(Mark One) | |||||||||||
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||||||
For the quarterly period ended | |||||||||||
OR | |||||||||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||||||
For the transition period from ____________ to __________ |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
None | N/A | N/A |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||||||||||
☒ | Smaller reporting company | |||||||||||||
Emerging growth company |
Page Number | |||||
Consolidated Balance Sheets at March 31, 2024 (unaudited) and December 31, 2023 | |||||
Consolidated Statements of Income for the three months ended March 31, 2024 and 2023 (unaudited) | |||||
Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2024 and 2023 (unaudited) | |||||
Consolidated Statements of Shareholders’ Equity for the three months ended March 31, 2024 and 2023 (unaudited) | |||||
Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 (unaudited) | |||||
Condensed Notes to the Consolidated Financial Statements (unaudited) | |||||
March 31, 2024 | December 31, 2023 | ||||||||||
(unaudited) | |||||||||||
Assets: | |||||||||||
Cash and due from banks | $ | $ | |||||||||
Interest bearing deposits with banks | |||||||||||
Total cash and cash equivalents | |||||||||||
Securities available for sale, net of allowance for credit losses of | |||||||||||
Securities held to maturity - fair value: $ | |||||||||||
Loans held for sale | |||||||||||
Loans | |||||||||||
Less: Allowance for credit losses | |||||||||||
Net loans | |||||||||||
Premises and equipment, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Accrued interest receivable | |||||||||||
Goodwill | |||||||||||
Other assets | |||||||||||
$ | $ | ||||||||||
Liabilities: | |||||||||||
Deposits | $ | $ | |||||||||
Advances from Federal Home Loan Bank and other borrowings | |||||||||||
Subordinated debentures | |||||||||||
Operating lease liabilities | |||||||||||
Accrued interest payable | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Redeemable common stock owned by the ESOP | |||||||||||
Shareholders' equity: | |||||||||||
Senior Non-Cumulative Perpetual Preferred Stock, Series ECIP, no par value | |||||||||||
Common Stock, par value $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss, net | ( | ( | |||||||||
Less: Redeemable common stock owned by the ESOP | ( | ( | |||||||||
Total shareholders' equity | |||||||||||
$ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Interest income: | |||||||||||
Interest and fees on loans | $ | $ | |||||||||
Taxable securities | |||||||||||
Tax-exempt securities | |||||||||||
Interest bearing bank balances and other | |||||||||||
Total interest income | |||||||||||
Interest expense: | |||||||||||
Deposits | |||||||||||
Short-term borrowings | |||||||||||
Advances from Federal Home Loan Bank | |||||||||||
Other borrowings | |||||||||||
Total interest expense | |||||||||||
Net interest income | |||||||||||
Provision for credit losses | |||||||||||
Net interest income after provision for credit losses | |||||||||||
Other operating income: | |||||||||||
Service charges on deposit accounts | |||||||||||
Mortgage origination income | |||||||||||
Debit card interchange | |||||||||||
Other income | |||||||||||
Total other operating income | |||||||||||
Other operating expenses: | |||||||||||
Salaries and employee benefits expenses | |||||||||||
Net occupancy expenses | |||||||||||
Furniture, equipment and data processing expenses | |||||||||||
Other expenses | |||||||||||
Total other operating expenses | |||||||||||
Income before income taxes | |||||||||||
Income tax expense | |||||||||||
Net income | $ | $ | |||||||||
Earnings per common share - basic | $ | $ | |||||||||
Earnings per common share - diluted | $ | $ | |||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net income | $ | $ | |||||||||
Other comprehensive loss, net of tax: | |||||||||||
Unrealized gains (losses) on securities available for sale | ( | ||||||||||
Tax effect | ( | ||||||||||
Total other comprehensive income (loss), net of tax | ( | ||||||||||
Comprehensive income | $ | $ |
Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Less: Redeemable Common Stock Owned by the ESOP | Total Shareholders' Equity | ||||||||||||||||||||||||||
Preferred Stock | Common Stock | Retained Earnings | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||
January 1, 2023 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||
Cumulative change in accounting principle | ( | ( | |||||||||||||||||||||||||||
Balance at January 1, 2023 (as adjusted for change in accounting principle) | ( | ( | |||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | ||||||||||||||||||||||
Other comprehensive income , net | — | — | — | — | — | — | — | ||||||||||||||||||||||
Shares withheld to satisfy withholding obligation in the vesting of restricted stock | — | — | ( | — | ( | — | — | — | ( | ||||||||||||||||||||
Stock based compensation | — | — | — | — | — | — | — | ||||||||||||||||||||||
Dividends paid ($ | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||
March 31, 2023 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||
January 1, 2024 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||
Net income | — | — | — | — | — | — | — | ||||||||||||||||||||||
Other comprehensive loss, net | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||
Issuance (forfeiture) of restricted stock | — | — | ( | ( | — | — | — | ||||||||||||||||||||||
Shares withheld to satisfy withholding obligation in the vesting of restricted stock | — | — | ( | — | ( | — | — | — | ( | ||||||||||||||||||||
Purchase of Company Stock | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Stock based compensation | — | — | — | — | — | — | — | ||||||||||||||||||||||
Net change fair value of ESOP shares | — | — | — | — | — | — | — | ||||||||||||||||||||||
Dividends paid ($ | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||
March 31, 2024 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income per consolidated statements of income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash from operating activities: | |||||||||||
Provision for credit losses | |||||||||||
Depreciation and amortization | |||||||||||
Net (gain) loss on disposal of premises and equipment | ( | ||||||||||
Net gain on sales of other real estate owned | ( | ||||||||||
Write-downs of other real estate-owned | |||||||||||
Deferred income tax (benefit) expense | ( | ||||||||||
Federal Home Loan Bank stock dividends | ( | ( | |||||||||
Stock based compensation expense | |||||||||||
Origination of loans held for sale | ( | ( | |||||||||
Proceeds from loans held for sale | |||||||||||
Earnings on bank-owned life insurance | ( | ( | |||||||||
Net change in: | |||||||||||
Accrued interest receivable and other assets | ( | ( | |||||||||
Accrued interest payable and other liabilities | ( | ||||||||||
Net cash from operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Purchases of securities available for sale | ( | ( | |||||||||
Maturities and calls of securities available for sale | |||||||||||
Maturities, prepayments and calls of securities held to maturity | |||||||||||
Net (increase) decrease in loans | ( | ||||||||||
Purchases of premises and equipment | ( | ( | |||||||||
Proceeds from sales of premises and equipment | |||||||||||
Proceeds from sales of other real estate owned | |||||||||||
Investment in unconsolidated entities | ( | ( | |||||||||
Distributions from unconsolidated entities | |||||||||||
Proceeds from bank-owned life insurance | |||||||||||
Purchases of Federal Home Loan Bank stock | ( | ||||||||||
Redemptions of Federal Home Loan Bank stock | |||||||||||
Net cash used in investing activities | ( | ( |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash flows from financing activities: | |||||||||||
Net increase (decrease) in: | |||||||||||
Noninterest-bearing deposits | $ | ( | $ | ( | |||||||
Money market, negotiable order of withdrawal, and savings deposits | |||||||||||
Certificates of deposit | |||||||||||
Proceeds from Federal Home Loan Bank advances | |||||||||||
Payments on Federal Home Loan Bank advances | ( | ( | |||||||||
Proceeds from other borrowings | |||||||||||
Payments on other borrowings | ( | ||||||||||
Cash dividends paid on common stock | ( | ( | |||||||||
Purchase of Company stock | |||||||||||
Shares withheld to pay taxes on restricted stock vesting | ( | ( | |||||||||
Net cash from financing activities | |||||||||||
Net change in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Supplemental cash flow information: | |||||||||||
Interest paid | $ | $ | |||||||||
Federal and state income tax payments | |||||||||||
Acquisition of real estate in non-cash foreclosures |
Three Months Ended March 31, | |||||||||||
(In thousands except per share data) | 2024 | 2023 | |||||||||
Net income | $ | $ | |||||||||
Weighted average common shares outstanding | |||||||||||
Diluted effect of unallocated stock | |||||||||||
Diluted effect of stock-based awards | |||||||||||
Diluted common shares | |||||||||||
Basic earnings per common share | $ | $ | |||||||||
Diluted earnings per common share | $ | $ |
Amortized | Gross Unrealized | Allowance for Credit Losses | Fair | ||||||||||||||||||||||||||
(In thousands) | Cost | Gains | Losses | Value | |||||||||||||||||||||||||
March 31, 2024: | |||||||||||||||||||||||||||||
U.S. Treasuries | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
U.S. Government agency obligations | |||||||||||||||||||||||||||||
Residential mortgage-backed securities | |||||||||||||||||||||||||||||
Commercial mortgage-backed securities | |||||||||||||||||||||||||||||
Corporate investments | |||||||||||||||||||||||||||||
State and political subdivisions | |||||||||||||||||||||||||||||
Total available for sale | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
December 31, 2023: | |||||||||||||||||||||||||||||
U.S. Treasuries | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
U.S. Government agency obligations | |||||||||||||||||||||||||||||
Residential mortgage-backed securities | |||||||||||||||||||||||||||||
Commercial mortgage-backed securities | |||||||||||||||||||||||||||||
Asset backed securities | |||||||||||||||||||||||||||||
Corporate investments | |||||||||||||||||||||||||||||
State and political subdivisions | ( | ||||||||||||||||||||||||||||
Total available for sale | $ | $ | $ | $ | ( | $ |
Three Months Ended March 31, | |||||||||||
(In thousands) | 2024 | 2023 | |||||||||
Beginning balance | $ | $ | |||||||||
Impact of adopting CECL | |||||||||||
(Recovery of) provision for credit losses on available for sale securities | |||||||||||
Available for sale security charged off | ( | ||||||||||
Ending Balance | $ | $ |
Amortized | Gross Unrealized | Fair | |||||||||||||||||||||
(In thousands) | Cost | Gains | Losses | Value | |||||||||||||||||||
March 31, 2024: | |||||||||||||||||||||||
States and political subdivisions | $ | $ | $ | $ | |||||||||||||||||||
Total held to maturity | $ | $ | $ | $ | |||||||||||||||||||
December 31, 2023: | |||||||||||||||||||||||
States and political subdivisions | $ | $ | $ | $ | |||||||||||||||||||
Total held to maturity | $ | $ | $ | $ |
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
March 31, 2024: | |||||||||||||||||||||||||||||||||||
Available for sale: | |||||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
U.S. Government agencies | |||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | |||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | |||||||||||||||||||||||||||||||||||
Asset backed securities | |||||||||||||||||||||||||||||||||||
Corporate investments | |||||||||||||||||||||||||||||||||||
States and political subdivisions | |||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Held to maturity: | |||||||||||||||||||||||||||||||||||
States and political subdivisions | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
December 31, 2023: | |||||||||||||||||||||||||||||||||||
Available for sale: | |||||||||||||||||||||||||||||||||||
U.S. Treasuries | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
U.S. Government agencies | |||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | |||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | |||||||||||||||||||||||||||||||||||
Asset backed securities | |||||||||||||||||||||||||||||||||||
Corporate investments | |||||||||||||||||||||||||||||||||||
States and political subdivisions | |||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Held to maturity: | |||||||||||||||||||||||||||||||||||
States and political subdivisions | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ |
Available for Sale | Held to Maturity | ||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | ||||||||||||||||||||
(In thousands) | Cost | Value | Cost | Value | |||||||||||||||||||
March 31, 2024: | |||||||||||||||||||||||
One year or less | $ | $ | $ | $ | |||||||||||||||||||
After one through five years | |||||||||||||||||||||||
After five through ten years | |||||||||||||||||||||||
After ten years | |||||||||||||||||||||||
$ | $ | $ | $ |
Available for Sale | Held to Maturity | ||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | ||||||||||||||||||||
(In thousands) | Cost | Value | Cost | Value | |||||||||||||||||||
March 31, 2024 | $ | $ | $ | $ | |||||||||||||||||||
December 31, 2023 | $ | $ | $ | $ |
(In thousands) | March 31, 2024 | |||||||
State and political subdivisions held-to-maturity: | ||||||||
S&P: AA+, AA, AA- / Moody's: Aa1, Aa2, Aa3 | $ | |||||||
S&P: A+, A, A- / Moody's: A1, A2, A3 | ||||||||
S&P: BBB+, BBB, BBB- / Moody's: Baa, Ba, B | ||||||||
Not rated | ||||||||
$ |
(In thousands) | March 31, 2024 | December 31, 2023 | |||||||||
Secured by real estate: | |||||||||||
Residential properties | $ | $ | |||||||||
Construction and land development | |||||||||||
Farmland | |||||||||||
Other commercial | |||||||||||
Total real estate | |||||||||||
Commercial and industrial loans | |||||||||||
Agricultural production and other loans to farmers | |||||||||||
Consumer and other loans | |||||||||||
Total loans before allowance for credit losses | $ | $ |
(In thousands) | Total Nonaccrual | Nonaccrual with no Allowance for Credit Loss | Past Due 90 days or more and Accruing | ||||||||||||||
March 31, 2024 | |||||||||||||||||
Secured by real estate: | |||||||||||||||||
Residential properties | $ | $ | $ | ||||||||||||||
Construction and land development | |||||||||||||||||
Farmland | |||||||||||||||||
Other commercial | |||||||||||||||||
Total real estate | |||||||||||||||||
Commercial and industrial loans | |||||||||||||||||
Agricultural production and other loans to farmers | |||||||||||||||||
Consumer and other loans | |||||||||||||||||
Total | $ | $ | $ | ||||||||||||||
December 31, 2023 | |||||||||||||||||
Secured by real estate: | |||||||||||||||||
Residential properties | $ | $ | $ | ||||||||||||||
Construction and land development | |||||||||||||||||
Farmland | |||||||||||||||||
Other commercial | |||||||||||||||||
Total real estate | |||||||||||||||||
Commercial and industrial loans | |||||||||||||||||
Agricultural production and other loans to farmers | |||||||||||||||||
Consumer and other loans | |||||||||||||||||
Total | $ | $ | $ |
(In thousands) | Real Estate | Enterprise Value | Accounts Receivable & Inventory | Stock | |||||||||||||||||||
March 31, 2024 | |||||||||||||||||||||||
Secured by real estate: | |||||||||||||||||||||||
Residential properties | $ | $ | $ | $ | |||||||||||||||||||
Construction and land development | |||||||||||||||||||||||
Farmland | |||||||||||||||||||||||
Other commercial | |||||||||||||||||||||||
Total real estate | |||||||||||||||||||||||
Commercial and industrial loans | |||||||||||||||||||||||
Agricultural production and other loans to farmers | |||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
(In thousands) | Real Estate | Enterprise Value | Accounts Receivable & Inventory | Stock | |||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||
Secured by real estate: | |||||||||||||||||||||||
Residential properties | $ | $ | $ | $ | |||||||||||||||||||
Construction and land development | |||||||||||||||||||||||
Farmland | |||||||||||||||||||||||
Other commercial | |||||||||||||||||||||||
Total real estate | |||||||||||||||||||||||
Commercial and industrial loans | |||||||||||||||||||||||
Agricultural production and other loans to farmers | |||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
(In thousands) | Past Due 30-89 Days | Past Due 90 Days or More | Total Past Due | Current | Total Loans | ||||||||||||||||||||||||
March 31, 2024 | |||||||||||||||||||||||||||||
Secured by real estate: | |||||||||||||||||||||||||||||
Residential properties | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Farmland | |||||||||||||||||||||||||||||
Other commercial | |||||||||||||||||||||||||||||
Total real estate | |||||||||||||||||||||||||||||
Commercial and industrial loans | |||||||||||||||||||||||||||||
Agricultural production and other loans to farmers | |||||||||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
(In thousands) | Past Due 30-89 Days | Past Due 90 Days or More | Total Past Due | Current | Total Loans | ||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||
Secured by real estate: | |||||||||||||||||||||||||||||
Residential properties | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Farmland | |||||||||||||||||||||||||||||
Other commercial | |||||||||||||||||||||||||||||
Total real estate | |||||||||||||||||||||||||||||
Commercial and industrial loans | |||||||||||||||||||||||||||||
Agricultural production and other loans to farmers | |||||||||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
Term Loans Amortized Cost Basis by Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Revolving Loans Amortized Cost Basis | Total | |||||||||||||||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total residential real estate | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Current period gross write offs | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Construction & land development: | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total construction & land development | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Current period gross write offs | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Farmland: | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Special mention |
Term Loans Amortized Cost Basis by Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Revolving Loans Amortized Cost Basis | Total | |||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total farmland | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Current period gross write offs | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Other commercial real estate: | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total other commercial real estate | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Current period gross write offs | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Commercial & industrial loans: | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total commercial & industrial loans | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Current period gross write offs | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Agricultural production & other loans to farmers: | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total agricultural production & other loans to farmers | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Current period gross write offs | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Consumer & other loans: | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total consumer & other loans | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Current period gross write offs | $ | $ | $ | $ | $ | $ | $ | $ |
Term Loans Amortized Cost Basis by Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Loans Amortized Cost Basis | Total | |||||||||||||||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total residential real estate | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Current period gross write offs | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Construction & land development: | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total construction & land development | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Current period gross write offs | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Farmland: | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total farmland | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Current period gross write offs | $ | $ | $ | $ | — | $ | $ | $ | $ | $ | 114 | $ | |||||||||||||||||||||||||||||||||||
Other commercial real estate: | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total other commercial real estate | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Current period gross write offs | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Commercial & industrial loans: | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total commercial & industrial loans | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Current period gross write offs | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Loans Amortized Cost Basis | Total | |||||||||||||||||||||||||||||||||||||||
Agricultural production & other loans to farmers: | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total agricultural production & other loans to farmers | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Current period gross write offs | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Consumer & other loans: | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||
Classified | |||||||||||||||||||||||||||||||||||||||||||||||
Total consumer & other loans | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Current period gross write offs | $ | $ | $ | $ | $ | $ | $ | $ |
(In thousands) | Commercial and Industrial | Commercial Real Estate | Residential | Consumer and other | Total | ||||||||||||||||||||||||
Three Months Ended March 31, 2024 | |||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Provision for credit losses | ( | ||||||||||||||||||||||||||||
Recoveries on loans | |||||||||||||||||||||||||||||
Loans charged off | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Period End Allowance Balance Allocated To: | |||||||||||||||||||||||||||||
Individually evaluated | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Collectively evaluated | |||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ |
(In thousands) | Commercial and Industrial | Commercial Real Estate | Residential | Consumer and other | Total | ||||||||||||||||||||||||
Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Impact of adopting ASU 2016-13 | ( | ||||||||||||||||||||||||||||
Provision for loan losses | ( | ||||||||||||||||||||||||||||
Recoveries on loans | |||||||||||||||||||||||||||||
Loans charged off | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Period End Allowance Balance Allocated To: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Collectively evaluated for impairment | |||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ |
Three Months Ended March 31, | |||||||||||
(In thousands) | 2024 | 2023 | |||||||||
Beginning balance | $ | $ | |||||||||
Impact of adopting CECL | |||||||||||
(Recovery of) provision for credit losses on unfunded loan commitments | ( | ( | |||||||||
Ending balance | $ | $ |
Actual | Minimum Requirement to be Well Capitalized | ||||||||||||||||||||||
(In thousands) | Capital Amount | Ratio | Capital Amount | Ratio | |||||||||||||||||||
March 31, 2024: | |||||||||||||||||||||||
Company: | |||||||||||||||||||||||
Community Bank Leverage Ratio | $ | % | $ | % | |||||||||||||||||||
Bank: | |||||||||||||||||||||||
Community Bank Leverage Ratio | $ | % | $ | % |
Actual | Minimum Requirement to be Well Capitalized | ||||||||||||||||||||||
(In thousands) | Capital Amount | Ratio | Capital Amount | Ratio | |||||||||||||||||||
December 31, 2023: | |||||||||||||||||||||||
Company: | |||||||||||||||||||||||
Community Bank Leverage Ratio | $ | % | $ | % | |||||||||||||||||||
Bank: | |||||||||||||||||||||||
Community Bank Leverage Ratio | $ | % | $ | % |
Fair | Fair Value Measurements Using | ||||||||||||||||||||||
(In thousands) | Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
March 31, 2024 | |||||||||||||||||||||||
U.S. Treasuries | $ | $ | $ | $ | |||||||||||||||||||
U.S. Government agency obligations | |||||||||||||||||||||||
Residential mortgage-backed securities | |||||||||||||||||||||||
Commercial mortgage-backed securities | |||||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||
Corporate investments | |||||||||||||||||||||||
State and political subdivisions | |||||||||||||||||||||||
Total securities available for sale | $ | $ | $ | $ |
December 31, 2023 | |||||||||||||||||||||||
U.S. Treasuries | $ | $ | $ | $ | |||||||||||||||||||
U.S. Government agency obligations | |||||||||||||||||||||||
Residential mortgage-backed securities | |||||||||||||||||||||||
Commercial mortgage-backed securities | |||||||||||||||||||||||
Asset backed securities | |||||||||||||||||||||||
Corporate investments | |||||||||||||||||||||||
State and political subdivisions | |||||||||||||||||||||||
Total securities available for sale | $ | $ | $ | $ |
Fair | Fair Value Measurements Using | ||||||||||||||||||||||
(In thousands) | Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Collateral-dependent loans, net of allowance for credit losses: | |||||||||||||||||||||||
March 31, 2024 | $ | $ | $ | $ | |||||||||||||||||||
December 31, 2023 | $ | $ | $ | $ | |||||||||||||||||||
Other real estate owned: | |||||||||||||||||||||||
March 31, 2024 | $ | $ | $ | $ | |||||||||||||||||||
December 31, 2023 | $ | $ | $ | $ |
Qualitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||||||||
(In thousands) | Carrying Value | Valuation Methods | Unobservable Inputs | Range | Weighted Average | ||||||||||||||||||||||||
March 31, 2024 | |||||||||||||||||||||||||||||
Collateral-dependent loans, net of specific allowance | $ | Third-party appraisals | Selling costs | ||||||||||||||||||||||||||
Other real estate owned | $ | Third-party appraisals and internal evaluations | Selling costs |
Qualitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||||||||
(In thousands) | Carrying Value | Valuation Methods | Unobservable Inputs | Range | Weighted Average | ||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||
Collateral-dependent loans, net of specific allowance | $ | Third-party appraisals | Selling costs | ||||||||||||||||||||||||||
Other real estate owned | $ | Third-party appraisals and internal evaluations | Selling costs |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
(In thousands) | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||
Financial assets: | |||||||||||||||||||||||
Level 1 inputs: | |||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Level 2 inputs: | |||||||||||||||||||||||
Securities held to maturity | |||||||||||||||||||||||
FHLB stock | |||||||||||||||||||||||
Accrued interest receivable | |||||||||||||||||||||||
Level 3 inputs: | |||||||||||||||||||||||
Loans held for sale | |||||||||||||||||||||||
Loans, net | |||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||
Level 2 inputs: | |||||||||||||||||||||||
Deposits | |||||||||||||||||||||||
FHLB and other borrowings | |||||||||||||||||||||||
Subordinated debentures | |||||||||||||||||||||||
Accrued interest payable |
(In thousands) | Year of Maturity | Interest Rate | March 31, 2024 | December 31, 2023 | |||||||||||||||||||
First Bancshares of Baton Rouge Statutory Trust I | 2034 | 3 month CME Term SOFR, plus | $ | $ | |||||||||||||||||||
State Capital Statutory Trust IV | 2035 | 3 month CME Term SOFR, plus | |||||||||||||||||||||
BancPlus Statutory Trust II | 2036 | 3 month CME Term SOFR, plus | |||||||||||||||||||||
BancPlus Statutory Trust III | 2037 | 3 month CME Term SOFR, plus | |||||||||||||||||||||
State Capital Master Trust | 2037 | 3 month CME Term SOFR, plus | |||||||||||||||||||||
$ | $ |
Three Months Ended | |||||||||||||||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||||||||||||||
Number of Shares | Weighted Average Grant Date Fair Value | Number of Shares | Weighted Average Grant Date Fair Value | ||||||||||||||||||||
Beginning of period | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Vested | ( | ( | |||||||||||||||||||||
Forfeited | ( | ||||||||||||||||||||||
End of period | $ | $ |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest & Fees | Yield / Rate (4) | Average Balance | Interest & Fees | Yield / Rate (4) | |||||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||
Cash investments: | |||||||||||||||||||||||||||||||||||
Interest-bearing cash deposits | $ | 127,268 | $ | 1,600 | 5.03 | % | $ | 31,635 | $ | 357 | 4.51 | % | |||||||||||||||||||||||
127,268 | 1,600 | 5.03 | % | 31,635 | 357 | 4.51 | % | ||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||||||||
Taxable investment securities | 878,233 | 6,893 | 3.14 | % | 635,344 | 3,066 | 1.93 | % | |||||||||||||||||||||||||||
Tax-exempt investment securities | 55,395 | 342 | 2.47 | % | 64,139 | 380 | 2.37 | % | |||||||||||||||||||||||||||
Total securities | 933,628 | 7,235 | 3.10 | % | 699,483 | 3,446 | 1.97 | % | |||||||||||||||||||||||||||
Loans (1) | 6,082,924 | 91,227 | 6.00 | % | 5,881,779 | 76,747 | 5.22 | % | |||||||||||||||||||||||||||
Federal Home Loan Bank (“FHLB”) stock | 24,964 | 420 | 6.73 | % | 22,781 | 221 | 3.88 | % | |||||||||||||||||||||||||||
Total interest-earning assets | 7,168,784 | 100,482 | 5.61 | % | 6,635,678 | 80,771 | 4.87 | % | |||||||||||||||||||||||||||
Noninterest-earning assets | 464,123 | 448,172 | |||||||||||||||||||||||||||||||||
Total assets | $ | 7,632,907 | $ | 7,083,850 | |||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY: | |||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Interest-bearing transaction deposits | $ | 1,423,982 | $ | 6,261 | 1.76 | % | $ | 1,656,880 | $ | 3,224 | 0.78 | % | |||||||||||||||||||||||
Savings and money market deposits | 2,081,907 | 15,929 | 3.06 | % | 1,860,403 | 10,579 | 2.27 | % | |||||||||||||||||||||||||||
Time deposits | 1,532,386 | 15,752 | 4.11 | % | 810,804 | 3,357 | 1.66 | % | |||||||||||||||||||||||||||
Federal funds purchased | 516 | 8 | 6.20 | % | 6,406 | 79 | 4.93 | % | |||||||||||||||||||||||||||
FHLB advances | 332,804 | 3,902 | 4.69 | % | 269,196 | 3,215 | 4.78 | % | |||||||||||||||||||||||||||
Other borrowings | 5,549 | 89 | 6.42 | % | 889 | 10 | 4.50 | % | |||||||||||||||||||||||||||
Subordinated debentures | 133,682 | 2,267 | 6.78 | % | 133,485 | 2,154 | 6.45 | % | |||||||||||||||||||||||||||
Total interest-bearing liabilities | 5,510,826 | 44,208 | 3.21 | % | 4,738,063 | 22,618 | 1.91 | % | |||||||||||||||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Noninterest-bearing transaction deposits | 1,305,814 | 1,585,862 | |||||||||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 85,558 | 77,818 | |||||||||||||||||||||||||||||||||
Total noninterest-bearing liabilities | 1,391,372 | 1,663,680 | |||||||||||||||||||||||||||||||||
Shareholders’ equity (6) | 730,709 | 682,107 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 7,632,907 | $ | 7,083,850 | |||||||||||||||||||||||||||||||
Net interest income/net interest margin (2) | 56,274 | 3.14 | % | 58,153 | 3.51 | % | |||||||||||||||||||||||||||||
Net interest spread (5) | 2.40 | % | 2.96 | % | |||||||||||||||||||||||||||||||
Taxable equivalent adjustment: | |||||||||||||||||||||||||||||||||||
Tax-exempt investment securities (3) | 110 | 122 | |||||||||||||||||||||||||||||||||
Net interest income/net interest margin (2) | $ | 56,384 | 3.15 | % | $ | 58,275 | 3.51 | % |
Three Months Ended March 31, 2024 Compared with Three Months Ended March 31, 2023 | |||||||||||||||||
Change Due To: | |||||||||||||||||
(Dollars in thousands) | Volume | Rate | Interest Variance | ||||||||||||||
Interest-earning assets: | |||||||||||||||||
Cash investments | $ | 1,202 | $ | 41 | $ | 1,243 | |||||||||||
Investment securities: | |||||||||||||||||
Taxable investment securities | 1,906 | 1,921 | 3,827 | ||||||||||||||
Tax-exempt investment securities | (54) | 16 | (38) | ||||||||||||||
Total securities | 1,852 | 1,937 | 3,789 | ||||||||||||||
Loans, net | 3,017 | 11,463 | 14,480 | ||||||||||||||
Federal Home Loan Bank stock | 37 | 162 | 199 | ||||||||||||||
Total interest-earning assets | $ | 6,108 | $ | 13,603 | $ | 19,711 | |||||||||||
Interest-bearing liabilities: | |||||||||||||||||
Interest-bearing transaction deposits | $ | (1,024) | $ | 4,061 | $ | 3,037 | |||||||||||
Savings and money market deposits | 1,695 | 3,655 | 5,350 | ||||||||||||||
Time deposits | 7,417 | 4,978 | 12,395 | ||||||||||||||
Federal funds purchased | (91) | 20 | (71) | ||||||||||||||
FHLB advances | 746 | (59) | 687 | ||||||||||||||
Other borrowings | 75 | 4 | 79 | ||||||||||||||
Subordinated debentures | 3 | 110 | 113 | ||||||||||||||
Total interest-bearing liabilities | $ | 8,821 | $ | 12,769 | $ | 21,590 | |||||||||||
Net interest income | $ | (2,713) | $ | 834 | $ | (1,879) |
Three Months Ended March 31, | ||||||||||||||
2024 | 2023 | $ Change | % Change | |||||||||||
Loans | $ | 1,911 | $ | 1,420 | $ | 491 | 34.6 | % | ||||||
Off-balance sheet credit exposures | (1,875) | (897) | (978) | 109.0 | % | |||||||||
Provision for credit losses | $ | 36 | $ | 523 | $ | (487) | (93.1) | % |
Three Months Ended March 31, | |||||||||||||||||||||||
(Dollars in thousands) | 2024 | 2023 | $ Change | % Change | |||||||||||||||||||
Noninterest income: | |||||||||||||||||||||||
Service charges on deposit accounts | $ | 5,829 | $ | 6,666 | $ | (837) | (12.6) | % | |||||||||||||||
Mortgage origination income | 968 | 687 | 281 | 40.9 | % | ||||||||||||||||||
Debit card interchange | 2,536 | 2,566 | (30) | (1.2) | % | ||||||||||||||||||
Income from fiduciary activities | 2,275 | 1,906 | 369 | 19.4 | % | ||||||||||||||||||
ATM income | 1,195 | 1,474 | (279) | (18.9) | % | ||||||||||||||||||
Brokerage and insurance fees and commissions | 647 | 637 | 10 | 1.6 | % | ||||||||||||||||||
Life insurance income | 853 | 656 | 197 | 30.0 | % | ||||||||||||||||||
CDFI grants | — | — | — | — | % | ||||||||||||||||||
Other income | 3,073 | 1,247 | 1,826 | 146.4 | % | ||||||||||||||||||
Total | $ | 17,376 | $ | 15,839 | $ | 1,537 | 9.7 | % |
Three Months Ended March 31, | |||||||||||||||||||||||
(Dollars in thousands) | 2024 | 2023 | $ Change | % Change | |||||||||||||||||||
Noninterest expense: | |||||||||||||||||||||||
Salaries and employee benefits expenses | $ | 30,703 | $ | 30,991 | $ | (288) | (0.9) | % | |||||||||||||||
Net occupancy expenses | 4,505 | 4,472 | 33 | 0.7 | % | ||||||||||||||||||
Furniture, equipment and data processing expenses | 7,282 | 7,316 | (34) | (0.5) | % | ||||||||||||||||||
Marketing and promotional expenses | 1,462 | 1,537 | (75) | (4.9) | % | ||||||||||||||||||
Other real estate expenses and losses | 241 | 56 | 185 | 330.4 | % | ||||||||||||||||||
Professional fees | 1,185 | 863 | 322 | 37.3 | % | ||||||||||||||||||
Other expenses | 6,749 | 6,407 | 342 | 5.3 | % | ||||||||||||||||||
Total | $ | 52,127 | $ | 51,642 | $ | 485 | 0.9 | % |
March 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||
(Dollars in thousands) | Carrying Value | % of Total | Carrying Value | % of Total | ||||||||||||||||||||||
Held to Maturity: | ||||||||||||||||||||||||||
(At amortized cost) | ||||||||||||||||||||||||||
Issued by states and political subdivisions | $ | 54,241 | 5.75 | % | $ | 55,170 | 6.05 | % | ||||||||||||||||||
Total held-to-maturity | 54,241 | 5.75 | % | 55,170 | 6.05 | % | ||||||||||||||||||||
Available for Sale: | ||||||||||||||||||||||||||
(At fair value) | ||||||||||||||||||||||||||
U.S. Treasuries | 228,802 | 24.27 | % | 210,118 | 23.06 | % | ||||||||||||||||||||
U.S. Government agency obligations | 483,068 | 51.24 | % | 454,923 | 49.93 | % | ||||||||||||||||||||
Issued by states and political subdivisions | 43,785 | 4.64 | % | 44,191 | 4.85 | % | ||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||
Residential | 74,082 | 7.86 | % | 82,028 | 9.00 | % | ||||||||||||||||||||
Commercial | 12,211 | 1.30 | % | 12,273 | 1.35 | % | ||||||||||||||||||||
Asset-backed securities | — | — | % | 6,949 | 0.76 | % | ||||||||||||||||||||
Corporate investments | 46,556 | 4.94 | % | 45,539 | 5.00 | % | ||||||||||||||||||||
Total available for sale | 888,504 | 94.25 | % | 856,021 | 93.95 | % | ||||||||||||||||||||
Total investment securities | $ | 942,745 | 100.00 | % | $ | 911,191 | 100.00 | % |
Maturity as of March 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
Due in One Year or Less | More Than One Year to Five Years | More Than Five Years to Ten Years | Due After Ten Years | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Weighted Average Yield | Amount | Weighted Average Yield | Amount | Weighted Average Yield | Amount | Weighted Average Yield | |||||||||||||||||||||||||||||||||||||||
Held to maturity: | |||||||||||||||||||||||||||||||||||||||||||||||
Issued by states and political subdivisions | $ | 12,858 | 2.85 | % | $ | 35,066 | 3.02 | % | $ | 5,092 | 3.58 | % | $ | 1,225 | 4.30 | % | |||||||||||||||||||||||||||||||
Total held to maturity | 12,858 | 2.85 | % | 35,066 | 3.02 | % | 5,092 | 3.58 | % | 1,225 | 4.30 | % | |||||||||||||||||||||||||||||||||||
Available for sale: | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasuries | 172,042 | 5.21 | % | 49,364 | 3.95 | % | 7,396 | 4.15 | % | — | — | % | |||||||||||||||||||||||||||||||||||
U.S. Government agency obligations | 88,359 | 0.64 | % | 359,072 | 2.62 | % | 35,637 | 2.60 | % | — | — | % | |||||||||||||||||||||||||||||||||||
Issued by states and political subdivisions | 4,964 | 2.40 | % | 21,774 | 2.91 | % | 14,928 | 3.12 | % | 2,119 | 4.55 | % | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||||||||||||||
Residential | — | — | % | 1,394 | 1.82 | % | 3,716 | 2.81 | % | 68,972 | 2.46 | % | |||||||||||||||||||||||||||||||||||
Commercial | — | — | % | 9,269 | 1.52 | % | 2,656 | 1.58 | % | 286 | 2.46 | % | |||||||||||||||||||||||||||||||||||
Asset-backed securities | — | — | % | — | — | % | — | — | % | — | — | % | |||||||||||||||||||||||||||||||||||
Corporate investments | — | — | % | 1,373 | 6.02 | % | 44,494 | 4.27 | % | 689 | 4.50 | % | |||||||||||||||||||||||||||||||||||
Total available for sale | 265,365 | 3.64 | % | 442,246 | 2.77 | % | 108,827 | 3.44 | % | 72,066 | 2.54 | % | |||||||||||||||||||||||||||||||||||
Total investment securities | $ | 278,223 | 3.60 | % | $ | 477,312 | 2.79 | % | $ | 113,919 | 3.45 | % | $ | 73,291 | 2.57 | % |
Maturity as of December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Due in One Year or Less | More Than One Year to Five Years | More Than Five Years to Ten Years | Due After Ten Years | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Weighted Average Yield | Amount | Weighted Average Yield | Amount | Weighted Average Yield | Amount | Weighted Average Yield | |||||||||||||||||||||||||||||||||||||||
Held to maturity: | |||||||||||||||||||||||||||||||||||||||||||||||
Issued by states and political subdivisions | $ | 13,776 | 1.42 | % | $ | 35,076 | 2.94 | % | $ | 5,093 | 3.61 | % | $ | 1,225 | 4.31 | % | |||||||||||||||||||||||||||||||
Total held to maturity | 13,776 | 1.42 | % | 35,076 | 2.94 | % | 5,093 | 3.61 | % | 1,225 | 4.31 | % | |||||||||||||||||||||||||||||||||||
Available for sale: | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasuries | 171,802 | 5.22 | % | 38,316 | 3.89 | % | — | — | % | — | — | % | |||||||||||||||||||||||||||||||||||
U.S. Government agency obligations | 75,249 | 0.68 | % | 338,867 | 2.25 | % | 38,980 | 2.31 | % | 1,827 | 7.14 | % | |||||||||||||||||||||||||||||||||||
Issued by states and political subdivisions | 2,962 | 2.99 | % | 23,863 | 2.78 | % | 14,667 | 3.13 | % | 2,699 | 4.24 | % | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||||||||||||||
Residential | — | — | % | 1,546 | 1.81 | % | 4,023 | 2.80 | % | 76,459 | 2.56 | % | |||||||||||||||||||||||||||||||||||
Commercial | — | — | % | 9,290 | 1.52 | % | 2,685 | 1.58 | % | 298 | 2.47 | % | |||||||||||||||||||||||||||||||||||
Asset-backed securities | — | — | % | — | — | % | — | — | % | 6,949 | 6.71 | % | |||||||||||||||||||||||||||||||||||
Corporate investments | — | — | % | 1,360 | 6.21 | % | 43,487 | 4.27 | % | 692 | 4.50 | % | |||||||||||||||||||||||||||||||||||
Total available for sale | 250,013 | 3.83 | % | 413,242 | 2.43 | % | 103,842 | 3.25 | % | 88,924 | 3.04 | % | |||||||||||||||||||||||||||||||||||
Total investment securities | $ | 263,789 | 3.70 | % | $ | 448,318 | 2.47 | % | $ | 108,935 | 3.26 | % | $ | 90,149 | 3.06 | % |
As of March 31, 2024 | As of December 31, 2023 | ||||||||||||||||||||||
(Dollars in thousands) | Amount | Percent | Amount | Percent | |||||||||||||||||||
Secured by real estate: | |||||||||||||||||||||||
Residential properties | $ | 1,583,986 | 26.11 | % | $ | 1,551,777 | 25.51 | % | |||||||||||||||
Construction and land development | 676,847 | 11.16 | % | 731,449 | 12.03 | % | |||||||||||||||||
Farmland | 308,577 | 5.09 | % | 309,840 | 5.09 | % | |||||||||||||||||
Other commercial | 2,687,048 | 44.28 | % | 2,666,956 | 43.86 | % | |||||||||||||||||
Total real estate | 5,256,458 | 86.64 | % | 5,260,022 | 86.49 | % | |||||||||||||||||
Commercial and industrial | 624,795 | 10.30 | % | 631,528 | 10.38 | % | |||||||||||||||||
Agricultural production and other loans to farmers | 88,289 | 1.46 | % | 91,976 | 1.51 | % | |||||||||||||||||
Consumer and other | 96,884 | 1.60 | % | 98,485 | 1.62 | % | |||||||||||||||||
Total loans, gross | 6,066,426 | 100.00 | % | 6,082,011 | 100.00 | % | |||||||||||||||||
Allowance for credit losses | (66,840) | (65,872) | |||||||||||||||||||||
Total loans, net | $ | 5,999,586 | $ | 6,016,139 |
As of March 31, 2024 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Due in One Year or Less | More Than One Year to Five | More Than Five Years to Fifteen | After Fifteen Years | Total | ||||||||||||||||||||||||
Secured by real estate: | |||||||||||||||||||||||||||||
Residential properties | $ | 182,493 | $ | 533,894 | $ | 460,252 | $ | 407,347 | $ | 1,583,986 | |||||||||||||||||||
Construction and land development | 317,903 | 317,306 | 30,356 | 11,282 | 676,847 | ||||||||||||||||||||||||
Farmland | 43,549 | 123,813 | 109,972 | 31,243 | 308,577 | ||||||||||||||||||||||||
Other commercial | 333,800 | 1,708,041 | 477,786 | 167,421 | 2,687,048 | ||||||||||||||||||||||||
Total real estate | 877,745 | 2,683,054 | 1,078,366 | 617,293 | 5,256,458 | ||||||||||||||||||||||||
Commercial and industrial | 158,008 | 407,020 | 59,767 | — | 624,795 | ||||||||||||||||||||||||
Agricultural production and other loans to farmers | 32,807 | 54,378 | 1,104 | — | 88,289 | ||||||||||||||||||||||||
Consumer and other loans | 23,379 | 68,148 | 5,357 | — | 96,884 | ||||||||||||||||||||||||
Total loans | $ | 1,091,939 | $ | 3,212,600 | $ | 1,144,594 | $ | 617,293 | $ | 6,066,426 |
As of December 31, 2023 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Due in One Year or Less | More Than One Year to Five | More Than Five Years to Fifteen | After Fifteen Years | Total | ||||||||||||||||||||||||
Secured by real estate: | |||||||||||||||||||||||||||||
Residential properties | $ | 167,444 | $ | 501,115 | $ | 477,595 | $ | 405,623 | $ | 1,551,777 | |||||||||||||||||||
Construction and land development | 330,448 | 336,288 | 51,417 | 13,296 | 731,449 | ||||||||||||||||||||||||
Farmland | 50,778 | 113,066 | 112,791 | 33,205 | 309,840 | ||||||||||||||||||||||||
Other commercial | 317,227 | 1,686,390 | 482,256 | 181,083 | 2,666,956 | ||||||||||||||||||||||||
Total real estate | 865,897 | 2,636,859 | 1,124,059 | 633,207 | 5,260,022 | ||||||||||||||||||||||||
Commercial and industrial | 148,992 | 418,518 | 64,018 | — | 631,528 | ||||||||||||||||||||||||
Agricultural production and other loans to farmers | 45,022 | 46,483 | 471 | — | 91,976 | ||||||||||||||||||||||||
Consumer and other loans | 24,280 | 68,383 | 5,822 | — | 98,485 | ||||||||||||||||||||||||
Total loans | $ | 1,084,191 | $ | 3,170,243 | $ | 1,194,370 | $ | 633,207 | $ | 6,082,011 |
As of March 31, 2024 | |||||||||||||||||
(Dollars in thousands) | Fixed Interest Rates | Floating or Adjustable Rates | Total | ||||||||||||||
Secured by real estate: | |||||||||||||||||
Residential properties | $ | 1,224,358 | $ | 359,628 | $ | 1,583,986 | |||||||||||
Construction and land development | 290,213 | 386,634 | 676,847 | ||||||||||||||
Farmland | 180,227 | 128,350 | 308,577 | ||||||||||||||
Other commercial | 1,970,594 | 716,454 | 2,687,048 | ||||||||||||||
Total real estate | 3,665,392 | 1,591,066 | 5,256,458 | ||||||||||||||
Commercial and industrial | 325,239 | 299,556 | 624,795 | ||||||||||||||
Agricultural production and other loans to farmers | 47,486 | 40,803 | 88,289 | ||||||||||||||
Consumer and other loans | 66,549 | 30,335 | 96,884 | ||||||||||||||
Total loans | $ | 4,104,666 | $ | 1,961,760 | $ | 6,066,426 |
As of December 31, 2023 | |||||||||||||||||
(Dollars in thousands) | Fixed Interest Rates | Floating or Adjustable Rates | Total | ||||||||||||||
Secured by real estate: | |||||||||||||||||
Residential properties | $ | 1,222,057 | $ | 329,720 | $ | 1,551,777 | |||||||||||
Construction and land development | 345,469 | 385,980 | 731,449 | ||||||||||||||
Farmland | 181,753 | 128,087 | 309,840 | ||||||||||||||
Other commercial | 1,977,444 | 689,512 | 2,666,956 | ||||||||||||||
Total real estate | 3,726,723 | 1,533,299 | 5,260,022 | ||||||||||||||
Commercial and industrial | 328,076 | 303,452 | 631,528 | ||||||||||||||
Agricultural production and other loans to farmers | 47,231 | 44,745 | 91,976 | ||||||||||||||
Consumer and other loans | 67,785 | 30,700 | 98,485 | ||||||||||||||
Total loans | $ | 4,169,815 | $ | 1,912,196 | $ | 6,082,011 |
As of March 31, 2024 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Risk Grades 1-6 | Special Mention | Substandard | Doubtful | Total | ||||||||||||||||||||||||
Secured by real estate: | |||||||||||||||||||||||||||||
Residential properties | $ | 1,561,852 | $ | — | $ | 22,134 | $ | — | $ | 1,583,986 | |||||||||||||||||||
Construction and land development | 672,913 | 246 | 3,688 | — | 676,847 | ||||||||||||||||||||||||
Farmland | 306,059 | — | 2,518 | — | 308,577 | ||||||||||||||||||||||||
Other commercial | 2,671,375 | — | 15,673 | — | 2,687,048 | ||||||||||||||||||||||||
Total real estate | 5,212,199 | 246 | 44,013 | — | 5,256,458 | ||||||||||||||||||||||||
Commercial and industrial | 592,234 | 5,794 | 25,441 | 1,326 | 624,795 | ||||||||||||||||||||||||
Agricultural production and other loans to farmers | 87,374 | — | 915 | — | 88,289 | ||||||||||||||||||||||||
Consumer and other | 96,747 | — | 137 | — | 96,884 | ||||||||||||||||||||||||
Total | $ | 5,988,554 | $ | 6,040 | $ | 70,506 | $ | 1,326 | $ | 6,066,426 |
As of December 31, 2023 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Risk Grades 1-6 | Special Mention | Substandard | Doubtful | Total | ||||||||||||||||||||||||
Secured by real estate: | |||||||||||||||||||||||||||||
Residential properties | $ | 1,531,377 | $ | — | $ | 20,400 | $ | — | $ | 1,551,777 | |||||||||||||||||||
Construction and land development | 728,493 | 246 | 2,710 | — | 731,449 | ||||||||||||||||||||||||
Farmland | 306,916 | — | 2,924 | — | 309,840 | ||||||||||||||||||||||||
Other commercial | 2,654,378 | — | 12,578 | — | 2,666,956 | ||||||||||||||||||||||||
Total real estate | 5,221,164 | 246 | 38,612 | — | 5,260,022 | ||||||||||||||||||||||||
Commercial and industrial | 617,896 | — | 12,016 | 1,616 | 631,528 | ||||||||||||||||||||||||
Agricultural production and other loans to farmers | 91,893 | — | 83 | — | 91,976 | ||||||||||||||||||||||||
Consumer and other | 98,332 | — | 153 | — | 98,485 | ||||||||||||||||||||||||
Total | $ | 6,029,285 | $ | 246 | $ | 50,864 | $ | 1,616 | $ | 6,082,011 |
(Dollars in thousands) | March 31, 2024 | December 31, 2023 | |||||||||
Nonaccrual loans: | |||||||||||
Real estate loans: | |||||||||||
Residential properties | $ | 4,360 | $ | 3,180 | |||||||
Construction and land development | 233 | 239 | |||||||||
Farmland | 343 | 642 | |||||||||
Other commercial | 6,393 | 1,613 | |||||||||
Total real estate | 11,329 | 5,674 | |||||||||
Commercial and industrial | 1,820 | 1,523 | |||||||||
Agricultural production and other loans to farmers | — | — | |||||||||
Consumer and other | 59 | 17 | |||||||||
Total nonaccrual loans | 13,208 | 7,214 | |||||||||
90+ days past due and accruing: | |||||||||||
Real estate loans: | |||||||||||
Residential properties | 110 | 270 | |||||||||
Construction and land development | 1,288 | — | |||||||||
Farmland | — | — | |||||||||
Other commercial | 150 | 124 | |||||||||
Total real estate | 1,548 | 394 | |||||||||
Commercial and industrial | 10 | 339 | |||||||||
Agricultural production and other loans to farmers | — | — | |||||||||
Consumer and other | 4 | 28 | |||||||||
Total 90+ days past due and accruing | 1,562 | 761 | |||||||||
Total nonperforming loans | 14,770 | 7,975 | |||||||||
Plus: foreclosed assets | 2,460 | 2,368 | |||||||||
Total nonperforming assets | $ | 17,230 | $ | 10,343 | |||||||
Nonaccrual loans to total loans | 0.22 | % | 0.12 | % | |||||||
Nonperforming loans to total loans | 0.24 | % | 0.13 | % | |||||||
Nonperforming assets to total assets | 0.22 | % | 0.14 | % | |||||||
Allowance for credit losses to nonaccrual loans | 506.06 | % | 913.11 | % |
(Dollars in thousands) | March 31, 2024 | March 31, 2023 | |||||||||
Balance, beginning of period | $ | 65,872 | $ | 42,875 | |||||||
Impact of adopting ASU 2016-13 | — | 20,744 | |||||||||
Charge-offs: | |||||||||||
Residential properties | 114 | 173 | |||||||||
Construction and land development | — | 7 | |||||||||
Farmland | — | 8 | |||||||||
Other commercial | 29 | 56 | |||||||||
Total real estate | 143 | 244 | |||||||||
Commercial and industrial | 668 | 288 | |||||||||
Agricultural production and other loans to farmers | — | 13 | |||||||||
Consumer and other | 629 | 943 | |||||||||
Total charge-offs | 1,440 | 1,488 | |||||||||
Recoveries: | |||||||||||
Residential properties | 59 | 58 | |||||||||
Construction and land development | 4 | 3 | |||||||||
Farmland | 37 | 5 | |||||||||
Other commercial | 13 | 107 | |||||||||
Total real estate | 113 | 173 | |||||||||
Commercial and industrial | 23 | 88 | |||||||||
Agricultural production and other loans to farmers | — | 3 | |||||||||
Consumer and other | 361 | 588 | |||||||||
Total recoveries | 497 | 852 | |||||||||
Net charge-offs | 943 | 636 | |||||||||
Provision for credit losses | 1,911 | 1,420 | |||||||||
Balance, end of period | $ | 66,840 | $ | 64,403 | |||||||
Total loans, end of period (including loans held for sale) | $ | 6,073,545 | $ | 5,960,224 | |||||||
Average loans | $ | 6,082,924 | $ | 5,881,779 | |||||||
Net charge-offs (annualized) to average loans | 0.06 | % | 0.04 | % | |||||||
Allowance for credit losses to total loans | 1.10 | % | 1.08 | % |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Net Charge-offs | Average Loans | Net Charge-offs to Average Loans (Annualized) | Net Charge-offs | Average Loans | Net Charge-offs to Average Loans (Annualized) | |||||||||||||||||||||||||||||
Residential properties | $ | 55 | $ | 1,579,703 | 0.01 | % | $ | 115 | $ | 1,407,039 | 0.03 | % | |||||||||||||||||||||||
Construction and land development | (4) | 685,680 | — | % | 4 | 812,238 | — | % | |||||||||||||||||||||||||||
Farmland | (37) | 309,818 | (0.05) | % | 3 | 283,020 | — | % | |||||||||||||||||||||||||||
Other commercial | 16 | 2,693,386 | — | % | (51) | 2,492,168 | (0.01) | % | |||||||||||||||||||||||||||
Commercial and industrial | 645 | 630,306 | 0.41 | % | 200 | 714,810 | 0.11 | % | |||||||||||||||||||||||||||
Agricultural production and other loans to farmers | — | 80,421 | — | % | 10 | 65,515 | 0.06 | % | |||||||||||||||||||||||||||
Consumer and other | 268 | 97,655 | 1.10 | % | 355 | 103,221 | 1.38 | % | |||||||||||||||||||||||||||
Loans held for sale | — | 5,955 | — | % | — | 3,768 | — | % | |||||||||||||||||||||||||||
Total | $ | 943 | $ | 6,082,924 | 0.06 | % | $ | 636 | $ | 5,881,779 | 0.04 | % |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
(Dollars in thousands) | Amount | Percent | Amount | Percent | |||||||||||||||||||
Residential properties | $ | 21,129 | 31.6 | % | $ | 20,487 | 31.1 | % | |||||||||||||||
Construction and land development | 14,194 | 21.2 | % | 15,494 | 23.5 | % | |||||||||||||||||
Farmland | 1,087 | 1.6 | % | 1,229 | 1.9 | % | |||||||||||||||||
Other commercial | 21,188 | 31.7 | % | 21,044 | 31.9 | % | |||||||||||||||||
Total real estate | 57,598 | 86.2 | % | 58,254 | 88.4 | % | |||||||||||||||||
Commercial and industrial | 8,221 | 12.3 | % | 6,556 | 10.0 | % | |||||||||||||||||
Agricultural production and other loans to farmers | 239 | 0.4 | % | 241 | 0.4 | % | |||||||||||||||||
Consumer and other | 782 | 1.2 | % | 821 | 1.2 | % | |||||||||||||||||
Total allowance for credit losses | $ | 66,840 | 100.0 | % | $ | 65,872 | 100.0 | % |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Average Rate | Percent | Average Balance | Average Rate | Percent | |||||||||||||||||
Non-interest bearing | $ | 1,305,814 | 0.00 | % | 20.58 | % | $ | 1,496,042 | 0.00 | % | 24.82 | % | |||||||||||
Interest bearing: | |||||||||||||||||||||||
Transaction accounts | 1,423,982 | 1.76 | % | 22.45 | % | 1,469,828 | 1.39 | % | 24.39 | % | |||||||||||||
Money market and other savings accounts | 2,081,907 | 3.06 | % | 32.82 | % | 2,017,787 | 2.66 | % | 33.48 | % | |||||||||||||
Certificates of deposit | 1,410,778 | 4.00 | % | 22.24 | % | 1,038,396 | 2.91 | % | 17.23 | % | |||||||||||||
Brokered time deposits | 121,608 | 5.40 | % | 1.92 | % | 4,756 | 5.45 | % | 0.08 | % | |||||||||||||
Total deposits | $ | 6,344,089 | 2.39 | % | 100.00 | % | $ | 6,026,809 | 1.74 | % | 100.00 | % |
(Dollars in thousands) | $250,000 or Greater | Less than $250,000 | Total | Uninsured Portion | |||||||||||||||||||
3 months or less | $ | 95,770 | $ | 174,273 | $ | 270,043 | $ | 48,964 | |||||||||||||||
Over 3 months through 6 months | 122,620 | 180,080 | 302,700 | 75,080 | |||||||||||||||||||
Over 6 months through 12 months | 145,224 | 217,614 | 362,838 | 84,695 | |||||||||||||||||||
Over 12 months | 188,875 | 540,262 | 729,137 | 75,400 | |||||||||||||||||||
Total certificates of deposit | $ | 552,489 | $ | 1,112,229 | $ | 1,664,718 | $ | 284,139 |
(Dollars in thousands) | Balances Outstanding | Weighted Average Rate | ||||||||||||||||||
March 31, 2024 | Maximum Month End | Average Daily | At Period End | During Period | At Period End | |||||||||||||||
Federal funds purchased | $ | — | $ | 516 | $ | — | 6.20 | % | — | % | ||||||||||
Securities sold under agreements to repurchase | — | — | — | — | % | — | % | |||||||||||||
$ | — | $ | — | $ | — | |||||||||||||||
December 31, 2023 | ||||||||||||||||||||
Federal funds purchased | $ | — | $ | 1,642 | $ | — | 4.86 | % | — | % | ||||||||||
Securities sold under agreements to repurchase | — | — | — | — | % | — | % | |||||||||||||
$ | — | $ | 1,642 | $ | — |
(Dollars in thousands) | March 31, 2024 | December 31, 2023 | |||||||||
2024 | $ | 95,010 | $ | 190,013 | |||||||
2025 | 125,013 | 125,013 | |||||||||
2026 | 60,014 | 60,014 | |||||||||
2027 | 14 | 14 | |||||||||
2028 | 5 | 5 | |||||||||
Thereafter | — | — | |||||||||
Total | $ | 280,056 | $ | 375,059 |
(Dollars in thousands) | Year of Maturity | Interest Rate | March 31, 2024 | December 31, 2023 | |||||||||||||||||||
First Bancshares of Baton Rouge Statutory Trust I | 2034 | 3 month CME Term SOFR, plus 2.50% | $ | 4,124 | $ | 4,124 | |||||||||||||||||
State Capital Statutory Trust IV | 2035 | 3 month CME Term SOFR, plus 1.99% | 5,155 | 5,155 | |||||||||||||||||||
BancPlus Statutory Trust II | 2036 | 3 month CME Term SOFR, plus 1.50% | 20,619 | 20,619 | |||||||||||||||||||
BancPlus Statutory Trust III | 2037 | 3 month CME Term SOFR, plus 1.35% | 20,619 | 20,619 | |||||||||||||||||||
State Capital Master Trust | 2037 | 3 month CME Term SOFR, plus 1.46% | 6,186 | 6,186 | |||||||||||||||||||
$ | 56,703 | $ | 56,703 |
(Dollars in thousands) Primary Liquidity – On-Balance Sheet | March 31, 2024 | December 31, 2023 | |||||||||
Cash and cash equivalents | $ | 389,872 | $ | 266,591 | |||||||
Total securities | 942,745 | 911,191 | |||||||||
Less: pledged securities | (106,216) | (122,105) | |||||||||
Total primary liquidity | $ | 1,226,401 | $ | 1,055,677 | |||||||
Ratio of primary liquidity to total deposits | 18.7 | % | 16.7 | % |
Secondary Liquidity – Off-Balance Sheet Borrowing Capacity | March 31, 2024 | December 31, 2023 | |||||||||
Net secured borrowing capacity with the FHLB | $ | 1,720,088 | $ | 1,892,541 | |||||||
Net secured borrowing capacity with the Federal Reserve Bank | 1,328,248 | 515,558 | |||||||||
Unsecured borrowing capacity with correspondent lenders | 198,000 | 218,000 | |||||||||
Available capacity on revolving line of credit | — | 20,000 | |||||||||
Total secondary liquidity | $ | 3,246,336 | $ | 2,646,099 | |||||||
Ratio of primary and secondary liquidity to total deposits | 68.1 | % | 58.5 | % |
Actual | Minimum Requirement to be Well Capitalized | ||||||||||||||||||||||
As of March 31, 2024: | Capital Amount | Ratio | Capital Amount | Ratio | |||||||||||||||||||
Consolidated: | |||||||||||||||||||||||
Community Bank Leverage Ratio | $ | 762,928 | 10.01 | % | $ | 685,626 | 9.00 | % | |||||||||||||||
Bank: | |||||||||||||||||||||||
Community Bank Leverage Ratio | $ | 762,467 | 10.01 | % | $ | 685,296 | 9.00 | % |
Actual | Minimum Requirement to be Well Capitalized | ||||||||||||||||||||||
As of December 31, 2023: | Capital Amount | Ratio | Capital Amount | Ratio | |||||||||||||||||||
Consolidated: | |||||||||||||||||||||||
Community Bank Leverage Ratio | $ | 756,155 | 10.02 | % | $ | 679,472 | 9.00 | % | |||||||||||||||
Bank: | |||||||||||||||||||||||
Community Bank Leverage Ratio | $ | 755,482 | 10.01 | % | $ | 679,129 | 9.00 | % |
As of March 31, 2024 | As of December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Change in Net Interest Income | Change in Economic Value of Equity | Change in Net Interest Income | Change in Economic Value of Equity | ||||||||||||||||||||||||||||||||||||||||||||||
Parallel Rate Shift (basis points) | $ | % | $ | % | $ | % | $ | % | ||||||||||||||||||||||||||||||||||||||||||
300 | $ | (10,195) | (4.1) | % | $ | (89,990) | (11.6) | % | $ | (15,978) | (6.8) | % | $ | (79,469) | (12.4) | % | ||||||||||||||||||||||||||||||||||
200 | $ | (6,674) | (2.7) | % | $ | (60,991) | (7.9) | % | $ | (10,341) | (4.4) | % | $ | (51,902) | (8.1) | % | ||||||||||||||||||||||||||||||||||
100 | $ | (3,276) | (1.3) | % | $ | (31,903) | (4.1) | % | $ | (5,076) | (2.1) | % | $ | (25,440) | (4.0) | % | ||||||||||||||||||||||||||||||||||
Unchanged | $ | — | — | % | $ | — | — | % | $ | — | — | % | $ | — | — | % | ||||||||||||||||||||||||||||||||||
-100 | $ | 710 | 0.3 | % | $ | 26,040 | 3.4 | % | $ | 5,559 | 2.4 | % | $ | 22,024 | 3.4 | % | ||||||||||||||||||||||||||||||||||
-200 | $ | (185) | (0.1) | % | $ | 45,190 | 5.9 | % | $ | 10,292 | 4.4 | % | $ | 38,680 | 6.0 | % | ||||||||||||||||||||||||||||||||||
-300 | $ | (1,491) | (0.6) | % | $ | 57,428 | 7.4 | % | $ | 14,391 | 6.1 | % | $ | 52,515 | 8.2 | % |
2.1* | |||||
3.1 | |||||
3.2 | |||||
4.1 | |||||
4.2 | |||||
4.3 | |||||
4.4 | |||||
4.5 | |||||
4.6 | |||||
31.1+ | |||||
31.2+ | |||||
32.1++ | |||||
32.2++ | |||||
101+ | Inline XBRL Interactive Data | ||||
104+ | Cover Page Interactive Data File (embedded within the Inline XBRL document in Exhibit 101) |
Date: | May 9, 2024 | By: | /s/ William A. Ray | ||||||||
William A. Ray | |||||||||||
Vice Chairman, President and Chief Executive Officer | |||||||||||
(Principal Executive Officer) |
Date: | May 9, 2024 | By: | /s/ Karlen Turbeville | ||||||||
Karlen Turbeville | |||||||||||
Senior Executive Vice President and Chief Financial Officer | |||||||||||
(Principal Financial Officer and Principal Accounting Officer) |
Date: | May 9, 2024 | ||||||||||
/s/ William A. Ray | |||||||||||
William A. Ray | |||||||||||
Vice Chairman, President and Chief Executive Officer |
Date: | May 9, 2024 | ||||||||||
/s/ Karlen Turbeville | |||||||||||
Karlen Turbeville | |||||||||||
Senior Executive Vice President and Chief Financial Officer |
Date: | May 9, 2024 | ||||||||||
/s/ William A. Ray | |||||||||||
William A. Ray | |||||||||||
Vice Chairman, President and Chief Executive Officer |
Date: | May 9, 2024 | ||||||||||
/s/ Karlen Turbeville | |||||||||||
Karlen Turbeville | |||||||||||
Senior Executive Vice President and Chief Financial Officer |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Securities available for sale, allowance for credit losses | $ 0 | $ 2,035 |
Preferred stock, authorized (in shares) | 250,000 | 250,000 |
Preferred stock, shares issued (in shares) | 250,000 | 250,000 |
Preferred stock, shares outstanding (in shares) | 250,000 | 250,000 |
Preferred stock, liquidation value (in USD per share) | $ 250,000 | $ 250,000 |
Common stock, par value per share (in USD per share) | $ 1.00 | $ 1.00 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares, issued (in shares) | 11,611,732 | 11,613,221 |
Common stock outstanding (in shares) | 11,611,732 | 11,613,221 |
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 16,955 | $ 17,079 |
Other comprehensive loss, net of tax: | ||
Unrealized gains (losses) on securities available for sale | (2,668) | 7,039 |
Tax effect | 664 | (1,753) |
Total other comprehensive income (loss), net of tax | (2,004) | 5,286 |
Comprehensive income | $ 14,951 | $ 22,365 |
Consolidated Statements of Shareholders’ Equity - USD ($) $ in Thousands |
Total |
Cumulative Effect, Period of Adoption, Adjustment |
Cumulative Effect, Period of Adoption, Adjusted Balance |
Preferred Stock |
Preferred Stock
Cumulative Effect, Period of Adoption, Adjustment
|
Preferred Stock
Cumulative Effect, Period of Adoption, Adjusted Balance
|
Common Stock |
Common Stock
Cumulative Effect, Period of Adoption, Adjustment
|
Common Stock
Cumulative Effect, Period of Adoption, Adjusted Balance
|
Additional Paid-In Capital |
Additional Paid-In Capital
Cumulative Effect, Period of Adoption, Adjustment
|
Additional Paid-In Capital
Cumulative Effect, Period of Adoption, Adjusted Balance
|
Retained Earnings |
Retained Earnings
Cumulative Effect, Period of Adoption, Adjustment
|
Retained Earnings
Cumulative Effect, Period of Adoption, Adjusted Balance
|
Accumulated Other Comprehensive Income (Loss) |
Accumulated Other Comprehensive Income (Loss)
Cumulative Effect, Period of Adoption, Adjustment
|
Accumulated Other Comprehensive Income (Loss)
Cumulative Effect, Period of Adoption, Adjusted Balance
|
Less: Redeemable Common Stock Owned by the ESOP |
Less: Redeemable Common Stock Owned by the ESOP
Cumulative Effect, Period of Adoption, Adjustment
|
Less: Redeemable Common Stock Owned by the ESOP
Cumulative Effect, Period of Adoption, Adjusted Balance
|
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Preferred stock, beginning balance (in shares) at Dec. 31, 2022 | 250,000 | 0 | 250,000 | ||||||||||||||||||
Shares outstanding, beginning balance (in shares) at Dec. 31, 2022 | 11,599,595 | 0 | 11,599,595 | ||||||||||||||||||
Shareholders' equity, beginning balance at Dec. 31, 2022 | $ 601,116 | $ (24,953) | $ 576,163 | $ 250,000 | $ 0 | $ 250,000 | $ 11,599 | $ 0 | $ 11,599 | $ 122,890 | $ 0 | $ 122,890 | $ 356,685 | $ (24,953) | $ 331,732 | $ (43,074) | $ 0 | $ (43,074) | $ (96,984) | $ 0 | $ (96,984) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Net income | 17,079 | 17,079 | |||||||||||||||||||
Other comprehensive income (loss), net | 5,286 | 5,286 | |||||||||||||||||||
Shares withheld to satisfy withholding obligation in the vesting of restricted stock (in shares) | (241) | ||||||||||||||||||||
Shares withheld to satisfy withholding obligation in the vesting of restricted stock | (16) | (16) | |||||||||||||||||||
Stock based compensation | 1,004 | 1,004 | |||||||||||||||||||
Dividends paid | (5,220) | (5,220) | |||||||||||||||||||
Preferred stock, ending balance (in shares) at Mar. 31, 2023 | 250,000 | ||||||||||||||||||||
Shares outstanding, ending balance (in shares) at Mar. 31, 2023 | 11,599,354 | ||||||||||||||||||||
Shareholders' equity, ending balance at Mar. 31, 2023 | $ 594,296 | $ 250,000 | $ 11,599 | 123,878 | 343,591 | (37,788) | (96,984) | ||||||||||||||
Preferred stock, beginning balance (in shares) at Dec. 31, 2023 | 250,000 | 250,000 | |||||||||||||||||||
Shares outstanding, beginning balance (in shares) at Dec. 31, 2023 | 11,613,221 | ||||||||||||||||||||
Shareholders' equity, beginning balance at Dec. 31, 2023 | $ 640,053 | $ 250,000 | $ 11,613 | 123,611 | 370,955 | (31,128) | (84,998) | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Net income | 16,955 | 16,955 | |||||||||||||||||||
Other comprehensive income (loss), net | (2,004) | (2,004) | |||||||||||||||||||
Issuance of restricted stock (in shares) | (1,240) | ||||||||||||||||||||
Issuance of restricted stock | 0 | $ (1) | 1 | ||||||||||||||||||
Shares withheld to satisfy withholding obligation in the vesting of restricted stock (in shares) | (249) | ||||||||||||||||||||
Shares withheld to satisfy withholding obligation in the vesting of restricted stock | (14) | (14) | |||||||||||||||||||
Stock based compensation | 1,178 | 1,178 | |||||||||||||||||||
Net change fair value of ESOP shares | 0 | 0 | |||||||||||||||||||
Dividends paid | $ (5,458) | (5,458) | |||||||||||||||||||
Preferred stock, ending balance (in shares) at Mar. 31, 2024 | 250,000 | 250,000 | |||||||||||||||||||
Shares outstanding, ending balance (in shares) at Mar. 31, 2024 | 11,611,732 | ||||||||||||||||||||
Shareholders' equity, ending balance at Mar. 31, 2024 | $ 650,710 | $ 250,000 | $ 11,612 | $ 124,776 | $ 382,452 | $ (33,132) | $ (84,998) |
Consolidated Statements of Shareholders’ Equity (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid (in USD per share) | $ 0.47 | $ 0.45 |
Basis of Presentation |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation BancPlus Corporation (the “Company”) is a bank holding company headquartered in Ridgeland, Mississippi operating in one reportable segment. BankPlus (the “Bank”), the principal operating subsidiary and sole banking subsidiary of the Company, is a commercial bank primarily engaged in the business of commercial and consumer banking. In addition to general and consumer banking, other products and services offered though the Bank’s subsidiaries include certain insurance and annuity services, asset and investment management and financial planning services. Oakhurst Development, Inc. (“Oakhurst”) is a real estate subsidiary originally formed by the Company to liquidate a real estate development that was acquired by the Bank through foreclosure in 2002. Oakhurst became active again in March 2009 and holds loans. The unaudited interim consolidated financial statements include the accounts of the Company and all other entities in which the Company has a controlling financial interest, and reflect all adjustments (consisting of normal recurring adjustments) that are necessary in the opinion of the Company’s management to fairly present the financial position, results of operations and cash flows of the Company. They have been derived from the audited consolidated financial statements for the fiscal year ended December 31, 2023; however, certain notes and information have been omitted from the interim periods. Therefore, these unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2023. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. The accounting and financial reporting policies followed by the Company conform, in all material respects, to the accounting principles generally accepted in the United States (“GAAP”) and to general practices within the financial services industry. The results of operations for the interim periods are not necessarily indicative of the results to be expected for future interim periods or for the entire year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The allowance/provision for credit losses, the fair value of financial instruments and the status of contingencies are particularly subject to change. Material estimates that are subject to significant change in the near term are the allowance for credit losses, provision for credit losses, valuation of other real estate owned and fair values of financial instruments. Actual results could differ from these estimates. Unless otherwise indicated, references to “BancPlus” refer to BancPlus Corporation and its subsidiaries, on a consolidated basis, and reference to “BankPlus” refer to BankPlus, our wholly-owned subsidiary, as applicable. Effect of Recently Adopted Accounting Standards Accounting Standards Update 2023-02 (“ASU 2023-02”), “Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” In March 2023, the FASB issued ASU 2023-02 which allows entities to elect to account for tax equity investments using the proportional amortization method, regardless of the tax credit program from which the income tax credits are received, if certain conditions are met. ASU 2023-02 is effective for the Company for annual and interim periods beginning on January 1, 2024. The adoption of ASU 2023-02 did not materially impact the Company’s consolidated financial statements. Accounting Standards Update 2023-07 (“ASU 2023-07”), “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” In November 2023, the FASB issued ASU 2023-07 which expands segment disclosure requirements for public entities to require disclosure of significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. ASU 2023-07 is effective for the Company for annual and interim periods beginning on January 1, 2024. The adoption of ASU 2023-07 did not materially impact the Company’s consolidated financial statements. Effect of Recently Issued, But Not Yet Effective Accounting Standards Accounting Standards Update 2023-09 (“ASU 2023-09”), “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” In December 2023, the FASB issued ASU 2023-09 which requires entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if items meet a quantitative threshold. ASU 2023-09 also requires entities to disclose income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold, among other things. ASU 2023-09 is effective for the Company for annual and interim periods beginning on January 1, 2025, though early adoption is permitted. The adoption of ASU 2023-09 is not expected to materially impact the Company’s consolidated financial statements.
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Earnings Per Share |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income available to common shareholders by the weighted number of common shares outstanding during the period and the number of common shares that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares outstanding during the reporting period.
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Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities The following is a summary of the amortized cost and fair value of securities available for sale.
Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. All mortgage-backed securities in the above tables were issued or guaranteed by U.S. government agencies or sponsored agencies. At March 31, 2024, the Company had an allowance for credit losses on available for sale securities of zero. The following table provides a roll-forward of the allowance for credit losses on available for sale securities for the periods presented.
The following is a summary of the amortized cost and fair value of securities held to maturity.
Provided below is a summary of investment securities without an allowance for credit losses that were in an unrealized loss position and the length of time that individual securities have been in a continuous loss position.
The number of debt securities in an unrealized loss position increased from 317 at December 31, 2023 to 325 at March 31, 2024. 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 unrealized losses on debt securities have not been recognized into income because 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 bases, which may be at maturity. The amortized cost and fair value of debt securities, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers have the right to call or prepay certain obligations with, or without, call or prepayment penalties.
The following is a summary of the amortized cost and fair value for investment securities which were pledged to secure public deposits and for other purposes required or permitted by law.
The Company monitors the credit quality of held-to-maturity debt securities through the use of credit ratings. The Company monitors the credit rating on a quarterly basis. The following table summarizes the amortized cost basis of held-to-maturity debt securities at March 31, 2024 by credit rating:
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Loans |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | Loans The following is a summary of the Company’s loan portfolio by loan class.
Loans are stated at the amount of unpaid principal net of discounts and premiums on acquired loans, before allowance for credit losses. Interest on loans is calculated using the simple interest method on daily balances of the principal amount outstanding. Loan Origination/Risk Management/Credit Concentration – The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. The Company’s Board of Directors reviews and approves these policies and procedures on a regular basis. Although the Company has a diversified loan portfolio, the Company has concentrations of credit risks related to the real estate market, including residential, commercial, and construction and land development lending. Most of the Company’s lending activity occurs within Mississippi, Alabama, Louisiana, and Florida. The risk characteristics of the Company’s material portfolio segments are as follows: Residential Real Estate Loans – The residential real estate loan portfolio consists of residential loans for single and multifamily properties. Residential loans are generally secured by owner occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers and can be impacted by economic conditions within their market area. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Commercial Real Estate Loans – Commercial real estate loans include construction and land development loans, loans secured by farmland and other commercial real estate loans. Construction and land development loans are usually based upon estimates of costs and estimated value of the completed project and include independent appraisal reviews and a financial analysis of the developers and property owners. Sources of repayment of these loans may include permanent loans, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are considered to be higher risk than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, general economic conditions and the availability of long-term financing. Farmland loans are generally made for the purpose of acquiring land devoted to crop production or livestock, the propagation of timber or the operation of a similar type of business on the secured property. Sources of repayment for these loans generally include income generated from operations of a business on the property, rental income, or sales of timber. Repayment may be impacted by changes in economic conditions which affect underlying collateral values. Commercial real estate loans typically involve larger principal amounts and repayment of these loans is generally dependent on the successful operations of the property securing the loan or the business conducted on the property securing the loan. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Management monitors and evaluates commercial real estate loans based on collateral and risk grade criteria. Commercial and Industrial Loans – The commercial and industrial loan portfolio consists of loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchase or other expansion projects. Commercial loan underwriting standards are designed to promote relationship banking rather than transactional banking and are underwritten based on the borrower’s expected ability to profitably operate its business. The cash flows of borrowers, however, may not be as expected and collateral securing these loans may fluctuate in value. Most commercial loans are secured by assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. In the case of loans secured by accounts receivable, the availability of funds for repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Agricultural production and other loans to farmers - The agricultural production and other loans to farmers portfolio consists of loans for the purpose of financing agricultural production, the growing and storing of crops, the marketing, and the carrying of agricultural products. This portfolio also includes loans for the purposes of breeding, raising, fattening, or marketing livestock, fish production, and forest and timber production as well as any other loans to made to farmers not secured by real estate. Sources of repayment for these loans generally include income generated from the operations of the business. Consumer and Other Loans – The consumer and other loan portfolio consists of various term and line of credit loans such as automobile loans and loans for other personal purposes. Repayment for these types of loans will come from a borrower’s income sources that are typically independent of the loan purpose. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Company’s market area) and the creditworthiness of a borrower. Loans that are 30 days or more past due based on payments received and applied to the loan are considered delinquent. Accrual of interest is discontinued on a loan when management believes, after considering economic and business conditions and collection efforts, that a borrower's financial condition is such that collection of interest, but not necessarily principal, is doubtful. A loan is typically placed on non-accrual when the contractual payment of principal or interest becomes 90 days past due unless the loan is well-secured and in the process of collection. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. When a loan is placed on non-accrual status, any interest that is accrued, but not collected, is reversed against interest income. Payments subsequently received on non-accrual loans are applied to principal. Interest income is recognized to the extent that cash payments are received in excess of principal due. A loan may return to accrual status when principal and interest payments are no longer past due and collectability is reasonably assured. The following table presents the amortized cost basis of nonaccrual loans, segregated by class as of March 31, 2024 and December 31, 2023.
A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. During the three months ended March 31, 2024, there were no significant changes to the collateral which secures the collateral-dependent loans, whether due to general deterioration or other reason. The following table presents the amortized cost basis of collateral-dependent loans by class and collateral type as of March 31, 2024 and December 31, 2023.
An age analysis of past due loans (including both accruing and non-accruing loans) segregated by class of loans is as follows:
Modifications to Borrowers Experiencing Financial Difficulty – From time to time, the Company may modify certain loans to borrowers who are experiencing financial difficulty. In some cases, these modifications result in new loans. Loan modifications to borrowers experiencing financial difficulty may be in the form of principal forgiveness, interest rate reduction, term extension, other-than-insignificant payment delay or a combination thereof, among other things. There were zero loan modifications to borrowers experiencing financial difficulty during the three months ended March 31, 2024 and 2023.
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Allowance for Credit Losses |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses | Allowance for Credit Losses As management evaluates the allowance for credit losses, it is categorized based on specific allocations and general allocations for each major loan category for loans not individually evaluated or deemed collateral-dependent or classified, segmented by loan class based on historical loss experience and other risk factors. In assessing general economic conditions, management monitors several factors, including regional and national economic conditions, real estate market conditions and recently enacted regulations with potential economic effects. Credit Quality Indicators – The Company utilizes a risk grading matrix to assign a grade to each of its commercial and real estate loans. Loans are rated on a scale of 1 to 10. A description of the general characteristics of the 10 risk ratings is as follows: •Risk Grades 1, 2, 3, 4 and 5 – These grades include loans to borrowers of solid credit quality with no higher than normal risk of loss. Borrowers in these categories have satisfactory financial strength and adequate cash flow coverage to service debt requirements. Collateral type and quality, as well as protection, are adequate. The borrower’s management is strong and capable, financial information is timely and accurate, and guarantor support is strong. •Risk Grade 6 – Pass and Watch – Loans in this category are currently protected, but risks are emerging that warrant more than normal attention and have above average risk of loss. These factors require a higher level of monitoring and may include emerging balance sheet weaknesses, strained liquidity, increased leverage ratio, and weakening management. Collateral support is less marketable or limited use and, although the protection is sufficient, the loan-to-value ratio may not meet policy guidelines. Guarantors may have a limited ability and willingness to provide intermediate support. Also, considerations surrounding industry deterioration, increased competition and minor policy exceptions concerning structure or amortization may affect the rating of these loans. •Risk Grade 7 – Special Mention – The Company’s special mention rating is intended to closely align with the regulatory definition. A special mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these weaknesses may result in deterioration of repayment prospects. These weaknesses may include deteriorating balance sheets, strained liquidity and elevated leverage ratios. Cash flow and profitability are marginally sufficient to service debt and collateral is exhibiting signs of decline in value; however, protection is currently sufficient. Limited management experience or weaknesses have emerged requiring more than normal supervision and uncertainties regarding the quality of the financials are not explained. Guarantor has very limited ability and willingness to provide short-term support. Moderate policy exceptions concerning structure or amortization may be considered in order to provide relief to the borrower. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. •Risk Grade 8 – Substandard – A loan in this category is inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged. Assets so classified have a well-defined weakness that jeopardizes the liquidation of the debt. Factors affecting these loans may include balance sheet deterioration that has resulted in illiquid, highly leveraged or deficit net worth, cash flow that is not able to service debts as structured, collateral protection that may be inadequate, guarantor support that may be virtually non-existent, and management that is poor. Loans may require a major policy exception concerning structure or amortization. They are characterized by the distinct possibility that the Company will incur some loss if the deficiencies are not corrected. •Risk Grade 9 – Doubtful – Loans classified doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. •Risk Grade 10 – Loss – Loans are considered uncollectible and of such little value that continuing to carry them as an active asset is not warranted. It does not mean that there will be no recovery, but, rather, it is not practical or desirable to defer writing off these assets even though a partial recovery may be possible in the future. Pass loans for the Company include loans in Risk Grades 1 - 6. Special mention loans for the Company include loans in Risk Grade 7. Classified loans for the Company include loans in Risk Grades 8, 9 and 10. Loans may be classified but not considered individually evaluated or collateral-dependent, due to one of the following reasons: (i) the loan falls below the established minimum dollar thresholds for individual evaluation or (ii) the loan was individually evaluated, but not deemed to be collateral-dependent. The following table reflects loans by credit quality indicator and origination year at March 31, 2024. Loans acquired are shown in the table by origination year. The Company had an immaterial amount of revolving loans converted to term loans at March 31, 2024.
The following table reflects loans by credit quality indicator and origination year at December 31, 2023. Loans acquired are shown in the table by origination year. The Company had an immaterial amount of revolving loans converted to term loans at December 31, 2023.
Allowance for Credit Losses on Loans Held for Investment (“LHFI”) The allowance for credit loss represents the estimated amount considered necessary to cover lifetime expected credit losses inherent in financial assets at the balance sheet date. The lifetime estimate also considers economic conditions. Although management strives to maintain an allowance it deems adequate, future economic changes, deterioration of borrowers' creditworthiness, and the impact of examinations by regulatory agencies all could cause changes to BancPlus' allowance for credit losses. Transactions in the allowance for credit losses and balances in the loan portfolio by loan segment are as follows:
The allowance for credit losses on LHFI increased for the three months ended March 31, 2024 primarily as a result of provision for credit losses on commercial and industrial loans. Accrued interest receivable on loans, reported as a component of accrued interest receivable on the balance sheet, totaled approximately $27.1 million at March 31, 2024 and is excluded from the estimate of credit losses.
Allowance for Credit Losses on Unfunded Loan Commitments The Company maintains a separate allowance for credit losses on unfunded loan commitments, which is included in Other liabilities in the Company’s Consolidated Balance Sheets. The following table provides a roll-forward of the allowance for credit losses on unfunded loan commitments for the periods presented.
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Regulatory Matters |
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Regulatory Matters | Regulatory Matters The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by state and federal banking agencies. Failure to meet minimum capital requirements triggers certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the consolidated financial statements. In 2019, the federal bank regulatory agencies finalized a rule that simplifies capital requirements for qualifying community banks by providing an option to use a simple leverage ratio to measure capital adequacy and to not calculate risk-based capital ratios. A qualifying community bank has less than $10 billion in total consolidated assets, limited amounts of off-balance-sheet exposures and trading assets and liabilities, and a leverage ratio greater than 9.0%. The community bank leverage ratio (“CBLR”) framework was effective on January 1, 2020, and the Company and the Bank elected to adopt the optional CBLR framework in the third quarter of 2022, as an alternative to the generally applicable capital rules. A final rule adopted by the federal banking agencies in February 2019 provides banking organizations with the option to phase in, over a three-year period, the adverse day-one regulatory capital effects of the adoption of CECL. The Company adopted CECL in the first quarter of 2023 and has elected to utilize the three-year transition period. The Bank is also subject to capital requirements under the prompt corrective action regime. The prompt corrective action framework applies only to insured depository institutions, such as the Bank, and not to their holding companies, such as the Company. As of March 31, 2024, the Bank maintained a leverage ratio of more than 9.0% and, as an institution that has elected to adopt the CBLR framework, the Bank was therefore categorized as well capitalized under the regulatory framework for prompt corrective action. The following table presents actual and required capital ratios for the Company and the Bank under the CBLR and prompt corrective action regulations for the relevant periods.
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Fair Value |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Financial Instruments Measured at Fair Value 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 asset or liability in an orderly transaction between market participants on the measurement date. The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Valuations within these levels are based upon: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access as of the measurement date Level 2 Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are significant to the fair value of the assets or liabilities that reflect a company’s own assumptions about the assumptions that market participants would use in pricing assets or liabilities Management monitors the availability of observable market data to assess the appropriate classification of assets and liabilities within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. There were no transfers of financial instruments between fair value levels for any period presented. The Company used the following methods and significant assumptions to estimate fair value. Securities – The Company utilizes an independent pricing service to advise it on the value of the securities portfolio. Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. For these investments, the inputs used by the pricing service to determine fair value may include one, or a combination of several, observable inputs such as benchmark yields, reported trades, benchmark securities, bids, offers and reference data market research publications and are classified within Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. For Level 3 securities, in addition to the inputs noted above, inputs used by the pricing service to determine fair value may also include estimated duration, municipal bond interest rate curve, and tax effected yield. There were no Level 3 securities as of March 31, 2024 or December 31, 2023. The Company’s treasury department and Asset Liability Management Committee review the aggregate fair values of the securities portfolio. Collateral-dependent Loans with Credit Losses – Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured to determine if any credit loss exists on a non-recurring basis. Allowable methods for determining the amount of the credit loss include estimating fair value using the fair value of the collateral for collateral-dependent loans. Specific allowances for these loans are based on comparisons of the recorded carrying values of the loans to the present value of the estimated cash flows of these loans at each loan’s effective interest rate or the fair value of the collateral net of selling costs if the loan is collateral-dependent. Loans that are primarily collateral dependent loans are assessed using a fair value approach. Fair value estimates for collateral-dependent loans are derived from appraised values based on the current market value or as-is value of the property being appraised. Appraisals are based on certain assumptions, which may include construction or development status and the highest and best use of the property. The appraisals are reviewed by the Company’s appraisal department to ensure they are acceptable. Loans that have experienced a credit loss are classified within Level 3 of the fair value hierarchy. Other Real Estate Owned – Other real estate owned is initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated cost to sell. Fair value estimates begin with obtaining a current independent appraisal or internal evaluation of the collateral value. Subsequent to foreclosure, valuations are performed periodically by the Company’s appraisal department and any subsequent reduction in value is recognized by a charge to income. Appraisals for both collateral-dependent loans and other real estate owned are performed by certified appraisers whose qualifications and licenses have been reviewed by the Company. These appraisals are reviewed by a member of the Company’s appraisal department to ensure they are acceptable. Appraised values are adjusted down for costs associated with asset disposal. The significant unobservable inputs (Level 3) used in the fair value measurement of collateral for collateral-dependent loans and other real estate owned are primarily based on appraisals, observable market conditions, and other factors which may affect collectability. The appraisals use marketability and comparability discounts, which generally range from 5% to 15%. Assessment of the significance of a specific input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset. It is reasonably possible that a change in the estimated fair value for assets measured using Level 3 inputs could occur in the future. Assets and liabilities measured at fair value on a recurring basis are summarized below:
There were no transfers between Level 1, 2 or 3 during the periods shown above. Assets measured at fair value on a non-recurring basis are summarized below.
The following table presents quantitative information about Level 3 fair value measurements for assets measured at fair value on a non-recurring basis.
Fair Value of Financial Instruments GAAP requires disclosure of fair value information about financial instruments, whether or not recognized on the balance sheet, that are not measured and reported at fair value on a recurring or non-recurring basis. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions significantly affect the estimates and, as such, the derived fair value may not be indicative of the value negotiated in an actual sale and may not be comparable to that reported by other financial institutions. In addition, the fair value estimates are based on existing financial instruments without attempting to estimate the value of anticipated business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. The following table presents estimated fair values of the Company’s financial instruments that are not recorded at fair value:
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Subordinated Debentures and Trust Preferred Securities |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subordinated Debentures and Trust Preferred Securities | Subordinated Debentures and Trust Preferred Securities Subordinated Debentures On June 4, 2020, the Company entered into a Subordinated Note Purchase Agreement with certain qualified institutional buyers and institutional accredited investors pursuant to which the Company issued and sold $60.0 million in aggregate principal amount of its 6.000% Fixed-to-Floating Rate Subordinated Notes due June 15, 2030 (the “Notes”). The Company incurred issuance costs of $1.4 million in conjunction with the issuance of the Notes. These issuance costs are netted with the balance of the Notes on the Company’s Consolidated Balance Sheets and will be amortized over the life of the Notes. At March 31, 2024 and December 31, 2023, the remaining unamortized balance of these issuance costs was $892,000 and $928,000, respectively. The Notes initially bear interest at a rate of 6.000% per annum from and including June 4, 2020, to but excluding June 15, 2025 or the early redemption date, with interest during this period payable semiannually in arrears. From and including June 15, 2025, to but excluding the maturity date or early redemption date, the interest rate will reset quarterly to an annual floating rate equal to Three-Month Term Secured Overnight Financing Rate (“SOFR”) plus 586 basis points, with interest during this period payable quarterly in arrears. The Company used the proceeds of the private placement for general corporate purposes, including improving the Company’s liquidity and capital position. The Notes are not redeemable by the Company, in whole or in part, prior to the fifth anniversary of the original date of issue, except that the Notes may be redeemed at any time in whole but not in part in the event of a Tier 2 Capital Event, a Tax Event, or an Investment Company Event, each as defined and described in the Notes. On or after the fifth anniversary of the original date of issue, the Notes are redeemable on any interest payment date at the option of the Company, in whole or in part in integral multiples of $1,000, at an amount equal to 100% of the outstanding principal amount redeemed plus accrued but unpaid interest thereon. Any partial redemption will be made on a pro rata basis as to the holders of the Notes. Any redemption of the Notes is subject to any applicable regulatory requirements and approvals. Effective March 1, 2022, in conjunction with the merger (the “FTC Merger”) with First Trust Corporation (“FTC”), the Company assumed FTC’s obligations under its Subordinated Note Purchase Agreement, dated as of December 23, 2020, and the several purchasers of the $21.0 million aggregate principal amount of 5.50% Fixed-to-Floating Rate Subordinated Notes due 2030 issued thereunder (the “FTC Subordinated Notes”). The FTC Subordinated Notes will mature on December 30, 2030 and bear interest at an initial fixed rate of 5.50% per annum, payable semi-annually in arrears. From and including December 30, 2025, to but excluding the maturity date or early redemption date, the interest rate will reset quarterly to a Three-Month Term SOFR plus 527 basis points, payable quarterly in arrears. BancPlus will be entitled to redeem the FTC Subordinated Notes, in whole or in part, on any interest payment date on or after December 30, 2025, and to redeem the FTC Subordinated Notes in whole upon certain other events. The FTC Subordinated Notes are not subject to redemption at the option of the holder. The FTC Subordinated Notes are unsecured, subordinated obligations of BancPlus only and are not obligations of, and are not guaranteed by, any subsidiary of BancPlus. The FTC Subordinated Notes rank junior in right to payment to BancPlus’ current and future senior indebtedness. The FTC Subordinated Notes have been structured to qualify as Tier 2 capital for regulatory capital purposes. The FTC Subordinated Notes vary from the amount carried on the Consolidated Balance Sheets at March 31, 2024 due to the remaining purchase premium of $348,000, which was established upon closing of the FTC Merger and is being amortized over the remaining life of the debentures. Trust Preferred Securities The Company also owns the outstanding common stock of business trusts that have issued preferred capital securities to third parties. Under a grandfathering provision in the Basel III capital rules that applies to bank holding companies with less than $15 billion in total consolidated assets, these preferred capital securities have qualified as Tier 1 capital for the Company, subject to regulatory rules and limits. These trusts used the proceeds from the issuance of the common stock and the preferred capital securities to purchase subordinated debentures issued by the Company. These subordinated debentures are these trusts’ only assets, and quarterly interest payments on these subordinated debentures are the sole source of cash for these trusts to pay quarterly distributions on the common stock and preferred capital securities. The Company has fully and unconditionally guaranteed the trusts’ obligations with respect to the preferred capital securities. The Company has the right to defer the payment of interest on the subordinated debentures at any time, or from time to time, for periods not exceeding five years. If interest payments on the subordinated debentures are deferred, the distributions on the trust preferred securities are also deferred. Interest on the subordinated debentures and distributions on the trust preferred securities are cumulative. The following is a summary of subordinated debentures payable to statutory trusts.
The subordinated debentures payable to statutory trusts vary from the amount carried on the Consolidated Balance Sheets at March 31, 2024 due to the remaining purchase discount of $3.4 million, which was established upon the merger (the “SCC Merger”) with State Capital Corp. (“SCC”), in which BancPlus acquired SCC, the holding company of State Bank & Trust Company (“State Bank”) by a statutory share exchange and SCC was merged with and into BancPlus and State Bank was merged with and into BankPlus, with BancPlus and BankPlus surviving the mergers, which closed on April 1, 2020, and is being amortized over the remaining life of the debentures. Interest rates adjust quarterly for the subordinated debentures with rates that were nominally indexed with LIBOR. Following the LIBOR cessation date of June 30, 2023, the interest rate on the subordinated notes was replaced with SOFR pursuant to the Adjustable Interest Rate (LIBOR) Act. The Company has the right to redeem the subordinated debentures prior to maturity. Upon redemption of the subordinated debentures payable to a statutory trust, the trust will also liquidate its common stock and preferred capital securities.
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Employee Benefits |
3 Months Ended |
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Mar. 31, 2024 | |
Postemployment Benefits [Abstract] | |
Employee Benefits | Employee Benefits The Company has an Employee Stock Ownership Plan (“ESOP”) that covers all employees of the Bank who are at least 21 years of age and work in a position requiring at least one thousand hours of service annually. The plan also has 401(k) provisions that allow for employee tax deferred contributions. Participants may make contributions to the ESOP in accordance with applicable regulations and the ESOP’s provisions. The Company makes a “safe harbor” matching contribution on the first 3% of an employee’s salary deferral contributions, plus an additional matching contribution equal to 50% of the next 2% of an employee’s salary deferral contributions in excess of 3%. Additional contributions are made to the ESOP at the discretion of the Company’s Board of Directors. The ESOP owned 1,452,950 shares of the Company's common stock at both March 31, 2024 and December 31, 2023. The ESOP can enter into loans, collateralized by ESOP shares, with the Company in connection with the repurchase of shares of Company stock sold by participants in accordance with diversification provisions of the ESOP. These unallocated shares would be released to participants proportionately as the loans are repaid. Dividends on allocated shares are recorded as dividends and charged to retained earnings. Dividends on unallocated shares, if any, that are used to repay the loan would be treated as compensation expense. As of March 31, 2024, the ESOP had zero outstanding loans with the Company. Distributions of the ESOP may be either in cash or Company common stock. The allocated shares are subject to a put option, whereby the Company will provide a market for a specified period of time for shares distributed to participants. The put price is the appraised value of the stock. The fair value of allocated shares of common stock held by the ESOP are deducted from permanent shareholders’ equity in the Consolidated Balance Sheets and reflected in a line item below liabilities and above shareholders’ equity. This presentation is necessary in order to recognize the put option within the ESOP-owned shares, consistent with U.S. Securities and Exchange Commission guidelines, that is present as long as the Company is not publicly traded. The Company uses a valuation by an external third party to determine the maximum possible cash obligation related to these securities. Increases or decreases in the value of the cash obligation are included in a separate line item in the Consolidated Statements of Shareholders’ Equity. The fair value of allocated shares held by the ESOP at March 31, 2024 was $85.0 million, based on the Company’s previously disclosed appraised value of $58.50 per share of common stock. The fair value at December 31, 2023 was $85.0 million, based on the Company’s previously disclosed appraised value of $58.50 per share of common stock. As previously disclosed, these appraised values were determined solely for purposes of the ESOP’s administration and are therefore subject to certain limitations, qualifications and assumptions and may not reflect the fair value of the Company’s common stock and should not be relied on for any reason. Neither the Company nor the ESOP has any obligation to seek an adjusted valuation, to use these appraised values for any other purpose or, if the Company or the ESOP obtains a new appraised value, to disclose such new appraised value.
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Equity |
3 Months Ended |
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Mar. 31, 2024 | |
Equity [Abstract] | |
Equity | Equity Preferred Stock The Company’s Articles of Incorporation authorize 10,000,000 shares of preferred stock with no par value, which may be issued from time to time and in one or more classes or series upon authorization of the Board of Directors. On June 22, 2022, the Company entered into a Letter Agreement (including annexes thereto, collectively, the “Purchase Agreement”) with the U.S. Department of Treasury (the “Treasury”) under the Emergency Capital Investment Program (“ECIP”). Pursuant to the Purchase Agreement, the Company agreed to issue and sell 250,000 shares of the Company’s preferred stock designated as Senior Non-Cumulative Perpetual Preferred Stock, Series ECIP (the “Preferred Stock”) for an aggregate purchase price of $250.0 million in cash. The Preferred Stock was issued in a private placement exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. The Preferred Stock bears no dividend for the first two years following the issuance of the Preferred Stock. Thereafter, the annual dividend rate will be adjusted, not lower than 0.5% and not higher than 2.0%, based on our extensions of credit for qualified lending as defined in the terms of the ECIP Interim Final Rule, the Purchase Agreement and the Certificate of Designations (the “Certificate of Designations”) and the investment amount. After the tenth anniversary of the issuance of the Preferred Stock, the dividend rate will be fixed based on the average annual amount of lending in years 2 through 10 compared to the baseline qualified lending and the average investment amount. The dividends will be payable quarterly in arrears on March 15, June 15, September 15, and December 15. The Preferred Stock may be redeemed at the option of the Company on or after September 15, 2027 (or earlier in the event of loss of regulatory capital treatment), subject to the approval of the appropriate federal banking regulator and in accordance with the federal banking agencies’ regulatory capital regulations. The restrictions on redemption are set forth in the Certificate of Designations filed with the Mississippi Secretary of State for the purpose of amending its Articles of Incorporation to fix the designations, preferences, limitations and relative rights of the Preferred Stock as described in Item 5.03 of our Current Report on Form 8-K filed with the SEC on June 23, 2022. In the Purchase Agreement, the Company also agreed to, upon the future written request of the Treasury, comply with the terms of a Registration Rights Agreement included as an annex to the Purchase Agreement and incorporated by reference therein (the “Registration Rights Agreement”), providing for certain registration rights of the Treasury. As long as the Company is not eligible to file on Form S-3, upon written request of the Treasury, the Company would be required to prepare and file a shelf registration statement covering the potential resale of the Preferred Stock as promptly as practicable. Once the Company is eligible to file on Form S-3, the Company agreed to prepare and file such shelf registration statement within 30 days. The Registration Rights Agreement also includes customary “piggyback” registration rights, suspension rights, indemnification, contribution, and assignment provisions.
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Stock Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Based Compensation | Stock Based Compensation Under the Company’s long-term incentive program, certain officers, employees and directors are eligible to receive equity-based awards under the 2018 Long-Term Incentive Plan (“LTIP”). Restricted stock awards (“RSAs”) granted under the LTIP generally vest over to five years. Unvested RSAs are included in the Company’s common stock outstanding. Compensation expense for RSAs granted under the LTIP is recognized over the vesting period of the awards based on the fair value of the stock at the grant date, with forfeitures recognized as they occur. Stock based compensation that has been charged against income was $1.2 million for the three months ended March 31, 2024 and $1.0 million for the same period of 2023. There were 1,240 and zero shares forfeited during the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, there was $7.3 million of total unrecognized compensation cost related to unvested RSAs. The cost is expected to be recognized over a remaining weighted average period of 2.7 years. A summary of the Company’s equity-based award activity and related information for the Company’s RSAs is as follows:
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Contingencies |
3 Months Ended |
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Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies The Company, including subsidiaries, is party to various legal proceedings arising in the ordinary course of business. The Company does not believe that loss contingencies, if any, arising from pending litigation and regulatory matters will have a material adverse effect on our consolidated financial position or liquidity.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Pay vs Performance Disclosure | ||
Net income | $ 16,955 | $ 17,079 |
Insider Trading Arrangements |
3 Months Ended |
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Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies) |
3 Months Ended |
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Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | The unaudited interim consolidated financial statements include the accounts of the Company and all other entities in which the Company has a controlling financial interest, and reflect all adjustments (consisting of normal recurring adjustments) that are necessary in the opinion of the Company’s management to fairly present the financial position, results of operations and cash flows of the Company. They have been derived from the audited consolidated financial statements for the fiscal year ended December 31, 2023; however, certain notes and information have been omitted from the interim periods. Therefore, these unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2023. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. The accounting and financial reporting policies followed by the Company conform, in all material respects, to the accounting principles generally accepted in the United States (“GAAP”) and to general practices within the financial services industry. The results of operations for the interim periods are not necessarily indicative of the results to be expected for future interim periods or for the entire year.
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Basis of Accounting | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The allowance/provision for credit losses, the fair value of financial instruments and the status of contingencies are particularly subject to change. Material estimates that are subject to significant change in the near term are the allowance for credit losses, provision for credit losses, valuation of other real estate owned and fair values of financial instruments. Actual results could differ from these estimates. |
Effect of Recently Adopted Accounting Standards and Effect of Recently Issued But Not Yet Effective Accounting Standards | Effect of Recently Adopted Accounting Standards Accounting Standards Update 2023-02 (“ASU 2023-02”), “Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” In March 2023, the FASB issued ASU 2023-02 which allows entities to elect to account for tax equity investments using the proportional amortization method, regardless of the tax credit program from which the income tax credits are received, if certain conditions are met. ASU 2023-02 is effective for the Company for annual and interim periods beginning on January 1, 2024. The adoption of ASU 2023-02 did not materially impact the Company’s consolidated financial statements. Accounting Standards Update 2023-07 (“ASU 2023-07”), “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” In November 2023, the FASB issued ASU 2023-07 which expands segment disclosure requirements for public entities to require disclosure of significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. ASU 2023-07 is effective for the Company for annual and interim periods beginning on January 1, 2024. The adoption of ASU 2023-07 did not materially impact the Company’s consolidated financial statements. Effect of Recently Issued, But Not Yet Effective Accounting Standards Accounting Standards Update 2023-09 (“ASU 2023-09”), “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” In December 2023, the FASB issued ASU 2023-09 which requires entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if items meet a quantitative threshold. ASU 2023-09 also requires entities to disclose income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold, among other things. ASU 2023-09 is effective for the Company for annual and interim periods beginning on January 1, 2025, though early adoption is permitted. The adoption of ASU 2023-09 is not expected to materially impact the Company’s consolidated financial statements.
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Allowance for Credit Losses | Loans are stated at the amount of unpaid principal net of discounts and premiums on acquired loans, before allowance for credit losses. Interest on loans is calculated using the simple interest method on daily balances of the principal amount outstanding. Loan Origination/Risk Management/Credit Concentration – The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. The Company’s Board of Directors reviews and approves these policies and procedures on a regular basis. Although the Company has a diversified loan portfolio, the Company has concentrations of credit risks related to the real estate market, including residential, commercial, and construction and land development lending. Most of the Company’s lending activity occurs within Mississippi, Alabama, Louisiana, and Florida. The risk characteristics of the Company’s material portfolio segments are as follows: Residential Real Estate Loans – The residential real estate loan portfolio consists of residential loans for single and multifamily properties. Residential loans are generally secured by owner occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers and can be impacted by economic conditions within their market area. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Commercial Real Estate Loans – Commercial real estate loans include construction and land development loans, loans secured by farmland and other commercial real estate loans. Construction and land development loans are usually based upon estimates of costs and estimated value of the completed project and include independent appraisal reviews and a financial analysis of the developers and property owners. Sources of repayment of these loans may include permanent loans, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are considered to be higher risk than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, general economic conditions and the availability of long-term financing. Farmland loans are generally made for the purpose of acquiring land devoted to crop production or livestock, the propagation of timber or the operation of a similar type of business on the secured property. Sources of repayment for these loans generally include income generated from operations of a business on the property, rental income, or sales of timber. Repayment may be impacted by changes in economic conditions which affect underlying collateral values. Commercial real estate loans typically involve larger principal amounts and repayment of these loans is generally dependent on the successful operations of the property securing the loan or the business conducted on the property securing the loan. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Management monitors and evaluates commercial real estate loans based on collateral and risk grade criteria. Commercial and Industrial Loans – The commercial and industrial loan portfolio consists of loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchase or other expansion projects. Commercial loan underwriting standards are designed to promote relationship banking rather than transactional banking and are underwritten based on the borrower’s expected ability to profitably operate its business. The cash flows of borrowers, however, may not be as expected and collateral securing these loans may fluctuate in value. Most commercial loans are secured by assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. In the case of loans secured by accounts receivable, the availability of funds for repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Agricultural production and other loans to farmers - The agricultural production and other loans to farmers portfolio consists of loans for the purpose of financing agricultural production, the growing and storing of crops, the marketing, and the carrying of agricultural products. This portfolio also includes loans for the purposes of breeding, raising, fattening, or marketing livestock, fish production, and forest and timber production as well as any other loans to made to farmers not secured by real estate. Sources of repayment for these loans generally include income generated from the operations of the business. Consumer and Other Loans – The consumer and other loan portfolio consists of various term and line of credit loans such as automobile loans and loans for other personal purposes. Repayment for these types of loans will come from a borrower’s income sources that are typically independent of the loan purpose. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Company’s market area) and the creditworthiness of a borrower. Loans that are 30 days or more past due based on payments received and applied to the loan are considered delinquent. Accrual of interest is discontinued on a loan when management believes, after considering economic and business conditions and collection efforts, that a borrower's financial condition is such that collection of interest, but not necessarily principal, is doubtful. A loan is typically placed on non-accrual when the contractual payment of principal or interest becomes 90 days past due unless the loan is well-secured and in the process of collection. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. When a loan is placed on non-accrual status, any interest that is accrued, but not collected, is reversed against interest income. Payments subsequently received on non-accrual loans are applied to principal. Interest income is recognized to the extent that cash payments are received in excess of principal due. A loan may return to accrual status when principal and interest payments are no longer past due and collectability is reasonably assured. Allowance for Credit LossesAs management evaluates the allowance for credit losses, it is categorized based on specific allocations and general allocations for each major loan category for loans not individually evaluated or deemed collateral-dependent or classified, segmented by loan class based on historical loss experience and other risk factors. In assessing general economic conditions, management monitors several factors, including regional and national economic conditions, real estate market conditions and recently enacted regulations with potential economic effects. Credit Quality Indicators – The Company utilizes a risk grading matrix to assign a grade to each of its commercial and real estate loans. Loans are rated on a scale of 1 to 10. A description of the general characteristics of the 10 risk ratings is as follows: •Risk Grades 1, 2, 3, 4 and 5 – These grades include loans to borrowers of solid credit quality with no higher than normal risk of loss. Borrowers in these categories have satisfactory financial strength and adequate cash flow coverage to service debt requirements. Collateral type and quality, as well as protection, are adequate. The borrower’s management is strong and capable, financial information is timely and accurate, and guarantor support is strong. •Risk Grade 6 – Pass and Watch – Loans in this category are currently protected, but risks are emerging that warrant more than normal attention and have above average risk of loss. These factors require a higher level of monitoring and may include emerging balance sheet weaknesses, strained liquidity, increased leverage ratio, and weakening management. Collateral support is less marketable or limited use and, although the protection is sufficient, the loan-to-value ratio may not meet policy guidelines. Guarantors may have a limited ability and willingness to provide intermediate support. Also, considerations surrounding industry deterioration, increased competition and minor policy exceptions concerning structure or amortization may affect the rating of these loans. •Risk Grade 7 – Special Mention – The Company’s special mention rating is intended to closely align with the regulatory definition. A special mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these weaknesses may result in deterioration of repayment prospects. These weaknesses may include deteriorating balance sheets, strained liquidity and elevated leverage ratios. Cash flow and profitability are marginally sufficient to service debt and collateral is exhibiting signs of decline in value; however, protection is currently sufficient. Limited management experience or weaknesses have emerged requiring more than normal supervision and uncertainties regarding the quality of the financials are not explained. Guarantor has very limited ability and willingness to provide short-term support. Moderate policy exceptions concerning structure or amortization may be considered in order to provide relief to the borrower. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. •Risk Grade 8 – Substandard – A loan in this category is inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged. Assets so classified have a well-defined weakness that jeopardizes the liquidation of the debt. Factors affecting these loans may include balance sheet deterioration that has resulted in illiquid, highly leveraged or deficit net worth, cash flow that is not able to service debts as structured, collateral protection that may be inadequate, guarantor support that may be virtually non-existent, and management that is poor. Loans may require a major policy exception concerning structure or amortization. They are characterized by the distinct possibility that the Company will incur some loss if the deficiencies are not corrected. •Risk Grade 9 – Doubtful – Loans classified doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. •Risk Grade 10 – Loss – Loans are considered uncollectible and of such little value that continuing to carry them as an active asset is not warranted. It does not mean that there will be no recovery, but, rather, it is not practical or desirable to defer writing off these assets even though a partial recovery may be possible in the future. Pass loans for the Company include loans in Risk Grades 1 - 6. Special mention loans for the Company include loans in Risk Grade 7. Classified loans for the Company include loans in Risk Grades 8, 9 and 10. Loans may be classified but not considered individually evaluated or collateral-dependent, due to one of the following reasons: (i) the loan falls below the established minimum dollar thresholds for individual evaluation or (ii) the loan was individually evaluated, but not deemed to be collateral-dependent.
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Financial Instruments Measured at Fair Value | Financial Instruments Measured at Fair Value 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 asset or liability in an orderly transaction between market participants on the measurement date. The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Valuations within these levels are based upon: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access as of the measurement date Level 2 Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are significant to the fair value of the assets or liabilities that reflect a company’s own assumptions about the assumptions that market participants would use in pricing assets or liabilities Management monitors the availability of observable market data to assess the appropriate classification of assets and liabilities within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. There were no transfers of financial instruments between fair value levels for any period presented. The Company used the following methods and significant assumptions to estimate fair value. Securities – The Company utilizes an independent pricing service to advise it on the value of the securities portfolio. Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. For these investments, the inputs used by the pricing service to determine fair value may include one, or a combination of several, observable inputs such as benchmark yields, reported trades, benchmark securities, bids, offers and reference data market research publications and are classified within Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. For Level 3 securities, in addition to the inputs noted above, inputs used by the pricing service to determine fair value may also include estimated duration, municipal bond interest rate curve, and tax effected yield. There were no Level 3 securities as of March 31, 2024 or December 31, 2023. The Company’s treasury department and Asset Liability Management Committee review the aggregate fair values of the securities portfolio. Collateral-dependent Loans with Credit Losses – Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured to determine if any credit loss exists on a non-recurring basis. Allowable methods for determining the amount of the credit loss include estimating fair value using the fair value of the collateral for collateral-dependent loans. Specific allowances for these loans are based on comparisons of the recorded carrying values of the loans to the present value of the estimated cash flows of these loans at each loan’s effective interest rate or the fair value of the collateral net of selling costs if the loan is collateral-dependent. Loans that are primarily collateral dependent loans are assessed using a fair value approach. Fair value estimates for collateral-dependent loans are derived from appraised values based on the current market value or as-is value of the property being appraised. Appraisals are based on certain assumptions, which may include construction or development status and the highest and best use of the property. The appraisals are reviewed by the Company’s appraisal department to ensure they are acceptable. Loans that have experienced a credit loss are classified within Level 3 of the fair value hierarchy. Other Real Estate Owned – Other real estate owned is initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated cost to sell. Fair value estimates begin with obtaining a current independent appraisal or internal evaluation of the collateral value. Subsequent to foreclosure, valuations are performed periodically by the Company’s appraisal department and any subsequent reduction in value is recognized by a charge to income. Appraisals for both collateral-dependent loans and other real estate owned are performed by certified appraisers whose qualifications and licenses have been reviewed by the Company. These appraisals are reviewed by a member of the Company’s appraisal department to ensure they are acceptable. Appraised values are adjusted down for costs associated with asset disposal. The significant unobservable inputs (Level 3) used in the fair value measurement of collateral for collateral-dependent loans and other real estate owned are primarily based on appraisals, observable market conditions, and other factors which may affect collectability. The appraisals use marketability and comparability discounts, which generally range from 5% to 15%. Assessment of the significance of a specific input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset. It is reasonably possible that a change in the estimated fair value for assets measured using Level 3 inputs could occur in the future.
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Earnings Per Share (Tables) |
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Schedule of earnings per share |
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Investment Securities (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the amortized cost and fair value of securities available for sale | The following is a summary of the amortized cost and fair value of securities available for sale.
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Summary of allowance for credit loss on debt securities activity | The following table provides a roll-forward of the allowance for credit losses on available for sale securities for the periods presented.
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Summary of the amortized cost and fair value of securities held to maturity | The following is a summary of the amortized cost and fair value of securities held to maturity.
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Summary of investment securities that were in an unrealized loss position | Provided below is a summary of investment securities without an allowance for credit losses that were in an unrealized loss position and the length of time that individual securities have been in a continuous loss position.
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Schedule of investments classified by contractual maturity date | The amortized cost and fair value of debt securities, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers have the right to call or prepay certain obligations with, or without, call or prepayment penalties.
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Summary of the amortized cost and fair value for investment securities which were pledged to secure public deposits and for other purposes | The following is a summary of the amortized cost and fair value for investment securities which were pledged to secure public deposits and for other purposes required or permitted by law.
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Summary of amortized cost basis of held-to-maturity debt securities by credit rating | The following table summarizes the amortized cost basis of held-to-maturity debt securities at March 31, 2024 by credit rating:
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Loans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the Company’s loan portfolio by loan class | The following is a summary of the Company’s loan portfolio by loan class.
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Summary of the recorded investment in non-accrual loans, segregated by class | The following table presents the amortized cost basis of nonaccrual loans, segregated by class as of March 31, 2024 and December 31, 2023.
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Summary of collateral dependent loans by class and collateral type | The following table presents the amortized cost basis of collateral-dependent loans by class and collateral type as of March 31, 2024 and December 31, 2023.
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Summary of age analysis of past due loans | An age analysis of past due loans (including both accruing and non-accruing loans) segregated by class of loans is as follows:
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Allowance for Credit Losses (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the Company’s loan portfolio by loan class | The following is a summary of the Company’s loan portfolio by loan class.
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Summary of the credit quality of the Company’s loan portfolio by loan class | The following table reflects loans by credit quality indicator and origination year at March 31, 2024. Loans acquired are shown in the table by origination year. The Company had an immaterial amount of revolving loans converted to term loans at March 31, 2024.
The following table reflects loans by credit quality indicator and origination year at December 31, 2023. Loans acquired are shown in the table by origination year. The Company had an immaterial amount of revolving loans converted to term loans at December 31, 2023.
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Summary of allowance for loan losses and balances in the loan portfolio by loan segment | Transactions in the allowance for credit losses and balances in the loan portfolio by loan segment are as follows:
The allowance for credit losses on LHFI increased for the three months ended March 31, 2024 primarily as a result of provision for credit losses on commercial and industrial loans. Accrued interest receivable on loans, reported as a component of accrued interest receivable on the balance sheet, totaled approximately $27.1 million at March 31, 2024 and is excluded from the estimate of credit losses.
Allowance for Credit Losses on Unfunded Loan Commitments The Company maintains a separate allowance for credit losses on unfunded loan commitments, which is included in Other liabilities in the Company’s Consolidated Balance Sheets. The following table provides a roll-forward of the allowance for credit losses on unfunded loan commitments for the periods presented.
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Regulatory Matters (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Regulatory Matters [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of actual and required capital ratios | The following table presents actual and required capital ratios for the Company and the Bank under the CBLR and prompt corrective action regulations for the relevant periods.
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Fair Value (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule assets and liabilities measured on recurring basis | Assets and liabilities measured at fair value on a recurring basis are summarized below:
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Schedule of assets measured at fair value on a non-recurring basis | Assets measured at fair value on a non-recurring basis are summarized below.
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Schedule of quantitative information about Level 3 fair value measurements for assets measured at fair value on a non-recurring basis | The following table presents quantitative information about Level 3 fair value measurements for assets measured at fair value on a non-recurring basis.
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Schedule of estimated fair values of the Company’s financial instruments not previously disclosed | The following table presents estimated fair values of the Company’s financial instruments that are not recorded at fair value:
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Subordinated Debentures and Trust Preferred Securities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of debentures payable to statutory trusts | The following is a summary of subordinated debentures payable to statutory trusts.
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Stock Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of restricted stock activity | A summary of the Company’s equity-based award activity and related information for the Company’s RSAs is as follows:
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Basis of Presentation - Narrative (Details) |
3 Months Ended |
---|---|
Mar. 31, 2024
segment
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Earnings Per Share [Abstract] | ||
Net income | $ 16,955 | $ 17,079 |
Weighted average common shares outstanding (in shares) | 11,422 | 11,415 |
Dilutive effect of unallocated stock (in shares) | 0 | 0 |
Diluted effect of stock-based awards (in shares) | 56 | 73 |
Diluted common shares (in shares) | 11,478 | 11,488 |
Basic earnings per common share (in USD per share) | $ 1.48 | $ 1.50 |
Diluted earnings per common share (in USD per share) | $ 1.48 | $ 1.49 |
Investment Securities - Summary of Rollforward of Allowance for Credit Loss (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 2,035 | $ 0 |
Impact of adopting CECL | 0 | 0 |
(Recovery of) provision for credit losses on available for sale securities | 0 | 0 |
Available for sale security charged off | (2,035) | 0 |
Ending Balance | 0 | 0 |
Cumulative Effect, Period of Adoption, Adjustment | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 0 | $ 0 |
Impact of adopting CECL |
Investment Securities - Summary of Amortized Cost and Fair Value of Securities Held to Maturity (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | $ 54,241 | $ 55,170 |
Gross unrealized gains | 0 | 1 |
Gross unrealized losses | 180 | 126 |
Fair value | 54,061 | 55,045 |
State and political subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 54,241 | 55,170 |
Gross unrealized gains | 0 | 1 |
Gross unrealized losses | 180 | 126 |
Fair value | $ 54,061 | $ 55,045 |
Investment Securities - Summary of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Amortized cost | |
One year or less | $ 267,944 |
After one through five years | 461,224 |
After five through ten years | 120,453 |
After ten years | 83,000 |
Allocated and single maturity date, total | 932,621 |
Fair value | |
One year or less | 265,365 |
After one through five years | 442,246 |
After five through ten years | 108,827 |
After ten years | 72,066 |
Allocated and single maturity date, total | 888,504 |
Amortized Cost | |
One year or less | 12,858 |
After one through five years | 35,066 |
After five through ten years | 5,092 |
After ten years | 1,225 |
Allocated and single maturity date, total | 54,241 |
Fair Value | |
One year or less | 12,845 |
After one through five years | 34,935 |
After five through ten years | 5,055 |
After ten years | 1,225 |
Allocated and single maturity date, total | $ 54,060 |
Investment Securities - Summary of the Amortized Cost and Fair Value for Investment Securities (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Held to Maturity | ||
Securities held to maturity | $ 54,241 | $ 55,170 |
Pledged to secure public deposits and for other purposes required or permitted by law | ||
Available for Sale | ||
Amortized cost | 112,794 | 128,675 |
Fair value | 106,216 | 122,105 |
Held to Maturity | ||
Securities held to maturity | 0 | 0 |
Fair value | $ 0 | $ 0 |
Loans - Narrative (Details) |
3 Months Ended |
---|---|
Mar. 31, 2024
loan
| |
Commercial and industrial loans | Commercial & industrial loans: | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Number of borrowers with modified loan | 0 |
Allowance for Credit Losses - Narrative (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for credit losses, adjustment for adoption of ASU | $ 66,840 | $ 65,872 | $ 64,403 | $ 42,875 |
Accrued interest receivable | $ 27,100 | |||
Cumulative Effect, Period of Adoption, Adjustment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for credit losses, adjustment for adoption of ASU | $ 20,744 |
Allowance for Credit Losses - Schedule of Allowance For Credit Losses On Unfunded Loan Commitments (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
(Recovery of) provision for credit losses on unfunded loan commitments | $ 36 | $ 523 |
Unfunded Loan Commitment | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 8,951 | 0 |
(Recovery of) provision for credit losses on unfunded loan commitments | (1,875) | (897) |
Ending balance | 7,076 | 11,608 |
Unfunded Loan Commitment | Cumulative Effect, Period of Adoption, Adjustment | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 0 | $ 12,505 |
Regulatory Matters - Summary of Capital Requirements (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
Dec. 31, 2023
USD ($)
|
---|---|---|
BancPlus Corporation | ||
Actual | ||
Tier 1 Capital to Average Assets | $ 762,928 | $ 756,155 |
Tier 1 Capital to Average Assets, ratio (as a percentage) | 0.1001 | 0.1002 |
Minimum Requirement to be Well Capitalized | ||
Tier 1 Capital to Average Assets | $ 685,626 | $ 679,472 |
Tier 1 Capital to Average Assets, ratio (as a percentage) | 0.0900 | 0.0900 |
Subsidiaries | ||
Actual | ||
Tier 1 Capital to Average Assets | $ 762,467 | $ 755,482 |
Tier 1 Capital to Average Assets, ratio (as a percentage) | 0.1001 | 0.1001 |
Minimum Requirement to be Well Capitalized | ||
Tier 1 Capital to Average Assets | $ 685,296 | $ 679,129 |
Tier 1 Capital to Average Assets, ratio (as a percentage) | 0.0900 | 0.0900 |
Employee Benefits - Narrative (Details) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024
USD ($)
hour
$ / shares
shares
|
Dec. 31, 2023
USD ($)
$ / shares
shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Required annual hours of service for participation in ESOP (in hours) | hour | 1,000 | |
Employers matching contribution, annual vesting percentage (as a percentage) | 3.00% | |
Employer matching contribution, percent of match (as a percentage) | 50.00% | |
Employer matching contribution, percent of employees' gross pay (as a percentage) | 2.00% | |
ESOP owned shares (in shares) | shares | 1,452,950 | 1,452,950 |
Redeemable common stock owned by the ESOP | $ 84,998 | $ 84,998 |
Employee Stock Ownership Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Redeemable common stock owned by the ESOP | $ 85,000 | $ 85,000 |
Temporary equity (in USD per share) | $ / shares | $ 58.50 | $ 58.50 |
Equity (Details) - USD ($) $ / shares in Units, $ in Millions |
Jun. 22, 2022 |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|---|
Class of Stock [Line Items] | |||
Preferred stock, shares authorized (in shares) | 10,000,000 | ||
Preferred stock, par value (in dollars per share) | $ 0 | ||
Dividends paid initial two years | 0.00% | ||
Period of no dividends paid (in years) | 2 years | ||
Review lookback period after year 10, beginning of period | 2 years | ||
Review lookback period after year 10, end of period | 10 years | ||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | |
Minimum | |||
Class of Stock [Line Items] | |||
Dividend rate after initial two years | 0.50% | ||
Maximum | |||
Class of Stock [Line Items] | |||
Dividend rate after initial two years | 2.00% | ||
Noncumulative Preferred Stock | Private Placement | |||
Class of Stock [Line Items] | |||
Shares issued in sale (in shares) | 250,000 | ||
Aggregate purchase price of shares | $ 250.0 |
Stock Based Compensation - Narrative (Details) - Restricted stock awards - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based compensation expense | $ 1.2 | $ 1.0 |
Forfeited (in shares) | 1,240 | 0 |
Unrecognized compensation cost related to nonvested RSAs | $ 7.3 | |
Unrecognized compensation cost related to nonvested RSAs, period for recognition | 2 years 8 months 12 days | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 1 year | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 5 years |
Stock Based Compensation - Summary of Restricted Stock Activity (Details) - Restricted stock awards - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Number of Shares | ||
Beginning of period (in shares) | 191,700 | 184,284 |
Granted (in shares) | 0 | 0 |
Vested (in shares) | (1,224) | (1,396) |
Forfeited (in shares) | (1,240) | 0 |
End of period (in shares) | 189,236 | 182,888 |
Weighted Average Grant Date Fair Value | ||
Beginning of period (in dollars per share) | $ 63.16 | $ 59.36 |
Granted (in dollars per share) | 0 | 0 |
Vested (in dollars per share) | 50.00 | 50.00 |
Forfeited (in dollars per share) | 57.99 | 0 |
Ending of period (in dollars per share) | $ 63.28 | $ 59.43 |
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