QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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The
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Large accelerated filer
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☐
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☒
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Non-accelerated filer
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☐
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Smaller reporting company
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Emerging growth company
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Page
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PART I.
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FINANCIAL INFORMATION |
3
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Item 1.
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Consolidated Financial Statements |
3
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3
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4
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6
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7
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8
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Item 2.
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32
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Item 3.
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56
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Item 4.
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56
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PART II.
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57
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Item 1.
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57
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Item 1A.
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57
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Item 2.
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57
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Item 3.
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57
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Item 4.
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57
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Item 5.
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57
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Item 6.
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58
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59
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Item 1. |
Consolidated
Financial Statements
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June 30,
2023
|
December 31,
2022
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Cash and due from banks
|
$
|
|
$
|
|
||||
Interest-bearing deposits in banks
|
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|
||||||
Cash and cash equivalents
|
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||||||
Securities available for sale
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||||||
Loans held for sale ($
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||||||
Loans held for investment
|
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|
||||||
Allowance for credit losses on loans
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(
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)
|
(
|
)
|
||||
Loans held for investment, net
|
||||||||
Accrued interest receivable
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|
|
||||||
Premises and equipment, net
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||||||
Bank-owned life insurance
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||||||
Goodwill
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||||||
Intangible assets, net
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||||||
Mortgage servicing rights
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||||||
Deferred tax asset, net
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|
||||||
Other assets
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||||||
Total assets
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$
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|
$
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|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing
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$
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|
$
|
|
||||
Interest-bearing
|
|
|
||||||
Total deposits
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|
|
||||||
Accrued expenses and other liabilities
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|
||||||
Subordinated debt
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||||||
Junior subordinated deferrable interest debentures
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||||||
Total liabilities
|
|
|
||||||
Stockholders’ equity:
|
||||||||
Common stock, $
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|
|
||||||
Additional paid-in capital
|
|
|
||||||
Retained earnings
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|
|
||||||
Accumulated other comprehensive loss
|
(
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)
|
(
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)
|
||||
Total stockholders’ equity
|
|
|
||||||
Total liabilities and stockholders’ equity
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$
|
|
$
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Interest income:
|
||||||||||||||||
Loans, including fees
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Securities:
|
||||||||||||||||
Taxable
|
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|
||||||||||||
Non-taxable
|
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|
||||||||||||
Federal funds sold and interest-bearing deposits in banks
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|
||||||||||||
Total interest income
|
|
|
|
|
||||||||||||
Interest expense:
|
||||||||||||||||
Deposits
|
|
|
|
|
||||||||||||
Notes payable & other borrowings
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|
|
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|
||||||||||||
Subordinated debt
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|
||||||||||||
Junior subordinated deferrable interest debentures
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|
||||||||||||
Total interest expense
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|
||||||||||||
Net interest income
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|
||||||||||||
Provision for credit losses |
|
|
|
(
|
)
|
|||||||||||
Net interest income, after provision for credit losses
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|
||||||||||||
Noninterest income:
|
||||||||||||||||
Service charges on deposit accounts
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||||||||||||
Income from insurance activities
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||||||||||||
Net gain on sales of loans
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||||||||||||
Bank card services and interchange fees
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||||||||||||
Other mortgage banking income
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||||||||||||||
Investment commissions
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||||||||||||
Fiduciary fees
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||||||||||||
Gain on sale of subsidiary
|
||||||||||||||||
Other
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|
||||||||||||
Total noninterest income
|
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|
||||||||||||
Noninterest expense:
|
||||||||||||||||
Salaries and employee benefits
|
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|
||||||||||||
Occupancy and equipment, net
|
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|
||||||||||||
Professional services
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|
||||||||||||
Marketing and development
|
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|
||||||||||||
IT and data services
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|
||||||||||||
Bank card expenses
|
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|
||||||||||||
Appraisal expenses
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|
||||||||||||
Realized loss on sale of securities
|
||||||||||||||||
Other
|
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|
||||||||||||
Total noninterest expense
|
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|
||||||||||||
Income before income taxes
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|
||||||||||||
Income tax expense
|
|
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|
||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
$
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Earnings per share:
|
||||||||||||||||
Basic
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Diluted
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Net income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Other comprehensive income (loss): | ||||||||||||||||
Unrealized gains (losses) on securities available for sale |
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||
Less: Change in fair value on
hedged state and municipal securities
|
|
|
(
|
)
|
|
|||||||||||
Reclassification adjustment for loss on sale of securities
|
||||||||||||||||
Tax effect
|
|
|
(
|
)
|
|
|||||||||||
Other comprehensive income (loss)
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||
Comprehensive income (loss)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
Common Stock
|
Additional
Paid-in
|
Retained
|
Accumulated
Other
Comprehensive
|
|||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Earnings
|
Income (Loss)
|
Total
|
|||||||||||||||||||
Six
Months Ended June 30,
|
||||||||||||||||||||||||
Balance at December 31, 2021
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||
Net income
|
—
|
|
|
|
|
|
||||||||||||||||||
Cash dividends declared - $
|
—
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Other comprehensive loss
|
—
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Impact of adoption of Topic 842 related to leases
|
— | ( |
) | ( |
) | |||||||||||||||||||
Exercise of employee stock options and vesting of restricted stock units, net of
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||
Repurchases of common stock
|
(
|
)
|
(
|
)
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||
Stock-based compensation
|
—
|
|
|
|
|
|
||||||||||||||||||
Balance at June 30, 2022
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||
Balance at December 31, 2022
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||
Net income
|
—
|
|
|
|
|
|
||||||||||||||||||
Cash dividends declared - $
|
—
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Other comprehensive income
|
—
|
|
|
|
|
|
||||||||||||||||||
Impact of adoption of ASU 2016-13 - CECL
|
— | ( |
) | ( |
) | |||||||||||||||||||
Exercise of employee stock options and vesting of restricted stock units, net of
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||
Repurchases of common stock
|
(
|
)
|
(
|
)
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||
Stock-based compensation
|
—
|
|
|
|
|
|
||||||||||||||||||
Balance at June 30, 2023
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||
Three Months Ended June 30,
|
||||||||||||||||||||||||
Balance at March 31,
2022
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||
Net income
|
—
|
|
|
|
|
|
||||||||||||||||||
Cash dividends declared - $
|
—
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Other comprehensive loss
|
—
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Impact of adoption of Topic 842 related to leases
|
— | ( |
) | ( |
) | |||||||||||||||||||
Exercise of employee stock options and vesting of restricted stock units, net of
|
( |
) | ||||||||||||||||||||||
Repurchases of common stock
|
(
|
)
|
(
|
)
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||
Stock-based compensation
|
—
|
|
|
|
|
|
||||||||||||||||||
Balance at June 30, 2022
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||
Balance at March 31, 2023
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||
Net income
|
—
|
|
|
|
|
|
||||||||||||||||||
Cash dividends declared - $
|
—
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Other comprehensive loss
|
—
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Exercise of employee stock options and vesting of restricted stock units, net of
|
( |
) | ||||||||||||||||||||||
Repurchases of common stock |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Stock-based compensation
|
—
|
|
|
|
|
|
||||||||||||||||||
Balance at June 30, 2023
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Six Months Ended
June 30,
|
||||||||
2023
|
2022
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Adjustments to reconcile net income to net cash from operating activities:
|
||||||||
Provision for credit losses
|
|
(
|
)
|
|||||
Provision for foreclosed asset losses
|
||||||||
Depreciation and amortization
|
|
|
||||||
Accretion and amortization
|
|
|
||||||
Other gains, net
|
(
|
)
|
(
|
)
|
||||
Gain on sale of subsidiary
|
( |
) | ||||||
Loss on sale of securities
|
||||||||
Net gain on sales of loans
|
(
|
)
|
(
|
)
|
||||
Proceeds from sales of loans held for sale
|
|
|
||||||
Loans originated for sale
|
(
|
)
|
(
|
)
|
||||
Deferred income tax expense (benefit)
|
( |
) | ||||||
Earnings on bank-owned life insurance
|
(
|
)
|
(
|
)
|
||||
Stock-based compensation
|
|
|
||||||
Change in valuation of mortgage servicing rights
|
|
(
|
)
|
|||||
Net change in:
|
||||||||
Accrued interest receivable and other assets
|
(
|
)
|
|
|||||
Accrued expenses and other liabilities
|
|
|
||||||
Net cash provided by operating activities
|
|
|
||||||
Cash flows from investing activities:
|
||||||||
Activity in securities available for sale:
|
||||||||
Purchases
|
|
(
|
)
|
|||||
Sales
|
||||||||
Maturities, prepayments, and calls
|
|
|
||||||
Loan originations and principal collections, net
|
(
|
)
|
(
|
)
|
||||
Purchases of premises and equipment
|
(
|
)
|
(
|
)
|
||||
Proceeds from sales of premises and equipment
|
|
|
||||||
Proceeds from sale of subsidiary
|
||||||||
Proceeds from sales of foreclosed assets
|
|
|
||||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Net change in deposits
|
|
|
||||||
Payments to tax authorities for stock-based compensation
|
(
|
)
|
(
|
)
|
||||
Cash dividends paid on common stock
|
(
|
)
|
(
|
)
|
||||
Payments to repurchase common stock
|
(
|
)
|
(
|
)
|
||||
Net cash provided by financing activities
|
|
|
||||||
Net change in cash and cash equivalents
|
|
(
|
)
|
|||||
Beginning cash and cash equivalents
|
|
|
||||||
Ending cash and cash equivalents
|
$
|
|
$
|
|
||||
Supplemental disclosures of cash flow information:
|
||||||||
Interest paid on deposits and borrowed funds
|
$
|
|
$
|
|
||||
Income taxes paid
|
||||||||
Supplemental schedule of noncash activities:
|
||||||||
Loans transferred to foreclosed assets
|
$
|
|
$
|
|
||||
Premises and equipment transferred to other real estate owned
|
||||||||
Additions to mortgage servicing rights
|
|
|
Wholly-Owned, Consolidated Subsidiaries:
|
|
|
Bank subsidiary
|
|
Non-bank subsidiary
|
|
Non-bank subsidiary
|
|
Non-bank subsidiary
|
|
Non-bank subsidiary
|
Wholly-Owned, Equity Method Subsidiaries:
|
|
|
Non-bank subsidiaries
|
(Dollars in thousands) |
January 1, 2023
|
|||||||||||
Pre-Adoption
|
Impact of
Adoption
|
Post-Adoption
|
||||||||||
Commercial real estate
|
$
|
|
$
|
|
$
|
|
||||||
Commercial – specialized
|
|
|
|
|||||||||
Commercial - general
|
|
(
|
)
|
|
||||||||
Consumer:
|
||||||||||||
1-4 family
residential
|
|
|
|
|||||||||
Auto loans
|
|
(
|
)
|
|
||||||||
Other consumer
|
|
(
|
)
|
|
||||||||
Construction
|
|
|
|
|||||||||
Total allowance for credit losses on loans
|
$
|
|
$
|
|
$
|
|
||||||
Allowance for credit losses for off-balance sheet exposures
|
$
|
|
$
|
|
$
|
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Allowance
for Credit
Losses
|
Fair
Value
|
||||||||||||||||
June 30, 2023
|
||||||||||||||||||||
Available for sale:
|
||||||||||||||||||||
State and municipal
|
$
|
|
$
|
|
$
|
(
|
)
|
$ |
$
|
|
||||||||||
Residential mortgage-backed
securities
|
( |
) | ||||||||||||||||||
Commercial mortgage-backed securities
|
( |
) | ||||||||||||||||||
Commercial collateralized mortgage obligations
|
|
|
(
|
)
|
|
|||||||||||||||
Asset-backed and other amortizing securities
|
|
|
(
|
)
|
|
|||||||||||||||
Other securities
|
|
|
(
|
)
|
|
|||||||||||||||
$
|
|
$
|
|
$
|
(
|
)
|
$ |
$
|
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
|||||||||||||
December 31, 2022
|
||||||||||||||||
Available for sale:
|
||||||||||||||||
State and municipal
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
Residential mortgage-backed securities
|
( |
) | ||||||||||||||
Commercial mortgage-backed securities
|
( |
) | ||||||||||||||
Commercial collateralized mortgage obligations
|
|
|
(
|
)
|
|
|||||||||||
Asset-backed and other amortizing securities
|
|
|
(
|
)
|
|
|||||||||||
Other securities
|
|
|
(
|
)
|
|
|||||||||||
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Available for Sale
|
||||||||
Amortized
Cost
|
Fair
Value
|
|||||||
Within 1 year
|
$
|
|
$
|
|
||||
After 1 year through 5 years
|
|
|
||||||
After 5 years through 10 years
|
|
|
||||||
After 10 years
|
|
|
||||||
Other
|
|
|
||||||
$
|
|
$
|
|
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
|||||||||||||||||||
June 30, 2023
|
||||||||||||||||||||||||
State and municipal
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Residential mortgage-backed securities
|
||||||||||||||||||||||||
Commercial mortgage-backed securities
|
||||||||||||||||||||||||
Commercial collateralized mortgage obligations
|
|
|
|
|
|
|
||||||||||||||||||
Asset-backed and other amortizing securities
|
|
|
|
|
|
|
||||||||||||||||||
Other securities
|
|
|
|
|
|
|
||||||||||||||||||
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||
December 31, 2022
|
||||||||||||||||||||||||
State and municipal
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Residential mortgage-backed securities
|
||||||||||||||||||||||||
Commercial mortgage-backed securities
|
||||||||||||||||||||||||
Commercial collateralized mortgage obligations
|
|
|
|
|
|
|
||||||||||||||||||
Asset-backed and other amortizing securities
|
|
|
|
|
|
|
||||||||||||||||||
Other securities
|
|
|
|
|
|
|
||||||||||||||||||
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
June 30,
2023
|
December 31,
2022
|
|||||||
Commercial real estate
|
$
|
|
$
|
|
||||
Commercial - specialized
|
|
|
||||||
Commercial - general
|
|
|
||||||
Consumer:
|
||||||||
1-4 family residential
|
|
|
||||||
Auto loans
|
|
|
||||||
Other consumer
|
|
|
||||||
Construction
|
|
|
||||||
|
|
|||||||
Allowance for credit losses on loans
|
(
|
)
|
(
|
)
|
||||
Loans, net
|
$
|
|
$
|
|
Beginning
Balance
|
Provision for
Credit
Losses(1)
|
Charge-offs
|
Recoveries
|
Ending
Balance
|
||||||||||||||||
For the three months ended June 30, 2023
|
||||||||||||||||||||
Commercial real estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Commercial - specialized
|
|
|
|
|
|
|||||||||||||||
Commercial - general
|
|
|
(
|
)
|
|
|
||||||||||||||
Consumer:
|
||||||||||||||||||||
1-4 family residential
|
|
|
|
|
|
|||||||||||||||
Auto loans
|
|
|
(
|
)
|
|
|
||||||||||||||
Other consumer
|
|
|
(
|
)
|
|
|
||||||||||||||
Construction
|
|
(
|
)
|
|
|
|
||||||||||||||
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||||
For the three months ended June 30, 2022
|
||||||||||||||||||||
Commercial real estate
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||||
Commercial - specialized
|
|
|
(
|
)
|
|
|
||||||||||||||
Commercial - general
|
|
(
|
)
|
(
|
)
|
|
|
|||||||||||||
Consumer:
|
||||||||||||||||||||
1-4 family residential
|
|
|
|
|
|
|||||||||||||||
Auto loans
|
|
|
(
|
)
|
|
|
||||||||||||||
Other consumer
|
|
|
(
|
)
|
|
|
||||||||||||||
Construction
|
|
|
(
|
)
|
|
|
||||||||||||||
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
Beginning
Balance
|
Impact of
CECL
Adoption
|
Provision for
Credit
Losses(1)
|
Charge-offs
|
Recoveries
|
Ending
Balance
|
|||||||||||||||||||
For the six months ended June 30, 2023
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
|
$ |
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||
Commercial - specialized
|
|
|
|
|
|
|||||||||||||||||||
Commercial - general
|
|
( |
) |
|
(
|
)
|
|
|
||||||||||||||||
Consumer:
|
||||||||||||||||||||||||
1-4 family residential
|
|
|
|
|
|
|||||||||||||||||||
Auto loans
|
|
( |
) |
|
(
|
)
|
|
|
||||||||||||||||
Other consumer
|
|
( |
) |
|
(
|
)
|
|
|
||||||||||||||||
Construction
|
|
|
(
|
)
|
|
|
||||||||||||||||||
|
$
|
|
$ |
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
Beginning
Balance
|
Provision for
Credit Losses
|
Charge-offs | Recoveries |
Ending
Balance
|
||||||||||||||||
For the six months ended June 30, 2022
|
||||||||||||||||||||
Commercial real estate
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||||
Commercial - specialized
|
|
(
|
)
|
(
|
)
|
|
|
|||||||||||||
Commercial - general
|
|
|
(
|
)
|
|
|
||||||||||||||
Consumer:
|
||||||||||||||||||||
1-4 family residential
|
|
|
(
|
)
|
|
|
||||||||||||||
Auto loans
|
|
|
(
|
)
|
|
|
||||||||||||||
Other consumer
|
|
|
(
|
)
|
|
|
||||||||||||||
Construction
|
|
|
(
|
)
|
|
|
||||||||||||||
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
|
Real Estate |
Equipment |
Accounts
Receivable
|
Total Loans
Individually
Evaluated
|
Total ACL
for
Individually
Evaluated
Loans
|
|||||||||||||||
June 30, 2023
|
||||||||||||||||||||
Commercial real estate
|
$ | $ | $ |
$
|
|
$
|
|
|||||||||||||
Commercial - specialized
|
|
|
||||||||||||||||||
Commercial - general
|
|
|
||||||||||||||||||
Consumer:
|
||||||||||||||||||||
1-4 family residential
|
|
|
||||||||||||||||||
Auto loans
|
|
|
||||||||||||||||||
Other consumer
|
|
|
||||||||||||||||||
Construction
|
|
|
||||||||||||||||||
|
$ |
$ |
$ |
$
|
|
$
|
|
Recorded Investment
|
ACL for Loans
|
|||||||||||||||
Individually
Evaluated
|
Collectively
Evaluated
|
Individually
Evaluated
|
Collectively
Evaluated
|
|||||||||||||
December 31, 2022
|
||||||||||||||||
Commercial real estate
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Commercial - specialized
|
|
|
|
|
||||||||||||
Commercial - general
|
|
|
|
|
||||||||||||
Consumer:
|
||||||||||||||||
1-4 family residential
|
|
|
|
|
||||||||||||
Auto loans
|
|
|
|
|
||||||||||||
Other consumer
|
|
|
|
|
||||||||||||
Construction
|
|
|
|
|
||||||||||||
|
$
|
|
$
|
|
$
|
|
$
|
|
Unpaid
Contractual
Principal
Balance
|
Recorded
Investment
With No
Allowance
|
Recorded
Investment
With
Allowance
|
Total
Recorded
Investment
|
Related
Allowance
|
Average
Recorded
Investment
|
|||||||||||||||||||
December 31, 2022
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Commercial - specialized
|
|
|
|
|
|
|
||||||||||||||||||
Commercial - general
|
|
|
|
|
|
|
||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||
1-4 family
|
|
|
|
|
|
|
||||||||||||||||||
Auto loans
|
|
|
|
|
|
|
||||||||||||||||||
Other consumer
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
30-89 Days
Past Due
|
90 Days or
More Past
Due
|
Nonaccrual
|
Nonaccrual
with no
ACL
|
|||||||||||||
June 30, 2023
|
||||||||||||||||
Commercial real estate
|
$
|
|
$
|
|
$
|
|
$ | |||||||||
Commercial - specialized
|
|
|
|
|||||||||||||
Commercial - general
|
|
|
|
|||||||||||||
Consumer:
|
||||||||||||||||
1-4 Family residential
|
|
|
|
|||||||||||||
Auto loans
|
|
|
|
|||||||||||||
Other consumer
|
|
|
|
|||||||||||||
Construction
|
|
|
|
|||||||||||||
|
$
|
|
$
|
|
$
|
|
$ |
30-89 Days
Past Due
|
90 Days or
More Past Due
|
Nonaccrual |
||||||||||
December 31, 2022
|
||||||||||||
Commercial real estate
|
$
|
|
$
|
|
$
|
|
||||||
Commercial - specialized
|
|
|
|
|||||||||
Commercial - general
|
|
|
|
|||||||||
Consumer:
|
||||||||||||
1-4 Family residential
|
|
|
|
|||||||||
Auto loans
|
|
|
|
|||||||||
Other consumer
|
|
|
|
|||||||||
Construction
|
|
|
|
|||||||||
|
$
|
|
$
|
|
$
|
|
|
Term Loans
|
|||||||||||||||||||||||||||||||
|
Amortized Cost Basis by Origination Year
|
|||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
|
2023
|
2022
|
2021
|
2020
|
2019
|
Prior
|
Revolving Loans
|
Total
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||
Total commercial real estate loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Current period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Commercial - specialized:
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||
Total commercial - specialized loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Current period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Commercial - general:
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||
Total commercial - general loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Current period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Consumer: 1-4 family residential:
|
||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||
Total consumer: 1-4 family residential loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Current period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Consumer: auto loans:
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||
Total consumer: auto loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Current period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Consumer: other consumer:
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||
Total consumer: other consumer loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Current period gross charge-offs
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Construction:
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||
Total construction loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Current period gross charge-offs
|
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
Pass
|
Special
Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
Commercial real estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Commercial - specialized
|
|
|
|
|
|
|||||||||||||||
Commercial - general
|
|
|
|
|
|
|||||||||||||||
Consumer:
|
||||||||||||||||||||
1-4 family residential
|
|
|
|
|
|
|||||||||||||||
Auto loans
|
|
|
|
|
|
|||||||||||||||
Other consumer
|
|
|
|
|
|
|||||||||||||||
Construction
|
|
|
|
|
|
|||||||||||||||
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
Payment
Delay
|
Term
Extension
|
Term
Extension
and
Payment
Delay
|
Term
Extension and
Interest Rate
Reduction
|
Payment
Delay and
Interest Rate
Reduction
|
Payment
Delay, Term
Extension,
and Interest
Rate
Reduction
|
Total Class
of Financing
Receivable
|
|||||||||||||||||||||
Three Months Ended June 30, 2023
|
||||||||||||||||||||||||||||
Commercial real estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$ |
$ |
$ |
|
%
|
|||||||||||||||
Commercial - specialized
|
|
|
|
|
|
%
|
||||||||||||||||||||||
Commercial - general
|
|
|
|
|
|
%
|
||||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||||||
1-4 family
|
|
|
|
|
|
%
|
||||||||||||||||||||||
Auto loans
|
|
|
|
|
|
%
|
||||||||||||||||||||||
Other consumer
|
|
|
|
|
|
%
|
||||||||||||||||||||||
Construction
|
|
|
|
|
|
%
|
||||||||||||||||||||||
|
$
|
|
$
|
|
$
|
|
$
|
|
$ |
$ |
$ |
|
%
|
|
Payment
Delay
|
Term
Extension
|
Term
Extension
and
Payment
Delay
|
Term
Extension and
Interest Rate
Reduction
|
Payment
Delay and
Interest Rate
Reduction
|
Payment
Delay, Term
Extension,
and Interest
Rate
Reduction
|
Total Class
of Financing
Receivable
|
|||||||||||||||||||||
Six Months Ended June 30, 2023
|
||||||||||||||||||||||||||||
Commercial real estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$ | $ |
$
|
|
%
|
|||||||||||||||
Commercial - specialized
|
|
|
|
|
|
%
|
||||||||||||||||||||||
Commercial - general
|
|
|
|
|
|
%
|
||||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||||||
1-4 family
|
|
|
|
|
|
%
|
||||||||||||||||||||||
Auto loans
|
|
|
|
|
|
%
|
||||||||||||||||||||||
Other consumer
|
|
|
|
|
|
%
|
||||||||||||||||||||||
Construction
|
|
|
|
|
|
%
|
||||||||||||||||||||||
|
$
|
|
$
|
|
$
|
|
$
|
|
$ | $ |
$
|
|
%
|
|
30-89 Days
Past Due
|
90 Days or
More Past Due
and Still
Accruing
|
Nonaccrual
|
|||||||||
June 30, 2023
|
||||||||||||
Commercial real estate
|
$
|
|
$
|
|
$
|
|
||||||
Commercial - specialized
|
|
|
|
|||||||||
Commercial - general
|
|
|
|
|||||||||
Consumer:
|
||||||||||||
1-4 Family residential
|
|
|
|
|||||||||
Auto loans
|
|
|
|
|||||||||
Other consumer
|
|
|
|
|||||||||
Construction
|
|
|
|
|||||||||
|
$
|
|
$
|
|
$
|
|
|
Principal
Forgiveness
|
Weighted-
Average
Interest Rate
Reduction
|
Weighted-
Average
Term
Extension
(Months)
|
|||||||||
Three Months Ended June 30, 2023
|
||||||||||||
Commercial real estate
|
$
|
|
|
%
|
|
|||||||
Commercial - specialized
|
|
|
%
|
|
||||||||
Commercial - general
|
|
|
%
|
|
||||||||
Consumer:
|
||||||||||||
1-4 Family residential
|
|
|
%
|
|
||||||||
Auto loans
|
|
|
%
|
—
|
||||||||
Other consumer
|
|
|
%
|
—
|
||||||||
Construction
|
|
|
%
|
|
||||||||
|
$
|
|
|
%
|
|
|
Principal
Forgiveness
|
Weighted-
Average
Interest Rate
Reduction
|
Weighted-
Average
Term
Extension
(Months)
|
|||||||||
Six Months Ended June 30, 2023
|
||||||||||||
Commercial real estate
|
$
|
|
|
%
|
|
|||||||
Commercial - specialized
|
|
|
%
|
|
||||||||
Commercial - general
|
|
|
%
|
|
||||||||
Consumer:
|
||||||||||||
1-4 Family residential
|
|
|
%
|
|
||||||||
Auto loans
|
|
|
%
|
|
||||||||
Other consumer
|
|
|
%
|
—
|
||||||||
Construction
|
|
|
%
|
|
||||||||
|
$
|
|
|
%
|
|
June 30,
2023
|
December 31,
2022
|
|||||||
Amortized intangible assets
|
||||||||
Core deposit intangible
|
$
|
|
$
|
|
||||
Less: Accumulated amortization
|
(
|
)
|
(
|
)
|
||||
|
|
|||||||
Other intangibles
|
|
|
||||||
Less: Accumulated amortization
|
|
(
|
)
|
|||||
|
|
|||||||
Other intangible assets, net
|
$
|
|
$
|
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Beginning balance
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Additions
|
|
|
|
|
||||||||||||
Valuation adjustment
|
|
|
(
|
)
|
|
|||||||||||
Ending balance
|
$
|
|
$
|
|
$
|
|
$
|
|
June 30,
|
December 31,
|
|||||||
2023
|
2022
|
|||||||
Mortgage loans serviced for others
|
$
|
|
$
|
|
||||
Mortgage servicing rights assets as a percentage of serviced mortgage loans
|
|
%
|
|
%
|
June 30,
|
December 31,
|
|||||||
2023
|
2022
|
|||||||
Weighted average constant prepayment rate
|
|
%
|
|
%
|
||||
Weighted average discount rate
|
|
%
|
|
%
|
||||
Weighted average life in years
|
|
|
Number
of Shares
|
Weighted-Average
Exercise Price
|
Weighted-Average
Remaining Contractual
Life in Years
|
Aggregate
Intrinsic Value
|
|||||||||||||
Six Months Ended June 30, 2023
|
||||||||||||||||
Outstanding at beginning of year:
|
|
$
|
|
$
|
|
|||||||||||
Granted
|
|
|
|
|||||||||||||
Exercised
|
(
|
)
|
|
(
|
)
|
|||||||||||
Forfeited
|
(
|
)
|
|
(
|
)
|
|||||||||||
Expired
|
(
|
)
|
|
(
|
)
|
|||||||||||
Balance, June 30, 2023
|
|
$
|
|
|
$
|
|
||||||||||
Exercisable at end of period
|
|
$
|
|
|
$
|
|
||||||||||
Vested at end of period
|
|
$
|
|
|
$
|
|
Six Months Ended
June 30,
|
||||||||
2023
|
2022
|
|||||||
Expected volatility
|
|
|
||||||
Expected dividend yield
|
|
|
|
|
||||
Expected term (years)
|
|
|
||||||
Risk-free interest rate
|
|
|
||||||
Weighted average grant date fair value
|
$
|
|
$
|
|
Number
of Shares
|
Weighted-Average
Grant Date
Fair Value
|
|||||||
Six Months Ended June 30, 2023
|
||||||||
Outstanding at beginning of year:
|
|
$
|
|
|||||
Granted
|
|
|
||||||
Vested
|
(
|
)
|
|
|||||
Forfeited
|
(
|
)
|
|
|||||
Balance, June 30, 2023
|
|
$
|
|
June 30,
2023
|
December 31,
2022
|
|||||||
Commitments to grant loans and unfunded commitments under lines of credit
|
$
|
|
$
|
|
||||
Standby letters of credit
|
|
|
June 30,
2023
|
December 31,
2022
|
|||||||
Operating lease right of use assets (included in )
|
$
|
|
$ | |||||
Operating lease liabilities (included in )
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Cash paid for amounts included in the measurement of lease liabilities:
|
||||||||||||||||
Operating cash flows used in operating leases
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Right-of-use assets obtained in exchange for new lease obligations:
|
||||||||||||||||
Operating leases
|
$
|
|
$
|
|
$
|
|
$
|
|
2023
|
$
|
|
||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
Thereafter
|
|
|||
Total minimum lease payments
|
|
|||
Less: Amount representing interest
|
(
|
)
|
||
Lease liabilities
|
$
|
|
Actual
|
Minimum Required
Under BASEL III
Fully Phased-In
|
To Be Well Capitalized
Under Prompt Corrective
Action Framework
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
June 30, 2023
|
||||||||||||||||||||||||
Total Capital to Risk Weighted Assets:
|
||||||||||||||||||||||||
Consolidated
|
$
|
|
|
%
|
$
|
|
|
%
|
N/A
|
N/A
|
||||||||||||||
City Bank
|
|
|
%
|
|
|
%
|
$
|
|
|
%
|
||||||||||||||
Tier I Capital to Risk Weighted Assets:
|
||||||||||||||||||||||||
Consolidated
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
||||||||||||||||
City Bank
|
|
|
%
|
|
|
%
|
|
|
%
|
|||||||||||||||
Common Equity Tier 1 to Risk Weighted Assets:
|
||||||||||||||||||||||||
Consolidated
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
||||||||||||||||
City Bank
|
|
|
%
|
|
|
%
|
|
|
%
|
|||||||||||||||
Tier I Capital to Average Assets:
|
||||||||||||||||||||||||
Consolidated
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
||||||||||||||||
City Bank
|
|
|
%
|
|
|
%
|
|
|
%
|
|||||||||||||||
December 31, 2022
|
||||||||||||||||||||||||
Total Capital to Risk Weighted Assets:
|
||||||||||||||||||||||||
Consolidated
|
$
|
|
|
%
|
$
|
|
|
%
|
N/A
|
N/A
|
||||||||||||||
City Bank
|
|
|
%
|
|
|
%
|
$
|
|
|
%
|
||||||||||||||
Tier I Capital to Risk Weighted Assets:
|
||||||||||||||||||||||||
Consolidated
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
||||||||||||||||
City Bank
|
|
|
%
|
|
|
%
|
|
|
%
|
|||||||||||||||
Common Equity Tier 1 to Risk Weighted Assets:
|
||||||||||||||||||||||||
Consolidated
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
||||||||||||||||
City Bank
|
|
|
%
|
|
|
%
|
|
|
%
|
|||||||||||||||
Tier I Capital to Average Assets:
|
||||||||||||||||||||||||
Consolidated
|
|
|
%
|
|
|
%
|
N/A
|
N/A
|
||||||||||||||||
City Bank
|
|
|
%
|
|
|
%
|
|
|
%
|
Three Months Ended
|
||||||||||
June 30,
|
||||||||||
Interest Rate Contracts
|
Location
|
2023
|
2022
|
|||||||
Change in fair value of interest rate swaps hedging investment securities
|
Other noninterest expense
|
$
|
|
$
|
|
|||||
Change in fair value of hedged investment securities
|
Other noninterest expense
|
(
|
)
|
(
|
)
|
|||||
Change in fair value of interest rate swaps hedging fixed rate loans
|
Interest income -
Loans |
$ | $ | |||||||
Change in fair value of hedged fixed rate loans
|
Interest income - Loans |
( |
) | ( |
) |
Six Months Ended | ||||||||||
June 30,
|
||||||||||
Interest Rate Contracts
|
Location
|
2023
|
2022
|
|||||||
Change in fair value of interest rate swaps hedging investment securities
|
Other noninterest expense
|
$
|
(
|
)
|
$
|
|
||||
Change in fair value of hedged investment securities
|
Other noninterest expense
|
|
(
|
)
|
||||||
Change in fair value of interest rate swaps hedging fixed rate loans
|
Interest income - Loans
|
$
|
|
$
|
|
|||||
Change in fair value of hedged fixed rate loans
|
Interest income - Loans
|
(
|
)
|
(
|
)
|
June 30, 2023
|
December 31, 2022
|
|||||||||||||||
Notional
Amount
|
Fair
Value
|
Notional
Amount
|
Fair
Value
|
|||||||||||||
Included in other liabilities:
|
||||||||||||||||
Interest rate swaps related to fixed rate loans
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Interest rate swaps related to state and municipal securities
|
|
|
|
|
||||||||||||
Included in other assets:
|
||||||||||||||||
Interest rate swaps related to fixed rate loans
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Interest rate swaps related to state and municipal securities
|
|
|
|
|
Three Months Ended
|
|||||||||
|
|
June 30,
|
|||||||
Location |
2023
|
2022
|
|||||||
Forward contracts related to mortgage loans held for sale
|
Net gain (loss) on sales of loans
|
$
|
|
$
|
|
||||
Interest rate lock commitments | Net gain (loss) on sales of loans | $ | ( |
) | $ | ( |
) |
Six Months Ended | |||||||||
June 30,
|
|||||||||
|
Location |
2023
|
2022
|
||||||
Forward contracts related to mortgage loans held for sale
|
Net gain (loss) on sales of loans
|
$
|
|
$
|
(
|
)
|
|||
Interest rate lock commitments
|
Net gain (loss) on sales of loans
|
$
|
(
|
)
|
$
|
|
June 30, 2023
|
December 31, 2022
|
|||||||||||||||
Notional
Amount
|
Fair
Value
|
Notional
Amount
|
Fair
Value
|
|||||||||||||
Included in other assets:
|
||||||||||||||||
Forward contracts related to mortgage loans held for sale
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Interest rate lock commitments
|
|
|
|
|
||||||||||||
Total included in other assets
|
$ |
$ |
$ |
$ |
||||||||||||
Included in other liabilities:
|
||||||||||||||||
Forward contracts related to mortgage loans held for sale
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Interest rate lock commitments
|
||||||||||||||||
Total included in other liabilities
|
$ |
$ |
$ |
$ |
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Weighted average common shares outstanding - basic
|
|
|
|
|
||||||||||||
Effect of dilutive securities:
|
||||||||||||||||
Stock-based compensation awards
|
|
|
|
|
||||||||||||
Weighted average common shares outstanding - diluted
|
|
|
|
|
||||||||||||
Basic earnings per share
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Diluted earnings per share
|
$
|
|
$
|
|
$
|
|
$
|
|
● |
Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or
liabilities that the reporting entity has the ability to access at the measurement date.
|
● |
Level 2 Inputs - Inputs other than quoted prices included in Level 1 that are observable for
the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs
other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or
other means.
|
● |
Level 3 Inputs - Significant unobservable inputs for determining the fair values of assets
or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
June 30, 2023
|
||||||||||||||||
Assets (liabilities) measured at fair value on a recurring basis:
|
||||||||||||||||
Securities available for sale:
|
||||||||||||||||
State and municipal
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Residential mortgage-backed securities
|
|
|
|
|
||||||||||||
Commercial mortgage-backed securities
|
||||||||||||||||
Collateralized mortgage obligations
|
|
|
|
|
||||||||||||
Asset-backed and other amortizing securities
|
|
|
|
|
||||||||||||
Other securities
|
|
|
|
|
||||||||||||
Loans held for sale (mandatory)
|
|
|
|
|
||||||||||||
Mortgage servicing rights
|
|
|
|
|
||||||||||||
Asset derivatives
|
|
|
|
|
||||||||||||
Liability derivatives
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Assets measured at fair value on a non-recurring basis:
|
||||||||||||||||
Loans held for investment
|
|
|
|
|
||||||||||||
December 31, 2022
|
||||||||||||||||
Assets (liabilities) measured at fair value on a recurring basis:
|
||||||||||||||||
Securities available for sale:
|
||||||||||||||||
State and municipal
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Residential mortgage-backed securities
|
|
|
|
|
||||||||||||
Commercial mortgage-backed securities
|
||||||||||||||||
Collateralized mortgage obligations
|
|
|
|
|
||||||||||||
Asset-backed and other amortizing securities
|
|
|
|
|
||||||||||||
Other securities
|
|
|
|
|
||||||||||||
Loans held for sale (mandatory)
|
|
|
|
|
||||||||||||
Mortgage servicing rights
|
|
|
|
|
||||||||||||
Asset derivatives
|
|
|
|
|
||||||||||||
Liability derivatives
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Assets measured at fair value on a non-recurring basis:
|
||||||||||||||||
Loans held for investment
|
|
|
|
|
Fair
Value
|
Valuation
Techniques
|
Unobservable
Inputs
|
Range of
Discounts
|
||||||||
June 30, 2023
|
|||||||||||
Non-recurring: |
|||||||||||
Loans held for investment
|
$
|
|
Third party appraisals or inspections
|
Collateral discounts and selling costs
|
|
%
|
|||||
Recurring: |
|||||||||||
Mortgage servicing rights
|
|
Discounted cash flows
|
Conditional prepayment rate
|
|
%
|
||||||
Discount rate
|
|
%
|
|||||||||
December 31, 2022
|
|||||||||||
Non-recurring: |
|||||||||||
Loans held for investment
|
$
|
|
Third party appraisals or inspections
|
Collateral discounts and selling costs
|
|
%
|
|||||
Recurring: |
|||||||||||
Mortgage servicing rights
|
|
Discounted cash flows
|
Conditional prepayment rate
|
|
%
|
||||||
Discount rate
|
|
%
|
Carrying
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
Fair Value
|
||||||||||||||||
June 30, 2023
|
||||||||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Loans held for investment, net
|
|
|
|
|
|
|||||||||||||||
Loans held for sale (best efforts)
|
||||||||||||||||||||
Accrued interest receivable
|
|
|
|
|
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Accrued interest payable
|
|
|
|
|
|
|||||||||||||||
Junior subordinated deferrable interest debentures
|
|
|
|
|
|
|||||||||||||||
Subordinated debt securities
|
|
|
|
|
|
Carrying
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
Fair Value
|
||||||||||||||||
December 31, 2022
|
||||||||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Loans held for investment, net
|
|
|
|
|
|
|||||||||||||||
Loans held for sale (best efforts)
|
||||||||||||||||||||
Accrued interest receivable
|
|
|
|
|
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Accrued interest payable
|
|
|
|
|
|
|||||||||||||||
Junior subordinated deferrable interest debentures
|
|
|
|
|
|
|||||||||||||||
Subordinated debt securities
|
|
|
|
|
|
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
● |
potential recession in the United States and our market areas;
|
● |
the impacts related to or resulting from recent bank failures and any continuation of the recent uncertainty in the banking industry, including the associated impact to the Company and other financial
institutions of any regulatory changes or other mitigation efforts taken by government agencies in response thereto;
|
● |
increased competition for deposits and related changes in deposit customer behavior;
|
● |
the persistence of the current inflationary environment in the United States and our market areas, and its impact on market interest rates, the economy and credit quality;
|
● |
the adequacy of the allowance for credit losses;
|
● |
our ability to effectively execute our expansion strategy and manage our growth, including identifying and consummating suitable acquisitions;
|
● |
business and economic conditions, particularly those affecting our market areas, as well as the concentration of our business in such market areas;
|
● |
high concentrations of loans secured by real estate located in our market areas;
|
● |
risks associated with our commercial loan portfolio, including the risk of declines in commercial real estate prices or deterioration in value of the general business assets that secure such loans;
|
● |
potential changes in the prices, values and sales volumes of commercial and residential real estate securing our real estate loans;
|
● |
increases in unemployment rates in the United States and our market areas;
|
● |
risks associated with our agricultural loan portfolio, including the heightened sensitivity to weather conditions, commodity prices, and other factors generally outside the borrowers and our control;
|
● |
risks associated with the sale of our insurance subsidiary, Windmark Insurance Agency, Inc. d/b/a Windmark Corp Division (“Windmark”) to Alliant Insurance Services, Inc., a California corporation (“Alliant”)
and certain post-closing obligations related to such sale;
|
● |
risks related to the significant amount of credit that we have extended to a limited number of borrowers and in a limited geographic area;
|
● |
public funds deposits comprising a relatively high percentage of our deposits;
|
● |
potential impairment on the goodwill we have recorded or may record in connection with business acquisitions;
|
● |
our ability to maintain our reputation;
|
● |
our ability to successfully manage our credit risk and the sufficiency of our allowance for credit losses;
|
● |
our ability to attract, hire and retain qualified management personnel;
|
● |
our dependence on our management team, including our ability to retain executive officers and key employees and their customer and community relationships;
|
● |
interest rate fluctuations, which could have an adverse effect on our profitability;
|
● |
competition from banks, credit unions and other financial services providers;
|
● |
our ability to keep pace with technological change or difficulties we may experience when implementing new technologies;
|
● |
risks related to system failures, service denials, cyber-attacks, security breaches and data breaches;
|
● |
our ability to maintain effective internal control over financial reporting;
|
● |
employee error, fraudulent activity by employees or customers and inaccurate or incomplete information about our customers and counterparties;
|
● |
increased capital requirements imposed by banking regulators, which may require us to raise capital at a time when capital is not available on favorable terms or at all;
|
● |
our ability to maintain adequate liquidity and to raise necessary capital to fund our acquisition strategy and operations or to meet increased minimum regulatory capital levels;
|
● |
costs and effects of litigation, investigations or similar matters to which we may be subject, including any effect on our reputation;
|
● |
natural disasters, severe weather, acts of god, acts of war or terrorism, outbreaks of hostilities, public health outbreaks (such as the COVID-19 pandemic or any future pandemic), other international or
domestic calamities, and other external events or matters beyond our control;
|
● |
uncertainty regarding United States fiscal debt and budget matters;
|
● |
tariffs and trade barriers;
|
● |
compliance with governmental and regulatory requirements, including the Dodd-Frank Act Wall Street Reform and Consumer Protection Act, the Economic Growth, Regulatory Relief, and Consumer Protection Act
(“EGRRCPA”), and others relating to banking, consumer protection, securities and tax matters; and
|
● |
changes in the laws, rules, regulations, interpretations or policies relating to financial institutions, accounting, tax, trade, current and future governmental monetary and fiscal policies, including the
uncertain impacts of ongoing quantitative tightening and current and future policies of the Board of Governors of the Federal Reserve System (“Federal Reserve”) and as a result of initiatives of the Biden administration.
|
Three Months Ended June 30,
|
||||||||||||||||||||||||
2023
|
2022
|
|||||||||||||||||||||||
Average
Balance
|
Interest
|
Yield/
Rate
|
Average
Balance
|
Interest
|
Yield/
Rate
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans(1)
|
$
|
2,894,087
|
$
|
42,872
|
5.94
|
%
|
$
|
2,549,264
|
$
|
35,420
|
5.57
|
%
|
||||||||||||
Investment securities – taxable
|
575,983
|
5,365
|
3.74
|
637,814
|
3,538
|
2.22
|
||||||||||||||||||
Investment securities – non-taxable
|
210,709
|
1,403
|
2.67
|
217,023
|
1,439
|
2.66
|
||||||||||||||||||
Other interest-earning assets(2)
|
149,996
|
1,484
|
3.97
|
329,869
|
658
|
0.80
|
||||||||||||||||||
Total interest-earning assets
|
3,830,775
|
51,124
|
5.35
|
3,733,970
|
41,055
|
4.41
|
||||||||||||||||||
Noninterest-earning assets
|
182,752
|
238,575
|
||||||||||||||||||||||
Total assets
|
$
|
4,013,527
|
$
|
3,972,545
|
||||||||||||||||||||
Liabilities and Stockholders’ Equity:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
NOW, savings and money market deposits
|
$
|
2,059,182
|
$
|
12,484
|
2.43
|
%
|
$
|
1,903,452
|
$
|
1,357
|
0.29
|
%
|
||||||||||||
Time deposits
|
299,358
|
1,949
|
2.61
|
334,819
|
960
|
1.15
|
||||||||||||||||||
Short-term borrowings
|
325
|
5
|
6.17
|
4
|
—
|
0.00
|
||||||||||||||||||
Notes payable & other longer-term borrowings
|
—
|
—
|
0.00
|
—
|
—
|
0.00
|
||||||||||||||||||
Subordinated debt securities
|
76,031
|
1,013
|
5.34
|
75,845
|
1,013
|
5.36
|
||||||||||||||||||
Junior subordinated deferrable interest debentures
|
46,393
|
789
|
6.82
|
46,393
|
317
|
2.74
|
||||||||||||||||||
Total interest-bearing liabilities
|
$
|
2,481,289
|
$
|
16,240
|
2.63
|
%
|
$
|
2,360,513
|
$
|
3,647
|
0.62
|
%
|
||||||||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
Noninterest-bearing deposits
|
$
|
1,075,514
|
$
|
1,171,454
|
||||||||||||||||||||
Other liabilities
|
76,727
|
64,933
|
||||||||||||||||||||||
Total noninterest-bearing liabilities
|
1,152,241
|
1,236,387
|
||||||||||||||||||||||
Stockholders’ equity
|
379,997
|
375,645
|
||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$
|
4,013,527
|
$
|
3,972,545
|
||||||||||||||||||||
Net interest income
|
$
|
34,884
|
$
|
37,408
|
||||||||||||||||||||
Net interest spread
|
2.73
|
%
|
3.79
|
%
|
||||||||||||||||||||
Net interest margin(3)
|
3.65
|
%
|
4.02
|
%
|
Six Months Ended June 30,
|
||||||||||||||||||||||||
2023
|
2022
|
|||||||||||||||||||||||
Average
Balance
|
Interest
|
Yield/
Rate
|
Average
Balance
|
Interest
|
Yield/
Rate
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans(1)
|
$
|
2,836,482
|
$
|
82,474
|
5.86
|
%
|
$
|
2,515,934
|
$
|
64,799
|
5.19
|
%
|
||||||||||||
Investment securities – taxable
|
580,705
|
10,605
|
3.68
|
579,243
|
5,892
|
2.05
|
||||||||||||||||||
Investment securities – non-taxable
|
211,950
|
2,815
|
2.68
|
217,672
|
2,887
|
2.67
|
||||||||||||||||||
Other interest-earning assets(2)
|
155,976
|
2,979
|
3.85
|
398,670
|
862
|
0.44
|
||||||||||||||||||
Total interest-earning assets
|
3,785,113
|
98,873
|
5.27
|
3,711,519
|
74,440
|
4.04
|
||||||||||||||||||
Noninterest-earning assets
|
186,114
|
250,376
|
||||||||||||||||||||||
Total assets
|
$
|
3,971,227
|
$
|
3,961,895
|
||||||||||||||||||||
Liabilities and Shareholders’ Equity:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
NOW, savings and money market deposits
|
$
|
2,023,869
|
$
|
22,468
|
2.24
|
%
|
$
|
1,920,609
|
$
|
2,268
|
0.24
|
%
|
||||||||||||
Time deposits
|
291,677
|
3,335
|
2.31
|
336,962
|
1,939
|
1.16
|
||||||||||||||||||
Short-term borrowings
|
165
|
5
|
6.11
|
4
|
—
|
0.00
|
||||||||||||||||||
Notes payable & other longer-term borrowings
|
—
|
—
|
0.00
|
—
|
—
|
0.00
|
||||||||||||||||||
Subordinated debt securities
|
76,008
|
2,025
|
5.37
|
75,822
|
2,025
|
5.39
|
||||||||||||||||||
Junior subordinated deferrable interest debentures
|
46,393
|
1,540
|
6.69
|
46,393
|
548
|
2.38
|
||||||||||||||||||
Total interest-bearing liabilities
|
$
|
2,438,112
|
$
|
29,373
|
2.43
|
%
|
$
|
2,379,790
|
$
|
6,780
|
0.57
|
%
|
||||||||||||
Noninterest-bearing liabilities:
|
||||||||||||||||||||||||
Noninterest-bearing deposits
|
$
|
1,092,429
|
$
|
1,137,771
|
||||||||||||||||||||
Other liabilities
|
69,443
|
57,887
|
||||||||||||||||||||||
Total noninterest-bearing liabilities
|
1,161,872
|
1,195,658
|
||||||||||||||||||||||
Shareholders’ equity
|
371,243
|
386,447
|
||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$
|
3,971,227
|
$
|
3,961,895
|
||||||||||||||||||||
Net interest income
|
$
|
69,500
|
$
|
67,660
|
||||||||||||||||||||
Net interest spread
|
2.84
|
%
|
3.47
|
%
|
||||||||||||||||||||
Net interest margin(3)
|
3.70
|
%
|
3.68
|
%
|
(1) |
Average loan balances include nonaccrual loans and loans held for sale.
|
(2) |
Includes income and average balances for interest-earning deposits at other banks, federal funds sold and other miscellaneous interest-earning assets.
|
(3) |
Net interest margin is calculated as the annualized net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.
|
Three Months Ended June 30,
|
||||||||||||
2023 over 2022
|
||||||||||||
Change due to:
|
Total
|
|||||||||||
Volume
|
Rate
|
Variance
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Interest-earning assets:
|
||||||||||||
Loans
|
$
|
4,791
|
$
|
2,661
|
$
|
7,452
|
||||||
Investment securities – taxable
|
(343
|
)
|
2,170
|
1,827
|
||||||||
Investment securities – non-taxable
|
(42
|
)
|
6
|
(36
|
)
|
|||||||
Other interest-earning assets
|
(359
|
)
|
1,185
|
826
|
||||||||
Total increase (decrease) in interest income
|
4,047
|
6,022
|
10,069
|
|||||||||
Interest-bearing liabilities:
|
||||||||||||
NOW, Savings, MMDAs
|
111
|
11,016
|
11,127
|
|||||||||
Time deposits
|
(102
|
)
|
1,091
|
989
|
||||||||
Short-term borrowings
|
—
|
5
|
5
|
|||||||||
Notes payable & other borrowings
|
—
|
—
|
—
|
|||||||||
Subordinated debt securities
|
2
|
(2
|
)
|
—
|
||||||||
Junior subordinated deferrable interest debentures
|
—
|
472
|
472
|
|||||||||
Total increase (decrease) interest expense:
|
11
|
12,582
|
12,593
|
|||||||||
Increase (decrease) in net interest income
|
$
|
4,036
|
$
|
(6,560
|
)
|
$
|
(2,524
|
)
|
Six Months Ended June 30,
|
||||||||||||
2023 over 2022
|
||||||||||||
Change due to:
|
Total
|
|||||||||||
Volume
|
Rate
|
Variance
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Interest-earning assets:
|
||||||||||||
Loan
|
$
|
8,256
|
$
|
9,419
|
$
|
17,675
|
||||||
Investment securities – taxable
|
15
|
4,698
|
4,713
|
|||||||||
Investment securities – non-taxable
|
(76
|
)
|
4
|
(72
|
)
|
|||||||
Other interest-earning assets
|
(525
|
)
|
2,642
|
2,117
|
||||||||
Total increase (decrease) in interest income
|
7,670
|
16,763
|
24,433
|
|||||||||
Interest-bearing liabilities:
|
||||||||||||
NOW, Savings, MMDAs
|
122
|
20,078
|
20,200
|
|||||||||
Time deposits
|
(261
|
)
|
1,657
|
1,396
|
||||||||
Short-term borrowings
|
—
|
5
|
5
|
|||||||||
Notes payable & other borrowings
|
—
|
—
|
—
|
|||||||||
Subordinated debt securities
|
5
|
(5
|
)
|
—
|
||||||||
Junior subordinated deferrable interest debentures
|
—
|
992
|
992
|
|||||||||
Total increase (decrease) interest expense:
|
(134
|
)
|
22,727
|
22,593
|
||||||||
Increase (decrease) in net interest income
|
$
|
7,804
|
$
|
(5,964
|
)
|
$
|
1,840
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||||||||||
2023
|
2022
|
Increase
(Decrease)
|
2023
|
2022
|
Increase
(Decrease)
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Noninterest income:
|
||||||||||||||||||||||||
Service charges on deposit accounts
|
$
|
1,745
|
$
|
1,612
|
$
|
133
|
$
|
3,446
|
$
|
3,385
|
$
|
61
|
||||||||||||
Income from insurance activities
|
37
|
1,577
|
(1,540
|
)
|
1,448
|
3,147
|
(1,699
|
)
|
||||||||||||||||
Bank card services and interchange fees
|
4,043
|
3,478
|
565
|
6,999
|
6,700
|
299
|
||||||||||||||||||
Mortgage banking activities
|
5,258
|
8,669
|
(3,411
|
)
|
7,544
|
22,306
|
(14,762
|
)
|
||||||||||||||||
Investment commissions
|
420
|
466
|
(46
|
)
|
809
|
1,012
|
(203
|
)
|
||||||||||||||||
Fiduciary income
|
597
|
635
|
(38
|
)
|
1,197
|
1,247
|
(50
|
)
|
||||||||||||||||
Gain on sale of subsidiary
|
33,488
|
—
|
33,488
|
33,488
|
—
|
33,488
|
||||||||||||||||||
Other income and fees(1)
|
1,524
|
2,398
|
(874
|
)
|
2,872
|
4,735
|
(1,863
|
)
|
||||||||||||||||
Total noninterest income
|
$
|
47,112
|
$
|
18,835
|
$
|
28,277
|
$
|
57,803
|
$
|
42,532
|
$
|
15,271
|
(1) |
Other income and fees includes income and fees associated with the increase in the cash surrender value of life insurance, safe deposit box rental, check printing, collections, wire transfer, Small Business
Investment Company (“SBIC”) investments, and other miscellaneous services.
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||||||||||
2023
|
2022
|
Increase
(Decrease)
|
2023
|
2022
|
Increase
(Decrease)
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Noninterest expense:
|
||||||||||||||||||||||||
Salaries and employee benefits
|
$
|
23,437
|
$
|
21,990
|
$
|
1,447
|
$
|
42,691
|
$
|
44,693
|
$
|
(2,002
|
)
|
|||||||||||
Occupancy expense, net
|
4,303
|
4,033
|
270
|
8,135
|
7,770
|
365
|
||||||||||||||||||
Professional services
|
1,716
|
2,647
|
(931
|
)
|
3,364
|
5,272
|
(1,908
|
)
|
||||||||||||||||
Marketing and development
|
784
|
758
|
26
|
1,720
|
1,478
|
242
|
||||||||||||||||||
IT and data services
|
888
|
941
|
(53
|
)
|
1,752
|
1,994
|
(242
|
)
|
||||||||||||||||
Bankcard expenses
|
1,316
|
1,328
|
(12
|
)
|
2,668
|
2,651
|
17
|
|||||||||||||||||
Appraisal expenses
|
301
|
508
|
(207
|
)
|
579
|
1,073
|
(494
|
)
|
||||||||||||||||
Loss on sale of securities
|
3,409
|
—
|
3,409
|
3,409
|
—
|
3,409
|
||||||||||||||||||
Other expenses(1)
|
4,345
|
3,851
|
494
|
8,542
|
9,049
|
(507
|
)
|
|||||||||||||||||
Total noninterest expense
|
$
|
40,499
|
$
|
36,056
|
$
|
4,443
|
$
|
72,860
|
$
|
73,980
|
$
|
(1,120
|
)
|
(1) |
Other expenses include items such as banking regulatory assessments, telephone expenses, postage, courier fees, directors’ fees, supplies, and insurance.
|
Due in
One Year or
Less
|
Due after One Year
Through Five Years
|
Due after Five
Years
Through
Fifteen Years
|
Due after
Fifteen Years
|
Total
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Commercial real estate
|
$
|
80,751
|
$
|
551,463
|
$
|
289,930
|
$
|
84,765
|
$
|
1,006,909
|
||||||||||
Commercial - specialized
|
100,047
|
136,385
|
65,755
|
53,065
|
355,252
|
|||||||||||||||
Commercial - general
|
101,110
|
170,772
|
151,505
|
127,709
|
551,096
|
|||||||||||||||
Consumer:
|
||||||||||||||||||||
1-4 family residential
|
38,427
|
100,289
|
74,985
|
308,771
|
522,472
|
|||||||||||||||
Auto loans
|
2,975
|
185,380
|
129,771
|
—
|
318,126
|
|||||||||||||||
Other consumer
|
7,940
|
48,656
|
23,199
|
—
|
79,795
|
|||||||||||||||
Construction
|
133,744
|
3,178
|
477
|
8,014
|
145,413
|
|||||||||||||||
Total loans
|
$
|
464,994
|
$
|
1,196,123
|
$
|
735,622
|
$
|
582,324
|
$
|
2,979,063
|
Fixed
Rate
|
Adjustable
Rate
|
|||||||
(Dollars in thousands)
|
||||||||
Commercial real estate
|
$
|
436,571
|
$
|
489,587
|
||||
Commercial - specialized
|
82,419
|
172,786
|
||||||
Commercial - general
|
168,989
|
280,997
|
||||||
Consumer:
|
||||||||
1-4 family residential
|
293,950
|
190,095
|
||||||
Auto loans
|
315,151
|
—
|
||||||
Other consumer
|
71,855
|
—
|
||||||
Construction
|
1,141
|
10,528
|
||||||
Total loans
|
$
|
1,370,076
|
$
|
1,143,993
|
June 30,
2023
|
December 31,
2022
|
|||||||
(Dollars in thousands)
|
||||||||
Commitments to grant loans and unfunded commitments under lines of credit
|
$
|
637,400
|
$
|
682,296
|
||||
Standby letters of credit
|
12,779
|
13,864
|
||||||
Total
|
$
|
650,179
|
$
|
696,160
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Average loans outstanding during the periods
|
||||||||||||||||
Commercial real estate
|
$
|
942,296
|
$
|
797,490
|
$
|
929,207
|
$
|
774,253
|
||||||||
Commercial – specialized
|
342,519
|
345,980
|
330,903
|
350,050
|
||||||||||||
Commercial – general
|
537,015
|
477,286
|
514,729
|
474,892
|
||||||||||||
Consumer:
|
||||||||||||||||
1-4 family residential
|
506,630
|
384,846
|
491,399
|
386,417
|
||||||||||||
Auto loans
|
319,875
|
279,113
|
320,978
|
261,605
|
||||||||||||
Other consumer
|
80,760
|
85,421
|
80,474
|
82,233
|
||||||||||||
Construction
|
143,832
|
146,713
|
146,074
|
145,820
|
||||||||||||
Loans held for sale
|
21,160
|
32,415
|
22,718
|
40,664
|
||||||||||||
Total average loans outstanding during the periods
|
$
|
2,894,087
|
$
|
2,549,264
|
$
|
2,836,482
|
$
|
2,515,934
|
||||||||
Net charge-offs (recoveries) during the periods
|
||||||||||||||||
Commercial real estate
|
$
|
—
|
$
|
(393
|
)
|
$
|
—
|
$
|
(418
|
)
|
||||||
Commercial – specialized
|
(18
|
)
|
(9
|
)
|
(80
|
)
|
(5
|
)
|
||||||||
Commercial – general
|
108
|
(127
|
)
|
246
|
58
|
|||||||||||
Consumer:
|
||||||||||||||||
1-4 family residential
|
(2
|
)
|
(1
|
)
|
(3
|
)
|
38
|
|||||||||
Auto loans
|
146
|
37
|
324
|
77
|
||||||||||||
Other consumer
|
149
|
191
|
254
|
312
|
||||||||||||
Construction
|
—
|
166
|
272
|
166
|
||||||||||||
Total net charge-offs (recoveries) during the periods
|
$
|
383
|
$
|
(136
|
)
|
$
|
1,013
|
$
|
228
|
|||||||
Ratio of net charge-offs (recoveries) to average loans during the periods
|
||||||||||||||||
Commercial real estate
|
0.00
|
%
|
(0.05
|
)%
|
0.00
|
%
|
(0.05
|
)%
|
||||||||
Commercial – specialized
|
(0.01
|
)%
|
0.00
|
%
|
(0.02
|
)%
|
0.00
|
%
|
||||||||
Commercial – general
|
0.02
|
%
|
(0.03
|
)%
|
0.05
|
%
|
0.01
|
%
|
||||||||
Consumer:
|
||||||||||||||||
1-4 family residential
|
0.00
|
%
|
0.00
|
%
|
0.00
|
%
|
0.01
|
%
|
||||||||
Auto loans
|
0.05
|
%
|
0.01
|
%
|
0.10
|
%
|
0.03
|
%
|
||||||||
Other consumer
|
0.18
|
%
|
0.22
|
%
|
0.32
|
%
|
0.38
|
%
|
||||||||
Construction
|
0.00
|
%
|
0.11
|
%
|
0.19
|
%
|
0.11
|
%
|
||||||||
Total ratio of net charge-offs (recoveries) to average loans during the periods
|
0.01
|
%
|
(0.01
|
)%
|
0.04
|
%
|
0.01
|
%
|
June 30,
2023
|
December 31,
2022
|
|||||||
(Dollars in thousands)
|
||||||||
Total loans held for investment outstanding
|
$
|
2,979,063
|
$
|
2,748,081
|
||||
Nonaccrual loans
|
$
|
16,561
|
$
|
5,802
|
||||
Allowance for credit losses
|
$
|
43,137
|
$
|
39,288
|
||||
Ratio of allowance to total loans held for investment
|
1.45
|
%
|
1.43
|
%
|
||||
Ratio of allowance to nonaccrual loans
|
260.47
|
%
|
677.15
|
%
|
||||
Ratio of nonaccrual loans to total loans held for investment
|
0.56
|
%
|
0.21
|
%
|
June 30, 2023
|
December 31, 2022
|
|||||||||||||||
Amount
|
% of Total
|
Amount
|
% of Total
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Commercial real estate
|
$
|
14,501
|
33.6
|
%
|
$
|
13,029
|
33.1
|
%
|
||||||||
Commercial – specialized
|
4,154
|
9.7
|
3,425
|
8.7
|
||||||||||||
Commercial – general
|
7,637
|
17.7
|
9,215
|
23.5
|
||||||||||||
Consumer:
|
||||||||||||||||
1-4 family residential
|
8,851
|
20.5
|
6,194
|
15.8
|
||||||||||||
Auto loans
|
3,900
|
9.0
|
3,926
|
10.0
|
||||||||||||
Other consumer
|
1,107
|
2.6
|
1,376
|
3.5
|
||||||||||||
Construction
|
2,987
|
6.9
|
2,123
|
5.4
|
||||||||||||
Total allowance for credit losses
|
$
|
43,137
|
100.0
|
%
|
$
|
39,288
|
100.0
|
%
|
As of June 30, 2023
|
||||||||||||||||||||||||||||||||
Due in One
Year or Less
|
Due after One Year
Through Five Years
|
Due after Five Years
Through Ten Years
|
Due after
Ten Years
|
|||||||||||||||||||||||||||||
Amortized
Cost
|
Weighted
Average
Yield
|
Amortized
Cost
|
Weighted
Average
Yield
|
Amortized
Cost
|
Weighted
Average
Yield
|
Amortized
Cost
|
Weighted
Average
Yield
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||
Available-for-sale
|
||||||||||||||||||||||||||||||||
State and municipal
|
$
|
2,628
|
3.49
|
%
|
$
|
5,387
|
1.93
|
%
|
$
|
5,405
|
2.10
|
%
|
$
|
193,415
|
2.29
|
%
|
||||||||||||||||
Residential mortgage-backed securities
|
34
|
1.29
|
%
|
2,311
|
2.01
|
2,368
|
2.43
|
361,494
|
2.20
|
|||||||||||||||||||||||
Commercial mortgage-backed securities
|
—
|
—
|
—
|
—
|
48,533
|
2.22
|
—
|
—
|
||||||||||||||||||||||||
Commercial collateralized mortgage obligations
|
—
|
—
|
—
|
—
|
72,823
|
5.71
|
—
|
—
|
||||||||||||||||||||||||
Asset-backed and other amortizing securities
|
—
|
—
|
—
|
—
|
1,539
|
2.94
|
17,990
|
2.81
|
||||||||||||||||||||||||
Other securities
|
—
|
—
|
—
|
—
|
12,000
|
4.47
|
—
|
—
|
||||||||||||||||||||||||
Total available-for-sale
|
$
|
2,662
|
3.47
|
%
|
$
|
7,698
|
1.95
|
%
|
$
|
142,668
|
4.20
|
%
|
$
|
572,899
|
2.25
|
%
|
As of December 31, 2022
|
||||||||||||||||||||||||||||||||
Due in One
Year or Less
|
Due after One Year
Through Five Years
|
Due after Five Years
Through Ten Years
|
Due after
Ten Years
|
|||||||||||||||||||||||||||||
Amortized
Cost
|
Weighted
Average
Yield
|
Amortized
Cost
|
Weighted
Average
Yield
|
Amortized
Cost
|
Weighted
Average
Yield
|
Amortized
Cost
|
Weighted
Average
Yield
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||
Available-for-sale
|
||||||||||||||||||||||||||||||||
State and municipal
|
$
|
1,898
|
3.43
|
%
|
$
|
8,663
|
2.17
|
%
|
$
|
7,508
|
2.22
|
%
|
$
|
241,360
|
2.24
|
%
|
||||||||||||||||
Residential mortgage-backed securities
|
3
|
1.90
|
%
|
3,037
|
1.88
|
3,993
|
2.37
|
379,750
|
2.22
|
|||||||||||||||||||||||
Commercial mortgage-backed securities
|
—
|
—
|
—
|
—
|
49,161
|
2.21
|
—
|
—
|
||||||||||||||||||||||||
Commercial collateralized mortgage obligations
|
—
|
—
|
—
|
—
|
76,189
|
4.89
|
—
|
—
|
||||||||||||||||||||||||
Asset-backed and other amortizing securities
|
—
|
—
|
—
|
—
|
1,689
|
2.93
|
19,218
|
2.81
|
||||||||||||||||||||||||
Other securities
|
—
|
—
|
—
|
—
|
12,000
|
4.47
|
—
|
—
|
||||||||||||||||||||||||
Total available-for-sale
|
$
|
1,901
|
3.43
|
%
|
$
|
11,700
|
2.09
|
%
|
$
|
150,540
|
3.76
|
%
|
$
|
640,328
|
2.24
|
%
|
June 30, 2023
|
December 31, 2022
|
|||||||||||||||
Amount
|
% of Total
|
Amount
|
% of Total
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Noninterest-bearing deposits
|
$
|
1,100,767
|
30.8
|
%
|
$
|
1,150,488
|
33.8
|
%
|
||||||||
NOW and other transaction accounts
|
400,779
|
11.2
|
350,910
|
10.3
|
||||||||||||
Money market and other savings
|
1,751,029
|
49.0
|
1,618,833
|
47.5
|
||||||||||||
Time deposits
|
321,947
|
9.0
|
286,199
|
8.4
|
||||||||||||
Total deposits
|
$
|
3,574,522
|
100.0
|
%
|
$
|
3,406,430
|
100.0
|
%
|
Three Months Ended June 30,
|
||||||||||||||||
2023
|
2022
|
|||||||||||||||
Average
Balance
|
Weighted
Average Rate
|
Average
Balance
|
Weighted
Average Rate
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Noninterest-bearing deposits
|
$
|
1,075,514
|
0.00
|
%
|
$
|
1,171,454
|
0.00
|
%
|
||||||||
Interest-bearing deposits:
|
||||||||||||||||
NOW and interest-bearing demand accounts
|
307,171
|
2.24
|
%
|
352,350
|
0.25
|
%
|
||||||||||
Savings accounts
|
147,533
|
0.59
|
%
|
147,535
|
0.11
|
%
|
||||||||||
Money market accounts
|
1,604,478
|
2.64
|
%
|
1,403,567
|
0.31
|
%
|
||||||||||
Time deposits
|
299,358
|
2.61
|
%
|
334,819
|
1.15
|
%
|
||||||||||
Total interest-bearing deposits
|
2,358,540
|
2.45
|
%
|
2,238,271
|
0.39
|
%
|
||||||||||
Total deposits
|
$
|
3,434,054
|
1.69
|
%
|
$
|
3,409,725
|
0.27
|
%
|
Six Months Ended June 30,
|
||||||||||||||||
2023
|
2022
|
|||||||||||||||
Average
Balance
|
Weighted
Average Rate
|
Average
Balance
|
Weighted
Average Rate
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Noninterest-bearing deposits
|
$
|
1,092,429
|
0.00
|
%
|
$
|
1,137,771
|
0.00
|
%
|
||||||||
Interest-bearing deposits:
|
||||||||||||||||
NOW and interest-bearing demand accounts
|
321,199
|
1.95
|
%
|
363,796
|
0.17
|
%
|
||||||||||
Savings accounts
|
149,743
|
0.83
|
%
|
148,276
|
0.10
|
%
|
||||||||||
Money market accounts
|
1,552,927
|
2.44
|
%
|
1,408,536
|
0.27
|
%
|
||||||||||
Time deposits
|
291,677
|
2.31
|
%
|
336,962
|
1.16
|
%
|
||||||||||
Total interest-bearing deposits
|
2,315,546
|
2.25
|
%
|
2,257,570
|
0.38
|
%
|
||||||||||
Total deposits
|
$
|
3,407,975
|
1.53
|
%
|
$
|
3,395,341
|
0.25
|
%
|
(Dollars in thousands)
|
Three
Months
|
Three to
Six Months
|
Six to
12 Months
|
After
12 Months
|
Total
|
|||||||||||||||
$
|
3,610
|
$
|
8,927
|
$
|
36,665
|
$
|
19,974
|
$
|
69,176
|
Name of Trust
|
Issue
Date
|
Amount of
Trust Preferred
Securities
|
Amount of
Debentures
|
Stated
Maturity Date of
Trust Preferred
Securities and
Debentures(1)
|
Interest Rate of
Trust Preferred
Securities and
Debentures(2)(3)
|
|||||||||
(Dollars in thousands)
|
||||||||||||||
South Plains Financial Capital Trust III
|
2004
|
$
|
10,000
|
$
|
10,310
|
2034
|
3-mo. LIBOR + 265 bps; 7.47%
|
|||||||
South Plains Financial Capital Trust IV
|
2005
|
20,000
|
20,619
|
2035
|
3-mo. LIBOR + 139 bps; 6.26%
|
|||||||||
South Plains Financial Capital Trust V
|
2007
|
15,000
|
15,464
|
2037
|
3-mo. LIBOR + 150 bps; 6.37%
|
|||||||||
Total
|
$
|
45,000
|
$
|
46,393
|
(1) |
May be redeemed at the Company’s option.
|
(2) |
Interest payable quarterly with principal due at maturity.
|
(3) |
Rate as of last reset date, prior to June 30, 2023.
|
June 30, 2023
|
December 31, 2022
|
|||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
South Plains Financial, Inc.:
|
||||||||||||||||
Total capital (to risk-weighted assets)
|
$
|
597,335
|
16.75
|
%
|
$
|
559,094
|
16.58
|
%
|
||||||||
Tier 1 capital (to risk-weighted assets)
|
476,708
|
13.37
|
443,265
|
13.15
|
||||||||||||
CET 1 capital (to risk-weighted assets)
|
431,708
|
12.11
|
398,265
|
11.81
|
||||||||||||
Tier 1 capital (to average assets)
|
476,706
|
11.67
|
443,265
|
11.03
|
||||||||||||
City Bank:
|
||||||||||||||||
Total capital (to risk-weighted assets)
|
$
|
492,582
|
13.73
|
%
|
$
|
454,427
|
13.48
|
%
|
||||||||
Tier 1 capital (to risk-weighted assets)
|
447,754
|
12.48
|
414,559
|
12.30
|
||||||||||||
CET 1 capital (to risk-weighted assets)
|
447,754
|
12.48
|
414,559
|
12.30
|
||||||||||||
Tier 1 capital (to average assets)
|
447,754
|
10.97
|
414,559
|
10.32
|
June 30,
2023
|
December 31,
2022
|
||||||||
Change in Interest Rates (Basis Points)
|
Percent Change in
Net Interest Income
|
Percent Change in
Net Interest Income
|
|||||||
+300
|
(4.23
|
)%
|
(1.50
|
)%
|
|||||
+200
|
(2.76
|
)%
|
(0.96
|
)%
|
|||||
+100
|
(1.31
|
)%
|
(0.61
|
)%
|
|||||
-100
|
1.41
|
%
|
(1.50
|
)%
|
|||||
-200
|
2.83
|
%
|
(2.81
|
)%
|
June 30,
2023
|
December 31, 2022
|
|||||||
(Dollars in thousands)
|
||||||||
Total stockholders’ equity
|
$
|
392,029
|
$
|
357,014
|
||||
Less: Goodwill and other intangibles
|
(22,149
|
)
|
(23,857
|
)
|
||||
Tangible common equity
|
$
|
369,880
|
$
|
333,157
|
||||
Total assets
|
$
|
4,150,129
|
$
|
3,944,063
|
||||
Less: Goodwill and other intangibles
|
(22,149
|
)
|
(23,857
|
)
|
||||
Tangible assets
|
$
|
4,127,980
|
$
|
3,920,206
|
||||
Shares outstanding
|
16,952,072
|
17,027,197
|
||||||
Total stockholders’ equity to total assets
|
9.45
|
%
|
9.05
|
%
|
||||
Tangible common equity to tangible assets
|
8.96
|
%
|
8.50
|
%
|
||||
Book value per share
|
$
|
23.13
|
$
|
20.97
|
||||
Tangible book value per share
|
$
|
21.82
|
$
|
19.57
|
Item 3. |
Quantitative and Qualitative Disclosure about Market Risk
|
Item 4. |
Controls and Procedures
|
Item 1. |
Legal Proceedings
|
Item 1A. |
Risk Factors
|
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds
|
Total Shares
Repurchased
|
Average Price
Paid Per Share
|
Total Dollar Amount
Purchased Pursuant to
Publicly-Announced Plan
|
Maximum Dollar Amount
Remaining Available for
Repurchase Pursuant to
Publicly-Announced Plan
|
|||||||||||||
May 2023
|
41,971
|
$
|
21.37
|
$
|
896,788
|
$
|
14,103,212
|
|||||||||
June 2023
|
70,983
|
23.26
|
1,651,332
|
12,451,880
|
||||||||||||
Total
|
112,954
|
Item 3. |
Defaults upon Senior Securities
|
Item 4. |
Mine Safety Disclosures
|
Item 5. |
Other Information
|
Item 6. |
Exhibits
|
Exhibit
Number
|
Description
|
|
Securities Purchase Agreement, dated April 1, 2023, by and among South Plains Financial, Inc., City Bank and Alliant Insurance Services, Inc. (incorporated by reference to Exhibit 2.1 to
the Company’s Current Report on Form 8-K filed with the SEC on April 4, 2023) (File No. 001-38895).
|
||
Amended and Restated Certificate of Formation of South Plains Financial, Inc. (incorporated by reference to Exhibit 3.1 to the Company’s Form S-1 filed with the SEC on April 12, 2019)
(File No. 333-230851).
|
||
Second Amended and Restated Bylaws of South Plains Financial, Inc. (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the SEC on November 1,
2021) (File No. 001-38895).
|
||
Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
||
Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
||
Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
||
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
||
101*
|
The following material from South Plains Financial, Inc.’s Form 10-Q for the quarter ended June 30, 2023, formatted in XBRL (eXtensible Business Reporting Language), filed herewith: (i)
Consolidated Balance Sheets, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Statements of Changes in Stockholders’ Equity, (iv) Consolidated Statements of Cash Flows, and (v) Notes to Unaudited Consolidated
Financial Statements.
|
* |
Filed with this Form 10-Q
|
** |
Furnished with this Form 10-Q
|
South Plains Financial, Inc.
|
|||
Date:
|
August 7, 2023
|
By:
|
/s/ Curtis C. Griffith
|
Curtis C. Griffith
|
|||
Chairman and Chief Executive Officer
|
|||
Date:
|
August 7, 2023
|
By:
|
/s/ Steven B. Crockett
|
Steven B. Crockett
|
|||
Chief Financial Officer and Treasurer
|
1. |
I have reviewed this Quarterly Report on Form 10-Q of South Plains Financial, Inc. (the “registrant”) for the quarter ended June 30, 2023 (this “report”);
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made,
in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results
of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information
relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls
and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s
fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and
the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the
registrant’s ability to record, process, summarize and report financial information; and
|
(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: August 7, 2023
|
By:
|
/s/ Curtis C. Griffith
|
Curtis C. Griffith
|
||
Chairman and Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of South Plains Financial, Inc. (the “registrant”) for the quarter ended June 30, 2023 (this
“report”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to
the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over
financial reporting.
|
Date: August 7, 2023
|
By:
|
/s/ Steven B. Crockett
|
Steven B. Crockett
|
||
Chief Financial Officer
|
(1) |
The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: August 7, 2023
|
By:
|
/s/ Curtis C. Griffith
|
Curtis C. Griffith
|
||
Chairman and Chief Executive Officer
|
(1) |
The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: August 7, 2023
|
By:
|
/s/ Steven B. Crockett
|
Steven B. Crockett
|
||
Chief Financial Officer
|
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
ASSETS | ||
Loans held for sale, fair value | $ 15,516 | $ 10,038 |
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 16,952,072 | 17,027,197 |
Common stock, shares outstanding (in shares) | 16,952,072 | 17,027,197 |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY [Abstract] | ||||
Cash dividends, common (in dollars per share) | $ 0.13 | $ 0.11 | $ 0.26 | $ 0.22 |
Exercise of employee stock options, shares for cashless exercise (in shares) | 10,567 | 24,140 | 4,824 | |
Exercise of employee stock options, shares for taxes (in shares) | 272 | 13,892 | 7,129 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Operations – South Plains Financial, Inc.
(“SPFI”) is a Texas corporation and registered bank holding company that conducts its principal activities through its subsidiaries from offices located throughout Texas and Eastern New Mexico. Principal activities include commercial and retail
banking, along with investment, trust, and mortgage services. The following were subsidiaries of SPFI as of June 30, 2023:
On April 1, 2023, SPFI entered into a Securities Purchase Agreement (“Agreement”) with Alliant Insurance Services, Inc. (“Alliant”), providing for the sale of Windmark
Insurance Agency, Inc. (“Windmark”) through a sale of all of the outstanding shares of capital stock of Windmark to Alliant. The transaction was consummated on April 1, 2023. Pursuant to the terms and subject to the conditions of the Agreement,
SPFI received an aggregate purchase price of $35.5 million in exchange for Windmark’s common shares, representing a pre-tax gain of $33.5 million. The purchase price may be increased by the net amount of Windmark working capital as provided in the Agreement. This transaction did not
meet the criteria for discontinued operations reporting.
Basis of Presentation and Consolidation –
The consolidated financial statements in this Quarterly Report on Form 10-Q for the three and six months ended June 30, 2023 (this “Form 10-Q”) include the accounts of
SPFI and its wholly-owned consolidated subsidiaries (collectively referred to as the “Company”) identified above. All significant intercompany balances and transactions have been eliminated in consolidation.
The interim consolidated financial statements in this Form 10-Q have not been audited by an independent registered public accounting firm, but in the opinion of
management, reflect all adjustments necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows. All such adjustments were of a normal and recurring nature. The consolidated financial statements have
been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”).
Accordingly, the financial statements do not include all of the information and notes required by GAAP for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements, and notes thereto
in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period.
Use of Estimates – 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 and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ from those estimates. Determination of the adequacy of the allowance for credit losses (“ACL”) is a
material estimate that is particularly susceptible to significant change in the near term; the assumptions used in stock-based compensation, derivatives, mortgage servicing rights, and fair values of financial instruments can also involve significant
management estimates.
Accounting Changes – Updates to the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) are prescribed in Accounting Standards Updates (“ASUs”), which are not authoritative
until incorporated into the ASC.
ASU 2016-13 Financial Instruments - Credit Losses (Topic 326). The FASB issued guidance to replace the incurred loss model with an expected loss model, which is
referred to as the current expected credit loss (“CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables and held to maturity debt securities. The
CECL model also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby
letters of credit, financial guarantees, and other similar instruments) and net investments in sales type and direct financing leases recognized by a lessor in accordance with Topic 842 on leases. In addition, Topic 326 made changes to the
accounting for securities available for sale. One such change is to require credit losses to be presented as an allowance rather than as a write-down on securities available for sale management does not intend to sell or believes that it is more
likely than not they will be required to sell. The Company adopted the CECL model effective January 1, 2023 using the modified retrospective approach, as a result, the Company recognized a one-time, after tax cumulative effect debit adjustment
of $997 thousand to retained earnings, increased the ACL for loans by approximately $100 thousand and increased the ACL for off-balance sheet credit exposures by approximately $1.2 million. Results for reporting periods beginning after January 1, 2023 are presented under Topic 326, while prior period amounts continue to be reported in accordance with previously applicable GAAP.
The Company made the following policy elections related to the adoption of the
CECL model. First, accrued interest will be written off against interest income when financial assets are placed into nonaccrual status. Therefore, accrued interest will be excluded from the amortized cost basis for purposes of calculating the
ACL. Accrued interest receivable is presented in a separate line item in the Consolidated Balance Sheets. Second, the fair value of collateral practical expedient has been elected on certain loans in determining the ACL, for which the repayment
is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty.
The impact on the ACL resulting from the adoption of the CECL model is shown below.
ASU 2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This ASU eliminates guidance for troubled debt restructurings by creditors and enhances disclosure requirements for certain loan modifications by creditors for borrowers experiencing financial distress. This ASU defines types of modifications as principal forgiveness, interest rate reduction, other than insignificant payment delays, or a term extension. In addition, the ASU requires disclosure of current-period gross charge-offs, by year of origination, in the vintage disclosure. The Company adopted the provisions of ASU 2022-02 as of January 1, 2023 on a prospective basis. The adoption of this amendment did not have a material impact on the consolidated financial statements. In
connection with the adoption of the CECL model, the Company revised certain accounting policies and implemented certain accounting policy elections.
Securities – Investment securities may be classified into trading, held to maturity (“HTM”) or available for sale
(“AFS”) portfolios. Securities that are held principally for resale in the near term are classified as trading. Securities that management has the ability and positive intent to hold to maturity are classified as HTM and recorded at amortized
cost. Securities not classified as trading or HTM are AFS and are carried at fair value with unrealized gains and losses reported as a component of other comprehensive income (loss), net of tax. Management uses these assets as part of its
asset/liability management strategy; they may be sold in response to changes in liquidity needs, interest rates, resultant prepayment risk changes, and other factors. Management determines the appropriate classification of securities at the
time of purchase. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on sales are recorded on the trade date, are derived from the amortized cost of
the security sold and are determined using the specific identification method. A security is placed on nonaccrual status if principal or interest has been in default for a period of 90 days or more, or if full payment of principal and interest is not expected. The Company has made a policy election to exclude accrued interest receivable from the amortized cost
basis of AFS securities and report the accrued interest in accrued interest receivable in the Consolidated Balance Sheets. Interest accrued but not received for a security placed on nonaccrual status is reversed against interest income.
ACL (AFS Securities) – For AFS securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to
sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS securities that
do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than
amortized cost, any changes to the rating of the security by rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash
flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is
recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income (loss). Changes in the ACL are
recorded as provision for credit losses. Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met.
Accrued interest is excluded from the estimate of credit losses.
Loans – Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their
amortized cost. Amortized cost is the outstanding unpaid principal balances, net of any unearned income, charge-offs, unamortized deferred fees and costs on originated loans, and unamortized premiums or discounts on purchased loans. The Company
has made a policy election to exclude accrued interest from the amortized cost basis of loans and report accrued interest separately from the related loan balance in accrued interest receivable on the Consolidated Balance Sheets. Accrued interest
receivable is excluded from the estimate of credit losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related
loan yield using the straight-line method, which is not materially different from the effective interest method required by GAAP.
Loans are placed on nonaccrual status when, in management’s
opinion, collection of interest is unlikely, which typically occurs when principal or interest payments are more than ninety days past
due. When interest accrual is discontinued, all unpaid accrued interest is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are
returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.
ACL (Loans) – The ACL is a valuation account established by management as an estimate to cover expected credit losses through a provision for credit losses charged to earnings. Credit losses on loans are charged
against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Expected losses are calculated using comparable and quantifiable information from
both internal and external sources about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Expected credit losses are estimated over
the contractual term of the loans and adjusted for expected prepayments.
The ACL is evaluated on a quarterly basis by management. The Company applied a dual credit risk rating
(“DCRR”) methodology that estimates each loan’s probability of default and loss given default to calculate the expected credit loss to non-analyzed loans at January 1 and June 30, 2023. The DCRR process quantifies the expected credit loss at the
loan level for the entire loan portfolio. Loan grades are assigned by a customized scorecard that risk rates each loan based on multiple probability of default and loss given default elements to measure the credit risk of the loan portfolio.
The ACL estimate incorporates the Company’s DCRR loan level risk rating methodology and the expected default rate frequency term structure to derive loan level life of loan estimates of credit losses for every loan in the portfolio. The
estimated credit loss for each loan is adjusted based on its one-year through the cycle estimate of expected credit loss to a life of
loan measurement that reflects current conditions and reasonable and supportable forecasts. The life of loan expected loss is determined using the contractual weighted average life of the loan adjusted for prepayments. Prepayment speeds are
determined by grouping the loans into pools based on segments and risk rating. After the life of loan expected losses are determined, they are adjusted to reflect the Company’s reasonable and supportable economic forecast over a selected range of to two years. The Company has developed regression models
to project net charge-off rates based on macroeconomic variables (“MEVs”), typically a one-year forecast period is used. MEV’s considered in the analysis
consist of data gathered from the St. Louis Federal Reserve Research Database (“FRED”), such as, federal funds rate, 10-year treasury rates, 30-year mortgage rates, crude oil prices, consumer price index, housing price index, unemployment rates,
housing starts, gross domestic product, and disposable personal income. These regression models are applied to the Company’s economic forecast to determine the corresponding net charge-off rates. The projected net charge-off rates for the given economic scenario are used to adjust the
life of loan expected losses. Qualitative adjustments are also made to ACL results for additional risk factors that are relevant in assessing the expected credit losses within our loan segments. These qualitative factor (“Q-Factor”) adjustments
may increase or decrease management’s estimate of the ACL by a calculated percentage based upon the estimated level of risk within a particular segment. Q-Factor risk decisions consider concentrations of the loan portfolio, expected changes to
the economic forecasts, large relationships, and other factors related to credit administration, such as borrower’s risk rating and the potential effect of delayed credit score migrations. Management quantifiably identifies segment percentage
Q-Factor adjustments using a scorecard risk rating system scaled to historical loss experience within a segment and management’s perceived risk for that particular segment.
While management uses available information to recognize credit losses on loans,
further reductions in the carrying amounts of loans may be necessary based on various factors. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated credit losses on loans. Such agencies
may require the bank subsidiary to recognize additional credit losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated credit losses
on loans may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated.
Loans that exhibit
characteristics different from their pool characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the collective ACL evaluation. When management determines that foreclosure is probable, or if certain
of these loans are considered to be collateral dependent with the borrower experiencing financial difficulty, the Company elects the fair value of collateral practical expedient, whereby the allowance is calculated as the amount by which the
amortized cost exceeds the fair value of collateral, less costs to sell.
ACL (Off-Balance Sheet Credit Exposures) – The Company estimates expected credit losses over the contractual period in
which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL for off-balance sheet credit exposures is adjusted through provision for
credit losses. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Utilization rates are determined based on a two-year rolling average of historical usage. Expected loss rates for all pass rated loans are used to determine the ACL for off-balance sheet credit
exposures. The ACL for off-balance sheet credit exposures is included in accrued expenses and other liabilities on the Consolidated Balance Sheets.
Acquired Loans – Loans that the Company acquires in connection with business combinations are recorded at fair value with no carryover of the acquired entity’s related ACL. The fair value of the acquired loans involves estimating the
amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest, adjusted for estimated prepayments and credit losses. In accordance with Topic 326, the
fair value adjustment is recorded as premium or discount to the unpaid principal balance of each acquired loan. In addition, the Company also records an ACL on each acquired loan.
Any acquired loans the Company determines have evidence of a more than insignificant deterioration in credit quality since origination, are considered to be purchase
credit deteriorated (“PCD”) loans. The Company evaluates acquired loans for deterioration in credit quality based on any of, but not limited to, the following: (i) non-accrual status; (ii) risk rating, (iii) watchlist credits; and (iv) delinquency
status. An ACL is determined using the same methodology as other individually evaluated loans. The sum of the PCD loan’s purchase price and ACL becomes its initial amortized cost basis. The difference between the initial amortized cost basis and
the par value of the loan is a non-credit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the ACL are recorded through provision for credit losses.
Goodwill and Other Intangible Assets – Goodwill resulting from business
combinations is generally determined as the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill is not amortized, but is tested for
impairment on October 31 of each year or more frequently if events and circumstances exist that indicate that an impairment test should be performed. There was no goodwill impairment recorded for the six months ended June 30, 2023
and the year ended December 31, 2022.
Core deposit intangible (“CDI”) is a measure of the value of checking and savings
deposit relationships acquired in a business combination. The fair value of the CDI stemming from any given business combination is based on the present value of the expected cost savings attributable to the core deposit funding relative to an
alternative source of funding. CDI is amortized over the estimated useful lives of the existing deposit relationships acquired, but does not exceed 10
years. Substantially all CDI is amortized using the sum of the years’ digits method.
Earnings per Share – Basic earnings per share is net income divided by the weighted average number of
common shares outstanding during the period. Diluted earnings per share includes the dilutive effect of additional potential shares issuable under stock options. Earnings and dividends per share are restated for all stock splits and stock dividends
through the date of issuance of the consolidated financial statements.
Segment Information – The Company previously identified two
operating segments: banking and insurance. The accounting policies for each of the segments were the same as those described in the summary of significant accounting policies. Effective January 1, 2023, operations and financial performance of the
insurance segment were being performed and evaluated on a Company-wide basis based on not being significant to the operating results of the Company. Furthermore, the insurance segment was sold on April 1, 2023. As a result, segment reporting
disclosures have been removed.
Subsequent Events – The
Company has evaluated subsequent events and transactions from June 30,2023 through the date this Form 10-Q was filed with the SEC for potential recognition or disclosure as required by GAAP.
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SECURITIES |
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SECURITIES [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SECURITIES |
2. SECURITIES
The amortized cost, related gross unrealized gains and losses, allowance for credit losses, and estimated fair value of securities available for sale at the dates indicated follows (dollars in
thousands):
The amortized cost and estimated fair value of securities at June 30, 2023 are presented below by contractual maturity (dollars in thousands). Expected maturities may
differ from contractual maturities because issuers may have the right to call or prepay obligations. Other securities are shown separately since they are not due at a single maturity date.
At both June 30, 2023 and December 31, 2022, the Company had no
holdings of securities of any one issuer, other than the U.S. government, its agencies, or its sponsored enterprises, in an amount greater than 10% of stockholders’ equity.
Securities with a carrying value of approximately $424.1
million and $464.1 million at June 30, 2023 and December 31, 2022, respectively, were pledged to collateralize public deposits and for
other purposes as required or permitted by law.
The following table segregates securities with unrealized losses at the periods indicated, by the duration they have been in a loss position for which an allowance for
credit losses has not been recorded (dollars in thousands):
The Company had 147 securities with an unrealized loss
at June 30, 2023, generally due to increases in market rates. Management evaluates AFS securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or non-credit related factors. Consideration is
given to the extent to which the fair value is less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the security for a period of time sufficient to
allow for the anticipated recovery in fair value. Management does not have the intent to sell any of the securities in an unrealized loss position as there are adequate liquidity sources to meet expected and unexpected funding needs. The fair value
of these securities is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of June 30, 2023, management believes the unrealized loss positions
detailed in the previous table are due to non-credit related factors, including changes in interest rates and other market conditions, and therefore no ACL or losses have been recognized or realized in the consolidated financial statements.
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LOANS HELD FOR INVESTMENT [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS HELD FOR INVESTMENT |
3. LOANS HELD FOR INVESTMENT
Loans held for investment are summarized by category as of the periods presented below (dollars in thousands):
The Company has certain lending policies, underwriting standards, and procedures in place that are designed to maximize loan income with an acceptable level of risk. Management reviews and approves these
policies, underwriting standards, and procedures on a regular basis and makes changes as appropriate. Management receives frequent reports related to loan originations, quality, concentrations, delinquencies, non-performing, and potential problem
loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions, both by type of loan and geography.
Commercial Real Estate – Underwriting standards have been designed to determine whether the borrower possesses sound business ethics and practices, evaluate
current and projected cash flows to determine the ability of the borrower to repay their obligations, as agreed and ensure appropriate collateral is obtained to secure the loan. Commercial real estate loans are underwritten primarily based on
projected cash flows for income-producing properties and collateral values for non-income-producing properties. The repayment of these loans is generally dependent on the successful operation of the property securing the loans or the sale or
refinancing of the property. Real estate loans may be adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s real estate portfolio are diversified by type and geographic location.
This diversity helps reduce the exposure to adverse economic events that affect any single market or industry.
Commercial – General and Specialized – Commercial loans are also subject
to underwriting standards and processes similar to commercial real estate loans. These loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably. These loans are primarily made based on the identified cash
flows of the borrower and, secondarily, on the underlying collateral provided by the borrower. Most commercial loans are secured by the assets being financed or other business assets, such as real estate, accounts receivable, or inventory, and
typically include personal guarantees. Owner-occupied real estate is included in commercial loans, as the repayment of these loans is generally dependent on the operations of the commercial borrower’s business rather than on income-producing properties
or the sale of the properties. Commercial loans are grouped into two distinct sub-categories: specialized and general. Commercial related
segments that are considered “specialized” include agricultural production and real estate loans, energy loans, and finance, investment, and insurance loans. Commercial related segments that contain a broader diversity of borrowers, sub-industries, or
serviced industries are grouped into the “general category.” These include goods, services, restaurant & retail, construction, and other industries. Performance of these loans is subject to operating and cash flow results of the borrower, with risk in the volatility of operating
results for particular industries.
Consumer – Loans to consumers include 1-4 family residential loans, auto loans, and other loans for
recreational vehicles or other purposes. The Company utilizes a computer-based credit scoring analysis to supplement its policies and procedures in underwriting consumer loans. The Company’s loan policy addresses types of consumer loans that may be
originated and the collateral, if secured, which must be perfected. The relatively smaller individual dollar amounts of consumer loans that are spread over numerous individual borrowers also minimizes the Company’s risk. The Company generally
requires mortgage title insurance and hazard insurance on 1-4 family residential loans. All consumer loans are generally dependent on the risk characteristics of the borrower’s ability to repay the loan, a consideration of the debt to income ratio,
employment and income stability, the loan-to-value ratio, and the age, condition and marketability of the collateral.
Construction – Loans for residential construction are for single-family properties to developers, builders, or end-users. These loans are underwritten based on estimates of costs and completed
value of the project. Funds are advanced based on estimated percentage of completion for the project. Performance of these loans is affected by economic conditions as well as the ability to control costs of the projects.
The ACL for loans was $43.1 million at June 30, 2023,
compared to $39.3 million at December 31, 2022. The ACL for loans to loans held for investment was 1.45% at June 30, 2023 and 1.43% at December 31, 2022.
The following table details the activity in the ACL for loans for the periods indicated (dollars in thousands). Allocation of a portion of the allowance to one category
of loans does not preclude its availability to absorb losses in other categories.
(1) The $3.7 million provision for credit loss on the Consolidated Statement of
Comprehensive Income (Loss) includes a $4.0 million provision for credit losses on loans and a $(260) thousand provision for off-balance sheet credit exposures for the three months ended June 30, 2023.
(1) The $4.7 million provision for credit loss on the Consolidated Statement of
Comprehensive Income (Loss) includes a $4.8 million provision for credit losses on loans and a $(50) thousand provision for off-balance sheet credit exposures for the six months ended June 30, 2023.
During the three and six
months ended June 30, 2023, the provision for credit losses on loans of $4.0 million and $4.8 million, respectively, reflected a build in the allowance driven primarily by organic loan growth experienced over the first six months of 2023. The changes in the ACL for
these periods were also impacted by net charge-offs of $1.0 million during the first six months of 2023 and an increase of $1.3 million in the ACL for credit losses on loans individually analyzed.
The following table shows the Company’s amortized cost in loans
and related ACL for collateral dependent loans by class using the fair value of collateral loss estimation methodology of evaluating expected credit losses at the date indicated (dollars in thousands).
The following table shows the Company’s investment in loans disaggregated based on the method of evaluating impairment at the date indicated (dollars in thousands):
Impaired loan information at the date indicated follows (dollars in thousands):
All impaired loans $250 thousand and greater were specifically evaluated for impairment at
December 31, 2022. Interest income recognized using a cash-basis method on individually analyzed loans for the three and six months ended June 30, 2023 was not significant. Additional funds committed to be advanced on individually analyzed loans are
not significant.
The table below provides an age analysis on accruing past-due loans and nonaccrual loans at the dates indicated (dollars in thousands):
The
Company has elected the fair value option for recording residential mortgage loans held for sale (mandatory) in accordance with GAAP. The Company had no nonaccrual mortgage loans held for sale (mandatory) at June 30, 2023, and December 31, 2022.
Credit Quality Indicators
The
Company grades its loans on a thirteen-point grading scale. These grades fit in one of the following categories: (i) pass, (ii) special
mention, (iii) substandard, (iv) doubtful, or (v) loss. Loans categorized as loss are charged-off immediately. The grading of loans reflect a judgment by the Company about the risks of default associated with the loan. The Company reviews the
grades on loans as part of the Company’s on-going monitoring of the credit quality of the loan portfolio. These risk ratings are assigned based on relevant information about the ability of the borrowers to service their debt such as: current
financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors.
Pass loans have financial factors or nature of collateral that are considered reasonable credit risks in the normal course of lending and encompass several grades that are
assigned based on varying levels of risk, ranging from credits that are secured by cash or marketable securities, to watch credits which have all the characteristics of an acceptable credit risk but warrant more than the normal level of monitoring.
Special mention loans have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of
repayment prospects for the loans at some future date.
Substandard loans are inadequately protected by the current net worth and paying capacity of the borrower or by the collateral pledged, if any. These loans have a
well-defined weakness or weaknesses that jeopardize collection and present the distinct possibility that some loss will be sustained if the deficiencies are not corrected. A protracted workout on these credits is a distinct possibility. Prompt
corrective action is therefore required to strengthen the Company’s position, and/or to reduce exposure and to assure that adequate remedial measures are taken by the borrower. Credit exposure becomes more likely in such credits and a serious
evaluation of the secondary support to the credit is performed. Substandard loans can be accruing or can be nonaccrual depending on the circumstances of the individual loans.
Doubtful loans have all the weaknesses inherent in substandard loans with the added characteristics that the weaknesses make collection or liquidation in full on the basis
of currently existing facts, conditions, and values highly questionable and improbable. All doubtful loans are on nonaccrual.
In connection with the review of the Company’s loan portfolio, management considers risk elements attributable to particular loan type or categories in assessing the
quality of individual loans. The list of loans to be analyzed for individual evaluation consists of non-accrual loans over $250 thousand with
direct exposure. Interest income recognized using a cash-basis method on non-accrual loans for the three and six months ended June 30, 2023 was not significant. In addition, the Company closely monitors substandard accruing loans over $1 million with direct exposure, and past due accruing loans over $100 thousand for possible individual evaluation. All other loans will be evaluated collectively in designated pools unless a loss exposure has been identified.
The following table reflects the amortized cost basis in loans by credit quality indicator and origination year at June 30, 2023, excluding loans held for sale. Loans acquired
are shown in the table by origination year, not merger date. The Company had an immaterial amount of revolving loans converted to term loans at June 30, 2023.
The following table
summarizes loans by credit quality indicator at December 31, 2022 (dollars in thousands):
Occasionally,
the Company modifies loans to borrowers in financial distress by providing principal forgiveness, term extensions, an other than insignificant payment delay, or interest rate reduction. When principal forgiveness is provided, the amount of
forgiveness is charged-off against the allowance for credit losses. Typically, one type of concession, such as term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal
forgiveness, may be granted. In some cases, the Company provides multiple types of concessions on one loan. For the loans included in the “combination” columns below, multiple types of modifications have been made on the same loan within the current
reporting period.
The following tables present the amortized cost basis of loans at June 30, 2023 that were both experiencing
financial difficulty and modified during the periods indicated by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost bases of
each class of financing receivable is also presented below (dollars in thousands):
The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the
effectiveness of its modification efforts. The following presents the performance of such loans that have been modified in the six months ended June 30, 2023 (dollars in thousands):
The following tables present the financial effects of the loan
modifications presented above to borrowers experiencing financial difficulty during the periods indicated below (dollars in thousands):
As of June 30, 2023, the Company did not
have any loans made to borrowers experiencing financial difficulty that were modified during the three and six months ended June 30, 2023 that subsequently defaulted. Payment default is defined as movement to nonperforming status, foreclosure, or
charge-off.
Upon the Company’s determination that a modified loan has subsequently been deemed to not be fully collectible, the uncollectible amount is written off. Therefore, the amortized cost basis of the loan is
reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.
Prior-period troubled debt restructuring (“TDR”) disclosures
Prior to adopting the new
accounting standard on loan modifications, the Company accounted for modifications of loans to borrowers experiencing financial difficulty as TDRs, when the modification resulted in a concession and specific reserves were charged to the ACL if
necessary for the amount of estimated credit loss. The following reflects loans that were considered TDRs prior to January 1, 2023. For further information on the Company’s TDR accounting policies, see Note 1, “Summary of Significant Accounting
Policies,” to the Company’s audited consolidated financial statements contained in the 2022 Annual Report on Form 10-K.
The Company had no loans modified as a TDR during the year
ended December 31, 2022.
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GOODWILL AND INTANGIBLES |
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GOODWILL AND INTANGIBLES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLES |
4. GOODWILL AND INTANGIBLES
The Company had goodwill of $19.3 and $19.5 million at June 30, 2023 and December 31, 2022.
Other intangible assets, which consist of CDI, customer lists, and employment agreements at the dates indicated are summarized below (dollars in thousands):
On April 1, 2023, the sale of Windmark was completed, resulting in the removal of goodwill and other intangible assets, net of accumulated amortization, of $193 thousand and $942 thousand,
respectively.
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MORTGAGE SERVICING RIGHTS |
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MORTGAGE SERVICING RIGHTS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MORTGAGE SERVICING RIGHTS |
5. MORTGAGE SERVICING RIGHTS
The following table reflects the changes in fair value of the Company’s mortgage servicing rights asset included in the Consolidated Balance Sheets, and other
information related to the serviced portfolio, for the periods or dates presented (dollars in thousands):
The following table reflects the key assumptions used in measuring the fair value of the Company’s mortgage servicing rights as of the dates indicated:
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BORROWING ARRANGEMENTS |
6 Months Ended |
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Jun. 30, 2023 | |
BORROWING ARRANGEMENTS [Abstract] | |
BORROWING ARRANGEMENTS |
6. BORROWING ARRANGEMENTS
Subordinated Debt
In December 2018, the Company issued $26.5 million in
subordinated debt notes. Notes totaling $12.4 million have a maturity date of Wall Street Journal prime rate, with a floor of 4.0% and a ceiling of 7.5%. These notes pay interest quarterly, are unsecured, and may be called
by the Company at any time after the remaining maturity is five years or less. Additionally, these notes are intended to qualify for Tier 2 capital treatment, subject to regulatory limitations.
and a weighted average fixed rate of 5.74% for the
first five years. The remaining $14.1
million of notes have a maturity date of and a weighted average fixed rate of 6.41% for the first seven years. After the fixed rate periods, all
notes will float at the On
September 29, 2020, the Company issued $50.0 million in subordinated debt notes. Proceeds were reduced by approximately $926 thousand in debt issuance costs. The notes have a maturity date of notes with a fixed rate of 4.50%
for the first five years. After the expiration of the fixed rate period, the will reset quarterly at a variable rate equal to the then current three-month Secured Overnight Financing Rate, as published by the Federal Reserve Bank of New York, plus 438 basis points. These notes pay interest semi-annually, are unsecured, and may be called by the Company at any time after the remaining maturity is five years or less. Additionally, these notes are intended to qualify for Tier 2 capital treatment, subject to regulatory
limitations.
As of June 30, 2023, the total amount of subordinated notes outstanding was $76.5 million less approximately $418
thousand of remaining debt issuance costs for a total balance of $76.1 million. As of December 31, 2022, the total amount of
subordinated notes outstanding was $76.5 million less approximately $511 thousand of remaining debt issuance costs for a total balance of $76.0
million.
Notes Payable and Other Borrowings
As of June 30, 2023 and December 31, 2022, City Bank had no outstanding advances from the Federal Home Loan Bank of Dallas (“FHLB”).
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STOCK-BASED COMPENSATION |
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STOCK-BASED COMPENSATION [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION |
7. STOCK-BASED COMPENSATION
Equity Incentive Plan
The 2019 Equity Incentive Plan (“Plan”) was approved by the Company’s Board of Directors on January 16, 2019 and by its shareholders on March 6, 2019. The purpose of the
Plan is to: (i) attract and retain the best available personnel for positions of substantial responsibility, (ii) provide additional incentive to employees, directors and consultants, and (iii) promote the success of the Company’s business. This Plan
permits the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, performance units, performance shares, and other stock-based awards. The maximum aggregate number of
shares of common stock that may be issued pursuant to all awards under the Plan is 2,300,000. The maximum aggregate number of shares that
may be issued under the Plan may be increased annually by up to 3% of the total issued and outstanding common shares of the Company at the
beginning of each fiscal year.
The fair
value of each option award is estimated on the date of grant using the Black-Scholes model that uses the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Company’s common stock and similar peer
company averages. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted represents the period of time that options granted are expected to be outstanding, which
takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.
Options
A summary of activity in the Plan during the period indicated is presented in the table below (dollars in thousands, except per share data):
A summary of assumptions used to calculate the fair values of the awards granted during the periods noted is presented below:
The total intrinsic value of options exercised during the six months ended June 30, 2023 and June 30, 2022 was $313 thousand and $74 thousand, respectively.
Restricted Stock Awards and Units
A summary of activity in the Plan during the period indicated is presented in the table below:
Restricted stock units granted under the Plan typically vest from
to four years, but vesting periods may vary. Compensation expense for these grants will be recognized over the vesting period of the
awards based on the fair value of the stock at the issue date.The total unrecognized compensation cost for the awards outstanding under the Plan at June 30, 2023 was $4.0 million and will be recognized over a weighted average remaining period of 1.73
years. The total fair value of restricted stock units vested during each of the six months ended June 30, 2023 and June 30, 2022 was $930
thousand and $488 thousand, respectively.
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OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES |
6 Months Ended | |||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||
OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES [Abstract] | ||||||||||||||||||||||||||||
OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES |
8. OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES
Financial instruments with off-balance-sheet risk - The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial
instruments include commitments to extend credit and standby letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated financial statements. The
Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for recorded instruments.
Financial instruments whose contract amounts represent credit risk outstanding at the dates indicated follow (dollars in thousands):
Commitments to grant loans and extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract.
Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily
represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer.
Standby letters of credit
are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those letters of credit are primarily issued to support public and private borrowing arrangements. Essentially all letters of credit issued
have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company requires collateral supporting those commitments if deemed
necessary.
FHLB Letters of Credit - The Company may use FHLB letters of credit to pledge to certain public deposits. The Company had no FHLB letters of credit outstanding at June 30, 2023 or December 31, 2022.
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LEASES |
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LEASES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES |
9. LEASES
The Company leases space, primarily for branch facilities and small equipment under
operating leases. The Company’s leases often include one or more options to renew at the Company’s discretion, and some of the Company’s leases include options to terminate within one year. When it is reasonably certain that the Company will exercise the option to renew or extend the lease term, that option is included in estimating the value of the ROU asset and
lease liability. The Company’s leases contain customary restrictions and covenants and do not contain any residual value guarantees. The Company has certain intercompany leases and subleases between its subsidiaries, and these transactions and
balances have been eliminated in consolidation and are not reflected in the tables and information presented below. As of June 30, 2023 and December 31, 2022, the Company had no finance leases.
The balance sheet components of the Company’s leases are as follows (in thousands):
The Company does not generally enter into leases which contain variable payments, other than due to the passage of time.
Operating lease costs, including short-term lease costs were $954 thousand and $1.7 million, respectively, for the three and six months ended June 30, 2023. Operating lease costs, including short-term lease costs were $747 thousand and $1,411 million, respectively, for the three
and six months ended June 30, 2022.
Supplemental cash flow information related to leases is as follows (in thousands):
For operating leases the Company’s weighted average remaining lease terms in years and weighted average discount rate was 10.22 and 5.38%, respectively, as of June 30, 2023, and 9.83 and 4.65%, respectively, as
of December 31, 2022.
Future undiscounted
lease payments at June 30, 2023, under operating lease agreements, are presented below (in thousands).
As of June 30,
2023, the Company had no additional operating leases that have not yet commenced.
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CAPITAL AND REGULATORY MATTERS |
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CAPITAL AND REGULATORY MATTERS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CAPITAL AND REGULATORY MATTERS |
10. CAPITAL AND REGULATORY MATTERS
The Company and its bank subsidiary are subject to various regulatory capital requirements administered by its banking regulators. Failure to meet minimum capital
requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and its bank subsidiary’s financial statements. Under capital guidelines
and the regulatory framework for prompt corrective action, the Company and its bank subsidiary must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance-sheet items as calculated
under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to
bank holding companies.
Quantitative measures established by regulation to ensure capital adequacy require the Company and its bank subsidiary to maintain minimum amounts and ratios (set forth
in the following table) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average assets (as defined). Management believes, as of June 30, 2023 and December 31,
2022, that the Company and its bank subsidiary met all capital adequacy requirements to which they are subject.
As of June 30, 2023 and December 31, 2022, the Company met the definition of “well-capitalized” under the applicable regulations of the Board of Governors of the Federal
Reserve System and the bank subsidiary was “well capitalized” under the FDIC’s regulatory framework for prompt corrective action and the Basel III capital guidelines. To be categorized as well capitalized, an institution must maintain minimum total
risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following tables. There are no conditions or events since June 30, 2023 that management believes have changed the bank subsidiary’s category.
The Company and its bank subsidiary’s actual capital amounts and ratios at the dates indicated follows (dollars in thousands):
The Company
is subject to the Basel III capital ratio requirements which include a “capital conservation buffer” of 2.50% above the regulatory minimum risk-based capital adequacy requirements. This 2.50% capital conservation buffer is reflected in the table
above. Both the Company’s and the Bank’s actual ratios, as outlined in the table above, exceeded the Basel III risk-based capital requirement with the capital conservation buffer as of June 30, 2023.
State banking regulations place certain restrictions on dividends paid by banks to their shareholders.
Dividends paid by the Company’s bank subsidiary would be prohibited if the effect thereof would cause the bank subsidiary’s capital to be reduced below applicable minimum capital requirements.
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DERIVATIVES |
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DERIVATIVES |
11. DERIVATIVES
The Company utilizes
interest rate swap agreements as part of its asset-liability management strategy to help manage its interest rate risk position. These interest rate swaps are designated and qualify as fair value hedges and are entered into to reduce exposure to
changes in fair value of fixed rate financial instruments. The notional amount of the interest rate swaps do not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amounts and the other
terms of the individual interest rate swap agreements.
The following table reflects the changes in fair
value hedges included in the Consolidated Statements of Comprehensive Income (Loss) for the periods indicated (dollars in thousands):
The following table reflects the fair
value hedges included in the Consolidated Balance Sheets at the dates indicated (dollars in thousands):
Mortgage banking derivatives
The net gains (losses) relating to free standing
derivative instruments used for risk management are summarized below for the periods indicated (dollars in thousands):
The following table reflects the amount and fair value of mortgage banking derivatives in the Consolidated Balance Sheets at the dates indicated (dollars in
thousands):
The Company had received cash collateral of $17.3
million to offset asset derivative positions on its interest rate swaps at June 30, 2023. This amount is reported in other liabilities in the Consolidated Balance Sheets. The Company had advanced $1.1 million to offset liability derivative positions on its interest rate swaps at June 30, 2023. Additionally, the Company had advanced $440 thousand on its mortgage forward contracts at June 30, 2023. The advanced cash collateral amounts are reported in cash and due from banks in the
Consolidated Balance Sheets.
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EARNINGS PER SHARE |
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EARNINGS PER SHARE [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE |
12. EARNINGS PER SHARE
The factors used in the earnings per share computation for the periods indicated follow (dollars in thousands, except per share data):
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FAIR VALUE DISCLOSURES |
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FAIR VALUE DISCLOSURES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE DISCLOSURES |
13. FAIR VALUE DISCLOSURES
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value
measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The
price in the principal (or most advantageous) market used to measure the fair value of the asset or liability is not adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the
measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i)
independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact.
Valuation techniques that are consistent with the market approach, the income approach and/or the cost approach are required by GAAP. The market approach uses prices and
other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount
on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset. Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions
that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from
independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the
circumstances. The fair value hierarchy for valuation inputs gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:
The following table summarizes fair value
measurements at the dates indicated (dollars in thousands):
Securities – Fair value is calculated based on market prices of similar securities using
matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities that are not actively traded.
Mortgage servicing rights – Mortgage servicing rights are reported at fair value using Level
3 inputs. The mortgage servicing rights asset is valued by projecting net servicing cash flows, which are then discounted to estimate the fair value. The fair value of the mortgage servicing rights asset is impacted by a variety of factors, including
prepayment speeds, default rates, and discount rates, which are significant unobservable inputs. Mortgage servicing
rights are the only Level 3 asset measured at fair value on a recurring basis, see Note 5 for the Level 3 change activity for the three and six months ended June 30, 2023 and 2022.
Derivatives – Fair value of derivatives is based on valuation models using observable market
data as of the measurement date.
Loans held for investment – Includes certain collateral-dependent loans which are reported
at the fair value, for which a specific allocation of the allowance for credit losses is based off of the underlying collateral, less estimated disposal costs, if repayment is expected solely from the sale of the collateral. Collateral values are
estimated using Level 2 inputs based on observable market data or Level 3 inputs based on customized discounting criteria.
Fair Values of Assets Recorded on a Recurring Basis for which the Fair Value Option has been Elected
Loans held for sale (mandatory) – Loans held for sale originated for mandatory delivery are reported at
fair value on a recurring basis due to the Company’s election to adopt fair value accounting treatment for these assets. This election allows for a more effective offset of the changes in fair values of the assets and the derivative instruments
used to economically hedge them without the burden of complying with the requirements for hedge accounting under ASC Topic 815, Derivatives and Hedging. For assets for which the fair value option has been elected, the earned current contractual
interest payment is recognized in interest income, loan origination costs and fees on fair value option loans are recognized in earnings as incurred and not deferred. At June 30, 2023, and December 31, 2022, the Company had no gains or losses recorded attributable to changes in instrument-specific credit risk. Fair value is determined using quoted prices for similar
assets, adjusted for specific attributes of that loan. At June 30, 2023 and December 31, 2022 the aggregate fair value of loans held for sale for mandatory delivery was $15.5 million and $10.0 million, respectively. The aggregate unpaid principal
balance as of the same dates was $15.1 million and $9.9 million, respectively, representing differences between fair value and unpaid principal balance of $372 thousand and $163 thousand, respectively. The Company had no loans held for sale for mandatory delivery designated as nonaccrual or 90 days or more past due at June 30, 2023 and December 31, 2022.
The total fair value
option impact on noninterest income for loans held for sale for mandatory delivery is included in Net gain on sales of loans in the Consolidated Statements of Comprehensive Income (Loss). For the three months ended June 30, 2023 and 2022 the net
(gain) loss amount totaled $9 thousand and $(471)
thousand, respectively. For the six months ended June 30, 2023 and 2022 the net (gain) loss amount totaled $(252) thousand and $1.7 million, respectively
The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at the dates indicated (dollars in thousands):
The estimated fair values, and related carrying amounts, of the Company’s financial instruments that are not previously disclosed in the recurring fair value section are
as follows (dollars in thousands):
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SUBSEQUENT EVENTS |
6 Months Ended |
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Jun. 30, 2023 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS |
14. SUBSEQUENT EVENTS
Dividend Declaration
On July 20, 2023, the Company’s board of directors declared a cash dividend of $0.13 per share of common stock to be paid on August 14, 2023
to all shareholders of record as of July 31, 2023.
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Insider Trading Arrangements |
3 Months Ended |
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Jun. 30, 2023 | |
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 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nature of Operations |
Nature of Operations – South Plains Financial, Inc.
(“SPFI”) is a Texas corporation and registered bank holding company that conducts its principal activities through its subsidiaries from offices located throughout Texas and Eastern New Mexico. Principal activities include commercial and retail
banking, along with investment, trust, and mortgage services. The following were subsidiaries of SPFI as of June 30, 2023:
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Consolidation |
The consolidated financial statements in this Quarterly Report on Form 10-Q for the three and six months ended June 30, 2023 (this “Form 10-Q”) include the accounts of
SPFI and its wholly-owned consolidated subsidiaries (collectively referred to as the “Company”) identified above. All significant intercompany balances and transactions have been eliminated in consolidation.
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Basis of Presentation |
The interim consolidated financial statements in this Form 10-Q have not been audited by an independent registered public accounting firm, but in the opinion of
management, reflect all adjustments necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows. All such adjustments were of a normal and recurring nature. The consolidated financial statements have
been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”).
Accordingly, the financial statements do not include all of the information and notes required by GAAP for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements, and notes thereto
in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period.
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Use of Estimates |
Use of Estimates – 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 and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ from those estimates. Determination of the adequacy of the allowance for credit losses (“ACL”) is a
material estimate that is particularly susceptible to significant change in the near term; the assumptions used in stock-based compensation, derivatives, mortgage servicing rights, and fair values of financial instruments can also involve significant
management estimates.
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Accounting Changes |
Accounting Changes – Updates to the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) are prescribed in Accounting Standards Updates (“ASUs”), which are not authoritative
until incorporated into the ASC.
ASU 2016-13 Financial Instruments - Credit Losses (Topic 326). The FASB issued guidance to replace the incurred loss model with an expected loss model, which is
referred to as the current expected credit loss (“CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables and held to maturity debt securities. The
CECL model also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby
letters of credit, financial guarantees, and other similar instruments) and net investments in sales type and direct financing leases recognized by a lessor in accordance with Topic 842 on leases. In addition, Topic 326 made changes to the
accounting for securities available for sale. One such change is to require credit losses to be presented as an allowance rather than as a write-down on securities available for sale management does not intend to sell or believes that it is more
likely than not they will be required to sell. The Company adopted the CECL model effective January 1, 2023 using the modified retrospective approach, as a result, the Company recognized a one-time, after tax cumulative effect debit adjustment
of $997 thousand to retained earnings, increased the ACL for loans by approximately $100 thousand and increased the ACL for off-balance sheet credit exposures by approximately $1.2 million. Results for reporting periods beginning after January 1, 2023 are presented under Topic 326, while prior period amounts continue to be reported in accordance with previously applicable GAAP.
The Company made the following policy elections related to the adoption of the
CECL model. First, accrued interest will be written off against interest income when financial assets are placed into nonaccrual status. Therefore, accrued interest will be excluded from the amortized cost basis for purposes of calculating the
ACL. Accrued interest receivable is presented in a separate line item in the Consolidated Balance Sheets. Second, the fair value of collateral practical expedient has been elected on certain loans in determining the ACL, for which the repayment
is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty.
The impact on the ACL resulting from the adoption of the CECL model is shown below.
ASU 2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This ASU eliminates guidance for troubled debt restructurings by creditors and enhances disclosure requirements for certain loan modifications by creditors for borrowers experiencing financial distress. This ASU defines types of modifications as principal forgiveness, interest rate reduction, other than insignificant payment delays, or a term extension. In addition, the ASU requires disclosure of current-period gross charge-offs, by year of origination, in the vintage disclosure. The Company adopted the provisions of ASU 2022-02 as of January 1, 2023 on a prospective basis. The adoption of this amendment did not have a material impact on the consolidated financial statements. In
connection with the adoption of the CECL model, the Company revised certain accounting policies and implemented certain accounting policy elections.
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Securities |
Securities – Investment securities may be classified into trading, held to maturity (“HTM”) or available for sale
(“AFS”) portfolios. Securities that are held principally for resale in the near term are classified as trading. Securities that management has the ability and positive intent to hold to maturity are classified as HTM and recorded at amortized
cost. Securities not classified as trading or HTM are AFS and are carried at fair value with unrealized gains and losses reported as a component of other comprehensive income (loss), net of tax. Management uses these assets as part of its
asset/liability management strategy; they may be sold in response to changes in liquidity needs, interest rates, resultant prepayment risk changes, and other factors. Management determines the appropriate classification of securities at the
time of purchase. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on sales are recorded on the trade date, are derived from the amortized cost of
the security sold and are determined using the specific identification method. A security is placed on nonaccrual status if principal or interest has been in default for a period of 90 days or more, or if full payment of principal and interest is not expected. The Company has made a policy election to exclude accrued interest receivable from the amortized cost
basis of AFS securities and report the accrued interest in accrued interest receivable in the Consolidated Balance Sheets. Interest accrued but not received for a security placed on nonaccrual status is reversed against interest income.
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ACL (AFS Securities) |
ACL (AFS Securities) – For AFS securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to
sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS securities that
do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than
amortized cost, any changes to the rating of the security by rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash
flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is
recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income (loss). Changes in the ACL are
recorded as provision for credit losses. Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met.
Accrued interest is excluded from the estimate of credit losses.
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Loans |
Loans – Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their
amortized cost. Amortized cost is the outstanding unpaid principal balances, net of any unearned income, charge-offs, unamortized deferred fees and costs on originated loans, and unamortized premiums or discounts on purchased loans. The Company
has made a policy election to exclude accrued interest from the amortized cost basis of loans and report accrued interest separately from the related loan balance in accrued interest receivable on the Consolidated Balance Sheets. Accrued interest
receivable is excluded from the estimate of credit losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related
loan yield using the straight-line method, which is not materially different from the effective interest method required by GAAP.
Loans are placed on nonaccrual status when, in management’s
opinion, collection of interest is unlikely, which typically occurs when principal or interest payments are more than ninety days past
due. When interest accrual is discontinued, all unpaid accrued interest is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are
returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.
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ACL (Loans) |
ACL (Loans) – The ACL is a valuation account established by management as an estimate to cover expected credit losses through a provision for credit losses charged to earnings. Credit losses on loans are charged
against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Expected losses are calculated using comparable and quantifiable information from
both internal and external sources about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Expected credit losses are estimated over
the contractual term of the loans and adjusted for expected prepayments.
The ACL is evaluated on a quarterly basis by management. The Company applied a dual credit risk rating
(“DCRR”) methodology that estimates each loan’s probability of default and loss given default to calculate the expected credit loss to non-analyzed loans at January 1 and June 30, 2023. The DCRR process quantifies the expected credit loss at the
loan level for the entire loan portfolio. Loan grades are assigned by a customized scorecard that risk rates each loan based on multiple probability of default and loss given default elements to measure the credit risk of the loan portfolio.
The ACL estimate incorporates the Company’s DCRR loan level risk rating methodology and the expected default rate frequency term structure to derive loan level life of loan estimates of credit losses for every loan in the portfolio. The
estimated credit loss for each loan is adjusted based on its one-year through the cycle estimate of expected credit loss to a life of
loan measurement that reflects current conditions and reasonable and supportable forecasts. The life of loan expected loss is determined using the contractual weighted average life of the loan adjusted for prepayments. Prepayment speeds are
determined by grouping the loans into pools based on segments and risk rating. After the life of loan expected losses are determined, they are adjusted to reflect the Company’s reasonable and supportable economic forecast over a selected range of to two years. The Company has developed regression models
to project net charge-off rates based on macroeconomic variables (“MEVs”), typically a one-year forecast period is used. MEV’s considered in the analysis
consist of data gathered from the St. Louis Federal Reserve Research Database (“FRED”), such as, federal funds rate, 10-year treasury rates, 30-year mortgage rates, crude oil prices, consumer price index, housing price index, unemployment rates,
housing starts, gross domestic product, and disposable personal income. These regression models are applied to the Company’s economic forecast to determine the corresponding net charge-off rates. The projected net charge-off rates for the given economic scenario are used to adjust the
life of loan expected losses. Qualitative adjustments are also made to ACL results for additional risk factors that are relevant in assessing the expected credit losses within our loan segments. These qualitative factor (“Q-Factor”) adjustments
may increase or decrease management’s estimate of the ACL by a calculated percentage based upon the estimated level of risk within a particular segment. Q-Factor risk decisions consider concentrations of the loan portfolio, expected changes to
the economic forecasts, large relationships, and other factors related to credit administration, such as borrower’s risk rating and the potential effect of delayed credit score migrations. Management quantifiably identifies segment percentage
Q-Factor adjustments using a scorecard risk rating system scaled to historical loss experience within a segment and management’s perceived risk for that particular segment.
While management uses available information to recognize credit losses on loans,
further reductions in the carrying amounts of loans may be necessary based on various factors. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated credit losses on loans. Such agencies
may require the bank subsidiary to recognize additional credit losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated credit losses
on loans may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated.
Loans that exhibit
characteristics different from their pool characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the collective ACL evaluation. When management determines that foreclosure is probable, or if certain
of these loans are considered to be collateral dependent with the borrower experiencing financial difficulty, the Company elects the fair value of collateral practical expedient, whereby the allowance is calculated as the amount by which the
amortized cost exceeds the fair value of collateral, less costs to sell.
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ACL (Off-Balance Sheet Credit Exposures) |
ACL (Off-Balance Sheet Credit Exposures) – The Company estimates expected credit losses over the contractual period in
which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL for off-balance sheet credit exposures is adjusted through provision for
credit losses. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Utilization rates are determined based on a two-year rolling average of historical usage. Expected loss rates for all pass rated loans are used to determine the ACL for off-balance sheet credit
exposures. The ACL for off-balance sheet credit exposures is included in accrued expenses and other liabilities on the Consolidated Balance Sheets.
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Acquired Loans |
Acquired Loans – Loans that the Company acquires in connection with business combinations are recorded at fair value with no carryover of the acquired entity’s related ACL. The fair value of the acquired loans involves estimating the
amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest, adjusted for estimated prepayments and credit losses. In accordance with Topic 326, the
fair value adjustment is recorded as premium or discount to the unpaid principal balance of each acquired loan. In addition, the Company also records an ACL on each acquired loan.
Any acquired loans the Company determines have evidence of a more than insignificant deterioration in credit quality since origination, are considered to be purchase
credit deteriorated (“PCD”) loans. The Company evaluates acquired loans for deterioration in credit quality based on any of, but not limited to, the following: (i) non-accrual status; (ii) risk rating, (iii) watchlist credits; and (iv) delinquency
status. An ACL is determined using the same methodology as other individually evaluated loans. The sum of the PCD loan’s purchase price and ACL becomes its initial amortized cost basis. The difference between the initial amortized cost basis and
the par value of the loan is a non-credit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the ACL are recorded through provision for credit losses.
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Goodwill and Other Intangible Assets |
Goodwill and Other Intangible Assets – Goodwill resulting from business
combinations is generally determined as the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill is not amortized, but is tested for
impairment on October 31 of each year or more frequently if events and circumstances exist that indicate that an impairment test should be performed. There was no goodwill impairment recorded for the six months ended June 30, 2023
and the year ended December 31, 2022.
Core deposit intangible (“CDI”) is a measure of the value of checking and savings
deposit relationships acquired in a business combination. The fair value of the CDI stemming from any given business combination is based on the present value of the expected cost savings attributable to the core deposit funding relative to an
alternative source of funding. CDI is amortized over the estimated useful lives of the existing deposit relationships acquired, but does not exceed 10
years. Substantially all CDI is amortized using the sum of the years’ digits method.
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Earnings per Share |
Earnings per Share – Basic earnings per share is net income divided by the weighted average number of
common shares outstanding during the period. Diluted earnings per share includes the dilutive effect of additional potential shares issuable under stock options. Earnings and dividends per share are restated for all stock splits and stock dividends
through the date of issuance of the consolidated financial statements.
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Segment Information |
Segment Information – The Company previously identified two
operating segments: banking and insurance. The accounting policies for each of the segments were the same as those described in the summary of significant accounting policies. Effective January 1, 2023, operations and financial performance of the
insurance segment were being performed and evaluated on a Company-wide basis based on not being significant to the operating results of the Company. Furthermore, the insurance segment was sold on April 1, 2023. As a result, segment reporting
disclosures have been removed.
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Subsequent Events |
Subsequent Events – The
Company has evaluated subsequent events and transactions from June 30,2023 through the date this Form 10-Q was filed with the SEC for potential recognition or disclosure as required by GAAP.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsidiaries Information | The following were subsidiaries of SPFI as of June 30, 2023:
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Impact on ACL from Adoption of the CECL |
The impact on the ACL resulting from the adoption of the CECL model is shown below.
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SECURITIES (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SECURITIES [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost and Fair Value of Securities with Gross Unrealized Gains and Losses |
The amortized cost, related gross unrealized gains and losses, allowance for credit losses, and estimated fair value of securities available for sale at the dates indicated follows (dollars in
thousands):
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Amortized Cost and Fair Value of Securities by Contractual Maturity |
The amortized cost and estimated fair value of securities at June 30, 2023 are presented below by contractual maturity (dollars in thousands). Expected maturities may
differ from contractual maturities because issuers may have the right to call or prepay obligations. Other securities are shown separately since they are not due at a single maturity date.
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Securities with Unrealized Losses Segregated by the Period in a Loss Position |
The following table segregates securities with unrealized losses at the periods indicated, by the duration they have been in a loss position for which an allowance for
credit losses has not been recorded (dollars in thousands):
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LOANS HELD FOR INVESTMENT (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS HELD FOR INVESTMENT [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Loans Held for Investment by Category |
Loans held for investment are summarized by category as of the periods presented below (dollars in thousands):
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Activity in ACL for Loans and Investment in Loans Disaggregated Based on Method of Evaluating Impairment |
The following table details the activity in the ACL for loans for the periods indicated (dollars in thousands). Allocation of a portion of the allowance to one category
of loans does not preclude its availability to absorb losses in other categories.
(1) The $3.7 million provision for credit loss on the Consolidated Statement of
Comprehensive Income (Loss) includes a $4.0 million provision for credit losses on loans and a $(260) thousand provision for off-balance sheet credit exposures for the three months ended June 30, 2023.
(1) The $4.7 million provision for credit loss on the Consolidated Statement of
Comprehensive Income (Loss) includes a $4.8 million provision for credit losses on loans and a $(50) thousand provision for off-balance sheet credit exposures for the six months ended June 30, 2023.
The following table shows the Company’s amortized cost in loans
and related ACL for collateral dependent loans by class using the fair value of collateral loss estimation methodology of evaluating expected credit losses at the date indicated (dollars in thousands).
The following table shows the Company’s investment in loans disaggregated based on the method of evaluating impairment at the date indicated (dollars in thousands):
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Impaired Loan Information |
Impaired loan information at the date indicated follows (dollars in thousands):
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Age Analysis on Accruing Past-due Loans and Nonaccrual Loans |
The table below provides an age analysis on accruing past-due loans and nonaccrual loans at the dates indicated (dollars in thousands):
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Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year |
The following table reflects the amortized cost basis in loans by credit quality indicator and origination year at June 30, 2023, excluding loans held for sale. Loans acquired
are shown in the table by origination year, not merger date. The Company had an immaterial amount of revolving loans converted to term loans at June 30, 2023.
The following table
summarizes loans by credit quality indicator at December 31, 2022 (dollars in thousands):
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Amortized Cost Basis of Loans Modified to Borrowers Experiencing Financial Difficulty and Financial Effects of Loan Modifications |
The following tables present the amortized cost basis of loans at June 30, 2023 that were both experiencing
financial difficulty and modified during the periods indicated by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost bases of
each class of financing receivable is also presented below (dollars in thousands):
The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the
effectiveness of its modification efforts. The following presents the performance of such loans that have been modified in the six months ended June 30, 2023 (dollars in thousands):
The following tables present the financial effects of the loan
modifications presented above to borrowers experiencing financial difficulty during the periods indicated below (dollars in thousands):
|
GOODWILL AND INTANGIBLES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Intangible Assets |
Other intangible assets, which consist of CDI, customer lists, and employment agreements at the dates indicated are summarized below (dollars in thousands):
|
MORTGAGE SERVICING RIGHTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MORTGAGE SERVICING RIGHTS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in Fair Value of Mortgage Servicing Rights Asset and Other Information |
The following table reflects the changes in fair value of the Company’s mortgage servicing rights asset included in the Consolidated Balance Sheets, and other
information related to the serviced portfolio, for the periods or dates presented (dollars in thousands):
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Key Assumptions Used in Measuring Fair Value of Mortgage Servicing Rights |
The following table reflects the key assumptions used in measuring the fair value of the Company’s mortgage servicing rights as of the dates indicated:
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STOCK-BASED COMPENSATION (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Option Activity |
A summary of activity in the Plan during the period indicated is presented in the table below (dollars in thousands, except per share data):
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Summary of Assumptions Used to Calculate Fair Value of Awards |
A summary of assumptions used to calculate the fair values of the awards granted during the periods noted is presented below:
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Summary of Activity of Restricted Stock Units |
A summary of activity in the Plan during the period indicated is presented in the table below:
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OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES (Tables) |
6 Months Ended | |||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||
OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES [Abstract] | ||||||||||||||||||||||||||||
Financial Instrument Whose Contract Amounts Represent Credit Risk Outstanding |
Financial instruments whose contract amounts represent credit risk outstanding at the dates indicated follow (dollars in thousands):
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LEASES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Components of Leases |
The balance sheet components of the Company’s leases are as follows (in thousands):
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Supplemental Cash Flow Information Related to Leases |
Supplemental cash flow information related to leases is as follows (in thousands):
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Maturities of Operating Lease Liabilities |
Future undiscounted
lease payments at June 30, 2023, under operating lease agreements, are presented below (in thousands).
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CAPITAL AND REGULATORY MATTERS (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CAPITAL AND REGULATORY MATTERS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actual Capital Amounts and Ratios |
The Company and its bank subsidiary’s actual capital amounts and ratios at the dates indicated follows (dollars in thousands):
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DERIVATIVES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Banking [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Gains (Losses) Relating to Derivative Instruments |
The net gains (losses) relating to free standing
derivative instruments used for risk management are summarized below for the periods indicated (dollars in thousands):
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Fair Value of Derivatives in Consolidated Balance Sheets |
The following table reflects the amount and fair value of mortgage banking derivatives in the Consolidated Balance Sheets at the dates indicated (dollars in
thousands):
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Fair Value Hedging [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivatives in Consolidated Balance Sheets |
The following table reflects the fair
value hedges included in the Consolidated Balance Sheets at the dates indicated (dollars in thousands):
|
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Interest Rate Contracts [Member] | Fair Value Hedging [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Gains (Losses) Relating to Derivative Instruments |
The following table reflects the changes in fair
value hedges included in the Consolidated Statements of Comprehensive Income (Loss) for the periods indicated (dollars in thousands):
|
EARNINGS PER SHARE (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Factors Used in Earnings Per Share Computation |
The factors used in the earnings per share computation for the periods indicated follow (dollars in thousands, except per share data):
|
FAIR VALUE DISCLOSURES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE DISCLOSURES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets (Liabilities) Measured at Fair Value on Recurring and Non-Recurring Basis |
The following table summarizes fair value
measurements at the dates indicated (dollars in thousands):
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Quantitative Information about Recurring ad Non-Recurring Level 3 Fair Value Measurements |
The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at the dates indicated (dollars in thousands):
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Estimated Fair Values, and Related Carrying Amounts of Financial Instruments |
The estimated fair values, and related carrying amounts, of the Company’s financial instruments that are not previously disclosed in the recurring fair value section are
as follows (dollars in thousands):
|
SECURITIES, Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Available for Sale, Amortized Cost [Abstract] | ||
Within 1 year | $ 2,628 | |
After 1 year through 5 years | 5,387 | |
After 5 years through 10 years | 17,405 | |
After 10 years | 193,415 | |
Other | 507,092 | |
Amortized cost | 725,927 | $ 804,469 |
Available for Sale, Fair Value [Abstract] | ||
Within 1 year | 2,629 | |
After 1 year through 5 years | 5,119 | |
After 5 years through 10 years | 16,179 | |
After 10 years | 167,381 | |
Other | 436,785 | |
Fair value | $ 628,093 | $ 701,711 |
SECURITIES, Securities Transferred and Securities Pledged (Details) $ in Millions |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2023
USD ($)
Security
|
Dec. 31, 2022
USD ($)
Security
|
|
SECURITIES [Abstract] | ||
Holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of stockholders' equity | Security | 0 | 0 |
Carrying value of securities pledged to collateralize public deposits and for other purposes | $ | $ 424.1 | $ 464.1 |
LOANS HELD FOR INVESTMENT, Recorded Investment in Loans and Related ACL on Loans Recorded Disaggregated (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | $ 19,543 | $ 5,106 |
Collectively Evaluated - Probability of Default | 2,742,975 | |
ACL for Loans [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 1,445 | 285 |
Collectively Evaluated - Probability of Default | 39,003 | |
Real Estate [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 9,101 | |
Equipment [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 10,250 | |
Accounts Receivable [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 192 | |
Commercial Real Estate [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 730 | 0 |
Collectively Evaluated - Probability of Default | 919,358 | |
ACL for Loans [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | 0 |
Collectively Evaluated - Probability of Default | 13,029 | |
Commercial Real Estate [Member] | Real Estate [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 175 | |
Commercial Real Estate [Member] | Equipment [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 525 | |
Commercial Real Estate [Member] | Accounts Receivable [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 30 | |
Commercial [Member] | Specialized [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | 0 |
Collectively Evaluated - Probability of Default | 327,513 | |
ACL for Loans [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | 0 |
Collectively Evaluated - Probability of Default | 3,425 | |
Commercial [Member] | Specialized [Member] | Real Estate [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | |
Commercial [Member] | Specialized [Member] | Equipment [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | |
Commercial [Member] | Specialized [Member] | Accounts Receivable [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | |
Commercial [Member] | General [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 18,065 | 3,350 |
Collectively Evaluated - Probability of Default | 481,433 | |
ACL for Loans [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 1,362 | 22 |
Collectively Evaluated - Probability of Default | 9,193 | |
Commercial [Member] | General [Member] | Real Estate [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 8,179 | |
Commercial [Member] | General [Member] | Equipment [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 9,724 | |
Commercial [Member] | General [Member] | Accounts Receivable [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 162 | |
Consumer [Member] | 1-4 Family Residential [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 748 | 742 |
Collectively Evaluated - Probability of Default | 459,382 | |
ACL for Loans [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 83 | 18 |
Collectively Evaluated - Probability of Default | 6,176 | |
Consumer [Member] | 1-4 Family Residential [Member] | Real Estate [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 747 | |
Consumer [Member] | 1-4 Family Residential [Member] | Equipment [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 1 | |
Consumer [Member] | 1-4 Family Residential [Member] | Accounts Receivable [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | |
Consumer [Member] | Auto Loans [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | 0 |
Collectively Evaluated - Probability of Default | 321,476 | |
ACL for Loans [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | 0 |
Collectively Evaluated - Probability of Default | 3,926 | |
Consumer [Member] | Auto Loans [Member] | Real Estate [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | |
Consumer [Member] | Auto Loans [Member] | Equipment [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | |
Consumer [Member] | Auto Loans [Member] | Accounts Receivable [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | |
Consumer [Member] | Other Consumer [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | 0 |
Collectively Evaluated - Probability of Default | 81,308 | |
ACL for Loans [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | 0 |
Collectively Evaluated - Probability of Default | 1,376 | |
Consumer [Member] | Other Consumer [Member] | Real Estate [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | |
Consumer [Member] | Other Consumer [Member] | Equipment [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | |
Consumer [Member] | Other Consumer [Member] | Accounts Receivable [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | |
Construction [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | 1,014 |
Collectively Evaluated - Probability of Default | 152,505 | |
ACL for Loans [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | 245 |
Collectively Evaluated - Probability of Default | $ 1,878 | |
Construction [Member] | Real Estate [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | |
Construction [Member] | Equipment [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | 0 | |
Construction [Member] | Accounts Receivable [Member] | ||
Recorded Investment [Abstract] | ||
Individually Evaluated - Fair Value of Collateral | $ 0 |
LOANS HELD FOR INVESTMENT, Impaired Loan Information (Details) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2022
USD ($)
| |
Impaired Loan Information [Abstract] | |
Unpaid Contractual Principal Balance | $ 5,106 |
Recorded Investment [Abstract] | |
Recorded Investment With No Allowance | 1,971 |
Recorded Investment With Allowance | 3,135 |
Total Recorded Investment | 5,106 |
Related Allowance | 285 |
Average Recorded Investment | 6,439 |
Minimum [Member] | |
Recorded Investment [Abstract] | |
Threshold balance of loan to be specifically reviewed for impairment | 250 |
Commercial Real Estate [Member] | |
Impaired Loan Information [Abstract] | |
Unpaid Contractual Principal Balance | 0 |
Recorded Investment [Abstract] | |
Recorded Investment With No Allowance | 0 |
Recorded Investment With Allowance | 0 |
Total Recorded Investment | 0 |
Related Allowance | 0 |
Average Recorded Investment | 551 |
Commercial [Member] | Specialized [Member] | |
Impaired Loan Information [Abstract] | |
Unpaid Contractual Principal Balance | 0 |
Recorded Investment [Abstract] | |
Recorded Investment With No Allowance | 0 |
Recorded Investment With Allowance | 0 |
Total Recorded Investment | 0 |
Related Allowance | 0 |
Average Recorded Investment | 0 |
Commercial [Member] | General [Member] | |
Impaired Loan Information [Abstract] | |
Unpaid Contractual Principal Balance | 3,350 |
Recorded Investment [Abstract] | |
Recorded Investment With No Allowance | 799 |
Recorded Investment With Allowance | 2,551 |
Total Recorded Investment | 3,350 |
Related Allowance | 22 |
Average Recorded Investment | 4,214 |
Consumer [Member] | 1-4 Family Residential [Member] | |
Impaired Loan Information [Abstract] | |
Unpaid Contractual Principal Balance | 742 |
Recorded Investment [Abstract] | |
Recorded Investment With No Allowance | 486 |
Recorded Investment With Allowance | 256 |
Total Recorded Investment | 742 |
Related Allowance | 18 |
Average Recorded Investment | 1,167 |
Consumer [Member] | Auto Loans [Member] | |
Impaired Loan Information [Abstract] | |
Unpaid Contractual Principal Balance | 0 |
Recorded Investment [Abstract] | |
Recorded Investment With No Allowance | 0 |
Recorded Investment With Allowance | 0 |
Total Recorded Investment | 0 |
Related Allowance | 0 |
Average Recorded Investment | 0 |
Consumer [Member] | Other Consumer [Member] | |
Impaired Loan Information [Abstract] | |
Unpaid Contractual Principal Balance | 0 |
Recorded Investment [Abstract] | |
Recorded Investment With No Allowance | 0 |
Recorded Investment With Allowance | 0 |
Total Recorded Investment | 0 |
Related Allowance | 0 |
Average Recorded Investment | 0 |
Construction [Member] | |
Impaired Loan Information [Abstract] | |
Unpaid Contractual Principal Balance | 1,014 |
Recorded Investment [Abstract] | |
Recorded Investment With No Allowance | 686 |
Recorded Investment With Allowance | 328 |
Total Recorded Investment | 1,014 |
Related Allowance | 245 |
Average Recorded Investment | $ 507 |
LOANS HELD FOR INVESTMENT, Age Analysis on Accruing Past-due Loans and Nonaccrual Loans (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | $ 2,979,063 | $ 2,748,081 |
Nonaccrual | 16,561 | 5,802 |
Nonaccrual with no ACL | 261 | |
Nonaccrual mortgage loans held for sale | 0 | 0 |
30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 4,795 | 5,951 |
90 Days or More Past Due and Still Accruing [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 4,478 | 1,987 |
Commercial Real Estate [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 1,006,909 | 919,358 |
Nonaccrual | 0 | 0 |
Nonaccrual with no ACL | 0 | |
Commercial Real Estate [Member] | 30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 65 | 342 |
Commercial Real Estate [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 91 | 27 |
Commercial [Member] | Specialized [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 355,252 | 327,513 |
Nonaccrual | 249 | 38 |
Nonaccrual with no ACL | 0 | |
Commercial [Member] | Specialized [Member] | 30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 230 | 25 |
Commercial [Member] | Specialized [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 11 | 13 |
Commercial [Member] | General [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 551,096 | 484,783 |
Nonaccrual | 14,078 | 3,357 |
Nonaccrual with no ACL | 0 | |
Commercial [Member] | General [Member] | 30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 335 | 1,451 |
Commercial [Member] | General [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 3,352 | 60 |
Consumer [Member] | 1-4 Family Residential [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 522,472 | 460,124 |
Nonaccrual | 1,977 | 1,356 |
Nonaccrual with no ACL | 261 | |
Consumer [Member] | 1-4 Family Residential [Member] | 30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 1,829 | 1,389 |
Consumer [Member] | 1-4 Family Residential [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 630 | 1,653 |
Consumer [Member] | Auto Loans [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 318,126 | 321,476 |
Nonaccrual | 0 | 0 |
Nonaccrual with no ACL | 0 | |
Consumer [Member] | Auto Loans [Member] | 30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 971 | 707 |
Consumer [Member] | Auto Loans [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 145 | 85 |
Consumer [Member] | Other Consumer [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 79,795 | 81,308 |
Nonaccrual | 34 | 37 |
Nonaccrual with no ACL | 0 | |
Consumer [Member] | Other Consumer [Member] | 30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 754 | 1,487 |
Consumer [Member] | Other Consumer [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 249 | 149 |
Construction [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 145,413 | 153,519 |
Nonaccrual | 223 | 1,014 |
Nonaccrual with no ACL | 0 | |
Construction [Member] | 30-89 Days Past Due [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | 611 | 550 |
Construction [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract] | ||
Past Due | $ 0 | $ 0 |
LOANS HELD FOR INVESTMENT, Amortized Cost Basis of Loans by Credit Quality Indicator and Origination Year (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023
USD ($)
|
Jun. 30, 2022
USD ($)
|
Jun. 30, 2023
USD ($)
Point
|
Jun. 30, 2022
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
Credit Quality Indicators [Abstract] | |||||
Number of points on a grading scale for loans | Point | 13 | ||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
Loans | $ 2,979,063 | $ 2,979,063 | $ 2,748,081 | ||
Current Period Gross Charge-offs [Abstract] | |||||
Current period gross charge-offs | 555 | $ 553 | 1,494 | $ 1,210 | |
Minimum [Member] | |||||
Credit Quality Indicators [Abstract] | |||||
Non-accrual loans with direct exposure analyzed for individual evaluation | 250 | 250 | |||
Past due accruing loans closely monitored | 100 | 100 | |||
Pass [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
Loans | 2,676,234 | ||||
Special Mention [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
Loans | 0 | ||||
Substandard [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
Loans | 71,847 | ||||
Substandard [Member] | Minimum [Member] | |||||
Credit Quality Indicators [Abstract] | |||||
Accruing loans with direct exposure that are closely monitored | 1,000 | 1,000 | |||
Doubtful [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
Loans | 0 | ||||
Commercial Real Estate [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 176,070 | 176,070 | |||
2022 | 297,355 | 297,355 | |||
2021 | 222,041 | 222,041 | |||
2020 | 66,144 | 66,144 | |||
2019 | 52,553 | 52,553 | |||
Prior | 189,570 | 189,570 | |||
Revolving loans | 3,176 | 3,176 | |||
Loans | 1,006,909 | 1,006,909 | 919,358 | ||
Current Period Gross Charge-offs [Abstract] | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 0 | ||||
Revolving loans | 0 | ||||
Current period gross charge-offs | 0 | 0 | 0 | 0 | |
Commercial Real Estate [Member] | Pass [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 176,070 | 176,070 | |||
2022 | 297,336 | 297,336 | |||
2021 | 200,707 | 200,707 | |||
2020 | 64,464 | 64,464 | |||
2019 | 51,726 | 51,726 | |||
Prior | 189,162 | 189,162 | |||
Revolving loans | 3,176 | 3,176 | |||
Loans | 982,641 | 982,641 | 893,312 | ||
Commercial Real Estate [Member] | Special Mention [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 0 | 0 | 0 | ||
Commercial Real Estate [Member] | Substandard [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 19 | 19 | |||
2021 | 21,334 | 21,334 | |||
2020 | 1,680 | 1,680 | |||
2019 | 827 | 827 | |||
Prior | 408 | 408 | |||
Revolving loans | 0 | 0 | |||
Loans | 24,268 | 24,268 | 26,046 | ||
Commercial Real Estate [Member] | Doubtful [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 0 | 0 | 0 | ||
Commercial [Member] | Specialized [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 80,261 | 80,261 | |||
2022 | 66,807 | 66,807 | |||
2021 | 60,673 | 60,673 | |||
2020 | 21,842 | 21,842 | |||
2019 | 13,100 | 13,100 | |||
Prior | 27,070 | 27,070 | |||
Revolving loans | 85,499 | 85,499 | |||
Loans | 355,252 | 355,252 | 327,513 | ||
Current Period Gross Charge-offs [Abstract] | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 0 | ||||
Revolving loans | 0 | ||||
Current period gross charge-offs | 0 | 68 | 0 | 106 | |
Commercial [Member] | Specialized [Member] | Pass [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 80,261 | 80,261 | |||
2022 | 66,731 | 66,731 | |||
2021 | 60,490 | 60,490 | |||
2020 | 21,415 | 21,415 | |||
2019 | 13,081 | 13,081 | |||
Prior | 27,015 | 27,015 | |||
Revolving loans | 85,499 | 85,499 | |||
Loans | 354,492 | 354,492 | 326,987 | ||
Commercial [Member] | Specialized [Member] | Special Mention [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 0 | 0 | 0 | ||
Commercial [Member] | Specialized [Member] | Substandard [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 76 | 76 | |||
2021 | 183 | 183 | |||
2020 | 427 | 427 | |||
2019 | 19 | 19 | |||
Prior | 55 | 55 | |||
Revolving loans | 0 | 0 | |||
Loans | 760 | 760 | 526 | ||
Commercial [Member] | Specialized [Member] | Doubtful [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 0 | 0 | 0 | ||
Commercial [Member] | General [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 62,771 | 62,771 | |||
2022 | 162,128 | 162,128 | |||
2021 | 109,203 | 109,203 | |||
2020 | 40,235 | 40,235 | |||
2019 | 44,244 | 44,244 | |||
Prior | 80,856 | 80,856 | |||
Revolving loans | 51,659 | 51,659 | |||
Loans | 551,096 | 551,096 | 484,783 | ||
Current Period Gross Charge-offs [Abstract] | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 25 | ||||
2020 | 10 | ||||
2019 | 18 | ||||
Prior | 316 | ||||
Revolving loans | 0 | ||||
Current period gross charge-offs | 169 | 8 | 369 | 315 | |
Commercial [Member] | General [Member] | Pass [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 62,492 | 62,492 | |||
2022 | 150,617 | 150,617 | |||
2021 | 104,547 | 104,547 | |||
2020 | 39,728 | 39,728 | |||
2019 | 37,506 | 37,506 | |||
Prior | 74,893 | 74,893 | |||
Revolving loans | 51,304 | 51,304 | |||
Loans | 521,087 | 521,087 | 451,639 | ||
Commercial [Member] | General [Member] | Special Mention [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 0 | 0 | 0 | ||
Commercial [Member] | General [Member] | Substandard [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 279 | 279 | |||
2022 | 11,511 | 11,511 | |||
2021 | 4,656 | 4,656 | |||
2020 | 507 | 507 | |||
2019 | 6,738 | 6,738 | |||
Prior | 5,963 | 5,963 | |||
Revolving loans | 355 | 355 | |||
Loans | 30,009 | 30,009 | 33,144 | ||
Commercial [Member] | General [Member] | Doubtful [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 0 | 0 | 0 | ||
Consumer [Member] | 1-4 Family Residential [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 66,427 | 66,427 | |||
2022 | 165,652 | 165,652 | |||
2021 | 115,532 | 115,532 | |||
2020 | 57,582 | 57,582 | |||
2019 | 38,057 | 38,057 | |||
Prior | 69,596 | 69,596 | |||
Revolving loans | 9,626 | 9,626 | |||
Loans | 522,472 | 522,472 | 460,124 | ||
Current Period Gross Charge-offs [Abstract] | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 0 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 0 | ||||
Revolving loans | 0 | ||||
Current period gross charge-offs | 0 | 0 | 0 | 40 | |
Consumer [Member] | 1-4 Family Residential [Member] | Pass [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 66,427 | 66,427 | |||
2022 | 165,339 | 165,339 | |||
2021 | 114,591 | 114,591 | |||
2020 | 55,850 | 55,850 | |||
2019 | 33,736 | 33,736 | |||
Prior | 65,403 | 65,403 | |||
Revolving loans | 9,613 | 9,613 | |||
Loans | 510,959 | 510,959 | 450,034 | ||
Consumer [Member] | 1-4 Family Residential [Member] | Special Mention [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 0 | 0 | 0 | ||
Consumer [Member] | 1-4 Family Residential [Member] | Substandard [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 313 | 313 | |||
2021 | 941 | 941 | |||
2020 | 1,732 | 1,732 | |||
2019 | 4,321 | 4,321 | |||
Prior | 4,193 | 4,193 | |||
Revolving loans | 13 | 13 | |||
Loans | 11,513 | 11,513 | 10,090 | ||
Consumer [Member] | 1-4 Family Residential [Member] | Doubtful [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 0 | 0 | 0 | ||
Consumer [Member] | Auto Loans [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 62,837 | 62,837 | |||
2022 | 153,187 | 153,187 | |||
2021 | 63,427 | 63,427 | |||
2020 | 22,721 | 22,721 | |||
2019 | 11,237 | 11,237 | |||
Prior | 4,717 | 4,717 | |||
Revolving loans | 0 | 0 | |||
Loans | 318,126 | 318,126 | 321,476 | ||
Current Period Gross Charge-offs [Abstract] | |||||
2023 | 21 | ||||
2022 | 181 | ||||
2021 | 137 | ||||
2020 | 0 | ||||
2019 | 28 | ||||
Prior | 44 | ||||
Revolving loans | 0 | ||||
Current period gross charge-offs | 157 | 69 | 411 | 155 | |
Consumer [Member] | Auto Loans [Member] | Pass [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 62,837 | 62,837 | |||
2022 | 153,144 | 153,144 | |||
2021 | 63,162 | 63,162 | |||
2020 | 22,673 | 22,673 | |||
2019 | 11,154 | 11,154 | |||
Prior | 4,659 | 4,659 | |||
Revolving loans | 0 | 0 | |||
Loans | 317,629 | 317,629 | 321,158 | ||
Consumer [Member] | Auto Loans [Member] | Special Mention [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 0 | 0 | 0 | ||
Consumer [Member] | Auto Loans [Member] | Substandard [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 43 | 43 | |||
2021 | 265 | 265 | |||
2020 | 48 | 48 | |||
2019 | 83 | 83 | |||
Prior | 58 | 58 | |||
Revolving loans | 0 | 0 | |||
Loans | 497 | 497 | 318 | ||
Consumer [Member] | Auto Loans [Member] | Doubtful [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 0 | 0 | 0 | ||
Consumer [Member] | Other Consumer [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 14,830 | 14,830 | |||
2022 | 34,475 | 34,475 | |||
2021 | 13,596 | 13,596 | |||
2020 | 4,543 | 4,543 | |||
2019 | 3,352 | 3,352 | |||
Prior | 7,346 | 7,346 | |||
Revolving loans | 1,653 | 1,653 | |||
Loans | 79,795 | 79,795 | 81,308 | ||
Current Period Gross Charge-offs [Abstract] | |||||
2023 | 183 | ||||
2022 | 159 | ||||
2021 | 23 | ||||
2020 | 7 | ||||
2019 | 37 | ||||
Prior | 33 | ||||
Revolving loans | 0 | ||||
Current period gross charge-offs | 229 | 242 | 442 | 428 | |
Consumer [Member] | Other Consumer [Member] | Pass [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 14,830 | 14,830 | |||
2022 | 34,453 | 34,453 | |||
2021 | 13,564 | 13,564 | |||
2020 | 4,510 | 4,510 | |||
2019 | 3,316 | 3,316 | |||
Prior | 7,253 | 7,253 | |||
Revolving loans | 1,653 | 1,653 | |||
Loans | 79,579 | 79,579 | 81,109 | ||
Consumer [Member] | Other Consumer [Member] | Special Mention [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 0 | 0 | 0 | ||
Consumer [Member] | Other Consumer [Member] | Substandard [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 22 | 22 | |||
2021 | 32 | 32 | |||
2020 | 33 | 33 | |||
2019 | 36 | 36 | |||
Prior | 93 | 93 | |||
Revolving loans | 0 | 0 | |||
Loans | 216 | 216 | 199 | ||
Consumer [Member] | Other Consumer [Member] | Doubtful [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 0 | 0 | 0 | ||
Construction [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 24,337 | 24,337 | |||
2022 | 89,774 | 89,774 | |||
2021 | 21,144 | 21,144 | |||
2020 | 289 | 289 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 9,869 | 9,869 | |||
Loans | 145,413 | 145,413 | 153,519 | ||
Current Period Gross Charge-offs [Abstract] | |||||
2023 | 0 | ||||
2022 | 0 | ||||
2021 | 272 | ||||
2020 | 0 | ||||
2019 | 0 | ||||
Prior | 0 | ||||
Revolving loans | 0 | ||||
Current period gross charge-offs | 0 | $ 166 | 272 | $ 166 | |
Construction [Member] | Pass [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 24,337 | 24,337 | |||
2022 | 89,551 | 89,551 | |||
2021 | 21,144 | 21,144 | |||
2020 | 289 | 289 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 9,869 | 9,869 | |||
Loans | 145,190 | 145,190 | 151,995 | ||
Construction [Member] | Special Mention [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 0 | 0 | 0 | ||
Construction [Member] | Substandard [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 223 | 223 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | 223 | 223 | 1,524 | ||
Construction [Member] | Doubtful [Member] | |||||
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract] | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving loans | 0 | 0 | |||
Loans | $ 0 | $ 0 | $ 0 |
LOANS HELD FOR INVESTMENT, Amortized Cost Basis of Loans Modified to Borrowers Experiencing Financial Difficulty (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2023 |
|
Financing Receivable Modification [Abstract] | ||
Total class of financing receivable | 0.20% | 0.28% |
Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 125 | $ 125 |
Term Extension [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 5,280 | 7,500 |
Term Extension and Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 631 | 631 |
Term Extension and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 70 | 113 |
Payment Delay and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 13 | 13 |
Payment Delay, Term Extension, and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 52 | $ 52 |
Commercial Real Estate [Member] | ||
Financing Receivable Modification [Abstract] | ||
Total class of financing receivable | 0.01% | 0.01% |
Commercial Real Estate [Member] | Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Commercial Real Estate [Member] | Term Extension [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Commercial Real Estate [Member] | Term Extension and Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 96 | 96 |
Commercial Real Estate [Member] | Term Extension and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Commercial Real Estate [Member] | Payment Delay and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Commercial Real Estate [Member] | Payment Delay, Term Extension, and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Commercial [Member] | Specialized [Member] | ||
Financing Receivable Modification [Abstract] | ||
Total class of financing receivable | 0.25% | 0.25% |
Commercial [Member] | Specialized [Member] | Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 118 | $ 118 |
Commercial [Member] | Specialized [Member] | Term Extension [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 690 | 690 |
Commercial [Member] | Specialized [Member] | Term Extension and Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 82 | 82 |
Commercial [Member] | Specialized [Member] | Term Extension and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Commercial [Member] | Specialized [Member] | Payment Delay and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Commercial [Member] | Specialized [Member] | Payment Delay, Term Extension, and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Commercial [Member] | General [Member] | ||
Financing Receivable Modification [Abstract] | ||
Total class of financing receivable | 0.60% | 0.97% |
Commercial [Member] | General [Member] | Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Commercial [Member] | General [Member] | Term Extension [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 2,744 | 4,726 |
Commercial [Member] | General [Member] | Term Extension and Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 453 | 453 |
Commercial [Member] | General [Member] | Term Extension and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 70 | 113 |
Commercial [Member] | General [Member] | Payment Delay and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Commercial [Member] | General [Member] | Payment Delay, Term Extension, and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 39 | $ 39 |
Consumer [Member] | 1-4 Family [Member] | ||
Financing Receivable Modification [Abstract] | ||
Total class of financing receivable | 0.04% | 0.08% |
Consumer [Member] | 1-4 Family [Member] | Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 7 | $ 7 |
Consumer [Member] | 1-4 Family [Member] | Term Extension [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 192 | 391 |
Consumer [Member] | 1-4 Family [Member] | Term Extension and Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Consumer [Member] | 1-4 Family [Member] | Term Extension and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Consumer [Member] | 1-4 Family [Member] | Payment Delay and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Consumer [Member] | 1-4 Family [Member] | Payment Delay, Term Extension, and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 13 | $ 13 |
Consumer [Member] | Auto Loans [Member] | ||
Financing Receivable Modification [Abstract] | ||
Total class of financing receivable | 0.00% | 0.01% |
Consumer [Member] | Auto Loans [Member] | Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Consumer [Member] | Auto Loans [Member] | Term Extension [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 39 |
Consumer [Member] | Auto Loans [Member] | Term Extension and Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Consumer [Member] | Auto Loans [Member] | Term Extension and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Consumer [Member] | Auto Loans [Member] | Payment Delay and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Consumer [Member] | Auto Loans [Member] | Payment Delay, Term Extension, and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Consumer [Member] | Other Consumer [Member] | ||
Financing Receivable Modification [Abstract] | ||
Total class of financing receivable | 0.02% | 0.02% |
Consumer [Member] | Other Consumer [Member] | Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Consumer [Member] | Other Consumer [Member] | Term Extension [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Consumer [Member] | Other Consumer [Member] | Term Extension and Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Consumer [Member] | Other Consumer [Member] | Term Extension and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Consumer [Member] | Other Consumer [Member] | Payment Delay and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 13 | 13 |
Consumer [Member] | Other Consumer [Member] | Payment Delay, Term Extension, and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Construction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Total class of financing receivable | 1.14% | 1.14% |
Construction [Member] | Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Construction [Member] | Term Extension [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 1,654 | 1,654 |
Construction [Member] | Term Extension and Payment Delay [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Construction [Member] | Term Extension and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Construction [Member] | Payment Delay and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | 0 | 0 |
Construction [Member] | Payment Delay, Term Extension, and Interest Rate Reduction [Member] | ||
Financing Receivable Modification [Abstract] | ||
Loans modified | $ 0 | $ 0 |
LOANS HELD FOR INVESTMENT, Performance of Loans Modified (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Performance of Loans Modified [Abstract] | ||
Loans modified | $ 0 | |
Nonaccrual | $ 1,708 | |
30-89 Days Past Due [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 226 | |
90 Days or More Past Due and Still Accruing [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 0 | |
Commercial Real Estate [Member] | ||
Performance of Loans Modified [Abstract] | ||
Nonaccrual | 0 | |
Commercial Real Estate [Member] | 30-89 Days Past Due [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 0 | |
Commercial Real Estate [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 0 | |
Commercial [Member] | Specialized [Member] | ||
Performance of Loans Modified [Abstract] | ||
Nonaccrual | 19 | |
Commercial [Member] | Specialized [Member] | 30-89 Days Past Due [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 0 | |
Commercial [Member] | Specialized [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 0 | |
Commercial [Member] | General [Member] | ||
Performance of Loans Modified [Abstract] | ||
Nonaccrual | 1,682 | |
Commercial [Member] | General [Member] | 30-89 Days Past Due [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 27 | |
Commercial [Member] | General [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 0 | |
Consumer [Member] | 1-4 Family Residential [Member] | ||
Performance of Loans Modified [Abstract] | ||
Nonaccrual | 7 | |
Consumer [Member] | 1-4 Family Residential [Member] | 30-89 Days Past Due [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 199 | |
Consumer [Member] | 1-4 Family Residential [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 0 | |
Consumer [Member] | Auto Loans [Member] | ||
Performance of Loans Modified [Abstract] | ||
Nonaccrual | 0 | |
Consumer [Member] | Auto Loans [Member] | 30-89 Days Past Due [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 0 | |
Consumer [Member] | Auto Loans [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 0 | |
Consumer [Member] | Other Consumer [Member] | ||
Performance of Loans Modified [Abstract] | ||
Nonaccrual | 0 | |
Consumer [Member] | Other Consumer [Member] | 30-89 Days Past Due [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 0 | |
Consumer [Member] | Other Consumer [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 0 | |
Construction [Member] | ||
Performance of Loans Modified [Abstract] | ||
Nonaccrual | 0 | |
Construction [Member] | 30-89 Days Past Due [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | 0 | |
Construction [Member] | 90 Days or More Past Due and Still Accruing [Member] | ||
Performance of Loans Modified [Abstract] | ||
Loans modified | $ 0 |
LOANS HELD FOR INVESTMENT, Financial Effects of Loan Modifications (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2023 |
|
Financial Effects of Loan Modifications [Abstract] | ||
Weighted-average interest rate reduction | 2.50% | 1.91% |
Weighted-average term extension | 729 months | 542 months |
Principal Forgiveness [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Commercial Real Estate [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Weighted-average interest rate reduction | 0.00% | 0.00% |
Weighted-average term extension | 72 months | 72 months |
Commercial Real Estate [Member] | Principal Forgiveness [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Commercial [Member] | Specialized [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Weighted-average interest rate reduction | 0.00% | 0.00% |
Weighted-average term extension | 13 months | 13 months |
Commercial [Member] | Specialized [Member] | Principal Forgiveness [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Commercial [Member] | General [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Weighted-average interest rate reduction | 2.50% | 1.81% |
Weighted-average term extension | 1320 months | 835 months |
Commercial [Member] | General [Member] | Principal Forgiveness [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Consumer [Member] | 1-4 Family Residential [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Weighted-average interest rate reduction | 0.25% | 0.25% |
Weighted-average term extension | 16 months | 13 months |
Consumer [Member] | 1-4 Family Residential [Member] | Principal Forgiveness [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Consumer [Member] | Auto Loans [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Weighted-average interest rate reduction | 0.00% | 0.00% |
Weighted-average term extension | 15 months | |
Consumer [Member] | Auto Loans [Member] | Principal Forgiveness [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Consumer [Member] | Other Consumer [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Weighted-average interest rate reduction | 4.75% | 4.75% |
Consumer [Member] | Other Consumer [Member] | Principal Forgiveness [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Loans modified | $ 0 | $ 0 |
Construction [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Weighted-average interest rate reduction | 0.00% | 0.00% |
Weighted-average term extension | 11 months | 11 months |
Construction [Member] | Principal Forgiveness [Member] | ||
Financial Effects of Loan Modifications [Abstract] | ||
Loans modified | $ 0 | $ 0 |
LOANS HELD FOR INVESTMENT, Loans Modifications (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
|
LOANS HELD FOR INVESTMENT [Abstract] | |||
Loans modified for borrowers experiencing financial difficulty that subsequently defaulted | $ 0 | $ 0 | |
Loans modified as TDR | $ 0 |
GOODWILL AND INTANGIBLES (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|---|
Goodwill [Abstract] | |||
Goodwill | $ 19,315 | $ 19,508 | |
Amortized Intangible Assets [Abstract] | |||
Other intangible assets, net | 2,834 | 4,349 | |
Windmark [Member] | |||
Amortized Intangible Assets [Abstract] | |||
Removal of goodwill | $ 193 | ||
Removal of other intangible assets, net of accumulated amortization | $ 942 | ||
Core Deposit Intangible [Member] | |||
Amortized Intangible Assets [Abstract] | |||
Other intangible assets, gross | 6,679 | 6,679 | |
Less: Accumulated amortization | (3,845) | (3,420) | |
Other intangible assets, net | 2,834 | 3,259 | |
Other Intangibles [Member] | |||
Amortized Intangible Assets [Abstract] | |||
Other intangible assets, gross | 0 | 2,972 | |
Less: Accumulated amortization | 0 | (1,882) | |
Other intangible assets, net | $ 0 | $ 1,090 |
MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Mortgage Servicing Rights Asset [Roll Forward] | |||||
Beginning balance | $ 25,795 | $ 25,425 | $ 27,474 | $ 19,700 | $ 19,700 |
Additions | 463 | 930 | 734 | 2,180 | |
Valuation adjustment | 400 | 1,150 | (1,550) | 5,625 | |
Ending balance | 26,658 | $ 27,505 | 26,658 | $ 27,505 | 27,474 |
Mortgage Servicing Rights Other Information [Abstract] | |||||
Mortgage loans serviced for others | $ 2,025,210 | $ 2,025,210 | $ 2,046,490 | ||
Mortgage servicing rights asset as a percentage of serviced mortgage loans | 1.32% | 1.32% | 1.34% | ||
Key Assumptions Used in Measuring Fair Value of Mortgage Servicing Rights [Abstract] | |||||
Weighted average constant prepayment rate | 7.29% | 7.47% | |||
Weighted average discount rate | 9.65% | 9.15% | |||
Weighted average life in years | 7 years 11 months 19 days | 7 years 10 months 28 days |
BORROWING ARRANGEMENTS, Subordinated Debt Securities (Details) - USD ($) $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2023 |
Dec. 31, 2022 |
Sep. 29, 2020 |
Dec. 31, 2018 |
|
Subordinated Debt Securities [Abstract] | ||||
Subordinated debt | $ 76,054 | $ 75,961 | ||
Subordinated Debt [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Debt instrument, face amount | 76,500 | 76,500 | ||
Debt issuance cost | 418 | 511 | ||
Subordinated debt | $ 76,100 | $ 76,000 | ||
Subordinated Debt [Member] | Subordinated Debt Securities Issued in December 2018 [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Debt instrument, face amount | $ 26,500 | |||
Subordinated Debt [Member] | Subordinated Debt Securities Issued in December 2018 [Member] | Debt Securities One [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Debt instrument, face amount | $ 12,400 | |||
Debt instrument, maturity date | Dec. 31, 2028 | |||
Debt instrument, weighted average interest rate | 5.74% | |||
Debt instrument, period of fixed interest rate | 5 years | |||
Debt instrument, variable interest rate, floor | 4.00% | |||
Debt instrument, variable interest rate, ceiling | 7.50% | |||
Subordinated Debt [Member] | Subordinated Debt Securities Issued in December 2018 [Member] | Debt Securities One [Member] | Maximum [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Remaining maturity period during which debt can be called | 5 years | |||
Subordinated Debt [Member] | Subordinated Debt Securities Issued in December 2018 [Member] | Debt Securities Two [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Debt instrument, face amount | $ 14,100 | |||
Debt instrument, maturity date | Dec. 31, 2030 | |||
Debt instrument, weighted average interest rate | 6.41% | |||
Debt instrument, period of fixed interest rate | 7 years | |||
Debt instrument, variable interest rate, floor | 4.00% | |||
Debt instrument, variable interest rate, ceiling | 7.50% | |||
Subordinated Debt [Member] | Subordinated Debt Securities Issued in December 2018 [Member] | Debt Securities Two [Member] | Maximum [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Remaining maturity period during which debt can be called | 5 years | |||
Subordinated Debt [Member] | Subordinated Debt Securities Issued in September 29, 2020 [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Debt instrument, face amount | $ 50,000 | |||
Debt issuance cost | $ 926 | |||
Debt instrument, maturity date | Sep. 30, 2030 | |||
Debt instrument, weighted average interest rate | 4.50% | |||
Debt instrument, period of fixed interest rate | 5 years | |||
Subordinated Debt [Member] | Subordinated Debt Securities Issued in September 29, 2020 [Member] | SOFR [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Term of variable rate | 3 months | |||
Basis spread on variable rate | 4.38% | |||
Subordinated Debt [Member] | Subordinated Debt Securities Issued in September 29, 2020 [Member] | Maximum [Member] | ||||
Subordinated Debt Securities [Abstract] | ||||
Remaining maturity period during which debt can be called | 5 years |
BORROWING ARRANGEMENTS, Notes Payable and Other Borrowings (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Federal Home Loan Bank Advance [Member] | Federal Home Loan Bank of Dallas [Member] | City Bank [Member] | ||
Detail of Advances from FHLB [Abstract] | ||
Original amount of advances | $ 0 | $ 0 |
STOCK-BASED COMPENSATION, Equity Incentive Plan (Details) - 2019 Equity Incentive Plan [Member] |
Mar. 06, 2019
shares
|
---|---|
Equity Incentive Plan [Abstract] | |
Maximum aggregate number of shares of common stock that may be issued (in shares) | 2,300,000 |
Maximum [Member] | |
Equity Incentive Plan [Abstract] | |
Annual increase in number of shares that may be issued | 3.00% |
STOCK-BASED COMPENSATION, Stock Options Activity (Details) - 2019 Equity Incentive Plan [Member] - Stock Option [Member] $ / shares in Units, $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
$ / shares
shares
| |
Number of Shares [Roll Forward] | |
Outstanding at beginning of year (in shares) | shares | 1,354,189 |
Granted (in shares) | shares | 47,816 |
Exercised (in shares) | shares | (37,720) |
Forfeited (in shares) | shares | (1,125) |
Expired (in shares) | shares | (2,730) |
Balance at end of period (in shares) | shares | 1,360,430 |
Exercisable at end of period (in shares) | shares | 1,144,131 |
Vested at end of period (in shares) | shares | 1,144,131 |
Weighted-Average Exercise Price [Abstract] | |
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 16.11 |
Granted (in dollars per share) | $ / shares | 27.46 |
Exercised (in dollars per share) | $ / shares | 15.17 |
Forfeited (in dollars per share) | $ / shares | 20.19 |
Expired (in dollars per share) | $ / shares | 17.47 |
Balance at end of period (in dollars per share) | $ / shares | 16.57 |
Exercisable at end of period (in dollars per share) | $ / shares | 15.32 |
Vested at end of period (in dollars per share) | $ / shares | $ 15.32 |
Weighted Average Remaining Contractual Life in Years [Abstract] | |
Options Outstanding | 5 years 7 months 2 days |
Exercisable at end of period | 4 years 9 months 29 days |
Vested at end of period | 4 years 9 months 29 days |
Aggregate Intrinsic Value [Abstract] | |
Outstanding at beginning of year | $ | $ 8,973 |
Granted | $ | 0 |
Exercised | $ | (277) |
Forfeited | $ | (14) |
Expired | $ | (3) |
Balance at end of period | $ | 8,679 |
Exercisable at end of period | $ | 8,329 |
Vested at end of period | $ | $ 8,329 |
STOCK-BASED COMPENSATION, Fair Value Assumptions (Details) - Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Summary of Assumptions Used to Calculate Fair Value of Awards [Abstract] | ||
Expected dividend yield | 1.30% | |
Weighted average grant date fair value (in dollars per share) | $ 10.26 | $ 10.54 |
Minimum [Member] | ||
Summary of Assumptions Used to Calculate Fair Value of Awards [Abstract] | ||
Expected volatility | 39.13% | 40.20% |
Expected dividend yield | 1.74% | |
Expected term | 6 years 1 month 6 days | 6 years 1 month 6 days |
Risk-free interest rate | 3.91% | 1.56% |
Maximum [Member] | ||
Summary of Assumptions Used to Calculate Fair Value of Awards [Abstract] | ||
Expected volatility | 39.68% | 40.29% |
Expected dividend yield | 1.90% | |
Expected term | 6 years 3 months 18 days | 6 years 3 months 18 days |
Risk-free interest rate | 3.98% | 1.95% |
2019 Equity Incentive Plan [Member] | ||
Equity Incentive Plan [Abstract] | ||
Intrinsic value of options exercised | $ 313 | $ 74 |
STOCK-BASED COMPENSATION, Restricted Stock Awards and Units (Details) - Restricted Stock Units [Member] - USD ($) $ / shares in Units, $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Number of Shares [Roll Forward] | ||
Outstanding at beginning of year (in shares) | 84,342 | |
Granted (in shares) | 85,127 | |
Vested (in shares) | (38,141) | |
Forfeited (in shares) | (4,050) | |
Balance at ending of period (in shares) | 127,278 | |
Weighted-Average Exercise Price [Abstract] | ||
Outstanding at beginning of year (in dollars per share) | $ 26.76 | |
Granted (in dollars per share) | 25.33 | |
Vested (in dollars per share) | 24.4 | |
Forfeited (in dollars per share) | 25.04 | |
Balance at ending of period (in dollars per share) | $ 26.56 | |
Unrecognized compensation cost | $ 4,000 | |
Weighted average remaining period, recognition of compensation cost | 1 year 8 months 23 days | |
Fair value of restricted stock units vested | $ 930 | $ 488 |
Minimum [Member] | ||
Weighted-Average Exercise Price [Abstract] | ||
Award vesting period | 1 year | |
Maximum [Member] | ||
Weighted-Average Exercise Price [Abstract] | ||
Award vesting period | 4 years |
OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
FHLB Letters of Credit [Abstract] | ||
Letters of credit outstanding balance | $ 0 | $ 0 |
Commitments to Grant Loans and Unfunded Commitments Under Lines of Credit [Member] | ||
Financial instruments with off-balance-sheet risk [Abstract] | ||
Financial instruments whose contract amounts represent credit risk outstanding | 637,400 | 682,296 |
Standby Letters of Credit [Member] | ||
Financial instruments with off-balance-sheet risk [Abstract] | ||
Financial instruments whose contract amounts represent credit risk outstanding | $ 12,779 | $ 13,864 |
LEASES (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023
USD ($)
Lease
|
Jun. 30, 2022
USD ($)
|
Jun. 30, 2023
USD ($)
Lease
|
Jun. 30, 2022
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
Lessee Arrangements [Abstract] | |||||
Finance leases | $ 0 | $ 0 | $ 0 | ||
Balance Sheet Components of Leases [Abstract] | |||||
Operating lease right of use assets (included in Other assets) | $ 8,926 | $ 8,926 | $ 7,938 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | Other assets | ||
Operating lease liabilities (included in Accrued expenses and other liabilities) | $ 9,863 | $ 9,863 | $ 8,897 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other liabilities | Accrued expenses and other liabilities | Accrued expenses and other liabilities | ||
Operating lease costs, including short-term lease costs | $ 954 | $ 747 | $ 1,700 | $ 1,411,000 | |
Cash paid for amounts included in the measurement of lease liabilities [Abstract] | |||||
Operating cash flows used in operating leases | 546 | 492 | 1,030 | 971 | |
Right-of-use assets obtained in exchange for new lease obligations [Abstract] | |||||
Operating leases | $ 1,215 | $ 0 | $ 2,032 | $ 0 | |
Weighted average remaining lease term | 10 years 2 months 19 days | 10 years 2 months 19 days | 9 years 9 months 29 days | ||
Weighted average discount rate | 5.38% | 5.38% | 4.65% | ||
Maturities of Operating Lease Liabilities [Abstract] | |||||
2023 | $ 955 | $ 955 | |||
2024 | 1,656 | 1,656 | |||
2025 | 1,321 | 1,321 | |||
2026 | 1,259 | 1,259 | |||
2027 | 1,209 | 1,209 | |||
Thereafter | 6,642 | 6,642 | |||
Total minimum lease payments | 13,042 | 13,042 | |||
Less: Amount representing interest | (3,179) | (3,179) | |||
Lease liabilities | $ 9,863 | $ 9,863 | $ 8,897 | ||
Leases Not yet Commenced [Abstract] | |||||
Number of additional operating leases that have not yet commenced | Lease | 0 | 0 | |||
Maximum [Member] | |||||
Lessee Arrangements [Abstract] | |||||
Termination period for leases | 1 year |
CAPITAL AND REGULATORY MATTERS (Details) $ in Thousands |
Jun. 30, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
---|---|---|
Consolidated [Member] | ||
Total Capital to Risk Weighted Assets [Abstract] | ||
Actual, Amount | $ 597,335 | $ 559,094 |
Actual, Ratio | 0.1675 | 0.1658 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 374,384 | $ 354,045 |
Minimum Required Under BASEL III Fully Phased-In, Ratio | 0.105 | 0.105 |
Tier I Capital to Risk Weighted Assets [Abstract] | ||
Actual, Amount | $ 476,708 | $ 443,265 |
Actual, Ratio | 0.1337 | 0.1315 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 303,073 | $ 286,608 |
Minimum Required Under BASEL III Fully Phased-In, Ratio | 0.085 | 0.085 |
Common Equity Tier 1 to Risk Weighted Assets [Abstract] | ||
Actual, Amount | $ 431,708 | $ 398,265 |
Actual, Ratio | 0.1211 | 0.1181 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 249,589 | $ 236,030 |
Minimum Required Under BASEL III Fully Phased-In, Ratio | 0.07 | 0.07 |
Tier I Capital to Average Assets [Abstract] | ||
Actual, Amount | $ 476,706 | $ 443,265 |
Actual, Ratio | 0.1167 | 0.1103 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 164,207 | $ 161,662 |
Minimum Required Under BASEL III Fully Phased-In, Ratio | 0.04 | 0.04 |
City Bank [Member] | ||
Total Capital to Risk Weighted Assets [Abstract] | ||
Actual, Amount | $ 492,582 | $ 454,427 |
Actual, Ratio | 0.1373 | 0.1348 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 376,681 | $ 353,967 |
Minimum Required Under BASEL III Fully Phased-In, Ratio | 0.105 | 0.105 |
To Be Well Capitalized Under Prompt Corrective Action Framework, Amount | $ 358,744 | $ 337,112 |
To Be Well Capitalized Under Prompt Corrective Action Framework, Ratio | 0.10 | 0.10 |
Tier I Capital to Risk Weighted Assets [Abstract] | ||
Actual, Amount | $ 447,754 | $ 414,559 |
Actual, Ratio | 0.1248 | 0.123 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 304,932 | $ 286,545 |
Minimum Required Under BASEL III Fully Phased-In, Ratio | 0.085 | 0.085 |
To Be Well Capitalized Under Prompt Corrective Action Framework, Amount | $ 286,995 | $ 269,689 |
To Be Well Capitalized Under Prompt Corrective Action Framework, Ratio | 0.08 | 0.08 |
Common Equity Tier 1 to Risk Weighted Assets [Abstract] | ||
Actual, Amount | $ 447,754 | $ 414,559 |
Actual, Ratio | 0.1248 | 0.123 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 251,121 | $ 235,978 |
Minimum Required Under BASEL III Fully Phased-In, Ratio | 0.07 | 0.07 |
To Be Well Capitalized Under Prompt Corrective Action Framework, Amount | $ 233,183 | $ 219,122 |
To Be Well Capitalized Under Prompt Corrective Action Framework, Ratio | 0.065 | 0.065 |
Tier I Capital to Average Assets [Abstract] | ||
Actual, Amount | $ 447,754 | $ 414,559 |
Actual, Ratio | 0.1097 | 0.1032 |
Minimum Required Under BASEL III Fully Phased-In, Amount | $ 164,207 | $ 161,574 |
Minimum Required Under BASEL III Fully Phased-In, Ratio | 0.04 | 0.04 |
To Be Well Capitalized Under Prompt Corrective Action Framework, Amount | $ 204,152 | $ 200,774 |
To Be Well Capitalized Under Prompt Corrective Action Framework, Ratio | 0.05 | 0.05 |
DERIVATIVES, Fair Value Hedges in Consolidated Balance Sheets (Details) - Fair Value Hedging [Member] - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Interest Rate Swaps [Member] | Other Liabilities [Member] | |||||
Fair value hedges included in Consolidated Balance Sheets [Abstract] | |||||
Derivative liability, notional amount | $ 0 | $ 0 | $ 0 | ||
Derivative liability, fair value | 0 | 0 | 0 | ||
Interest Rate Swaps [Member] | Other Assets [Member] | |||||
Fair value hedges included in Consolidated Balance Sheets [Abstract] | |||||
Derivative asset, notional amount | 11,803 | 11,803 | 9,493 | ||
Derivative asset, fair value | 508 | 508 | 482 | ||
Interest Rate Swaps [Member] | Interest Income [Member] | |||||
Changes in fair value hedges included in Consolidated Statements of Comprehensive Income [Abstract] | |||||
Interest rate swaps - fair value hedges | 26 | $ 167 | 26 | $ 625 | |
Fair value hedge ineffectiveness | (25) | (170) | (25) | (633) | |
Interest Rate Swaps [Member] | Other Noninterest Expense [Member] | |||||
Changes in fair value hedges included in Consolidated Statements of Comprehensive Income [Abstract] | |||||
Interest rate swaps - fair value hedges | 1,844 | 3,429 | (810) | 10,178 | |
Fair value hedge ineffectiveness | (1,866) | $ (3,450) | 771 | $ (10,349) | |
Cash Flow Swaps [Member] | Other Liabilities [Member] | |||||
Fair value hedges included in Consolidated Balance Sheets [Abstract] | |||||
Derivative liability, notional amount | 0 | 0 | 0 | ||
Derivative liability, fair value | 0 | 0 | 0 | ||
Cash Flow Swaps [Member] | Other Assets [Member] | |||||
Fair value hedges included in Consolidated Balance Sheets [Abstract] | |||||
Derivative asset, notional amount | 123,760 | 123,760 | 123,760 | ||
Derivative asset, fair value | $ 19,315 | $ 19,315 | $ 20,125 |
DERIVATIVES, Mortgage Banking Derivatives (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Other Assets [Member] | Interest Rate Swap [Member] | |||||
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract] | |||||
Cash collateral advanced to offset liability position | $ 1,100 | $ 1,100 | |||
Other Liabilities [Member] | Interest Rate Swap [Member] | |||||
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract] | |||||
Cash collateral received to offset asset derivative positions | 17,300 | 17,300 | |||
Mortgage Forward Contracts [Member] | Other Assets [Member] | |||||
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract] | |||||
Cash collateral advanced to offset liability position | 440 | 440 | |||
Mortgage Banking [Member] | Other Assets [Member] | |||||
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract] | |||||
Derivative asset, notional amount | 53,816 | 53,816 | $ 50,848 | ||
Derivative asset, fair value | 550 | 550 | 555 | ||
Mortgage Banking [Member] | Other Liabilities [Member] | |||||
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract] | |||||
Derivative liability, notional amount | 6,296 | 6,296 | 5,615 | ||
Derivative liability, fair value | 34 | 34 | 128 | ||
Mortgage Banking [Member] | Forward Contracts [Member] | Other Assets [Member] | |||||
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract] | |||||
Derivative asset, notional amount | 21,000 | 21,000 | 23,500 | ||
Derivative asset, fair value | 78 | 78 | 186 | ||
Mortgage Banking [Member] | Forward Contracts [Member] | Other Liabilities [Member] | |||||
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract] | |||||
Derivative liability, notional amount | 6,296 | 6,296 | 5,615 | ||
Derivative liability, fair value | 34 | 34 | 128 | ||
Mortgage Banking [Member] | Forward Contracts [Member] | Net Gain (Loss) on Sales of Loans [Member] | |||||
Derivative instruments impact on results of operations [Abstract] | |||||
Gain (loss) on mortgage banking derivatives | 375 | $ 166 | 94 | $ (926) | |
Mortgage Banking [Member] | Interest Rate Lock Commitments [Member] | Other Assets [Member] | |||||
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract] | |||||
Derivative asset, notional amount | 32,816 | 32,816 | 27,348,000 | ||
Derivative asset, fair value | 472 | 472 | 369 | ||
Mortgage Banking [Member] | Interest Rate Lock Commitments [Member] | Other Liabilities [Member] | |||||
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract] | |||||
Derivative liability, notional amount | 0 | 0 | 0 | ||
Derivative liability, fair value | 0 | 0 | $ 0 | ||
Mortgage Banking [Member] | Interest Rate Lock Commitments [Member] | Net Gain (Loss) on Sales of Loans [Member] | |||||
Derivative instruments impact on results of operations [Abstract] | |||||
Gain (loss) on mortgage banking derivatives | $ (428) | $ (940) | $ (5) | $ 117 |
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
EARNINGS PER SHARE [Abstract] | ||||
Net income | $ 29,683 | $ 15,883 | $ 38,927 | $ 30,161 |
Weighted average common shares outstanding - basic (in shares) | 17,048,432 | 17,490,706 | 17,047,578 | 17,602,798 |
Effect of dilutive securities [Abstract] | ||||
Stock-based compensation awards (in shares) | 338,083 | 529,842 | 390,779 | 609,638 |
Weighted average common shares outstanding - diluted (in shares) | 17,386,515 | 18,020,548 | 17,438,357 | 18,212,436 |
Basic earnings per share (in dollars per share) | $ 1.74 | $ 0.91 | $ 2.28 | $ 1.71 |
Diluted earnings per share (in dollars per share) | $ 1.71 | $ 0.88 | $ 2.23 | $ 1.66 |
FAIR VALUE DISCLOSURES, Assets (Liabilities) Measured at Fair Value on Recurring and Non-Recurring Basis (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|---|---|---|---|
Securities available for sale [Abstract] | ||||||
Securities available for sale | $ 628,093 | $ 701,711 | ||||
Mortgage servicing rights | 26,658 | $ 25,795 | 27,474 | $ 27,505 | $ 25,425 | $ 19,700 |
State and Municipal [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 180,395 | 225,055 | ||||
Residential Mortgage-backed Securities [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 310,187 | 328,845 | ||||
Commercial Mortgage-backed Securities [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 41,218 | 41,967 | ||||
Collateralized Mortgage Obligations [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 67,595 | 75,638 | ||||
Other Securities [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 10,913 | 11,112 | ||||
Recurring [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Asset-backed and other amortizing securities | 17,785 | 19,094 | ||||
Loans held for sale (mandatory) | 15,516 | 10,038 | ||||
Mortgage servicing rights | 26,658 | 27,474 | ||||
Asset derivatives | 20,373 | 21,162 | ||||
Liability derivatives | (34) | (128) | ||||
Recurring [Member] | State and Municipal [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 180,395 | 225,055 | ||||
Recurring [Member] | Residential Mortgage-backed Securities [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 310,187 | 328,845 | ||||
Recurring [Member] | Commercial Mortgage-backed Securities [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 41,218 | 41,967 | ||||
Recurring [Member] | Collateralized Mortgage Obligations [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 67,595 | 75,638 | ||||
Recurring [Member] | Other Securities [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 10,913 | 11,112 | ||||
Recurring [Member] | Level 1 [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Asset-backed and other amortizing securities | 0 | 0 | ||||
Loans held for sale (mandatory) | 0 | 0 | ||||
Mortgage servicing rights | 0 | 0 | ||||
Asset derivatives | 0 | 0 | ||||
Liability derivatives | 0 | 0 | ||||
Recurring [Member] | Level 1 [Member] | State and Municipal [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 0 | 0 | ||||
Recurring [Member] | Level 1 [Member] | Residential Mortgage-backed Securities [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 0 | 0 | ||||
Recurring [Member] | Level 1 [Member] | Commercial Mortgage-backed Securities [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 0 | 0 | ||||
Recurring [Member] | Level 1 [Member] | Collateralized Mortgage Obligations [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 0 | 0 | ||||
Recurring [Member] | Level 1 [Member] | Other Securities [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 0 | 0 | ||||
Recurring [Member] | Level 2 [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Asset-backed and other amortizing securities | 17,785 | 19,094 | ||||
Loans held for sale (mandatory) | 15,516 | 10,038 | ||||
Mortgage servicing rights | 0 | 0 | ||||
Asset derivatives | 20,373 | 21,162 | ||||
Liability derivatives | (34) | (128) | ||||
Recurring [Member] | Level 2 [Member] | State and Municipal [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 180,395 | 225,055 | ||||
Recurring [Member] | Level 2 [Member] | Residential Mortgage-backed Securities [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 310,187 | 328,845 | ||||
Recurring [Member] | Level 2 [Member] | Commercial Mortgage-backed Securities [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 41,218 | 41,967 | ||||
Recurring [Member] | Level 2 [Member] | Collateralized Mortgage Obligations [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 67,595 | 75,638 | ||||
Recurring [Member] | Level 2 [Member] | Other Securities [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 10,913 | 11,112 | ||||
Recurring [Member] | Level 3 [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Asset-backed and other amortizing securities | 0 | 0 | ||||
Loans held for sale (mandatory) | 0 | 0 | ||||
Mortgage servicing rights | 26,658 | 27,474 | ||||
Asset derivatives | 0 | 0 | ||||
Liability derivatives | 0 | 0 | ||||
Recurring [Member] | Level 3 [Member] | State and Municipal [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 0 | 0 | ||||
Recurring [Member] | Level 3 [Member] | Residential Mortgage-backed Securities [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 0 | 0 | ||||
Recurring [Member] | Level 3 [Member] | Commercial Mortgage-backed Securities [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 0 | 0 | ||||
Recurring [Member] | Level 3 [Member] | Collateralized Mortgage Obligations [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 0 | 0 | ||||
Recurring [Member] | Level 3 [Member] | Other Securities [Member] | ||||||
Securities available for sale [Abstract] | ||||||
Securities available for sale | 0 | 0 | ||||
Non-recurring [Member] | ||||||
Assets measured at fair value on a non-recurring basis [Abstract] | ||||||
Loans held for investment | 18,098 | 4,821 | ||||
Non-recurring [Member] | Level 1 [Member] | ||||||
Assets measured at fair value on a non-recurring basis [Abstract] | ||||||
Loans held for investment | 0 | 0 | ||||
Non-recurring [Member] | Level 2 [Member] | ||||||
Assets measured at fair value on a non-recurring basis [Abstract] | ||||||
Loans held for investment | 0 | 0 | ||||
Non-recurring [Member] | Level 3 [Member] | ||||||
Assets measured at fair value on a non-recurring basis [Abstract] | ||||||
Loans held for investment | $ 18,098 | $ 4,821 |
FAIR VALUE DISCLOSURES, Fair Values of Assets Recorded on a Recurring Basis (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Fair Values of Assets Recorded on a Recurring Basis for which the Fair Value Option has been Elected [Abstract] | |||||
Aggregate fair value of loans held for sale for mandatory delivery | $ 15,516 | $ 15,516 | $ 10,038 | ||
Recurring [Member] | |||||
Fair Values of Assets Recorded on a Recurring Basis for which the Fair Value Option has been Elected [Abstract] | |||||
Gains or losses recorded attributable to changes in instrument-specific credit risk | 0 | 0 | |||
Aggregate fair value of loans held for sale for mandatory delivery | 15,500 | 15,500 | 10,000 | ||
Aggregate fair value of unpaid principal balance | 15,100 | 15,100 | 9,900 | ||
Fair value and unpaid principal balance difference amount | 372 | 372 | 163 | ||
Loans held for sale for mandatory delivery designated as nonaccrual | 0 | 0 | 0 | ||
Loans held for sale for mandatory delivery 90 days or more past due | 0 | 0 | $ 0 | ||
Impact of fair value options on noninterest income for loans held for sale for mandatory delivery | $ 9 | $ (471) | $ (252) | $ 1,700 |
FAIR VALUE DISCLOSURES, Quantitative Information about Recurring and Non-Recurring Level 3 Fair Value Measurements (Details) $ in Thousands |
Jun. 30, 2023
USD ($)
|
Mar. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
Jun. 30, 2022
USD ($)
|
Mar. 31, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
---|---|---|---|---|---|---|
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Mortgage servicing rights | $ 26,658 | $ 25,795 | $ 27,474 | $ 27,505 | $ 25,425 | $ 19,700 |
Non-recurring [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Loans held for investment | 18,098 | 4,821 | ||||
Non-recurring [Member] | Third Party Appraisals or Inspections [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Loans held for investment | $ 18,098 | $ 4,821 | ||||
Non-recurring [Member] | Third Party Appraisals or Inspections [Member] | Collateral Discounts and Selling Costs [Member] | Minimum [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Loans held for investment, measurement input | 0.20 | 0.20 | ||||
Non-recurring [Member] | Third Party Appraisals or Inspections [Member] | Collateral Discounts and Selling Costs [Member] | Maximum [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Loans held for investment, measurement input | 1 | 1 | ||||
Recurring [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Mortgage servicing rights | $ 26,658 | $ 27,474 | ||||
Recurring [Member] | Discounted Cash Flows [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Mortgage servicing rights | $ 26,658 | $ 27,474 | ||||
Recurring [Member] | Discounted Cash Flows [Member] | Constant Prepayment Rate [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Mortgage servicing rights, measurement input | 0.0729 | 0.0747 | ||||
Recurring [Member] | Discounted Cash Flows [Member] | Discount Rate [Member] | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||||||
Mortgage servicing rights, measurement input | 0.0965 | 0.0915 |
FAIR VALUE DISCLOSURES, Estimated Fair Values, and Related Carrying Amounts (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | $ 295,581 | $ 234,883 |
Loans held for investment, net | 2,935,926 | 2,708,793 |
Loans held for sale (best efforts) | 6,642 | 20,365 |
Accrued interest receivable | 15,917 | 16,432 |
Financial liabilities [Abstract] | ||
Deposits | 3,574,522 | 3,406,430 |
Accrued interest payable | 3,657 | 2,836 |
Junior subordinated deferrable interest debentures | 46,393 | 46,393 |
Subordinated debt securities | 76,054 | 75,961 |
Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 295,581 | 234,883 |
Loans held for investment, net | 2,868,428 | 2,662,609 |
Loans held for sale (best efforts) | 6,770 | 20,745 |
Accrued interest receivable | 15,917 | 16,432 |
Financial liabilities [Abstract] | ||
Deposits | 3,573,886 | 3,405,222 |
Accrued interest payable | 3,657 | 2,836 |
Junior subordinated deferrable interest debentures | 33,042 | 34,606 |
Subordinated debt securities | 66,910 | 70,835 |
Level 1 [Member] | Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 295,581 | 234,883 |
Loans held for investment, net | 0 | 0 |
Loans held for sale (best efforts) | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities [Abstract] | ||
Deposits | 0 | 0 |
Accrued interest payable | 0 | 0 |
Junior subordinated deferrable interest debentures | 0 | 0 |
Subordinated debt securities | 0 | 0 |
Level 2 [Member] | Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Loans held for investment, net | 0 | 0 |
Loans held for sale (best efforts) | 6,770 | 20,745 |
Accrued interest receivable | 15,917 | 16,432 |
Financial liabilities [Abstract] | ||
Deposits | 3,573,886 | 3,405,222 |
Accrued interest payable | 3,657 | 2,836 |
Junior subordinated deferrable interest debentures | 33,042 | 34,606 |
Subordinated debt securities | 66,910 | 70,835 |
Level 3 [Member] | Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Loans held for investment, net | 2,868,428 | 2,662,609 |
Loans held for sale (best efforts) | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities [Abstract] | ||
Deposits | 0 | 0 |
Accrued interest payable | 0 | 0 |
Junior subordinated deferrable interest debentures | 0 | 0 |
Subordinated debt securities | $ 0 | $ 0 |
SUBSEQUENT EVENTS (Details) - $ / shares |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jul. 20, 2023 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Dividends [Abstract] | |||||
Dividends declared per share (in dollars per share) | $ 0.13 | $ 0.11 | $ 0.26 | $ 0.22 | |
Subsequent Event [Member] | |||||
Dividends [Abstract] | |||||
Dividends declared date | Jul. 20, 2023 | ||||
Dividends declared per share (in dollars per share) | $ 0.13 | ||||
Dividends payable date | Aug. 14, 2023 | ||||
Dividends record date | Jul. 31, 2023 |
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