Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 02, 2021 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity Registrant Name | FIRST BANCSHARES INC /MS/ | |
Entity Central Index Key | 0000947559 | |
Trading Symbol | FBMS | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 000-22507 | |
Entity Address, Address Line One | 6480 U.S. Highway 98 West, Suite A | |
Entity Address, City or Town | Hattiesburg | |
Entity Address, Country | MS | |
Entity Address, Postal Zip Code | 39402 | |
Entity Incorporation, State or Country Code | MS | |
Entity Tax Identification Number | 64-0862173 | |
City Area Code | 601 | |
Local Phone Number | 268-8998 | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 21,020,397 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | ||
ASSETS | ||||
Cash and due from banks | $ 132,299 | $ 137,684 | ||
Interest-bearing deposits with banks | 630,187 | 424,870 | ||
Total cash and cash equivalents | 762,486 | 562,554 | ||
Debt securities available-for-sale, at fair value | 1,280,761 | 1,022,182 | ||
Other securities | 22,225 | 27,475 | ||
Total securities | 1,302,986 | 1,049,657 | ||
Loans held for sale | 6,000 | 21,432 | ||
Loans held for investment | 3,036,732 | 3,123,678 | ||
Allowance for credit losses | [1] | (32,457) | (35,820) | |
Net loans held for investment | 3,004,275 | 3,087,858 | ||
Interest receivable | 24,026 | 26,344 | ||
Premises and equipment | 112,968 | 114,823 | ||
Operating lease right-of-use assets | 5,164 | 5,969 | ||
Finance lease right-of-use assets | 2,535 | 2,658 | ||
Cash surrender value of bank-owned life insurance | 86,926 | 73,732 | ||
Goodwill | 156,944 | 156,944 | ||
Other real estate owned | 3,529 | 5,802 | ||
Other assets | 41,894 | 44,987 | ||
Total assets | 5,509,733 | 5,152,760 | ||
Deposits: | ||||
Noninterest-bearing | 682,014 | 571,079 | ||
Interest-bearing | 3,991,898 | 3,644,201 | ||
Total deposits | 4,673,912 | 4,215,280 | ||
Interest payable | 1,827 | 2,134 | ||
Borrowed funds | 114,647 | |||
Subordinated debentures | 144,611 | 144,592 | ||
Operating lease liabilities | 5,247 | 6,031 | ||
Finance lease liabilities | 2,187 | 2,281 | ||
Allowance for credit losses on off-balance sheet credit exposures | 718 | [1] | 0 | |
Other liabilities | 21,179 | 22,980 | ||
Total liabilities | 4,849,681 | 4,507,945 | ||
Shareholders' equity: | ||||
Common stock, par value $1 per share, 40,000,000 shares authorized;21,670,330 shares issued at June 30, 2021, and 21,598,993 shares issued at December 31, 2020, respectively | 21,670 | 21,599 | ||
Additional paid-in capital | 457,396 | 456,919 | ||
Retained earnings | 180,820 | 154,241 | ||
Accumulated other comprehensive income | 19,097 | 25,816 | ||
Treasury stock, at cost, 649,607 shares at June 30, 2021 and 483,984 shares at December 31, 2020 | (18,931) | (13,760) | ||
Total shareholders' equity | 660,052 | 644,815 | ||
Total liabilities and shareholders' equity | $ 5,509,733 | $ 5,152,760 | ||
[1] | – Beginning January 1, 2021, allowance for credit losses is based on current expected credit loss methodology. Prior to January 1, 2021, allowance for loan loss was based on incurred loss methodology |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 21,670,330 | 21,598,993 |
Treasury stock, shares | 649,607 | 483,984 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Interest and dividend income: | ||||
Interest and fees on loans | $ 37,275 | $ 40,593 | $ 76,888 | $ 76,598 |
Interest and dividends on securities: | ||||
Taxable interest and dividends | 4,017 | 3,439 | 7,608 | 7,383 |
Tax exempt interest | 1,908 | 1,748 | 3,843 | 3,108 |
Interest on federal funds sold and interest bearing deposits in other banks | 38 | 19 | 86 | 308 |
Total interest income | 43,238 | 45,799 | 88,425 | 87,397 |
Interest expense: | ||||
Interest on deposits | 3,315 | 5,219 | 7,164 | 10,632 |
Interest on borrowed funds | 1,873 | 1,400 | 3,982 | 3,520 |
Total interest expense | 5,188 | 6,619 | 11,146 | 14,152 |
Net interest income | 38,050 | 39,180 | 77,279 | 73,245 |
Provision for credit losses | 0 | 7,606 | 0 | 14,708 |
Net interest income after provision for credit losses | 38,050 | 31,574 | 77,279 | 58,537 |
Non-interest income: | ||||
Gain on sale of securities | 77 | 73 | 97 | 246 |
Gain on acquisition | 7,023 | 0 | 7,023 | |
Gain on sale of premises and equipment | 16 | 469 | 12 | 461 |
Other | 6,973 | 6,518 | 14,670 | 10,913 |
Total non-interest income | 8,822 | 15,680 | 18,295 | 22,154 |
Non-interest expense: | ||||
Salaries and employee benefits | 16,036 | 15,866 | 32,091 | 29,094 |
Occupancy and equipment | 3,813 | 3,200 | 7,692 | 6,118 |
Acquisition and integration charges | 2,295 | 3,036 | ||
Other | 7,603 | 6,709 | 14,934 | 13,260 |
Total non-interest expense | 27,452 | 28,070 | 54,717 | 51,508 |
Income before income taxes | 19,420 | 19,184 | 40,857 | 29,183 |
Income tax expense | 3,820 | 2,241 | 8,613 | 3,929 |
Net income | $ 15,600 | $ 16,943 | $ 32,244 | $ 25,254 |
Earnings per share: | ||||
Basic earnings per share | $ 0.74 | $ 0.79 | $ 1.53 | $ 1.26 |
Diluted earnings per share | $ 0.74 | $ 0.79 | $ 1.52 | $ 1.25 |
Service charges on deposit accounts | ||||
Non-interest income: | ||||
Total non-interest income | $ 1,756 | $ 1,597 | $ 3,516 | $ 3,511 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 15,600 | $ 16,943 | $ 32,244 | $ 25,254 |
Unrealized gains/losses on securities: | ||||
Unrealized holding gains(losses)arising during the period on available-for-sale securities | 3,955 | 10,987 | (8,897) | 19,615 |
Reclassification adjustment for gains included in net income | (77) | (73) | (97) | (246) |
Unrealized holding gains (losses) arising during the period on available-for-sale securities | 3,878 | 10,914 | (8,994) | 19,369 |
Income tax benefit (expense) | (982) | (2,195) | 2,275 | (4,908) |
Other comprehensive income (loss) | 2,896 | 8,719 | (6,719) | 14,461 |
Comprehensive income | $ 18,496 | $ 25,662 | $ 25,525 | $ 39,715 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Total |
Beginning Balance at Dec. 31, 2019 | $ 18,997 | $ 409,805 | $ 110,460 | $ 10,089 | $ (5,693) | $ 543,658 |
Beginning Balance (in shares) at Dec. 31, 2019 | 18,996,948 | (194,682) | ||||
Net income | 8,311 | 8,311 | ||||
Other comprehensive income/loss | 5,742 | 5,742 | ||||
Dividends on common stock | (1,885) | (1,885) | ||||
Issuance of restricted stock grants | $ 61 | (61) | ||||
Issuance of restricted stock grants (in shares) | 60,680 | |||||
Compensation expense | 478 | 478 | ||||
Repurchase of restricted stock for payment of taxes | $ (11) | (367) | (378) | |||
Repurchase of restricted stock for payment of taxes (in shares) | (10,991) | |||||
Ending Balance at Mar. 31, 2020 | $ 19,047 | 409,855 | 116,886 | 15,831 | $ (5,693) | 555,926 |
Ending Balance (in shares) at Mar. 31, 2020 | 19,046,637 | (194,682) | ||||
Beginning Balance at Dec. 31, 2019 | $ 18,997 | 409,805 | 110,460 | 10,089 | $ (5,693) | 543,658 |
Beginning Balance (in shares) at Dec. 31, 2019 | 18,996,948 | (194,682) | ||||
Net income | 25,254 | |||||
Ending Balance at Jun. 30, 2020 | $ 21,590 | 455,650 | 131,698 | 24,550 | $ (5,693) | 627,795 |
Ending Balance (in shares) at Jun. 30, 2020 | 21,589,940 | (194,682) | ||||
Beginning Balance at Mar. 31, 2020 | $ 19,047 | 409,855 | 116,886 | 15,831 | $ (5,693) | 555,926 |
Beginning Balance (in shares) at Mar. 31, 2020 | 19,046,637 | (194,682) | ||||
Net income | 16,943 | 16,943 | ||||
Other comprehensive income/loss | 8,719 | 8,719 | ||||
Dividends on common stock | (2,131) | (2,131) | ||||
Issuance of common shares for SWG acquisition | $ 2,547 | 45,311 | 47,858 | |||
Issuance of common shares for SWG acquisition (in shares) | 2,546,967 | |||||
Issuance of restricted stock grants | $ 4 | (4) | ||||
Issuance of restricted stock grants (in shares) | 3,750 | |||||
Restricted stock grants forfeited | $ (5) | 5 | ||||
Restricted stock grants forfeited (in shares) | (4,762) | |||||
Compensation expense | 539 | 539 | ||||
Repurchase of restricted stock for payment of taxes | $ (3) | (56) | (59) | |||
Repurchase of restricted stock for payment of taxes (in shares) | (2,652) | |||||
Ending Balance at Jun. 30, 2020 | $ 21,590 | 455,650 | 131,698 | 24,550 | $ (5,693) | 627,795 |
Ending Balance (in shares) at Jun. 30, 2020 | 21,589,940 | (194,682) | ||||
Beginning Balance at Dec. 31, 2020 | $ 21,599 | 456,919 | 154,241 | 25,816 | $ (13,760) | 644,815 |
Beginning Balance (in shares) at Dec. 31, 2020 | 21,598,993 | (483,984) | ||||
Net income | 16,644 | 16,644 | ||||
Common stock repurchased | $ (5,171) | (5,171) | ||||
Common stock repurchased (in shares) | (165,623) | |||||
Other comprehensive income/loss | (9,615) | (9,615) | ||||
Dividends on common stock | (2,723) | (2,723) | ||||
Issuance of restricted stock grants | $ 85 | (85) | ||||
Issuance of restricted stock grants (in shares) | 84,578 | |||||
Restricted stock grants forfeited | $ (1) | 1 | ||||
Restricted stock grants forfeited (in shares) | (500) | |||||
Compensation expense | 440 | 440 | ||||
Repurchase of restricted stock for payment of taxes | $ (15) | (426) | (441) | |||
Repurchase of restricted stock for payment of taxes (in shares) | (14,720) | |||||
Ending Balance at Mar. 31, 2021 | $ 21,668 | 456,849 | 168,162 | 16,201 | $ (18,931) | 643,949 |
Ending Balance (in shares) at Mar. 31, 2021 | 21,668,351 | (649,607) | ||||
Beginning Balance at Dec. 31, 2020 | $ 21,599 | 456,919 | 154,241 | 25,816 | $ (13,760) | 644,815 |
Beginning Balance (in shares) at Dec. 31, 2020 | 21,598,993 | (483,984) | ||||
Net income | 32,244 | |||||
Ending Balance at Jun. 30, 2021 | $ 21,670 | 457,396 | 180,820 | 19,097 | $ (18,931) | 660,052 |
Ending Balance (in shares) at Jun. 30, 2021 | 21,670,330 | (649,607) | ||||
Beginning Balance at Mar. 31, 2021 | $ 21,668 | 456,849 | 168,162 | 16,201 | $ (18,931) | 643,949 |
Beginning Balance (in shares) at Mar. 31, 2021 | 21,668,351 | (649,607) | ||||
Net income | 15,600 | 15,600 | ||||
Other comprehensive income/loss | 2,896 | 2,896 | ||||
Dividends on common stock | (2,942) | (2,942) | ||||
Issuance of restricted stock grants | $ 3 | (3) | ||||
Issuance of restricted stock grants (in shares) | 3,000 | |||||
Restricted stock grants forfeited | $ (1) | 1 | ||||
Restricted stock grants forfeited (in shares) | (1,021) | |||||
Compensation expense | 549 | 549 | ||||
Ending Balance at Jun. 30, 2021 | $ 21,670 | $ 457,396 | $ 180,820 | $ 19,097 | $ (18,931) | $ 660,052 |
Ending Balance (in shares) at Jun. 30, 2021 | 21,670,330 | (649,607) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | ||||
Dividends on common stock, per Share | $ 0.14 | $ 0.13 | $ 0.10 | $ 0.10 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 32,244 | $ 25,254 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and accretion | 6,685 | 3,924 |
Provision for credit losses | 0 | 14,708 |
Loss on sale or writedown of ORE | 416 | 835 |
Securities gain | (97) | (246) |
Acquisition gain | 0 | (7,023) |
Gain on disposal of premises and equipment | (12) | (461) |
Restricted stock expense | 989 | 1,017 |
Increase in cash value of life insurance | (950) | (749) |
Federal Home Loan Bank stock dividends | (26) | (101) |
Residential loans originated and held for sale | (134,389) | (137,632) |
Proceeds from sale of residential loans held for sale | 149,821 | 130,024 |
Changes in: | ||
Interest receivable | 2,318 | (7,623) |
Interest payable | (307) | (313) |
Operating lease liability | (784) | (810) |
Other, net | 2,097 | 6,378 |
Net cash provided by operating activities | 58,005 | 27,182 |
Cash flows from investing activities: | ||
Maturities, calls and paydowns of available-for-sale securities | 109,261 | 97,688 |
Proceeds from sales of securities available-for-sale securities | 0 | 579 |
Purchases of available-for-sale securities | (379,796) | (154,432) |
Redemptions of other securities, net | 5,276 | 1,735 |
Net decrease (increase) in loans | 84,025 | (176,865) |
Net changes in premises and equipment | (787) | (3,972) |
Proceeds from sale of other real estate owned | 3,431 | 1,840 |
Proceeds from the sale of land | 0 | 1,416 |
Purchase of bank-owned life insurance | (12,244) | (5,800) |
Cash received in excess of cash paid for acquisition | 0 | 29,245 |
Net cash used in investing activities | (190,834) | (208,566) |
Cash flows from financing activities: | ||
Increase in deposits | 458,753 | 663,948 |
Net decrease in borrowed funds | (114,647) | (107,814) |
Principal payments on finance lease liabilities | (94) | (95) |
Dividends paid on common stock | (5,580) | (3,957) |
Cash paid to repurchase common stock | (5,171) | 0 |
Payment of subordinated debt issuance costs | (59) | 0 |
Repurchase of restricted stock for payment of taxes | (441) | (437) |
Net cash provided by financing activities | 332,761 | 551,645 |
Net change in cash and cash equivalents | 199,932 | 370,261 |
Beginning cash and cash equivalents | 562,554 | 168,864 |
Ending cash and cash equivalents | 762,486 | 539,125 |
Supplemental disclosures: | ||
Loans transferred to other real estate | 1,576 | 553 |
Issuance of restricted stock grants | 88 | 65 |
Dividends on restricted stock grants | 85 | 59 |
Lease liabilities arising from obtaining right-of-use assets | 14 | 2,669 |
SWG | ||
Supplemental disclosures: | ||
Stock issued in connection with acquisition | $ 0 | $ 47,858 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2021 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | NOTE 1 – 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 six months ended June 30, 2021, are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. 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, 2020. |
SUMMARY OF ORGANIZATION
SUMMARY OF ORGANIZATION | 6 Months Ended |
Jun. 30, 2021 | |
SUMMARY OF ORGANIZATION | |
SUMMARY OF ORGANIZATION | NOTE 2 – 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, A National Banking Association (the “Bank” or “The First”). At June 30, 2021, the Company had approximately $5.510 billion in assets, $3.004 billion in net loans held for investment (“LHFI”), $4.674 billion in deposits, and $660.1 million in shareholders’ equity. For the six months ended June 30, 2021, the Company reported net income of $32.2 million. On February 25, 2021, the Company paid a cash dividend in the amount of $0.13 per share to shareholders of record as of the close of business on February 10, 2021. On May 21, 2021, the Company paid a cash dividend in the amount of $0.14 per share to shareholders of record as of the close of business on May 10, 2021. On July 15, 2021, the Company announced that its Board of Directors declared a cash dividend of $0.15 per share to be paid on its common stock on August 25, 2021 to shareholders of record as of the close of business on August 10, 2021. |
ACCOUNTING STANDARDS
ACCOUNTING STANDARDS | 6 Months Ended |
Jun. 30, 2021 | |
ACCOUNTING STANDARDS | |
ACCOUNTING STANDARDS | NOTE 3 – ACCOUNTING STANDARDS Effect of Recently Adopted Accounting Standards Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (“ ) ASC 326 also applies to off-balance sheet credit (“OBSC”) exposures such as unfunded loan commitments, letters of credit and other financial guarantees that are not unconditionally cancellable by the Company. The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. 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. Expected credit losses related to OBSC exposures are presented as a liability. The allowance for loan credit losses (“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 recoveries amounts may not exceed the aggregate of amounts previously charged-off. The ACL is measured on a collective basis when similar risk characteristics exist. Generally, collectively assessed loans are grouped by call code (segments). Segmenting loans by call code will group loans that contain similar types of collateral, purposes, and are usually structured with similar terms making each loan’s risk profile very similar to the rest in that segment. Each of these segments then flows up into one of the four bands (bands), Commercial, Financial, and Agriculture, Commercial Real Estate, Consumer Real Estate, and Consumer Installment. In accordance with the guidance in ASC 326, the Company redefined its LHFI portfolio segments and related loan classes based on the level at which risk is monitored within the ACL methodology. Construction loans for 1-4 family residential properties with a call code 1A1, and other construction, all land development and other land loans with a call code 1A2 were previously separated between the Commercial Real Estate or Consumer Real Estate bands based on loan type code. Under our ASC 326 methodology 1A1 loans are all defined as part of the Consumer Real Estate band and 1A2 loans are all defined as part of the Commercial Real Estate Band. The probability of default (“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 loss given default (“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 LDG rate, 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 discounted cash flow (“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 Company has purchased loans, some of which have experienced more than insignificant credit deterioration since origination. These purchased credit deteriorated (“PCD”) loans are recorded at the amount paid. It is the Company’s policy that a loan meets this definition if it is adversely risk rated as Non-Pass (Special Mention, Substandard, Doubtful or Loss) including non-accrual loans, as well as loans identified as TDR’s. An allowance for credit losses is determined using the same methodology as other loans held for investment. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through provision expense. Upon adoption of ASC 326, the Company elected to maintain segments of loans that were previously accounted for under ASC 310-30 Accounting for Purchased Loans with Deteriorated Credit Quality The Company adopted ASC 326 using the prospective transition approach for PCD assets that were previously classified as purchased credit impaired (“PCI”) and accounted for under ASC 310-30. In accordance with the standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. Upon adoption of ASC 326, the Company increased the ACL by $1.1 million and adjusted the amortized cost basis of the PCD assets. The remaining noncredit discount of approximately $685 ASC 326 requires that a loan be evaluated for losses individually and reserved for separately, if the loan does not share similar risk characteristics to any other loan segments. The Company’s process for determining which loans require specific evaluation follows the standard and is two-fold. All non-performing loans, including nonaccrual loans, loans considered to be TDRs or PCDs, are evaluated to determine if they meet the definition of collateral dependent under the new standard. These are loans where no more payments are expected from the borrower, and foreclosure or some other collection action is probable. Secondly, all non-performing loans that are not considered to be collateral dependent, but are 90 days or greater past due and/or have a balance of $500 thousand or greater, will be individually reviewed to determine if the loan displays similar risk characteristic to substandard loans in the related segment. TDRs are loans for which the contractual terms on the loan have been modified and both of the following conditions exist: (1) the borrower is experiencing financial difficulty and (2) the restructuring constitutes a concession. Concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. The Company assesses all loan modifications to determine whether they constitute a TDR. The allowance for OBSC exposures was determined using the same methodology that is applied to LHFI. Utilization rates are determined based on historical usage. The Company adopted ASC 326 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2021. As of December 31, 2020, the Company did not have any other-than-temporarily impaired investment securities. Therefore, upon adoption of ASC 326, the Company determined that an allowance for credit losses on available-for-sale securities was not deemed material. Securities available-for-sale are reported at fair value with unrealized holding gains and losses reported as a separate component of stockholders’ equity and other comprehensive income (loss), net of taxes. Securities that are held as available-for-sale are used as a part of our asset/liability management strategy. Securities that may be sold in response to interest rate changes, changes in prepayment risk, the need to increase regulatory capital, and other similar factors are classified as available-for-sale. The Company evaluates all securities quarterly to determine if any securities in a loss position require a provision for credit losses in accordance with ASC 326, Measurement of Credit Losses on Financial Instruments Accrued interest receivable on available-for-sale debt securities totaled $5.7 million at December 31, 2020 and is excluded from the estimate of credit losses. The Company made the following policy elections related to the adoption of the guidance in ASC 326: ● Accrued interest will be written off against interest income when the related financial asset is charged off. Therefore, accrued interest will be excluded from the amortized cost basis for purposes of calculating the allowance for credit losses. Accrued interest receivable is presented with other assets in a separate line item in the consolidated balance sheet. ● The fair value of collateral practical expedient has been elected on certain loans, in determining the allowance for credit losses, for which the repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty. The adoption of ASC 326 increased the allowance for credit losses on loans by approximately $397 thousand and OBSC exposures by approximately $718 thousand at January 1, 2021, as shown below. The increase in the allowance for credit losses on loans includes the $1.1 million increase for PCD loans as discussed above, less a decrease in ACL for certain pooled loans: ($ in thousands) January 1, December 31, 2021 2020 As Reported Pre-ASC 326 Transition Under Assets: Adoption Adjustment ASC 326 Loans Commercial, financial, and agriculture $ 6,214 $ (1,153) $ 5,061 Commercial real estate 24,319 (4,032) 20,287 Consumer real estate 4,736 5,629 10,365 Consumer installment 551 (47) 504 Allowance for credit losses on loans $ 35,820 $ 397 $ 36,217 Liabilities: Allowance for credit losses on OBSC exposures — 718 718 Total allowance for credit losses $ 35,820 $ 1,115 $ 36,935 The transition had no net impact to retained earnings because the allowance for OBSC exposures was offset by decrease in the allowance for certain pooled loans. New Accounting Standards That Have Not Yet Been Adopted In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (ASC 848): “Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 6 Months Ended |
Jun. 30, 2021 | |
BUSINESS COMBINATIONS | |
BUSINESS COMBINATIONS | NOTE 4 – BUSINESS COMBINATIONS Acquisitions Southwest Georgia Financial Corporation On April 3, 2020, the Company completed its acquisition of Southwest Georgia Financial Corporation (“SWG”), and immediately thereafter merged its wholly-owned subsidiary, Southwest Georgia Bank with and into The First. The Company paid a total consideration of $47.9 million to the SWG shareholders as consideration in the merger, which included 2,546,967 shares of Company common stock and approximately $2 thousand in cash. As a result of the acquisition, the Company was able to increase its loan and deposit base and reduce costs through economies of scale. The merger strengthened the Company’s market share and brought forth additional opportunities by adding a new market area in the Company’s footprint. In connection with the acquisition, the Company recorded a $7.8 million bargain purchase gain and $4.6 million core deposit intangible. The bargain purchase gain was generated as a result of the estimated fair value of net assets acquired exceeding the merger consideration, based on provisional fair values, which is reflected as an adjustment to retained earnings. The bargain purchase gain is considered non-taxable for income taxes purposes. The core deposit intangible will be amortized to expense over 10 years. The Company acquired the $394.6 million loan portfolio at an estimated fair value discount of $2.3 million. The discount represents expected credit losses, adjusted for market interest rates and liquidity adjustments. Expenses associated with the SWG acquisition were $2.1 million and $2.3 million for the three and six months period ended June 30, 2020. These costs included system conversion and integrating operations charges and legal and consulting expenses, which have been expensed as incurred. The following table summarizes the finalized fair values of the assets acquired, liabilities assumed and the bargain purchase gain assumed in the SWG transaction, as of the acquisition date ($ in thousands): Measurement As Initially Period Reported Adjustments As Adjusted Identifiable assets: Cash and due from banks $ 29,247 — $ 29,247 Investments 89,737 — 89,737 Loans 392,292 — 392,292 Core deposit intangible 4,556 — 4,556 Personal and real property 18,558 — 18,558 Bank owned life insurance 6,963 — 6,963 Other assets 2,589 813 3,402 Total assets 543,942 813 544,755 Liabilities and equity: Deposits 476,099 — 476,099 Borrowed funds 9,500 — 9,500 Other liabilities 3,461 — 3,461 Total liabilities 489,060 — 489,060 Net assets acquired 54,882 813 55,695 Consideration paid 47,859 (1) 47,858 Bargain purchase gain $ (7,023) 812 $ (7,835) During the second quarter of 2021, the Company finalized its analysis and valuation adjustments have been made to other assets since initially reported. The outstanding principal balance and the carrying amount of these loans included in the consolidated balance sheet as of the date of acquisition are as follows ($ in thousands): April 3, 2020 Outstanding principal balance $ 394,621 Carrying amount 392,292 |
EARNINGS APPLICABLE TO COMMON S
EARNINGS APPLICABLE TO COMMON SHAREHOLDERS | 6 Months Ended |
Jun. 30, 2021 | |
EARNINGS APPLICABLE TO COMMON SHAREHOLDERS | |
EARNINGS APPLICABLE TO COMMON SHAREHOLDERS | NOTE 5 – 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): For the Three Months Ended For the Three Months Ended June 30, 2021 June 30, 2020 Net Income Shares Per Net Income Shares Per (Numerator) (Denominator) Share Data (Numerator) (Denominator) Share Data Basic earnings per share $ 15,600 21,018,772 $ 0.74 $ 16,943 21,341,913 $ 0.79 Effect of dilutive shares: Restricted stock grants 188,288 95,267 Diluted earnings per share $ 15,600 21,207,060 $ 0.74 $ 16,943 21,437,180 $ 0.79 For the Six Months Ended For the Six Months Ended June 30, 2021 June 30, 2020 Net Income Shares Per Net Income Shares Per (Numerator) (Denominator) Share Data (Numerator) (Denominator) Share Data Basic earnings per share $ 32,244 21,013,930 $ 1.53 $ 25,254 20,080,014 $ 1.26 Effect of dilutive shares: Restricted stock grants 182,147 125,453 Diluted earnings per share $ 32,244 21,196,077 $ 1.52 $ 25,254 20,205,467 $ 1.25 The Company granted 84,578 shares and 60,680 shares of restricted stock in the first quarter of 2021 and 2020, respectively. The Company granted 3,000 shares and 3,750 shares of restricted stock in the second quarter of 2021 and 2020, respectively. |
COMPREHENSIVE INCOME
COMPREHENSIVE INCOME | 6 Months Ended |
Jun. 30, 2021 | |
COMPREHENSIVE INCOME | |
COMPREHENSIVE INCOME | NOTE 6 – COMPREHENSIVE INCOME As presented in the Consolidated Statements of Comprehensive Income, 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 | 6 Months Ended |
Jun. 30, 2021 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | NOTE 7 – 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 June 30, 2021, and December 31, 2020 these financial instruments consisted of the following: ($ in thousands) June 30, 2021 December 31, 2020 Fixed Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 86,584 $ 33,205 $ 97,738 $ 16,203 Unused lines of credit 178,224 210,529 157,006 195,221 Standby letters of credit 2,848 9,903 4,182 11,486 Commitments to make loans are generally made for periods of 90 days or less. The fixed rate loan commitments have interest rates ranging from 0.5% to 18.0% and maturities ranging from approximately 1 year to 30 years. The Company adopted ASC 326, effective January 1, 2021, which requires the Company to estimate expected credit losses for OBSC exposures which are not unconditionally cancellable. 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 June 30, 2021. Changes in the ACL on OBSC exposures were at June 30, 2021 were as follows ($ in thousands): Three Months Ended Six Months Ended June 30, 2021 June 30, 2021 Balance at beginning of period $ 718 $ — Adoption of ASU 326 — 718 Credit loss expense related to OBSC exposures — — Balance at end of period $ 718 $ 718 The Company recorded no provision for credit losses on OBSC exposures for the three- and six-months period ended June 30, 2021. Adjustments to the ACL on OBSC exposures will be recorded to provision for credit losses. 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 | 6 Months Ended |
Jun. 30, 2021 | |
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 | NOTE 8 – 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 Level 2 Level 3 The following methods and assumptions were used by the Company to estimate its financial instrument fair values disclosed at June 30, 2021 and December 31, 2020: ● Investment Securities : The fair value for investment securities are determined by quoted market prices, if available (Level 1). For securities where, quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities that are not actively traded, valuing debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where, quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). ● Loans Held for Sale : Since loans designated by the Company as available-for-sale are typically sold shortly after making the decision to sell them, realized gains or losses are usually recognized within the same period and fluctuations in fair values are not relevant for reporting purposes. If available-for-sale loans are held on our books for an extended period of time, the fair value of those loans is determined using quoted secondary-market prices. ● 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 selling costs. 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 selling 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. Estimated fair values for the Company’s financial instruments are as follows, as of the dates noted: June 30, 2021 Fair Value Measurements ($ in thousands) Significant Other Significant Observable Unobservable Carrying Estimated Quoted Prices Inputs Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) Financial Instruments: Assets: Cash and cash equivalents $ 762,486 $ 762,486 $ 762,486 $ — $ — Securities available-for- sale: U.S. Treasury 36,957 36,957 36,957 — — Obligations of U.S. government agencies and sponsored entities 150,504 150,504 — 150,504 — Municipal securities 531,134 531,134 — 511,030 20,104 Mortgage- backed securities 530,749 530,749 — 530,749 — Corporate obligations 31,417 31,417 — 31,199 218 Loans, net 3,004,275 3,042,805 — — 3,042,805 Accrued interest receivable 24,026 24,026 — 6,107 17,919 Liabilities: Noninterest-bearing deposits $ 682,014 $ 682,014 $ — $ 682,014 $ — Interest-bearing deposits 3,991,898 3,973,535 — 3,973,535 — Subordinated debentures 144,611 152,968 — — 152,968 Accrued interest payable 1,827 1,827 — 1,827 — December 31, 2020 Fair Value Measurements ($ in thousands) Significant Other Significant Quoted Observable Unobservable Carrying Estimated Prices Inputs Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) Financial Instruments: Assets: Cash and cash equivalents $ 562,554 $ 562,554 $ 562,554 $ — $ — Securities available-for-sale: U.S. Treasury 9,383 9,383 9,383 — — Obligations of U.S. government agencies and sponsored entities 100,170 100,170 — 100,170 — Municipal securities 480,374 480,374 — 460,248 20,126 Mortgage-backed securities 401,232 401,232 — 401,232 — Corporate obligations 31,023 31,023 — 30,788 235 Loans, net 3,087,858 3,089,318 — — 3,089,318 Accrued interest receivable 26,344 26,344 — 5,690 20,654 Liabilities: Non-interest-bearing deposits $ 571,079 $ 571,079 $ — $ 571,079 $ — Interest-bearing deposits 3,644,201 3,647,845 — 3,647,845 — Subordinated debentures 144,592 145,289 — — 145,289 FHLB and other borrowings 114,647 114,647 — 114,647 — Accrued interest payable 2,134 2,134 — 2,134 — Assets measured at fair value on a recurring basis are summarized below: June 30, 2021 ($ in thousands) Fair Value Measurements Using Quoted Prices in Active Markets Significant Other Significant For Observable Unobservable Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Available-for-sale U.S. Treasury $ 36,957 $ 36,957 $ — $ — Obligations of U.S. Government agencies and sponsored entities 150,504 — 150,504 — Municipal securities 531,134 — 511,030 20,104 Mortgage-backed securities 530,749 — 530,749 — Corporate obligations 31,417 — 31,199 218 Total available-for-sale $ 1,280,761 $ 36,957 $ 1,223,482 $ 20,322 December 31, 2020 ($ in thousands) Fair Value Measurements Using Quoted Prices in Active Markets Significant Other Significant For Observable Unobservable Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Available-for-sale U.S. Treasury $ 9,383 $ 9,383 $ — $ — Obligations of U.S. Government agencies and sponsored entities 100,170 — 100,170 — Municipal securities 480,374 — 460,248 20,126 Mortgage-backed securities 401,232 — 401,232 — Corporate obligations 31,023 — 30,788 235 Total available-for-sale $ 1,022,182 $ 9,383 $ 992,438 $ 20,361 The following is a reconciliation of activity for assets measured at fair value based on significant unobservable inputs (Level 3) information. Bank-Issued Trust Preferred Securities ($ in thousands) 2021 2020 Balance, January 1 $ 235 $ 408 Paydowns (55) (273) Unrealized gain included in comprehensive income 38 105 Balance at June 30 $ 218 $ 240 Municipal Securities ($ in thousands) 2021 2020 Balance, January 1 $ 20,126 $ 10,345 Purchases 4,189 7,003 Maturities, calls and paydowns (4,185) (302) Transfer to level 2 — (6,293) Unrealized gain (loss) included in comprehensive income (26) 131 Balance at June 30 $ 20,104 $ 10,884 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 June 30, 2021 and December 31, 2020. The following tables present quantitative information about recurring Level 3 fair value measurements ($ in thousands): Significant Unobservable Trust Preferred Securities Fair Value Valuation Technique Inputs Range of Inputs June 30, 2021 $ 218 Discounted cash flow Probability of default 0.99% - 2.39% December 31, 2020 $ 235 Discounted cash flow Probability of default 1.08% - 2.48% Significant Unobservable Municipal Securities Fair Value Valuation Technique Inputs Range of Inputs June 30, 2021 $ 20,104 Discounted cash flow Discount Rate 0.50% - 2.00% December 31, 2020 $ 20,126 Discounted cash flow Discount Rate 0.50% - 2.45% 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 June 30, 2021 and December 31, 2020. June 30, 2021 ($ in thousands) Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant For Observable Unobservable Identical Assests Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Collateral dependent loans $ 5,176 $ — $ — $ 5,176 Other real estate owned 3,529 — — 3,529 December 31, 2020 ($ in thousands) Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant For Observable Unobservable Identical Assests Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Impaired loans $ 15,107 $ — $ — $ 15,107 Other real estate owned 5,802 — — 5,802 |
SECURITIES
SECURITIES | 6 Months Ended |
Jun. 30, 2021 | |
SECURITIES | |
SECURITIES | NOTE 9 - SECURITIES On January 1, 2021, the Company adopted ASC 326, which made changes to the accounting for AFS debt securities whereby credit losses should be presented as an allowance, rather than as a write-down when management does not intend to sell and does not believe that it is more likely than not they will be required to sell prior to maturity. In addition, ASC 326 requires financial assets measured at amortized cost, including held-to-maturity debt securities, to measure an expected credit loss under CECL methodology that requires consideration of a broader range of reasonable and supportable information to inform credit losses estimates. For further discussion on the Company’s accounting policies and policy elections related to the accounting standard update refer to Note 3 “Accounting Standards” to the Consolidated Financial Statements for additional information. All securities information presented as of June 30, 2021 is in accordance with ASC 326. All securities information presented prior to January 1, 2021 is in accordance with previous applicable GAAP. See the Company’s prior accounting policies in Note 1 “Summary of Significant Accounting Policies” of the 2020 Form 10-K. Available-for-sale ASC 326 makes targeted improvements to the accounting for credit losses on securities AFS. The concept of other-than-temporarily impaired has been replaced with the allowance for credit losses. Unlike securities held-to-maturity, securities available-for-sale are evaluated on an individual level and pooling of securities is not allowed. 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 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 June 30, 2021, the results of the analysis did not identify any securities where the decline was indicative of credit loss factors; therefore, no DCF analysis was performed and 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. At June 30, 2021, accrued interest receivable totaled $6.1 million for securities AFS and was reported in interest receivable on the accompanying Consolidated Balance Sheet. All AFS securities were current with no securities past due or on nonaccrual as of June 30, 2021. The following table summarizes the amortized cost, gross unrealized gains and losses, and estimated fair values of AFS securities at June 30, 2021 and December 31, 2020: ($ in thousands) June 30, 2021 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale securities: U.S. Treasury $ 36,806 $ 205 $ 54 $ 36,957 Obligations of U.S. government agencies and sponsored entities 147,594 2,965 55 150,504 Tax-exempt and taxable obligations of states and municipal subdivisions 519,573 13,757 2,196 531,134 Mortgage-backed securities - residential 336,122 6,243 1,098 341,267 Mortgage-backed securities - commercial 185,161 4,948 627 189,482 Corporate obligations 29,939 1,485 7 31,417 Total $ 1,255,195 $ 29,603 $ 4,037 $ 1,280,761 ($ in thousands) December 31, 2020 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale securities: U.S. Treasury $ 9,063 $ 320 $ — $ 9,383 Obligations of U.S. government agencies sponsored entities 97,107 3,130 67 100,170 Tax-exempt and taxable obligations of states and municipal subdivisions 464,348 16,326 300 480,374 Mortgage-backed securities - residential 228,257 8,206 42 236,421 Mortgage-backed securities - commercial 158,784 6,087 60 164,811 Corporate obligations 30,063 976 16 31,023 Total $ 987,622 $ 35,045 $ 485 $ 1,022,182 The amortized cost and fair value of debt securities at June 30, 2021 are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. ($ in thousands) June 30, 2021 Available-for-Sale Amortized Fair Cost Value Due less than one year $ 45,101 $ 45,446 Due after one year through five years 143,216 147,901 Due after five years through ten years 308,271 313,844 Due greater than ten years 237,324 242,821 Mortgage-backed securities - residential 336,122 341,267 Mortgage-backed securities - commercial 185,161 189,482 Total $ 1,255,195 $ 1,280,761 The amortized costs of securities pledged as collateral, to secure public deposits and for other purposes, was $795.3 million and $576.0 million at June 30, 2021 and December 31, 2020, respectively. The following table summarizes available-for-sale securities with unrealized losses position for which an allowance for credit losses has not been recorded at June 30, 2021 and that are not deemed to be other than temporarily impaired as of December 31, 2020. The securities are aggregated by major security type and length of time in a continuous unrealized loss position: ($ in thousands) June 30, 2021 Losses < 12 Months Losses 12 Months or > Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. Treasury $ 10,888 $ 54 $ — $ — $ 10,888 $ 54 Obligations of U.S government agencies and sponsored entities 9,112 52 522 3 9,634 55 Tax-exempt and taxable obligations of state and municipal subdivisions 129,571 1,938 5,053 258 134,624 2,196 Mortgage-backed securities - residential 128,546 1,091 502 7 129,048 1,098 Mortgage-backed securities - commercial 56,200 611 1,660 16 57,860 627 Corporate obligations — — 41 7 41 7 Total $ 334,317 $ 3,746 $ 7,778 $ 291 $ 342,095 $ 4,037 ($ in thousands) December 31, 2020 Losses < 12 Months Losses 12 Months or > Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. Treasury $ — $ — $ — $ — $ — $ — Obligations of U.S government agencies and sponsored entities 6,593 65 326 2 6,919 67 Tax-exempt and taxable obligations of state and municipal subdivisions 10,193 300 — — 10,193 300 Mortgage-backed securities - residential 30,202 42 11 — 30,213 42 Mortgage-backed securities - commercial 10,134 29 3,596 31 13,730 60 Corporate obligations 5,217 8 40 8 5,257 16 Total $ 62,339 $ 444 $ 3,973 $ 41 $ 66,312 $ 485 At June 30, 2021 and December 31, 2020, the Company’s securities portfolio consisted of 145 and 71 securities, respectively, which were in an unrealized loss position. AFS securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. The unrealized losses shown above are due to increases in market rates over the yields available at the time of purchase of the underlying securities and not credit quality. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell the investments before recovery of their amortized cost basis. No allowance for credit losses for available-for-sale debt securities was needed at June 30, 2021. The Company did not consider these investments to be other-than-temporarily impaired at December 31, 2020. |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2021 | |
LOANS | |
LOANS | NOTE 10 – LOANS On January 1, 2021, the Company adopted ASU 326. The FASB issued ASU 326 to replace the incurred loss model for loans and other financial assets with an expected loss model and requires consideration of a wider range of reasonable and supportable information to determine credit losses. In accordance with ASC 326, the Company has developed an ACL methodology, which replaces its previous allowance for loan losses methodology. All loan information presented as of June 30, 2021 is in accordance with ASC 326. All loan information presented prior to January 1, 2021 is in accordance with previous applicable GAAP. See the Company’s prior accounting policies in Note 1 “Summary of Significant Accounting Policies” of the 2020 Form 10-K. 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 real estate Consumer real estate Consumer installment The composition of the loan portfolio as of June 30, 2021 and December 31, 2020, is summarized below: ($ in thousands) June 30, 2021 December 31, 2020 Loans held for sale Mortgage loans held for sale $ 6,000 $ 21,432 Total LHFS $ 6,000 $ 21,432 Loans held for investment Commercial, financial and agriculture (1) $ 511,517 $ 579,443 Commercial real estate 1,653,090 1,652,993 Consumer real estate 833,889 850,206 Consumer installment 38,236 41,036 Total loans 3,036,732 3,123,678 Less allowance for credit losses (32,457) (35,820) Net LHFI $ 3,004,275 $ 3,087,858 (1) Loan balance includes $157.8 million and $239.7 million in PPP loans as of June 30, 2021 and December 31, 2020, respectively. Accrued interest receivable is not included in the amortized cost basis of the Company’s LHFI. At June 30, 2021, accrued interest receivable for LHFI totaled $17.9 million with no related ACL and was reported in interest receivable on the accompanying consolidated balance sheet. Nonaccrual and Past Due LHFI Past due LHFI are loans contractually past due 30 days or more as to principal or interest payments. Generally, the Company will place a delinquent loan in nonaccrual status when the loan becomes 90 days or more past due. At the time a loan is placed in nonaccrual status, all interest which has been accrued on the loan but remains unpaid is reversed and deducted from earnings as a reduction of reported interest income. No additional interest is accrued on the loan balance until the collection of both principal and interest becomes reasonably certain. The following tables presents the aging of the amortized cost basis in past due loans in addition to those loans classified as nonaccrual including PCD loans: ($ in thousands) June 30, 2021 Total Past Due Past Due Past Due, 30 to 89 90 Days or More and Nonaccrual Total Nonaccrual and Days Still Accruing Nonaccrual PCD and PCD LHFI PCD with No ACL Commercial, financial and agriculture (1) $ 252 $ 10 $ 276 $ 28 $ 566 $ 511,517 $ 28 Commercial real estate 2,318 4,913 16,601 2,470 26,302 1,653,090 1,841 Consumer real estate 3,020 911 3,185 5,027 12,143 833,889 1,833 Consumer installment 130 — 36 2 168 38,236 — Total $ 5,720 $ 5,834 $ 20,098 $ 7,527 $ 39,179 $ 3,036,732 $ 3,702 (1) Total loan balance includes $157.8 million in PPP loans as of June 30, 2021. ($ in thousands) December 31,2020 Past Due 90 Total Past Due Days or Past Due, 30 to 89 More and Still Nonaccrual Total Days Accruing Nonaccrual PCI and PCI LHFI Commercial, financial and agriculture (1) $ 1,007 $ 244 $ 2,197 $ 221 $ 3,669 $ 579,443 Commercial real estate 2,116 1,553 19,499 3,388 26,556 1,652,993 Consumer real estate 5,389 895 2,480 5,954 14,718 850,206 Consumer installment 419 — 32 3 454 41,036 Total $ 8,931 $ 2,692 $ 24,208 $ 9,566 $ 45,397 $ 3,123,678 (1) Total loan balance as of December 31, 2020 includes $239.7 million in PPP loans. Acquired Loans On January 1, 2021, the Company adopted ASC 326 and elected to account for its existing acquired PCI loans as PCD loans included within the LHFI portfolio. The Company elected to maintain segments of loans that were previously accounted for under ASC 310-30 and will continue to account for these segments as a unit of account unless the loan is collateral dependent. PCD loans that are collateral dependent will be assessed individually. Loans are only removed from the existing segments if they are written off, paid off, or sold. Upon adoption of ASC 326, the ACL was determined for each segment and added to the band’s carrying amount to establish a new amortized cost basis. The difference between the unpaid principal balance of the segment and the new amortized cost basis was the noncredit discount of approximately $685 thousand, which will be accreted into interest income over the remaining life of the segment. Changes to the ACL after adoption are recorded through provision expense. As of June 30, 2021, the amortized cost of the Company’s PCD loans totaled $11.8 million, which had an estimated ACL of $1.3 million. Prior to the adoption of FASB ASC 326, the Company acquired loans with deteriorated credit quality in 2014, 2017, 2018, 2019 and 2020. These loans were recorded at estimated fair value at the acquisition date with no carryover of the related allowance for loan losses. The acquired loans were segregated as of the acquisition date between those considered to be performing (acquired non-impaired loans) and those with evidence of credit deterioration (PCI loans). Acquired loans are considered to be impaired if it is probable, based on current available information, that the Company will be unable to collect all cash flows as expected. If expected cash flows cannot reasonably be estimated as to what will be collected, there will not be any interest income recognized on these loans. Impaired LHFI Prior to the adoption of FASB ASC 326, the Company individually evaluated impaired LHFI. The following table provides a detail of impaired loans broken out according to class as of December 31, 2020. The following table does not include PCI loans. The recorded investment included in the following table represents customer balances net of any partial charge-offs recognized on the loans, net of any deferred fees and costs. Recorded investment excludes any insignificant amount of accrued interest receivable on loans 90-days or more past due and still accruing. The unpaid balance represents the recorded balance prior to any partial charge-offs. December 31, 2020 ($ in thousands) Average Interest Recorded Income Recorded Unpaid Related Investment Recognized Investment Balance Allowance YTD YTD Impaired loans with no related allowance: Commercial, financial and agriculture $ — $ — $ — $ 198 $ — Commercial real estate 5,884 6,087 — 11,433 47 Consumer real estate 712 758 — 790 5 Consumer installment 23 24 — 17 — Total $ 6,619 $ 6,869 $ — $ 12,438 $ 52 Impaired loans with a related allowance: Commercial, financial and agriculture $ 2,241 $ 2,254 $ 1,235 $ 2,186 $ 58 Commercial real estate 17,973 18,248 4,244 13,687 36 Consumer real estate 536 544 176 734 4 Consumer installment 26 26 14 86 — Total $ 20,776 $ 21,072 $ 5,669 $ 16,693 $ 98 Total impaired loans: Commercial, financial and agriculture $ 2,241 $ 2,254 $ 1,235 $ 2,384 $ 58 Commercial real estate 23,857 24,335 4,244 25,120 83 Consumer real estate 1,248 1,302 176 1,524 9 Consumer installment 49 50 14 103 — Total Impaired Loans $ 27,395 $ 27,941 $ 5,669 $ 29,131 $ 150 The cash basis interest earned in the chart above is materially the same as the interest recognized during impairment for the year ended December 31, 2020. The gross interest income that would have been recorded in the period that ended if the nonaccrual loans had been current in accordance with their original terms and had been outstanding throughout the period or since origination, if held for part of the six months ended June 30, 2020, was $758 thousand. The Company had no loan commitments to borrowers in nonaccrual status at June 30, 2021 or December 31, 2020. Troubled Debt Restructurings If the Company grants a concession to a borrower for economic or legal reasons related to a borrower’s financial difficulties that it would not otherwise consider, the loan is classified as TDRs. In response to the Coronavirus Disease 2019 (“COVID-19”) pandemic and its economic impact to its customers, the Company implemented a short-term modification program in accordance with interagency regulatory guidance to provide temporary payment relief to those borrowers directly impacted by COVID-19 who were not more than 30 days past due at the time of the modification. This program allowed for a deferral of payments for up two successive 90-day periods for a cumulative maximum of 180 days. Pursuant to interagency guidance, such short-term deferrals are not deemed to meet the criteria for reporting as TDRs. For borrowers requiring a longer-term modification following the short-term loan modification program the Company worked with these borrowers whose loans were not more 30 days past due at December 31, 2019 and who required modification as a result of COVID-19 to modify such loans under Section 4013 of the Coronavirus Aid, Relief, and Economic Security (“CARES Act”). As of June 30, 2021, and December 31, 2020, the Company had TDRs totaling $21.5 million and $27.5 million, respectively. As of June 30, 2021, the Company had no additional amount committed on any loan classified as TDR. As of June 30, 2021, TDRs had a related ACL of $3.0 million, compared to a related allowance for loan loss of $4.1 million at December 31, 2020. The following table presents LHFI by class modified as TDRs that occurred during the three months and six months ended June 30, 2021 and 2020($ in thousands, except for number of loans). Three Months Ended June 30, Outstanding Outstanding Recorded Recorded Number of Investment Investment 2021 Loans Pre-Modification Post-Modification Commercial, financial and agriculture — $ — $ — Commercial real estate 2 237 237 Consumer real estate 1 54 44 Consumer installment — — — Total 3 $ 291 $ 281 2020 Commercial, financial and agriculture 1 $ 35 $ 35 Commercial real estate 1 195 195 Consumer real estate — — — Consumer installment — — — Total 2 $ 230 $ 230 The TDRs presented above increased the ACL $21 thousand and increased the allowance for loan losses $11 thousand and resulted in no charge-offs for the three months period ended June 30, 2021 and 2020, respectively. Six Months Ended June 30, Outstanding Outstanding Recorded Recorded Number of Investment Investment 2021 Loans Pre-Modification Post-Modification Commercial, financial and agriculture — $ — $ — Commercial real estate 2 237 237 Consumer real estate 1 54 44 Consumer installment — — — Total 3 $ 291 $ 281 2020 Commercial, financial and agriculture 2 $ 47 $ 46 Commercial real estate 3 933 928 Consumer real estate — — — Consumer installment — — — Total 5 $ 980 $ 974 The TDRs presented above increased the ACL $21 thousand and increased the allowance for loan loss $49 thousand and resulted in no charge-offs for the six months period ended June 30, 2021 and 2020,respectively. The following table presents loans by class modified as TDRs for which there was a payment default within twelve months following the modification ($ in thousands, except for number of loans). Six Months Ended June 30, 2021 2020 Troubled Debt Restructurings Number of Recorded Number of Recorded That Subsequently Defaulted: Loans Investment Loans Investment Commercial, financial and agriculture — $ — 2 $ 254 Commercial real estate 3 1,027 9 15,083 Consumer real estate 1 44 — — Total 4 $ 1,071 11 $ 15,337 The modifications described above included one of the following or a combination of the following: maturity date extensions, interest only payments, amortizations were extended beyond what would be available on similar type loans, and payment waiver. No interest rate concessions were given on these loans nor were any of these loans written down. A loan is considered to be in a payment default once it is 30 days contractually past due under the modified terms. The TDRs presented above increased the ACL $238 thousand and the allowance for loan losses $2.4 million and resulted in no charge-offs for the six months period ended June 30, 2021 and 2020, respectively. The following tables represents the Company’s TDRs at June 30, 2021 and December 31, 2020: June 30, 2021 Past Due 90 Current Past Due days and still ($ in thousands) Loans 30‑89 accruing Nonaccrual Total Commercial, financial and agriculture $ 41 $ — $ — $ 149 $ 190 Commercial real estate 3,502 — — 13,376 16,878 Consumer real estate 2,371 — — 2,037 4,408 Consumer installment 20 — — — 20 Total $ 5,934 $ — $ — $ 15,562 $ 21,496 Allowance for credit losses $ 62 $ — $ — $ 2,927 $ 2,989 December 31, 2020 Past Due 90 Current Past Due days and still ($ in thousands) Loans 30‑89 accruing Nonaccrual Total Commercial, financial and agriculture $ 59 $ — $ — $ 765 $ 824 Commercial real estate 4,560 49 — 18,076 22,685 Consumer real estate 1,559 269 — 2,161 3,989 Consumer installment 23 3 — — 26 Total $ 6,201 $ 321 $ — $ 21,002 $ 27,524 Allowance for loan losses $ 163 $ 29 $ — $ 3,936 $ 4,128 Collateral Dependent Loans The following table presents the amortized cost basis of collateral dependent individually evaluated loans by class of loans as of June 30, 2021: ($ in thousands) Real Property Equipment Miscellaneous Total Commercial, financial and agriculture $ — $ 28 $ — $ 28 Commercial real estate 2,986 — — 2,986 Consumer real estate 2,313 — — 2,313 Consumer installment — — 2 2 Total $ 5,299 $ 28 $ 2 $ 5,329 A loan is collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the sale of the collateral. The following provides a qualitative description by class of loan of the collateral that secures the Company’s collateral-dependent LHFI: ● Commercial, financial and agriculture – Loans within these loan classes are secured by equipment, inventory accounts, and other non-real estate collateral. ● Commercial real estate – Loans within these loan classes are secured by commercial real property. ● Consumer real estate - Loans within these loan classes are secured by consumer real property. ● Consumer installment - Loans within these loan classes are secured by consumer goods, equipment, and non-real estate collateral. There have been no significant changes to the collateral that secures these financial assets during the period. Loan Participations The Company has loan participations, which qualify as participating interest, with other financial institutions. As of June 30, 2021, these loans totaled $118.0 million, of which $71.5 million had been sold to other financial institutions and $46.5 million was retained by the Company. The loan participations convey proportionate ownership rights with equal priority to each participating interest holder; involving no recourse (other than ordinary representations and warranties) to, or subordination by, any participating interest holder; all cash flows are divided among the participating interest holders in proportion to each holder’s share of ownership; and no holder has the right to pledge the entire financial assets unless all participating interest holders agree. Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually to classify the loans as to credit risk. The Company uses the following definitions for risk ratings: Pass: Special Mention Substandard Doubtful These above classifications were the most current available as of June 30, 2021, and were generally updated within the prior year. The tables below present the amortized cost basis of loans by credit quality indicator and class of loans based on the most recent analysis performed. Revolving loans converted to term as of the six months ended June 30, 2021 were not material to the total loan portfolio. ($ in thousands) Term Loans Amortized Cost Basis by Origination Year Revolving As of June 30, 2021 2021 2020 2019 2018 2017 Prior Loans Total Commercial, financial and: agriculture Risk Rating Pass $ 168,707 $ 119,630 $ 62,509 $ 57,083 $ 30,665 $ 52,296 $ 149 $ 491,039 Special mention — 258 1,385 424 340 215 — 2,622 Substandard — 53 1,862 6,778 512 8,641 10 17,856 Doubtful — — — — — — — — Total commercial, financial and agriculture $ 168,707 $ 119,941 $ 65,756 $ 64,285 $ 31,517 $ 61,152 $ 159 $ 511,517 Commercial real estate: Risk Rating Pass $ 184,689 $ 348,150 $ 243,816 $ 221,733 $ 161,793 $ 372,118 $ — $ 1,532,299 Special mention — 3,133 2,181 13,561 4,090 21,110 — 44,075 Substandard 188 4,756 3,465 17,583 20,076 30,648 — 76,716 Doubtful — — — — — — — — Total commercial real estate $ 184,877 $ 356,039 $ 249,462 $ 252,877 $ 185,959 $ 423,876 $ — $ 1,653,090 Consumer real estate: Risk Rating Pass $ 117,209 $ 209,247 $ 84,167 $ 81,170 $ 66,537 $ 148,924 $ 98,114 $ 805,368 Special mention — — 342 1,129 242 2,206 125 4,044 Substandard 305 541 2,216 3,272 1,966 14,884 1,271 24,455 Doubtful — — — — — 22 — 22 Total consumer real estate $ 117,514 $ 209,788 $ 86,725 $ 85,571 $ 68,745 $ 166,036 $ 99,510 $ 833,889 Consumer installment: Risk Rating Pass $ 9,029 $ 12,169 $ 6,795 $ 2,670 $ 1,536 $ 2,094 $ 3,829 $ 38,122 Special mention — — — 10 3 1 — 14 Substandard — — 22 12 13 28 25 100 Doubtful — — — — — — — — Total consumer installment $ 9,029 $ 12,169 $ 6,817 $ 2,692 $ 1,552 $ 2,123 $ 3,854 $ 38,236 Total Pass $ 479,634 $ 689,196 $ 397,287 $ 362,656 $ 260,531 $ 575,432 $ 102,092 $ 2,866,828 Special mention — 3,391 3,908 15,124 4,675 23,532 125 50,755 Substandard 493 5,350 7,565 27,645 22,567 54,201 1,306 119,127 Doubtful — — — — — 22 — 22 Total $ 480,127 $ 697,937 $ 408,760 $ 405,425 $ 287,773 $ 653,187 $ 103,523 $ 3,036,732 At December 31, 2020, and based on the most recent analysis performed, the risk category of loans by class of loans (excluding mortgage loans held for sale) was as follows: Commercial, December 31, 2020 Financial and Commercial Consumer Consumer ($ in thousands) Agriculture Real Estate Real Estate Installment Total Pass $ 563,772 $ 1,530,366 $ 834,920 $ 40,884 $ 2,969,942 Special Mention 2,143 64,012 1,889 20 68,064 Substandard 11,875 66,535 13,397 132 91,939 Doubtful 1,653 23 — — 1,676 Subtotal $ 579,443 $ 1,660,936 $ 850,206 $ 41,036 $ 3,131,621 Less: Unearned discount — 7,943 — — 7,943 LHFI, net of unearned discount $ 579,443 $ 1,652,993 $ 850,206 $ 41,036 $ 3,123,678 Allowance for Credit Losses (ACL) 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 assess loans. The allowance is continuously monitored by Management to maintain a level adequate to absorb expected losses inherent in the loan portfolio. See Note 3. “Accounting Standards” to the Consolidated Financial Statements for additional information. The following table presents the activity in the allowance for credit losses by portfolio segment for the three months and six months ended June 30, 2021 and the allowance for loan losses for the three months and six months ended June 30, 2020: Three Months Ended June 30, 2021 ($ in thousands) Commercial, Financial and Commercial Consumer Consumer Agriculture Real Estate Real Estate Installment Total Allowance for credit losses: Beginning balance $ 4,158 $ 17,578 $ 10,280 $ 647 $ 32,663 Provision for credit losses — — — — — Loans charged-off (490) (166) (124) (108) (888) Recoveries 242 161 183 96 682 Total ending allowance balance $ 3,910 $ 17,573 $ 10,339 $ 635 $ 32,457 Six Months Ended June 30, 2021 ($ in thousands) Commercial, Financial and Commercial Consumer Consumer Agriculture Real Estate Real Estate Installment Total Allowance for credit losses: Beginning balance $ 6,214 $ 24,319 $ 4,736 $ 551 $ 35,820 Impact of ASC 326 adoption on non-PCD loans (1,319) (4,607) 5,257 (49) (718) Impact of ASC 326 adoption on PCD loans 166 575 372 2 1,115 Provision for credit losses — — — — — Loans charged-off (1,476) (3,007) (263) (265) (5,011) Recoveries 325 293 237 396 1,251 Total ending allowance balance $ 3,910 $ 17,573 $ 10,339 $ 635 $ 32,457 Three Months Ended June 30, 2020 ($ in thousands) Commercial, Commercial Consumer Paycheck Financial and Real Real Consumer Protection Agriculture Estate Estate Installment Program Unallocated Total Allowance for loan losses: Beginning balance $ 4,466 $ 13,095 $ 2,840 $ 403 $ — $ — $ 20,804 Provision for loan losses 883 5,202 874 517 130 — 7,606 Loans charged-off (165) (63) (87) (554) — — (869) Recoveries 24 292 114 93 — — 523 Total ending allowance balance $ 5,208 $ 18,526 $ 3,741 $ 459 $ 130 $ — $ 28,064 Six Months Ended June 30, 2020 ($ in thousands) Commercial, Commercial Consumer Paycheck Financial and Real Real Consumer Protection Agriculture Estate Estate Installment Program Unallocated Total Allowance for loan losses: Beginning balance $ 3,043 $ 8,836 $ 1,694 $ 296 $ — $ 39 $ 13,908 Provision for loan losses 2,329 9,725 1,980 583 130 (39) 14,708 Loans charged-off (264) (396) (96) (613) — — (1,369) Recoveries 100 361 163 193 — — 817 Total ending allowance balance $ 5,208 $ 18,526 $ 3,741 $ 459 $ 130 $ — $ 28,064 The Company recorded no provision for credit losses for the three and six months ended June 30, 2021, compared to $7.6 million for the three months ended June 30, 2020 and $14.7 million for the six months ended June 30, 2020. The higher provision in 2020 was related to our estimates of probable incurred losses associated with COVID-19. The improved macroeconomic outlook for 2021 resulted in an overall decrease for credit losses and we determined that no further provision adjustment was necessary for the three and six months ended June 30, 2021. The following table provides the ending balance in the Company’s LHFI and the ACL, broken down by portfolio segment as of June 30, 2021 ($ in thousands). June 30, 2021 Commercial, Financial and Commercial Consumer Consumer Agriculture Real Estate Real Estate Installment Total LHFI Individually evaluated $ 28 $ 2,986 $ 2,313 $ 2 $ 5,329 Collectively evaluated 511,489 1,650,104 831,576 38,234 3,031,403 Total $ 511,517 $ 1,653,090 $ 833,889 $ 38,236 $ 3,036,732 Allowance for Credit Losses Individually evaluated $ — $ 147 $ 4 $ 2 $ 153 Collectively evaluated 3,910 17,426 10,335 633 32,304 Total $ 3,910 $ 17,573 $ 10,339 $ 635 $ 32,457 The following table provides the ending balance in the Company’s LHFI and the allowance for loan losses, broken down by portfolio segment as of December 31, 2020 ($ in thousands). December 31, 2020 Commercial, Financial and Commercial Consumer Consumer Agriculture Real Estate Real Estate Installment Total LHFI Individually evaluated $ 2,241 $ 23,857 $ 1,248 $ 49 $ 27,395 Collectively evaluated 574,152 1,971,292 494,833 41,498 3,081,775 PCI Loans 244 9,056 5,185 23 14,508 Total $ 576,637 $ 2,004,205 $ 501,266 $ 41,570 $ 3,123,678 Allowance for Loan Losses Individually evaluated $ 1,235 $ 4,244 $ 176 $ 14 $ 5,669 Collectively evaluated 4,979 20,075 4,560 537 30,151 Total $ 6,214 $ 24,319 $ 4,736 $ 551 $ 35,820 |
COVID-19 UPDATE
COVID-19 UPDATE | 6 Months Ended |
Jun. 30, 2021 | |
COVID-19 UPDATE | |
COVID-19 UPDATE | NOTE 11 – COVID-19 UPDATE The COVID-19 pandemic continues to have significant effects on global markets, supply chains, businesses and communities. COVID-19 could potentially impact the Company’s future financial condition and results of operations including but not limited to additional credit loss reserves, additional collateral and/or modifications to debt obligations, liquidity, limited dividend payouts or potential shortages of personnel. The pandemic is having an adverse impact on certain industries the Company serves, including hotels, restaurants, retail, and direct energy. As of June 30, 2021, the Company’s aggregate outstanding exposure in these segments was $437.8 million, and total loan modifications resulting from COVID-19 were approximately $710.7 million. While it is still not yet possible to know the full effect that the pandemic will have on the economy, or to what extent this crisis will impact the Company, all available current industry statistics and internal monitoring of loan repayment ability and payment forgiveness across the portfolio has been analyzed in an attempt to understand the correlation with asset quality and degree of possible deterioration. Despite recent improvements in certain economic indicators, significant constraints to commerce remain in place, and significant uncertainty remains over the timing and scope of additional government stimulus packages. The duration and extent of the downturn and speed of the related recovery on our business, customers, and the economy as a whole remains uncertain. It is unknown how long the adverse conditions associated with the COVID-19 pandemic will last and what the complete financial effect will be to the Company. It is reasonably possible that estimates made in the financial statements could be materially and adversely impacted in the near term as a result of these conditions, including the determination of the allowance for credit losses, fair value of financial instruments, impairment of goodwill and other intangible assets and income taxes. |
RECLASSIFICATION
RECLASSIFICATION | 6 Months Ended |
Jun. 30, 2021 | |
RECLASSIFICATION | |
RECLASSIFICATION | NOTE 12 – RECLASSIFICATION Certain amounts in the 2020 financial statements have been reclassified for comparative purposes to conform to the current period financial statement presentation. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 13 – SUBSEQUENT EVENTS On June 30, 2021, the Company entered into a Purchase and Sale Agreement with BHCRE I, LLC, a Florida limited liability company, for the purchase of 2000 Ninety Eight Palms Blvd., Destin Florida, together with all furniture, fixtures, equipment and inventory for a purchase price $5.3 million. The Company currently leases the building and it is reported in the consolidated balance sheet as a right-of-use asset, with an offsetting lease liability, for $623 thousand. The closing is expected to occur on or before August 20, 2021, subject to certain closing conditions. |
ACCOUNTING STANDARDS (Tables)
ACCOUNTING STANDARDS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
ACCOUNTING STANDARDS | |
Schedule of adjustment for adoption of ASC 326 | ($ in thousands) January 1, December 31, 2021 2020 As Reported Pre-ASC 326 Transition Under Assets: Adoption Adjustment ASC 326 Loans Commercial, financial, and agriculture $ 6,214 $ (1,153) $ 5,061 Commercial real estate 24,319 (4,032) 20,287 Consumer real estate 4,736 5,629 10,365 Consumer installment 551 (47) 504 Allowance for credit losses on loans $ 35,820 $ 397 $ 36,217 Liabilities: Allowance for credit losses on OBSC exposures — 718 718 Total allowance for credit losses $ 35,820 $ 1,115 $ 36,935 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) - SWG | 6 Months Ended |
Jun. 30, 2021 | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the finalized fair values of the assets acquired, liabilities assumed and the bargain purchase gain assumed in the SWG transaction, as of the acquisition date ($ in thousands): Measurement As Initially Period Reported Adjustments As Adjusted Identifiable assets: Cash and due from banks $ 29,247 — $ 29,247 Investments 89,737 — 89,737 Loans 392,292 — 392,292 Core deposit intangible 4,556 — 4,556 Personal and real property 18,558 — 18,558 Bank owned life insurance 6,963 — 6,963 Other assets 2,589 813 3,402 Total assets 543,942 813 544,755 Liabilities and equity: Deposits 476,099 — 476,099 Borrowed funds 9,500 — 9,500 Other liabilities 3,461 — 3,461 Total liabilities 489,060 — 489,060 Net assets acquired 54,882 813 55,695 Consideration paid 47,859 (1) 47,858 Bargain purchase gain $ (7,023) 812 $ (7,835) |
Business Combination, Separately Recognized Transactions | The outstanding principal balance and the carrying amount of these loans included in the consolidated balance sheet as of the date of acquisition are as follows ($ in thousands): April 3, 2020 Outstanding principal balance $ 394,621 Carrying amount 392,292 |
EARNINGS APPLICABLE TO COMMON_2
EARNINGS APPLICABLE TO COMMON SHAREHOLDERS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
EARNINGS APPLICABLE TO COMMON SHAREHOLDERS | |
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): For the Three Months Ended For the Three Months Ended June 30, 2021 June 30, 2020 Net Income Shares Per Net Income Shares Per (Numerator) (Denominator) Share Data (Numerator) (Denominator) Share Data Basic earnings per share $ 15,600 21,018,772 $ 0.74 $ 16,943 21,341,913 $ 0.79 Effect of dilutive shares: Restricted stock grants 188,288 95,267 Diluted earnings per share $ 15,600 21,207,060 $ 0.74 $ 16,943 21,437,180 $ 0.79 For the Six Months Ended For the Six Months Ended June 30, 2021 June 30, 2020 Net Income Shares Per Net Income Shares Per (Numerator) (Denominator) Share Data (Numerator) (Denominator) Share Data Basic earnings per share $ 32,244 21,013,930 $ 1.53 $ 25,254 20,080,014 $ 1.26 Effect of dilutive shares: Restricted stock grants 182,147 125,453 Diluted earnings per share $ 32,244 21,196,077 $ 1.52 $ 25,254 20,205,467 $ 1.25 |
FINANCIAL INSTRUMENTS WITH OF_2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | |
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 June 30, 2021, and December 31, 2020 these financial instruments consisted of the following: ($ in thousands) June 30, 2021 December 31, 2020 Fixed Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 86,584 $ 33,205 $ 97,738 $ 16,203 Unused lines of credit 178,224 210,529 157,006 195,221 Standby letters of credit 2,848 9,903 4,182 11,486 |
Schedule of changes in the ACL on OBSC exposures | Changes in the ACL on OBSC exposures were at June 30, 2021 were as follows ($ in thousands): Three Months Ended Six Months Ended June 30, 2021 June 30, 2021 Balance at beginning of period $ 718 $ — Adoption of ASU 326 — 718 Credit loss expense related to OBSC exposures — — Balance at end of period $ 718 $ 718 |
FAIR VALUE DISCLOSURES AND RE_2
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS | |
Schedule of estimated fair values | Estimated fair values for the Company’s financial instruments are as follows, as of the dates noted: June 30, 2021 Fair Value Measurements ($ in thousands) Significant Other Significant Observable Unobservable Carrying Estimated Quoted Prices Inputs Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) Financial Instruments: Assets: Cash and cash equivalents $ 762,486 $ 762,486 $ 762,486 $ — $ — Securities available-for- sale: U.S. Treasury 36,957 36,957 36,957 — — Obligations of U.S. government agencies and sponsored entities 150,504 150,504 — 150,504 — Municipal securities 531,134 531,134 — 511,030 20,104 Mortgage- backed securities 530,749 530,749 — 530,749 — Corporate obligations 31,417 31,417 — 31,199 218 Loans, net 3,004,275 3,042,805 — — 3,042,805 Accrued interest receivable 24,026 24,026 — 6,107 17,919 Liabilities: Noninterest-bearing deposits $ 682,014 $ 682,014 $ — $ 682,014 $ — Interest-bearing deposits 3,991,898 3,973,535 — 3,973,535 — Subordinated debentures 144,611 152,968 — — 152,968 Accrued interest payable 1,827 1,827 — 1,827 — December 31, 2020 Fair Value Measurements ($ in thousands) Significant Other Significant Quoted Observable Unobservable Carrying Estimated Prices Inputs Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) Financial Instruments: Assets: Cash and cash equivalents $ 562,554 $ 562,554 $ 562,554 $ — $ — Securities available-for-sale: U.S. Treasury 9,383 9,383 9,383 — — Obligations of U.S. government agencies and sponsored entities 100,170 100,170 — 100,170 — Municipal securities 480,374 480,374 — 460,248 20,126 Mortgage-backed securities 401,232 401,232 — 401,232 — Corporate obligations 31,023 31,023 — 30,788 235 Loans, net 3,087,858 3,089,318 — — 3,089,318 Accrued interest receivable 26,344 26,344 — 5,690 20,654 Liabilities: Non-interest-bearing deposits $ 571,079 $ 571,079 $ — $ 571,079 $ — Interest-bearing deposits 3,644,201 3,647,845 — 3,647,845 — Subordinated debentures 144,592 145,289 — — 145,289 FHLB and other borrowings 114,647 114,647 — 114,647 — Accrued interest payable 2,134 2,134 — 2,134 — |
Schedule of assets measured at fair value on a recurring basis | Assets measured at fair value on a recurring basis are summarized below: June 30, 2021 ($ in thousands) Fair Value Measurements Using Quoted Prices in Active Markets Significant Other Significant For Observable Unobservable Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Available-for-sale U.S. Treasury $ 36,957 $ 36,957 $ — $ — Obligations of U.S. Government agencies and sponsored entities 150,504 — 150,504 — Municipal securities 531,134 — 511,030 20,104 Mortgage-backed securities 530,749 — 530,749 — Corporate obligations 31,417 — 31,199 218 Total available-for-sale $ 1,280,761 $ 36,957 $ 1,223,482 $ 20,322 December 31, 2020 ($ in thousands) Fair Value Measurements Using Quoted Prices in Active Markets Significant Other Significant For Observable Unobservable Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Available-for-sale U.S. Treasury $ 9,383 $ 9,383 $ — $ — Obligations of U.S. Government agencies and sponsored entities 100,170 — 100,170 — Municipal securities 480,374 — 460,248 20,126 Mortgage-backed securities 401,232 — 401,232 — Corporate obligations 31,023 — 30,788 235 Total available-for-sale $ 1,022,182 $ 9,383 $ 992,438 $ 20,361 |
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 Preferred Securities ($ in thousands) 2021 2020 Balance, January 1 $ 235 $ 408 Paydowns (55) (273) Unrealized gain included in comprehensive income 38 105 Balance at June 30 $ 218 $ 240 Municipal Securities ($ in thousands) 2021 2020 Balance, January 1 $ 20,126 $ 10,345 Purchases 4,189 7,003 Maturities, calls and paydowns (4,185) (302) Transfer to level 2 — (6,293) Unrealized gain (loss) included in comprehensive income (26) 131 Balance at June 30 $ 20,104 $ 10,884 |
Schedule of quantitative information about recurring Level 3 fair value measurements | The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis at June 30, 2021 and December 31, 2020. The following tables present quantitative information about recurring Level 3 fair value measurements ($ in thousands): Significant Unobservable Trust Preferred Securities Fair Value Valuation Technique Inputs Range of Inputs June 30, 2021 $ 218 Discounted cash flow Probability of default 0.99% - 2.39% December 31, 2020 $ 235 Discounted cash flow Probability of default 1.08% - 2.48% Significant Unobservable Municipal Securities Fair Value Valuation Technique Inputs Range of Inputs June 30, 2021 $ 20,104 Discounted cash flow Discount Rate 0.50% - 2.00% December 31, 2020 $ 20,126 Discounted cash flow Discount Rate 0.50% - 2.45% |
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 June 30, 2021 and December 31, 2020. June 30, 2021 ($ in thousands) Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant For Observable Unobservable Identical Assests Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Collateral dependent loans $ 5,176 $ — $ — $ 5,176 Other real estate owned 3,529 — — 3,529 December 31, 2020 ($ in thousands) Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant For Observable Unobservable Identical Assests Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Impaired loans $ 15,107 $ — $ — $ 15,107 Other real estate owned 5,802 — — 5,802 |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
SECURITIES | |
Schedule of amortized cost and fair value of available-for-sale securities and held-to-maturity securities | ($ in thousands) June 30, 2021 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale securities: U.S. Treasury $ 36,806 $ 205 $ 54 $ 36,957 Obligations of U.S. government agencies and sponsored entities 147,594 2,965 55 150,504 Tax-exempt and taxable obligations of states and municipal subdivisions 519,573 13,757 2,196 531,134 Mortgage-backed securities - residential 336,122 6,243 1,098 341,267 Mortgage-backed securities - commercial 185,161 4,948 627 189,482 Corporate obligations 29,939 1,485 7 31,417 Total $ 1,255,195 $ 29,603 $ 4,037 $ 1,280,761 ($ in thousands) December 31, 2020 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale securities: U.S. Treasury $ 9,063 $ 320 $ — $ 9,383 Obligations of U.S. government agencies sponsored entities 97,107 3,130 67 100,170 Tax-exempt and taxable obligations of states and municipal subdivisions 464,348 16,326 300 480,374 Mortgage-backed securities - residential 228,257 8,206 42 236,421 Mortgage-backed securities - commercial 158,784 6,087 60 164,811 Corporate obligations 30,063 976 16 31,023 Total $ 987,622 $ 35,045 $ 485 $ 1,022,182 |
Schedule of amortized cost and fair value of debt securities by contractual maturity | The amortized cost and fair value of debt securities at June 30, 2021 are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. ($ in thousands) June 30, 2021 Available-for-Sale Amortized Fair Cost Value Due less than one year $ 45,101 $ 45,446 Due after one year through five years 143,216 147,901 Due after five years through ten years 308,271 313,844 Due greater than ten years 237,324 242,821 Mortgage-backed securities - residential 336,122 341,267 Mortgage-backed securities - commercial 185,161 189,482 Total $ 1,255,195 $ 1,280,761 |
Schedule of securities classified as available-for-sale with unrealized losses | The following table summarizes available-for-sale securities with unrealized losses position for which an allowance for credit losses has not been recorded at June 30, 2021 and that are not deemed to be other than temporarily impaired as of December 31, 2020. The securities are aggregated by major security type and length of time in a continuous unrealized loss position: ($ in thousands) June 30, 2021 Losses < 12 Months Losses 12 Months or > Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. Treasury $ 10,888 $ 54 $ — $ — $ 10,888 $ 54 Obligations of U.S government agencies and sponsored entities 9,112 52 522 3 9,634 55 Tax-exempt and taxable obligations of state and municipal subdivisions 129,571 1,938 5,053 258 134,624 2,196 Mortgage-backed securities - residential 128,546 1,091 502 7 129,048 1,098 Mortgage-backed securities - commercial 56,200 611 1,660 16 57,860 627 Corporate obligations — — 41 7 41 7 Total $ 334,317 $ 3,746 $ 7,778 $ 291 $ 342,095 $ 4,037 ($ in thousands) December 31, 2020 Losses < 12 Months Losses 12 Months or > Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. Treasury $ — $ — $ — $ — $ — $ — Obligations of U.S government agencies and sponsored entities 6,593 65 326 2 6,919 67 Tax-exempt and taxable obligations of state and municipal subdivisions 10,193 300 — — 10,193 300 Mortgage-backed securities - residential 30,202 42 11 — 30,213 42 Mortgage-backed securities - commercial 10,134 29 3,596 31 13,730 60 Corporate obligations 5,217 8 40 8 5,257 16 Total $ 62,339 $ 444 $ 3,973 $ 41 $ 66,312 $ 485 |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
LOANS | |
Schedule of composition of loan portfolio | ($ in thousands) June 30, 2021 December 31, 2020 Loans held for sale Mortgage loans held for sale $ 6,000 $ 21,432 Total LHFS $ 6,000 $ 21,432 Loans held for investment Commercial, financial and agriculture (1) $ 511,517 $ 579,443 Commercial real estate 1,653,090 1,652,993 Consumer real estate 833,889 850,206 Consumer installment 38,236 41,036 Total loans 3,036,732 3,123,678 Less allowance for credit losses (32,457) (35,820) Net LHFI $ 3,004,275 $ 3,087,858 (1) Loan balance includes $157.8 million and $239.7 million in PPP loans as of June 30, 2021 and December 31, 2020, respectively. |
Schedule of Company's loans that are past due and nonaccrual loans including PCD loans | The following tables presents the aging of the amortized cost basis in past due loans in addition to those loans classified as nonaccrual including PCD loans: ($ in thousands) June 30, 2021 Total Past Due Past Due Past Due, 30 to 89 90 Days or More and Nonaccrual Total Nonaccrual and Days Still Accruing Nonaccrual PCD and PCD LHFI PCD with No ACL Commercial, financial and agriculture (1) $ 252 $ 10 $ 276 $ 28 $ 566 $ 511,517 $ 28 Commercial real estate 2,318 4,913 16,601 2,470 26,302 1,653,090 1,841 Consumer real estate 3,020 911 3,185 5,027 12,143 833,889 1,833 Consumer installment 130 — 36 2 168 38,236 — Total $ 5,720 $ 5,834 $ 20,098 $ 7,527 $ 39,179 $ 3,036,732 $ 3,702 (1) Total loan balance includes $157.8 million in PPP loans as of June 30, 2021. ($ in thousands) December 31,2020 Past Due 90 Total Past Due Days or Past Due, 30 to 89 More and Still Nonaccrual Total Days Accruing Nonaccrual PCI and PCI LHFI Commercial, financial and agriculture (1) $ 1,007 $ 244 $ 2,197 $ 221 $ 3,669 $ 579,443 Commercial real estate 2,116 1,553 19,499 3,388 26,556 1,652,993 Consumer real estate 5,389 895 2,480 5,954 14,718 850,206 Consumer installment 419 — 32 3 454 41,036 Total $ 8,931 $ 2,692 $ 24,208 $ 9,566 $ 45,397 $ 3,123,678 (1) Total loan balance as of December 31, 2020 includes $239.7 million in PPP loans. |
Schedule of impaired loans, excluding PCI loans | December 31, 2020 ($ in thousands) Average Interest Recorded Income Recorded Unpaid Related Investment Recognized Investment Balance Allowance YTD YTD Impaired loans with no related allowance: Commercial, financial and agriculture $ — $ — $ — $ 198 $ — Commercial real estate 5,884 6,087 — 11,433 47 Consumer real estate 712 758 — 790 5 Consumer installment 23 24 — 17 — Total $ 6,619 $ 6,869 $ — $ 12,438 $ 52 Impaired loans with a related allowance: Commercial, financial and agriculture $ 2,241 $ 2,254 $ 1,235 $ 2,186 $ 58 Commercial real estate 17,973 18,248 4,244 13,687 36 Consumer real estate 536 544 176 734 4 Consumer installment 26 26 14 86 — Total $ 20,776 $ 21,072 $ 5,669 $ 16,693 $ 98 Total impaired loans: Commercial, financial and agriculture $ 2,241 $ 2,254 $ 1,235 $ 2,384 $ 58 Commercial real estate 23,857 24,335 4,244 25,120 83 Consumer real estate 1,248 1,302 176 1,524 9 Consumer installment 49 50 14 103 — Total Impaired Loans $ 27,395 $ 27,941 $ 5,669 $ 29,131 $ 150 |
Schedule of troubled debt restructurings | The following table presents LHFI by class modified as TDRs that occurred during the three months and six months ended June 30, 2021 and 2020($ in thousands, except for number of loans). Three Months Ended June 30, Outstanding Outstanding Recorded Recorded Number of Investment Investment 2021 Loans Pre-Modification Post-Modification Commercial, financial and agriculture — $ — $ — Commercial real estate 2 237 237 Consumer real estate 1 54 44 Consumer installment — — — Total 3 $ 291 $ 281 2020 Commercial, financial and agriculture 1 $ 35 $ 35 Commercial real estate 1 195 195 Consumer real estate — — — Consumer installment — — — Total 2 $ 230 $ 230 The TDRs presented above increased the ACL $21 thousand and increased the allowance for loan losses $11 thousand and resulted in no charge-offs for the three months period ended June 30, 2021 and 2020, respectively. Six Months Ended June 30, Outstanding Outstanding Recorded Recorded Number of Investment Investment 2021 Loans Pre-Modification Post-Modification Commercial, financial and agriculture — $ — $ — Commercial real estate 2 237 237 Consumer real estate 1 54 44 Consumer installment — — — Total 3 $ 291 $ 281 2020 Commercial, financial and agriculture 2 $ 47 $ 46 Commercial real estate 3 933 928 Consumer real estate — — — Consumer installment — — — Total 5 $ 980 $ 974 The following table presents loans by class modified as TDRs for which there was a payment default within twelve months following the modification ($ in thousands, except for number of loans). Six Months Ended June 30, 2021 2020 Troubled Debt Restructurings Number of Recorded Number of Recorded That Subsequently Defaulted: Loans Investment Loans Investment Commercial, financial and agriculture — $ — 2 $ 254 Commercial real estate 3 1,027 9 15,083 Consumer real estate 1 44 — — Total 4 $ 1,071 11 $ 15,337 The following tables represents the Company’s TDRs at June 30, 2021 and December 31, 2020: June 30, 2021 Past Due 90 Current Past Due days and still ($ in thousands) Loans 30‑89 accruing Nonaccrual Total Commercial, financial and agriculture $ 41 $ — $ — $ 149 $ 190 Commercial real estate 3,502 — — 13,376 16,878 Consumer real estate 2,371 — — 2,037 4,408 Consumer installment 20 — — — 20 Total $ 5,934 $ — $ — $ 15,562 $ 21,496 Allowance for credit losses $ 62 $ — $ — $ 2,927 $ 2,989 December 31, 2020 Past Due 90 Current Past Due days and still ($ in thousands) Loans 30‑89 accruing Nonaccrual Total Commercial, financial and agriculture $ 59 $ — $ — $ 765 $ 824 Commercial real estate 4,560 49 — 18,076 22,685 Consumer real estate 1,559 269 — 2,161 3,989 Consumer installment 23 3 — — 26 Total $ 6,201 $ 321 $ — $ 21,002 $ 27,524 Allowance for loan losses $ 163 $ 29 $ — $ 3,936 $ 4,128 |
Schedule of amortized cost basis of collateral dependent impaired loans by class of loans | ($ in thousands) Real Property Equipment Miscellaneous Total Commercial, financial and agriculture $ — $ 28 $ — $ 28 Commercial real estate 2,986 — — 2,986 Consumer real estate 2,313 — — 2,313 Consumer installment — — 2 2 Total $ 5,299 $ 28 $ 2 $ 5,329 |
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. Revolving loans converted to term as of the six months ended June 30, 2021 were not material to the total loan portfolio. ($ in thousands) Term Loans Amortized Cost Basis by Origination Year Revolving As of June 30, 2021 2021 2020 2019 2018 2017 Prior Loans Total Commercial, financial and: agriculture Risk Rating Pass $ 168,707 $ 119,630 $ 62,509 $ 57,083 $ 30,665 $ 52,296 $ 149 $ 491,039 Special mention — 258 1,385 424 340 215 — 2,622 Substandard — 53 1,862 6,778 512 8,641 10 17,856 Doubtful — — — — — — — — Total commercial, financial and agriculture $ 168,707 $ 119,941 $ 65,756 $ 64,285 $ 31,517 $ 61,152 $ 159 $ 511,517 Commercial real estate: Risk Rating Pass $ 184,689 $ 348,150 $ 243,816 $ 221,733 $ 161,793 $ 372,118 $ — $ 1,532,299 Special mention — 3,133 2,181 13,561 4,090 21,110 — 44,075 Substandard 188 4,756 3,465 17,583 20,076 30,648 — 76,716 Doubtful — — — — — — — — Total commercial real estate $ 184,877 $ 356,039 $ 249,462 $ 252,877 $ 185,959 $ 423,876 $ — $ 1,653,090 Consumer real estate: Risk Rating Pass $ 117,209 $ 209,247 $ 84,167 $ 81,170 $ 66,537 $ 148,924 $ 98,114 $ 805,368 Special mention — — 342 1,129 242 2,206 125 4,044 Substandard 305 541 2,216 3,272 1,966 14,884 1,271 24,455 Doubtful — — — — — 22 — 22 Total consumer real estate $ 117,514 $ 209,788 $ 86,725 $ 85,571 $ 68,745 $ 166,036 $ 99,510 $ 833,889 Consumer installment: Risk Rating Pass $ 9,029 $ 12,169 $ 6,795 $ 2,670 $ 1,536 $ 2,094 $ 3,829 $ 38,122 Special mention — — — 10 3 1 — 14 Substandard — — 22 12 13 28 25 100 Doubtful — — — — — — — — Total consumer installment $ 9,029 $ 12,169 $ 6,817 $ 2,692 $ 1,552 $ 2,123 $ 3,854 $ 38,236 Total Pass $ 479,634 $ 689,196 $ 397,287 $ 362,656 $ 260,531 $ 575,432 $ 102,092 $ 2,866,828 Special mention — 3,391 3,908 15,124 4,675 23,532 125 50,755 Substandard 493 5,350 7,565 27,645 22,567 54,201 1,306 119,127 Doubtful — — — — — 22 — 22 Total $ 480,127 $ 697,937 $ 408,760 $ 405,425 $ 287,773 $ 653,187 $ 103,523 $ 3,036,732 At December 31, 2020, and based on the most recent analysis performed, the risk category of loans by class of loans (excluding mortgage loans held for sale) was as follows: Commercial, December 31, 2020 Financial and Commercial Consumer Consumer ($ in thousands) Agriculture Real Estate Real Estate Installment Total Pass $ 563,772 $ 1,530,366 $ 834,920 $ 40,884 $ 2,969,942 Special Mention 2,143 64,012 1,889 20 68,064 Substandard 11,875 66,535 13,397 132 91,939 Doubtful 1,653 23 — — 1,676 Subtotal $ 579,443 $ 1,660,936 $ 850,206 $ 41,036 $ 3,131,621 Less: Unearned discount — 7,943 — — 7,943 LHFI, net of unearned discount $ 579,443 $ 1,652,993 $ 850,206 $ 41,036 $ 3,123,678 |
Schedule of allowance for credit losses | The following table presents the activity in the allowance for credit losses by portfolio segment for the three months and six months ended June 30, 2021 and the allowance for loan losses for the three months and six months ended June 30, 2020: Three Months Ended June 30, 2021 ($ in thousands) Commercial, Financial and Commercial Consumer Consumer Agriculture Real Estate Real Estate Installment Total Allowance for credit losses: Beginning balance $ 4,158 $ 17,578 $ 10,280 $ 647 $ 32,663 Provision for credit losses — — — — — Loans charged-off (490) (166) (124) (108) (888) Recoveries 242 161 183 96 682 Total ending allowance balance $ 3,910 $ 17,573 $ 10,339 $ 635 $ 32,457 Six Months Ended June 30, 2021 ($ in thousands) Commercial, Financial and Commercial Consumer Consumer Agriculture Real Estate Real Estate Installment Total Allowance for credit losses: Beginning balance $ 6,214 $ 24,319 $ 4,736 $ 551 $ 35,820 Impact of ASC 326 adoption on non-PCD loans (1,319) (4,607) 5,257 (49) (718) Impact of ASC 326 adoption on PCD loans 166 575 372 2 1,115 Provision for credit losses — — — — — Loans charged-off (1,476) (3,007) (263) (265) (5,011) Recoveries 325 293 237 396 1,251 Total ending allowance balance $ 3,910 $ 17,573 $ 10,339 $ 635 $ 32,457 Three Months Ended June 30, 2020 ($ in thousands) Commercial, Commercial Consumer Paycheck Financial and Real Real Consumer Protection Agriculture Estate Estate Installment Program Unallocated Total Allowance for loan losses: Beginning balance $ 4,466 $ 13,095 $ 2,840 $ 403 $ — $ — $ 20,804 Provision for loan losses 883 5,202 874 517 130 — 7,606 Loans charged-off (165) (63) (87) (554) — — (869) Recoveries 24 292 114 93 — — 523 Total ending allowance balance $ 5,208 $ 18,526 $ 3,741 $ 459 $ 130 $ — $ 28,064 Six Months Ended June 30, 2020 ($ in thousands) Commercial, Commercial Consumer Paycheck Financial and Real Real Consumer Protection Agriculture Estate Estate Installment Program Unallocated Total Allowance for loan losses: Beginning balance $ 3,043 $ 8,836 $ 1,694 $ 296 $ — $ 39 $ 13,908 Provision for loan losses 2,329 9,725 1,980 583 130 (39) 14,708 Loans charged-off (264) (396) (96) (613) — — (1,369) Recoveries 100 361 163 193 — — 817 Total ending allowance balance $ 5,208 $ 18,526 $ 3,741 $ 459 $ 130 $ — $ 28,064 The following table provides the ending balance in the Company’s LHFI and the ACL, broken down by portfolio segment as of June 30, 2021 ($ in thousands). June 30, 2021 Commercial, Financial and Commercial Consumer Consumer Agriculture Real Estate Real Estate Installment Total LHFI Individually evaluated $ 28 $ 2,986 $ 2,313 $ 2 $ 5,329 Collectively evaluated 511,489 1,650,104 831,576 38,234 3,031,403 Total $ 511,517 $ 1,653,090 $ 833,889 $ 38,236 $ 3,036,732 Allowance for Credit Losses Individually evaluated $ — $ 147 $ 4 $ 2 $ 153 Collectively evaluated 3,910 17,426 10,335 633 32,304 Total $ 3,910 $ 17,573 $ 10,339 $ 635 $ 32,457 The following table provides the ending balance in the Company’s LHFI and the allowance for loan losses, broken down by portfolio segment as of December 31, 2020 ($ in thousands). December 31, 2020 Commercial, Financial and Commercial Consumer Consumer Agriculture Real Estate Real Estate Installment Total LHFI Individually evaluated $ 2,241 $ 23,857 $ 1,248 $ 49 $ 27,395 Collectively evaluated 574,152 1,971,292 494,833 41,498 3,081,775 PCI Loans 244 9,056 5,185 23 14,508 Total $ 576,637 $ 2,004,205 $ 501,266 $ 41,570 $ 3,123,678 Allowance for Loan Losses Individually evaluated $ 1,235 $ 4,244 $ 176 $ 14 $ 5,669 Collectively evaluated 4,979 20,075 4,560 537 30,151 Total $ 6,214 $ 24,319 $ 4,736 $ 551 $ 35,820 |
SUMMARY OF ORGANIZATION - Addit
SUMMARY OF ORGANIZATION - Additional information (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 15, 2021 | May 21, 2021 | Feb. 25, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Organization [Line Items] | |||||||||||
Total assets | $ 5,509,733 | $ 5,509,733 | $ 5,152,760 | ||||||||
Loans, excluding Loans held for sale | 3,004,000 | ||||||||||
Deposits | 4,673,912 | 4,673,912 | 4,215,280 | ||||||||
Stockholders' equity | 660,052 | $ 643,949 | $ 627,795 | $ 555,926 | 660,052 | $ 627,795 | $ 644,815 | $ 543,658 | |||
Net income | $ 15,600 | $ 16,644 | $ 16,943 | $ 8,311 | $ 32,244 | $ 25,254 | |||||
Dividends on common stock, per share | $ 0.14 | $ 0.13 | |||||||||
Subsequent Event | |||||||||||
Organization [Line Items] | |||||||||||
Dividends on common stock, per share | $ 0.15 |
ACCOUNTING STANDARDS (Details)
ACCOUNTING STANDARDS (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | ||
Loans | |||||||||
Allowance for credit losses on loans | $ 32,457 | [1] | $ 32,663 | $ 35,820 | [1] | $ 28,064 | $ 20,804 | $ 13,908 | |
Liabilities: | |||||||||
Allowance for credit losses on OBSC exposures | 718 | [1] | $ 718 | 0 | |||||
Total allowance for credit losses | 35,820 | ||||||||
Commercial financial and agriculture | |||||||||
Loans | |||||||||
Allowance for credit losses on loans | 3,910 | 6,214 | |||||||
Commercial real estate | |||||||||
Loans | |||||||||
Allowance for credit losses on loans | 17,573 | 24,319 | |||||||
Consumer real estate | |||||||||
Loans | |||||||||
Allowance for credit losses on loans | 10,339 | 4,736 | |||||||
Consumer installment | |||||||||
Loans | |||||||||
Allowance for credit losses on loans | 635 | 551 | |||||||
ASC 326 | |||||||||
Loans | |||||||||
Allowance for credit losses on loans | $ 1,100 | ||||||||
Liabilities: | |||||||||
Allowance for credit losses on OBSC exposures | $ 718 | ||||||||
Transition Adjustment | ASC 326 | |||||||||
Loans | |||||||||
Allowance for credit losses on loans | $ 397 | ||||||||
Liabilities: | |||||||||
Allowance for credit losses on OBSC exposures | 718 | ||||||||
Total allowance for credit losses | 1,115 | ||||||||
Transition Adjustment | ASC 326 | Commercial financial and agriculture | |||||||||
Loans | |||||||||
Allowance for credit losses on loans | (1,153) | ||||||||
Transition Adjustment | ASC 326 | Commercial real estate | |||||||||
Loans | |||||||||
Allowance for credit losses on loans | (4,032) | ||||||||
Transition Adjustment | ASC 326 | Consumer real estate | |||||||||
Loans | |||||||||
Allowance for credit losses on loans | 5,629 | ||||||||
Transition Adjustment | ASC 326 | Consumer installment | |||||||||
Loans | |||||||||
Allowance for credit losses on loans | (47) | ||||||||
Reported under ASC 326 | ASC 326 | |||||||||
Loans | |||||||||
Allowance for credit losses on loans | 36,217 | ||||||||
Liabilities: | |||||||||
Allowance for credit losses on OBSC exposures | 718 | ||||||||
Total allowance for credit losses | 36,935 | ||||||||
Reported under ASC 326 | ASC 326 | Commercial financial and agriculture | |||||||||
Loans | |||||||||
Allowance for credit losses on loans | 5,061 | ||||||||
Reported under ASC 326 | ASC 326 | Commercial real estate | |||||||||
Loans | |||||||||
Allowance for credit losses on loans | 20,287 | ||||||||
Reported under ASC 326 | ASC 326 | Consumer real estate | |||||||||
Loans | |||||||||
Allowance for credit losses on loans | 10,365 | ||||||||
Reported under ASC 326 | ASC 326 | Consumer installment | |||||||||
Loans | |||||||||
Allowance for credit losses on loans | $ 504 | ||||||||
[1] | – Beginning January 1, 2021, allowance for credit losses is based on current expected credit loss methodology. Prior to January 1, 2021, allowance for loan loss was based on incurred loss methodology |
ACCOUNTING STANDARDS - Addition
ACCOUNTING STANDARDS - Additional information (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Allowance for credit losses on loans | $ 32,457 | [1] | $ 32,663 | $ 35,820 | [1] | $ 28,064 | $ 20,804 | $ 13,908 | |
Allowance for credit losses on OBSC exposures | 718 | [1] | $ 718 | 0 | |||||
Minimum loan balance to individual evaluation for impairment | 500 | ||||||||
Accrued interest receivable on available-for-sale debt securities | 6,100 | 5,700 | |||||||
ASC 326 | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Allowance for credit losses on loans | $ 1,100 | ||||||||
Allowance for credit losses on OBSC exposures | $ 718 | ||||||||
Transition Adjustment | ASC 326 | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Allowance for credit losses on loans | $ 397 | ||||||||
Allowance for credit losses on OBSC exposures | $ 718 | ||||||||
[1] | – Beginning January 1, 2021, allowance for credit losses is based on current expected credit loss methodology. Prior to January 1, 2021, allowance for loan loss was based on incurred loss methodology |
BUSINESS COMBINATIONS - Summary
BUSINESS COMBINATIONS - Summary of Acquired Identifiable Assets and Liabilities (Details) - USD ($) $ in Thousands | Apr. 03, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Liabilities and equity: | ||||
Bargain purchase gain | $ (7,023) | $ 0 | $ (7,023) | |
SWG | ||||
Purchase price: | ||||
Total purchase price | $ 47,858 | |||
Identifiable assets: | ||||
Cash and due from banks | 29,247 | |||
Investments | 89,737 | |||
Loans | 392,292 | |||
Core deposit intangible | 4,556 | |||
Personal and real property | 18,558 | |||
Bank owned life insurance | 6,963 | |||
Other assets | 3,402 | |||
Total assets | 544,755 | |||
Liabilities and equity: | ||||
Deposits | 476,099 | |||
Borrowed funds | 9,500 | |||
Other liabilities | 3,461 | |||
Total liabilities | 489,060 | |||
Net assets acquired | 55,695 | |||
Consideration paid | 47,858 | |||
Bargain purchase gain | (7,835) | |||
SWG | As Initially Reported | ||||
Purchase price: | ||||
Total purchase price | 47,859 | |||
Identifiable assets: | ||||
Cash and due from banks | 29,247 | |||
Investments | 89,737 | |||
Loans | 392,292 | |||
Core deposit intangible | 4,556 | |||
Personal and real property | 18,558 | |||
Bank owned life insurance | 6,963 | |||
Other assets | 2,589 | |||
Total assets | 543,942 | |||
Liabilities and equity: | ||||
Deposits | 476,099 | |||
Borrowed funds | 9,500 | |||
Other liabilities | 3,461 | |||
Total liabilities | 489,060 | |||
Net assets acquired | 54,882 | |||
Consideration paid | 47,859 | |||
Bargain purchase gain | (7,023) | |||
SWG | Measurement Period Adjustments | ||||
Purchase price: | ||||
Total purchase price | (1) | |||
Identifiable assets: | ||||
Cash and due from banks | 0 | |||
Investments | 0 | |||
Loans | 0 | |||
Core deposit intangible | 0 | |||
Personal and real property | 0 | |||
Bank owned life insurance | 0 | |||
Other assets | 813 | |||
Total assets | 813 | |||
Liabilities and equity: | ||||
Deposits | 0 | |||
Borrowed funds | 0 | |||
Other liabilities | 0 | |||
Total liabilities | 0 | |||
Net assets acquired | 813 | |||
Consideration paid | (1) | |||
Bargain purchase gain | $ 812 |
BUSINESS COMBINATIONS - Outstan
BUSINESS COMBINATIONS - Outstanding Principal Balance and Carrying Amount of Loans (Details) - SWG $ in Thousands | Apr. 03, 2020USD ($) |
Outstanding principal balance | $ 394,621 |
Carrying amount | $ 392,292 |
BUSINESS COMBINATIONS - Additio
BUSINESS COMBINATIONS - Additional Information (Details) - USD ($) $ in Thousands | Apr. 03, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
BUSINESS COMBINATIONS | ||||
Bargain purchase gain | $ (7,023) | $ 0 | $ (7,023) | |
SWG | ||||
BUSINESS COMBINATIONS | ||||
Business Combination, Consideration Transferred | $ 47,858 | |||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 2,546,967 | |||
Payments to acquire businesses, gross | $ 2 | |||
Bargain purchase gain | (7,835) | |||
Business Acquisition Purchase Price Allocation Loans Receivable | 394,600 | |||
Business Combination Recognized Assets Acquired and Liabilities Assumed, Discount on Loans Acquired | 2,300 | |||
Business combination, acquisition related costs | $ 2,100 | $ 2,300 | ||
SWG | Core Deposits [Member] | ||||
BUSINESS COMBINATIONS | ||||
Finite-lived Intangible Assets Acquired | $ 4,600 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years |
EARNINGS APPLICABLE TO COMMON_3
EARNINGS APPLICABLE TO COMMON SHAREHOLDERS - Earnings Available to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share Basic [Line Items] | ||||
Net income available to common stock holders, basic earnings per share | $ 15,600 | $ 16,943 | $ 32,244 | $ 25,254 |
Net income available to common stock holders, diluted earnings per share | $ 15,600 | $ 16,943 | $ 32,244 | $ 25,254 |
Effect of dilutive shares: | ||||
Weighted average number of shares outstanding, basic earnings per share | 21,018,772 | 21,341,913 | 21,013,930 | 20,080,014 |
Restricted stock grants | 188,288 | 95,267 | 182,147 | 125,453 |
Weighted average number of shares outstanding, diluted earnings per share | 21,207,060 | 21,437,180 | 21,196,077 | 20,205,467 |
Basic earnings per share | $ 0.74 | $ 0.79 | $ 1.53 | $ 1.26 |
Diluted earnings per share | $ 0.74 | $ 0.79 | $ 1.52 | $ 1.25 |
EARNINGS APPLICABLE TO COMMON_4
EARNINGS APPLICABLE TO COMMON SHAREHOLDERS - Additional Information (Details) - shares | 3 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | |
EARNINGS APPLICABLE TO COMMON SHAREHOLDERS | ||||
Shares of restricted stock granted | 3,000 | 84,578 | 3,750 | 60,680 |
FINANCIAL INSTRUMENTS WITH OF_3
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fixed Rate | ||
Financial instruments with off-balance-sheet risk | ||
Commitments to make loans | $ 86,584 | $ 97,738 |
Unused lines of credit | 178,224 | 157,006 |
Standby letters of credit | 2,848 | 4,182 |
Variable Rate | ||
Financial instruments with off-balance-sheet risk | ||
Commitments to make loans | 33,205 | 16,203 |
Unused lines of credit | 210,529 | 195,221 |
Standby letters of credit | $ 9,903 | $ 11,486 |
FINANCIAL INSTRUMENTS WITH OF_4
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK - Additional Information (Details) - OFF BALANCE SHEET RISK [Member] | 6 Months Ended |
Jun. 30, 2021 | |
Minimum [Member] | |
Concentration Risk [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 0.50% |
Debt Instrument, Term | 1 year |
Maximum [Member] | |
Concentration Risk [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 18.00% |
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 ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Balance at beginning of period | $ 718 | $ 0 | |
Credit loss expense related to OBSC exposures | 0 | 0 | |
Balance at end of period | [1] | 718 | 718 |
ASC 326 | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Balance at end of period | $ 718 | $ 718 | |
[1] | – Beginning January 1, 2021, allowance for credit losses is based on current expected credit loss methodology. Prior to January 1, 2021, allowance for loan loss was based on incurred loss methodology |
FAIR VALUE DISCLOSURES AND RE_3
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Additional Information (Details) | Jun. 30, 2021 |
Measurement Input, Discount Rate [Member] | |
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 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Assets: | ||||
Cash and cash equivalents | $ 762,486 | $ 562,554 | $ 539,125 | $ 168,864 |
US Treasury | 36,957 | 9,383 | ||
Obligations of U.S. government agencies and sponsored entities | 150,504 | 100,170 | ||
Municipal securities | 531,134 | 480,374 | ||
Mortgage-backed securities | 530,749 | 401,232 | ||
Corporate obligations | 31,417 | 31,023 | ||
Loans, net | 3,004,275 | 3,087,858 | ||
Net LHFI | 3,004,275 | 3,087,858 | ||
Accrued interest receivable | 24,026 | 26,344 | ||
Liabilities: | ||||
Noninterest- bearing deposits | 682,014 | 571,079 | ||
Interest-bearing deposits | 3,991,898 | 3,644,201 | ||
Subordinated debentures | 144,611 | 144,592 | ||
FHLB and other borrowings | 114,647 | |||
Accrued interest payable | 1,827 | 2,134 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Assets: | ||||
Cash and cash equivalents | 762,486 | 562,554 | ||
US Treasury | 36,957 | 9,383 | ||
Obligations of U.S. government agencies and sponsored entities | 0 | 0 | ||
Municipal securities | 0 | 0 | ||
Mortgage-backed securities | 0 | 0 | ||
Corporate obligations | 0 | 0 | ||
Loans, net | 0 | 0 | ||
Accrued interest receivable | 0 | 0 | ||
Liabilities: | ||||
Noninterest- bearing deposits | 0 | 0 | ||
Interest-bearing deposits | 0 | 0 | ||
Subordinated debentures | 0 | 0 | ||
FHLB and other borrowings | 0 | |||
Accrued interest payable | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) | ||||
Assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
US Treasury | 0 | 0 | ||
Obligations of U.S. government agencies and sponsored entities | 150,504 | 100,170 | ||
Municipal securities | 511,030 | 460,248 | ||
Mortgage-backed securities | 530,749 | 401,232 | ||
Corporate obligations | 31,199 | 30,788 | ||
Loans, net | 0 | 0 | ||
Accrued interest receivable | 6,107 | 5,690 | ||
Liabilities: | ||||
Noninterest- bearing deposits | 682,014 | 571,079 | ||
Interest-bearing deposits | 3,973,535 | 3,647,845 | ||
Subordinated debentures | 0 | 0 | ||
FHLB and other borrowings | 114,647 | |||
Accrued interest payable | 1,827 | 2,134 | ||
Significant Unobservable Inputs (Level 3) | ||||
Assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
US Treasury | 0 | 0 | ||
Obligations of U.S. government agencies and sponsored entities | 0 | 0 | ||
Municipal securities | 20,104 | 20,126 | ||
Mortgage-backed securities | 0 | 0 | ||
Corporate obligations | 218 | 235 | ||
Loans, net | 3,042,805 | 3,089,318 | ||
Accrued interest receivable | 17,919 | 20,654 | ||
Liabilities: | ||||
Noninterest- bearing deposits | 0 | 0 | ||
Interest-bearing deposits | 0 | 0 | ||
Subordinated debentures | 152,968 | 145,289 | ||
FHLB and other borrowings | 0 | |||
Accrued interest payable | 0 | 0 | ||
Estimated Fair Value | ||||
Assets: | ||||
Cash and cash equivalents | 762,486 | 562,554 | ||
US Treasury | 36,957 | 9,383 | ||
Obligations of U.S. government agencies and sponsored entities | 150,504 | 100,170 | ||
Municipal securities | 531,134 | 480,374 | ||
Mortgage-backed securities | 530,749 | 401,232 | ||
Corporate obligations | 31,417 | 31,023 | ||
Loans, net | 3,042,805 | 3,089,318 | ||
Accrued interest receivable | 24,026 | 26,344 | ||
Liabilities: | ||||
Noninterest- bearing deposits | 682,014 | 571,079 | ||
Interest-bearing deposits | 3,973,535 | 3,647,845 | ||
Subordinated debentures | 152,968 | 145,289 | ||
FHLB and other borrowings | 114,647 | |||
Accrued interest payable | $ 1,827 | $ 2,134 |
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 | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | $ 1,280,761 | $ 1,022,182 |
U.S Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 36,957 | 9,383 |
Obligations of U. S. Government Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 150,504 | 100,170 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 531,134 | 480,374 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 530,749 | 401,232 |
Corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 31,417 | 31,023 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 36,957 | 9,383 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 36,957 | 9,383 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of U. S. Government Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 1,223,482 | 992,438 |
Significant Other Observable Inputs (Level 2) | U.S Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Obligations of U. S. Government Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 150,504 | 100,170 |
Significant Other Observable Inputs (Level 2) | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 511,030 | 460,248 |
Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 530,749 | 401,232 |
Significant Other Observable Inputs (Level 2) | Corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 31,199 | 30,788 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 20,322 | 20,361 |
Significant Unobservable Inputs (Level 3) | U.S Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Obligations of U. S. Government Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 20,104 | 20,126 |
Significant Unobservable Inputs (Level 3) | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | $ 218 | $ 235 |
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 | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Bank-Issued Trust Preferred Securities | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Balance, January 1 | $ 235 | $ 408 |
Paydown | (55) | (273) |
Unrealized gain (loss) included in comprehensive income | 38 | 105 |
Balance at June 30 | 218 | 240 |
Municipal securities | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Balance, January 1 | 20,126 | 10,345 |
Purchases | 4,189 | 7,003 |
Maturities, calls and paydowns | (4,185) | (302) |
Transfers to Level 2 | (6,293) | |
Unrealized gain (loss) included in comprehensive income | (26) | 131 |
Balance at June 30 | $ 20,104 | $ 10,884 |
FAIR VALUE DISCLOSURES AND RE_7
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Quantitative Information About Recurring Level 3 Fair Value Measurements (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Municipal securities | ||
Quantitative Information About Recurring Fair Value Measurements [Line Items] | ||
Fair Value | $ 20,104 | $ 20,126 |
Valuation Technique | Discounted cash flow | Discounted cash flow |
Significant Unobservable Inputs | Discount Rate | Discount Rate |
Range of Inputs, Minimum | 0.50% | 0.50% |
Range of Inputs, Maximum | 2.00% | 2.45% |
Trust Preferred Securities [Member] | ||
Quantitative Information About Recurring Fair Value Measurements [Line Items] | ||
Fair Value | $ 218 | $ 235 |
Valuation Technique | Discounted cash flow | Discounted cash flow |
Significant Unobservable Inputs | Probability of default | Probability of default |
Range of Inputs, Minimum | 0.99% | 1.08% |
Range of Inputs, Maximum | 2.39% | 2.48% |
FAIR VALUE DISCLOSURES AND RE_8
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Fair Value of Assets Measured on Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | $ 5,176 | $ 15,107 |
Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 3,529 | 5,802 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Impaired 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 in Active Markets for Identical Assets (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) | Impaired 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) | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 5,176 | 15,107 |
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 | $ 3,529 | $ 5,802 |
SECURITIES - Additional Informa
SECURITIES - Additional Information (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021USD ($)security | Dec. 31, 2020USD ($)security | |
SECURITIES | ||
Financing Receivable, Recorded Investment, Current | $ 0 | |
Available Sale Of Securities Interest Receivables | 6,100 | $ 5,700 |
Carrying value of securities pledged to public deposits | $ 795,300 | $ 576,000 |
Number of securities in the portfolio that were in an unrealized loss position | security | 145 | 71 |
Provision for credit losses | $ 0 |
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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-sale Securities, Amortized Cost | $ 1,255,195 | $ 987,622 |
Available-for-sale Securities, Gross Unrealized Gains | 29,603 | 35,045 |
Available-for-sale Securities, Gross Unrealized Losses | 4,037 | 485 |
Available-for-sale securities, Fair Value | 1,280,761 | 1,022,182 |
U.S Treasury | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 36,806 | 9,063 |
Available-for-sale Securities, Gross Unrealized Gains | 205 | 320 |
Available-for-sale Securities, Gross Unrealized Losses | 54 | 0 |
Available-for-sale securities, Fair Value | 36,957 | 9,383 |
Obligations of U.S. government agencies and sponsored entities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 147,594 | 97,107 |
Available-for-sale Securities, Gross Unrealized Gains | 2,965 | 3,130 |
Available-for-sale Securities, Gross Unrealized Losses | 55 | 67 |
Available-for-sale securities, Fair Value | 150,504 | 100,170 |
Tax-exempt and taxable obligations of states and municipal subdivisions | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 519,573 | 464,348 |
Available-for-sale Securities, Gross Unrealized Gains | 13,757 | 16,326 |
Available-for-sale Securities, Gross Unrealized Losses | 2,196 | 300 |
Available-for-sale securities, Fair Value | 531,134 | 480,374 |
Mortgage-backed securities - residential | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 336,122 | 228,257 |
Available-for-sale Securities, Gross Unrealized Gains | 6,243 | 8,206 |
Available-for-sale Securities, Gross Unrealized Losses | 1,098 | 42 |
Available-for-sale securities, Fair Value | 341,267 | 236,421 |
Mortgage-backed securities - commercial | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 185,161 | 158,784 |
Available-for-sale Securities, Gross Unrealized Gains | 4,948 | 6,087 |
Available-for-sale Securities, Gross Unrealized Losses | 627 | 60 |
Available-for-sale securities, Fair Value | 189,482 | 164,811 |
Corporate obligations | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 29,939 | 30,063 |
Available-for-sale Securities, Gross Unrealized Gains | 1,485 | 976 |
Available-for-sale Securities, Gross Unrealized Losses | 7 | 16 |
Available-for-sale securities, Fair Value | $ 31,417 | $ 31,023 |
SECURITIES - Amortized Cost And
SECURITIES - Amortized Cost And Fair Value Of Debt Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Available-for-Sale, Amortized Cost | ||
Due less than one year | $ 45,101 | |
Due after one year through five years | 143,216 | |
Due after five years through ten years | 308,271 | |
Due greater than ten years | 237,324 | |
Mortgage-backed securities: residential | 336,122 | |
Mortgage-backed securities: commercial | 185,161 | |
Total | 1,255,195 | $ 987,622 |
Available-for-Sale, Fair Value | ||
Due less than one year | 45,446 | |
Due after one year through five years | 147,901 | |
Due after five years through ten years | 313,844 | |
Due greater than ten years | 242,821 | |
Mortgage-backed securities: residential | 341,267 | |
Mortgage-backed securities: commercial | 189,482 | |
Total | $ 1,280,761 | $ 1,022,182 |
SECURITIES - Summary of Availab
SECURITIES - Summary of Available For Sale Securities With Unrealized And Unrecognized Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair value, Less than 12 Months | $ 334,317 | $ 62,339 |
Fair Value, 12 Months or Longer | 7,778 | 3,973 |
Fair Value, Total | 342,095 | 66,312 |
Unrealized Losses, Less than 12 Months | 3,746 | 444 |
Unrealized Losses, 12 Months or Longer | 291 | 41 |
Unrealized Losses, Total | 4,037 | 485 |
U.S Treasury | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair value, Less than 12 Months | 10,888 | 0 |
Fair Value, 12 Months or Longer | 0 | 0 |
Fair Value, Total | 10,888 | 0 |
Unrealized Losses, Less than 12 Months | 54 | 0 |
Unrealized Losses, 12 Months or Longer | 0 | 0 |
Unrealized Losses, Total | 54 | 0 |
Obligations of U.S. government agencies and sponsored entities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair value, Less than 12 Months | 9,112 | 6,593 |
Fair Value, 12 Months or Longer | 522 | 326 |
Fair Value, Total | 9,634 | 6,919 |
Unrealized Losses, Less than 12 Months | 52 | 65 |
Unrealized Losses, 12 Months or Longer | 3 | 2 |
Unrealized Losses, Total | 55 | 67 |
Tax-exempt and taxable obligations of states and municipal subdivisions | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair value, Less than 12 Months | 129,571 | 10,193 |
Fair Value, 12 Months or Longer | 5,053 | 0 |
Fair Value, Total | 134,624 | 10,193 |
Unrealized Losses, Less than 12 Months | 1,938 | 300 |
Unrealized Losses, 12 Months or Longer | 258 | 0 |
Unrealized Losses, Total | 2,196 | 300 |
Mortgage-backed securities - residential | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair value, Less than 12 Months | 128,546 | 30,202 |
Fair Value, 12 Months or Longer | 502 | 11 |
Fair Value, Total | 129,048 | 30,213 |
Unrealized Losses, Less than 12 Months | 1,091 | 42 |
Unrealized Losses, 12 Months or Longer | 7 | 0 |
Unrealized Losses, Total | 1,098 | 42 |
Mortgage-backed securities - commercial | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair value, Less than 12 Months | 56,200 | 10,134 |
Fair Value, 12 Months or Longer | 1,660 | 3,596 |
Fair Value, Total | 57,860 | 13,730 |
Unrealized Losses, Less than 12 Months | 611 | 29 |
Unrealized Losses, 12 Months or Longer | 16 | 31 |
Unrealized Losses, Total | 627 | 60 |
Corporate obligations | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair value, Less than 12 Months | 0 | 5,217 |
Fair Value, 12 Months or Longer | 41 | 40 |
Fair Value, Total | 41 | 5,257 |
Unrealized Losses, Less than 12 Months | 0 | 8 |
Unrealized Losses, 12 Months or Longer | 7 | 8 |
Unrealized Losses, Total | $ 7 | $ 16 |
LOANS - Additional Information
LOANS - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment [Line Items] | ||||||
Accrued interest receivable for LHFI totaled with no related ACL | $ 17,900 | $ 17,900 | ||||
Interest income not recorded due to loans in non-accrual status | $ 758 | |||||
Non- Accrual | $ 0 | 0 | 0 | $ 0 | ||
TDR Period Increase (Decrease), Allowance for Loan and Lease Losses | 21 | $ 11 | 21 | 49 | ||
Allowance for Loan and Lease Losses Write-offs, Net | 0 | 0 | ||||
TDRs for increased allowance for credit losses for which there was a payment default within twelve months | 238 | 2,400 | ||||
Total loans, other financial institutions | 118,000 | 118,000 | ||||
Loans sold to other financial institutions. | 71,500 | 71,500 | ||||
Loan retained in other financial institutions. | 46,500 | 46,500 | ||||
PPP Loans | 239,700 | 157,800 | 157,800 | 239,700 | ||
Provision for Loan and Lease Losses | 0 | $ 7,606 | 0 | $ 14,708 | ||
Amortized cost, PCD loans | 11,800 | 11,800 | ||||
PCD loans, estimated ACL | 1,300 | 1,300 | ||||
Trouble debt restructuring | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
TDRs total | $ 27,500 | 21,500 | ||||
Additional amount committed on TDR loans | $ 0 | 0 | ||||
TDRs allowance for loan losses | $ 3,000 | $ 4,100 |
LOANS - Composition of Loan Por
LOANS - Composition of Loan Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | ||
Loans held for sale | ||||||||
Total LHFS | $ 6,000 | $ 21,432 | ||||||
Loans held for investment | ||||||||
Total loans | 3,036,732 | 3,123,678 | ||||||
Allowance for credit losses | (32,457) | [1] | $ (32,663) | (35,820) | [1] | $ (28,064) | $ (20,804) | $ (13,908) |
Net LHFI | 3,004,275 | 3,087,858 | ||||||
Mortgage loans held for sale | ||||||||
Loans held for sale | ||||||||
Total LHFS | 6,000 | 21,432 | ||||||
Commercial, financial and agricultural | ||||||||
Loans held for investment | ||||||||
Total loans | 511,517 | 579,443 | ||||||
Commercial real estate | ||||||||
Loans held for investment | ||||||||
Total loans | 1,653,090 | 1,652,993 | ||||||
Consumer real estate | ||||||||
Loans held for investment | ||||||||
Total loans | 833,889 | 850,206 | ||||||
Consumer installment | ||||||||
Loans held for investment | ||||||||
Total loans | $ 38,236 | $ 41,036 | ||||||
[1] | – Beginning January 1, 2021, allowance for credit losses is based on current expected credit loss methodology. Prior to January 1, 2021, allowance for loan loss was based on incurred loss methodology |
LOANS - Activity in Allowance f
LOANS - Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |||
Allowance for loan losses: | ||||||
Balance at beginning of period | $ 32,663 | $ 20,804 | $ 35,820 | [1] | $ 13,908 | |
Impact of ASC 326 adoption on non-PCD loans | (718) | |||||
Impact of ASC 326 adoption on PCD loans | 1,115 | |||||
Provision for credit losses | 0 | 7,606 | 0 | 14,708 | ||
Loans charged-off: | (888) | 869 | (5,011) | 1,369 | ||
Recoveries | 682 | 523 | 1,251 | 817 | ||
Balance at end of period | 32,457 | [1] | 28,064 | 32,457 | [1] | 28,064 |
Commercial financial and agriculture | ||||||
Allowance for loan losses: | ||||||
Balance at beginning of period | 4,158 | 4,466 | 6,214 | 3,043 | ||
Impact of ASC 326 adoption on non-PCD loans | (1,319) | |||||
Impact of ASC 326 adoption on PCD loans | 166 | |||||
Provision for credit losses | 883 | 2,329 | ||||
Loans charged-off: | (490) | 165 | (1,476) | 264 | ||
Recoveries | 242 | 24 | 325 | 100 | ||
Balance at end of period | 3,910 | 5,208 | 3,910 | 5,208 | ||
Commercial real estate | ||||||
Allowance for loan losses: | ||||||
Balance at beginning of period | 17,578 | 13,095 | 24,319 | 8,836 | ||
Impact of ASC 326 adoption on non-PCD loans | (4,607) | |||||
Impact of ASC 326 adoption on PCD loans | 575 | |||||
Provision for credit losses | 5,202 | 9,725 | ||||
Loans charged-off: | (166) | 63 | (3,007) | 396 | ||
Recoveries | 161 | 292 | 293 | 361 | ||
Balance at end of period | 17,573 | 18,526 | 17,573 | 18,526 | ||
Consumer real estate | ||||||
Allowance for loan losses: | ||||||
Balance at beginning of period | 10,280 | 2,840 | 4,736 | 1,694 | ||
Impact of ASC 326 adoption on non-PCD loans | 5,257 | |||||
Impact of ASC 326 adoption on PCD loans | 372 | |||||
Provision for credit losses | 874 | 1,980 | ||||
Loans charged-off: | (124) | 87 | (263) | 96 | ||
Recoveries | 183 | 114 | 237 | 163 | ||
Balance at end of period | 10,339 | 3,741 | 10,339 | 3,741 | ||
Consumer installment | ||||||
Allowance for loan losses: | ||||||
Balance at beginning of period | 647 | 403 | 551 | 296 | ||
Impact of ASC 326 adoption on non-PCD loans | (49) | |||||
Impact of ASC 326 adoption on PCD loans | 2 | |||||
Provision for credit losses | 517 | 583 | ||||
Loans charged-off: | (108) | 554 | (265) | 613 | ||
Recoveries | 96 | 93 | 396 | 193 | ||
Balance at end of period | $ 635 | 459 | $ 635 | 459 | ||
Paycheck Protection Program | ||||||
Allowance for loan losses: | ||||||
Balance at beginning of period | 0 | |||||
Provision for credit losses | 130 | 130 | ||||
Balance at end of period | 130 | 130 | ||||
Unallocated | ||||||
Allowance for loan losses: | ||||||
Balance at beginning of period | $ 0 | 39 | ||||
Provision for credit losses | $ (39) | |||||
[1] | – Beginning January 1, 2021, allowance for credit losses is based on current expected credit loss methodology. Prior to January 1, 2021, allowance for loan loss was based on incurred loss methodology |
LOANS - Loans and Allowance for
LOANS - Loans and Allowance for Loan Losses, Broken Down by Portfolio Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | ||
Loans | ||||||||
Individually evaluated | $ 5,329 | $ 27,395 | ||||||
Collectively evaluated | 3,031,403 | 3,081,775 | ||||||
PCI Loans | 14,508 | |||||||
Total | 3,036,732 | 3,123,678 | ||||||
Allowance for Loan Losses | ||||||||
Individually evaluated | 153 | 5,669 | ||||||
Collectively evaluated | 32,304 | 30,151 | ||||||
Total | 32,457 | [1] | $ 32,663 | 35,820 | [1] | $ 28,064 | $ 20,804 | $ 13,908 |
Commercial financial and agriculture | ||||||||
Loans | ||||||||
Individually evaluated | 28 | 2,241 | ||||||
Collectively evaluated | 511,489 | 574,152 | ||||||
PCI Loans | 244 | |||||||
Total | 511,517 | 576,637 | ||||||
Allowance for Loan Losses | ||||||||
Individually evaluated | 1,235 | |||||||
Collectively evaluated | 3,910 | 4,979 | ||||||
Total | 3,910 | 6,214 | ||||||
Commercial real estate | ||||||||
Loans | ||||||||
Individually evaluated | 2,986 | 23,857 | ||||||
Collectively evaluated | 1,650,104 | 1,971,292 | ||||||
PCI Loans | 9,056 | |||||||
Total | 1,653,090 | 2,004,205 | ||||||
Allowance for Loan Losses | ||||||||
Individually evaluated | 147 | 4,244 | ||||||
Collectively evaluated | 17,426 | 20,075 | ||||||
Total | 17,573 | 24,319 | ||||||
Consumer real estate | ||||||||
Loans | ||||||||
Individually evaluated | 2,313 | 1,248 | ||||||
Collectively evaluated | 831,576 | 494,833 | ||||||
PCI Loans | 5,185 | |||||||
Total | 833,889 | 501,266 | ||||||
Allowance for Loan Losses | ||||||||
Individually evaluated | 4 | 176 | ||||||
Collectively evaluated | 10,335 | 4,560 | ||||||
Total | 10,339 | 4,736 | ||||||
Consumer installment | ||||||||
Loans | ||||||||
Individually evaluated | 2 | 49 | ||||||
Collectively evaluated | 38,234 | 41,498 | ||||||
PCI Loans | 23 | |||||||
Total | 38,236 | 41,570 | ||||||
Allowance for Loan Losses | ||||||||
Individually evaluated | 2 | 14 | ||||||
Collectively evaluated | 633 | 537 | ||||||
Total | $ 635 | $ 551 | ||||||
[1] | – Beginning January 1, 2021, allowance for credit losses is based on current expected credit loss methodology. Prior to January 1, 2021, allowance for loan loss was based on incurred loss methodology |
LOANS - Additional Detail of Im
LOANS - Additional Detail of Impaired Loans Broken Out According to Class (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Financing Receivable, Impaired [Line Items] | |
Impaired loans with no a related allowance, Recorded Investment | $ 6,619 |
Impaired loans with no related allowance, Unpaid Balance | 6,869 |
Impaired loans with no related allowance, Average Recorded Investment YTD | 12,438 |
Impaired loans with no related allowance, Interest Income Recognized YTD | 52 |
Impaired loans with a related allowance, Recorded Investment | 20,776 |
Impaired loans with a related allowance, Unpaid Balance | 21,072 |
Impaired loans with a related allowance, Related Allowance | 5,669 |
Impaired loans with a related allowance, Average Recorded Investment YTD | 16,693 |
Impaired loans with a related allowance, Interest Income Recognized YTD | 98 |
Recorded Investment | 27,395 |
Unpaid Balance | 27,941 |
Related Allowance | 5,669 |
Average Recorded Investment YTD | 29,131 |
Interest Income Recognized YTD | 150 |
Commercial financial and agriculture | |
Financing Receivable, Impaired [Line Items] | |
Impaired loans with no related allowance, Average Recorded Investment YTD | 198 |
Impaired loans with a related allowance, Recorded Investment | 2,241 |
Impaired loans with a related allowance, Unpaid Balance | 2,254 |
Impaired loans with a related allowance, Related Allowance | 1,235 |
Impaired loans with a related allowance, Average Recorded Investment YTD | 2,186 |
Impaired loans with a related allowance, Interest Income Recognized YTD | 58 |
Recorded Investment | 2,241 |
Unpaid Balance | 2,254 |
Related Allowance | 1,235 |
Average Recorded Investment YTD | 2,384 |
Interest Income Recognized YTD | 58 |
Commercial real estate | |
Financing Receivable, Impaired [Line Items] | |
Impaired loans with no a related allowance, Recorded Investment | 5,884 |
Impaired loans with no related allowance, Unpaid Balance | 6,087 |
Impaired loans with no related allowance, Average Recorded Investment YTD | 11,433 |
Impaired loans with no related allowance, Interest Income Recognized YTD | 47 |
Impaired loans with a related allowance, Recorded Investment | 17,973 |
Impaired loans with a related allowance, Unpaid Balance | 18,248 |
Impaired loans with a related allowance, Related Allowance | 4,244 |
Impaired loans with a related allowance, Average Recorded Investment YTD | 13,687 |
Impaired loans with a related allowance, Interest Income Recognized YTD | 36 |
Recorded Investment | 23,857 |
Unpaid Balance | 24,335 |
Related Allowance | 4,244 |
Average Recorded Investment YTD | 25,120 |
Interest Income Recognized YTD | 83 |
Consumer real estate | |
Financing Receivable, Impaired [Line Items] | |
Impaired loans with no a related allowance, Recorded Investment | 712 |
Impaired loans with no related allowance, Unpaid Balance | 758 |
Impaired loans with no related allowance, Average Recorded Investment YTD | 790 |
Impaired loans with no related allowance, Interest Income Recognized YTD | 5 |
Impaired loans with a related allowance, Recorded Investment | 536 |
Impaired loans with a related allowance, Unpaid Balance | 544 |
Impaired loans with a related allowance, Related Allowance | 176 |
Impaired loans with a related allowance, Average Recorded Investment YTD | 734 |
Impaired loans with a related allowance, Interest Income Recognized YTD | 4 |
Recorded Investment | 1,248 |
Unpaid Balance | 1,302 |
Related Allowance | 176 |
Average Recorded Investment YTD | 1,524 |
Interest Income Recognized YTD | 9 |
Consumer installment | |
Financing Receivable, Impaired [Line Items] | |
Impaired loans with no a related allowance, Recorded Investment | 23 |
Impaired loans with no related allowance, Unpaid Balance | 24 |
Impaired loans with no related allowance, Average Recorded Investment YTD | 17 |
Impaired loans with a related allowance, Recorded Investment | 26 |
Impaired loans with a related allowance, Unpaid Balance | 26 |
Impaired loans with a related allowance, Related Allowance | 14 |
Impaired loans with a related allowance, Average Recorded Investment YTD | 86 |
Recorded Investment | 49 |
Unpaid Balance | 50 |
Related Allowance | 14 |
Average Recorded Investment YTD | $ 103 |
LOANS - Detail of Troubled Debt
LOANS - Detail of Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($)loan | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | |
Financing Receivable, Modifications [Line Items] | ||||
Outstanding Recorded Investment Pre-Modification | $ 291 | $ 230 | $ 291 | $ 980 |
Outstanding Recorded Investment Post-Modification | $ 281 | $ 230 | $ 281 | $ 974 |
Number of Loans | 3 | 2 | 3 | 5 |
Commercial financial and agriculture | ||||
Financing Receivable, Modifications [Line Items] | ||||
Outstanding Recorded Investment Pre-Modification | $ 35 | $ 47 | ||
Outstanding Recorded Investment Post-Modification | $ 35 | $ 46 | ||
Number of Loans | 1 | 2 | ||
Commercial real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Outstanding Recorded Investment Pre-Modification | $ 237 | $ 195 | $ 237 | $ 933 |
Outstanding Recorded Investment Post-Modification | $ 237 | $ 195 | $ 237 | $ 928 |
Number of Loans | 2 | 1 | 2 | 3 |
Consumer real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Outstanding Recorded Investment Pre-Modification | $ 54 | $ 54 | ||
Outstanding Recorded Investment Post-Modification | $ 44 | $ 44 | ||
Number of Loans | 1 | 1 |
LOANS - Modifications of Loans
LOANS - Modifications of Loans Performing (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current Loans | $ 0 | |
Recorded Investment | 3,036,732 | $ 3,123,678 |
Allowance for loan losses, Current Loans | 62 | 163 |
Allowance for loan losses, Past Due 30-89 | 29 | |
Allowance for loan losses, Non-Accrual | 2,927 | 3,936 |
Allowance for loan losses, Total | 2,989 | 4,128 |
TDRs [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current Loans | 5,934 | 6,201 |
Past Due 30-89 | 321 | |
Nonaccrual | 15,562 | 21,002 |
Recorded Investment | 21,496 | 27,524 |
Commercial financial and agriculture | TDRs [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current Loans | 41 | 59 |
Nonaccrual | 149 | 765 |
Recorded Investment | 190 | 824 |
Commercial real estate | TDRs [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current Loans | 3,502 | 4,560 |
Past Due 30-89 | 49 | |
Nonaccrual | 13,376 | 18,076 |
Recorded Investment | 16,878 | 22,685 |
Consumer real estate | TDRs [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current Loans | 2,371 | 1,559 |
Past Due 30-89 | 269 | |
Nonaccrual | 2,037 | 2,161 |
Recorded Investment | 4,408 | 3,989 |
Consumer installment | TDRs [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current Loans | 20 | 23 |
Past Due 30-89 | 3 | |
Recorded Investment | $ 20 | $ 26 |
LOANS - Summary of loans by mod
LOANS - Summary of loans by modified as troubled debt restructurings of payment default (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($)loan | |
Trouble debt restructuring | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of Loans | loan | 4 | 11 |
Recorded Investment | $ | $ 1,071 | $ 15,337 |
Commercial financial and agriculture | Trouble debt restructuring | Commercial financial and agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of Loans | loan | 2 | |
Recorded Investment | $ | $ 254 | |
Commercial real estate | Trouble debt restructuring | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of Loans | loan | 3 | 9 |
Recorded Investment | $ | $ 1,027 | $ 15,083 |
Consumer real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of Loans | loan | 1 | |
Recorded Investment | $ | $ 44 |
LOANS - Summary of Loans Classi
LOANS - Summary of Loans Classified as Past Due in Excess of Thirty Days or More and Loans Classified as Non-Accrual (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | $ 3,036,732 | $ 3,123,678 |
PPP Loans | 157,800 | 239,700 |
Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 5,720 | 8,931 |
Past Due 90 Days Or More and Still Accruing | 5,834 | 2,692 |
Non- Accrual | 20,098 | 24,208 |
PCD | 7,527 | |
PCI | 9,566 | |
Total Past Due and Non- Accrual and PCD | 39,179 | 45,397 |
Total Loans | 3,036,732 | 3,123,678 |
Nonaccrual with No ACL | 3,702 | |
Commercial financial and agriculture | Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 1,007 | |
Past Due 90 Days Or More and Still Accruing | 244 | |
Non- Accrual | 2,197 | |
PCI | 221 | |
Total Past Due and Non- Accrual and PCD | 3,669 | |
Total Loans | 579,443 | |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 1,653,090 | 1,652,993 |
Commercial real estate | Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 2,116 | |
Past Due 90 Days Or More and Still Accruing | 1,553 | |
Non- Accrual | 19,499 | |
PCI | 3,388 | |
Total Past Due and Non- Accrual and PCD | 26,556 | |
Total Loans | 1,652,993 | |
Consumer real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 833,889 | 850,206 |
Consumer real estate | Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 5,389 | |
Past Due 90 Days Or More and Still Accruing | 895 | |
Non- Accrual | 2,480 | |
PCI | 5,954 | |
Total Past Due and Non- Accrual and PCD | 14,718 | |
Total Loans | 850,206 | |
Consumer installment | Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 419 | |
Non- Accrual | 32 | |
PCI | 3 | |
Total Past Due and Non- Accrual and PCD | 454 | |
Total Loans | $ 41,036 | |
Commercial financial and agriculture | Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 252 | |
Past Due 90 Days Or More and Still Accruing | 10 | |
Non- Accrual | 276 | |
PCD | 28 | |
Total Past Due and Non- Accrual and PCD | 566 | |
Total Loans | 511,517 | |
Nonaccrual with No ACL | 28 | |
Commercial real estate | Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 2,318 | |
Past Due 90 Days Or More and Still Accruing | 4,913 | |
Non- Accrual | 16,601 | |
PCD | 2,470 | |
Total Past Due and Non- Accrual and PCD | 26,302 | |
Total Loans | 1,653,090 | |
Nonaccrual with No ACL | 1,841 | |
Consumer real estate | Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 3,020 | |
Past Due 90 Days Or More and Still Accruing | 911 | |
Non- Accrual | 3,185 | |
PCD | 5,027 | |
Total Past Due and Non- Accrual and PCD | 12,143 | |
Total Loans | 833,889 | |
Nonaccrual with No ACL | 1,833 | |
Consumer installment | Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 130 | |
Non- Accrual | 36 | |
PCD | 2 | |
Total Past Due and Non- Accrual and PCD | 168 | |
Total Loans | $ 38,236 |
LOANS - Collateral Dependent Lo
LOANS - Collateral Dependent Loans (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Financing Receivable, Recorded Investment [Line Items] | |
Amortized cost basis, collateral dependent loans | $ 5,329 |
Real Property | |
Financing Receivable, Recorded Investment [Line Items] | |
Amortized cost basis, collateral dependent loans | 5,299 |
Equipment | |
Financing Receivable, Recorded Investment [Line Items] | |
Amortized cost basis, collateral dependent loans | 28 |
Miscellaneous | |
Financing Receivable, Recorded Investment [Line Items] | |
Amortized cost basis, collateral dependent loans | 2 |
Commercial financial and agriculture | |
Financing Receivable, Recorded Investment [Line Items] | |
Amortized cost basis, collateral dependent loans | 28 |
Commercial financial and agriculture | Equipment | |
Financing Receivable, Recorded Investment [Line Items] | |
Amortized cost basis, collateral dependent loans | 28 |
Commercial real estate | |
Financing Receivable, Recorded Investment [Line Items] | |
Amortized cost basis, collateral dependent loans | 2,986 |
Commercial real estate | Real Property | |
Financing Receivable, Recorded Investment [Line Items] | |
Amortized cost basis, collateral dependent loans | 2,986 |
Consumer real estate | |
Financing Receivable, Recorded Investment [Line Items] | |
Amortized cost basis, collateral dependent loans | 2,313 |
Consumer real estate | Real Property | |
Financing Receivable, Recorded Investment [Line Items] | |
Amortized cost basis, collateral dependent loans | 2,313 |
Consumer installment | |
Financing Receivable, Recorded Investment [Line Items] | |
Amortized cost basis, collateral dependent loans | 2 |
Consumer installment | Miscellaneous | |
Financing Receivable, Recorded Investment [Line Items] | |
Amortized cost basis, collateral dependent loans | $ 2 |
LOANS - Amortized cost basis of
LOANS - Amortized cost basis of loans by credit quality indicator and class of loans based on the most recent analysis performed (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | $ 480,127 | |
2020 | 697,937 | |
2019 | 408,760 | |
2018 | 405,425 | |
2017 | 287,773 | |
Prior | 653,187 | |
Revolving Loans | 103,523 | |
Total | 3,036,732 | $ 3,123,678 |
Commercial financial and agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 168,707 | |
2020 | 119,941 | |
2019 | 65,756 | |
2018 | 64,285 | |
2017 | 31,517 | |
Prior | 61,152 | |
Revolving Loans | 159 | |
Total | 511,517 | 579,443 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 184,877 | |
2020 | 356,039 | |
2019 | 249,462 | |
2018 | 252,877 | |
2017 | 185,959 | |
Prior | 423,876 | |
Total | 1,653,090 | 1,652,993 |
Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 117,514 | |
2020 | 209,788 | |
2019 | 86,725 | |
2018 | 85,571 | |
2017 | 68,745 | |
Prior | 166,036 | |
Revolving Loans | 99,510 | |
Total | 833,889 | 850,206 |
Consumer installment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 9,029 | |
2020 | 12,169 | |
2019 | 6,817 | |
2018 | 2,692 | |
2017 | 1,552 | |
Prior | 2,123 | |
Revolving Loans | 3,854 | |
Total | 38,236 | $ 41,036 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 479,634 | |
2020 | 689,196 | |
2019 | 397,287 | |
2018 | 362,656 | |
2017 | 260,531 | |
Prior | 575,432 | |
Revolving Loans | 102,092 | |
Total | 2,866,828 | |
Pass [Member] | Commercial financial and agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 168,707 | |
2020 | 119,630 | |
2019 | 62,509 | |
2018 | 57,083 | |
2017 | 30,665 | |
Prior | 52,296 | |
Revolving Loans | 149 | |
Total | 491,039 | |
Pass [Member] | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 184,689 | |
2020 | 348,150 | |
2019 | 243,816 | |
2018 | 221,733 | |
2017 | 161,793 | |
Prior | 372,118 | |
Total | 1,532,299 | |
Pass [Member] | Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 117,209 | |
2020 | 209,247 | |
2019 | 84,167 | |
2018 | 81,170 | |
2017 | 66,537 | |
Prior | 148,924 | |
Revolving Loans | 98,114 | |
Total | 805,368 | |
Pass [Member] | Consumer installment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 9,029 | |
2020 | 12,169 | |
2019 | 6,795 | |
2018 | 2,670 | |
2017 | 1,536 | |
Prior | 2,094 | |
Revolving Loans | 3,829 | |
Total | 38,122 | |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 3,391 | |
2019 | 3,908 | |
2018 | 15,124 | |
2017 | 4,675 | |
Prior | 23,532 | |
Revolving Loans | 125 | |
Total | 50,755 | |
Special Mention [Member] | Commercial financial and agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 258 | |
2019 | 1,385 | |
2018 | 424 | |
2017 | 340 | |
Prior | 215 | |
Total | 2,622 | |
Special Mention [Member] | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 3,133 | |
2019 | 2,181 | |
2018 | 13,561 | |
2017 | 4,090 | |
Prior | 21,110 | |
Total | 44,075 | |
Special Mention [Member] | Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2019 | 342 | |
2018 | 1,129 | |
2017 | 242 | |
Prior | 2,206 | |
Revolving Loans | 125 | |
Total | 4,044 | |
Special Mention [Member] | Consumer installment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2018 | 10 | |
2017 | 3 | |
Prior | 1 | |
Total | 14 | |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 493 | |
2020 | 5,350 | |
2019 | 7,565 | |
2018 | 27,645 | |
2017 | 22,567 | |
Prior | 54,201 | |
Revolving Loans | 1,306 | |
Total | 119,127 | |
Substandard [Member] | Commercial financial and agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 53 | |
2019 | 1,862 | |
2018 | 6,778 | |
2017 | 512 | |
Prior | 8,641 | |
Revolving Loans | 10 | |
Total | 17,856 | |
Substandard [Member] | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 188 | |
2020 | 4,756 | |
2019 | 3,465 | |
2018 | 17,583 | |
2017 | 20,076 | |
Prior | 30,648 | |
Total | 76,716 | |
Substandard [Member] | Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 305 | |
2020 | 541 | |
2019 | 2,216 | |
2018 | 3,272 | |
2017 | 1,966 | |
Prior | 14,884 | |
Revolving Loans | 1,271 | |
Total | 24,455 | |
Substandard [Member] | Consumer installment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2019 | 22 | |
2018 | 12 | |
2017 | 13 | |
Prior | 28 | |
Revolving Loans | 25 | |
Total | 100 | |
Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Prior | 22 | |
Total | 22 | |
Doubtful [Member] | Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Prior | 22 | |
Total | $ 22 |
LOANS - Risk Category of Loans
LOANS - Risk Category of Loans by Class of Loans (Excluding Mortgage Loans Held for Sale) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 3,131,621 | |
Less: Unearned discount | 7,943 | |
Loans held for investment | $ 3,036,732 | 3,123,678 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,969,942 | |
Loans held for investment | 2,866,828 | |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 68,064 | |
Loans held for investment | 50,755 | |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 91,939 | |
Loans held for investment | 119,127 | |
Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,676 | |
Loans held for investment | 22 | |
Commercial financial and agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 579,443 | |
Loans held for investment | 511,517 | 579,443 |
Commercial financial and agriculture | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 563,772 | |
Loans held for investment | 491,039 | |
Commercial financial and agriculture | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,143 | |
Loans held for investment | 2,622 | |
Commercial financial and agriculture | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 11,875 | |
Loans held for investment | 17,856 | |
Commercial financial and agriculture | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,653 | |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,660,936 | |
Less: Unearned discount | 7,943 | |
Loans held for investment | 1,653,090 | 1,652,993 |
Commercial real estate | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,530,366 | |
Loans held for investment | 1,532,299 | |
Commercial real estate | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 64,012 | |
Loans held for investment | 44,075 | |
Commercial real estate | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 66,535 | |
Loans held for investment | 76,716 | |
Commercial real estate | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 23 | |
Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 850,206 | |
Loans held for investment | 833,889 | 850,206 |
Consumer real estate | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 834,920 | |
Loans held for investment | 805,368 | |
Consumer real estate | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,889 | |
Loans held for investment | 4,044 | |
Consumer real estate | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 13,397 | |
Loans held for investment | 24,455 | |
Consumer real estate | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 22 | |
Consumer installment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 41,036 | |
Loans held for investment | 38,236 | 41,036 |
Consumer installment | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 40,884 | |
Loans held for investment | 38,122 | |
Consumer installment | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 20 | |
Loans held for investment | 14 | |
Consumer installment | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 132 | |
Loans held for investment | $ 100 |
COVID-19 UPDATE (Details)
COVID-19 UPDATE (Details) $ in Millions | Jun. 30, 2021USD ($) |
COVID-19 UPDATE | |
Aggregate outstanding exposure in segments covid-19 | $ 437.8 |
Aggregate outstanding exposure in loan modifications covid-19 | $ 710.7 |
SUBSEQUENT EVENTS - Additional
SUBSEQUENT EVENTS - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
SUBSEQUENT EVENTS | ||
Right of use assets with lease liability | $ 5,164 | $ 5,969 |
BHCRE I, LLC, | ||
SUBSEQUENT EVENTS | ||
Purchase Price | 5,300 | |
Right of use assets with lease liability | $ 623 |