(State of other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
(Zip Code) | ||||||||||||||
(Address of principal executive offices) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
The | ||||||||
The |
Large accelerated filer | ☐ | ☒ | Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Page | ||||||||
PART I. FINANCIAL INFORMATION | ||||||||
Consolidated Balance Sheets at March 31, 2024 (Unaudited) and December 31, 2023 | ||||||||
Consolidated Statements of Income (Unaudited) for the three months ended March 31, 2024 and 2023 | ||||||||
Consolidated Statements of Comprehensive Income (Unaudited) for the three months ended March 31, 2024 and 2023 | ||||||||
Consolidated Statements of Shareholders’ Equity (Unaudited) for the three months ended March 31, 2024 and 2023 | ||||||||
Consolidated Statements of Cash Flows (Unaudited) for the three months ended March 31, 2024 and 2023 | ||||||||
Notes to Consolidated Financial Statements (Unaudited) | ||||||||
2019 Incentive Plan | The Amended and Restated Midland States Bancorp, Inc. 2019 Long-Term Incentive Plan | ||||
ACL | Allowance for credit losses on loans | ||||
ASU | Accounting Standards Update | ||||
BaaS | Banking-as-a-Service | ||||
Basel III Rule | Basel III regulatory capital reforms required by the Dodd-Frank Act | ||||
BHCA | Bank Holding Company Act of 1956, as amended | ||||
CBLR | Community Bank Leverage Ratio | ||||
CFPB | Consumer Financial Protection Bureau | ||||
CISA | Cybersecurity and Infrastructure Security Agency | ||||
COVID | Coronavirus Disease | ||||
CRA | Community Reinvestment Act | ||||
CRA Proposal | Joint Proposal to Strengthen and Modernize Community Reinvestment Act Regulations | ||||
CRE | Commercial Real Estate | ||||
CRE Guidance | Concentrations in Commercial Real Estate Lending, Sound Risk Management Practices guidance | ||||
DFPR | Illinois Department of Financial and Professional Regulation | ||||
DIF | Deposit Insurance Fund | ||||
EAD | Exposure at default | ||||
Exchange Act | Securities Exchange Act of 1934 | ||||
FASB | Financial Accounting Standards Board | ||||
FDIC | Federal Deposit Insurance Corporation | ||||
Federal Reserve | Board of Governors of the Federal Reserve System | ||||
FHA | Federal Housing Administration | ||||
FHLB | Federal Home Loan Bank | ||||
FinTech | Financial Technology | ||||
FRB | Federal Reserve Bank | ||||
GAAP | U.S. generally accepted accounting principles | ||||
Greensky | GreenSky, LLC | ||||
Illinois CRA | Illinois Community Reinvestment Act | ||||
LendingPoint | LendingPoint, LLC | ||||
LGD | Loss given default | ||||
LIBOR | London Inter-Bank Offered Rate | ||||
Midland Trust | Midland States Preferred Securities Trust | ||||
Nasdaq | Nasdaq Global Select Market | ||||
NII at Risk | Net Interest Income at Risk | ||||
OREO | Other real estate owned | ||||
PCAOB | Public Company Accounting Oversight Board | ||||
PCD | Purchased credit deteriorated | ||||
PD | Probability of default | ||||
Q-Factor | Qualitative factor | ||||
Regulatory Relief Act | Economic Growth, Regulatory Relief and Consumer Protection Act | ||||
SBA | Small Business Administration | ||||
SEC | U.S. Securities and Exchange Commission | ||||
SOFR | Secured Overnight Financing Rate | ||||
Treasury | U.S. Department of the Treasury | ||||
TDR | Troubled debt restructuring |
March 31, 2024 | December 31, 2023 | ||||||||||
(unaudited) | |||||||||||
Assets | |||||||||||
Cash and due from banks | $ | $ | |||||||||
Federal funds sold | |||||||||||
Cash and cash equivalents | |||||||||||
Investment securities available for sale, at fair value | |||||||||||
Equity securities, at fair value | |||||||||||
Loans | |||||||||||
Allowance for credit losses on loans | ( | ( | |||||||||
Total loans, net | |||||||||||
Loans held for sale | |||||||||||
Premises and equipment, net | |||||||||||
Other real estate owned | |||||||||||
Nonmarketable equity securities | |||||||||||
Accrued interest receivable | |||||||||||
Loan servicing rights, at lower of cost or fair value | |||||||||||
Goodwill | |||||||||||
Other intangible assets, net | |||||||||||
Company-owned life insurance | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Shareholders’ Equity | |||||||||||
Liabilities: | |||||||||||
Deposits: | |||||||||||
Noninterest-bearing demand deposits | $ | $ | |||||||||
Interest-bearing deposits | |||||||||||
Total deposits | |||||||||||
Short-term borrowings | |||||||||||
Federal Home Loan Bank advances and other borrowings | |||||||||||
Subordinated debt | |||||||||||
Trust preferred debentures | |||||||||||
Accrued interest payable and other liabilities | |||||||||||
Total liabilities | |||||||||||
Shareholders’ Equity: | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Capital surplus | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss, net of tax | ( | ( | |||||||||
Total shareholders’ equity | |||||||||||
Total liabilities and shareholders’ equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Interest income: | |||||||||||
Loans including fees: | |||||||||||
Taxable | $ | $ | |||||||||
Tax exempt | |||||||||||
Loans held for sale | |||||||||||
Investment securities: | |||||||||||
Taxable | |||||||||||
Tax exempt | |||||||||||
Nonmarketable equity securities | |||||||||||
Federal funds sold and cash investments | |||||||||||
Total interest income | |||||||||||
Interest expense: | |||||||||||
Deposits | |||||||||||
Short-term borrowings | |||||||||||
Federal Home Loan Bank advances and other borrowings | |||||||||||
Subordinated debt | |||||||||||
Trust preferred debentures | |||||||||||
Total interest expense | |||||||||||
Net interest income | |||||||||||
Provision for credit losses on loans | |||||||||||
Net interest income after provision for credit losses | |||||||||||
Noninterest income: | |||||||||||
Wealth management revenue | |||||||||||
Service charges on deposit accounts | |||||||||||
Interchange revenue | |||||||||||
Residential mortgage banking revenue | |||||||||||
Income on company-owned life insurance | |||||||||||
Loss on sales of investment securities, net | ( | ||||||||||
Other income | |||||||||||
Total noninterest income | |||||||||||
Noninterest expense: | |||||||||||
Salaries and employee benefits | |||||||||||
Occupancy and equipment | |||||||||||
Data processing | |||||||||||
FDIC insurance | |||||||||||
Professional services | |||||||||||
Marketing | |||||||||||
Communications | |||||||||||
Loan expense | |||||||||||
Amortization of intangible assets | |||||||||||
Other expense | |||||||||||
Total noninterest expense | |||||||||||
Income before income taxes | |||||||||||
Income taxes | |||||||||||
Net income | |||||||||||
Preferred dividends | |||||||||||
Net income available to common shareholders | $ | $ | |||||||||
Per common share data: | |||||||||||
Basic earnings per common share | $ | $ | |||||||||
Diluted earnings per common share | $ | $ | |||||||||
Weighted average common shares outstanding | |||||||||||
Weighted average diluted common shares outstanding |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net income | $ | $ | |||||||||
Other comprehensive income (loss): | |||||||||||
Investment securities available for sale: | |||||||||||
Unrealized (losses) gains that occurred during the period | ( | ||||||||||
Reclassification adjustment for realized net losses on sales of investment securities included in net income | |||||||||||
Income tax effect | ( | ||||||||||
Change in investment securities available for sale, net of tax | ( | ||||||||||
Cash flow hedges: | |||||||||||
Net unrealized derivative gains on cash flow hedges | |||||||||||
Income tax effect | ( | ( | |||||||||
Change in cash flow hedges, net of tax | |||||||||||
Other comprehensive (loss) income, net of tax | ( | ||||||||||
Total comprehensive income | $ | $ |
Preferred stock | Common stock | Capital surplus | Retained earnings | Accumulated other comprehensive (loss) income | Total shareholders' equity | ||||||||||||||||||||||||||||||
Balances, December 31, 2023 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Common dividends declared ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Preferred dividends declared ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Common stock repurchased | — | ( | ( | — | — | ( | |||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Issuance of common stock under employee benefit plans | — | — | — | — | |||||||||||||||||||||||||||||||
Balances, March 31, 2024 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Balances, December 31, 2022 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Common dividends declared ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Preferred dividends declared ( $ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Common stock repurchased | — | ( | ( | — | — | ( | |||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Issuance of common stock under employee benefit plans | — | — | — | — | |||||||||||||||||||||||||||||||
Balances, March 31, 2023 | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Provision for credit losses on loans | |||||||||||
Depreciation on premises and equipment | |||||||||||
Amortization of intangible assets | |||||||||||
Amortization of operating lease right-of-use asset | |||||||||||
Amortization of loan servicing rights | |||||||||||
Share-based compensation expense | |||||||||||
Increase in cash surrender value of life insurance | ( | ( | |||||||||
Investment securities accretion, net | ( | ( | |||||||||
Loss on sales of investment securities, net | |||||||||||
Gain on sales of other real estate owned | ( | ||||||||||
Origination of loans held for sale | ( | ( | |||||||||
Proceeds from sales of loans held for sale | |||||||||||
Gain on sale of loans held for sale | ( | ( | |||||||||
Net change in operating assets and liabilities: | |||||||||||
Accrued interest receivable | ( | ( | |||||||||
Other assets | |||||||||||
Accrued expenses and other liabilities | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Purchases of investment securities available for sale | ( | ( | |||||||||
Proceeds from sales of investment securities available for sale | |||||||||||
Maturities and payments on investment securities available for sale | |||||||||||
Purchases of equity securities | ( | ( | |||||||||
Net decrease (increase) in loans | ( | ||||||||||
Purchases of premises and equipment | ( | ( | |||||||||
Proceeds from sale of premises and equipment | |||||||||||
Purchases of nonmarketable equity securities | ( | ( | |||||||||
Proceeds from redemptions of nonmarketable equity securities | |||||||||||
Proceeds from sales of other real estate owned | |||||||||||
Net cash provided by (used in) investing activities | ( | ||||||||||
Cash flows from financing activities: | |||||||||||
Net increase in deposits | |||||||||||
Net increase (decrease) in short-term borrowings | ( | ||||||||||
Net (decrease) increase in short-term FHLB borrowings | ( | ||||||||||
Proceeds from long-term FHLB borrowings | |||||||||||
Payments made on long-term FHLB borrowings | ( | ( | |||||||||
Cash dividends paid on preferred stock | ( | ( | |||||||||
Cash dividends paid on common stock | ( | ( | |||||||||
Common stock repurchased | ( | ( | |||||||||
Proceeds from issuance of common stock under employee benefit plans | |||||||||||
Net cash (used in) provided by financing activities | ( | ||||||||||
Net increase (decrease) in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents: | |||||||||||
Beginning of period | |||||||||||
End of period | $ | $ | |||||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash payments for: | |||||||||||
Interest paid on deposits and borrowed funds | $ | $ | |||||||||
Income tax paid (net of refunds) | |||||||||||
Supplemental disclosures of noncash investing and financing activities: | |||||||||||
Transfer of loans to other real estate owned | |||||||||||
Right of use assets obtained in exchange for lease obligations | |||||||||||
March 31, 2024 | |||||||||||||||||||||||
(dollars in thousands) | Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||||||||
Investment securities available for sale | |||||||||||||||||||||||
U.S. government sponsored entities and U.S. agency securities | $ | $ | $ | $ | |||||||||||||||||||
Mortgage-backed securities - agency | |||||||||||||||||||||||
Mortgage-backed securities - non-agency | |||||||||||||||||||||||
State and municipal securities | |||||||||||||||||||||||
Collateralized loan obligations | |||||||||||||||||||||||
Corporate securities | |||||||||||||||||||||||
Total available for sale securities | $ | $ | $ | $ |
December 31, 2023 | |||||||||||||||||||||||
(dollars in thousands) | Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||||||||
Investment securities available for sale | |||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | $ | |||||||||||||||||||
U.S. government sponsored entities and U.S. agency securities | |||||||||||||||||||||||
Mortgage-backed securities - agency | |||||||||||||||||||||||
Mortgage-backed securities - non-agency | |||||||||||||||||||||||
State and municipal securities | |||||||||||||||||||||||
Collateralized loan obligations | |||||||||||||||||||||||
Corporate securities | |||||||||||||||||||||||
Total available for sale securities | $ | $ | $ | $ |
(dollars in thousands) | Amortized cost | Fair value | |||||||||
Investment securities available for sale | |||||||||||
Within one year | $ | $ | |||||||||
After one year through five years | |||||||||||
After five years through ten years | |||||||||||
After ten years | |||||||||||
Mortgage-backed securities | |||||||||||
Total available for sale securities | $ | $ |
Three Months Ended March 31, | |||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||
Investment securities available for sale | |||||||||||
Proceeds from sales | $ | $ | |||||||||
Gross realized gains on sales | |||||||||||
Gross realized losses on sales | ( |
March 31, 2024 | |||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or more | Total | |||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair value | Unrealized loss | Fair value | Unrealized loss | Fair value | Unrealized loss | |||||||||||||||||||||||||||||
Investment securities available for sale | |||||||||||||||||||||||||||||||||||
U.S. government sponsored entities and U.S. agency securities | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Mortgage-backed securities - agency | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities - non-agency | |||||||||||||||||||||||||||||||||||
State and municipal securities | |||||||||||||||||||||||||||||||||||
Collateralized loan obligations | |||||||||||||||||||||||||||||||||||
Corporate securities | |||||||||||||||||||||||||||||||||||
Total available for sale securities | $ | $ | $ | $ | $ | $ |
December 31, 2023 | |||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or more | Total | |||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair value | Unrealized loss | Fair value | Unrealized loss | Fair value | Unrealized loss | |||||||||||||||||||||||||||||
Investment securities available for sale | |||||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
U.S. government sponsored entities and U.S. agency securities | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities - agency | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities - non-agency | |||||||||||||||||||||||||||||||||||
State and municipal securities | |||||||||||||||||||||||||||||||||||
Collateralized loan obligations | |||||||||||||||||||||||||||||||||||
Corporate securities | |||||||||||||||||||||||||||||||||||
Total available for sale securities | $ | $ | $ | $ | $ | $ |
(dollars in thousands) | March 31, 2024 | December 31, 2023 | |||||||||
Commercial: | |||||||||||
Commercial | $ | $ | |||||||||
Commercial other | |||||||||||
Commercial real estate: | |||||||||||
Commercial real estate non-owner occupied | |||||||||||
Commercial real estate owner occupied | |||||||||||
Multi-family | |||||||||||
Farmland | |||||||||||
Construction and land development | |||||||||||
Total commercial loans | |||||||||||
Residential real estate: | |||||||||||
Residential first lien | |||||||||||
Other residential | |||||||||||
Consumer: | |||||||||||
Consumer | |||||||||||
Consumer other | |||||||||||
Lease financing | |||||||||||
Total loans | $ | $ |
Three Months Ended March 31, | |||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||
Beginning balance | $ | $ | |||||||||
Repayments and other reductions | ( | ( | |||||||||
Ending balance | $ | $ |
Commercial Loan Portfolio | Other Loan Portfolio | |||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Commercial | Commercial real estate | Construction and land development | Residential real estate | Consumer | Lease financing | Total | |||||||||||||||||||||||||||||||||||||
Changes in allowance for credit losses on loans for the three months ended March 31, 2024: | ||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Provision for credit losses on loans | ( | |||||||||||||||||||||||||||||||||||||||||||
Charge-offs | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Changes in allowance for credit losses on loans for the three months ended March 31, 2023: | ||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Provision for credit losses on loans | ( | |||||||||||||||||||||||||||||||||||||||||||
Charge-offs | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Risk state | Commercial loans risk rating | Consumer loans and equipment finance loans and leases days past due | ||||||||||||
1 | 0-5 | |||||||||||||
2 | 6 | |||||||||||||
3 | 7 | |||||||||||||
4 | 8 | |||||||||||||
Default | 9+ and nonaccrual |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | Nonaccrual with allowance | Nonaccrual with no allowance | Total nonaccrual | Nonaccrual with allowance | Nonaccrual with no allowance | Total nonaccrual | |||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||
Commercial | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Commercial other | |||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Commercial real estate non-owner occupied | |||||||||||||||||||||||||||||||||||
Commercial real estate owner occupied | |||||||||||||||||||||||||||||||||||
Multi-family | |||||||||||||||||||||||||||||||||||
Farmland | |||||||||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||||||||
Total commercial loans | |||||||||||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||||||
Residential first lien | |||||||||||||||||||||||||||||||||||
Other residential | |||||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||
Lease financing | |||||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ |
Type of Collateral | |||||||||||||||||
(dollars in thousands) | Real Estate | Equipment | Total | ||||||||||||||
March 31, 2024 | |||||||||||||||||
Commercial: | |||||||||||||||||
Commercial | $ | $ | $ | ||||||||||||||
Commercial other | |||||||||||||||||
Commercial real estate: | |||||||||||||||||
Non-owner occupied | |||||||||||||||||
Owner occupied | |||||||||||||||||
Multi-family | |||||||||||||||||
Construction and land development | |||||||||||||||||
Total collateral dependent loans | $ | $ | $ | ||||||||||||||
December 31, 2023 | |||||||||||||||||
Commercial: | |||||||||||||||||
Commercial | $ | $ | $ | ||||||||||||||
Commercial other | |||||||||||||||||
Commercial real estate: | |||||||||||||||||
Non-owner occupied | |||||||||||||||||
Owner occupied | |||||||||||||||||
Multi-family | |||||||||||||||||
Total collateral dependent loans | $ | $ | $ |
Accruing loans | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 30-59 days past due | 60-89 days past due | Past due 90 days or more | Total past due | Nonaccrual | Current | Total | ||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||
Commercial | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Commercial other | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate non-owner occupied | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate owner occupied | |||||||||||||||||||||||||||||||||||||||||
Multi-family | |||||||||||||||||||||||||||||||||||||||||
Farmland | |||||||||||||||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||||||||||||||
Total commercial loans | |||||||||||||||||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||||||||||||
Residential first lien | |||||||||||||||||||||||||||||||||||||||||
Other residential | |||||||||||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||
Consumer other | |||||||||||||||||||||||||||||||||||||||||
Lease financing | |||||||||||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ |
Accruing loans | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 30-59 days past due | 60-89 days past due | Past due 90 days or more | Total past due | Nonaccrual | Current | Total | ||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||
Commercial | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Commercial other | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate non-owner occupied | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate owner occupied | |||||||||||||||||||||||||||||||||||||||||
Multi-family | |||||||||||||||||||||||||||||||||||||||||
Farmland | |||||||||||||||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||||||||||||||
Total commercial loans | |||||||||||||||||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||||||||||||
Residential first lien | |||||||||||||||||||||||||||||||||||||||||
Other residential | |||||||||||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||
Consumer other | |||||||||||||||||||||||||||||||||||||||||
Lease financing | |||||||||||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ |
March 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Revolving loans | Total | |||||||||||||||||||||||||||||||||||||||||||||
Commercial | Commercial | Acceptable credit quality | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard – nonaccrual | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Not graded | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial other | Acceptable credit quality | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard – nonaccrual | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Not graded | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | Non-owner occupied | Acceptable credit quality | |||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard – nonaccrual | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Not graded | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Owner occupied | Acceptable credit quality | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard – nonaccrual | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Not graded | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family | Acceptable credit quality | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard – nonaccrual | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Not graded | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Farmland | Acceptable credit quality | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard – nonaccrual | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Not graded | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction and land development | Acceptable credit quality | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard – nonaccrual | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Not graded | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Acceptable credit quality | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard – nonaccrual | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Not graded | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial loans | $ | $ | $ | $ | $ | $ | $ | $ |
December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving loans | Total | |||||||||||||||||||||||||||||||||||||||||||||
Commercial | Commercial | Acceptable credit quality | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard – nonaccrual | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Not graded | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial other | Acceptable credit quality | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard – nonaccrual | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Not graded | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | Non-owner occupied | Acceptable credit quality | |||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard – nonaccrual | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Not graded | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Owner occupied | Acceptable credit quality | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard – nonaccrual | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Not graded | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family | Acceptable credit quality | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard – nonaccrual | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Not graded | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Farmland | Acceptable credit quality | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard – nonaccrual | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Not graded | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction and land development | Acceptable credit quality | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard – nonaccrual | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Not graded | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Acceptable credit quality | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard – nonaccrual | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Not graded | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial loans | $ | $ | $ | $ | $ | $ | $ | $ |
Term Loans by Origination Year | ||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Revolving Loans | Total | ||||||||||||||||||||||||||||||||||||||||||
For the three months ended March 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | Commercial | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||
Commercial Other | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Real Estate | Non-owner occupied | |||||||||||||||||||||||||||||||||||||||||||||||||
Owner occupied | ||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family | ||||||||||||||||||||||||||||||||||||||||||||||||||
Construction and land development | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total gross commercial charge-offs | $ | $ | $ | $ | $ | $ | $ | $ |
March 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Revolving Loans | Total | |||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | Residential first lien | Performing | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Nonperforming | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other residential | Performing | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | Consumer | Performing | |||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer other | Performing | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases financing | Performing | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Performing | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other loans | $ | $ | $ | $ | $ | $ | $ | $ |
December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving loans | Total | |||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | Residential first lien | Performing | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Nonperforming | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other residential | Performing | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | Consumer | Performing | |||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer other | Performing | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases financing | Performing | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other loans | $ | $ | $ | $ | $ | $ | $ | $ |
Term Loans by Origination Year | ||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Revolving Loans | Total | ||||||||||||||||||||||||||||||||||||||||||
For the three months ended March 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | Residential first lien | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||
Other residential | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | Consumer | |||||||||||||||||||||||||||||||||||||||||||||||||
Consumer other | ||||||||||||||||||||||||||||||||||||||||||||||||||
Lease financing | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total gross other charge-offs | $ | $ | $ | $ | $ | $ | $ | $ |
March 31, | December 31, | ||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||
Land | $ | $ | |||||||||
Buildings and improvements | |||||||||||
Furniture and equipment | |||||||||||
Lease right-of-use assets | |||||||||||
Total | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
Premises and equipment, net | $ | $ |
Three Months Ended March 31, | |||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||
Operating lease cost | $ | $ | |||||||||
Operating cash flows from leases | |||||||||||
Right-of-use assets obtained in exchange for lease obligations | |||||||||||
Weighted average remaining lease term | |||||||||||
Weighted average discount rate | % | % |
(dollars in thousands) | Amount | ||||
Year ending December 31: | |||||
2024 remaining | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
Thereafter | |||||
Total future minimum lease payments | |||||
Less imputed interest | ( | ||||
Total operating lease liabilities | $ |
Notional amount | Fair value gain | ||||||||||||||||||||||
(dollars in thousands) | March 31, 2024 | December 31, 2023 | March 31, 2024 | December 31, 2023 | |||||||||||||||||||
Derivative instruments (included in other assets): | |||||||||||||||||||||||
Interest rate lock commitments | $ | $ | $ | $ | |||||||||||||||||||
Notional amount | Fair value loss | ||||||||||||||||||||||
(dollars in thousands) | March 31, 2024 | December 31, 2023 | March 31, 2024 | December 31, 2023 | |||||||||||||||||||
Derivative instruments (included in other liabilities): | |||||||||||||||||||||||
Forward commitments to sell mortgage-backed securities | $ | $ | $ | $ | |||||||||||||||||||
(dollars in thousands) | March 31, 2024 | December 31, 2023 | |||||||||
Notional Amount | $ | $ | |||||||||
Fair value loss included in other liabilities | ( | ( | |||||||||
Tax effected amount included in accumulated other comprehensive (loss) income | ( | ( | |||||||||
Average remaining life | |||||||||||
Weighted average pay rate | % | % | |||||||||
Weighted average receive rate | % | % |
(dollars in thousands) | March 31, 2024 | December 31, 2023 | |||||||||
Noninterest-bearing demand | $ | $ | |||||||||
Interest-bearing: | |||||||||||
Checking | |||||||||||
Money market | |||||||||||
Savings | |||||||||||
Time | |||||||||||
Total deposits | $ | $ |
As of and for the quarter ended | ||||||||
March 31, 2024 | ||||||||
(dollars in thousands) | Repurchase agreements | Federal funds purchased | ||||||
Outstanding at period-end | $ | $ | ||||||
Average amount outstanding | ||||||||
Maximum amount outstanding at any month end | ||||||||
Weighted average interest rate: | ||||||||
During period | % | % | ||||||
End of period | % | % |
(dollars in thousands) | March 31, 2024 | December 31, 2023 | |||||||||
FHLB advances – fixed rate, fixed term at rates averaging | $ | $ | |||||||||
FHLB advances – putable fixed rate at rates averaging | |||||||||||
FHLB advances – Short term fixed rate at rates averaging | |||||||||||
Total FHLB advances and other borrowings | $ | $ |
Subordinated debt | |||||||||||||||||
Fixed to Float | |||||||||||||||||
(dollars in thousands) | Issued September 2019 | Issued September 2019 | Total | ||||||||||||||
At March 31, 2024 | |||||||||||||||||
Outstanding amount | $ | $ | $ | ||||||||||||||
Carrying amount | |||||||||||||||||
Current rate | % | % | |||||||||||||||
At December 31, 2023 | |||||||||||||||||
Outstanding amount | $ | $ | $ | ||||||||||||||
Carrying amount | |||||||||||||||||
Current rate | % | % | |||||||||||||||
Maturity date | 9/30/2029 | 9/30/2034 | |||||||||||||||
Optional redemption date | 9/30/2024 | 9/30/2029 | |||||||||||||||
Fixed to variable conversion date | 9/30/2024 | 9/30/2029 | |||||||||||||||
Variable rate | 3-month SOFR plus | 3-month SOFR plus | |||||||||||||||
Interest payment terms | Semiannually | Semiannually |
Three Months Ended March 31, | |||||||||||
(dollars in thousands, except per share data) | 2024 | 2023 | |||||||||
Net income | $ | $ | |||||||||
Preferred dividends declared | ( | ( | |||||||||
Net income available to common shareholders | |||||||||||
Common shareholder dividends | ( | ( | |||||||||
Unvested restricted stock award dividends | ( | ( | |||||||||
Undistributed earnings to unvested restricted stock awards | ( | ( | |||||||||
Undistributed earnings to common shareholders | $ | $ | |||||||||
Basic | |||||||||||
Distributed earnings to common shareholders | $ | $ | |||||||||
Undistributed earnings to common shareholders | |||||||||||
Total common shareholders earnings, basic | $ | $ | |||||||||
Diluted | |||||||||||
Distributed earnings to common shareholders | $ | $ | |||||||||
Undistributed earnings to common shareholders | |||||||||||
Total common shareholders earnings | |||||||||||
Add back: | |||||||||||
Undistributed earnings reallocated from unvested restricted stock awards | |||||||||||
Total common shareholders earnings, diluted | $ | $ | |||||||||
Weighted average common shares outstanding, basic | |||||||||||
Options | |||||||||||
Weighted average common shares outstanding, diluted | |||||||||||
Basic earnings per common share | $ | $ | |||||||||
Diluted earnings per common share | |||||||||||
Antidilutive stock options(1) |
March 31, 2024 | |||||||||||||||||||||||
(dollars in thousands) | Carrying amount | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | |||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis: | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Investment securities available for sale: | |||||||||||||||||||||||
U.S. government sponsored entities and U.S. agency securities | $ | $ | $ | $ | |||||||||||||||||||
Mortgage-backed securities - agency | |||||||||||||||||||||||
Mortgage-backed securities - non-agency | |||||||||||||||||||||||
State and municipal securities | |||||||||||||||||||||||
Collateralized loan obligations | |||||||||||||||||||||||
Corporate securities | |||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Loans held for sale | |||||||||||||||||||||||
Derivative assets | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Derivative liabilities | $ | $ | $ | $ | |||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Assets measured at fair value on a non-recurring basis: | |||||||||||||||||||||||
Nonperforming loans | $ | $ | $ | $ | |||||||||||||||||||
Other real estate owned | |||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||
(dollars in thousands) | Carrying amount | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | |||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis: | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Investment securities available for sale: | |||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | $ | |||||||||||||||||||
U.S. government sponsored entities and U.S. agency securities | |||||||||||||||||||||||
Mortgage-backed securities - agency | |||||||||||||||||||||||
Mortgage-backed securities - non-agency | |||||||||||||||||||||||
State and municipal securities | |||||||||||||||||||||||
Corporate securities | |||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Loans held for sale | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Derivative liabilities | $ | $ | $ | $ | |||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Assets measured at fair value on a non-recurring basis: | |||||||||||||||||||||||
Nonperforming loans | $ | $ | $ | $ | |||||||||||||||||||
Other real estate owned | |||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||
Nonperforming loans | $ | $ | |||||||||
(dollars in thousands) | Fair value | Valuation technique | Unobservable input / assumptions | Range (weighted average)(1) | ||||||||||||||||||||||
March 31, 2024 | ||||||||||||||||||||||||||
Nonperforming loans | $ | Collateral based measurements | Discount to reflect current market conditions and ultimate collectability | |||||||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||||||||
Nonperforming loans | $ | Collateral based measurements | Discount to reflect current market conditions and ultimate collectability | |||||||||||||||||||||||
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | Aggregate fair value | Difference | Contractual principal | Aggregate fair value | Difference | Contractual principal | |||||||||||||||||||||||||||||
Residential loans held for sale | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||
Residential loans held for sale | $ | $ | |||||||||
March 31, 2024 | |||||||||||||||||||||||||||||
(dollars in thousands) | Carrying amount | Fair value | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and due from banks | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Federal funds sold | |||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||
Accrued interest receivable | |||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Deposits | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Short-term borrowings | |||||||||||||||||||||||||||||
FHLB and other borrowings | |||||||||||||||||||||||||||||
Subordinated debt | |||||||||||||||||||||||||||||
Trust preferred debentures | |||||||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||
(dollars in thousands) | Carrying amount | Fair value | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and due from banks | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Federal funds sold | |||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||
Accrued interest receivable | |||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Deposits | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Short-term borrowings | |||||||||||||||||||||||||||||
FHLB and other borrowings | |||||||||||||||||||||||||||||
Subordinated debt | |||||||||||||||||||||||||||||
Trust preferred debentures | |||||||||||||||||||||||||||||
(dollars in thousands) | March 31, 2024 | December 31, 2023 | |||||||||
Commitments to extend credit | $ | $ | |||||||||
Financial guarantees – standby letters of credit |
(dollars in thousands) | Banking | Wealth Management | Corporate | Total | |||||||||||||||||||
Three Months Ended March 31, 2024 | |||||||||||||||||||||||
Net interest income (expense) | $ | $ | ( | $ | ( | $ | |||||||||||||||||
Provision for credit losses | |||||||||||||||||||||||
Noninterest income | ( | ||||||||||||||||||||||
Noninterest expense | ( | ||||||||||||||||||||||
Income (loss) before income taxes (benefit) | ( | ||||||||||||||||||||||
Income taxes (benefit) | ( | ||||||||||||||||||||||
Net income (loss) | $ | $ | $ | ( | $ | ||||||||||||||||||
Total assets | $ | $ | $ | ( | $ | ||||||||||||||||||
Three Months Ended March 31, 2023 | |||||||||||||||||||||||
Net interest income (expense) | $ | $ | $ | ( | $ | ||||||||||||||||||
Provision for credit losses | |||||||||||||||||||||||
Noninterest income | ( | ||||||||||||||||||||||
Noninterest expense | ( | ||||||||||||||||||||||
Income (loss) before income taxes (benefit) | ( | ||||||||||||||||||||||
Income taxes (benefit) | ( | ||||||||||||||||||||||
Net income (loss) | $ | $ | $ | ( | $ | ||||||||||||||||||
Total assets | $ | $ | $ | ( | $ | ||||||||||||||||||
Three Months Ended March 31, | |||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||
Noninterest income - in-scope of Topic 606 | |||||||||||
Wealth management revenue: | |||||||||||
Trust management/administration fees | $ | $ | |||||||||
Investment advisory and brokerage fees | |||||||||||
Other | |||||||||||
Service charges on deposit accounts: | |||||||||||
Nonsufficient fund fees | |||||||||||
Other | |||||||||||
Interchange revenues | |||||||||||
Other income: | |||||||||||
Merchant services revenue | |||||||||||
Other | |||||||||||
Noninterest income - out-of-scope of Topic 606 | |||||||||||
Total noninterest income | $ | $ |
Three Months Ended March 31, | |||||||||||
(dollars in thousands, except per share data) | 2024 | 2023 | |||||||||
Income Statement Data: | |||||||||||
Interest income | $ | 101,675 | $ | 95,539 | |||||||
Interest expense | 45,755 | 35,035 | |||||||||
Net interest income | 55,920 | 60,504 | |||||||||
Provision for credit losses | 14,000 | 3,135 | |||||||||
Noninterest income | 21,187 | 15,779 | |||||||||
Noninterest expense | 44,867 | 44,482 | |||||||||
Income before income taxes | 18,240 | 28,666 | |||||||||
Income taxes | 4,355 | 6,894 | |||||||||
Net income | 13,885 | 21,772 | |||||||||
Preferred dividends | 2,228 | 2,228 | |||||||||
Net income available to common shareholders | $ | 11,657 | $ | 19,544 | |||||||
Per Share Data: | |||||||||||
Basic earnings per common share | $ | 0.53 | $ | 0.86 | |||||||
Diluted earnings per common share | $ | 0.53 | $ | 0.86 | |||||||
Performance Metrics: | |||||||||||
Return on average assets | 0.72 | % | 1.12 | % | |||||||
Return on average shareholders' equity | 7.07 | % | 11.51 | % |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||||||||||||||
(tax-equivalent basis, dollars in thousands) | Average balance | Interest & fees | Yield/ Rate | Average balance | Interest & fees | Yield/ Rate | |||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||
Federal funds sold and cash investments | $ | 69,316 | $ | 951 | 5.52 | % | $ | 85,123 | $ | 980 | 4.67 | % | |||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||||||||
Taxable investment securities | 933,785 | 10,179 | 4.38 | 731,075 | 5,370 | 2.98 | |||||||||||||||||||||||||||||
Investment securities exempt from federal income tax (1) | 54,931 | 529 | 3.87 | 78,773 | 625 | 3.22 | |||||||||||||||||||||||||||||
Total securities | 988,716 | 10,708 | 4.36 | 809,848 | 5,995 | 3.00 | |||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||
Loans (2) | 5,964,454 | 88,995 | 6.00 | 6,264,591 | 87,459 | 5.66 | |||||||||||||||||||||||||||||
Loans exempt from federal income tax (1) | 47,578 | 494 | 4.17 | 55,811 | 538 | 3.91 | |||||||||||||||||||||||||||||
Total loans | 6,012,032 | 89,489 | 5.99 | 6,320,402 | 87,997 | 5.65 | |||||||||||||||||||||||||||||
Loans held for sale | 3,405 | 55 | 6.56 | 1,506 | 16 | 4.41 | |||||||||||||||||||||||||||||
Nonmarketable equity securities | 35,927 | 687 | 7.69 | 47,819 | 795 | 6.75 | |||||||||||||||||||||||||||||
Total interest-earning assets | 7,109,396 | 101,890 | 5.76 | 7,264,698 | 95,783 | 5.35 | |||||||||||||||||||||||||||||
Noninterest-earning assets | 671,671 | 610,811 | |||||||||||||||||||||||||||||||||
Total assets | $ | 7,781,067 | $ | 7,875,509 | |||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||||
Checking and money market deposits | $ | 3,605,946 | $ | 29,237 | 3.26 | % | $ | 3,686,192 | $ | 22,955 | 2.53 | % | |||||||||||||||||||||||
Savings deposits | 555,668 | 477 | 0.34 | 650,138 | 243 | 0.15 | |||||||||||||||||||||||||||||
Time deposits | 852,440 | 7,310 | 3.45 | 703,039 | 3,121 | 1.80 | |||||||||||||||||||||||||||||
Brokered time deposits | 181,064 | 2,190 | 4.86 | 14,572 | 86 | 2.39 | |||||||||||||||||||||||||||||
Total interest-bearing deposits | 5,195,118 | 39,214 | 3.04 | 5,053,941 | 26,405 | 2.12 | |||||||||||||||||||||||||||||
Short-term borrowings | 65,182 | 836 | 5.16 | 38,655 | 25 | 0.26 | |||||||||||||||||||||||||||||
FHLB advances and other borrowings | 313,121 | 3,036 | 3.90 | 540,278 | 6,006 | 4.51 | |||||||||||||||||||||||||||||
Subordinated debt | 93,583 | 1,280 | 5.50 | 99,812 | 1,370 | 5.57 | |||||||||||||||||||||||||||||
Trust preferred debentures | 50,707 | 1,389 | 11.02 | 50,047 | 1,229 | 9.96 | |||||||||||||||||||||||||||||
Total interest-bearing liabilities | 5,717,711 | 45,755 | 3.22 | 5,782,733 | 35,035 | 2.46 | |||||||||||||||||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 1,151,542 | 1,250,899 | |||||||||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 121,908 | 74,691 | |||||||||||||||||||||||||||||||||
Total noninterest-bearing liabilities | 1,273,450 | 1,325,590 | |||||||||||||||||||||||||||||||||
Shareholders’ equity | 789,906 | 767,186 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 7,781,067 | $ | 7,875,509 | |||||||||||||||||||||||||||||||
Net interest income / net interest margin (3) | $ | 56,135 | 3.18 | % | $ | 60,748 | 3.39 | % |
Three Months Ended March 31, 2024 compared with Three Months Ended March 31, 2023 | |||||||||||||||||
Change due to: | Interest Variance | ||||||||||||||||
(tax-equivalent basis, dollars in thousands) | Volume | Rate | |||||||||||||||
Earning assets: | |||||||||||||||||
Federal funds sold and cash investments | $ | (196) | $ | 167 | $ | (29) | |||||||||||
Investment securities: | |||||||||||||||||
Taxable investment securities | 1,846 | 2,963 | 4,809 | ||||||||||||||
Investment securities exempt from federal income tax | (210) | 114 | (96) | ||||||||||||||
Total securities | 1,636 | 3,077 | 4,713 | ||||||||||||||
Loans: | |||||||||||||||||
Loans | (3,987) | 5,523 | 1,536 | ||||||||||||||
Loans exempt from federal income tax | (80) | 36 | (44) | ||||||||||||||
Total loans | (4,067) | 5,559 | 1,492 | ||||||||||||||
Loans held for sale | 26 | 13 | 39 | ||||||||||||||
Nonmarketable equity securities | (210) | 102 | (108) | ||||||||||||||
Total earning assets | $ | (2,811) | $ | 8,918 | $ | 6,107 | |||||||||||
Interest-bearing liabilities: | |||||||||||||||||
Checking and money market deposits | $ | (481) | $ | 6,763 | $ | 6,282 | |||||||||||
Savings deposits | (57) | 291 | 234 | ||||||||||||||
Time deposits | 989 | 3,200 | 4,189 | ||||||||||||||
Brokered time deposits | 1,501 | 603 | 2,104 | ||||||||||||||
Total interest-bearing deposits | 1,952 | 10,857 | 12,809 | ||||||||||||||
Short-term borrowings | 179 | 632 | 811 | ||||||||||||||
FHLB advances and other borrowings | (2,349) | (621) | (2,970) | ||||||||||||||
Subordinated debt | (90) | — | (90) | ||||||||||||||
Trust preferred debentures | 23 | 137 | 160 | ||||||||||||||
Total interest-bearing liabilities | $ | (285) | $ | 11,005 | $ | 10,720 | |||||||||||
Net interest income | $ | (2,526) | $ | (2,087) | $ | (4,613) |
Three Months Ended March 31, | Increase (decrease) | ||||||||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||||||||
Noninterest income: | |||||||||||||||||
Wealth management revenue | $ | 7,132 | $ | 6,411 | $ | 721 | |||||||||||
Service charges on deposit accounts | 3,116 | 2,745 | 371 | ||||||||||||||
Interchange revenue | 3,358 | 3,412 | (54) | ||||||||||||||
Residential mortgage banking revenue | 527 | 405 | 122 | ||||||||||||||
Income on Company-owned life insurance | 1,801 | 876 | 925 | ||||||||||||||
Loss on sales of investment securities, net | — | (648) | 648 | ||||||||||||||
Other income | 5,253 | 2,578 | 2,675 | ||||||||||||||
Total noninterest income | $ | 21,187 | $ | 15,779 | $ | 5,408 |
Three Months Ended March 31, | Increase (decrease) | ||||||||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||||||||
Noninterest expense: | |||||||||||||||||
Salaries and employee benefits | $ | 24,102 | $ | 24,243 | $ | (141) | |||||||||||
Occupancy and equipment | 4,142 | 4,443 | (301) | ||||||||||||||
Data processing | 6,722 | 6,311 | 411 | ||||||||||||||
FDIC insurance | 1,274 | 1,329 | (55) | ||||||||||||||
Professional services | 2,255 | 1,760 | 495 | ||||||||||||||
Marketing | 737 | 703 | 34 | ||||||||||||||
Communications | 342 | 511 | (169) | ||||||||||||||
Loan expense | 1,231 | 818 | 413 | ||||||||||||||
Amortization of intangible assets | 1,089 | 1,291 | (202) | ||||||||||||||
Other expense | 2,973 | 3,073 | (100) | ||||||||||||||
Total noninterest expense | $ | 44,867 | $ | 44,482 | $ | 385 |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
(dollars in thousands) | Balance | Percent | Balance | Percent | |||||||||||||||||||
Loans: | |||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||
Equipment finance loans | $ | 494,068 | 8.3 | % | $ | 531,143 | 8.7 | % | |||||||||||||||
Equipment finance leases | 455,879 | 7.7 | 473,350 | 7.7 | |||||||||||||||||||
Commercial FHA lines | 8,035 | 0.1 | — | — | |||||||||||||||||||
Other commercial loans | 913,564 | 15.3 | 951,387 | 15.5 | |||||||||||||||||||
Total commercial loans and leases | 1,871,546 | 31.4 | 1,955,880 | 31.9 | |||||||||||||||||||
Commercial real estate | 2,397,113 | 40.2 | 2,406,845 | 39.3 | |||||||||||||||||||
Construction and land development | 474,128 | 8.0 | 452,593 | 7.4 | |||||||||||||||||||
Residential real estate | 378,583 | 6.4 | 380,583 | 6.2 | |||||||||||||||||||
Consumer | 837,092 | 14.0 | 935,178 | 15.2 | |||||||||||||||||||
Total loans, gross | 5,958,462 | 100.0 | % | 6,131,079 | 100.0 | % | |||||||||||||||||
Allowance for credit losses on loans | (78,057) | (68,502) | |||||||||||||||||||||
Total loans, net | $ | 5,880,405 | $ | 6,062,577 |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
(dollars in thousands) | Balance | Percent | Balance | Percent | |||||||||||||||||||
Multi-Family | $ | 537,704 | 18.7 | % | $ | 516,295 | 18.1 | % | |||||||||||||||
Skilled Nursing | 420,768 | 14.6 | 469,096 | 16.4 | |||||||||||||||||||
Retail | 466,572 | 16.2 | 454,589 | 15.9 | |||||||||||||||||||
Industrial/Warehouse | 218,399 | 7.6 | 217,956 | 7.6 | |||||||||||||||||||
Hotel/Motel | 176,447 | 6.1 | 159,707 | 5.6 | |||||||||||||||||||
Office | 154,253 | 5.4 | 153,756 | 5.4 | |||||||||||||||||||
All other | 897,098 | 31.4 | 888,039 | 31.0 | |||||||||||||||||||
Total commercial real estate and construction and land development loans | $ | 2,871,241 | 100.0 | % | $ | 2,859,438 | 100.0 | % |
March 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Within One Year | One Year to Five Years | Five Years to 15 Years | After 15 Years | ||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Fixed Rate | Adjustable Rate | Fixed Rate | Adjustable Rate | Fixed Rate | Adjustable Rate | Fixed Rate | Adjustable Rate | Total | ||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 106,058 | $ | 427,010 | $ | 541,137 | $ | 78,344 | $ | 124,373 | $ | 91,298 | $ | — | $ | 47,447 | $ | 1,415,667 | |||||||||||||||||||||||||||||||||||
Commercial real estate | 330,647 | 312,529 | 955,687 | 243,948 | 355,598 | 175,316 | 5,530 | 17,858 | 2,397,113 | ||||||||||||||||||||||||||||||||||||||||||||
Construction and land development | 74,590 | 97,996 | 94,159 | 155,958 | 2,647 | 45,858 | 100 | 2,820 | 474,128 | ||||||||||||||||||||||||||||||||||||||||||||
Total commercial loans | 511,295 | 837,535 | 1,590,983 | 478,250 | 482,618 | 312,472 | 5,630 | 68,125 | 4,286,908 | ||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | 4,275 | 5,702 | 8,050 | 18,306 | 24,095 | 36,980 | 169,877 | 111,298 | 378,583 | ||||||||||||||||||||||||||||||||||||||||||||
Consumer | 3,343 | 53 | 687,572 | 113,182 | 32,942 | — | — | — | 837,092 | ||||||||||||||||||||||||||||||||||||||||||||
Lease financing | 24,092 | — | 344,661 | — | 87,126 | — | — | — | 455,879 | ||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | 543,005 | $ | 843,290 | $ | 2,631,266 | $ | 609,738 | $ | 626,781 | $ | 349,452 | $ | 175,507 | $ | 179,423 | $ | 5,958,462 |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
(dollars in thousands) | Allowance | Percent (1) | Allowance | Percent (1) | |||||||||||||||||||
Commercial | $ | 21,329 | 1.51 | % | $ | 21,847 | 1.47 | % | |||||||||||||||
Commercial real estate | 21,367 | 0.89 | 20,229 | 0.84 | |||||||||||||||||||
Construction and land development | 12,629 | 2.66 | 4,163 | 0.92 | |||||||||||||||||||
Total commercial loans | 55,325 | 1.29 | 46,239 | 1.06 | |||||||||||||||||||
Residential real estate | 5,655 | 1.49 | 5,553 | 1.46 | |||||||||||||||||||
Consumer | 3,611 | 0.43 | 3,770 | 0.40 | |||||||||||||||||||
Lease financing | 13,466 | 2.95 | 12,940 | 2.73 | |||||||||||||||||||
Total allowance for credit losses on loans | $ | 78,057 | 1.31 | % | $ | 68,502 | 1.12 | % |
Three Months Ended March 31, | |||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||
Balance, beginning of period | $ | 68,502 | $ | 61,051 | |||||||
Charge-offs: | |||||||||||
Commercial | 2,410 | 969 | |||||||||
Commercial real estate | 691 | 746 | |||||||||
Residential real estate | 35 | 31 | |||||||||
Consumer | 235 | 263 | |||||||||
Lease financing | 1,665 | 390 | |||||||||
Total charge-offs | 5,036 | 2,399 | |||||||||
Recoveries: | |||||||||||
Commercial | 116 | 94 | |||||||||
Commercial real estate | 152 | 2 | |||||||||
Residential real estate | 55 | 17 | |||||||||
Consumer | 87 | 93 | |||||||||
Lease financing | 181 | 74 | |||||||||
Total recoveries | 591 | 280 | |||||||||
Net charge-offs | 4,445 | 2,119 | |||||||||
Provision for credit losses on loans | 14,000 | 3,135 | |||||||||
Balance, end of period | $ | 78,057 | $ | 62,067 | |||||||
Gross loans, end of period | $ | 5,958,462 | $ | 6,354,271 | |||||||
Average total loans | $ | 6,012,032 | $ | 6,320,402 | |||||||
Net charge-offs to average loans | 0.30 | % | 0.14 | % | |||||||
Allowance for credit losses to total loans | 1.31 | % | 0.98 | % |
(dollars in thousands) | March 31, 2024 | December 31, 2023 | |||||||||
Nonperforming loans: | |||||||||||
Commercial | $ | 10,276 | $ | 9,282 | |||||||
Commercial real estate | 53,957 | 33,891 | |||||||||
Construction and land development | 26,318 | 39 | |||||||||
Residential real estate | 4,130 | 3,869 | |||||||||
Consumer | 93 | 137 | |||||||||
Lease financing | 10,205 | 9,133 | |||||||||
Total nonperforming loans | 104,979 | 56,351 | |||||||||
Other real estate owned and other repossessed assets | 11,742 | 11,350 | |||||||||
Nonperforming assets | $ | 116,721 | $ | 67,701 | |||||||
Nonperforming loans to total loans | 1.76 | % | 0.92 | % | |||||||
Nonperforming assets to total assets | 1.49 | % | 0.86 | % | |||||||
Allowance for credit losses to nonperforming loans | 74.35 | % | 121.56 | % |
(dollars in thousands) | Year Ended March 31, 2024 | ||||
Balance, beginning of period | $ | 56,351 | |||
New nonperforming loans | 56,119 | ||||
Return to performing status | (1,471) | ||||
Payments received | (3,452) | ||||
Transfer to OREO and other repossessed assets | (522) | ||||
Charge-offs | (2,046) | ||||
Balance, end of period | $ | 104,979 |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
(dollars in thousands) | Balance | Percent | Balance | Percent | |||||||||||||||||||
Investment securities available for sale: | |||||||||||||||||||||||
U.S. Treasury securities | $ | — | — | % | $ | 1,097 | 0.1 | % | |||||||||||||||
U.S. government sponsored entities and U.S. agency securities | 67,723 | 6.5 | 72,572 | 7.9 | |||||||||||||||||||
Mortgage-backed securities - agency | 681,520 | 65.5 | 574,500 | 62.7 | |||||||||||||||||||
Mortgage-backed securities - non-agency | 89,528 | 8.6 | 83,529 | 9.1 | |||||||||||||||||||
State and municipal securities | 60,630 | 5.8 | 57,460 | 6.3 | |||||||||||||||||||
Collateralized loan obligations | 33,614 | 3.2 | 27,565 | 3.0 | |||||||||||||||||||
Corporate securities | 107,391 | 10.4 | 99,172 | 10.9 | |||||||||||||||||||
Total investment securities, available for sale, at fair value | $ | 1,040,406 | 100.0 | % | $ | 915,895 | 100.0 | % |
(dollars in thousands) | Balance | Percent | Weighted average yield | ||||||||||||||
Investment securities available for sale: | |||||||||||||||||
U.S. government sponsored entities and U.S. agency securities: | |||||||||||||||||
Maturing within one year | $ | — | — | % | |||||||||||||
Maturing in one to five years | 33,923 | 3.3 | 5.82 | ||||||||||||||
Maturing in five to ten years | 33,800 | 3.2 | 4.65 | ||||||||||||||
Maturing after ten years | — | — | — | ||||||||||||||
Total U.S. government sponsored entities and U.S. agency securities | $ | 67,723 | 6.5 | % | 5.23 | % | |||||||||||
Mortgage-backed securities - agency: | |||||||||||||||||
Maturing within one year | $ | 13,461 | 1.3 | % | 4.92 | % | |||||||||||
Maturing in one to five years | 335,140 | 32.2 | 4.45 | ||||||||||||||
Maturing in five to ten years | 179,363 | 17.2 | 3.17 | ||||||||||||||
Maturing after ten years | 153,556 | 14.8 | 2.85 | ||||||||||||||
Total mortgage-backed securities - agency | $ | 681,520 | 65.5 | % | 3.73 | % | |||||||||||
Mortgage-backed securities - non-agency: | |||||||||||||||||
Maturing within one year | $ | — | — | % | — | % | |||||||||||
Maturing in one to five years | 79,896 | 7.7 | 4.69 | ||||||||||||||
Maturing in five to ten years | 4,230 | 0.4 | 2.24 | ||||||||||||||
Maturing after ten years | 5,402 | 0.5 | 3.21 | ||||||||||||||
Total mortgage-backed securities - non-agency | $ | 89,528 | 8.6 | % | 4.45 | % | |||||||||||
State and municipal securities (1): | |||||||||||||||||
Maturing within one year | $ | 1,175 | 0.1 | % | 2.82 | % | |||||||||||
Maturing in one to five years | 9,253 | 0.9 | 2.59 | ||||||||||||||
Maturing in five to ten years | 25,760 | 2.5 | 2.15 | ||||||||||||||
Maturing after ten years | 24,442 | 2.3 | 3.99 | ||||||||||||||
Total state and municipal securities | $ | 60,630 | 5.8 | % | 2.95 | % | |||||||||||
Collateralized loan obligations: | |||||||||||||||||
Maturing within one year | $ | 6,395 | 0.6 | % | 6.82 | % | |||||||||||
Maturing in one to five years | 16,120 | 1.5 | 6.99 | ||||||||||||||
Maturing in five to ten years | — | — | — | ||||||||||||||
Maturing after ten years | 11,099 | 1.1 | 6.49 | ||||||||||||||
Total collateralized loan obligations | $ | 33,614 | 3.2 | % | 6.79 | % | |||||||||||
Corporate securities: | |||||||||||||||||
Maturing within one year | $ | 4,997 | 0.5 | % | 8.41 | % | |||||||||||
Maturing in one to five years | 39,390 | 3.8 | 4.42 | ||||||||||||||
Maturing in five to ten years | 63,004 | 6.1 | 3.87 | ||||||||||||||
Maturing after ten years | — | — | — | ||||||||||||||
Total corporate securities | $ | 107,391 | 10.4 | % | 4.25 | % | |||||||||||
Total investment securities, available for sale | $ | 1,040,406 | 100.0 | % | 3.98 | % |
Amortized | Fair | Average credit rating | |||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | cost | Value | AAA | AA+/- | A+/- | BBB+/- | <BBB- | Not Rated | |||||||||||||||||||||||||||||||||||||||
Investment securities available for sale: | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. government sponsored entities and U.S. agency securities | 69,487 | 67,723 | 47,417 | 20,306 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities - agency | 763,902 | 681,520 | 39,740 | 641,780 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities - non-agency | 93,146 | 89,528 | 13,786 | 75,742 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
State and municipal securities | 66,902 | 60,630 | 788 | 59,842 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Collateralized loan obligations | 33,558 | 33,614 | 20,246 | 13,368 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Corporate securities | 117,145 | 107,391 | — | 63,291 | 21,984 | 16,325 | 5,791 | — | |||||||||||||||||||||||||||||||||||||||
Total investment securities, available for sale | $ | 1,144,140 | $ | 1,040,406 | $ | 121,977 | $ | 874,329 | $ | 21,984 | $ | 16,325 | $ | 5,791 | $ | — |
(dollars in thousands) | March 31, 2024 | December 31, 2023 | |||||||||||||||||||||
Balance | Percent | Balance | Percent | ||||||||||||||||||||
Noninterest-bearing demand | $ | 1,212,382 | 19.2 | % | $ | 1,145,395 | 18.1 | % | |||||||||||||||
Interest-bearing: | |||||||||||||||||||||||
Checking | 2,394,163 | 37.9 | 2,511,840 | 39.8 | |||||||||||||||||||
Money market | 1,128,463 | 17.8 | 1,135,629 | 18.0 | |||||||||||||||||||
Savings | 555,552 | 8.8 | 559,267 | 8.9 | |||||||||||||||||||
Time | 1,033,424 | 16.3 | 957,398 | 15.2 | |||||||||||||||||||
Total deposits | $ | 6,323,984 | 100.0 | % | $ | 6,309,529 | 100.0 | % |
(dollars in thousands) | Amount | |||||||
Three months or less | $ | 58,488 | ||||||
Three to six months | 24,419 | |||||||
Six to 12 months | 7,301 | |||||||
After 12 months | 8,763 | |||||||
Total | $ | 98,971 |
(dollars in thousands) | March 31, 2024 | December 31, 2023 | ||||||||||||
Cash and cash equivalents | $ | 167,316 | $ | 160,631 | ||||||||||
Unpledged securities | 506,158 | 209,184 | ||||||||||||
FHLB committed liquidity | 1,167,381 | 997,388 | ||||||||||||
FRB discount window availability | 613,250 | 12,201 | ||||||||||||
Total Estimated Liquidity | $ | 2,454,105 | $ | 1,379,404 | ||||||||||
Conditional Funding Based on Market Conditions | ||||||||||||||
Additional credit facility | $ | 431,000 | $ | 250,000 | ||||||||||
Brokered CDs (additional capacity) | $ | 400,000 | $ | 500,000 |
Ratio | Actual | Minimum Regulatory Requirements (1) | Well Capitalized | |||||||||||||||||
Total risk-based capital ratio | ||||||||||||||||||||
Midland States Bancorp, Inc. | 13.68 | % | 10.50 | % | N/A | |||||||||||||||
Midland States Bank | 12.77 | 10.50 | 10.00 | % | ||||||||||||||||
Tier 1 risk-based capital ratio | ||||||||||||||||||||
Midland States Bancorp, Inc. | 11.16 | 8.50 | N/A | |||||||||||||||||
Midland States Bank | 11.62 | 8.50 | 8.00 | |||||||||||||||||
Common equity tier 1 risk-based capital ratio | ||||||||||||||||||||
Midland States Bancorp, Inc. | 8.60 | 7.00 | N/A | |||||||||||||||||
Midland States Bank | 11.62 | 7.00 | 6.50 | |||||||||||||||||
Tier 1 leverage ratio | ||||||||||||||||||||
Midland States Bancorp, Inc. | 9.92 | 4.00 | N/A | |||||||||||||||||
Midland States Bank | 10.33 | 4.00 | 5.00 |
Net interest income sensitivity (Shocks) | |||||||||||||||||||||||
Immediate change in rates | |||||||||||||||||||||||
(dollars in thousands) | -200 | -100 | +100 | +200 | |||||||||||||||||||
March 31, 2024: | |||||||||||||||||||||||
Dollar change | $ | 497 | $ | (295) | $ | (768) | $ | (2,519) | |||||||||||||||
Percent change | 0.2 | % | (0.1) | % | (0.3) | % | (1.1) | % | |||||||||||||||
December 31, 2023: | |||||||||||||||||||||||
Dollar change | $ | 539 | $ | (293) | $ | (1,424) | $ | (3,162) | |||||||||||||||
Percent change | 0.2 | % | (0.1) | % | (0.6) | % | (1.3) | % | |||||||||||||||
Period | Total number of shares purchased(1) | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs | Approximate dollar value of shares that may yet be purchased under the plans or programs (2) | ||||||||||||||||||||||
January 1 - 31, 2024 | 55,166 | $ | 27.26 | 55,023 | $ | 23,500,019 | ||||||||||||||||||||
February 1 - 29, 2024 | 278 | 24.74 | — | 23,500,019 | ||||||||||||||||||||||
March 1 - 31, 2024 | 18,758 | 23.51 | 18,758 | 23,059,060 | ||||||||||||||||||||||
Total | 74,202 | $ | 26.30 | 73,781 | $ | 23,059,060 |
Exhibit No. | Description | |||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101 | Financial information from the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024 formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Income; (iii) Consolidated Statements of Comprehensive Income; (iv) Consolidated Statements of Shareholders’ Equity; (v) Consolidated Statements of Cash Flows; and (vi) Notes to Consolidated Financial Statements – filed herewith. | |||||||
104 | The cover page from Midland States Bancorp, Inc.’s Form 10-Q Report for the quarterly period ended March 31, 2024 formatted in inline XBRL and contained in Exhibit 101. |
Midland States Bancorp, Inc. | |||||||||||
Date: May 9, 2024 | By: | /s/ | Jeffrey G. Ludwig | ||||||||
Jeffrey G. Ludwig | |||||||||||
President and Chief Executive Officer | |||||||||||
(Principal Executive Officer) | |||||||||||
Date: May 9, 2024 | By: | /s/ | Eric T. Lemke | ||||||||
Eric T. Lemke | |||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial Officer) |
Midland States Bancorp, Inc. | |||||||||||
Dated as of: May 9, 2024 | By: | /s/ | Jeffrey G. Ludwig | ||||||||
Jeffrey G. Ludwig | |||||||||||
President and Chief Executive Officer | |||||||||||
(Principal Executive Officer) |
Midland States Bancorp, Inc. | |||||||||||
Dated as of: May 9, 2024 | By: | /s/ | Eric T. Lemke | ||||||||
Eric T. Lemke | |||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial Officer) |
Midland States Bancorp, Inc. | |||||||||||
Dated as of: May 9, 2024 | By: | /s/ | Jeffrey G. Ludwig | ||||||||
Jeffrey G. Ludwig | |||||||||||
President and Chief Executive Officer | |||||||||||
(Principal Executive Officer) |
Midland States Bancorp, Inc. | |||||||||||
Dated as of: May 9, 2024 | By: | /s/ | Eric T. Lemke | ||||||||
Eric T. Lemke | |||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial Officer) |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 2.00 | $ 2.00 |
Preferred stock, shares authorized (in shares) | 4,000,000 | 4,000,000 |
Preferred stock, shares issued (in shares) | 115,000 | 115,000 |
Preferred stock, shares outstanding (in shares) | 115,000 | 115,000 |
Preferred stock, liquidation price (in dollars per share) | $ 1,000 | $ 1,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 21,485,231 | 21,551,402 |
Common stock, shares outstanding (in shares) | 21,485,231 | 21,551,402 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME—(UNAUDITED) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 13,885 | $ 21,772 |
Investment securities available for sale: | ||
Unrealized (losses) gains that occurred during the period | (7,037) | 5,364 |
Reclassification adjustment for realized net losses on sales of investment securities included in net income | 0 | 648 |
Income tax effect | 1,900 | (1,622) |
Change in investment securities available for sale, net of tax | (5,137) | 4,390 |
Cash flow hedges: | ||
Net unrealized derivative gains on cash flow hedges | 644 | 2,206 |
Income tax effect | (173) | (596) |
Change in cash flow hedges, net of tax | 471 | 1,610 |
Other comprehensive (loss) income, net of tax | (4,666) | 6,000 |
Total comprehensive income | $ 9,219 | $ 27,772 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY—(UNAUDITED) (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Stockholders' Equity [Abstract] | ||
Common dividend declared, per share (in dollars per share) | $ 0.31 | $ 0.30 |
Preferred dividend declared, per share (in dollars per share) | $ 19.375 | $ 19.375 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
BUSINESS DESCRIPTION [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Midland States Bancorp, Inc. is a diversified financial holding company headquartered in Effingham, Illinois. Our wholly owned banking subsidiary, Midland States Bank, has branches across Illinois and in Missouri, and provides a full range of commercial and consumer banking products and services, business equipment financing, merchant credit card services, trust and investment management services, and insurance and financial planning services. Our principal business activity has been lending to and accepting deposits from individuals, businesses, municipalities and other entities. We have derived income principally from interest charged on loans and, to a lesser extent, from interest and dividends earned on investment securities. We have also derived income from noninterest sources, such as: fees received in connection with various lending and deposit services; wealth management services; mortgage loan originations, sales and servicing; and, from time to time, gains on sales of assets. Our principal expenses include interest expense on deposits and borrowings, operating expenses, such as salaries and employee benefits, occupancy and equipment expenses, data processing costs, professional fees and other noninterest expenses, provisions for credit losses and income tax expense. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with GAAP and guidance provided by the SEC for interim financial information. Accordingly, the condensed financial statements do not include all of the information and footnotes required by GAAP for completed financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from these estimates. The consolidated financial statements of the Company should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 23, 2024. Certain reclassifications of 2023 amounts have been made to conform to the 2024 presentation. All significant transactions and accounts between subsidiaries have been eliminated. Assets held for customers in a fiduciary or agency capacity are not assets of the Company and, accordingly, other than trust cash on deposit with the Bank, are not included in the accompanying unaudited balance sheets. Management has evaluated subsequent events for potential recognition or disclosure. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 or any other period. Accounting Guidance Adopted in 2024 FASB ASU No. 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method – In March 2023, the FASB issued ASU No. 2023-02, which allows for reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the type of program the tax credits are related to. The ASU is effective for fiscal years beginning after December 15, 2023. The Company adopted this guidance on January 1, 2024 on a prospective basis. The adoption of this accounting pronouncement did not have a material impact on the consolidated financial statements. Accounting Guidance Not Yet Adopted FASB ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures - In December 2023, the FASB issued ASU No. 2023-07, which requires public entities to disclose significant segment expenses, an amount and description for other segment items, the title and position of the entity's chief operating decision maker and an explanation of how the chief operating decision maker uses the reported measures of profit or loss to assess segment performance, and, on an interim basis, certain segment related disclosures that previously were required only on an annual basis.The ASU is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company will update the related disclosures upon adoption. FASB ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures - In December 2023, the FASB issued ASU No. 2023-09, which requires public entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if items meet a quantitative threshold. The pronouncement also requires entities to disclose income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold, among other things. The ASU is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company will update the related disclosures upon adoption.
|
INVESTMENT SECURITIES |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENT SECURITIES | INVESTMENT SECURITIES Investment Securities Available for Sale Investment securities available for sale at March 31, 2024 and December 31, 2023 were as follows:
The following is a summary of the amortized cost and fair value of the investment securities available for sale, by maturity, at March 31, 2024. Expected maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be prepaid without penalties. The maturities of all other investment securities available for sale are based on final contractual maturity.
Proceeds and gross realized gains and losses on sales of investment securities available for sale for the three months ended March 31, 2024 and 2023 are summarized as follows:
Unrealized losses and fair values for investment securities available for sale as of March 31, 2024 and December 31, 2023, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized as follows:
At March 31, 2024, 285 investment securities available for sale had unrealized losses with aggregate depreciation of 11.70% from their amortized cost basis. For all of the above investment securities, the unrealized losses were generally due to changes in interest rates and other market conditions, and unrealized losses were considered to be temporary as the fair value is expected to recover as the securities approach their respective maturity dates. The issuers are of high credit quality and all principal amounts are expected to be paid when securities mature. The Company does not intend to sell and it is likely that the Company will not be required to sell the securities prior to their anticipated recovery.
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LOANS |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS | LOANS The following table presents total loans outstanding by portfolio class, as of March 31, 2024 and December 31, 2023:
Total loans include net deferred loan costs of $3.5 million and $3.8 million at March 31, 2024 and December 31, 2023, respectively, and unearned discounts of $64.4 million and $66.4 million within the lease financing portfolio at March 31, 2024 and December 31, 2023, respectively. At March 31, 2024, the Company had residential real estate loans held for sale totaling $5.0 million, compared to $3.8 million at December 31, 2023. The Company sold loans and leases with proceeds totaling $17.6 million and $6.3 million during the three months ended March 31, 2024 and 2023, respectively. Classifications of Loan Portfolio The Company monitors and assesses the credit risk of its loan portfolio using the classes set forth below. These classes also represent the segments by which the Company monitors the performance of its loan portfolio and estimates its allowance for credit losses on loans. Commercial—Loans to varying types of businesses, including municipalities, school districts and nonprofit organizations, for the purpose of supporting working capital, operational needs and term financing of equipment. Repayment of such loans is generally provided through operating cash flows of the business. Commercial loans are predominately secured by equipment, inventory, accounts receivable, and other sources of repayment. Commercial FHA warehouse lines of $8.0 million as of March 31, 2024 were included in this classification. Commercial real estate—Loans secured by real estate occupied by the borrower for ongoing operations, including loans to borrowers engaged in agricultural production, and non-owner occupied real estate leased to one or more tenants, including commercial office, industrial, special purpose, retail and multi-family residential real estate loans. Construction and land development—Secured loans for the construction of business and residential properties. Real estate construction loans often convert to a real estate commercial loan at the completion of the construction period. Secured development loans are made to borrowers for the purpose of infrastructure improvements to vacant land to create finished marketable residential and commercial lots/land. Most land development loans are originated with the intention that the loans will be paid through the sale of developed lots/land by the developers within twelve months of the completion date. Interest reserves may be established on real estate construction loans. Residential real estate—Loans, secured by residential properties, that generally do not qualify for secondary market sale; however, the risk to return and/or overall relationship are considered acceptable to the Company. This category also includes loans whereby consumers utilize equity in their personal residence, generally through a second mortgage, as collateral to secure the loan. Consumer—Loans to consumers primarily for the purpose of home improvements or acquiring automobiles, recreational vehicles and boats. Consumer loans consist of relatively small amounts that are spread across many individual borrowers. Lease financing—Our equipment leasing business provides financing leases to varying types of businesses, nationwide, for purchases of business equipment and software. The financing is secured by a first priority interest in the financed assets and generally requires monthly payments. Commercial, commercial real estate, and construction and land development loans are collectively referred to as the Company’s commercial loan portfolio, while residential real estate, consumer loans and lease financing receivables are collectively referred to as the Company’s other loan portfolio. We have extended loans to certain of our directors, executive officers, principal shareholders and their affiliates. These loans were made in the ordinary course of business upon substantially the same terms, including collateralization and interest rates prevailing at the time. The new loans, other additions, repayments and other reductions for the three months ended March 31, 2024 and 2023, are summarized as follows:
The following table represents, by loan portfolio segment, a summary of changes in the allowance for credit losses on loans for the three months ended March 31, 2024 and 2023:
The Company utilizes a combination of models which measure probability of default and loss given default in determining expected future credit losses. The probability of default is the risk that the borrower will be unable or unwilling to repay its debt in full or on time. The risk of default is derived by analyzing the obligor’s capacity to repay the debt in accordance with contractual terms. Probability of default is generally associated with financial characteristics such as inadequate cash flow to service debt, declining revenues or operating margins, high leverage, declining or marginal liquidity, and the inability to successfully implement a business plan. In addition to these quantifiable factors, the borrower’s willingness to repay also must be evaluated. The probability of default is forecasted, for most commercial and retail loans, using a regression model that determines the likelihood of default within the twelve month time horizon. The regression model uses forward-looking economic forecasts including variables such as gross domestic product, housing price index, and real disposable income to predict default rates. The forecasting method for the equipment financing portfolio assumes a rolling twelve-month average of the through-the-cycle default rate, to predict default rates for the twelve month time horizon. The loss given default component is the percentage of defaulted loan balance that is ultimately charged off. As a method for estimating the allowance, a form of migration analysis is used that combines the estimated probability of loans experiencing default events and the losses ultimately associated with the loans experiencing those defaults. Multiplying one by the other gives the Company its loss rate, which is then applied to the loan portfolio balance to determine expected future losses. Within the model, the loss given default approach produces segmented loss given default estimates using a loss curve methodology, which is based on historical net losses from charge-off and recovery information. The main principle of a loss curve model is that the loss follows a steady timing schedule based on how long the defaulted loan has been on the books. The Company’s expected loss estimate is anchored in historical credit loss experience, with an emphasis on all available portfolio data. The Company’s historical look-back period includes January 2012 through the current period on a monthly basis. When historical credit loss experience is not sufficient for a specific portfolio, the Company may supplement its own portfolio data with external models or data. Historical data is evaluated in multiple components of the expected credit loss, including the reasonable and supportable forecast and the post-reversion period of each loan segment. The historical experience is used to infer probability of default and loss given default in the reasonable and supportable forecast period. In the post-reversion period, long-term average loss rates are segmented by loan pool. Qualitative reserves reflect management’s overall estimate of the extent to which current expected credit losses on collectively evaluated loans will differ from historical loss experience. The analysis takes into consideration other analytics performed within the organization, such as enterprise and concentration management, along with other credit-related analytics as deemed appropriate. Management attempts to quantify qualitative reserves whenever possible. The Company segments the loan portfolio into pools based on the following risk characteristics: financial asset type, collateral type, loan characteristics, credit characteristics, outstanding loan balances, contractual terms and prepayment assumptions, industry of borrower and concentrations, historical or expected credit loss patterns, and reasonable and supportable forecast periods. Within the probability of default segmentation, credit metrics are identified to further segment the financial assets. The Company utilizes risk ratings for the commercial portfolios and days past due for the consumer and the lease financing portfolios. Within the probability of default segmentation, credit metrics are identified to further segment the financial assets. The Company utilizes risk ratings for the commercial portfolios and days past due for the consumer and the lease financing portfolios. The Company has defined five transitioning risk states for each asset pool within the expected credit loss model. The below table illustrates the transition matrix:
Expected Credit Losses In calculating expected credit losses, the Company individually evaluates loans on nonaccrual status with a balance greater than $500,000, loans past due 90 days or more and still accruing interest, and loans that do not share risk characteristics with other loans in the pool. The following table presents the amortized cost basis of individually evaluated loans on nonaccrual status as of March 31, 2024 and December 31, 2023:
There was no interest income recognized on nonaccrual loans during the three months ended March 31, 2024 and 2023 while the loans were in nonaccrual status. Additional interest income that would have been recorded on nonaccrual loans had they been current in accordance with their original terms was $1.3 million and $0.8 million for the three months ended March 31, 2024 and 2023, respectively. Collateral Dependent Financial Assets A collateral dependent financial loan relies solely on the operation or sale of the collateral for repayment. In evaluating the overall risk associated with a loan, the Company considers character, overall financial condition and resources, and payment record of the borrower; the prospects for support from any financially responsible guarantors; and the nature and degree of protection provided by the cash flow and value of any underlying collateral. However, as other sources of repayment become inadequate over time, the significance of the collateral’s value increases and the loan may become collateral dependent. The table below presents the value of individually evaluated, collateral dependent loans by loan class, for borrowers experiencing financial difficulty, as of March 31, 2024 and December 31, 2023:
The aging status of the recorded investment in loans by portfolio as of March 31, 2024 was as follows:
The aging status of the recorded investment in loans by portfolio as of December 31, 2023 was as follows:
Loan Restructurings The Company adopted the accounting guidance in ASU No. 2022-02, effective as of January 1, 2023, which eliminated the recognition and measurement of a TDR. Due to the removal of the TDR designation, the Company evaluates all loan restructurings according to the accounting guidance for loan modifications to determine if the restructuring results in a new loan or a continuation of the existing loan. Loan modifications to borrowers experiencing financial difficulties that result in a direct change in the timing or amount of contractual cash flows include situations where there is principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, and combinations of the listed modifications. Therefore, the disclosures related to loan restructurings are for modifications which have a direct impact on cash flows. The Company may offer various types of concessions when modifying a loan. Commercial and industrial loans modified in a loan restructuring often involve temporary interest-only payments, term extensions, and converting revolving credit lines to term loans. Additional collateral, a co-borrower, or a guarantor is often requested. Loans modified in a loan restructuring for the Company may have the financial effect of increasing the specific allowance associated with the loan. An allowance for loans that have been modified in a loan restructuring is measured based on the probability of default and loss given default model, the loan's observable market price, or the estimated fair value of the collateral, less any selling costs, if the loan is collateral dependent. Management exercises significant judgment in developing these estimates. Commercial and consumer loans modified in a loan restructuring are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a loan restructuring subsequently default, the Company evaluates the loan for possible further loss. The allowance may be increased, adjustments may be made in the allocation of the allowance, or partial charge-offs may be taken to further write-down the carrying value of the loan. In some cases, the Company will modify a loan by providing multiple types of concessions. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession such as an interest rate reduction or principal forgiveness, may be granted. During the three months ended March 31, 2024 the Company restructured four loans and three leases for borrowers experiencing financial difficulties with principal balances totaling $1.5 million. Each of the restructured loans and leases were provided a term extension. The Company has not committed to lend any additional amounts to the borrowers that have been granted a loan modification. Credit Quality Monitoring The Company maintains loan policies and credit underwriting standards as part of the process of managing credit risk. These standards include making loans generally within the Company’s four geographic regions. In addition, our specialty finance division does nationwide bridge lending for FHA and HUD developments and originates loans for multifamily, assisted and senior living and multi-use properties. Our equipment leasing business provides financing to business customers across the country. The Company has a loan approval process involving underwriting and individual and group loan approval authorities to consider credit quality and loss exposure at loan origination. The loans in the Company’s commercial loan portfolio are risk rated at origination based on the grading system set forth below. All loan authority is based on the aggregate credit to a borrower and its related entities. The Company’s consumer loan portfolio is primarily comprised of both secured and unsecured loans that are relatively small and are evaluated at origination on a centralized basis against standardized underwriting criteria. The ongoing measurement of credit quality of the consumer loan portfolio is largely done on an exception basis. If payments are made on schedule, as agreed, then no further monitoring is performed. However, if delinquency occurs, the delinquent loans are turned over to the Company’s Consumer Collections Group for resolution. Credit quality for the entire consumer loan portfolio is measured by the periodic delinquency rate, nonaccrual amounts and actual losses incurred. Loans in the commercial loan portfolio tend to be larger and more complex than those in the other loan portfolio, and therefore, are subject to more intensive monitoring. All loans in the commercial loan portfolio have an assigned relationship manager, and most borrowers provide periodic financial and operating information that allows the relationship managers to stay abreast of credit quality during the life of the loans. The risk ratings of loans in the commercial loan portfolio are reassessed at least annually, with loans below an acceptable risk rating reassessed more frequently and reviewed by various individuals within the Company at least quarterly. The Company maintains a centralized independent loan review function that monitors the approval process and ongoing asset quality of the loan portfolio, including the accuracy of loan grades. The Company also maintains an independent appraisal review function that participates in the review of all appraisals obtained by the Company. Credit Quality Indicators The Company uses a ten grade risk rating system to monitor the ongoing credit quality of its commercial loan portfolio. These loan grades rank the credit quality of a borrower by measuring liquidity, debt capacity, and coverage and payment behavior as shown in the borrower’s financial statements. The risk grades also measure the quality of the borrower’s management and the repayment support offered by any guarantors. The Company considers all loans with Risk Grades 1 - 6 as acceptable credit risks and structures and manages such relationships accordingly. Periodic financial and operating data combined with regular loan officer interactions are deemed adequate to monitor borrower performance. Loans with Risk Grades of 7 are considered "watch credits" categorized as special mention and the frequency of loan officer contact and receipt of financial data is increased to stay abreast of borrower performance. Loans with Risk Grades of 8 - 10 are considered problematic and require special care. Risk Grade 8 is categorized as substandard, 9 as substandard - nonaccrual and 10 as doubtful. Further, loans with Risk Grades of 7 - 10 are managed regularly through a number of processes, procedures and committees, including oversight by a loan administration committee comprised of executive and senior management of the Company, which includes highly structured reporting of financial and operating data, intensive loan officer intervention and strategies to exit, as well as potential management by the Company's Special Assets Group. Loans not graded in the commercial loan portfolio are monitored by aging status and payment activity. The following tables present the recorded investment of the commercial loan portfolio by risk category as of March 31, 2024 and December 31, 2023:
The following table presents the gross charge-offs by class of loan and year of origination on the commercial loan portfolio for the three months ended March 31, 2024:
The Company evaluates the credit quality of its other loan portfolios, which includes residential real estate, consumer and lease financing loans, based primarily on the aging status of the loan and payment activity. Accordingly, loans on nonaccrual status and loans past due 90 days or more and still accruing interest are considered to be nonperforming for purposes of credit quality evaluation. The following tables present the recorded investment of our other loan portfolio based on the credit risk profile of loans that are performing and loans that are nonperforming as of March 31, 2024 and December 31, 2023:
The following table presents the gross charge-offs by class of loan and year of origination on the other loan portfolio for the three months ended March 31, 2024:
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PREMISES, EQUIPMENT AND LEASES |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PREMISES, EQUIPMENT AND LEASES | PREMISES, EQUIPMENT AND LEASES A summary of premises, equipment and leases at March 31, 2024 and December 31, 2023 is as follows:
Depreciation expense for the three months ended March 31, 2024 and 2023 was $1.2 million for each period. The Company has entered into operating leases, primarily for banking offices and operating facilities, which have remaining lease terms of 7 months to 14 years, some of which may include options to extend the lease terms for up to an additional 10 years. The options to extend are included in the remaining lease term if they are reasonably certain to be exercised. The Company had operating lease right-of-use assets of $7.5 million and $7.7 million as of March 31, 2024 and December 31, 2023, respectively, included in on our consolidated balance sheets. The operating lease liabilities of the Company were $9.0 million and $9.3 million as of March 31, 2024 and December 31, 2023, respectively, and are included in accrued interest payable and on our consolidated balance sheets. Information related to operating leases for the three months ended March 31, 2024 and 2023 was as follows:
The projected minimum rental payments under the terms of the leases as of March 31, 2024 were as follows:
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DERIVATIVE INSTRUMENTS |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS As part of the Company’s overall interest rate risk management, the Company utilizes derivative instruments to minimize significant, unanticipated earnings fluctuations caused by interest rate volatility, including interest rate lock commitments, forward commitments to sell mortgage-backed securities, cash flow hedges and interest rate swap contracts. The notional amount does not represent amounts exchanged by the parties, rather the amount exchanged is determined by reference to the notional amount and the other terms of the individual agreements. Interest Rate Lock Commitments / Forward Commitments to Sell Mortgage-Backed Securities The Company issues interest rate lock commitments on originated fixed-rate residential real estate loans to be sold. The interest rate lock commitments and loans held for sale are hedged with forward contracts to sell mortgage-backed securities. The fair value of the interest rate lock commitments and forward contracts to sell mortgage-backed securities are included in other assets or other liabilities in the consolidated balance sheets. Changes in the fair value of derivative financial instruments are recognized in residential mortgage banking revenue in the consolidated statements of income. The following table summarizes the interest rate lock commitments and forward commitments to sell mortgage-backed securities held by the Company, their notional amount and estimated fair values at March 31, 2024 and December 31, 2023:
During both the three months ended March 31, 2024 and 2023, the Company recognized net gains of $0.1 million on derivative instruments in residential mortgage banking revenue in the consolidated statements of income. Cash Flow Hedges The Company periodically enters into interest rate swap agreements, which qualify as cash flow hedges, to manage the risk of changes in future cash flows due to interest rate fluctuations. The following table summarizes the Company's receive-fixed, pay-variable interest rate swaps on certain pools of loans indexed to prime at March 31, 2024 and December 31, 2023
Interest Rate Swap Contracts Not Designated as Hedges The Company entered into interest rate swap contracts sold to commercial customers who wish to modify their interest rate sensitivity. These swaps are offset by contracts simultaneously purchased by the Company from other financial dealer institutions with mirror-image terms. Because of the mirror-image terms of the offsetting contracts, in addition to collateral provisions which mitigate the impact of non-performance risk, changes in the fair value subsequent to initial recognition have a minimal effect on earnings. These derivative contracts do not qualify for hedge accounting. The notional amounts of the customer derivative instruments and the offsetting counterparty derivative instruments were $6.8 million and $6.9 million at March 31, 2024 and December 31, 2023, respectively. The fair value of the customer derivative instruments and the offsetting counterparty derivative instruments was $0.4 million and $0.3 million at March 31, 2024 and December 31, 2023, respectively, which are included in other assets and other liabilities, respectively, on the consolidated balance sheets.
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DEPOSITS |
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Deposits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEPOSITS | DEPOSITS The following table summarizes the classification of deposits as of March 31, 2024 and December 31, 2023:
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SHORT-TERM BORROWINGS |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHORT-TERM BORROWINGS | SHORT-TERM BORROWINGS The following table presents the distribution of securities sold under agreements to repurchase and federal funds purchased and the related weighted average interest rates as of March 31, 2024:
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FHLB ADVANCES AND OTHER BORROWINGS |
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FHLB ADVANCES AND OTHER BORROWINGS | FHLB ADVANCES AND OTHER BORROWINGS The following table summarizes our FHLB advances and other borrowings as of March 31, 2024 and December 31, 2023:
The Company’s advances from the FHLB are collateralized by a blanket collateral agreement of qualifying mortgage and home equity line of credit loans and certain commercial real estate loans totaling approximately $3.01 billion and $2.98 billion at March 31, 2024 and December 31, 2023, respectively.
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SUBORDINATED DEBT |
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Subordinated Borrowings [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUBORDINATED DEBT | SUBORDINATED DEBT The following table summarizes the Company’s subordinated debt at March 31, 2024 and December 31, 2023:
The value of subordinated debentures have been reduced by the debt issuance costs, which are being amortized on a straight line basis through the earlier of the redemption option or maturity date. All of the subordinated debentures above may be included in Tier 2 capital (with certain limitations applicable) under current regulatory guidelines and interpretations.
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EARNINGS PER COMMON SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE Earnings per common share is calculated utilizing the two-class method. Basic earnings per common share is calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding. Diluted earnings per common share is calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of shares adjusted for the dilutive effect of common stock awards. Presented below are the calculations for basic and diluted earnings per common share for the three months ended March 31, 2024 and 2023:
(1)The diluted earnings per common share computation excludes antidilutive stock options because the exercise prices of these stock options exceeded the average market prices of the Company's common shares for those respective periods.
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FAIR VALUE OF FINANCIAL INSTRUMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date reflecting assumptions that a market participant would use when pricing an asset or liability. The hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows: •Level 1: Unadjusted quoted prices for identical assets or liabilities traded in active markets. •Level 2: Significant other observable inputs other than Level 1, including quoted prices for similar assets and liabilities in active markets, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data. •Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: Investment securities. The fair value of investment securities available for sale are determined by quoted market prices, if available (Level 1). For investment securities available for sale where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For investment securities available for sale where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Securities classified as Level 3 are not actively traded, and as a result, fair value is determined utilizing third-party valuation services through consensus pricing. There were no transfers between Levels 1, 2 or 3 during the period presented for assets measured at fair value on a recurring basis. The fair value of equity securities is determined using quoted prices or market prices for similar securities (Level 2). Loans held for sale. The fair value of loans held for sale is determined using quoted prices for a similar asset, adjusted for specific attributes of that loan (Level 2). Derivative instruments. The fair value of derivative instruments are determined based on derivative valuation models using observable market data as of the measurement date (Level 2). Loan servicing rights. In accordance with GAAP, the Company records impairment charges on loan servicing rights on a non-recurring basis when the carrying value exceeds the estimated fair value. The fair value of our servicing rights is estimated by using a cash flow valuation model which calculates the present value of estimated future net servicing cash flows, taking into consideration expected mortgage loan prepayment rates, discount rates, servicing costs, replacement reserves and other economic factors which are estimated based on current market conditions (Level 3). Nonperforming loans. All of our nonaccrual loans are considered nonperforming and are reviewed individually for the amount of impairment, if any. We measure collateral dependent nonperforming loans based on the estimated fair value of such collateral. In cases where the Company has an agreed upon selling price for the collateral, the fair value is set at the selling price (Level 1). The fair value of each loan’s collateral is generally based on estimated market prices from an independently prepared appraisal, which is then adjusted for the cost related to liquidating such collateral (Level 2). When adjustments are made to an appraised value to reflect various factors such as the age of the appraisal or known changes in the market or the collateral, such valuation inputs are considered unobservable (Level 3). The nonperforming loans categorized as Level 3 also include unsecured loans and other secured loans whose fair values are based significantly on unobservable inputs such as the strength of a guarantor, cash flows discounted at the effective loan rate, and management’s judgment. Other Real Estate Owned. OREO is initially recorded at fair value at the date of foreclosure less estimated costs of disposal, which establishes a new cost basis. After foreclosure, OREO is held for sale and is carried at the lower of cost or fair value less estimated costs of disposal. Fair value for OREO is based on an appraisal performed upon foreclosure. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between comparable sales and income data available. Property is evaluated regularly to ensure the recorded amount is supported by its fair value less estimated costs to dispose. After the initial foreclosure appraisal, fair value is generally determined by an annual appraisal unless known events warrant adjustments to the recorded value (Level 2). Assets and liabilities measured and recorded at fair value, including financial assets for which the Company has elected the fair value option, on a recurring and nonrecurring basis at March 31, 2024 and December 31, 2023, are summarized below:
The following table presents losses recognized on assets measured on a nonrecurring basis for the three months ended March 31, 2024 and 2023:
The following tables present quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured on a nonrecurring basis at March 31, 2024 and December 31, 2023:
(1)Unobservable inputs were weighted by the relative fair value of the instruments. ASC Topic 825, Financial Instruments, requires disclosure of the estimated fair value of certain financial instruments and the methods and significant assumptions used to estimate such fair values. Additionally, certain financial instruments and all nonfinancial instruments are excluded from the applicable disclosure requirements. The Company has elected the fair value option for newly originated residential loans held for sale. These loans are intended for sale and are hedged with derivative instruments. We have elected the fair value option to mitigate accounting mismatches in cases where hedge accounting is complex and to achieve operational simplification. The following table presents the difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected as of March 31, 2024 and December 31, 2023:
The following table presents the amount of gains from fair value changes included in income before income taxes for financial assets carried at fair value for the three months ended March 31, 2024 and 2023:
The carrying values and estimated fair value of certain financial instruments not carried at fair value at March 31, 2024 and December 31, 2023 were as follows:
The methods utilized to measure fair value of financial instruments at March 31, 2024 and December 31, 2023 represent an approximation of exit price; however, an actual exit price may differ.
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COMMITMENTS, CONTINGENCIES AND CREDIT RISK |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS, CONTINGENCIES AND CREDIT RISK | COMMITMENTS, CONTINGENCIES AND CREDIT RISK In the normal course of business, there are outstanding various contingent liabilities such as claims and legal actions, which are not reflected in the consolidated financial statements. No material losses are anticipated as a result of these actions or claims. We are a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The contract amounts of those instruments reflect the extent of involvement we have in particular classes of financial instruments. Our exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank used the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The commitments are principally tied to variable rates. Loan commitments as of March 31, 2024 and December 31, 2023 were as follows:
The Company establishes a mortgage repurchase liability to reflect management’s estimate of losses on loans for which the Company could have a repurchase obligation based on the volume of loans sold in 2024 and years prior, borrower default expectations, historical investor repurchase demand and appeals success rates, and estimated loss severity. Loans repurchased from investors are initially recorded at fair value, which becomes the Company’s new accounting basis. Any difference between the loan’s fair value and the outstanding principal amount is charged or credited to the mortgage repurchase liability, as appropriate. Subsequent to repurchase, such loans are carried in loans receivable. There were no losses as a result of make-whole requests and loan repurchases for the three months ended March 31, 2024 and 2023. The liability for unresolved repurchase demands totaled $0.1 million at both March 31, 2024 and December 31, 2023.
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SEGMENT INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION The Company's reportable segments are comprised of strategic business units primarily based upon industry categories and, to a lesser extent, the core competencies relating to product origination, distribution methods, operations and servicing. Segment determination also considers organizational structure and is consistent with the presentation of financial information to the chief operating decision maker to evaluate segment performance, develop strategy and allocate resources. The Company's chief operating decision maker is the Chief Executive Officer of the Company. Management has determined that the Company has three reportable segments consisting of Banking, Wealth Management and Corporate. The Banking segment provides a wide range of financial products and services to consumers and businesses, including commercial, commercial real estate, mortgage and other consumer loan products; commercial equipment financing; mortgage loan sales and servicing; letters of credit; various types of deposit products, including checking, savings and time deposit accounts; merchant services; and corporate treasury management services. The Wealth Management segment consists of trust and fiduciary services, brokerage and retirement planning services. The Corporate segment includes the holding company financing and investment activities, administrative expenses, as well as the elimination of intercompany transactions. The Corporate segment also included our captive insurance business unit for the three months ended March 31, 2023. This business was dissolved as of December 31, 2023. Reported segments and the financial information of the reported segments are not necessarily comparable with similar information reported by other financial institutions. Additionally, because of the interrelationships of the various segments, the information presented is not indicative of how the segments would perform if they operated as independent entities. Changes in management structure or allocation methodologies and procedures may result in future changes to previously reported segment financial data. The accounting policies of the segments are substantially the same as those described in the “Summary of Significant Accounting Policies” in Note 1 of the Company’s 2023 Form 10-K. Transactions between segments consist primarily of borrowed funds and servicing fees. Noninterest income and expense directly attributable to a segment are assigned to it with various shared service costs such as human resources, accounting, finance, risk management and information technology expense assigned to the Banking segment. Selected business segment financial information for the three months ended March 31, 2024 and 2023 were as follows:
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REVENUE FROM CONTRACTS WITH CUSTOMERS |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS The Company’s revenue from contracts with customers in the scope of Topic 606 is recognized within noninterest income in the consolidated statements of income. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended March 31, 2024 and 2023.
Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and investment securities. In addition, certain noninterest income streams such as commercial FHA revenue, residential mortgage banking revenue and gain on sales of investment securities, net, are also not in scope of Topic 606. Topic 606 is applicable to noninterest income streams such as wealth management revenue, service charges on deposit accounts, interchange revenue, gain on sales of other real estate owned, and certain other noninterest income streams. The noninterest income streams considered in-scope by Topic 606 are discussed below. Wealth Management Revenue Wealth management revenue is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company also earns investment advisory fees through its SEC registered investment advisory subsidiary. The Company’s performance obligation in both of these instances is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and contractually determined fee schedules. Payment is generally received a few days after month end through a direct charge to each customer’s account. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. Fees generated from transactions executed by the Company’s third party broker dealer are remitted to the Company on a monthly basis for that month’s transactional activity. Service Charges on Deposit Accounts Service charges on deposit accounts consist of fees received under depository agreements with customers to provide access to deposited funds, serve as custodian of deposited funds, and when applicable, pay interest on deposits. These service charges primarily include non-sufficient fund fees and other account related service charges. Non-sufficient fund fees are earned when a depositor presents an item for payment in excess of available funds, and the Company, at its discretion, provides the necessary funds to complete the transaction. The Company generates other account related service charge revenue by providing depositors proper safeguard and remittance of funds as well as by delivering optional services for depositors, such as check imaging or treasury management, that are performed upon the depositor’s request. The Company’s performance obligation for the proper safeguard and remittance of funds, monthly account analysis and any other monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Payment for service charges on deposit accounts is typically received immediately or in the following month through a direct charge to a customer’s account. Interchange Revenue Interchange revenue includes debit / credit card income and ATM user fees. Card income is primarily comprised of interchange fees earned for standing ready to authorize and providing settlement on card transactions processed through the MasterCard interchange network. The levels and structure of interchange rates are set by MasterCard and can vary based on cardholder purchase volumes. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with completion of the Company’s performance obligation, the transaction processing services provided to the cardholder. Payment is typically received immediately or in the following month. ATM fees are primarily generated when a Company cardholder withdraws funds from a non-Company ATM or a non-Company cardholder withdraws funds from a Company ATM. The Company satisfies its performance obligation for each transaction at the point in time when the ATM withdrawal is processed. Other Noninterest Income The other noninterest income revenue streams within the scope of Topic 606 consist of merchant services revenue, safe deposit box rentals, wire transfer fees, paper statement fees, check printing commissions, gain on sales of other real estate owned and other noninterest related fees. Revenue from the Company’s merchant services business consists principally of transaction and account management fees charged to merchants for the electronic processing of transactions. These fees are net of interchange fees paid to the credit card issuing bank, card company assessments, and revenue sharing amounts. Account management fees are considered earned at the time the merchant’s transactions are processed or other services are performed. Fees related to the other components of other noninterest income within the scope of Topic 606 are largely transactional based, and therefore, the Company’s performance obligation is satisfied and related revenue recognized, at the point in time the customer uses the selected service to execute a transaction.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Pay vs Performance Disclosure | ||
Net income | $ 13,885 | $ 21,772 |
Insider Trading Arrangements |
3 Months Ended |
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Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
3 Months Ended |
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Mar. 31, 2024 | |
BUSINESS DESCRIPTION [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with GAAP and guidance provided by the SEC for interim financial information. Accordingly, the condensed financial statements do not include all of the information and footnotes required by GAAP for completed financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from these estimates. The consolidated financial statements of the Company should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 23, 2024. Certain reclassifications of 2023 amounts have been made to conform to the 2024 presentation. All significant transactions and accounts between subsidiaries have been eliminated. Assets held for customers in a fiduciary or agency capacity are not assets of the Company and, accordingly, other than trust cash on deposit with the Bank, are not included in the accompanying unaudited balance sheets. Management has evaluated subsequent events for potential recognition or disclosure. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 or any other period.
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Accounting Guidance Adopted in 2024 | Accounting Guidance Adopted in 2024 FASB ASU No. 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method – In March 2023, the FASB issued ASU No. 2023-02, which allows for reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the type of program the tax credits are related to. The ASU is effective for fiscal years beginning after December 15, 2023. The Company adopted this guidance on January 1, 2024 on a prospective basis. The adoption of this accounting pronouncement did not have a material impact on the consolidated financial statements. Accounting Guidance Not Yet Adopted FASB ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures - In December 2023, the FASB issued ASU No. 2023-07, which requires public entities to disclose significant segment expenses, an amount and description for other segment items, the title and position of the entity's chief operating decision maker and an explanation of how the chief operating decision maker uses the reported measures of profit or loss to assess segment performance, and, on an interim basis, certain segment related disclosures that previously were required only on an annual basis.The ASU is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company will update the related disclosures upon adoption. FASB ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures - In December 2023, the FASB issued ASU No. 2023-09, which requires public entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if items meet a quantitative threshold. The pronouncement also requires entities to disclose income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold, among other things. The ASU is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company will update the related disclosures upon adoption.
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INVESTMENT SECURITIES (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Investment Securities Classified as Available for Sale | Investment securities available for sale at March 31, 2024 and December 31, 2023 were as follows:
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Debt Securities, Available-for-sale | The following is a summary of the amortized cost and fair value of the investment securities available for sale, by maturity, at March 31, 2024. Expected maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be prepaid without penalties. The maturities of all other investment securities available for sale are based on final contractual maturity.
Proceeds and gross realized gains and losses on sales of investment securities available for sale for the three months ended March 31, 2024 and 2023 are summarized as follows:
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Schedule of Unrealized Losses and Fair Values for Investment Securities | Unrealized losses and fair values for investment securities available for sale as of March 31, 2024 and December 31, 2023, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized as follows:
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LOANS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Loans | The following table presents total loans outstanding by portfolio class, as of March 31, 2024 and December 31, 2023:
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Schedule of Changes in Financing Receivable Related Parties Roll Forward | The new loans, other additions, repayments and other reductions for the three months ended March 31, 2024 and 2023, are summarized as follows:
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Summary of Changes in Allowance for Loan Losses, by Loan Portfolio | The following table represents, by loan portfolio segment, a summary of changes in the allowance for credit losses on loans for the three months ended March 31, 2024 and 2023:
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Schedule of Transitioning Risk States for Each Asset Pool within the Expected Credit Loss Model | The below table illustrates the transition matrix:
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Schedule of Amortized Cost Basis of Individually Evaluated Loans on Nonaccrual Status | The following table presents the amortized cost basis of individually evaluated loans on nonaccrual status as of March 31, 2024 and December 31, 2023:
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Schedule of Collateral Dependent Loans | The table below presents the value of individually evaluated, collateral dependent loans by loan class, for borrowers experiencing financial difficulty, as of March 31, 2024 and December 31, 2023:
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Summary of Aging Status of Recorded Investments in Loans by Portfolio (Excluding PCI Loans) | The aging status of the recorded investment in loans by portfolio as of March 31, 2024 was as follows:
The aging status of the recorded investment in loans by portfolio as of December 31, 2023 was as follows:
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Schedule of Loans Credit Equality Indicators | The following tables present the recorded investment of the commercial loan portfolio by risk category as of March 31, 2024 and December 31, 2023:
The following table presents the gross charge-offs by class of loan and year of origination on the commercial loan portfolio for the three months ended March 31, 2024:
The Company evaluates the credit quality of its other loan portfolios, which includes residential real estate, consumer and lease financing loans, based primarily on the aging status of the loan and payment activity. Accordingly, loans on nonaccrual status and loans past due 90 days or more and still accruing interest are considered to be nonperforming for purposes of credit quality evaluation. The following tables present the recorded investment of our other loan portfolio based on the credit risk profile of loans that are performing and loans that are nonperforming as of March 31, 2024 and December 31, 2023:
The following table presents the gross charge-offs by class of loan and year of origination on the other loan portfolio for the three months ended March 31, 2024:
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PREMISES, EQUIPMENT AND LEASES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Premises and Equipment | A summary of premises, equipment and leases at March 31, 2024 and December 31, 2023 is as follows:
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Summary of Information Related to Operating Leases | Information related to operating leases for the three months ended March 31, 2024 and 2023 was as follows:
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Summary of Projected Minimum Rental Payments | The projected minimum rental payments under the terms of the leases as of March 31, 2024 were as follows:
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DERIVATIVE INSTRUMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments, Fair Value and Notional Amounts | The following table summarizes the interest rate lock commitments and forward commitments to sell mortgage-backed securities held by the Company, their notional amount and estimated fair values at March 31, 2024 and December 31, 2023:
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DEPOSITS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Summarizes the Classification of Deposits | The following table summarizes the classification of deposits as of March 31, 2024 and December 31, 2023:
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SHORT-TERM BORROWINGS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Short Term Borrowings | The following table presents the distribution of securities sold under agreements to repurchase and federal funds purchased and the related weighted average interest rates as of March 31, 2024:
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FHLB ADVANCES AND OTHER BORROWINGS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FHLB ADVANCES AND OTHER BORROWINGS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Federal Home Loan Bank (FHLB) Advances | The following table summarizes our FHLB advances and other borrowings as of March 31, 2024 and December 31, 2023:
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SUBORDINATED DEBT (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subordinated Borrowings [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Summary of Company's Subordinated Debt | The following table summarizes the Company’s subordinated debt at March 31, 2024 and December 31, 2023:
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EARNINGS PER COMMON SHARE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Basic and Diluted Earnings per Common Share | Presented below are the calculations for basic and diluted earnings per common share for the three months ended March 31, 2024 and 2023:
(1)The diluted earnings per common share computation excludes antidilutive stock options because the exercise prices of these stock options exceeded the average market prices of the Company's common shares for those respective periods.
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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities Measured and Recorded at Fair Value | Assets and liabilities measured and recorded at fair value, including financial assets for which the Company has elected the fair value option, on a recurring and nonrecurring basis at March 31, 2024 and December 31, 2023, are summarized below:
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Schedule of Losses Recognized on Assets Measured on a Non-recurring Basis | The following table presents losses recognized on assets measured on a nonrecurring basis for the three months ended March 31, 2024 and 2023:
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Schedule Presents Quantitative Information about Significant Unobservable Inputs used in Fair Value Measurements of Non-recurring Assets (Level 3) | The following tables present quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured on a nonrecurring basis at March 31, 2024 and December 31, 2023:
(1)Unobservable inputs were weighted by the relative fair value of the instruments.
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Schedule of the Fair Value Option for Newly Originated Residential and Commercial Loans Held for Sale | The following table presents the difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected as of March 31, 2024 and December 31, 2023:
The following table presents the amount of gains from fair value changes included in income before income taxes for financial assets carried at fair value for the three months ended March 31, 2024 and 2023:
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Schedule Presentation of Summary of the Carrying Values and Fair Value Estimates of Certain Financial Instruments | The carrying values and estimated fair value of certain financial instruments not carried at fair value at March 31, 2024 and December 31, 2023 were as follows:
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COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Loan Commitments | The commitments are principally tied to variable rates. Loan commitments as of March 31, 2024 and December 31, 2023 were as follows:
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SEGMENT INFORMATION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Financial Information | Selected business segment financial information for the three months ended March 31, 2024 and 2023 were as follows:
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REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Noninterest Income, Segregated by Revenue | The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended March 31, 2024 and 2023.
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INVESTMENT SECURITIES - Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Amortized cost | |||
Within one year | $ 12,571 | ||
After one year through five years | 101,298 | ||
After five years through ten years | 136,040 | ||
After ten years | 37,183 | ||
Mortgage-backed securities | 857,048 | ||
Total available for sale securities | 1,144,140 | $ 1,012,592 | |
Fair value | |||
Within one year | 12,566 | ||
After one year through five years | 98,686 | ||
After five years through ten years | 122,565 | ||
After ten years | 35,541 | ||
Mortgage-backed securities | 771,048 | ||
Total available for sale securities | 1,040,406 | $ 915,895 | |
Proceeds from sales | 0 | $ 84,493 | |
Gross realized gains on sales | 0 | 338 | |
Gross realized losses on sales | $ 0 | $ (986) |
INVESTMENT SECURITIES - Narrative (Details) |
Mar. 31, 2024
security
|
---|---|
Investments, Debt and Equity Securities [Abstract] | |
Number of securities in unrealized loss position (in security) | 285 |
Aggregate depreciation percentage | 11.70% |
LOANS - Loans to Directors, Executive Officers, Principal Shareholders and Affiliates (Details) - Directors, Executive Officers, Principal Shareholders and Affiliates - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Notes Receivable [Roll Forward] | ||
Beginning balance | $ 20,990 | $ 19,776 |
Repayments and other reductions | (264) | (257) |
Ending balance | $ 20,726 | $ 19,519 |
LOANS - Impaired Loans with Interest Recognized (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
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Interest income : | ||
Interest income recognized on nonaccrual loans | $ 0 | $ 0 |
Additional interest income that would have been recorded had they been current | $ 1,300,000 | $ 800,000 |
LOANS - Narrative (Details) $ in Millions |
3 Months Ended |
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Mar. 31, 2024
USD ($)
loan
region
| |
Troubled debt restructuring | |
Number of main regions | region | 4 |
Term extension | |
Troubled debt restructuring | |
Principal balances | $ | $ 1.5 |
Restructured Loan | Term extension | |
Troubled debt restructuring | |
Number of restructured loans | 4 |
Restructured Lease | Term extension | |
Troubled debt restructuring | |
Number of restructured loans | 3 |
PREMISES, EQUIPMENT AND LEASES - Premises and Equipment (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Lease right-of-use assets | $ 7,492 | $ 7,673 |
Total | 137,117 | 137,542 |
Accumulated depreciation | (55,286) | (54,728) |
Premises and equipment, net | 81,831 | 82,814 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment gross | 15,968 | 15,968 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment gross | 78,196 | 78,104 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment gross | $ 35,461 | $ 35,797 |
PREMISES, EQUIPMENT AND LEASES - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Property, Plant and Equipment [Line Items] | |||
Depreciation on premises and equipment | $ 1,231 | $ 1,208 | |
Renewal term of lease (in years) | 10 years | ||
Operating lease right-of-use asset | $ 7,500 | $ 7,700 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Premises and equipment, net | Premises and equipment, net | |
Operating lease liabilities | $ 9,031 | $ 9,300 | |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accrued interest payable and other liabilities | Accrued interest payable and other liabilities | |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Remaining lease terms | 7 months | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Remaining lease terms | 14 years |
PREMISES, EQUIPMENT AND LEASES - Information Related to Operating Leases (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Property, Plant and Equipment [Abstract] | ||
Operating lease cost | $ 476 | $ 484 |
Operating cash flows from leases | 572 | 590 |
Right-of-use assets obtained in exchange for lease obligations | $ 222 | $ 1,130 |
Weighted average remaining lease term | 7 years 7 months 9 days | 8 years 1 month 6 days |
Weighted average discount rate | 3.44% | 3.26% |
PREMISES, EQUIPMENT AND LEASES - Projected Minimum Rental Payments (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Property, Plant and Equipment [Abstract] | ||
2024 remaining | $ 1,475 | |
2025 | 1,402 | |
2026 | 1,277 | |
2027 | 1,132 | |
2028 | 1,074 | |
Thereafter | 3,976 | |
Total future minimum lease payments | 10,336 | |
Less imputed interest | (1,305) | |
Total operating lease liabilities | $ 9,031 | $ 9,300 |
DERIVATIVE INSTRUMENTS - Interest Rate Lock Commitments and Forward Commitments (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Interest rate lock commitments | Other assets | ||
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition | ||
Notational amount, asset | $ 5,564 | $ 2,405 |
Fair value gain (loss) | 116 | 62 |
Forward commitments to sell mortgage-backed securities | Other liabilities | ||
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition | ||
Fair value gain (loss) | (19) | (83) |
Notional amount, liability | $ 8,500 | $ 5,000 |
DERIVATIVE INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Commercial FHA | |||
Derivative disclosures | |||
Net gains (losses) on derivative instruments | $ 0.1 | $ 0.1 | |
Interest rate swap contracts | |||
Derivative disclosures | |||
Notional amount of interest rate swaps | 6.8 | $ 6.9 | |
Interest rate swap contracts | Other liabilities | |||
Derivative disclosures | |||
Fair value of offsetting counterparty derivative instruments | $ 0.4 | $ 0.3 |
DERIVATIVE INSTRUMENTS - Cash Flow Hedges (Details) - Cash Flow Hedge - Receive Fixed, Pay Variable Interest Rate Swaps - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Derivative disclosures | ||
Notational amount, asset | $ 425,000 | $ 400,000 |
Fair value (loss included in other liabilities) gain included in other assets | (8,895) | (8,443) |
Tax effected amount included in accumulated other comprehensive (loss) income | $ (5,693) | $ (6,164) |
Average remaining life | 2 years 6 months 21 days | 2 years 8 months 1 day |
Long | ||
Derivative disclosures | ||
Weighted average rate | 6.37% | 6.55% |
Short | ||
Derivative disclosures | ||
Weighted average rate | 5.40% | 5.41% |
DEPOSITS - Summary of Classification of Deposits (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Classification of deposits | ||
Noninterest-bearing demand | $ 1,212,382 | $ 1,145,395 |
Interest-bearing: | ||
Checking | 2,394,163 | 2,511,840 |
Money market | 1,128,463 | 1,135,629 |
Savings | 555,552 | 559,267 |
Time | 1,033,424 | 957,398 |
Total deposits | $ 6,323,984 | $ 6,309,529 |
SHORT-TERM BORROWINGS (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Short-term Debt [Line Items] | ||
Outstanding at period-end | $ 214,446 | $ 34,865 |
Repurchase agreements | ||
Short-term Debt [Line Items] | ||
Outstanding at period-end | 7,446 | |
Average amount outstanding | 7,347 | |
Maximum amount outstanding at any month end | $ 7,446 | |
Weighted average interest rate: | ||
During period | 0.26% | |
End of period | 0.25% | |
Federal funds purchased | ||
Short-term Debt [Line Items] | ||
Outstanding at period-end | $ 207,000 | |
Average amount outstanding | 57,835 | |
Maximum amount outstanding at any month end | $ 207,000 | |
Weighted average interest rate: | ||
During period | 5.78% | |
End of period | 5.44% |
FHLB ADVANCES AND OTHER BORROWINGS - Summary of FHLB Advances (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
FHLB ADVANCES AND OTHER BORROWINGS | ||
Total FHLB advances and other borrowings | $ 255,000 | $ 476,000 |
FHLB advances, collateral for mortgage and home equity line of credit loans | 3,010,000 | 2,980,000 |
Midland States Bank | Fixed rate fixed term maturing February 2029 | ||
FHLB ADVANCES AND OTHER BORROWINGS | ||
Total FHLB advances and other borrowings | $ 100,000 | $ 150,000 |
Interest rate | 4.64% | 4.94% |
Midland States Bank | Putable fixed rate maturing through February 2028 | ||
FHLB ADVANCES AND OTHER BORROWINGS | ||
Total FHLB advances and other borrowings | $ 155,000 | $ 160,000 |
Interest rate | 3.11% | 3.07% |
Midland States Bank | Short term fixed rate matured January 2024 | ||
FHLB ADVANCES AND OTHER BORROWINGS | ||
Total FHLB advances and other borrowings | $ 0 | $ 166,000 |
Interest rate | 5.45% |
SUBORDINATED DEBT - Subordinated Debt (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Subordinated Borrowing [Line Items] | ||
Outstanding amount | $ 94,000 | $ 94,000 |
Carrying amount | 93,617 | 93,546 |
5.00% Subordinated Debt | ||
Subordinated Borrowing [Line Items] | ||
Outstanding amount | 66,750 | 66,750 |
Carrying amount | $ 66,632 | $ 66,573 |
Current rate | 5.00% | 5.00% |
5.50% Subordinated Debt | ||
Subordinated Borrowing [Line Items] | ||
Outstanding amount | $ 27,250 | $ 27,250 |
Carrying amount | $ 26,985 | $ 26,973 |
Current rate | 5.50% | 5.50% |
Three month SOFR | 5.00% Subordinated Debt | ||
Subordinated Borrowing [Line Items] | ||
Variable rate | 3.61% | |
Three month SOFR | 5.50% Subordinated Debt | ||
Subordinated Borrowing [Line Items] | ||
Variable rate | 4.05% |
FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair value option and gains and losses from fair value changes (Details) - Residential Loan Portfolio - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Aggregate fair value | $ 5,043 | $ 3,811 | |
Difference | 259 | 203 | |
Contractual principal | 4,784 | $ 3,608 | |
Gains and losses from fair value changes | |||
Gains and losses from fair value changes of loan held for sales | $ 18 | $ 99 |
COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Loss Contingencies [Line Items] | |||
Anticipated material loss | $ 0 | ||
Losses as a result of make whole requests and loan repurchases | 0 | $ 0 | |
Liability for unresolved repurchase demands | 100,000 | $ 100,000 | |
Commitments to extend credit | |||
Loss Contingencies [Line Items] | |||
Loan commitments | 827,049,000 | 855,489,000 | |
Financial guarantees – standby letters of credit | |||
Loss Contingencies [Line Items] | |||
Loan commitments | $ 23,689,000 | $ 22,745,000 |
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Disaggregation of Revenue [Line Items] | ||
Noninterest income - out-of-scope of Topic 606 | $ 7,139 | $ 2,400 |
Total noninterest income | 21,187 | 15,779 |
Trust management/administration fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 6,267 | 5,636 |
Investment advisory and brokerage fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 423 | 431 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 442 | 344 |
Nonsufficient fund fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,822 | 1,698 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,294 | 870 |
Interchange revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,358 | 3,412 |
Merchant services revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 344 | 358 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 98 | $ 630 |
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