6,108 | 9,566 |
Gross Unrealized Losses | 14,816 | 14,697 |
Estimated Fair Value | 237,558 | 241,777 |
Mortgage-backed securities - residential | ||
Available-for-sale securities: | ||
Amortized Cost | 337,963 | 297,735 |
Gross Unrealized Gains | 11 | 11 |
Gross Unrealized Losses | 36,034 | 34,430 |
Securities available-for-sale | 301,940 | 263,316 |
Held-to-maturity: | ||
Amortized Cost | 138,366 | 141,573 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 16,060 | 14,237 |
Estimated Fair Value | 122,306 | 127,336 |
Mortgage-backed securities - commercial | ||
Available-for-sale securities: | ||
Amortized Cost | 234,691 | 198,944 |
Gross Unrealized Gains | 326 | 76 |
Gross Unrealized Losses | 21,440 | 20,675 |
Securities available-for-sale | 213,577 | 178,345 |
Held-to-maturity: | ||
Amortized Cost | 132,138 | 132,711 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 13,609 | 12,334 |
Estimated Fair Value | 118,529 | 120,377 |
Corporate obligations | ||
Available-for-sale securities: | ||
Amortized Cost | 38,258 | 41,347 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 3,782 | 3,750 |
Securities available-for-sale | 34,476 | 37,597 |
Held-to-maturity: | ||
Amortized Cost | 10,000 | 10,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 2,417 | 2,286 |
Estimated Fair Value | 7,583 | 7,714 |
Other | ||
Available-for-sale securities: | ||
Amortized Cost | 3,077 | 3,055 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 26 | 12 |
Securities available-for-sale | $ 3,051 | $ 3,043 |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) | Mar. 31, 2024 USD ($) security | Dec. 31, 2023 USD ($) security |
Debt and Equity Securities, FV-NI [Line Items] | ||
Credit loss recognized | $ 0 | $ 0 |
Accrued interest receivable | 4,600,000 | 5,200,000 |
Loans held for investment | 5,139,952,000 | 5,170,042,000 |
Held to maturity, credit loss exposure | 226,000 | 205,000 |
Amount of reserve recorded | 0 | |
Accrued interest receivable of held-to-maturity securities | 2,700,000 | 3,400,000 |
Held-to-maturity, excluding accrued interest, nonaccrual | 0 | 0 |
Total securities pledged | $ 1,321,000,000 | $ 1,095,000,000 |
Number of securities in the portfolio that were in an unrealized loss position | security | 1,138 | 1,125 |
AFS Securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Credit loss recognized | $ 0 | $ 0 |
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, 2024 | Dec. 31, 2023 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | $ 622,574 | $ 654,539 |
Aaa | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 400,229 | 431,527 |
Aa1/Aa2/Aa3 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 129,834 | 129,751 |
A1/A2 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 13,940 | 13,902 |
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 | $ 68,571 | $ 69,359 |
SECURITIES - Amortized Cost and
SECURITIES - Amortized Cost and Fair Value of Debt Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Available-for-Sale, Amortized Cost | ||
Due less than one year | $ 35,451 | |
Due after one year through five years | 148,780 | |
Due after five years through ten years | 322,402 | |
Due greater than ten years | 136,876 | |
Mortgage-backed securities - residential | 337,963 | |
Mortgage-backed securities - commercial | 234,691 | |
Amortized Cost | 1,216,163 | $ 1,164,227 |
Available-for-Sale, Fair Value | ||
Due less than one year | 35,045 | |
Due after one year through five years | 141,077 | |
Due after five years through ten years | 280,601 | |
Due greater than ten years | 116,328 | |
Mortgage-backed securities - residential | 301,940 | |
Mortgage-backed securities - commercial | 213,577 | |
Securities available-for-sale | 1,088,568 | 1,042,365 |
Held-to-maturity, Amortized Cost | ||
Due less than one year | 29,130 | |
Due after one year through five years | 54,788 | |
Due after five years through ten years | 58,556 | |
Due greater than ten years | 209,596 | |
Mortgage-backed securities - residential | 138,366 | |
Mortgage-backed securities - commercial | 132,138 | |
Total | 622,574 | |
Held-to-maturity, Estimated Fair Value | ||
Due less than one year | 28,536 | |
Due after one year through five years | 52,372 | |
Due after five years through ten years | 53,344 | |
Due greater than ten years | 202,256 | |
Mortgage-backed securities - residential | 122,306 | |
Mortgage-backed securities - commercial | 118,529 | |
Total | $ 577,343 | $ 615,944 |
SECURITIES - Summary of Availab
SECURITIES - Summary of Available-For-Sale Securities With Unrealized and Unrecognized Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair value, less than 12 months | $ 94,701 | $ 27,175 |
Fair value, 12 months or longer | 928,473 | 980,148 |
Fair value, total | 1,023,174 | 1,007,323 |
Unrealized losses, less than 12 months | 3,890 | 1,545 |
Unrealized losses, 12 months or longer | 124,402 | 120,854 |
Unrealized losses, total | 128,292 | 122,399 |
Fair value, held-to-maturity, less than 12 months | 11,823 | 12,139 |
Fair value, held-to-maturity, 12 months or longer | 438,567 | 463,980 |
Fair value, held-to-maturity, total | 450,390 | 476,119 |
Unrealized losses, held-to-maturity, less than 12 months | 253 | 3,956 |
Unrealized losses, held-to-maturity, 12 months or longer | 51,086 | 44,205 |
Unrealized losses, held-to-maturity, total | 51,339 | 48,161 |
U.S. Treasury | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair value, less than 12 months | 0 | 0 |
Fair value, 12 months or longer | 6,742 | 16,675 |
Fair value, total | 6,742 | 16,675 |
Unrealized losses, less than 12 months | 0 | 0 |
Unrealized losses, 12 months or longer | 247 | 310 |
Unrealized losses, total | 247 | 310 |
Fair value, held-to-maturity, less than 12 months | 0 | 0 |
Fair value, held-to-maturity, 12 months or longer | 59,633 | 86,884 |
Fair value, held-to-maturity, total | 59,633 | 86,884 |
Unrealized losses, held-to-maturity, less than 12 months | 0 | 0 |
Unrealized losses, held-to-maturity, 12 months or longer | 2,556 | 2,804 |
Unrealized losses, held-to-maturity, total | 2,556 | 2,804 |
Obligations of U.S. government agencies and sponsored entities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair value, less than 12 months | 258 | 123 |
Fair value, 12 months or longer | 99,374 | 104,495 |
Fair value, total | 99,632 | 104,618 |
Unrealized losses, less than 12 months | 0 | 0 |
Unrealized losses, 12 months or longer | 14,801 | 14,946 |
Unrealized losses, total | 14,801 | 14,946 |
Fair value, held-to-maturity, less than 12 months | 743 | 747 |
Fair value, held-to-maturity, 12 months or longer | 30,991 | 31,109 |
Fair value, held-to-maturity, total | 31,734 | 31,856 |
Unrealized losses, held-to-maturity, less than 12 months | 17 | 5 |
Unrealized losses, held-to-maturity, 12 months or longer | 1,864 | 1,798 |
Unrealized losses, held-to-maturity, total | 1,881 | 1,803 |
Tax-exempt and taxable obligations of states and municipal subdivisions | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair value, less than 12 months | 38,338 | 20,879 |
Fair value, 12 months or longer | 372,292 | 389,113 |
Fair value, total | 410,630 | 409,992 |
Unrealized losses, less than 12 months | 3,528 | 1,479 |
Unrealized losses, 12 months or longer | 48,434 | 46,797 |
Unrealized losses, total | 51,962 | 48,276 |
Fair value, held-to-maturity, less than 12 months | 10,178 | 10,472 |
Fair value, held-to-maturity, 12 months or longer | 100,427 | 91,480 |
Fair value, held-to-maturity, total | 110,605 | 101,952 |
Unrealized losses, held-to-maturity, less than 12 months | 216 | 3,949 |
Unrealized losses, held-to-maturity, 12 months or longer | 14,600 | 10,748 |
Unrealized losses, held-to-maturity, total | 14,816 | 14,697 |
Mortgage-backed securities - residential | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair value, less than 12 months | 49,355 | 222 |
Fair value, 12 months or longer | 251,328 | 262,012 |
Fair value, total | 300,683 | 262,234 |
Unrealized losses, less than 12 months | 311 | 2 |
Unrealized losses, 12 months or longer | 35,723 | 34,428 |
Unrealized losses, total | 36,034 | 34,430 |
Fair value, held-to-maturity, less than 12 months | 0 | 0 |
Fair value, held-to-maturity, 12 months or longer | 122,306 | 127,336 |
Fair value, held-to-maturity, total | 122,306 | 127,336 |
Unrealized losses, held-to-maturity, less than 12 months | 0 | 0 |
Unrealized losses, held-to-maturity, 12 months or longer | 16,060 | 14,237 |
Unrealized losses, held-to-maturity, total | 16,060 | 14,237 |
Mortgage-backed securities - commercial | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair value, less than 12 months | 3,699 | 2,896 |
Fair value, 12 months or longer | 164,761 | 170,256 |
Fair value, total | 168,460 | 173,152 |
Unrealized losses, less than 12 months | 25 | 52 |
Unrealized losses, 12 months or longer | 21,415 | 20,623 |
Unrealized losses, total | 21,440 | 20,675 |
Fair value, held-to-maturity, less than 12 months | 902 | 920 |
Fair value, held-to-maturity, 12 months or longer | 117,627 | 119,457 |
Fair value, held-to-maturity, total | 118,529 | 120,377 |
Unrealized losses, held-to-maturity, less than 12 months | 20 | 2 |
Unrealized losses, held-to-maturity, 12 months or longer | 13,589 | 12,332 |
Unrealized losses, held-to-maturity, total | 13,609 | 12,334 |
Corporate obligations | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair value, less than 12 months | 0 | 0 |
Fair value, 12 months or longer | 33,976 | 37,597 |
Fair value, total | 33,976 | 37,597 |
Unrealized losses, less than 12 months | 0 | 0 |
Unrealized losses, 12 months or longer | 3,782 | 3,750 |
Unrealized losses, total | 3,782 | 3,750 |
Fair value, held-to-maturity, less than 12 months | 0 | 0 |
Fair value, held-to-maturity, 12 months or longer | 7,583 | 7,714 |
Fair value, held-to-maturity, total | 7,583 | 7,714 |
Unrealized losses, held-to-maturity, less than 12 months | 0 | 0 |
Unrealized losses, held-to-maturity, 12 months or longer | 2,417 | 2,286 |
Unrealized losses, held-to-maturity, total | 2,417 | 2,286 |
Other | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair value, less than 12 months | 3,051 | 3,055 |
Fair value, 12 months or longer | 0 | 0 |
Fair value, total | 3,051 | 3,055 |
Unrealized losses, less than 12 months | 26 | 12 |
Unrealized losses, 12 months or longer | 0 | 0 |
Unrealized losses, total | $ 26 | $ 12 |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Composition of Loan Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Loans held for sale | ||||
Total LHFS | $ 4,241 | $ 2,914 | ||
Loans held for investment | ||||
Loans held for investment | 5,139,952 | 5,170,042 | ||
Less allowance for credit losses | (53,959) | (54,032) | $ (52,450) | $ (38,917) |
Net loans held for investment | 5,085,993 | 5,116,010 | ||
PPP Loans | 320 | 386 | ||
Mortgage loans held for sale | ||||
Loans held for sale | ||||
Total LHFS | 4,241 | 2,914 | ||
Commercial, financial and agriculture | ||||
Loans held for investment | ||||
Loans held for investment | 772,124 | 800,324 | ||
Less allowance for credit losses | (8,455) | (8,844) | (9,443) | (6,349) |
Commercial real estate | ||||
Loans held for investment | ||||
Loans held for investment | 3,059,784 | 3,059,155 | ||
Less allowance for credit losses | (29,557) | (29,125) | (28,052) | (20,389) |
Consumer real estate | ||||
Loans held for investment | ||||
Loans held for investment | 1,254,397 | 1,252,795 | ||
Less allowance for credit losses | (15,280) | (15,260) | (14,201) | (11,599) |
Consumer installment | ||||
Loans held for investment | ||||
Loans held for investment | 53,647 | 57,768 | ||
Less allowance for credit losses | $ (667) | $ (803) | $ (754) | $ (580) |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Sep. 30, 2023 | Jan. 31, 2023 | 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 | $ 27,400 | $ 24,700 | ||||||
Amortized cost, PCD loans | 54,700 | 57,800 | ||||||
PCD loans, estimated ACL | 3,200 | 3,700 | ||||||
Total loans, other financial institutions | 311,500 | 304,000 | ||||||
Loans sold to other financial institutions | 174,900 | 165,900 | ||||||
Loans purchased | $ 136,500 | 138,100 | ||||||
LGD Rate | 15% | |||||||
Threshold default percentage | 1% | |||||||
Provision for credit losses, LHFI | $ 0 | $ 10,500 | ||||||
Loans held for investment | $ 5,139,952 | 5,170,042 | ||||||
Initial allowance on PCD loans | $ 3,176 | |||||||
Heritage Southeast Bank | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Business combination, acquired receivable, fair value | $ 1,091,000 | |||||||
Discount (premium) on loans acquired | 33,700 | |||||||
Gross contractual amounts receivable | 1,125,000 | |||||||
Contractual cash flows not expected to be collected | 16,500 | |||||||
Provision for credit losses, LHFI | 10,700 | |||||||
Business combination, loans | $ 1,155,712 | $ 1,159,000 | $ 1,155,712 | |||||
Initial allowance on PCD loans | $ 3,200 | |||||||
Beach Bancorp | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Business combination, acquired receivable, fair value | $ 460,000 | |||||||
Discount (premium) on loans acquired | 8,800 | |||||||
Gross contractual amounts receivable | 468,800 | |||||||
Contractual cash flows not expected to be collected | 6,400 | |||||||
Business combination, loans | $ 485,171 | $ 482,903 |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - 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, 2024 | Dec. 31, 2023 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | $ 9,511 | $ 7,913 |
Past Due 90 Days or More and Still Accruing | 687 | 1,163 |
Nonaccrual | 6,668 | 5,980 |
PCD | 4,293 | 4,710 |
Total Past Due, Nonaccrual and PCD | 21,159 | 19,766 |
LHFI | 5,139,952 | 5,170,042 |
Nonaccrual and PCD with No ACL | 1,568 | 1,555 |
PPP Loans | 320 | 386 |
Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 1,768 | 2,043 |
Past Due 90 Days or More and Still Accruing | 24 | 313 |
Nonaccrual | 991 | 353 |
PCD | 691 | 965 |
Total Past Due, Nonaccrual and PCD | 3,474 | 3,674 |
LHFI | 772,124 | 800,324 |
Nonaccrual and PCD with No ACL | 468 | 465 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 2,714 | 1,698 |
Past Due 90 Days or More and Still Accruing | 455 | 630 |
Nonaccrual | 3,650 | 3,790 |
PCD | 660 | 647 |
Total Past Due, Nonaccrual and PCD | 7,479 | 6,765 |
LHFI | 3,059,784 | 3,059,155 |
Nonaccrual and PCD with No ACL | 300 | 410 |
Consumer real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 4,631 | 3,992 |
Past Due 90 Days or More and Still Accruing | 137 | 220 |
Nonaccrual | 1,987 | 1,806 |
PCD | 2,942 | 3,098 |
Total Past Due, Nonaccrual and PCD | 9,697 | 9,116 |
LHFI | 1,254,397 | 1,252,795 |
Nonaccrual and PCD with No ACL | 789 | 680 |
Consumer installment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 398 | 180 |
Past Due 90 Days or More and Still Accruing | 71 | 0 |
Nonaccrual | 40 | 31 |
PCD | 0 | 0 |
Total Past Due, Nonaccrual and PCD | 509 | 211 |
LHFI | 53,647 | 57,768 |
Nonaccrual and PCD with No ACL | $ 11 | $ 0 |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES - 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 AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Amortized Cost Basis of Loans that were Modified to Borrowers by Class of Financing Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Percentage of Total Loans Held for Investment | 0.05% | 0.01% |
Term Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Term Extension | $ 578 | $ 0 |
Combination Payment Deferral and Payment Modification | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Term Extension | $ 0 | $ 301 |
Commercial real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Percentage of Total Loans Held for Investment | 0.05% | 0.01% |
Commercial real estate | Term Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Term Extension | $ 578 | $ 0 |
Commercial real estate | Combination Payment Deferral and Payment Modification | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Term Extension | $ 0 | $ 301 |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | $ 2,708 | $ 2,902 |
Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 1,238 | 1,414 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 599 | 710 |
Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 789 | 778 |
Consumer installment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 82 | |
Real Property | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 2,193 | 1,488 |
Real Property | Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 805 | 0 |
Real Property | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 599 | 710 |
Real Property | Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 789 | 778 |
Real Property | Consumer installment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 0 | |
Equipment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 268 | 496 |
Equipment | Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 186 | 496 |
Equipment | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 0 | 0 |
Equipment | Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 0 | 0 |
Equipment | Consumer installment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 82 | |
Miscellaneous | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 247 | 918 |
Miscellaneous | Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 247 | 918 |
Miscellaneous | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 0 | 0 |
Miscellaneous | Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 0 | $ 0 |
Miscellaneous | Consumer installment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | $ 0 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES - 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 | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | $ 101,688 | $ 689,932 | |
Current period gross writeoffs, year one | 3 | 245 | |
Year two | 696,064 | 1,332,165 | |
Current period gross writeoffs, year two | 126 | 637 | |
Year three | 1,314,496 | 905,776 | |
Current period gross writeoffs, year three | 187 | 641 | |
Year four | 871,616 | 560,460 | |
Current period gross writeoffs, year four | 50 | 318 | |
Year five | 544,013 | 368,126 | |
Current period gross writeoffs, year five | 18 | 362 | |
More than five years | 1,172,512 | 859,287 | |
Current period gross writeoffs, prior | 336 | 768 | |
Revolving Loans | 439,563 | 454,296 | |
Current period gross writeoffs, revolving | 20 | 121 | |
Loans held for investment | 5,139,952 | 5,170,042 | |
Loans charged-off | 740 | $ 341 | 3,092 |
Commercial, financial and agriculture | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 15,825 | 102,714 | |
Current period gross writeoffs, year one | 0 | 14 | |
Year two | 97,540 | 150,750 | |
Current period gross writeoffs, year two | 20 | 51 | |
Year three | 141,004 | 113,608 | |
Current period gross writeoffs, year three | 114 | 225 | |
Year four | 107,764 | 47,639 | |
Current period gross writeoffs, year four | 25 | 139 | |
Year five | 44,224 | 37,412 | |
Current period gross writeoffs, year five | 0 | 206 | |
More than five years | 94,712 | 65,917 | |
Current period gross writeoffs, prior | 236 | 110 | |
Revolving Loans | 271,055 | 282,284 | |
Current period gross writeoffs, revolving | 0 | 0 | |
Loans held for investment | 772,124 | 800,324 | |
Loans charged-off | 395 | 3 | 745 |
Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 48,444 | 386,090 | |
Current period gross writeoffs, year one | 0 | 0 | |
Year two | 401,376 | 833,458 | |
Current period gross writeoffs, year two | 0 | 0 | |
Year three | 836,640 | 565,253 | |
Current period gross writeoffs, year three | 0 | 193 | |
Year four | 542,736 | 380,762 | |
Current period gross writeoffs, year four | 0 | 0 | |
Year five | 371,654 | 268,718 | |
Current period gross writeoffs, year five | 0 | 0 | |
More than five years | 853,540 | 618,477 | |
Current period gross writeoffs, prior | 0 | 57 | |
Revolving Loans | 5,394 | 6,397 | |
Current period gross writeoffs, revolving | 0 | 0 | |
Loans held for investment | 3,059,784 | 3,059,155 | |
Loans charged-off | 0 | 0 | 250 |
Consumer real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 32,803 | 176,646 | |
Current period gross writeoffs, year one | 0 | 5 | |
Year two | 176,862 | 335,541 | |
Current period gross writeoffs, year two | 0 | 19 | |
Year three | 326,180 | 219,582 | |
Current period gross writeoffs, year three | 0 | 0 | |
Year four | 214,991 | 129,098 | |
Current period gross writeoffs, year four | 0 | 0 | |
Year five | 125,608 | 60,772 | |
Current period gross writeoffs, year five | 0 | 0 | |
More than five years | 222,240 | 173,698 | |
Current period gross writeoffs, prior | 0 | 25 | |
Revolving Loans | 155,713 | 157,458 | |
Current period gross writeoffs, revolving | 0 | 0 | |
Loans held for investment | 1,254,397 | 1,252,795 | |
Loans charged-off | 0 | 0 | 49 |
Consumer installment | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 4,616 | 24,482 | |
Current period gross writeoffs, year one | 3 | 226 | |
Year two | 20,286 | 12,416 | |
Current period gross writeoffs, year two | 106 | 567 | |
Year three | 10,672 | 7,333 | |
Current period gross writeoffs, year three | 73 | 223 | |
Year four | 6,125 | 2,961 | |
Current period gross writeoffs, year four | 25 | 179 | |
Year five | 2,527 | 1,224 | |
Current period gross writeoffs, year five | 18 | 156 | |
More than five years | 2,020 | 1,195 | |
Current period gross writeoffs, prior | 100 | 576 | |
Revolving Loans | 7,401 | 8,157 | |
Current period gross writeoffs, revolving | 20 | 121 | |
Loans held for investment | 53,647 | 57,768 | |
Loans charged-off | 345 | $ 338 | 2,048 |
Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 101,613 | 688,843 | |
Year two | 693,887 | 1,322,389 | |
Year three | 1,303,113 | 898,616 | |
Year four | 859,688 | 554,856 | |
Year five | 535,499 | 350,639 | |
More than five years | 1,092,651 | 798,107 | |
Revolving Loans | 435,254 | 450,020 | |
Loans held for investment | 5,021,705 | 5,063,470 | |
Pass | Commercial, financial and agriculture | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 15,750 | 102,263 | |
Year two | 97,084 | 150,420 | |
Year three | 140,290 | 113,487 | |
Year four | 106,519 | 47,313 | |
Year five | 40,841 | 36,065 | |
More than five years | 91,445 | 64,020 | |
Revolving Loans | 270,636 | 281,646 | |
Loans held for investment | 762,565 | 795,214 | |
Pass | Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 48,444 | 385,954 | |
Year two | 400,705 | 825,505 | |
Year three | 827,718 | 558,742 | |
Year four | 532,658 | 377,085 | |
Year five | 368,103 | 253,746 | |
More than five years | 788,127 | 569,428 | |
Revolving Loans | 5,394 | 6,397 | |
Loans held for investment | 2,971,149 | 2,976,857 | |
Pass | Consumer real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 32,803 | 176,144 | |
Year two | 175,955 | 334,056 | |
Year three | 324,453 | 219,071 | |
Year four | 214,401 | 127,539 | |
Year five | 124,065 | 59,615 | |
More than five years | 211,149 | 163,464 | |
Revolving Loans | 151,830 | 153,821 | |
Loans held for investment | 1,234,656 | 1,233,710 | |
Pass | Consumer installment | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 4,616 | 24,482 | |
Year two | 20,143 | 12,408 | |
Year three | 10,652 | 7,316 | |
Year four | 6,110 | 2,919 | |
Year five | 2,490 | 1,213 | |
More than five years | 1,930 | 1,195 | |
Revolving Loans | 7,394 | 8,156 | |
Loans held for investment | 53,335 | 57,689 | |
Special mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 0 | 0 | |
Year two | 75 | 1,741 | |
Year three | 2,032 | 6,118 | |
Year four | 9,141 | 3,252 | |
Year five | 6,144 | 10,985 | |
More than five years | 38,784 | 25,897 | |
Revolving Loans | 707 | 422 | |
Loans held for investment | 56,883 | 48,415 | |
Special mention | Commercial, financial and agriculture | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 0 | 0 | |
Year two | 7 | 0 | |
Year three | 0 | 0 | |
Year four | 635 | 141 | |
Year five | 3,128 | 797 | |
More than five years | 1,085 | 3 | |
Revolving Loans | 10 | 10 | |
Loans held for investment | 4,865 | 951 | |
Special mention | Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 0 | 0 | |
Year two | 68 | 660 | |
Year three | 690 | 6,118 | |
Year four | 8,506 | 3,111 | |
Year five | 3,016 | 9,545 | |
More than five years | 33,898 | 22,648 | |
Revolving Loans | 0 | 0 | |
Loans held for investment | 46,178 | 42,082 | |
Special mention | Consumer real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 0 | 0 | |
Year two | 0 | 1,081 | |
Year three | 1,342 | 0 | |
Year four | 0 | 0 | |
Year five | 0 | 643 | |
More than five years | 3,801 | 3,246 | |
Revolving Loans | 697 | 412 | |
Loans held for investment | 5,840 | 5,382 | |
Special mention | 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 | |
Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 75 | 1,089 | |
Year two | 2,102 | 8,035 | |
Year three | 9,351 | 1,042 | |
Year four | 2,787 | 2,352 | |
Year five | 2,370 | 6,502 | |
More than five years | 41,077 | 35,283 | |
Revolving Loans | 3,602 | 3,854 | |
Loans held for investment | 61,364 | 58,157 | |
Substandard | Commercial, financial and agriculture | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 75 | 451 | |
Year two | 449 | 330 | |
Year three | 714 | 121 | |
Year four | 610 | 185 | |
Year five | 255 | 550 | |
More than five years | 2,182 | 1,894 | |
Revolving Loans | 409 | 628 | |
Loans held for investment | 4,694 | 4,159 | |
Substandard | Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 0 | 136 | |
Year two | 603 | 7,293 | |
Year three | 8,232 | 393 | |
Year four | 1,572 | 566 | |
Year five | 535 | 5,427 | |
More than five years | 31,515 | 26,401 | |
Revolving Loans | 0 | 0 | |
Loans held for investment | 42,457 | 40,216 | |
Substandard | Consumer real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 0 | 502 | |
Year two | 907 | 404 | |
Year three | 385 | 511 | |
Year four | 590 | 1,559 | |
Year five | 1,543 | 514 | |
More than five years | 7,290 | 6,988 | |
Revolving Loans | 3,186 | 3,225 | |
Loans held for investment | 13,901 | 13,703 | |
Substandard | Consumer installment | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Year one | 0 | 0 | |
Year two | 143 | 8 | |
Year three | 20 | 17 | |
Year four | 15 | 42 | |
Year five | 37 | 11 | |
More than five years | 90 | 0 | |
Revolving Loans | 7 | 1 | |
Loans held for investment | 312 | 79 | |
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 AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Activity in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Allowance for loan losses: | |||
Beginning balance | $ 54,032 | $ 38,917 | $ 38,917 |
Initial allowance on PCD loans | 3,176 | 3,176 | |
Provision for credit losses | 0 | 10,500 | |
Loans charged-off | (740) | (341) | (3,092) |
Recoveries | 667 | 198 | |
Total ending allowance balance | 53,959 | 52,450 | 54,032 |
Heritage Southeast Bank | |||
Allowance for loan losses: | |||
Provision for credit losses | 10,700 | ||
Commercial, financial and agriculture | |||
Allowance for loan losses: | |||
Beginning balance | 8,844 | 6,349 | 6,349 |
Initial allowance on PCD loans | 727 | 727 | |
Provision for credit losses | 0 | 2,327 | |
Loans charged-off | (395) | (3) | (745) |
Recoveries | 6 | 43 | |
Total ending allowance balance | 8,455 | 9,443 | 8,844 |
Commercial real estate | |||
Allowance for loan losses: | |||
Beginning balance | 29,125 | 20,389 | 20,389 |
Initial allowance on PCD loans | 2,260 | 2,260 | |
Provision for credit losses | 0 | 5,388 | |
Loans charged-off | 0 | 0 | (250) |
Recoveries | 432 | 15 | |
Total ending allowance balance | 29,557 | 28,052 | 29,125 |
Consumer real estate | |||
Allowance for loan losses: | |||
Beginning balance | 15,260 | 11,599 | 11,599 |
Initial allowance on PCD loans | 182 | 182 | |
Provision for credit losses | 0 | 2,402 | |
Loans charged-off | 0 | 0 | (49) |
Recoveries | 20 | 18 | |
Total ending allowance balance | 15,280 | 14,201 | 15,260 |
Consumer installment | |||
Allowance for loan losses: | |||
Beginning balance | 803 | 580 | 580 |
Initial allowance on PCD loans | 7 | 7 | |
Provision for credit losses | 0 | 383 | |
Loans charged-off | (345) | (338) | (2,048) |
Recoveries | 209 | 122 | |
Total ending allowance balance | $ 667 | $ 754 | $ 803 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loans and Allowance for Loan Losses, Broken Down by Portfolio Segment (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | $ 5,139,952 | $ 5,170,042 | ||
Allowance for Credit Losses | 53,959 | 54,032 | $ 52,450 | $ 38,917 |
Commercial, financial and agriculture | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 772,124 | 800,324 | ||
Allowance for Credit Losses | 8,455 | 8,844 | 9,443 | 6,349 |
Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 3,059,784 | 3,059,155 | ||
Allowance for Credit Losses | 29,557 | 29,125 | 28,052 | 20,389 |
Consumer real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 1,254,397 | 1,252,795 | ||
Allowance for Credit Losses | 15,280 | 15,260 | 14,201 | 11,599 |
Consumer installment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 53,647 | 57,768 | ||
Allowance for Credit Losses | 667 | 803 | $ 754 | $ 580 |
Individually evaluated | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 2,708 | 2,902 | ||
Allowance for Credit Losses | 423 | 408 | ||
Individually evaluated | Commercial, financial and agriculture | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 1,238 | 1,414 | ||
Allowance for Credit Losses | 340 | 408 | ||
Individually evaluated | Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 599 | 710 | ||
Allowance for Credit Losses | 12 | 0 | ||
Individually evaluated | Consumer real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 789 | 778 | ||
Allowance for Credit Losses | 0 | 0 | ||
Individually evaluated | Consumer installment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 82 | 0 | ||
Allowance for Credit Losses | 71 | 0 | ||
Collectively evaluated | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 5,137,244 | 5,167,140 | ||
Allowance for Credit Losses | 53,536 | 53,624 | ||
Collectively evaluated | Commercial, financial and agriculture | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 770,886 | 798,910 | ||
Allowance for Credit Losses | 8,115 | 8,436 | ||
Collectively evaluated | Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 3,059,185 | 3,058,445 | ||
Allowance for Credit Losses | 29,545 | 29,125 | ||
Collectively evaluated | Consumer real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 1,253,608 | 1,252,017 | ||
Allowance for Credit Losses | 15,280 | 15,260 | ||
Collectively evaluated | Consumer installment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
LHFI | 53,565 | 57,768 | ||
Allowance for Credit Losses | $ 596 | $ 803 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Derivative Instruments (Details) - Interest rate swap contracts $ in Thousands | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Derivative [Line Items] | ||
Notional amount | $ 475,321 | $ 493,290 |
Weighted average pay rate | 0.053 | 0.052 |
Weighted average receive rate | 0.053 | 0.052 |
Weighted average maturity in years | 5 years 5 months 8 days | 5 years 4 months 20 days |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Derivative Liabilities/Assets at Fair Value (Details) - Interest rate swap contracts - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Derivative [Line Items] | ||
Derivative Assets | $ 11,987 | $ 12,170 |
Derivative Liabilities | $ 11,988 | $ 12,175 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - Interest rate swap contracts - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Derivative [Line Items] | |||
Collateralized agreements | $ 500 | $ 500 | |
Swap spread income, net | $ 162 | $ 169 |