Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 03, 2022 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
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 | Large 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 | 20,486,830 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 125,709 | $ 115,232 |
Interest-bearing deposits with banks | 676,904 | 804,481 |
Total cash and cash equivalents | 802,613 | 919,713 |
Securities available-for-sale, at fair value (amortized cost: $1,683,844 2022; $1,741,153; allowance for credit losses: $0) | 1,591,677 | 1,751,832 |
Securities held to maturity, net of allowance for credit losses of $0 (fair value: $358,395 - 2022; $0 - 2021) | 372,062 | 0 |
Other securities | 22,226 | 22,226 |
Total securities | 1,985,965 | 1,774,058 |
Loans held for sale | 8,213 | 7,678 |
Loans held for investment | 2,970,246 | 2,959,553 |
Allowance for credit losses | (31,620) | (30,742) |
Net loans held for investment | 2,938,626 | 2,928,811 |
Interest receivable | 23,234 | 23,256 |
Premises and equipment | 125,756 | 125,959 |
Operating lease right-of-use assets | 3,779 | 4,095 |
Finance lease right-of-use assets | 2,278 | 2,394 |
Cash surrender value of bank-owned life insurance | 84,357 | 87,420 |
Goodwill | 156,659 | 156,663 |
Other real estate owned | 2,835 | 2,565 |
Other assets | 61,780 | 44,802 |
Total assets | 6,196,095 | 6,077,414 |
Deposits: | ||
Noninterest-bearing | 810,723 | 756,118 |
Interest-bearing | 4,627,015 | 4,470,666 |
Total deposits | 5,437,738 | 5,226,784 |
Interest payable | 1,306 | 1,711 |
Subordinated debentures | 144,801 | 144,726 |
Operating lease liabilities | 3,876 | 4,192 |
Finance lease liabilities | 2,050 | 2,094 |
Allowance for credit losses on off-balance sheet credit exposures | 1,070 | 1,070 |
Other liabilities | 14,814 | 20,665 |
Total liabilities | 5,605,655 | 5,401,242 |
Shareholders' equity: | ||
Common stock, par value $1 per share, 40,000,000 shares authorized; 21,734,437 shares issued at March 31, 2022, and 21,668,644 shares issued at December 31, 2021, respectively | 21,734 | 21,669 |
Additional paid-in capital | 459,075 | 459,228 |
Retained earnings | 219,589 | 206,228 |
Accumulated other comprehensive (loss) income | (68,847) | 7,978 |
Treasury stock, at cost, 1,249,607 shares at March 31, 2022 and 649,607 shares at December 31, 2021 | (41,111) | (18,931) |
Total shareholders' equity | 590,440 | 676,172 |
Total liabilities and shareholders' equity | $ 6,196,095 | $ 6,077,414 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
CONSOLIDATED BALANCE SHEETS | ||
Available-for-sale Securities, Amortized Cost | $ 1,683,844 | $ 1,741,153 |
Securities available-for-sale, allowance for credit losses | 0 | 0 |
Securities held to maturity, allowance for credit losses | 0 | 0 |
Securities held to maturity, fair value | $ 358,395 | $ 0 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 21,734,437 | 21,668,644 |
Treasury stock, shares | 1,249,607 | 649,607 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest and dividend income: | ||
Interest and fees on loans | $ 34,154 | $ 39,613 |
Interest and dividends on securities: | ||
Taxable interest and dividends | 6,152 | 3,591 |
Tax exempt interest | 2,422 | 1,935 |
Interest on federal funds sold and interest-bearing deposits in other banks | 13 | 48 |
Total interest income | 42,741 | 45,187 |
Interest expense: | ||
Interest on deposits | 2,283 | 3,849 |
Interest on borrowed funds | 1,819 | 2,109 |
Total interest expense | 4,102 | 5,958 |
Net interest income | 38,639 | 39,229 |
Provision for credit losses, LHFI | 0 | 0 |
Provision for credit losses, OBSC exposures | 0 | 0 |
Net interest income after provision for credit losses | 38,639 | 39,229 |
Non-interest income: | ||
Service charges on deposit accounts | 2,040 | 1,761 |
(Loss) gain on securities | (3) | 20 |
Government awards/grants | 702 | 0 |
BOLI death proceeds | 1,630 | 0 |
Gain (loss) on sale of premises and equipment | 2 | (4) |
Other | 6,786 | 7,695 |
Total non-interest income | 11,157 | 9,472 |
Non-interest expense: | ||
Salaries and employee benefits | 16,799 | 16,054 |
Occupancy and equipment | 3,876 | 3,879 |
Acquisition expense/charter conversion | 408 | 0 |
Other | 7,507 | 7,331 |
Total non-interest expense | 28,590 | 27,264 |
Income before income taxes | 21,206 | 21,437 |
Income tax expense | 4,377 | 4,793 |
Net income | $ 16,829 | $ 16,644 |
Earnings per share: | ||
Basic earnings per share | $ 0.81 | $ 0.79 |
Diluted earnings per share | $ 0.81 | $ 0.79 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 16,829 | $ 16,644 |
Unrealized gains/losses on securities: | ||
Unrealized holding losses arising during the period on available-for-sale securities | (102,849) | (12,852) |
Reclassification adjustment for losses (gains) included in net income | 3 | (20) |
Unrealized holding losses arising during the period on available-for-sale securities | (102,846) | (12,872) |
Income tax benefit | 26,021 | 3,257 |
Other comprehensive loss | (76,825) | (9,615) |
Comprehensive (loss) income | $ (59,996) | $ 7,029 |
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 (Loss) | Treasury Stock | Total |
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 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) | |||||
Repurchase of restricted stock for payment of taxes | $ (15) | (426) | (441) | |||
Repurchase of restricted stock for payment of taxes (in shares) | (14,720) | |||||
Compensation expense | 440 | 440 | ||||
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, 2021 | $ 21,669 | 459,228 | 206,228 | 7,978 | $ (18,931) | 676,172 |
Beginning Balance (in shares) at Dec. 31, 2021 | 21,668,644 | (649,607) | ||||
Net income | 16,829 | 16,829 | ||||
Common stock repurchased | $ (22,180) | (22,180) | ||||
Common stock repurchased (in shares) | (600,000) | |||||
Other comprehensive loss | (76,825) | (76,825) | ||||
Dividends on common stock | (3,468) | (3,468) | ||||
Issuance of restricted stock grants | $ 82 | (82) | ||||
Issuance of restricted stock grants (in shares) | 82,123 | |||||
Restricted stock grants forfeited | $ (1) | 1 | ||||
Restricted stock grants forfeited (in shares) | (1,000) | |||||
Repurchase of restricted stock for payment of taxes | $ (16) | (538) | (554) | |||
Repurchase of restricted stock for payment of taxes (in shares) | (15,330) | |||||
Compensation expense | 466 | 466 | ||||
Ending Balance at Mar. 31, 2022 | $ 21,734 | $ 459,075 | $ 219,589 | $ (68,847) | $ (41,111) | $ 590,440 |
Ending Balance (in shares) at Mar. 31, 2022 | 21,734,437 | (1,249,607) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | ||
Dividends on common stock, per Share | $ 0.17 | $ 0.13 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 16,829 | $ 16,644 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and accretion | 3,569 | 3,318 |
Gain on sale or write down of ORE | (46) | (75) |
Securities loss (gain) | 3 | (20) |
(Gain) loss on disposal of premises and equipment | (2) | 4 |
Restricted stock expense | 466 | 440 |
Increase in cash value of life insurance | (574) | (482) |
Federal Home Loan Bank stock dividends | 0 | (14) |
Residential loans originated and held for sale | (38,783) | (79,365) |
Proceeds from sale of residential loans held for sale | 38,248 | 85,678 |
Changes in: | ||
Interest receivable | 22 | 1,658 |
Interest payable | (405) | (532) |
Operating lease liability | (316) | (398) |
Other, net | 4,093 | 5,351 |
Net cash provided by operating activities | 23,104 | 32,207 |
Cash flows from investing activities: | ||
Maturities, calls and paydowns of available-for-sale and held-to-maturity securities | 56,465 | 53,570 |
Purchases of available-for-sale and held-to-maturity securities | (372,629) | (180,948) |
Redemptions of other securities, net | 0 | 5,352 |
Net (increase) decrease in loans | (9,510) | 65,731 |
Net changes in premises and equipment | (1,183) | (283) |
Proceeds from sale of other real estate owned | 271 | 831 |
Bank-owned life insurance - death proceeds | 1,630 | 0 |
Purchase of bank-owned life insurance | 0 | (12,248) |
Net cash used in investing activities | (324,956) | (67,995) |
Cash flows from financing activities: | ||
Increase in deposits | 210,953 | 405,078 |
Net decrease in borrowed funds | 0 | (110,181) |
Principal payments on finance lease liabilities | (44) | (47) |
Dividends paid on common stock | (3,423) | (2,688) |
Cash paid to repurchase common stock | (22,180) | (5,171) |
Payment of subordinated debt issuance costs | 0 | (59) |
Repurchase of restricted stock for payment of taxes | (554) | (441) |
Net cash provided by financing activities | 184,752 | 286,491 |
Net change in cash and cash equivalents | (117,100) | 250,703 |
Beginning cash and cash equivalents | 919,713 | 562,554 |
Ending cash and cash equivalents | 802,613 | 813,257 |
Supplemental disclosures: | ||
Loans transferred to other real estate | 493 | 723 |
Issuance of restricted stock grants | 82 | 85 |
Dividends on restricted stock grants | $ 45 | $ 35 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2022 | |
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 three months ended March 31, 2022, are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. 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, 2021. |
SUMMARY OF ORGANIZATION
SUMMARY OF ORGANIZATION | 3 Months Ended |
Mar. 31, 2022 | |
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 Bank (the “Bank” or “The First”). On January 15, 2022, the Bank, then named The First, A National Banking Association, converted from a national banking association to a Mississippi state-chartered bank and changed its name to The First Bank. The First Bank is a member of the Federal Reserve System through the Federal Reserve Bank of Atlanta. The charter conversion and name change are expected to have only a minimal impact on the Bank’s clients, and deposits will continue to be insured by the Federal Deposit Insurance Corporation up to the applicable limits. At March 31, 2022, the Company had approximately $6.196 billion in assets, $2.939 billion in net loans held for investment (“LHFI”), $5.438 billion in deposits, and $590.4 million in shareholders' equity. For the three months ended March 31, 2022, the Company reported net income of $16.8 million. On February 25, 2022, the Company paid a cash dividend in the amount of $0.17 per share to shareholders of record as of the close of business on February 10, 2022. |
ACCOUNTING STANDARDS
ACCOUNTING STANDARDS | 3 Months Ended |
Mar. 31, 2022 | |
ACCOUNTING STANDARDS | |
ACCOUNTING STANDARDS | NOTE 3 – ACCOUNTING STANDARDS Effect of Recently Adopted Accounting Standards In November 2021, FASB issued Accounting Standard Update (“ASU”) No. 2021-10, Government Assistance (Topic 832): “Disclosures by Business Entities about Government Assistance.” New Accounting Standards That Have Not Yet Been Adopted In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (ASC 848): “Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” In October 2021, FASB issued ASU No. 2021-08, Business Combination (Topic 805): “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” In March 2022, FASB issued ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 3 Months Ended |
Mar. 31, 2022 | |
BUSINESS COMBINATIONS | |
BUSINESS COMBINATIONS | NOTE 4 – BUSINESS COMBINATIONS Acquisitions Cadence Bank Branches On December 3, 2021, The First completed its acquisition of seven Cadence Bank, N.A. (“Cadence”) branches in Northeast Mississippi (the “Cadence Branches”). In connection with the acquisition of the Cadence Branches, The First assumed $410.2 million in deposits, acquired $40.3 million in loans at fair value, acquired certain assets associated with the Cadence Branches at their book value, and paid a deposit premium of $1.0 million to Cadence. As a result of the acquisition, the Company will have an opportunity to increase its deposit base and reduce transaction costs. The Company also expects to reduce costs through economies of scale. In connection with the acquisition of the Cadence Branches, the Company recorded a $1.3 million bargain purchase gain and $2.9 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. 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 also incurred $370 thousand of provision for credit losses on credit marks from the loans acquired. Expenses associated with the branch acquisition of the Cadence Branches were $230 thousand for the three months ended March 31, 2022. These costs included charges associated with legal and consulting expenses, which have been expensed as incurred. The assets acquired and liabilities assumed and consideration paid in the acquisition of the Cadence Branches were recorded at their estimated fair values based on management’s best estimates using information available at the date of the acquisition and are subject to adjustment for up to one year after the closing date of the acquisition. While the fair values are not expected to be materially different from the estimates, accounting guidance provides that an acquirer must recognize adjustments to provisional amounts that are identified during the measurement period, which will run through December 3, 2022 in respect of the Cadence Branches, in the measurement period in which the adjustment amounts are determined. The acquirer must record in the financial statements, the effect on earnings of changes in depreciation, amortization or other income effects, if any, as a result of changes to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The items most susceptible to adjustment are the credit fair value adjustments on loans, core deposit intangible and the deferred income tax assets resulting from the acquisition. The following table summarizes the provisional fair values of the assets acquired and liabilities assumed and the goodwill (bargain purchase gain) generated from the transaction ($ in thousands): Purchase price: Cash $ 1,000 Total purchase price 1,000 Identifiable assets: Cash $ 359,916 Loans 40,262 Core deposit intangible 2,890 Personal and real property 9,675 Other assets 135 Total assets 412,878 Liabilities and equity: Deposits 410,171 Other liabilities 407 Total liabilities 410,578 Net assets acquired 2,300 Bargain purchase gain $ (1,300) 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 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 $0 for the three months ended March 31, 2022. These costs included system conversion and integrating operations charges and legal and consulting expenses, which have been expensed as incurred. The outstanding principal balance and the carrying amount of these loans included in the consolidated balance sheet at December 31, 2020, are as follows ($ in thousands): December 31, 2020 Outstanding principal balance $ 297,528 Carrying amount 295,772 Supplemental Pro Forma Information The following table presents certain supplemental pro forma information, for illustrative purposes only, for the three months ended March 31, 2022 and 2021 as if the SWG and Cadence Branches acquisitions had occurred on January 1, 2021. The pro forma financial information is not necessarily indicative of the results of operations had the acquisitions been effective as of this date. ($in thousands) Pro-Forma Pro-Forma Three months ended Three months ended March 31, 2022 March 31, 2021 (unaudited) (unaudited) Net interest income $ 38,639 $ 39,229 Non-interest income 11,157 9,472 Total revenue 49,796 48,701 Income before income taxes 21,461 21,437 Supplemental pro-forma earnings were adjusted to exclude acquisition costs incurred. The Company’s operating results for the three months ended March 31, 2022, include the operating results of the acquired assets and assumed liabilities of the Cadence Branches subsequent to the acquisition date. Due to the timing of the data conversion and the integration of operations of the branches onto the Company’s existing operations, historical reporting of the acquired branches is impracticable, and therefore, disclosure of the amounts of revenue and expenses attributable to the acquired branches since the acquisition date are not available. |
EARNINGS APPLICABLE TO COMMON S
EARNINGS APPLICABLE TO COMMON SHAREHOLDERS | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 March 31, 2021 Net Income Shares Per Net Income Shares Per (Numerator) (Denominator) Share Data (Numerator) (Denominator) Share Data Basic earnings per share $ 16,829 20,697,946 $ 0.81 $ 16,644 21,009,088 $ 0.79 Effect of dilutive shares: Restricted stock grants 149,051 191,470 Diluted earnings per share $ 16,829 20,846,997 $ 0.81 $ 16,644 21,200,558 $ 0.79 The Company granted 82,123 shares and 84,578 shares of restricted stock in the first quarter of 2022 and 2021, respectively. |
COMPREHENSIVE INCOME
COMPREHENSIVE INCOME | 3 Months Ended |
Mar. 31, 2022 | |
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 | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022, and December 31, 2021 these financial instruments consisted of the following: ($ in thousands) March 31, 2022 December 31, 2021 Fixed Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 123,092 $ 15,086 $ 80,760 $ 23,946 Unused lines of credit 221,457 314,120 213,332 309,791 Standby letters of credit 2,692 9,164 2,586 9,737 Commitments to make loans are generally made for periods of 90 days or less. The fixed rate loan commitments have interest rates ranging from 1.0% to 18.0% and maturities ranging from approximately 1 year to 30 years. ALLOWANCE FOR CREDIT LOSSES (“ACL”) ON OFF BALANCE SHEET CREDIT (“OBSC”) Exposures The Company maintains a separate ACL on OBSC exposures, including unfunded commitments and letters of credit, which is included on the accompanying consolidated balance sheet as of March 31, 2022 and December 31, 2021. The ACL on OBSC exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Changes in the ACL on OBSC exposures were as follows for the presented periods ($ in thousands): Three Months Ended Three Months Ended March 31, 2022 March 31, 2021 Balance at beginning of period $ 1,070 $ — Adoption of ASU 326 — 718 Credit loss expense related to OBSC exposures — — Balance at end of period $ 1,070 $ 718 Adjustments to the ACL on OBSC exposures are recorded to provision for credit losses OBSC exposures. No credit loss estimate is reported for OBSC exposures that are unconditionally cancellable by the Company or for undrawn amounts under such arrangements that may be drawn prior to the cancellation on the arrangement. |
FAIR VALUE DISCLOSURES AND REPO
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021: ● 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 cost associated with litigation and collection. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment. ● Other Real Estate Owned : Other real estate owned consists of properties obtained through foreclosure. The adjustment at the time of foreclosure is recorded through the allowance for credit losses. Fair value of other real estate owned is based on current independent appraisals of the collateral less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals, which are updated no less frequently than annually. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach with data from comparable properties. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments, if any, result in a Level 3 classification of the inputs for determining fair value. In the determination of fair value subsequent to foreclosure, management also considers other factors or recent developments, such as changes in market conditions from the time of valuation and anticipated sales values considering plans for disposition, which could result in an adjustment to lower the collateral value estimates indicated in the appraisals. The Company generally adjusts the appraisal down by approximately 10 percent to account for carrying costs. Periodic revaluations are classified as Level 3 in the fair value hierarchy since assumptions are used that may not be observable in the market. Due to the subjective nature of establishing the fair value when the asset is acquired, the actual fair value of the other real estate owned or foreclosed asset could differ from the original estimate. If it is determined the fair value declines subsequent to foreclosure, a valuation allowance is recorded through other non-interest income. Operating costs associated with the assets after acquisition are also recorded as non-interest expense. Gains and losses on the disposition of other real estate owned and foreclosed assets are netted and recorded in other non-interest income. Other real estate owned is classified within Level 3 of the fair value hierarchy. Estimated fair values for the Company’s financial instruments are as follows, as of the dates noted: March 31, 2022 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 $ 802,613 $ 802,613 $ 802,613 $ — $ — Securities available-for-sale: U.S. Treasury 128,993 128,993 128,993 — — Obligations of U.S. government agencies and sponsored entities 164,582 164,582 — 164,582 — Municipal securities 639,253 639,253 — 619,625 19,628 Mortgage-backed securities 623,117 623,117 — 623,117 — Corporate obligations 35,732 35,732 — 35,689 43 Securities held- to-maturity 372,062 358,395 — 358,395 — Loans, net 2,938,626 2,967,573 — — 2,967,573 Accrued interest receivable 23,234 23,234 — 7,542 15,692 Liabilities: Noninterest-bearing deposits $ 810,723 $ 810,723 $ — $ 810,723 $ — Interest-bearing deposits 4,627,015 4,572,416 — 4,572,416 — Subordinated debentures 144,801 156,128 — — 156,128 Accrued interest payable 1,306 1,306 — 1,306 — December 31, 2021 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 $ 919,713 $ 919,713 $ 919,713 $ — $ — Securities available-for-sale: U.S. Treasury 135,158 135,158 135,158 — — Obligations of U.S. government agencies and sponsored entities 183,021 183,021 — 183,021 — Municipal securities 708,502 708,502 — 688,379 20,123 Mortgage-backed securities 688,298 688,298 — 688,298 — Corporate obligations 36,853 36,853 — 36,810 43 Loans, net 2,928,811 2,956,297 — — 2,956,297 Accrued interest receivable 23,256 23,256 — 6,838 16,418 Liabilities: Non-interest-bearing deposits $ 756,118 $ 756,118 $ — $ 756,118 $ — Interest-bearing deposits 4,470,666 4,431,771 — 4,431,771 — Subordinated debentures 144,726 156,952 — — 156,952 Accrued interest payable 1,711 1,711 — 1,711 — Assets measured at fair value on a recurring basis are summarized below: March 31, 2022 ($ 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 $ 128,993 $ 128,993 $ — $ — Obligations of U.S. Government agencies and sponsored entities 164,582 — 164,582 — Municipal securities 639,253 — 619,625 19,628 Mortgage-backed securities 623,117 — 623,117 — Corporate obligations 35,732 — 35,689 43 Total available-for-sale $ 1,591,677 $ 128,993 $ 1,443,013 $ 19,671 December 31, 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 $ 135,158 $ 135,158 $ — $ — Obligations of U.S. Government agencies and sponsored entities 183,021 — 183,021 — Municipal securities 708,502 — 688,379 20,123 Mortgage-backed securities 688,298 — 688,298 — Corporate obligations 36,853 — 36,810 43 Total available-for-sale $ 1,751,832 $ 135,158 $ 1,596,508 $ 20,166 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) 2022 2021 Balance, January 1 $ 43 $ 235 Unrealized gain included in comprehensive income — 40 Balance at March 31 $ 43 $ 275 Municipal Securities ($ in thousands) 2022 2021 Balance, January 1 $ 20,123 $ 20,126 Maturities, calls and paydowns (216) — Unrealized (loss) gain included in comprehensive income (279) 22 Balance at March 31 $ 19,628 $ 20,148 The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis at March 31, 2022 and December 31, 2021. 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 March 31, 2022 $ 43 Discounted cash flow Probability of default 2.86% - 2.99% December 31, 2021 $ 43 Discounted cash flow Probability of default 2.35% - 2.47% Significant Municipal Securities Fair Value Valuation Technique Unobservable Inputs Range of Inputs March 31, 2022 $ 19,628 Discounted cash flow Discount Rate 0.70% - 2.78% December 31, 2021 $ 20,123 Discounted cash flow Discount Rate 0.50% - 1.90% The following table presents the fair value measurement of assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which the fair value measurements were classified at March 31, 2022 and December 31, 2021. March 31, 2022 ($ 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 $ 2,095 $ — $ — $ 2,095 Other real estate owned 2,835 — — 2,835 December 31, 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 $ 3,564 $ — $ — $ 3,564 Other real estate owned 2,565 — — 2,565 |
SECURITIES
SECURITIES | 3 Months Ended |
Mar. 31, 2022 | |
SECURITIES | |
SECURITIES | NOTE 9 - SECURITIES The following table summarizes the amortized cost, gross unrealized gains and losses, and estimated fair values of securities available-for-sale (“AFS”) and securities held-to-maturity at March 31, 2022 and December 31, 2021: ($ in thousands) March 31, 2022 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale securities: U.S. Treasury $ 135,854 $ — $ 6,861 $ 128,993 Obligations of U.S. government agencies and sponsored entities 173,403 57 8,878 164,582 Tax-exempt and taxable obligations of states and municipal subdivisions 684,533 2,844 48,124 639,253 Mortgage-backed securities - residential 387,989 533 19,491 369,031 Mortgage-backed securities - commercial 266,197 508 12,619 254,086 Corporate obligations 35,868 367 503 35,732 Total available-for-sale $ 1,683,844 $ 4,309 $ 96,476 $ 1,591,677 Held-to-maturity: U.S. Treasury $ 109,476 $ — $ 2,127 $ 107,349 Obligations of U.S. government agencies and sponsored entities 18,134 — — 18,134 Tax-exempt and taxable obligations of states and municipal subdivisions 61,398 — 5,092 56,306 Mortgage-backed securities - residential 110,817 — 4,048 106,769 Mortgage-backed securities - commercial 62,237 — 1,944 60,293 Corporate obligations 10,000 — 456 9,544 Total held-to-maturity $ 372,062 $ — $ 13,667 $ 358,395 ($ in thousands) December 31, 2021 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale securities: U.S. Treasury $ 135,889 $ 83 $ 814 $ 135,158 Obligations of U.S. government agencies sponsored entities 182,877 1,238 1,094 183,021 Tax-exempt and taxable obligations of states and municipal subdivisions 698,861 12,452 2,811 708,502 Mortgage-backed securities - residential 410,269 4,123 3,425 410,967 Mortgage-backed securities - commercial 277,353 2,917 2,939 277,331 Corporate obligations 35,904 962 13 36,853 Total available-for-sale $ 1,741,153 $ 21,775 $ 11,096 $ 1,751,832 The amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. ACL on Securities Securities Available for Sale Quarterly, the Company evaluates if a security has a fair value less than its amortized cost. Once these securities are identified, in order to determine whether a decline in fair value resulted from a credit loss or other factors, the Company performs further analysis as outlined below: ● Review the extent to which the fair value is less than the amortized cost and determine if the decline is indicative of credit loss or other factors. ● The securities that violate the credit loss trigger above would be subjected to additional analysis. ● If the Company determines that a credit loss exists, the credit portion of the allowance will be measured using the discounted cash flow (“DCF”) analysis using the effective interest rate. The amount of credit loss the Company records will be limited to the amount by which the amortized cost exceeds the fair value. The allowance for the calculated credit loss will be monitored going forward for further credit deterioration or improvement. At both March 31, 2022 and December 31, 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. Accrued interest receivable totaled $6.5 million and $6.8 million at March 31, 2022 and December 31, 2021, respectively and was reported in interest receivable on the accompanying Consolidated Balance Sheet. All AFS securities were current with no securities past due or on nonaccrual as of March 31, 2022 and December 31, 2021. Securities Held to Maturity At March 31, 2022, the potential credit loss exposure was $197 thousand and consisted of tax-exempt and taxable obligations of states and municipal subdivisions and corporate obligations securities. After applying appropriate probability of default (“PD”) and loss given default (“LGD”) assumptions, the total amount of current expected credit losses was deemed immaterial. Therefore, no reserve was recorded at March 31, 2022. Accrued interest receivable is excluded from the estimate of credit losses for securities held-to-maturity. Accrued interest receivable totaled $756 thousand and $0 at March 31, 2022 and December 31, 2021, respectively and was reported in interest receivable on the accompanying Consolidated Balance Sheet. At March 31, 2022, the Company had no securities held-to-maturity that were past due 30 days or more as to principal or interest payments. The Company had no securities held-to-maturity classified as nonaccrual at March 31, 2022. The Company monitors the credit quality of the debt securities held-to-maturity through the use of credit ratings. The Company monitors the credit ratings on a quarterly basis. The following table summarizes the amortized cost of debt securities held-to-maturity at March 31, 2022, aggregated by credit quality indicators ($ in thousands): March 31, 2022 A2 $ 1,422 Aa1/Aa2 12,062 Aaa 303,194 Not rated 55,384 Total $ 372,062 The amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. ($ in thousands) March 31, 2022 Amortized Fair Available-for-Sale Cost Value Due less than one year $ 36,378 $ 36,420 Due after one year through five years 248,150 241,935 Due after five years through ten years 395,784 372,741 Due greater than ten years 349,346 317,464 Mortgage-backed securities - residential 387,989 369,031 Mortgage-backed securities - commercial 266,197 254,086 Total $ 1,683,844 $ 1,591,677 Held-to-maturity Due less than one year $ 10,280 $ 10,230 Due after one year through five years 103,433 101,152 Due after five years through ten years 33,969 32,933 Due greater than ten years 51,326 47,018 Mortgage-backed securities - residential 110,817 106,769 Mortgage-backed securities - commercial 62,237 60,293 Total $ 372,062 $ 358,395 The amortized costs of securities pledged as collateral, to secure public deposits and for other purposes, was $1.019 billion and $889.5 million at March 31, 2022 and December 31, 2021, respectively. The following table summarizes securities in an unrealized loss position for which an allowance for credit losses has not been recorded at March 31, 2022 and December 31, 2021. There were no held-to-maturity securities at December 31, 2021. The securities are aggregated by major security type and length of time in a continuous unrealized loss position: ($ in thousands) March 31, 2022 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 $ 128,014 $ 6,773 $ 979 $ 88 $ 128,993 $ 6,861 Obligations of U.S. government agencies and sponsored entities 149,445 8,449 4,876 429 154,321 8,878 Tax-exempt and taxable obligations of state and municipal subdivisions 457,582 41,484 62,050 6,640 519,632 48,124 Mortgage-backed securities - residential 287,353 16,315 34,234 3,176 321,587 19,491 Mortgage-backed securities - commercial 165,280 10,689 21,506 1,930 186,786 12,619 Corporate obligations 17,386 499 38 4 17,424 503 Total $ 1,205,060 $ 84,209 $ 123,683 $ 12,266 $ 1,328,743 $ 96,476 Held-to-maturity U.S. Treasury $ 107,349 $ 2,127 $ — $ — $ 107,349 $ 2,127 Tax-exempt and taxable obligations of state and municipal subdivisions 56,306 5,092 — — 56,306 5,092 Mortgage-backed securities - residential 106,769 4,048 — — 106,769 4,048 Mortgage-backed securities - commercial 60,293 1,944 — — 60,293 1,944 Corporate obligations 9,544 456 — — 9,544 456 Total $ 340,261 $ 13,667 $ — $ — $ 340,261 $ 13,667 ($ in thousands) December 31, 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 $ 130,098 $ 814 $ — $ — $ 130,098 $ 814 Obligations of U.S. government agencies and sponsored entities 121,402 933 5,254 161 126,656 1,094 Tax-exempt and taxable obligations of state and municipal subdivisions 249,430 2,692 3,692 119 253,122 2,811 Mortgage-backed securities - residential 284,183 3,228 8,912 197 293,095 3,425 Mortgage-backed securities - commercial 174,697 2,836 3,038 103 177,735 2,939 Corporate obligations 6,692 8 42 5 6,734 13 Total $ 966,502 $ 10,511 $ 20,938 $ 585 $ 987,440 $ 11,096 At March 31, 2022 and December 31, 2021, the Company’s securities portfolio consisted of 952 and 304 securities, respectively, which were in an unrealized loss position. 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 was needed at March 31, 2022 and December 31, 2021. |
LOANS
LOANS | 3 Months Ended |
Mar. 31, 2022 | |
LOANS | |
LOANS | NOTE 10 – LOANS The Company uses four different categories to classify loans in its portfolio based on the underlying collateral securing each loan. The loans grouped together in each category have been determined to share similar risk characteristics with respect to credit quality. Those four categories are commercial, financial and agriculture, commercial real estate, consumer real estate, consumer installment; Commercial, financial and agriculture Commercial real estate Consumer real estate Consumer installment The following table shows the composition of the loan portfolio: ($ in thousands) March 31, 2022 December 31, 2021 Loans held for sale Mortgage loans held for sale $ 8,213 $ 7,678 Total LHFS $ 8,213 $ 7,678 Loans held for investment Commercial, financial and agriculture (1) $ 385,036 $ 397,516 Commercial real estate 1,697,839 1,683,698 Consumer real estate 848,021 838,654 Consumer installment 39,350 39,685 Total loans 2,970,246 2,959,553 Less allowance for credit losses (31,620) (30,742) Net LHFI $ 2,938,626 $ 2,928,811 (1) Loan balance includes $19.4 million and $41.1 million in Paycheck Protection Program (“PPP”) loans as of March 31, 2022 and December 31, 2021, respectively. Accrued interest receivable is not included in the amortized cost basis of the Company’s LHFI. At March 31, 2022 and December 31, 2021, accrued interest receivable for LHFI totaled $15.7 million and $16.4 million, respectively, with no related ACL and was reported in interest receivable on the accompanying consolidated balance sheet. Nonaccrual and Past Due LHFI Past due LHFI are loans contractually past due 30 days or more as to principal or interest payments. Generally, the Company will place a delinquent loan in nonaccrual status when the loan becomes 90 days or more past due. At the time a loan is placed in nonaccrual status, all interest which has been accrued on the loan but remains unpaid is reversed and deducted from earnings as a reduction of reported interest income. No additional interest is accrued on the loan balance until the collection of both principal and interest becomes reasonably certain. The following tables presents the aging of the amortized cost basis in past due loans in addition to those loans classified as nonaccrual including purchase credit deteriorated (“PCD”) loans: March 31, 2022 Past Due Total Past Due 90 Days Past Due, Nonaccrual 30 to 89 or More and Nonaccrual Total and PCD ($ in thousands) Days Still Accruing Nonaccrual PCD and PCD LHFI with No ACL Commercial, financial and agriculture (1) $ 986 $ — $ 153 $ — $ 1,139 $ 385,036 $ — Commercial real estate 4,300 — 18,580 1,467 24,347 1,697,839 1,438 Consumer real estate 2,965 — 3,168 1,358 7,491 848,021 557 Consumer installment 94 — 9 1 104 39,350 5 Total $ 8,345 $ — $ 21,910 $ 2,826 $ 33,081 $ 2,970,246 $ 2,000 (1) Total loan balance includes $19.4 million in PPP loans as of March 31, 2022. December 31, 2021 Past Due 90 Total Nonaccrual Past Due Days or Past Due, and PCD 30 to 89 More and Nonaccrual Total with No ($ in thousands) Days Still Accruing Nonaccrual PCD and PCD LHFI ACL Commercial, financial and agriculture (1) $ 246 $ — $ 190 $ — $ 436 $ 397,516 $ — Commercial real estate 453 — 19,445 2,082 21,980 1,683,698 1,661 Consumer real estate 2,140 45 3,776 2,512 8,473 838,654 1,488 Consumer installment 121 — 7 1 129 39,685 — Total $ 2,960 $ 45 $ 23,418 $ 4,595 $ 31,018 $ 2,959,553 $ 3,149 (1) Total loan balance includes $41.1 million in PPP loans as of December 31, 2021. Acquired Loans As of March 31, 2022, and December 31, 2021 the amortized cost of the Company’s PCD loans totaled $6.7 million and $8.6 million, respectively, which had an estimated ACL of $619 thousand and $855 thousand, respectively. 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 than 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 Act (the “CARES Act”). As of March 31, 2022, and December 31, 2021, the Company had TDRs totaling $22.0 million and $24.2 million, respectively. As of March 31, 2022, the Company had no additional amount committed on any loan classified as TDR. As of March 31, 2022, and December 31, 2021, TDRs had a related ACL of $4.1 million and $4.3 million, respectively. The following table presents LHFI by class modified as TDRs that occurred during the three months ended March 31, 2022. There were no TDRs added during the three months ended March 31, 2021 ($ in thousands, except for number of loans). Three Months Ended March 31, Outstanding Outstanding Recorded Recorded Number of Investment Investment 2022 Loans Pre-Modification Post-Modification Commercial real estate 1 $ 230 $ 230 Total 1 $ 230 $ 230 The TDRs presented above increased the ACL $1 thousand and $0 thousand and resulted in no charge-offs for the three months period ended March 31, 2022 and 2021, respectively. The following table presents loans by class modified as TDRs for which there was a payment default within twelve months following the modification ($ in thousands, except for number of loans). Three Months Ended March 31, 2022 2021 Troubled Debt Restructurings Number of Recorded Number of Recorded That Subsequently Defaulted: Loans Investment Loans Investment Commercial real estate 3 $ 4,606 3 $ 1,065 Consumer real estate 3 141 — — Total 6 $ 4,747 3 $ 1,065 The modifications described above included one of the following or a combination of the following: maturity date extensions, interest only payments, amortizations were extended beyond what would be available on similar type loans, and payment waiver. No interest rate concessions were given on these loans nor were any of these loans written down. A loan is considered to be in a payment default once it is 30 days contractually past due under the modified terms. The TDRs presented above increased the ACL $1.5 million and $89 thousand and resulted in no charge-offs for the three months period ended March 31, 2022 and 2021, respectively. The following tables represents the Company’s TDRs at March 31, 2022 and December 31, 2021: March 31, 2022 Past Due 90 Current Past Due days and still ($ in thousands) Loans 30-89 accruing Nonaccrual Total Commercial, financial and agriculture $ 18 $ — $ — $ 85 $ 103 Commercial real estate 3,210 — — 16,051 19,261 Consumer real estate 1,665 — — 943 2,608 Consumer installment 16 — — — 16 Total $ 4,909 $ — $ — $ 17,079 $ 21,988 Allowance for credit losses $ 81 $ — $ — $ 3,974 $ 4,055 December 31, 2021 Past Due 90 Current Past Due days and still ($ in thousands) Loans 30-89 accruing Nonaccrual Total Commercial, financial and agriculture $ 63 $ — $ — $ 107 $ 170 Commercial real estate 3,367 — — 16,858 20,225 Consumer real estate 1,772 — — 1,973 3,745 Consumer installment 18 — — — 18 Total $ 5,220 $ — $ — $ 18,938 $ 24,158 Allowance for credit losses $ 90 $ — $ — $ 4,217 $ 4,307 Collateral Dependent Loans The following table presents the amortized cost basis of collateral dependent individually evaluated loans by class of loans as of March 31, 2022 and December 31, 2021 ($ in thousands): March 31, 2022 Real Property Miscellaneous Total Commercial real estate $ 1,438 $ — $ 1,438 Consumer real estate 682 — 682 Consumer installment — 5 5 Total $ 2,120 $ 5 $ 2,125 December 31, 2021 Real Property Total Commercial real estate $ 1,712 $ 1,712 Consumer real estate 1,858 1,858 Total $ 3,570 $ 3,570 A loan is collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the sale of the collateral. The following provides a qualitative description by class of loan of the collateral that secures the Company’s collateral-dependent LHFI: ● Commercial, financial and agriculture – Loans within these loan classes are secured by equipment, inventory accounts, and other non-real estate collateral. ● Commercial real estate – Loans within these loan classes are secured by commercial real property. ● Consumer real estate - Loans within these loan classes are secured by consumer real property. ● Consumer installment - Loans within these loan classes are secured by consumer goods, equipment, and non-real estate collateral. There have been no significant changes to the collateral that secures these financial assets during the period. Loan Participations The Company has loan participations, which qualify as participating interest, with other financial institutions. As of March 31, 2022, these loans totaled $107.3 million, of which $66.9 million had been sold to other financial institutions and $40.4 million was purchased by the Company. As of December 31, 2021, these loans totaled $118.4 million, of which $77.8 million had been sold to other financial institutions and $40.6 million was purchased by the Company. The loan participations convey proportionate ownership rights with equal priority to each participating interest holder; involving no recourse (other than ordinary representations and warranties) to, or subordination by, any participating interest holder; all cash flows are divided among the participating interest holders in proportion to each holder’s share of ownership; and no holder has the right to pledge the entire financial asset unless all participating interest holders agree. Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually to classify the loans as to credit risk. The Company uses the following definitions for risk ratings: Pass: Special Mention Substandard Doubtful These above classifications were the most current available as of March 31, 2022, and were generally updated within the prior year. The tables below present the amortized cost basis of loans by credit quality indicator and class of loans based on the most recent analysis performed at March 31, 2022 and December 31, 2021. Revolving loans converted to term as of the three months ended March 31, 2022 and December 31, 2021 were not material to the total loan portfolio. ($ in thousands) Term Loans Amortized Cost Basis by Origination Year Revolving As of March 31, 2022 2022 2021 2020 2019 2018 Prior Loans Total Commercial, financial and: agriculture Risk Rating Pass $ 35,149 $ 129,950 $ 55,278 $ 48,382 $ 44,072 $ 54,853 $ 87 $ 367,771 Special mention — — 230 681 1,235 7,505 — 9,651 Substandard 38 40 — 1,151 4,921 1,464 — 7,614 Doubtful — — — — — — — — Total commercial, financial and agriculture $ 35,187 $ 129,990 $ 55,508 $ 50,214 $ 50,228 $ 63,822 $ 87 $ 385,036 Commercial real estate: Risk Rating Pass $ 122,802 $ 406,171 $ 293,259 $ 195,948 $ 162,109 $ 414,336 $ — $ 1,594,625 Special mention — 1,326 2,245 1,744 7,764 16,116 — 29,195 Substandard — 5,041 2,613 2,438 16,941 46,986 — 74,019 Doubtful — — — — — — — — Total commercial real estate $ 122,802 $ 412,538 $ 298,117 $ 200,130 $ 186,814 $ 477,438 $ — $ 1,697,839 Consumer real estate: Risk Rating Pass $ 50,294 $ 246,677 $ 148,600 $ 65,615 $ 61,059 $ 159,050 $ 98,248 $ 829,543 Special mention — — — 326 26 3,486 — 3,838 Substandard 785 436 424 898 2,973 7,686 1,438 14,640 Doubtful — — — — — — — — Total consumer real estate $ 51,079 $ 247,113 $ 149,024 $ 66,839 $ 64,058 $ 170,222 $ 99,686 $ 848,021 Consumer installment: Risk Rating Pass $ 5,005 $ 16,200 $ 7,862 $ 3,477 $ 1,294 $ 2,365 $ 3,098 $ 39,301 Special mention — — — — — — — — Substandard — — 26 2 5 16 — 49 Doubtful — — — — — — — — Total consumer installment $ 5,005 $ 16,200 $ 7,888 $ 3,479 $ 1,299 $ 2,381 $ 3,098 $ 39,350 Total Pass $ 213,250 $ 798,998 $ 504,999 $ 313,422 $ 268,534 $ 630,604 $ 101,433 $ 2,831,240 Special mention — 1,326 2,475 2,751 9,025 27,107 — 42,684 Substandard 823 5,517 3,063 4,489 24,840 56,152 1,438 96,322 Doubtful — — — — — — — — Total $ 214,073 $ 805,841 $ 510,537 $ 320,662 $ 302,399 $ 713,863 $ 102,871 $ 2,970,246 ($ in thousands) Term Loans Amortized Cost Basis by Origination Year Revolving As of December 31, 2021 2021 2020 2019 2018 2017 Prior Loans Total Commercial, financial and: agriculture Risk Rating Pass $ 152,798 $ 60,106 $ 52,802 $ 47,988 $ 22,083 $ 43,773 $ 178 $ 379,728 Special mention — 255 749 90 481 29 — 1,604 Substandard — — 1,398 6,184 360 8,242 — 16,184 Doubtful — — — — — — — — Total commercial, financial and agriculture $ 152,798 $ 60,361 $ 54,949 $ 54,262 $ 22,924 $ 52,044 $ 178 $ 397,516 Commercial real estate: Risk Rating Pass $ 402,284 $ 313,288 $ 207,879 $ 177,943 $ 134,234 $ 332,588 $ — $ 1,568,216 Special mention 1,326 2,259 1,782 15,076 2,779 15,519 — 38,741 Substandard 3,904 3,189 1,931 17,147 18,814 31,756 — 76,741 Doubtful — — — — — — — — Total commercial real estate $ 407,514 $ 318,736 $ 211,592 $ 210,166 $ 155,827 $ 379,863 $ — $ 1,683,698 Consumer real estate: Risk Rating Pass $ 243,340 $ 164,359 $ 70,465 $ 66,940 $ 51,988 $ 121,238 $ 98,444 $ 816,774 Special mention — — 331 26 1,746 1,949 — 4,052 Substandard 444 532 1,280 3,410 1,288 9,241 1,633 17,828 Doubtful — — — — — — — — Total consumer real estate $ 243,784 $ 164,891 $ 72,076 $ 70,376 $ 55,022 $ 132,428 $ 100,077 $ 838,654 Consumer installment: Risk Rating Pass $ 17,980 $ 9,245 $ 4,222 $ 1,645 $ 1,088 $ 1,758 $ 3,697 $ 39,635 Special mention — — — — 1 — — 1 Substandard — 26 3 5 8 7 — 49 Doubtful — — — — — — — — Total consumer installment $ 17,980 $ 9,271 $ 4,225 $ 1,650 $ 1,097 $ 1,765 $ 3,697 $ 39,685 Total Pass $ 816,402 $ 546,998 $ 335,368 $ 294,516 $ 209,393 $ 499,357 $ 102,319 $ 2,804,353 Special mention 1,326 2,514 2,862 15,192 5,007 17,497 — 44,398 Substandard 4,348 3,747 4,612 26,746 20,470 49,246 1,633 110,802 Doubtful — — — — — — — — Total $ 822,076 $ 553,259 $ 342,842 $ 336,454 $ 234,870 $ 566,100 $ 103,952 $ 2,959,553 Allowance for Credit Losses The ACL is a valuation account that is deducted from loans’ amortized cost basis to present the net amount expected to be collected on the loans. It is comprised of a general allowance for loans that are collectively assessed in pools with similar risk characteristics and a specific allowance for individually assessed loans. The allowance is continuously monitored by management to maintain a level adequate to absorb expected losses inherent in the loan portfolio. The ACL represents the estimated losses for financial assets accounted for on an amortized cost basis. Expected losses are calculated using relevant information, from internal and external sources, about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environment conditions, such as changes in unemployment rates, property values, or other relevant factors. Management may selectively apply external market data to subjectively adjust the Company’s own loss history including index or peer data. Expected losses are estimated over the contractual term of the loans, adjusted for expected prepayments. The contractual term excludes expected extensions, renewals, and modifications. Loans are charged-off against the allowance when management believes the uncollectibility of a loan balance is confirmed and recoveries are credited to the allowance when received. Expected recovery amounts may not exceed the aggregate of amounts previously charged-off. The ACL is measured on a collective basis when similar risk characteristics exist. Generally, collectively assessed loans are grouped by call code (segments). Segmenting loans by call code will group loans that contain similar types of collateral, purposes, and are usually structured with similar terms making each loan’s risk profile very similar to the rest in that segment. Each of these segments then flows up into one of the four bands (bands), Commercial, Financial, and Agriculture, Commercial Real Estate, Consumer Real Estate, and Consumer Installment. In accordance with the guidance in ASC 326, the Company redefined its LHFI portfolio segments and related loan classes based on the level at which risk is monitored within the ACL methodology. Construction loans for 1-4 family residential properties with a call code 1A1, and other construction, all land development and other land loans with a call code 1A2 were previously separated between the Commercial Real Estate or Consumer Real Estate bands based on loan type code. Under our ASC 326 methodology 1A1 loans are all defined as part of the Consumer Real Estate band and 1A2 loans are all defined as part of the Commercial Real Estate Band. The 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 LGD calculation is based on actual losses (charge-offs, net recoveries) at a loan level experienced over the entire lookback period aggregated to get a total for each segment of loans. The aggregate loss amount is divided by the exposure at default to determine an LGD rate. Defaults occurring during the lookback period are included in the denominator, whether a loss occurred or not and exposure at default is determined by the loan balance immediately preceding the default event. If there is not a minimum of five past defaults in a loan segment, or less than 15.0% calculated LGD rate, or the total balance at default is less than 1% of the balance in the respective call code as of the model run date, a proxy index is used. This index is proprietary to the Company’s ACL modeling vendor derived from loss data of other client institutions similar in organization structure to the Company. The vendor also provides a “crisis” index derived from loss data between the post-recessionary years of 2008-2013 that the Company uses. The model then uses these inputs in a non-discounted version of DCF methodology to calculate the quantitative portion of estimated losses. The model creates loan level amortization schedules that detail out the expected monthly payments for a loan including estimated prepayments and payoffs. These expected cash flows are discounted back to present value using the loan’s coupon rate instead of the effective interest rate. On a quarterly basis, the Company uses internal credit portfolio data, such as changes in portfolio volume and composition, underwriting practices, and levels of past due loans, nonaccruals and classified assets along with other external information not used in the quantitative calculation to determine if any subjective qualitative adjustments are required so that all significant risks are incorporated to form a sufficient basis to estimate credit losses. The following table presents the activity in the allowance for credit losses by portfolio segment for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 ($ in thousands) Commercial, Financial and Commercial Consumer Consumer Agriculture Real Estate Real Estate Installment Total Allowance for credit losses: Beginning balance $ 4,873 $ 17,552 $ 7,889 $ 428 $ 30,742 Provision for credit losses — — — — — Loans charged-off (52) (3) (7) (169) (231) Recoveries 53 224 610 222 1,109 Total ending allowance balance $ 4,874 $ 17,773 $ 8,492 $ 481 $ 31,620 Three Months Ended March 31, 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 (986) (2,841) (139) (157) (4,123) Recoveries 83 132 54 300 569 Total ending allowance balance $ 4,158 $ 17,578 $ 10,280 $ 647 $ 32,663 The Company recorded no provision for credit losses for the three months ended March 31, 2022 and 2021, respectively. The Company determined that no provision adjustment was necessary at March 31, 2022 and 2021 due to the improved macroeconomic outlook since 2021 coupled with the $878 thousand in net recoveries for the first quarter of 2022. The following table provides the ending balance in the Company’s LHFI and the ACL, broken down by portfolio segment as of March 31, 2022 and December 31, 2021 ($ in thousands). March 31,2022 Commercial, Financial and Commercial Consumer Consumer Agriculture Real Estate Real Estate Installment Total LHFI Individually evaluated $ — $ 1,438 $ 682 $ 5 $ 2,125 Collectively evaluated 385,036 1,696,401 847,339 39,345 2,968,121 Total $ 385,036 $ 1,697,839 $ 848,021 $ 39,350 $ 2,970,246 Allowance for Credit Losses Individually evaluated $ — $ 30 $ — $ — $ 30 Collectively evaluated 4,874 17,743 8,492 481 31,590 Total $ 4,874 $ 17,773 $ 8,492 $ 481 $ 31,620 December 31, 2021 Commercial, Financial and Commercial Consumer Consumer Agriculture Real Estate Real Estate Installment Total LHFI Individually evaluated $ — $ 1,712 $ 1,858 $ — $ 3,570 Collectively evaluated 397,516 1,681,986 836,796 39,685 2,955,983 Total $ 397,516 $ 1,683,698 $ 838,654 $ 39,685 $ 2,959,553 Allowance for Credit Losses Individually evaluated $ — $ 4 $ 2 $ — $ 6 Collectively evaluated 4,873 17,548 7,887 428 30,736 Total $ 4,873 $ 17,552 $ 7,889 $ 428 $ 30,742 |
COVID-19 UPDATE
COVID-19 UPDATE | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022, the Company’s aggregate outstanding exposure in these segments was $458.7 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 continue to 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. 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 | 3 Months Ended |
Mar. 31, 2022 | |
RECLASSIFICATION | |
RECLASSIFICATION | NOTE 12 – RECLASSIFICATION Certain amounts in the 2021 financial statements have been reclassified for comparative purposes to conform to the current period financial statement presentation. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 13 – SUBSEQUENT EVENTS/OTHER On April 26, 2022, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Beach Bancorp, Inc. (“BBI”), a Florida Corporation, whereby BBI will be merged with and into the Company. Pursuant to and simultaneously with entering into the Merger Agreement, The First, and BBI’s wholly owned subsidiary bank, Beach Bank, entered into a Plan of Bank Merger whereby Beach Bank will be merged with and into The First immediately following the merger of BBI with and into the Company with a purchase price, on announcement date, of approximately $116.7 million. At March 31, 2022, BBI had approximately $620.0 million in assets, $456.0 million in loans, and $492.0 million in deposits. The transaction is expected to close in the third or fourth quarter of 2022 and is subject to shareholder and customary regulatory approvals. On May 2, 2022, the Company announced that it would not be participating in the U.S. Department of Treasury's Emergency Capital Investment Program ("ECIP"). Because the Company is not participating in ECIP, it will not receive any portion of the previously disclosed proposed investment in the Company from the U.S. Department of Treasury. |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Schedule of outstanding principal balance and the carrying amount of acquired loan | The outstanding principal balance and the carrying amount of these loans included in the consolidated balance sheet at December 31, 2020, are as follows ($ in thousands): December 31, 2020 Outstanding principal balance $ 297,528 Carrying amount 295,772 |
Schedule of supplemental pro forma information | ($in thousands) Pro-Forma Pro-Forma Three months ended Three months ended March 31, 2022 March 31, 2021 (unaudited) (unaudited) Net interest income $ 38,639 $ 39,229 Non-interest income 11,157 9,472 Total revenue 49,796 48,701 Income before income taxes 21,461 21,437 |
Cadence Bank, N.A | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the provisional fair values of the assets acquired and liabilities assumed and the goodwill (bargain purchase gain) generated from the transaction ($ in thousands): Purchase price: Cash $ 1,000 Total purchase price 1,000 Identifiable assets: Cash $ 359,916 Loans 40,262 Core deposit intangible 2,890 Personal and real property 9,675 Other assets 135 Total assets 412,878 Liabilities and equity: Deposits 410,171 Other liabilities 407 Total liabilities 410,578 Net assets acquired 2,300 Bargain purchase gain $ (1,300) |
EARNINGS APPLICABLE TO COMMON_2
EARNINGS APPLICABLE TO COMMON SHAREHOLDERS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 March 31, 2021 Net Income Shares Per Net Income Shares Per (Numerator) (Denominator) Share Data (Numerator) (Denominator) Share Data Basic earnings per share $ 16,829 20,697,946 $ 0.81 $ 16,644 21,009,088 $ 0.79 Effect of dilutive shares: Restricted stock grants 149,051 191,470 Diluted earnings per share $ 16,829 20,846,997 $ 0.81 $ 16,644 21,200,558 $ 0.79 |
FINANCIAL INSTRUMENTS WITH OF_2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022, and December 31, 2021 these financial instruments consisted of the following: ($ in thousands) March 31, 2022 December 31, 2021 Fixed Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 123,092 $ 15,086 $ 80,760 $ 23,946 Unused lines of credit 221,457 314,120 213,332 309,791 Standby letters of credit 2,692 9,164 2,586 9,737 |
Schedule of changes in the ACL on OBSC exposures | Changes in the ACL on OBSC exposures were as follows for the presented periods ($ in thousands): Three Months Ended Three Months Ended March 31, 2022 March 31, 2021 Balance at beginning of period $ 1,070 $ — Adoption of ASU 326 — 718 Credit loss expense related to OBSC exposures — — Balance at end of period $ 1,070 $ 718 |
FAIR VALUE DISCLOSURES AND RE_2
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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: March 31, 2022 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 $ 802,613 $ 802,613 $ 802,613 $ — $ — Securities available-for-sale: U.S. Treasury 128,993 128,993 128,993 — — Obligations of U.S. government agencies and sponsored entities 164,582 164,582 — 164,582 — Municipal securities 639,253 639,253 — 619,625 19,628 Mortgage-backed securities 623,117 623,117 — 623,117 — Corporate obligations 35,732 35,732 — 35,689 43 Securities held- to-maturity 372,062 358,395 — 358,395 — Loans, net 2,938,626 2,967,573 — — 2,967,573 Accrued interest receivable 23,234 23,234 — 7,542 15,692 Liabilities: Noninterest-bearing deposits $ 810,723 $ 810,723 $ — $ 810,723 $ — Interest-bearing deposits 4,627,015 4,572,416 — 4,572,416 — Subordinated debentures 144,801 156,128 — — 156,128 Accrued interest payable 1,306 1,306 — 1,306 — December 31, 2021 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 $ 919,713 $ 919,713 $ 919,713 $ — $ — Securities available-for-sale: U.S. Treasury 135,158 135,158 135,158 — — Obligations of U.S. government agencies and sponsored entities 183,021 183,021 — 183,021 — Municipal securities 708,502 708,502 — 688,379 20,123 Mortgage-backed securities 688,298 688,298 — 688,298 — Corporate obligations 36,853 36,853 — 36,810 43 Loans, net 2,928,811 2,956,297 — — 2,956,297 Accrued interest receivable 23,256 23,256 — 6,838 16,418 Liabilities: Non-interest-bearing deposits $ 756,118 $ 756,118 $ — $ 756,118 $ — Interest-bearing deposits 4,470,666 4,431,771 — 4,431,771 — Subordinated debentures 144,726 156,952 — — 156,952 Accrued interest payable 1,711 1,711 — 1,711 — |
Schedule of assets measured at fair value on a recurring basis | Assets measured at fair value on a recurring basis are summarized below: March 31, 2022 ($ 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 $ 128,993 $ 128,993 $ — $ — Obligations of U.S. Government agencies and sponsored entities 164,582 — 164,582 — Municipal securities 639,253 — 619,625 19,628 Mortgage-backed securities 623,117 — 623,117 — Corporate obligations 35,732 — 35,689 43 Total available-for-sale $ 1,591,677 $ 128,993 $ 1,443,013 $ 19,671 December 31, 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 $ 135,158 $ 135,158 $ — $ — Obligations of U.S. Government agencies and sponsored entities 183,021 — 183,021 — Municipal securities 708,502 — 688,379 20,123 Mortgage-backed securities 688,298 — 688,298 — Corporate obligations 36,853 — 36,810 43 Total available-for-sale $ 1,751,832 $ 135,158 $ 1,596,508 $ 20,166 |
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) 2022 2021 Balance, January 1 $ 43 $ 235 Unrealized gain included in comprehensive income — 40 Balance at March 31 $ 43 $ 275 Municipal Securities ($ in thousands) 2022 2021 Balance, January 1 $ 20,123 $ 20,126 Maturities, calls and paydowns (216) — Unrealized (loss) gain included in comprehensive income (279) 22 Balance at March 31 $ 19,628 $ 20,148 |
Schedule of quantitative information about recurring Level 3 fair value measurements | The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis at March 31, 2022 and December 31, 2021. 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 March 31, 2022 $ 43 Discounted cash flow Probability of default 2.86% - 2.99% December 31, 2021 $ 43 Discounted cash flow Probability of default 2.35% - 2.47% Significant Municipal Securities Fair Value Valuation Technique Unobservable Inputs Range of Inputs March 31, 2022 $ 19,628 Discounted cash flow Discount Rate 0.70% - 2.78% December 31, 2021 $ 20,123 Discounted cash flow Discount Rate 0.50% - 1.90% |
Schedule of fair value measurement of assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy | The following table presents the fair value measurement of assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which the fair value measurements were classified at March 31, 2022 and December 31, 2021. March 31, 2022 ($ 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 $ 2,095 $ — $ — $ 2,095 Other real estate owned 2,835 — — 2,835 December 31, 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 $ 3,564 $ — $ — $ 3,564 Other real estate owned 2,565 — — 2,565 |
SECURITIES (Tables)
SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
SECURITIES | |
Schedule of amortized costs, gross unrealized gains and losses, and estimated fair values | ($ in thousands) March 31, 2022 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale securities: U.S. Treasury $ 135,854 $ — $ 6,861 $ 128,993 Obligations of U.S. government agencies and sponsored entities 173,403 57 8,878 164,582 Tax-exempt and taxable obligations of states and municipal subdivisions 684,533 2,844 48,124 639,253 Mortgage-backed securities - residential 387,989 533 19,491 369,031 Mortgage-backed securities - commercial 266,197 508 12,619 254,086 Corporate obligations 35,868 367 503 35,732 Total available-for-sale $ 1,683,844 $ 4,309 $ 96,476 $ 1,591,677 Held-to-maturity: U.S. Treasury $ 109,476 $ — $ 2,127 $ 107,349 Obligations of U.S. government agencies and sponsored entities 18,134 — — 18,134 Tax-exempt and taxable obligations of states and municipal subdivisions 61,398 — 5,092 56,306 Mortgage-backed securities - residential 110,817 — 4,048 106,769 Mortgage-backed securities - commercial 62,237 — 1,944 60,293 Corporate obligations 10,000 — 456 9,544 Total held-to-maturity $ 372,062 $ — $ 13,667 $ 358,395 ($ in thousands) December 31, 2021 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale securities: U.S. Treasury $ 135,889 $ 83 $ 814 $ 135,158 Obligations of U.S. government agencies sponsored entities 182,877 1,238 1,094 183,021 Tax-exempt and taxable obligations of states and municipal subdivisions 698,861 12,452 2,811 708,502 Mortgage-backed securities - residential 410,269 4,123 3,425 410,967 Mortgage-backed securities - commercial 277,353 2,917 2,939 277,331 Corporate obligations 35,904 962 13 36,853 Total available-for-sale $ 1,741,153 $ 21,775 $ 11,096 $ 1,751,832 |
Schedule of credit quality debt securities held-to-maturity | March 31, 2022 A2 $ 1,422 Aa1/Aa2 12,062 Aaa 303,194 Not rated 55,384 Total $ 372,062 |
Schedule of amortized cost and fair value of debt securities by contractual maturity | The amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. ($ in thousands) March 31, 2022 Amortized Fair Available-for-Sale Cost Value Due less than one year $ 36,378 $ 36,420 Due after one year through five years 248,150 241,935 Due after five years through ten years 395,784 372,741 Due greater than ten years 349,346 317,464 Mortgage-backed securities - residential 387,989 369,031 Mortgage-backed securities - commercial 266,197 254,086 Total $ 1,683,844 $ 1,591,677 Held-to-maturity Due less than one year $ 10,280 $ 10,230 Due after one year through five years 103,433 101,152 Due after five years through ten years 33,969 32,933 Due greater than ten years 51,326 47,018 Mortgage-backed securities - residential 110,817 106,769 Mortgage-backed securities - commercial 62,237 60,293 Total $ 372,062 $ 358,395 |
Schedule of securities classified as available-for-sale and held-to-maturity with unrealized losses | The following table summarizes securities in an unrealized loss position for which an allowance for credit losses has not been recorded at March 31, 2022 and December 31, 2021. There were no held-to-maturity securities at December 31, 2021. The securities are aggregated by major security type and length of time in a continuous unrealized loss position: ($ in thousands) March 31, 2022 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 $ 128,014 $ 6,773 $ 979 $ 88 $ 128,993 $ 6,861 Obligations of U.S. government agencies and sponsored entities 149,445 8,449 4,876 429 154,321 8,878 Tax-exempt and taxable obligations of state and municipal subdivisions 457,582 41,484 62,050 6,640 519,632 48,124 Mortgage-backed securities - residential 287,353 16,315 34,234 3,176 321,587 19,491 Mortgage-backed securities - commercial 165,280 10,689 21,506 1,930 186,786 12,619 Corporate obligations 17,386 499 38 4 17,424 503 Total $ 1,205,060 $ 84,209 $ 123,683 $ 12,266 $ 1,328,743 $ 96,476 Held-to-maturity U.S. Treasury $ 107,349 $ 2,127 $ — $ — $ 107,349 $ 2,127 Tax-exempt and taxable obligations of state and municipal subdivisions 56,306 5,092 — — 56,306 5,092 Mortgage-backed securities - residential 106,769 4,048 — — 106,769 4,048 Mortgage-backed securities - commercial 60,293 1,944 — — 60,293 1,944 Corporate obligations 9,544 456 — — 9,544 456 Total $ 340,261 $ 13,667 $ — $ — $ 340,261 $ 13,667 ($ in thousands) December 31, 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 $ 130,098 $ 814 $ — $ — $ 130,098 $ 814 Obligations of U.S. government agencies and sponsored entities 121,402 933 5,254 161 126,656 1,094 Tax-exempt and taxable obligations of state and municipal subdivisions 249,430 2,692 3,692 119 253,122 2,811 Mortgage-backed securities - residential 284,183 3,228 8,912 197 293,095 3,425 Mortgage-backed securities - commercial 174,697 2,836 3,038 103 177,735 2,939 Corporate obligations 6,692 8 42 5 6,734 13 Total $ 966,502 $ 10,511 $ 20,938 $ 585 $ 987,440 $ 11,096 |
LOANS (Tables)
LOANS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
LOANS | |
Schedule of composition of loan portfolio | ($ in thousands) March 31, 2022 December 31, 2021 Loans held for sale Mortgage loans held for sale $ 8,213 $ 7,678 Total LHFS $ 8,213 $ 7,678 Loans held for investment Commercial, financial and agriculture (1) $ 385,036 $ 397,516 Commercial real estate 1,697,839 1,683,698 Consumer real estate 848,021 838,654 Consumer installment 39,350 39,685 Total loans 2,970,246 2,959,553 Less allowance for credit losses (31,620) (30,742) Net LHFI $ 2,938,626 $ 2,928,811 (1) Loan balance includes $19.4 million and $41.1 million in Paycheck Protection Program (“PPP”) loans as of March 31, 2022 and December 31, 2021, respectively. |
Schedule of Company's loans that are past due and nonaccrual loans including PCD loans | The following tables presents the aging of the amortized cost basis in past due loans in addition to those loans classified as nonaccrual including purchase credit deteriorated (“PCD”) loans: March 31, 2022 Past Due Total Past Due 90 Days Past Due, Nonaccrual 30 to 89 or More and Nonaccrual Total and PCD ($ in thousands) Days Still Accruing Nonaccrual PCD and PCD LHFI with No ACL Commercial, financial and agriculture (1) $ 986 $ — $ 153 $ — $ 1,139 $ 385,036 $ — Commercial real estate 4,300 — 18,580 1,467 24,347 1,697,839 1,438 Consumer real estate 2,965 — 3,168 1,358 7,491 848,021 557 Consumer installment 94 — 9 1 104 39,350 5 Total $ 8,345 $ — $ 21,910 $ 2,826 $ 33,081 $ 2,970,246 $ 2,000 (1) Total loan balance includes $19.4 million in PPP loans as of March 31, 2022. December 31, 2021 Past Due 90 Total Nonaccrual Past Due Days or Past Due, and PCD 30 to 89 More and Nonaccrual Total with No ($ in thousands) Days Still Accruing Nonaccrual PCD and PCD LHFI ACL Commercial, financial and agriculture (1) $ 246 $ — $ 190 $ — $ 436 $ 397,516 $ — Commercial real estate 453 — 19,445 2,082 21,980 1,683,698 1,661 Consumer real estate 2,140 45 3,776 2,512 8,473 838,654 1,488 Consumer installment 121 — 7 1 129 39,685 — Total $ 2,960 $ 45 $ 23,418 $ 4,595 $ 31,018 $ 2,959,553 $ 3,149 (1) Total loan balance includes $41.1 million in PPP loans as of December 31, 2021. |
Schedule of troubled debt restructurings | The following table presents LHFI by class modified as TDRs that occurred during the three months ended March 31, 2022. There were no TDRs added during the three months ended March 31, 2021 ($ in thousands, except for number of loans). Three Months Ended March 31, Outstanding Outstanding Recorded Recorded Number of Investment Investment 2022 Loans Pre-Modification Post-Modification Commercial real estate 1 $ 230 $ 230 Total 1 $ 230 $ 230 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). Three Months Ended March 31, 2022 2021 Troubled Debt Restructurings Number of Recorded Number of Recorded That Subsequently Defaulted: Loans Investment Loans Investment Commercial real estate 3 $ 4,606 3 $ 1,065 Consumer real estate 3 141 — — Total 6 $ 4,747 3 $ 1,065 The following tables represents the Company’s TDRs at March 31, 2022 and December 31, 2021: March 31, 2022 Past Due 90 Current Past Due days and still ($ in thousands) Loans 30-89 accruing Nonaccrual Total Commercial, financial and agriculture $ 18 $ — $ — $ 85 $ 103 Commercial real estate 3,210 — — 16,051 19,261 Consumer real estate 1,665 — — 943 2,608 Consumer installment 16 — — — 16 Total $ 4,909 $ — $ — $ 17,079 $ 21,988 Allowance for credit losses $ 81 $ — $ — $ 3,974 $ 4,055 December 31, 2021 Past Due 90 Current Past Due days and still ($ in thousands) Loans 30-89 accruing Nonaccrual Total Commercial, financial and agriculture $ 63 $ — $ — $ 107 $ 170 Commercial real estate 3,367 — — 16,858 20,225 Consumer real estate 1,772 — — 1,973 3,745 Consumer installment 18 — — — 18 Total $ 5,220 $ — $ — $ 18,938 $ 24,158 Allowance for credit losses $ 90 $ — $ — $ 4,217 $ 4,307 |
Schedule of amortized cost basis of collateral dependent individually evaluated loans by loan class | March 31, 2022 Real Property Miscellaneous Total Commercial real estate $ 1,438 $ — $ 1,438 Consumer real estate 682 — 682 Consumer installment — 5 5 Total $ 2,120 $ 5 $ 2,125 December 31, 2021 Real Property Total Commercial real estate $ 1,712 $ 1,712 Consumer real estate 1,858 1,858 Total $ 3,570 $ 3,570 |
Schedule of amortized cost basis of loans by credit quality indicator and class of loans based on the most recent analysis performed and risk category of loans by class of loans | The tables below present the amortized cost basis of loans by credit quality indicator and class of loans based on the most recent analysis performed at March 31, 2022 and December 31, 2021. Revolving loans converted to term as of the three months ended March 31, 2022 and December 31, 2021 were not material to the total loan portfolio. ($ in thousands) Term Loans Amortized Cost Basis by Origination Year Revolving As of March 31, 2022 2022 2021 2020 2019 2018 Prior Loans Total Commercial, financial and: agriculture Risk Rating Pass $ 35,149 $ 129,950 $ 55,278 $ 48,382 $ 44,072 $ 54,853 $ 87 $ 367,771 Special mention — — 230 681 1,235 7,505 — 9,651 Substandard 38 40 — 1,151 4,921 1,464 — 7,614 Doubtful — — — — — — — — Total commercial, financial and agriculture $ 35,187 $ 129,990 $ 55,508 $ 50,214 $ 50,228 $ 63,822 $ 87 $ 385,036 Commercial real estate: Risk Rating Pass $ 122,802 $ 406,171 $ 293,259 $ 195,948 $ 162,109 $ 414,336 $ — $ 1,594,625 Special mention — 1,326 2,245 1,744 7,764 16,116 — 29,195 Substandard — 5,041 2,613 2,438 16,941 46,986 — 74,019 Doubtful — — — — — — — — Total commercial real estate $ 122,802 $ 412,538 $ 298,117 $ 200,130 $ 186,814 $ 477,438 $ — $ 1,697,839 Consumer real estate: Risk Rating Pass $ 50,294 $ 246,677 $ 148,600 $ 65,615 $ 61,059 $ 159,050 $ 98,248 $ 829,543 Special mention — — — 326 26 3,486 — 3,838 Substandard 785 436 424 898 2,973 7,686 1,438 14,640 Doubtful — — — — — — — — Total consumer real estate $ 51,079 $ 247,113 $ 149,024 $ 66,839 $ 64,058 $ 170,222 $ 99,686 $ 848,021 Consumer installment: Risk Rating Pass $ 5,005 $ 16,200 $ 7,862 $ 3,477 $ 1,294 $ 2,365 $ 3,098 $ 39,301 Special mention — — — — — — — — Substandard — — 26 2 5 16 — 49 Doubtful — — — — — — — — Total consumer installment $ 5,005 $ 16,200 $ 7,888 $ 3,479 $ 1,299 $ 2,381 $ 3,098 $ 39,350 Total Pass $ 213,250 $ 798,998 $ 504,999 $ 313,422 $ 268,534 $ 630,604 $ 101,433 $ 2,831,240 Special mention — 1,326 2,475 2,751 9,025 27,107 — 42,684 Substandard 823 5,517 3,063 4,489 24,840 56,152 1,438 96,322 Doubtful — — — — — — — — Total $ 214,073 $ 805,841 $ 510,537 $ 320,662 $ 302,399 $ 713,863 $ 102,871 $ 2,970,246 ($ in thousands) Term Loans Amortized Cost Basis by Origination Year Revolving As of December 31, 2021 2021 2020 2019 2018 2017 Prior Loans Total Commercial, financial and: agriculture Risk Rating Pass $ 152,798 $ 60,106 $ 52,802 $ 47,988 $ 22,083 $ 43,773 $ 178 $ 379,728 Special mention — 255 749 90 481 29 — 1,604 Substandard — — 1,398 6,184 360 8,242 — 16,184 Doubtful — — — — — — — — Total commercial, financial and agriculture $ 152,798 $ 60,361 $ 54,949 $ 54,262 $ 22,924 $ 52,044 $ 178 $ 397,516 Commercial real estate: Risk Rating Pass $ 402,284 $ 313,288 $ 207,879 $ 177,943 $ 134,234 $ 332,588 $ — $ 1,568,216 Special mention 1,326 2,259 1,782 15,076 2,779 15,519 — 38,741 Substandard 3,904 3,189 1,931 17,147 18,814 31,756 — 76,741 Doubtful — — — — — — — — Total commercial real estate $ 407,514 $ 318,736 $ 211,592 $ 210,166 $ 155,827 $ 379,863 $ — $ 1,683,698 Consumer real estate: Risk Rating Pass $ 243,340 $ 164,359 $ 70,465 $ 66,940 $ 51,988 $ 121,238 $ 98,444 $ 816,774 Special mention — — 331 26 1,746 1,949 — 4,052 Substandard 444 532 1,280 3,410 1,288 9,241 1,633 17,828 Doubtful — — — — — — — — Total consumer real estate $ 243,784 $ 164,891 $ 72,076 $ 70,376 $ 55,022 $ 132,428 $ 100,077 $ 838,654 Consumer installment: Risk Rating Pass $ 17,980 $ 9,245 $ 4,222 $ 1,645 $ 1,088 $ 1,758 $ 3,697 $ 39,635 Special mention — — — — 1 — — 1 Substandard — 26 3 5 8 7 — 49 Doubtful — — — — — — — — Total consumer installment $ 17,980 $ 9,271 $ 4,225 $ 1,650 $ 1,097 $ 1,765 $ 3,697 $ 39,685 Total Pass $ 816,402 $ 546,998 $ 335,368 $ 294,516 $ 209,393 $ 499,357 $ 102,319 $ 2,804,353 Special mention 1,326 2,514 2,862 15,192 5,007 17,497 — 44,398 Substandard 4,348 3,747 4,612 26,746 20,470 49,246 1,633 110,802 Doubtful — — — — — — — — Total $ 822,076 $ 553,259 $ 342,842 $ 336,454 $ 234,870 $ 566,100 $ 103,952 $ 2,959,553 |
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 ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 ($ in thousands) Commercial, Financial and Commercial Consumer Consumer Agriculture Real Estate Real Estate Installment Total Allowance for credit losses: Beginning balance $ 4,873 $ 17,552 $ 7,889 $ 428 $ 30,742 Provision for credit losses — — — — — Loans charged-off (52) (3) (7) (169) (231) Recoveries 53 224 610 222 1,109 Total ending allowance balance $ 4,874 $ 17,773 $ 8,492 $ 481 $ 31,620 Three Months Ended March 31, 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 (986) (2,841) (139) (157) (4,123) Recoveries 83 132 54 300 569 Total ending allowance balance $ 4,158 $ 17,578 $ 10,280 $ 647 $ 32,663 The following table provides the ending balance in the Company’s LHFI and the ACL, broken down by portfolio segment as of March 31, 2022 and December 31, 2021 ($ in thousands). March 31,2022 Commercial, Financial and Commercial Consumer Consumer Agriculture Real Estate Real Estate Installment Total LHFI Individually evaluated $ — $ 1,438 $ 682 $ 5 $ 2,125 Collectively evaluated 385,036 1,696,401 847,339 39,345 2,968,121 Total $ 385,036 $ 1,697,839 $ 848,021 $ 39,350 $ 2,970,246 Allowance for Credit Losses Individually evaluated $ — $ 30 $ — $ — $ 30 Collectively evaluated 4,874 17,743 8,492 481 31,590 Total $ 4,874 $ 17,773 $ 8,492 $ 481 $ 31,620 December 31, 2021 Commercial, Financial and Commercial Consumer Consumer Agriculture Real Estate Real Estate Installment Total LHFI Individually evaluated $ — $ 1,712 $ 1,858 $ — $ 3,570 Collectively evaluated 397,516 1,681,986 836,796 39,685 2,955,983 Total $ 397,516 $ 1,683,698 $ 838,654 $ 39,685 $ 2,959,553 Allowance for Credit Losses Individually evaluated $ — $ 4 $ 2 $ — $ 6 Collectively evaluated 4,873 17,548 7,887 428 30,736 Total $ 4,873 $ 17,552 $ 7,889 $ 428 $ 30,742 |
SUMMARY OF ORGANIZATION - Addit
SUMMARY OF ORGANIZATION - Additional information (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 25, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
SUMMARY OF ORGANIZATION | |||||
Total assets | $ 6,196,095 | $ 6,077,414 | |||
Loans, excluding Loans held for sale | 2,939,000 | ||||
Deposits | 5,437,738 | 5,226,784 | |||
Stockholders' equity | 590,440 | $ 643,949 | $ 676,172 | $ 644,815 | |
Net income | $ 16,829 | $ 16,644 | |||
Dividends on common stock, per share | $ 0.17 |
BUSINESS COMBINATIONS - Summary
BUSINESS COMBINATIONS - Summary of Acquired Identifiable Assets and Liabilities (Details) - Cadence Bank, N.A $ in Thousands | Dec. 03, 2021USD ($) |
Purchase price: | |
Cash | $ 1,000 |
Total purchase price | 1,000 |
Identifiable assets: | |
Cash | 359,916 |
Loans | 40,262 |
Core deposit intangible | 2,890 |
Personal and real property | 9,675 |
Other assets | 135 |
Total assets | 412,878 |
Liabilities and equity: | |
Deposits | 410,171 |
Other liabilities | 407 |
Total liabilities | 410,578 |
Net assets acquired | 2,300 |
Bargain purchase gain | $ (1,300) |
BUSINESS COMBINATIONS - Outstan
BUSINESS COMBINATIONS - Outstanding Principal Balance and Carrying Amount of Loans (Details) - SWG acquisition $ in Thousands | Dec. 31, 2020USD ($) |
Outstanding principal balance | $ 297,528 |
Carrying amount | $ 295,772 |
BUSINESS COMBINATIONS - Unaudit
BUSINESS COMBINATIONS - Unaudited Supplemental Pro Forma Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Business Acquisition [Line Items] | ||
Total revenue | $ 49,796 | $ 48,701 |
Income before income taxes | 21,461 | 21,437 |
Net interest income | ||
Business Acquisition [Line Items] | ||
Total revenue | 38,639 | 39,229 |
Non-interest income | ||
Business Acquisition [Line Items] | ||
Total revenue | $ 11,157 | $ 9,472 |
BUSINESS COMBINATIONS - Additio
BUSINESS COMBINATIONS - Additional Information (Details) $ in Thousands | Dec. 03, 2021USD ($)item | Apr. 03, 2020USD ($)shares | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) |
BUSINESS COMBINATIONS | ||||
Provision for credit losses | $ 0 | $ 0 | ||
SWG acquisition | ||||
BUSINESS COMBINATIONS | ||||
Bargain purchase gain | $ 7,800 | |||
Business combination, acquisition related costs | 0 | |||
Business Combination, Consideration Transferred | $ 47,900 | |||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 2,546,967 | |||
Payments to acquire businesses, gross | $ 2 | |||
Business Acquisition Allocation for Loans Receivable | 394,600 | |||
Business Combination Recognized Assets Acquired and Liabilities Assumed, Discount on Loans Acquired | 2,300 | |||
SWG acquisition | Core Deposits [Member] | ||||
BUSINESS COMBINATIONS | ||||
Finite-lived Intangible Assets Acquired | $ 4,600 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | |||
Cadence Bank, N.A | ||||
BUSINESS COMBINATIONS | ||||
Number of branches | item | 7 | |||
Business Combination, Deposits | $ 410,171 | |||
Business Combination, Loans | 40,262 | |||
Business combination, deposit premium | 1,000 | |||
Provision for credit losses | 370 | |||
Bargain purchase gain | 1,300 | |||
Finite-lived Intangible Assets Acquired | 2,900 | |||
Business combination, acquisition related costs | $ 230 | |||
Business Combination, Consideration Transferred | 1,000 | |||
Payments to acquire businesses, gross | $ 1,000 | |||
Cadence Bank, N.A | Core Deposits [Member] | ||||
BUSINESS COMBINATIONS | ||||
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share Basic [Line Items] | ||
Net income available to common stock holders, basic earnings per share | $ 16,829 | $ 16,644 |
Net income available to common stock holders, diluted earnings per share | $ 16,829 | $ 16,644 |
Effect of dilutive shares: | ||
Weighted average number of shares outstanding, basic earnings per share | 20,697,946 | 21,009,088 |
Restricted stock grants | 149,051 | 191,470 |
Weighted average number of shares outstanding, diluted earnings per share | 20,846,997 | 21,200,558 |
Basic earnings per share | $ 0.81 | $ 0.79 |
Diluted earnings per share | $ 0.81 | $ 0.79 |
EARNINGS APPLICABLE TO COMMON_4
EARNINGS APPLICABLE TO COMMON SHAREHOLDERS - Additional Information (Details) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
EARNINGS APPLICABLE TO COMMON SHAREHOLDERS | ||
Shares of restricted stock granted | 82,123 | 84,578 |
FINANCIAL INSTRUMENTS WITH OF_3
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fixed Rate | ||
Financial instruments with off-balance-sheet risk | ||
Commitments to make loans | $ 123,092 | $ 80,760 |
Unused lines of credit | 221,457 | 213,332 |
Standby letters of credit | 2,692 | 2,586 |
Variable Rate | ||
Financial instruments with off-balance-sheet risk | ||
Commitments to make loans | 15,086 | 23,946 |
Unused lines of credit | 314,120 | 309,791 |
Standby letters of credit | $ 9,164 | $ 9,737 |
FINANCIAL INSTRUMENTS WITH OF_4
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK - Additional Information (Details) - OFF BALANCE SHEET RISK | 3 Months Ended |
Mar. 31, 2022 | |
Minimum [Member] | |
Concentration Risk [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 1.00% |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||
Balance at beginning of period | $ 1,070 | $ 718 |
Balance at end of period | $ 1,070 | 1,070 |
ASC 326 | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||
Balance at beginning of period | $ 718 |
FAIR VALUE DISCLOSURES AND RE_3
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Fair Values of off-Balance Sheet Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Cash and cash equivalents | $ 802,613 | $ 919,713 |
Securities available-for-sale: | ||
US Treasury | 128,993 | 135,158 |
Obligations of U.S. government agencies and sponsored entities | 164,582 | 183,021 |
Municipal securities | 639,253 | 708,502 |
Mortgage-backed securities | 623,117 | 688,298 |
Corporate obligations | 35,732 | 36,853 |
Securities held- to-maturity | 372,062 | |
Loans, net | 2,938,626 | 2,928,811 |
Loans and Leases Receivable, Net Amount | 2,938,626 | 2,928,811 |
Accrued interest receivable | 23,234 | 23,256 |
Liabilities: | ||
Noninterest-bearing | 810,723 | 756,118 |
Interest-bearing deposits | 4,627,015 | 4,470,666 |
Subordinated debentures | 144,801 | 144,726 |
Accrued interest payable | 1,306 | 1,711 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash and cash equivalents | 802,613 | 919,713 |
Securities available-for-sale: | ||
US Treasury | 128,993 | 135,158 |
Obligations of U.S. government agencies and sponsored entities | 0 | 0 |
Municipal securities | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Corporate obligations | 0 | 0 |
Securities held- to-maturity | 0 | |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Liabilities: | ||
Noninterest-bearing | 0 | 0 |
Interest-bearing deposits | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale: | ||
US Treasury | 0 | 0 |
Obligations of U.S. government agencies and sponsored entities | 164,582 | 183,021 |
Municipal securities | 619,625 | 688,379 |
Mortgage-backed securities | 623,117 | 688,298 |
Corporate obligations | 35,689 | 36,810 |
Securities held- to-maturity | 358,395 | |
Loans, net | 0 | 0 |
Accrued interest receivable | 7,542 | 6,838 |
Liabilities: | ||
Noninterest-bearing | 810,723 | 756,118 |
Interest-bearing deposits | 4,572,416 | 4,431,771 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 1,306 | 1,711 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale: | ||
US Treasury | 0 | 0 |
Obligations of U.S. government agencies and sponsored entities | 0 | 0 |
Municipal securities | 19,628 | 20,123 |
Mortgage-backed securities | 0 | 0 |
Corporate obligations | 43 | 43 |
Securities held- to-maturity | 0 | |
Loans, net | 2,967,573 | 2,956,297 |
Accrued interest receivable | 15,692 | 16,418 |
Liabilities: | ||
Noninterest-bearing | 0 | 0 |
Interest-bearing deposits | 0 | 0 |
Subordinated debentures | 156,128 | 156,952 |
Accrued interest payable | 0 | 0 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 802,613 | 919,713 |
Securities available-for-sale: | ||
US Treasury | 128,993 | 135,158 |
Obligations of U.S. government agencies and sponsored entities | 164,582 | 183,021 |
Municipal securities | 639,253 | 708,502 |
Mortgage-backed securities | 623,117 | 688,298 |
Corporate obligations | 35,732 | 36,853 |
Securities held- to-maturity | 358,395 | |
Loans, net | 2,967,573 | 2,956,297 |
Accrued interest receivable | 23,234 | 23,256 |
Liabilities: | ||
Noninterest-bearing | 810,723 | 756,118 |
Interest-bearing deposits | 4,572,416 | 4,431,771 |
Subordinated debentures | 156,128 | 156,952 |
Accrued interest payable | $ 1,306 | $ 1,711 |
FAIR VALUE DISCLOSURES AND RE_4
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Fair Value of Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | $ 1,591,677 | $ 1,751,832 |
U.S Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 128,993 | 135,158 |
Obligations of U.S. government agencies and sponsored entities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 164,582 | 183,021 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 639,253 | 708,502 |
Mortgage-backed securities. | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 623,117 | 688,298 |
Corporate Obligations. | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 35,732 | 36,853 |
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 | 128,993 | 135,158 |
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 | 128,993 | 135,158 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of U.S. government agencies and sponsored entities | ||
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 | 1,443,013 | 1,596,508 |
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 and sponsored entities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 164,582 | 183,021 |
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 | 619,625 | 688,379 |
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 | 623,117 | 688,298 |
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 | 35,689 | 36,810 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Debt securities available-for-sale, at fair value | 19,671 | 20,166 |
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 and sponsored entities | ||
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 | 19,628 | 20,123 |
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 | $ 43 | $ 43 |
FAIR VALUE DISCLOSURES AND RE_5
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Reconciliation of Activity for Assets Measured at Fair Value based on Significant Unobservable (Non-market) Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Bank-Issued Trust Preferred Securities | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Balance, January 1 | $ 43 | $ 235 |
Unrealized (loss) gain included in comprehensive income | 40 | |
Balance at March 31 | 43 | 275 |
Municipal securities | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Balance, January 1 | 20,123 | 20,126 |
Maturities, calls and paydowns | (216) | |
Unrealized (loss) gain included in comprehensive income | (279) | 22 |
Balance at March 31 | $ 19,628 | $ 20,148 |
FAIR VALUE DISCLOSURES AND RE_6
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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Municipal securities | ||
Quantitative Information About Recurring Fair Value Measurements [Line Items] | ||
Fair Value | $ 19,628 | $ 20,123 |
Valuation Technique | Discounted cash flow | Discounted cash flow |
Significant Unobservable Inputs | Discount Rate | Discount Rate |
Range of Inputs, Minimum | 0.70% | 0.50% |
Range of Inputs, Maximum | 2.78% | 1.90% |
Trust Preferred Securities [Member] | ||
Quantitative Information About Recurring Fair Value Measurements [Line Items] | ||
Fair Value | $ 43 | $ 43 |
Valuation Technique | Discounted cash flow | Discounted cash flow |
Significant Unobservable Inputs | Probability of default | Probability of default |
Range of Inputs, Minimum | 2.86% | 2.35% |
Range of Inputs, Maximum | 2.99% | 2.47% |
FAIR VALUE DISCLOSURES AND RE_7
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Fair Value of Assets Measured on Nonrecurring Basis (Details) - Fair Value, Nonrecurring [Member] - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | $ 2,835 | $ 2,565 |
Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 2,095 | 3,564 |
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 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
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 Other Observable Inputs (Level 2) | Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Significant 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 | 2,835 | 2,565 |
Significant Unobservable Inputs (Level 3) | Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | $ 2,095 | $ 3,564 |
FAIR VALUE DISCLOSURES AND RE_8
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Additional Information (Details) | Mar. 31, 2022 |
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 |
SECURITIES - Additional Informa
SECURITIES - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022USD ($)securityshares | Dec. 31, 2021USD ($)security | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Accrued interest receivable | $ 6,500 | $ 6,800 |
Held to maturity, credit loss exposure | 197 | |
Accrued interest receivable of held-to-maturity securities | 756 | 0 |
Carrying value of securities pledged to public deposits | $ 1,019,000 | $ 889,500 |
Number of securities in the portfolio that were in an unrealized loss position | security | 952 | 304 |
Provision for credit losses | $ 0 | $ 0 |
Amount of reserve recorded | $ 0 | |
Securities held-to-maturity classified as nonaccrual | shares | 0 | |
AFS Securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Credit loss recognized | $ 0 | $ 0 |
Financial Asset, Not Past Due [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Securities held to maturity past due 30 days | shares | 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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-sale Securities, Amortized Cost | $ 1,683,844 | $ 1,741,153 |
Available-for-sale Securities, Gross Unrealized Gains | 4,309 | 21,775 |
Available-for-sale Securities, Gross Unrealized Losses | 96,476 | 11,096 |
Available-for-sale securities, Fair Value | 1,591,677 | 1,751,832 |
Held-to-maturity, Amortized Cost | 372,062 | 0 |
Held-to-maturity, Gross Unrealized Losses | 13,667 | |
Held-to-maturity Securities, Fair Value | 358,395 | 0 |
U.S Treasury | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 135,854 | 135,889 |
Available-for-sale Securities, Gross Unrealized Gains | 83 | |
Available-for-sale Securities, Gross Unrealized Losses | 6,861 | 814 |
Available-for-sale securities, Fair Value | 128,993 | 135,158 |
Held-to-maturity, Amortized Cost | 109,476 | |
Held-to-maturity, Gross Unrealized Losses | 2,127 | |
Held-to-maturity Securities, Fair Value | 107,349 | |
Obligations of U.S. Government agencies | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 173,403 | 182,877 |
Available-for-sale Securities, Gross Unrealized Gains | 57 | 1,238 |
Available-for-sale Securities, Gross Unrealized Losses | 8,878 | 1,094 |
Available-for-sale securities, Fair Value | 164,582 | 183,021 |
Held-to-maturity, Amortized Cost | 18,134 | |
Held-to-maturity Securities, Fair Value | 18,134 | |
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 | 684,533 | 698,861 |
Available-for-sale Securities, Gross Unrealized Gains | 2,844 | 12,452 |
Available-for-sale Securities, Gross Unrealized Losses | 48,124 | 2,811 |
Available-for-sale securities, Fair Value | 639,253 | 708,502 |
Held-to-maturity, Amortized Cost | 61,398 | |
Held-to-maturity, Gross Unrealized Losses | 5,092 | |
Held-to-maturity Securities, Fair Value | 56,306 | |
Mortgage-backed securities - residential | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 387,989 | 410,269 |
Available-for-sale Securities, Gross Unrealized Gains | 533 | 4,123 |
Available-for-sale Securities, Gross Unrealized Losses | 19,491 | 3,425 |
Available-for-sale securities, Fair Value | 369,031 | 410,967 |
Held-to-maturity, Amortized Cost | 110,817 | |
Held-to-maturity, Gross Unrealized Losses | 4,048 | |
Held-to-maturity Securities, Fair Value | 106,769 | |
Mortgage-backed securities - commercial | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 266,197 | 277,353 |
Available-for-sale Securities, Gross Unrealized Gains | 508 | 2,917 |
Available-for-sale Securities, Gross Unrealized Losses | 12,619 | 2,939 |
Available-for-sale securities, Fair Value | 254,086 | 277,331 |
Held-to-maturity, Amortized Cost | 62,237 | |
Held-to-maturity, Gross Unrealized Losses | 1,944 | |
Held-to-maturity Securities, Fair Value | 60,293 | |
Corporate obligations | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 35,868 | 35,904 |
Available-for-sale Securities, Gross Unrealized Gains | 367 | 962 |
Available-for-sale Securities, Gross Unrealized Losses | 503 | 13 |
Available-for-sale securities, Fair Value | 35,732 | $ 36,853 |
Held-to-maturity, Amortized Cost | 10,000 | |
Held-to-maturity, Gross Unrealized Losses | 456 | |
Held-to-maturity Securities, Fair Value | $ 9,544 |
SECURITIES - Credit Quality Ind
SECURITIES - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Total | $ 372,062 | $ 0 |
A2 | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Total | 1,422 | |
Aa1/Aa2 | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Total | 12,062 | |
Aaa | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Total | 303,194 | |
Not rated | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Total | $ 55,384 |
SECURITIES - Amortized Cost And
SECURITIES - Amortized Cost And Fair Value Of Debt Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Available-for-Sale, Amortized Cost | ||
Due less than one year | $ 36,378 | |
Due after one year through five years | 248,150 | |
Due after five years through ten years | 395,784 | |
Due greater than ten years | 349,346 | |
Mortgage-backed securities - residential | 387,989 | |
Mortgage-backed securities - commercial | 266,197 | |
Total | 1,683,844 | $ 1,741,153 |
Available-for-Sale, Fair Value | ||
Due less than one year | 36,420 | |
Due after one year through five years | 241,935 | |
Due after five years through ten years | 372,741 | |
Due greater than ten years | 317,464 | |
Mortgage-backed securities - residential | 369,031 | |
Mortgage-backed securities - commercial | 254,086 | |
Total | 1,591,677 | 1,751,832 |
Held-to-maturity, Amortized Cost | ||
Due less than one year | 10,280 | |
Due after one year through five years | 103,433 | |
Due after five years through ten years | 33,969 | |
Due greater than ten years | 51,326 | |
Mortgage-backed securities - residential | 110,817 | |
Mortgage-backed securities - commercial | 62,237 | |
Total | 372,062 | |
Held-to-maturity, Estimated Fair Value | ||
Due less than one year | 10,230 | |
Due after one year through five years | 101,152 | |
Due after five years through ten years | 32,933 | |
Due greater than ten years | 47,018 | |
Mortgage-backed securities - residential | 106,769 | |
Mortgage-backed securities - commercial | 60,293 | |
Total | $ 358,395 | $ 0 |
SECURITIES - Summary of Availab
SECURITIES - Summary of Available For Sale Securities With Unrealized And Unrecognized Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair value, Less than 12 Months | $ 1,205,060 | $ 966,502 |
Fair Value, 12 Months or Longer | 123,683 | 20,938 |
Fair Value, Total | 1,328,743 | 987,440 |
Unrealized Losses, Less than 12 Months | 84,209 | 10,511 |
Unrealized Losses, 12 Months or Longer | 12,266 | 585 |
Unrealized Losses, Total | 96,476 | 11,096 |
Fair Value, Held-to-maturity, Less than 12 Months | 340,261 | |
Fair Value, Held-to-maturity, 12 Months or Longer | 0 | |
Fair Value, Held-to-maturity, Total | 340,261 | |
Unrealized Losses, Held-to-maturity, Less than 12 Months | 13,667 | |
Unrealized Losses, Held-to-maturity, 12 Months or Longer | 0 | |
Unrealized Losses, Held-to-maturity, Total | 13,667 | |
U.S Treasury | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair value, Less than 12 Months | 128,014 | 130,098 |
Fair Value, 12 Months or Longer | 979 | 0 |
Fair Value, Total | 128,993 | 130,098 |
Unrealized Losses, Less than 12 Months | 6,773 | 814 |
Unrealized Losses, 12 Months or Longer | 88 | 0 |
Unrealized Losses, Total | 6,861 | 814 |
Fair Value, Held-to-maturity, Less than 12 Months | 107,349 | |
Fair Value, Held-to-maturity, 12 Months or Longer | 0 | |
Fair Value, Held-to-maturity, Total | 107,349 | |
Unrealized Losses, Held-to-maturity, Less than 12 Months | 2,127 | |
Unrealized Losses, Held-to-maturity, 12 Months or Longer | 0 | |
Unrealized Losses, Held-to-maturity, Total | 2,127 | |
Obligations of U.S. Government agencies | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair value, Less than 12 Months | 149,445 | 121,402 |
Fair Value, 12 Months or Longer | 4,876 | 5,254 |
Fair Value, Total | 154,321 | 126,656 |
Unrealized Losses, Less than 12 Months | 8,449 | 933 |
Unrealized Losses, 12 Months or Longer | 429 | 161 |
Unrealized Losses, Total | 8,878 | 1,094 |
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 | 457,582 | 249,430 |
Fair Value, 12 Months or Longer | 62,050 | 3,692 |
Fair Value, Total | 519,632 | 253,122 |
Unrealized Losses, Less than 12 Months | 41,484 | 2,692 |
Unrealized Losses, 12 Months or Longer | 6,640 | 119 |
Unrealized Losses, Total | 48,124 | 2,811 |
Fair Value, Held-to-maturity, Less than 12 Months | 56,306 | |
Fair Value, Held-to-maturity, 12 Months or Longer | 0 | |
Fair Value, Held-to-maturity, Total | 56,306 | |
Unrealized Losses, Held-to-maturity, Less than 12 Months | 5,092 | |
Unrealized Losses, Held-to-maturity, 12 Months or Longer | 0 | |
Unrealized Losses, Held-to-maturity, Total | 5,092 | |
Mortgage-backed securities - residential | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair value, Less than 12 Months | 287,353 | 284,183 |
Fair Value, 12 Months or Longer | 34,234 | 8,912 |
Fair Value, Total | 321,587 | 293,095 |
Unrealized Losses, Less than 12 Months | 16,315 | 3,228 |
Unrealized Losses, 12 Months or Longer | 3,176 | 197 |
Unrealized Losses, Total | 19,491 | 3,425 |
Fair Value, Held-to-maturity, Less than 12 Months | 106,769 | |
Fair Value, Held-to-maturity, 12 Months or Longer | 0 | |
Fair Value, Held-to-maturity, Total | 106,769 | |
Unrealized Losses, Held-to-maturity, Less than 12 Months | 4,048 | |
Unrealized Losses, Held-to-maturity, 12 Months or Longer | 0 | |
Unrealized Losses, Held-to-maturity, Total | 4,048 | |
Mortgage-backed securities - commercial | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair value, Less than 12 Months | 165,280 | 174,697 |
Fair Value, 12 Months or Longer | 21,506 | 3,038 |
Fair Value, Total | 186,786 | 177,735 |
Unrealized Losses, Less than 12 Months | 10,689 | 2,836 |
Unrealized Losses, 12 Months or Longer | 1,930 | 103 |
Unrealized Losses, Total | 12,619 | 2,939 |
Fair Value, Held-to-maturity, Less than 12 Months | 60,293 | |
Fair Value, Held-to-maturity, 12 Months or Longer | 0 | |
Fair Value, Held-to-maturity, Total | 60,293 | |
Unrealized Losses, Held-to-maturity, Less than 12 Months | 1,944 | |
Unrealized Losses, Held-to-maturity, 12 Months or Longer | 0 | |
Unrealized Losses, Held-to-maturity, Total | 1,944 | |
Corporate obligations | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair value, Less than 12 Months | 17,386 | 6,692 |
Fair Value, 12 Months or Longer | 38 | 42 |
Fair Value, Total | 17,424 | 6,734 |
Unrealized Losses, Less than 12 Months | 499 | 8 |
Unrealized Losses, 12 Months or Longer | 4 | 5 |
Unrealized Losses, Total | 503 | $ 13 |
Fair Value, Held-to-maturity, Less than 12 Months | 9,544 | |
Fair Value, Held-to-maturity, 12 Months or Longer | 0 | |
Fair Value, Held-to-maturity, Total | 9,544 | |
Unrealized Losses, Held-to-maturity, Less than 12 Months | 456 | |
Unrealized Losses, Held-to-maturity, 12 Months or Longer | 0 | |
Unrealized Losses, Held-to-maturity, Total | $ 456 |
LOANS - Composition of Loan Por
LOANS - Composition of Loan Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Loans held for sale | ||||
Total LHFS | $ 8,213 | $ 7,678 | ||
Loans held for investment | ||||
Total loans | 2,970,246 | 2,959,553 | ||
Allowance for credit losses | (31,620) | (30,742) | $ (32,663) | $ (35,820) |
Net LHFI | 2,938,626 | 2,928,811 | ||
Mortgage loans held for sale | ||||
Loans held for sale | ||||
Total LHFS | 8,213 | 7,678 | ||
Commercial, financial and agriculture (1) | ||||
Loans held for investment | ||||
Total loans | 385,036 | 397,516 | ||
Commercial real estate | ||||
Loans held for investment | ||||
Total loans | 1,697,839 | 1,683,698 | ||
Consumer real estate | ||||
Loans held for investment | ||||
Total loans | 848,021 | 838,654 | ||
Consumer installment | ||||
Loans held for investment | ||||
Total loans | $ 39,350 | $ 39,685 |
LOANS - Summary of Loans Classi
LOANS - Summary of Loans Classified as Past Due in Excess of Thirty Days or More and Loans Classified as Non-Accrual (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | $ 8,345 | $ 2,960 |
Past Due 90 Days Or More and Still Accruing | 45 | |
Non- Accrual | 21,910 | 23,418 |
PCD | 2,826 | 4,595 |
Total Past Due and Non- Accrual and PCD | 33,081 | 31,018 |
Total Loans | 2,970,246 | 2,959,553 |
Nonaccrual and PCD with No ACL | 2,000 | 3,149 |
PPP Loans | 19,400 | 41,100 |
Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 986 | 246 |
Non- Accrual | 153 | 190 |
Total Past Due and Non- Accrual and PCD | 1,139 | 436 |
Total Loans | 385,036 | 397,516 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 4,300 | 453 |
Non- Accrual | 18,580 | 19,445 |
PCD | 1,467 | 2,082 |
Total Past Due and Non- Accrual and PCD | 24,347 | 21,980 |
Total Loans | 1,697,839 | 1,683,698 |
Nonaccrual and PCD with No ACL | 1,438 | 1,661 |
Consumer real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 2,965 | 2,140 |
Past Due 90 Days Or More and Still Accruing | 45 | |
Non- Accrual | 3,168 | 3,776 |
PCD | 1,358 | 2,512 |
Total Past Due and Non- Accrual and PCD | 7,491 | 8,473 |
Total Loans | 848,021 | 838,654 |
Nonaccrual and PCD with No ACL | 557 | 1,488 |
Consumer Installment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 94 | 121 |
Non- Accrual | 9 | 7 |
PCD | 1 | 1 |
Total Past Due and Non- Accrual and PCD | 104 | 129 |
Total Loans | 39,350 | $ 39,685 |
Nonaccrual and PCD with No ACL | $ 5 |
LOANS - Detail of Troubled Debt
LOANS - Detail of Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($)loan | |
Financing Receivable, Modifications [Line Items] | |
Number of Loans | loan | 1 |
Outstanding Recorded Investment Pre-Modification | $ 230 |
Outstanding Recorded Investment Post-Modification | $ 230 |
Commercial real estate | |
Financing Receivable, Modifications [Line Items] | |
Number of Loans | loan | 1 |
Outstanding Recorded Investment Pre-Modification | $ 230 |
Outstanding Recorded Investment Post-Modification | $ 230 |
LOANS - Summary of loans modifi
LOANS - Summary of loans modified as TDRs for which there was a payment default within twelve months following the modification (Details) - Trouble debt restructuring $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)loan | Mar. 31, 2021USD ($)loan | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of Loans | loan | 6 | 3 |
Recorded Investment | $ | $ 4,747 | $ 1,065 |
Commercial real estate | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of Loans | loan | 3 | 3 |
Recorded Investment | $ | $ 4,606 | $ 1,065 |
Consumer real estate | Consumer real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of Loans | loan | 3 | |
Recorded Investment | $ | $ 141 |
LOANS - Modifications of Loans
LOANS - Modifications of Loans Performing (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30-89 | $ 8,345 | $ 2,960 |
Past Due 90 days and still accruing | 45 | |
Nonaccrual | 21,910 | 23,418 |
Recorded Investment | 2,970,246 | 2,959,553 |
Allowance for loan losses, Non-Accrual | 3,974 | 4,217 |
Allowance for loan losses, Total | 4,055 | 4,307 |
Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current Loans | 0 | 0 |
Allowance for loan losses, Current Loans | 81 | 90 |
TDRs [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 17,079 | 18,938 |
Recorded Investment | 21,988 | 24,158 |
TDRs [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current Loans | 4,909 | 5,220 |
Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30-89 | 986 | 246 |
Nonaccrual | 153 | 190 |
Recorded Investment | 385,036 | 397,516 |
Commercial, financial and agriculture | TDRs [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 85 | 107 |
Recorded Investment | 103 | 170 |
Commercial, financial and agriculture | TDRs [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current Loans | 18 | 63 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30-89 | 4,300 | 453 |
Nonaccrual | 18,580 | 19,445 |
Recorded Investment | 1,697,839 | 1,683,698 |
Commercial real estate | TDRs [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 16,051 | 16,858 |
Recorded Investment | 19,261 | 20,225 |
Commercial real estate | TDRs [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current Loans | 3,210 | 3,367 |
Consumer real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30-89 | 2,965 | 2,140 |
Past Due 90 days and still accruing | 45 | |
Nonaccrual | 3,168 | 3,776 |
Recorded Investment | 848,021 | 838,654 |
Consumer real estate | TDRs [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 943 | |
Recorded Investment | 2,608 | |
Consumer real estate | TDRs [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current Loans | 1,665 | 1,772 |
Nonaccrual | 1,973 | |
Recorded Investment | 3,745 | |
Consumer Installment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30-89 | 94 | 121 |
Nonaccrual | 9 | 7 |
Recorded Investment | 39,350 | 39,685 |
Consumer Installment | TDRs [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment | 16 | |
Consumer Installment | TDRs [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current Loans | $ 16 | 18 |
Recorded Investment | $ 18 |
LOANS - Collateral Dependent Lo
LOANS - Collateral Dependent Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | $ 2,125 | $ 3,570 |
Real Property | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 2,120 | 3,570 |
Miscellaneous | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 5 | |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 1,438 | 1,712 |
Commercial real estate | Real Property | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 1,438 | 1,712 |
Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 682 | 1,858 |
Consumer real estate | Real Property | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 682 | $ 1,858 |
Consumer Installment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 5 | |
Consumer Installment | Miscellaneous | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | $ 5 |
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 | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Recorded Investment [Line Items] | ||
2022 | $ 214,073 | |
2021 | 805,841 | $ 822,076 |
2020 | 510,537 | 553,259 |
2019 | 320,662 | 342,842 |
2018 | 302,399 | 336,454 |
2017 | 234,870 | |
Prior | 713,863 | 566,100 |
Revolving Loans | 102,871 | 103,952 |
Total | 2,970,246 | 2,959,553 |
Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2022 | 35,187 | |
2021 | 129,990 | 152,798 |
2020 | 55,508 | 60,361 |
2019 | 50,214 | 54,949 |
2018 | 50,228 | 54,262 |
2017 | 22,924 | |
Prior | 63,822 | 52,044 |
Revolving Loans | 87 | 178 |
Total | 385,036 | 397,516 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2022 | 122,802 | |
2021 | 412,538 | 407,514 |
2020 | 298,117 | 318,736 |
2019 | 200,130 | 211,592 |
2018 | 186,814 | 210,166 |
2017 | 155,827 | |
Prior | 477,438 | 379,863 |
Total | 1,697,839 | 1,683,698 |
Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2022 | 51,079 | |
2021 | 247,113 | 243,784 |
2020 | 149,024 | 164,891 |
2019 | 66,839 | 72,076 |
2018 | 64,058 | 70,376 |
2017 | 55,022 | |
Prior | 170,222 | 132,428 |
Revolving Loans | 99,686 | 100,077 |
Total | 848,021 | 838,654 |
Consumer Installment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2022 | 5,005 | |
2021 | 16,200 | 17,980 |
2020 | 7,888 | 9,271 |
2019 | 3,479 | 4,225 |
2018 | 1,299 | 1,650 |
2017 | 1,097 | |
Prior | 2,381 | 1,765 |
Revolving Loans | 3,098 | 3,697 |
Total | 39,350 | 39,685 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2022 | 213,250 | |
2021 | 798,998 | 816,402 |
2020 | 504,999 | 546,998 |
2019 | 313,422 | 335,368 |
2018 | 268,534 | 294,516 |
2017 | 209,393 | |
Prior | 630,604 | 499,357 |
Revolving Loans | 101,433 | 102,319 |
Total | 2,831,240 | 2,804,353 |
Pass [Member] | Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2022 | 35,149 | |
2021 | 129,950 | 152,798 |
2020 | 55,278 | 60,106 |
2019 | 48,382 | 52,802 |
2018 | 44,072 | 47,988 |
2017 | 22,083 | |
Prior | 54,853 | 43,773 |
Revolving Loans | 87 | 178 |
Total | 367,771 | 379,728 |
Pass [Member] | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2022 | 122,802 | |
2021 | 406,171 | 402,284 |
2020 | 293,259 | 313,288 |
2019 | 195,948 | 207,879 |
2018 | 162,109 | 177,943 |
2017 | 134,234 | |
Prior | 414,336 | 332,588 |
Total | 1,594,625 | 1,568,216 |
Pass [Member] | Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2022 | 50,294 | |
2021 | 246,677 | 243,340 |
2020 | 148,600 | 164,359 |
2019 | 65,615 | 70,465 |
2018 | 61,059 | 66,940 |
2017 | 51,988 | |
Prior | 159,050 | 121,238 |
Revolving Loans | 98,248 | 98,444 |
Total | 829,543 | 816,774 |
Pass [Member] | Consumer Installment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2022 | 5,005 | |
2021 | 16,200 | 17,980 |
2020 | 7,862 | 9,245 |
2019 | 3,477 | 4,222 |
2018 | 1,294 | 1,645 |
2017 | 1,088 | |
Prior | 2,365 | 1,758 |
Revolving Loans | 3,098 | 3,697 |
Total | 39,301 | 39,635 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 1,326 | 1,326 |
2020 | 2,475 | 2,514 |
2019 | 2,751 | 2,862 |
2018 | 9,025 | 15,192 |
2017 | 5,007 | |
Prior | 27,107 | 17,497 |
Total | 42,684 | 44,398 |
Special Mention [Member] | Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 230 | 255 |
2019 | 681 | 749 |
2018 | 1,235 | 90 |
2017 | 481 | |
Prior | 7,505 | 29 |
Total | 9,651 | 1,604 |
Special Mention [Member] | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 1,326 | 1,326 |
2020 | 2,245 | 2,259 |
2019 | 1,744 | 1,782 |
2018 | 7,764 | 15,076 |
2017 | 2,779 | |
Prior | 16,116 | 15,519 |
Total | 29,195 | 38,741 |
Special Mention [Member] | Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2019 | 326 | 331 |
2018 | 26 | 26 |
2017 | 1,746 | |
Prior | 3,486 | 1,949 |
Total | 3,838 | 4,052 |
Special Mention [Member] | Consumer Installment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2017 | 1 | |
Total | 1 | |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2022 | 823 | |
2021 | 5,517 | 4,348 |
2020 | 3,063 | 3,747 |
2019 | 4,489 | 4,612 |
2018 | 24,840 | 26,746 |
2017 | 20,470 | |
Prior | 56,152 | 49,246 |
Revolving Loans | 1,438 | 1,633 |
Total | 96,322 | 110,802 |
Substandard [Member] | Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2022 | 38 | |
2021 | 40 | |
2019 | 1,151 | 1,398 |
2018 | 4,921 | 6,184 |
2017 | 360 | |
Prior | 1,464 | 8,242 |
Total | 7,614 | 16,184 |
Substandard [Member] | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 5,041 | 3,904 |
2020 | 2,613 | 3,189 |
2019 | 2,438 | 1,931 |
2018 | 16,941 | 17,147 |
2017 | 18,814 | |
Prior | 46,986 | 31,756 |
Total | 74,019 | 76,741 |
Substandard [Member] | Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2022 | 785 | |
2021 | 436 | 444 |
2020 | 424 | 532 |
2019 | 898 | 1,280 |
2018 | 2,973 | 3,410 |
2017 | 1,288 | |
Prior | 7,686 | 9,241 |
Revolving Loans | 1,438 | 1,633 |
Total | 14,640 | 17,828 |
Substandard [Member] | Consumer Installment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 26 | 26 |
2019 | 2 | 3 |
2018 | 5 | 5 |
2017 | 8 | |
Prior | 16 | 7 |
Total | $ 49 | $ 49 |
LOANS - Activity in Allowance f
LOANS - Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Allowance for loan losses: | ||
Balance at beginning of period | $ 30,742 | $ 35,820 |
Impact of ASC 326 adoption on non-PCD loans | (718) | |
Impact of ASC 326 adoption on PCD loans | 1,115 | |
Loans charged-off | (231) | (4,123) |
Recoveries | 1,109 | 569 |
Balance at end of period | 31,620 | 32,663 |
Commercial, financial and agriculture | ||
Allowance for loan losses: | ||
Balance at beginning of period | 4,873 | 6,214 |
Impact of ASC 326 adoption on non-PCD loans | (1,319) | |
Impact of ASC 326 adoption on PCD loans | 166 | |
Loans charged-off | (52) | (986) |
Recoveries | 53 | 83 |
Balance at end of period | 4,874 | 4,158 |
Commercial real estate | ||
Allowance for loan losses: | ||
Balance at beginning of period | 17,552 | 24,319 |
Impact of ASC 326 adoption on non-PCD loans | (4,607) | |
Impact of ASC 326 adoption on PCD loans | 575 | |
Loans charged-off | (3) | (2,841) |
Recoveries | 224 | 132 |
Balance at end of period | 17,773 | 17,578 |
Consumer real estate | ||
Allowance for loan losses: | ||
Balance at beginning of period | 7,889 | 4,736 |
Impact of ASC 326 adoption on non-PCD loans | 5,257 | |
Impact of ASC 326 adoption on PCD loans | 372 | |
Loans charged-off | (7) | (139) |
Recoveries | 610 | 54 |
Balance at end of period | 8,492 | 10,280 |
Consumer Installment | ||
Allowance for loan losses: | ||
Balance at beginning of period | 428 | 551 |
Impact of ASC 326 adoption on non-PCD loans | (49) | |
Impact of ASC 326 adoption on PCD loans | 2 | |
Loans charged-off | (169) | (157) |
Recoveries | 222 | 300 |
Balance at end of period | $ 481 | $ 647 |
LOANS - Loans and Allowance for
LOANS - Loans and Allowance for Loan Losses, Broken Down by Portfolio Segment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Loans | ||||
Individually evaluated | $ 2,125 | $ 3,570 | ||
Collectively evaluated | 2,968,121 | 2,955,983 | ||
Total | 2,970,246 | 2,959,553 | ||
Allowance for Loan Losses | ||||
Individually evaluated | 30 | 6 | ||
Collectively evaluated | 31,590 | 30,736 | ||
Total | 31,620 | 30,742 | $ 32,663 | $ 35,820 |
Commercial, financial and agriculture | ||||
Loans | ||||
Collectively evaluated | 385,036 | 397,516 | ||
Total | 385,036 | 397,516 | ||
Allowance for Loan Losses | ||||
Collectively evaluated | 4,874 | 4,873 | ||
Total | 4,874 | 4,873 | ||
Commercial real estate | ||||
Loans | ||||
Individually evaluated | 1,438 | 1,712 | ||
Collectively evaluated | 1,696,401 | 1,681,986 | ||
Total | 1,697,839 | 1,683,698 | ||
Allowance for Loan Losses | ||||
Individually evaluated | 30 | 4 | ||
Collectively evaluated | 17,743 | 17,548 | ||
Total | 17,773 | 17,552 | ||
Consumer real estate | ||||
Loans | ||||
Individually evaluated | 682 | 1,858 | ||
Collectively evaluated | 847,339 | 836,796 | ||
Total | 848,021 | 838,654 | ||
Allowance for Loan Losses | ||||
Individually evaluated | 2 | |||
Collectively evaluated | 8,492 | 7,887 | ||
Total | 8,492 | 7,889 | ||
Installment and other | ||||
Loans | ||||
Individually evaluated | 5 | |||
Collectively evaluated | 39,345 | 39,685 | ||
Total | 39,350 | 39,685 | ||
Allowance for Loan Losses | ||||
Collectively evaluated | 481 | 428 | ||
Total | $ 481 | $ 428 |
LOANS - Additional Information
LOANS - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Financing Receivable, Recorded Investment [Line Items] | |||
PPP Loans | $ 19,400 | $ 41,100 | |
Accrued interest receivable for LHFI totaled with no related ACL | 15,700 | 16,400 | |
Amortized cost, PCD loans | 6,700 | 8,600 | |
PCD loans, estimated ACL | 619,000 | 855,000 | |
TDR Period Increase (Decrease), Allowance for Loan and Lease Losses | 1 | $ 0 | |
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 | 1,500 | 89 | |
Total loans, other financial institutions | 107,300 | 118,400 | |
Loans sold to other financial institutions. | 66,900 | 77,800 | |
Loans purchased | 40,400 | 40,600 | |
Provision for Loan and Lease Losses | 0 | 0 | |
Net Recoveries | $ 878 | ||
LGD Rate | 15.00% | ||
Threshold default percentage | 1.00% | ||
Trouble debt restructuring | |||
Financing Receivable, Recorded Investment [Line Items] | |||
TDRs total | $ 22,000 | 24,200 | |
Additional amount committed on TDR loans | 0 | $ 0 | |
TDRs allowance for loan losses | 4,100 | 4,300 | |
Allowance for Loan and Lease Losses Write-offs, Net | $ 0 | $ 0 |
COVID-19 UPDATE (Details)
COVID-19 UPDATE (Details) $ in Millions | Mar. 31, 2022USD ($) |
COVID-19 UPDATE | |
Aggregate outstanding exposure in segments covid-19 | $ 458.7 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Beach Bancorp, Inc. ("BBI") - USD ($) $ in Millions | Apr. 26, 2022 | Mar. 31, 2022 |
SUBSEQUENT EVENTS | ||
Assets | $ 620 | |
Loans | 456 | |
Deposits | $ 492 | |
Subsequent Event | ||
SUBSEQUENT EVENTS | ||
Purchase price | $ 116.7 |