Performance Graph
|
10
|
Selected Consolidated Financial Data
|
11
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
12
|
Management’s Annual Report on Internal Control Over Financial Reporting (PCAOB ID
|
36
|
Report of Independent Registered Public Accounting Firm
|
37
|
Consolidated Financial Statements
|
39
|
Notes to Consolidated Financial Statements
|
44
|
Quarterly Data
|
110
|
Independent Bank Corporation
|
Period Ending
|
||||||||||||||||||||||||
Index
|
12/31/16
|
12/31/17
|
12/31/18
|
12/31/19
|
12/31/20
|
12/31/21
|
||||||||||||||||||
Independent Bank Corporation
|
$
|
100.00
|
$
|
105.03
|
$
|
101.29
|
$
|
112.84
|
$
|
96.72
|
$
|
129.79
|
||||||||||||
NASDAQ Composite
|
100.00
|
129.64
|
125.96
|
172.17
|
249.51
|
304.85
|
||||||||||||||||||
NASDAQ Bank
|
100.00
|
118.39
|
98.98
|
135.78
|
118.40
|
162.58
|
|
Year Ended December 31,
|
|||||||||||||||||||
|
2021
|
2020
|
2019
|
2018
|
2017
|
|||||||||||||||
|
(Dollars in thousands, except per share amounts)
|
|||||||||||||||||||
SUMMARY OF OPERATIONS
|
||||||||||||||||||||
Interest income
|
$
|
138,080
|
$
|
139,829
|
$
|
148,928
|
$
|
130,773
|
$
|
98,309
|
||||||||||
Interest expense
|
8,315
|
16,217
|
26,347
|
17,491
|
9,123
|
|||||||||||||||
Net interest income
|
129,765
|
123,612
|
122,581
|
113,282
|
89,186
|
|||||||||||||||
Provision for credit losses(1)
|
(1,928
|
)
|
12,463
|
824
|
1,503
|
1,199
|
||||||||||||||
Net gains on securities available for sale
|
1,411
|
267
|
307
|
138
|
260
|
|||||||||||||||
Other non-interest income
|
75,232
|
80,478
|
47,429
|
44,677
|
42,273
|
|||||||||||||||
Non-interest expense
|
131,023
|
122,413
|
111,733
|
107,461
|
92,082
|
|||||||||||||||
Income before income tax
|
77,313
|
69,481
|
57,760
|
49,133
|
38,438
|
|||||||||||||||
Income tax expense
|
14,418
|
13,329
|
11,325
|
9,294
|
17,963
|
|||||||||||||||
Net income
|
$
|
62,895
|
$
|
56,152
|
$
|
46,435
|
$
|
39,839
|
$
|
20,475
|
||||||||||
|
||||||||||||||||||||
PER COMMON SHARE DATA
|
||||||||||||||||||||
Net income per common share
|
||||||||||||||||||||
Basic
|
$
|
2.91
|
$
|
2.56
|
$
|
2.03
|
$
|
1.70
|
$
|
0.96
|
||||||||||
Diluted
|
2.88
|
2.53
|
2.00
|
1.68
|
0.95
|
|||||||||||||||
Cash dividends declared and paid
|
0.84
|
0.80
|
0.72
|
0.60
|
0.42
|
|||||||||||||||
Book value
|
18.82
|
17.82
|
15.58
|
14.38
|
12.42
|
|||||||||||||||
|
||||||||||||||||||||
SELECTED BALANCES
|
||||||||||||||||||||
Assets
|
$
|
4,704,740
|
$
|
4,204,013
|
$
|
3,564,694
|
$
|
3,353,281
|
$
|
2,789,355
|
||||||||||
Loans
|
2,905,045
|
2,733,678
|
2,725,023
|
2,582,520
|
2,018,817
|
|||||||||||||||
Allowance for credit losses(1)
|
47,252
|
35,429
|
26,148
|
24,888
|
22,587
|
|||||||||||||||
Deposits
|
4,117,090
|
3,637,355
|
3,036,727
|
2,913,428
|
2,400,534
|
|||||||||||||||
Shareholders’ equity
|
398,484
|
389,522
|
350,169
|
338,994
|
264,933
|
|||||||||||||||
Other borrowings
|
30,009
|
30,012
|
88,646
|
25,700
|
54,600
|
|||||||||||||||
Subordinated debt
|
39,357
|
39,281
|
—
|
—
|
—
|
|||||||||||||||
Subordinated debentures
|
39,592
|
39,524
|
39,456
|
39,388
|
35,569
|
|||||||||||||||
|
||||||||||||||||||||
SELECTED RATIOS
|
||||||||||||||||||||
Net interest income to average interest earning assets
|
3.10
|
%
|
3.34
|
%
|
3.80
|
%
|
3.88
|
%
|
3.65
|
%
|
||||||||||
Net income to
|
||||||||||||||||||||
Average shareholders' equity
|
16.13
|
15.68
|
13.63
|
12.38
|
7.82
|
|||||||||||||||
Average assets
|
1.41
|
1.43
|
1.35
|
1.27
|
0.77
|
|||||||||||||||
Average shareholders’ equity to average assets
|
8.73
|
9.10
|
9.90
|
10.27
|
9.88
|
|||||||||||||||
Tier 1 capital to average assets
|
8.79
|
9.15
|
10.11
|
10.47
|
10.57
|
|||||||||||||||
Non-performing loans to Portfolio Loans
|
0.18
|
0.29
|
0.35
|
0.33
|
0.39
|
(1) |
Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.
|
• |
economic, market, operational, liquidity, credit, and interest rate risks associated with our business including the impact of the ongoing COVID-19 pandemic on each of these items;
|
• |
economic conditions generally and in the financial services industry, particularly economic conditions within Michigan and the regional and local real estate markets in which our bank operates including the
economic impact of the ongoing COVID-19 pandemic in each of these areas;
|
• |
the failure of assumptions underlying the establishment of, and provisions made to, our allowance for credit losses;
|
• |
increased competition in the financial services industry, either nationally or regionally;
|
• |
our ability to achieve loan and deposit growth;
|
• |
volatility and direction of market interest rates;
|
• |
the continued services of our management team; and
|
• |
implementation of new legislation, which may have significant effects on us and the financial services industry.
|
• |
difficulties encountered by our business customers in addressing the effects of the pandemic may cause increases in loan delinquencies, foreclosures and defaults;
|
• |
increases in our allowance for credit losses may be necessary;
|
• |
declines in collateral values may occur;
|
• |
third party disruptions may occur, including outages at network providers, on-line banking vendors and other suppliers;
|
• |
there is increased cyber and payment fraud risk, as cybercriminals attempt to profit from the disruption, given increased online and remote activity;
|
• |
we may experience operational failures due to changes in our normal business practices necessitated by the pandemic and related governmental actions; and/or
|
• |
our production and efficiency may suffer due to employee illnesses and/or employees having to work remotely.
|
|
Year Ended December 31,
|
|||||||||||
|
2021
|
2020
|
2019
|
|||||||||
Net income to
|
||||||||||||
Average shareholders' equity
|
16.13
|
%
|
15.68
|
%
|
13.63
|
%
|
||||||
Average assets
|
1.41
|
1.43
|
1.35
|
|||||||||
Net income per common share
|
||||||||||||
Basic
|
$
|
2.91
|
$
|
2.56
|
$
|
2.03
|
||||||
Diluted
|
2.88
|
2.53
|
2.00
|
|
2021
|
2020
|
2019
|
|||||||||||||||||||||||||||||||||
|
Average
Balance
|
Interest
|
Rate
|
Average
Balance
|
Interest
|
Rate
|
Average
Balance
|
Interest
|
Rate
|
|||||||||||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||||||||||||||
Taxable loans
|
$
|
2,881,950
|
$
|
116,358
|
4.04
|
%
|
$
|
2,863,846
|
$
|
122,875
|
4.29
|
%
|
$
|
2,713,690
|
$
|
133,574
|
4.92
|
%
|
||||||||||||||||||
Tax-exempt loans(1)
|
7,240
|
362
|
5.00
|
7,145
|
360
|
5.04
|
7,937
|
391
|
4.93
|
|||||||||||||||||||||||||||
Taxable securities
|
915,701
|
14,488
|
1.58
|
635,914
|
12,655
|
1.99
|
397,598
|
11,842
|
2.98
|
|||||||||||||||||||||||||||
Tax-exempt securities(1)
|
348,346
|
7,892
|
2.27
|
137,330
|
3,673
|
2.67
|
52,324
|
1,683
|
3.22
|
|||||||||||||||||||||||||||
Interest bearing cash
|
79,915
|
112
|
0.14
|
59,056
|
184
|
0.31
|
48,023
|
818
|
1.70
|
|||||||||||||||||||||||||||
Other investments
|
18,427
|
734
|
3.98
|
18,410
|
905
|
4.92
|
18,359
|
1,043
|
5.68
|
|||||||||||||||||||||||||||
Interest earning assets
|
4,251,579
|
139,946
|
3.30
|
3,721,701
|
140,652
|
3.78
|
3,237,931
|
149,351
|
4.61
|
|||||||||||||||||||||||||||
Cash and due from banks
|
56,474
|
49,886
|
37,575
|
|||||||||||||||||||||||||||||||||
Other assets, net
|
157,524
|
162,068
|
164,726
|
|||||||||||||||||||||||||||||||||
Total assets
|
$
|
4,465,577
|
$
|
3,933,655
|
$
|
3,440,232
|
||||||||||||||||||||||||||||||
LIABILITIES
|
||||||||||||||||||||||||||||||||||||
Savings and interest-bearing checking
|
$
|
2,282,607
|
2,693
|
0.12
|
$
|
1,821,115
|
3,882
|
0.21
|
$
|
1,453,061
|
10,228
|
0.70
|
||||||||||||||||||||||||
Time deposits
|
326,081
|
1,772
|
0.54
|
516,306
|
8,784
|
1.70
|
655,718
|
13,197
|
2.01
|
|||||||||||||||||||||||||||
Other borrowings
|
108,884
|
3,850
|
3.54
|
117,904
|
3,551
|
3.01
|
77,254
|
2,922
|
3.78
|
|||||||||||||||||||||||||||
Interest bearing liabilities
|
2,717,572
|
8,315
|
0.31
|
2,455,325
|
16,217
|
0.66
|
2,186,033
|
26,347
|
1.21
|
|||||||||||||||||||||||||||
Non-interest bearing deposits
|
1,288,276
|
1,054,230
|
867,314
|
|||||||||||||||||||||||||||||||||
Other liabilities
|
69,694
|
65,943
|
46,153
|
|||||||||||||||||||||||||||||||||
Shareholders’ equity
|
390,035
|
358,157
|
340,732
|
|||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$
|
4,465,577
|
$
|
3,933,655
|
$
|
3,440,232
|
||||||||||||||||||||||||||||||
Net interest income
|
$
|
131,631
|
$
|
124,435
|
$
|
123,004
|
||||||||||||||||||||||||||||||
Net interest income as a percent of average interest earning assets
|
3.10
|
%
|
3.34
|
%
|
3.80
|
%
|
(1) |
Interest on tax-exempt loans and securities is presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.
|
|
Year Ended December 31,
|
|||||||||||
|
2021
|
2020
|
2019
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||
Net interest income
|
$
|
129,765
|
$
|
123,612
|
$
|
122,581
|
||||||
Add: taxable equivalent adjustment
|
1,866
|
823
|
423
|
|||||||||
Net interest income - taxable equivalent
|
$
|
131,631
|
$
|
124,435
|
$
|
123,004
|
||||||
Net interest margin (GAAP)
|
3.05
|
%
|
3.32
|
%
|
3.79
|
%
|
||||||
Net interest margin (FTE)
|
3.10
|
%
|
3.34
|
%
|
3.80
|
%
|
|
2021 compared to 2020
|
2020 compared to 2019
|
||||||||||||||||||||||
|
Volume
|
Rate
|
Net
|
Volume
|
Rate
|
Net
|
||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||
Increase (decrease) in interest income(1)
|
||||||||||||||||||||||||
Taxable loans
|
$
|
772
|
$
|
(7,289
|
)
|
$
|
(6,517
|
)
|
$
|
7,105
|
$
|
(17,804
|
)
|
$
|
(10,699
|
)
|
||||||||
Tax-exempt loans(2)
|
5
|
(3
|
)
|
2
|
(40
|
)
|
9
|
(31
|
)
|
|||||||||||||||
Taxable securities
|
4,789
|
(2,956
|
)
|
1,833
|
5,582
|
(4,769
|
)
|
813
|
||||||||||||||||
Tax-exempt securities(2)
|
4,859
|
(640
|
)
|
4,219
|
2,318
|
(328
|
)
|
1,990
|
||||||||||||||||
Interest bearing cash
|
51
|
(123
|
)
|
(72
|
)
|
154
|
(788
|
)
|
(634
|
)
|
||||||||||||||
Other investments
|
1
|
(172
|
)
|
(171
|
)
|
3
|
(141
|
)
|
(138
|
)
|
||||||||||||||
Total interest income
|
10,477
|
(11,183
|
)
|
(706
|
)
|
15,122
|
(23,821
|
)
|
(8,699
|
)
|
||||||||||||||
Increase (decrease) in interest expense(1)
|
||||||||||||||||||||||||
Savings and interest bearing checking
|
825
|
(2,014
|
)
|
(1,189
|
)
|
2,109
|
(8,455
|
)
|
(6,346
|
)
|
||||||||||||||
Time deposits
|
(2,463
|
)
|
(4,549
|
)
|
(7,012
|
)
|
(2,555
|
)
|
(1,858
|
)
|
(4,413
|
)
|
||||||||||||
Other borrowings
|
(286
|
)
|
585
|
299
|
1,311
|
(682
|
)
|
629
|
||||||||||||||||
Total interest expense
|
(1,924
|
)
|
(5,978
|
)
|
(7,902
|
)
|
865
|
(10,995
|
)
|
(10,130
|
)
|
|||||||||||||
Net interest income
|
$
|
12,401
|
$
|
(5,205
|
)
|
$
|
7,196
|
$
|
14,257
|
$
|
(12,826
|
)
|
$
|
1,431
|
(1) |
The change in interest due to changes in both balance and rate has been allocated to change due to balance and change due to rate in proportion to the relationship of the absolute dollar amounts of change in
each.
|
(2)
|
Interest on tax-exempt loans and securities is presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.
|
|
Year Ended December 31,
|
|||||||||||
|
2021
|
2020
|
2019
|
|||||||||
As a percent of average interest earning assets
|
||||||||||||
Loans
|
68.0
|
%
|
77.1
|
%
|
84.1
|
%
|
||||||
Other interest earning assets
|
32.0
|
22.9
|
15.9
|
|||||||||
Average interest earning assets
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
||||||
Savings and interest-bearing checking
|
53.7
|
%
|
48.9
|
%
|
44.9
|
%
|
||||||
Time deposits
|
7.7
|
13.9
|
20.3
|
|||||||||
Other borrowings
|
2.6
|
3.2
|
2.3
|
|||||||||
Average interest bearing liabilities
|
64.0
|
%
|
66.0
|
%
|
67.5
|
%
|
||||||
Earning asset ratio
|
95.2
|
%
|
94.6
|
%
|
94.1
|
%
|
||||||
Free-funds ratio(1)
|
36.1
|
34.0
|
32.5
|
(1) |
Average interest earning assets less average interest bearing liabilities.
|
|
Year Ended December 31,
|
|||||||||||
|
2021
|
2020
|
2019
|
|||||||||
|
(In thousands)
|
|||||||||||
Interchange income
|
$
|
14,045
|
$
|
11,230
|
$
|
10,297
|
||||||
Service charges on deposit accounts
|
10,170
|
8,517
|
11,208
|
|||||||||
Net gains on assets
|
||||||||||||
Mortgage loans
|
35,880
|
62,560
|
19,978
|
|||||||||
Securities available for sale
|
1,411
|
267
|
307
|
|||||||||
Mortgage loan servicing, net
|
5,745
|
(9,350
|
)
|
(3,336
|
)
|
|||||||
Investment and insurance commissions
|
2,603
|
1,971
|
1,658
|
|||||||||
Bank owned life insurance
|
567
|
910
|
1,111
|
|||||||||
Other
|
6,222
|
4,640
|
6,513
|
|||||||||
Total non-interest income
|
$
|
76,643
|
$
|
80,745
|
$
|
47,736
|
|
Year Ended December 31,
|
|||||||||||
|
2021
|
2020
|
2019
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||
Mortgage loans originated
|
$
|
1,861,060
|
$
|
1,820,697
|
$
|
1,011,141
|
||||||
Mortgage loans sold(1)
|
1,254,638
|
1,447,031
|
738,910
|
|||||||||
Net gains on mortgage loans
|
35,880
|
62,560
|
19,978
|
|||||||||
Net gains as a percent of mortgage loans sold (“Loan Sales Margin”)
|
2.86
|
%
|
4.32
|
%
|
2.70
|
%
|
||||||
Fair value adjustments included in the Loan Sales Margin
|
(0.52
|
)
|
0.47
|
0.22
|
(1) |
2021 includes the sale of $9.6 million of portfolio residential fixed rate mortgage loans. 2020 includes the securitization of $26.3 million of portfolio residential fixed rate loans and the sale of
$2.4 million of portfolio residential fixed rate mortgage loans. 2019 includes the sale of $50.5 million of portfolio residential fixed and adjustable rate mortgage loans to other institutions and securitization of $65.1 million of portfolio
residential fixed rate loans.
|
|
Year Ended December 31,
|
|||||||||||||||
|
Proceeds
|
Gains(1)
|
Losses
|
Net
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
2021
|
$
|
85,371
|
$
|
1,475
|
$
|
64
|
$
|
1,411
|
||||||||
2020
|
38,095
|
271
|
4
|
267
|
||||||||||||
2019
|
68,716
|
415
|
108
|
307
|
(1) |
Gains in 2019 include $0.166 million related to equity securities at fair value.
|
|
2021
|
2020
|
2019
|
|||||||||
|
(In thousands)
|
|||||||||||
Mortgage loan servicing:
|
||||||||||||
Revenue, net
|
$
|
7,853
|
$
|
6,874
|
$
|
6,196
|
||||||
Fair value change due to price
|
3,380
|
(10,833
|
)
|
(6,408
|
)
|
|||||||
Fair value change due to pay-downs
|
(5,488
|
)
|
(5,391
|
)
|
(3,124
|
)
|
||||||
Total
|
$
|
5,745
|
$
|
(9,350
|
)
|
$
|
(3,336
|
)
|
|
2021
|
2020
|
2019
|
|||||||||
|
(In thousands)
|
|||||||||||
Balance at January 1,
|
$
|
16,904
|
$
|
19,171
|
$
|
21,400
|
||||||
Originated servicing rights capitalized
|
11,436
|
13,957
|
7,303
|
|||||||||
Change in fair value
|
(2,108
|
)
|
(16,224
|
)
|
(9,532
|
)
|
||||||
Balance at December 31,
|
$
|
26,232
|
$
|
16,904
|
$
|
19,171
|
|
Year ended December 31,
|
|||||||||||
|
2021
|
2020
|
2019
|
|||||||||
|
(In thousands)
|
|||||||||||
Compensation
|
$
|
44,226
|
$
|
41,517
|
$
|
41,719
|
||||||
Performance-based compensation
|
19,800
|
19,725
|
12,066
|
|||||||||
Payroll taxes and employee benefits
|
15,943
|
13,539
|
13,716
|
|||||||||
Compensation and employee benefits
|
79,969
|
74,781
|
67,501
|
|||||||||
Data processing
|
10,823
|
8,534
|
8,905
|
|||||||||
Occupancy, net
|
8,794
|
8,938
|
9,013
|
|||||||||
Interchange expense
|
4,434
|
3,342
|
3,215
|
|||||||||
Furniture, fixtures and equipment
|
4,172
|
4,089
|
4,113
|
|||||||||
Loan and collection
|
3,172
|
3,037
|
2,685
|
|||||||||
Communications
|
3,080
|
3,194
|
2,947
|
|||||||||
Legal and professional
|
2,068
|
2,027
|
1,814
|
|||||||||
Advertising
|
1,918
|
2,230
|
2,450
|
|||||||||
Conversion related expenses
|
1,827
|
2,586
|
—
|
|||||||||
FDIC deposit insurance
|
1,396
|
1,596
|
685
|
|||||||||
Costs related to unfunded lending commitments
|
1,207
|
263
|
246
|
|||||||||
Amortization of intangible assets
|
970
|
1,020
|
1,089
|
|||||||||
Supplies
|
611
|
680
|
638
|
|||||||||
Correspondent bank service fees
|
382
|
395
|
411
|
|||||||||
Provision for loss reimbursement on sold loans
|
133
|
200
|
229
|
|||||||||
Branch closure costs
|
—
|
417
|
—
|
|||||||||
Net (gains) losses on other real estate and repossessed assets
|
(230
|
)
|
64
|
(90
|
)
|
|||||||
Other
|
6,297
|
5,020
|
5,882
|
|||||||||
Total non-interest expense
|
$
|
131,023
|
$
|
122,413
|
$
|
111,733
|
|
Amortized
|
Unrealized
|
Fair
|
|||||||||||||
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
Securities available for sale
|
||||||||||||||||
December 31, 2021
|
$
|
1,404,858
|
$
|
16,594
|
$
|
8,622
|
$
|
1,412,830
|
||||||||
December 31, 2020
|
1,052,147
|
21,416
|
1,404
|
1,072,159
|
|
Commercial
|
Mortgage
|
Installment
|
Total
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
Due in one year or less
|
$
|
117,497
|
$
|
840
|
$
|
2,033
|
$
|
120,370
|
||||||||
Due after one but within five years
|
293,483
|
2,610
|
49,500
|
345,593
|
||||||||||||
Due after five but within 15 years
|
774,772
|
114,703
|
454,134
|
1,343,609
|
||||||||||||
Due after 15 years
|
17,829
|
1,021,506
|
56,138
|
1,095,473
|
||||||||||||
|
$
|
1,203,581
|
$
|
1,139,659
|
$
|
561,805
|
$
|
2,905,045
|
||||||||
|
||||||||||||||||
Fixed rate
|
$
|
626,148
|
$
|
736,515
|
$
|
558,069
|
$
|
1,920,732
|
||||||||
Variable rate
|
577,433
|
403,144
|
3,736
|
984,313
|
||||||||||||
|
$
|
1,203,581
|
$
|
1,139,659
|
$
|
561,805
|
$
|
2,905,045
|
• |
Terms of two years (five years for loans originated after June 5, 2020) with payments automatically deferred to the date the SBA remits the borrower’s loan forgiveness amount to the lender (or, if the borrower
does not apply for loan forgiveness, 10 months after the end of the borrower’s loan forgiveness covered period);
|
• |
One percent interest rate;
|
• |
No collateral or personal guarantees required;
|
• |
No fees paid by the borrower, rather lenders are paid a fee through the SBA according to a set schedule based on loan size;
|
• |
Loans are forgivable if at least 60% of the loan proceeds are used for payroll with the remainder being used for rent, mortgage interest and/or utilities; and
|
• |
Streamlined forgiveness application process for PPP loans of $50,000 or less.
|
|
December 31,
|
|||||||||||||||
|
2021
|
2020
|
||||||||||||||
|
Amount (#)
|
Amount ($)
|
Amount (#)
|
Amount ($)
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
Closed and outstanding - Round 1 loans
|
6
|
$
|
197
|
1,483
|
$
|
169,782
|
||||||||||
Closed and outstanding - Round 2 loans
|
180
|
26,167
|
—
|
—
|
||||||||||||
Total closed and outstanding
|
186
|
$
|
26,364
|
1,483
|
$
|
169,782
|
||||||||||
Unaccreted net fees remaining at period end
|
$
|
806
|
$
|
3,216
|
• |
The modified loan must be current when the modification is made;
|
• |
The modification must be short term in nature (up to six months); and
|
• |
Modifications may include payment deferrals, fee waivers, extensions of repayment terms or other delays in payment that are insignificant.
|
|
Covid-19 Accommodations
|
Total
|
% of Total
|
|||||||||||||
Loan Category
|
Amount (#)
|
Amount ($)
|
Loans
|
Loans
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
Commercial
|
—
|
$
|
—
|
$
|
1,203,581
|
0.0
|
%
|
|||||||||
Mortgage
|
22
|
2,278
|
1,139,659
|
0.2
|
%
|
|||||||||||
Installment
|
1
|
55
|
561,805
|
0.0
|
%
|
|||||||||||
Total
|
23
|
$
|
2,333
|
$
|
2,905,045
|
0.1
|
%
|
|||||||||
Mortgage loans serviced for others(1)
|
46
|
$
|
5,163
|
$
|
3,323,521
|
0.2
|
%
|
(1) |
We have delegated authority from all investors to grant these deferrals on their behalf.
|
|
Amount
|
% of
Total
Loans
|
||||||
|
(Dollars in millions)
|
|||||||
Commercial and industrial:
|
||||||||
Retail
|
$
|
70
|
2.4
|
%
|
||||
Food service
|
49
|
1.7
|
||||||
Hotel
|
40
|
1.4
|
||||||
|
159
|
5.5
|
||||||
Commercial real estate:
|
||||||||
Retail
|
109
|
3.8
|
||||||
Office
|
72
|
2.5
|
||||||
Multifamily
|
55
|
1.9
|
||||||
|
236
|
8.1
|
||||||
Total
|
$
|
395
|
13.6
|
%
|
|
December 31,
|
|||||||
|
2021
|
2020
|
||||||
|
(In thousands)
|
|||||||
Real estate(1)
|
||||||||
Residential first mortgages
|
$
|
870,169
|
$
|
792,762
|
||||
Residential home equity and other junior mortgages
|
128,801
|
138,128
|
||||||
Construction and land development
|
278,992
|
232,693
|
||||||
Other(2)
|
726,224
|
669,150
|
||||||
Consumer
|
339,785
|
468,090
|
||||||
Commercial
|
555,696
|
429,011
|
||||||
Agricultural
|
5,378
|
3,844
|
||||||
Total loans
|
$
|
2,905,045
|
$
|
2,733,678
|
(1) |
Includes both residential and non-residential commercial loans secured by real estate.
|
(2)
|
Includes loans secured by multi-family residential and non-farm, non-residential property.
|
|
December 31,
|
|||||||||||
|
2021
|
2020
|
2019
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||
Non-accrual loans
|
$
|
5,545
|
$
|
8,312
|
$
|
10,178
|
||||||
Loans 90 days or more past due and still accruing interest
|
—
|
—
|
—
|
|||||||||
Sub total
|
5,545
|
8,312
|
10,178
|
|||||||||
Less: Government guaranteed loans
|
435
|
439
|
646
|
|||||||||
Total non-performing loans
|
5,110
|
7,873
|
9,532
|
|||||||||
Other real estate and repossessed assets
|
245
|
766
|
1,865
|
|||||||||
Total non-performing assets
|
$
|
5,355
|
$
|
8,639
|
$
|
11,397
|
||||||
|
||||||||||||
As a percent of Portfolio Loans
|
||||||||||||
Non-accrual loans
|
0.19
|
%
|
0.30
|
%
|
0.37
|
%
|
||||||
Non-performing loans
|
0.18
|
0.29
|
0.35
|
|||||||||
ACL(2)
|
1.63
|
1.30
|
0.96
|
|||||||||
Non-performing assets to total assets
|
0.11
|
0.21
|
0.32
|
|||||||||
ACL as a percent of non-accrual loans(2)
|
852.16
|
426.24
|
256.91
|
|||||||||
ACL as a percent of non-performing loans(2)
|
924.70
|
450.01
|
274.32
|
(1) |
Excludes loans classified as “troubled debt restructured” that are performing.
|
(2) |
Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.
|
|
December 31, 2021
|
|||||||||||
|
Commercial
|
Retail(1)
|
Total
|
|||||||||
|
(In thousands)
|
|||||||||||
Performing TDRs
|
$
|
4,481
|
$
|
31,589
|
$
|
36,070
|
||||||
Non-performing TDRs(2)
|
—
|
1,016
|
(3)
|
1,016
|
||||||||
Total
|
$
|
4,481
|
$
|
32,605
|
$
|
37,086
|
||||||
|
December 31, 2020
|
|||||||||||
|
Commercial
|
Retail(1)
|
Total
|
|||||||||
|
(In thousands)
|
|||||||||||
Performing TDRs
|
$
|
7,956
|
$
|
36,385
|
$
|
44,341
|
||||||
Non-performing TDRs(2)
|
1,148
|
1,584
|
(3)
|
2,732
|
||||||||
Total
|
$
|
9,104
|
$
|
37,969
|
$
|
47,073
|
(1) |
Retail loans include mortgage and installment loan portfolio segments.
|
(2) |
Included in non-performing loans table above.
|
(3) |
Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis.
|
|
December 31,
2021
|
January 1,
2021
|
||||||
|
(In thousands)
|
|||||||
Specific allocations
|
$
|
1,130
|
$
|
2,452
|
||||
Pooled analysis allocations
|
33,359
|
30,796
|
||||||
Additional allocations based on subjective factors
|
12,763
|
13,889
|
||||||
Total
|
$
|
47,252
|
$
|
47,137
|
(1) |
January 1, 2021 includes impact of the adoption of CECL.
|
|
2021
|
2020
|
2019
|
|||||||||||||||||||||
|
ACL
|
Unfunded
Commitments
|
ACL
|
Unfunded
Commitments
|
ACL
|
Unfunded
Commitments
|
||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||
Balance at beginning of year
|
$
|
35,429
|
$
|
1,805
|
$
|
26,148
|
$
|
1,542
|
$
|
24,888
|
$
|
1,296
|
||||||||||||
Additions (deductions)
|
||||||||||||||||||||||||
Impact of adoption of CECL
|
11,574
|
1,469
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Provision for credit losses(1)
|
(1,928
|
)
|
—
|
12,463
|
—
|
824
|
—
|
|||||||||||||||||
Initial allowance on loans purchased with credit deterioration
|
134
|
|||||||||||||||||||||||
Recoveries credited to the ACL
|
4,477
|
—
|
3,069
|
—
|
3,961
|
—
|
||||||||||||||||||
Loans charged against the ACL
|
(2,434
|
)
|
—
|
(6,251
|
)
|
—
|
(3,525
|
)
|
—
|
|||||||||||||||
Additions included in non-interest expense
|
—
|
1,207
|
—
|
263
|
—
|
246
|
||||||||||||||||||
Balance at end of year
|
$
|
47,252
|
$
|
4,481
|
$
|
35,429
|
$
|
1,805
|
$
|
26,148
|
$
|
1,542
|
(1) |
Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.
|
|
Commercial
|
Mortgage
|
Installment
|
Total
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
2021
|
||||||||||||||||
Loans charged against (recoveries credited to) the ACL
|
$
|
(2,607
|
)
|
$
|
(471
|
)
|
$
|
1,035
|
$
|
(2,043
|
)
|
|||||
Average Portfolio Loans
|
1,241,961
|
1,056,245
|
521,089
|
2,819,295
|
||||||||||||
Net loans charged off against (credited to) the ACL to average Portfolio Loans
|
(0.21
|
)%
|
(0.04
|
)%
|
0.20
|
%
|
(0.07
|
)%
|
||||||||
|
||||||||||||||||
2020
|
||||||||||||||||
Loans charged against (recoveries credited to) the ACL
|
$
|
2,272
|
$
|
303
|
$
|
607
|
$
|
3,182
|
||||||||
Average Portfolio Loans
|
1,294,217
|
1,020,507
|
472,210
|
2,786,934
|
||||||||||||
Net loans charged off against (credited to) the ACL to average Portfolio Loans
|
0.18
|
%
|
0.03
|
%
|
0.13
|
%
|
0.11
|
%
|
||||||||
|
||||||||||||||||
2019
|
||||||||||||||||
Loans charged against (recoveries credited to) the ACL
|
$
|
(1,483
|
)
|
$
|
288
|
$
|
759
|
$
|
(436
|
)
|
||||||
Average Portfolio Loans
|
1,167,518
|
1,060,643
|
426,730
|
2,654,891
|
||||||||||||
Net loans charged off against (credited to) the ACL to average Portfolio Loans
|
(0.13
|
)%
|
0.03
|
%
|
0.18
|
%
|
(0.02
|
)%
|
|
Less than
$250,000
|
Greater than
$250,000
|
Total
|
|||||||||
|
(In thousands)
|
|||||||||||
Three months or less
|
$
|
74,671
|
$
|
18,870
|
$
|
93,541
|
||||||
Over three through six months
|
53,328
|
13,582
|
66,910
|
|||||||||
Over six months through one year
|
57,565
|
51,051
|
108,616
|
|||||||||
Over one year
|
57,155
|
9,570
|
66,725
|
|||||||||
Total
|
$
|
242,719
|
$
|
93,073
|
$
|
335,792
|
(1) |
Includes time deposits, brokered time deposits and reciprocal time deposits
|
|
December 31,
|
|||||||
|
2021
|
2020
|
||||||
|
(In thousands)
|
|||||||
Subordinated debt
|
$
|
39,357
|
$
|
39,281
|
||||
Subordinated debentures
|
39,592
|
39,524
|
||||||
Amount not qualifying as regulatory capital
|
(581
|
)
|
(505
|
)
|
||||
Amount qualifying as regulatory capital
|
78,368
|
78,300
|
||||||
Shareholders’ equity
|
||||||||
Common stock
|
323,401
|
339,353
|
||||||
Retained earnings
|
74,582
|
40,145
|
||||||
Accumulated other comprehensive income
|
501
|
10,024
|
||||||
Total shareholders’ equity
|
398,484
|
389,522
|
||||||
Total capitalization
|
$
|
476,852
|
$
|
467,822
|
Change in Interest Rates
|
Market
Value of
Portfolio
Equity(1)
|
Percent
Change
|
Net
Interest
Income(2)
|
Percent
Change
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
December 31, 2021
|
||||||||||||||||
200 basis point rise
|
$
|
514,200
|
(5.86
|
)%
|
$
|
137,800
|
3.30
|
%
|
||||||||
100 basis point rise
|
550,900
|
0.86
|
136,800
|
2.55
|
||||||||||||
Base-rate scenario
|
546,200
|
—
|
133,400
|
—
|
||||||||||||
100 basis point decline
|
473,000
|
(13.40
|
)
|
126,700
|
(5.02
|
)
|
Change in Interest Rates
|
Market
Value of
Portfolio
Equity(1)
|
Percent
Change
|
Net
Interest
Income(2)
|
Percent
Change
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
December 31, 2020
|
||||||||||||||||
200 basis point rise
|
$
|
494,600
|
15.02
|
%
|
$
|
125,200
|
4.16
|
%
|
||||||||
100 basis point rise
|
483,200
|
12.37
|
123,700
|
2.91
|
||||||||||||
Base-rate scenario
|
430,000
|
—
|
120,200
|
—
|
||||||||||||
100 basis point decline
|
395,500
|
(8.02
|
)
|
114,900
|
(4.41
|
)
|
(1) |
Simulation analyses calculate the change in the net present value of our assets and liabilities, including debt and related financial derivative instruments, under parallel shifts in interest rates by
discounting the estimated future cash flows using a market-based discount rate. Cash flow estimates incorporate anticipated changes in prepayment speeds and other embedded options.
|
(2)
|
Simulation analyses calculate the change in net interest income under immediate parallel shifts in interest rates over the next twelve months, based upon a static Consolidated
Statement of Financial Condition, which includes debt and related financial derivative instruments, and do not consider loan fees.
|
|
|
|
|
William B. Kessel
|
|
|
Gavin A. Mohr
|
President and
Chief Executive Officer
|
|
|
Executive Vice President
and Chief Financial Officer
|
Independent Bank Corporation
March 4, 2022
|
|
|
|
•
|
Testing the effectiveness of controls over the subjective factors used in the ACL calculation including controls addressing:
|
||
○
|
Management’s review of the reasonableness of the significant assumptions applied in the development of the subjective factors and
the relevance to the loan segment to which they are applied.
|
||
○
|
Mathematical accuracy of the subjective factors applied to the loan segments in the ACL calculation.
|
•
|
Substantively testing management’s determination of the subjective factors used in the ACL estimate, including:
|
||
○
|
Testing management’s process for developing the subjective factors, which included assessing the relevance and reliability of data
used to develop the subjective factors, including evaluating their judgments and assumptions for reasonableness. Among other procedures, our evaluation considered evidence from internal and external sources.
|
||
○
|
Analytically evaluating the subjective factors for directional consistency, testing for reasonableness, and obtaining evidence for
significant changes.
|
||
○
|
Testing the mathematical accuracy of the subjective factors applied to the loan segments in the ACL calculation.
|
|
|
|
|
|||
|
|
|
|
December 31,
|
||||||||
2021
|
2020
|
|||||||
(In thousands, except share
amounts)
|
||||||||
Assets
|
||||||||
Cash and due from banks
|
$
|
|
$
|
|
||||
Interest bearing deposits
|
|
|
||||||
Cash and Cash Equivalents
|
|
|
||||||
Securities available for sale
|
|
|
||||||
Federal Home Loan Bank and Federal Reserve Bank stock, at cost
|
|
|
||||||
Loans held for sale, carried at fair value
|
|
|
||||||
Loans held for sale, carried at lower of cost or fair value | ||||||||
Loans
|
||||||||
Commercial
|
|
|
||||||
Mortgage
|
|
|
||||||
Installment
|
|
|
||||||
Total Loans
|
|
|
||||||
Allowance for credit losses (1)
|
(
|
)
|
(
|
)
|
||||
Net Loans
|
|
|
||||||
Other real estate and repossessed assets, net
|
|
|
||||||
Property and equipment, net
|
|
|
||||||
Bank-owned life insurance
|
|
|
||||||
Capitalized mortgage loan servicing rights, carried at fair value
|
|
|
||||||
Other intangibles
|
|
|
||||||
Goodwill
|
|
|
||||||
Accrued income and other assets
|
|
|
||||||
Total Assets
|
$
|
|
$
|
|
||||
Liabilities and Shareholders’ Equity
|
||||||||
Deposits
|
||||||||
Non-interest bearing
|
$
|
|
$
|
|
||||
Savings and interest-bearing checking
|
|
|
||||||
Reciprocal
|
|
|
||||||
Time
|
|
|
||||||
Brokered time
|
|
|
||||||
Total Deposits
|
|
|
||||||
Other borrowings
|
|
|
||||||
Subordinated debt
|
|
|
||||||
Subordinated debentures
|
|
|
||||||
Accrued expenses and other liabilities
|
|
|
||||||
Total Liabilities
|
|
|
||||||
Commitments and contingent liabilities
|
||||||||
Shareholders’ Equity
|
||||||||
Preferred stock,
|
|
|
||||||
Common stock,
|
|
|
||||||
Retained earnings
|
|
|
||||||
Accumulated other comprehensive income
|
|
|
||||||
Total Shareholders’ Equity
|
|
|
||||||
Total Liabilities and Shareholders’ Equity
|
$
|
|
$
|
|
(1) |
|
Year Ended December 31,
|
||||||||||||
2021
|
2020
|
2019
|
||||||||||
(In thousands, except per share amounts)
|
||||||||||||
INTEREST INCOME
|
||||||||||||
Interest and fees on loans
|
$
|
|
$
|
|
$
|
|
||||||
Interest on securities available for sale
|
||||||||||||
Taxable
|
|
|
|
|||||||||
Tax-exempt
|
|
|
|
|||||||||
Other investments
|
|
|
|
|||||||||
Total Interest Income
|
|
|
|
|||||||||
INTEREST EXPENSE
|
||||||||||||
Deposits
|
|
|
|
|||||||||
Other borrowings and subordinated debt and debentures
|
|
|
|
|||||||||
Total Interest Expense
|
|
|
|
|||||||||
Net Interest Income
|
|
|
|
|||||||||
Provision for credit losses (1)
|
(
|
)
|
|
|
||||||||
Net Interest Income After Provision for Credit Losses
|
|
|
|
|||||||||
NON-INTEREST INCOME
|
||||||||||||
Interchange income
|
|
|
|
|||||||||
Service charges on deposit accounts
|
|
|
|
|||||||||
Net gains on assets
|
||||||||||||
Mortgage loans
|
|
|
|
|||||||||
Securities available for sale
|
|
|
|
|||||||||
Mortgage loan servicing, net
|
|
(
|
)
|
(
|
)
|
|||||||
Other
|
|
|
|
|||||||||
Total Non-interest Income
|
|
|
|
|||||||||
NON-INTEREST EXPENSE
|
||||||||||||
Compensation and employee benefits
|
|
|
|
|||||||||
Data processing
|
|
|
|
|||||||||
Occupancy, net
|
|
|
|
|||||||||
Interchange expense
|
|
|
|
|||||||||
Furniture, fixtures and equipment
|
|
|
|
|||||||||
Loan and collection
|
|
|
|
|||||||||
Communications
|
|
|
|
|||||||||
Legal and professional
|
|
|
|
|||||||||
Advertising
|
|
|
|
|||||||||
Conversion related expense
|
|
|
|
|||||||||
FDIC deposit insurance
|
|
|
|
|||||||||
Costs related to unfunded lending commitments
|
|
|
|
|||||||||
Other
|
|
|
|
|||||||||
Total Non-interest Expense
|
|
|
|
|||||||||
Income Before Income Tax
|
|
|
|
|||||||||
Income tax expense
|
|
|
|
|||||||||
Net Income
|
$
|
|
$
|
|
$
|
|
||||||
Net income per common share
|
||||||||||||
Basic
|
$
|
|
$
|
|
$
|
|
||||||
Diluted
|
$
|
|
$
|
|
$
|
|
(1) |
|
Year Ended December 31,
|
||||||||||||
2021
|
2020
|
2019
|
||||||||||
(In thousands)
|
||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
||||||
Other comprehensive income (loss)
|
||||||||||||
Securities available for sale
|
||||||||||||
Unrealized gain (loss) arising during period
|
(
|
)
|
|
|
||||||||
Change in unrealized gains and losses for which a portion of other than temporary impairment has been recognized
in earnings
|
|
(
|
)
|
(
|
)
|
|||||||
Reclassification adjustments for gains included in earnings
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Unrealized gains (losses) recognized in other comprehensive income (loss) on securities available for sale
|
(
|
)
|
|
|
||||||||
Income tax expense (benefit)
|
(
|
)
|
|
|
||||||||
Unrealized gains (losses) recognized in other comprehensive income (loss) on securities available for sale, net
of tax
|
(
|
)
|
|
|
||||||||
Derivative instruments
|
||||||||||||
Unrealized losses arising during period
|
|
(
|
)
|
(
|
)
|
|||||||
Reclassification adjustment for (income) expense recognized in earnings
|
|
|
(
|
)
|
||||||||
Unrealized gains (losses) recognized in other comprehensive income (loss) on derivative instruments
|
|
|
(
|
)
|
||||||||
Income tax expense (benefit)
|
|
|
(
|
)
|
||||||||
Unrealized gains (losses) recognized in other comprehensive income (loss) on derivative instruments, net of tax
|
|
|
(
|
)
|
||||||||
Other comprehensive income (loss)
|
(
|
)
|
|
|
||||||||
Comprehensive income
|
$
|
|
$
|
|
$
|
|
Common
Stock |
Retained
Earnings
(Accumulated
Deficit)
|
Accumulated
Other
Comprehensive
Income (Loss) |
Total
Shareholders’Equity |
|||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||||
Balances at January 1, 2019
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||
Net income for 2019
|
|
|
|
|
||||||||||||
Cash dividends declared, $
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Repurchase of
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Issuance of
|
|
|
|
|
||||||||||||
Share based compensation (issuance of
|
|
|
|
|
||||||||||||
Share based compensation withholding obligation (withholding of
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Other comprehensive income
|
|
|
|
|
||||||||||||
Balances at December 31, 2019
|
|
|
(
|
)
|
|
|||||||||||
Net income for 2020
|
|
|
|
|
||||||||||||
Cash dividends declared, $
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Repurchase of
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Issuance of
|
|
|
|
|
||||||||||||
Share based compensation (issuance of
|
|
|
|
|
||||||||||||
Share based compensation withholding obligation (withholding of
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Other comprehensive income
|
|
|
|
|
||||||||||||
Balances at December 31, 2020
|
|
|
|
|
||||||||||||
Adoption of ASU 2016-13
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Balances at December 31, 2020, as adjusted
|
|
|
|
|
||||||||||||
Net income for 2021
|
|
|
|
|
||||||||||||
Cash dividends declared, $
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Repurchase of
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Issuance of
|
|
|
|
|
||||||||||||
Share based compensation (issuance of
|
|
|
|
|
||||||||||||
Share based compensation withholding obligation (withholding of
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Other comprehensive loss
|
|
|
(
|
)
|
(
|
)
|
||||||||||
Balances at December 31, 2021
|
$
|
|
$
|
|
$
|
|
$
|
|
Year Ended December 31,
|
||||||||||||
2021
|
2020
|
2019
|
||||||||||
(In thousands)
|
||||||||||||
Net Income
|
$
|
|
$
|
|
$
|
|
||||||
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH FROM OPERATING ACTIVITIES
|
||||||||||||
Proceeds from the sale of equity securities at fair value
|
|
|
|
|||||||||
Proceeds from sales of loans held for sale
|
|
|
|
|||||||||
Disbursements for loans held for sale
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Provision for credit losses (1)
|
(
|
)
|
|
|
||||||||
Deferred income tax (benefit) expense
|
|
(
|
)
|
|
||||||||
Net deferred loan fees (costs)
|
(
|
)
|
|
(
|
)
|
|||||||
Net depreciation, amortization of intangible assets and premiums and accretion of discounts on securities, loans
and interest bearing deposits - time
|
|
|
|
|||||||||
Net gains on mortgage loans
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net gains on securities available for sale
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Share based compensation
|
|
|
|
|||||||||
Increase in accrued income and other assets
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Increase in accrued expenses and other liabilities
|
|
|
|
|||||||||
Total Adjustments
|
|
|
(
|
)
|
||||||||
Net Cash From Operating Activities
|
|
|
|
|||||||||
CASH FLOW USED IN INVESTING ACTIVITIES
|
||||||||||||
Proceeds from the sale of securities available for sale
|
|
|
|
|||||||||
Proceeds from maturities, prepayments and calls of securities available for sale
|
|
|
|
|||||||||
Purchases of securities available for sale
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Proceeds from the maturity of interest bearing deposits - time
|
|
|
|
|||||||||
Purchase of Federal Home Loan Bank stock
|
|
(
|
)
|
|
||||||||
Net increase in portfolio loans (loans originated, net of principal payments)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Proceeds from the sale of portfolio loans
|
|
|
|
|||||||||
Proceeds from the sale of other real estate and repossessed assets
|
|
|
|
|||||||||
Proceeds from bank-owned life insurance
|
|
|
|
|||||||||
Proceeds from the sale of property and equipment
|
|
|
|
|||||||||
Capital expenditures
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net Cash Used in Investing Activities
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
CASH FLOW FROM FINANCING ACTIVITIES
|
||||||||||||
Net increase in total deposits
|
|
|
|
|||||||||
Net increase (decrease) in other borrowings
|
(
|
)
|
(
|
)
|
|
|||||||
Proceeds from Federal Home Loan Bank advances
|
|
|
|
|||||||||
Payments of Federal Home Loan Bank advances
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Proceeds from issuance of subordinated debt, net of issuance costs
|
|
|
|
|||||||||
Dividends paid
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Proceeds from issuance of common stock
|
|
|
|
|||||||||
Repurchase of common stock
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Share based compensation withholding obligation
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net Cash From Financing Activities
|
|
|
|
|||||||||
Net Increase (Decrease) in Cash and Cash Equivalents
|
(
|
)
|
|
(
|
)
|
|||||||
Cash and Cash Equivalents at Beginning of Year
|
|
|
|
|||||||||
Cash and Cash Equivalents at End of Year
|
$
|
|
$
|
|
$
|
|
||||||
Cash paid during the year for
|
||||||||||||
Interest
|
$
|
|
$
|
|
$
|
|
||||||
Income taxes
|
|
|
|
|||||||||
Transfers to other real estate and repossessed assets
|
|
|
|
|||||||||
Transfer of mortgage loans to held for sale
|
|
|
|
|||||||||
Securitization of portfolio loans
|
|
|
|
|||||||||
Right of use assets obtained in exchange for lease obligations
|
|
|
|
|||||||||
Purchase of securities available for sale not yet settled
|
|
|
|
(1) |
Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss
methodology.
|
•
|
Replaces the existing incurred loss impairment guidance and establishes a single allowance framework for financial assets carried at amortized
cost, which will reflect our estimate of credit losses over the full remaining expected life of the financial assets and will consider expected future changes in macroeconomic conditions.
|
•
|
Eliminates existing guidance for purchase credit impaired (‘‘PCI’’)
loans, and requires recognition of the nonaccretable difference as an increase to the allowance for expected credit losses on financial assets purchased with more
than insignificant credit deterioration since origination, which will be offset by an increase in the recorded investment of the related loans.
|
•
|
Requires inclusion of expected recoveries, limited to the cumulative amount of prior write-offs, when estimating the ACL for in scope financial
assets (including collateral dependent assets).
|
•
|
Amends existing impairment guidance for securities available for sale to incorporate an allowance, which will allow for reversals of credit
impairments in the event that the credit of an issuer improves. Credit losses on securities available for sale are limited to the amount of the decline in fair value regardless of what the credit loss model would show for impairment.
|
•
|
Generally requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption.
|
|
As Reported
Under
ASU 2016-13
|
Pre-ASU 2016-13
Adoption
|
Impact of
ASU 2016-13
|
|||||||||
|
(In thousands) | |||||||||||
Assets
|
||||||||||||
Loans
|
||||||||||||
Commercial
|
$
|
|
$
|
|
$
|
|
||||||
Mortgage
|
|
|
|
|||||||||
Installment
|
|
|
|
|||||||||
Total loans
|
|
|
|
|||||||||
Allowance for credit losses
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net loans
|
$
|
|
$
|
|
$
|
(
|
)
|
|||||
Deferred tax assets (1)
|
$
|
|
$
|
|
$
|
|
||||||
Total Assets
|
$
|
|
$
|
|
$
|
(
|
)
|
|||||
|
||||||||||||
Liabilities and shareholders’ equity
|
||||||||||||
Allowance for credit losses on unfunded lending
commitments (2)
|
$
|
|
$
|
|
$
|
|
||||||
Total liabilities
|
$
|
|
$
|
|
$
|
|
||||||
Retained earnings
|
$
|
|
$
|
|
$
|
(
|
)
|
|||||
Total shareholders’ equity
|
$
|
|
$
|
|
$
|
(
|
)
|
|||||
Total liabilities and shareholders’ equity
|
$
|
|
$
|
|
$
|
(
|
)
|
(1)
|
|
(2)
|
|
Amortized
|
Unrealized
|
|||||||||||||||
Cost
|
Gains
|
Losses
|
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
2021
|
||||||||||||||||
U.S. agency
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
U.S. agency residential mortgage-backed
|
|
|
|
|
||||||||||||
U.S. agency commercial mortgage-backed
|
|
|
|
|
||||||||||||
Private label mortgage-backed
|
|
|
|
|
||||||||||||
Other asset backed
|
|
|
|
|
||||||||||||
Obligations of states and political subdivisions
|
|
|
|
|
||||||||||||
Corporate
|
|
|
|
|
||||||||||||
Trust preferred
|
|
|
|
|
||||||||||||
Foreign government
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
2020
|
||||||||||||||||
U.S. agency
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
U.S. agency residential mortgage-backed
|
|
|
|
|
||||||||||||
U.S. agency commercial mortgage-backed
|
|
|
|
|
||||||||||||
Private label mortgage-backed
|
|
|
|
|
||||||||||||
Other asset backed
|
|
|
|
|
||||||||||||
Obligations of states and political subdivisions
|
|
|
|
|
||||||||||||
Corporate
|
|
|
|
|
||||||||||||
Trust preferred
|
|
|
|
|
||||||||||||
Foreign government
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
Less Than Twelve Months
|
Twelve Months or More
|
Total
|
||||||||||||||||||||||
Fair Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
Fair Value
|
Unrealized
Losses
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
2021
|
||||||||||||||||||||||||
U.S. agency
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
U.S. agency residential mortgage-backed
|
|
|
|
|
|
|
||||||||||||||||||
U.S. agency commercial mortgage-backed | ||||||||||||||||||||||||
Private label mortgage-backed
|
|
|
|
|
|
|
||||||||||||||||||
Other asset backed
|
|
|
|
|
|
|
||||||||||||||||||
Obligations of states and political subdivisions
|
|
|
|
|
|
|
||||||||||||||||||
Corporate
|
|
|
|
|
|
|
||||||||||||||||||
Trust preferred
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
2020
|
||||||||||||||||||||||||
U.S. agency
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
U.S. agency residential mortgage-backed
|
|
|
|
|
|
|
||||||||||||||||||
Private label mortgage-backed
|
|
|
|
|
|
|
||||||||||||||||||
Other asset backed
|
|
|
|
|
|
|
||||||||||||||||||
Obligations of states and political subdivisions
|
|
|
|
|
|
|
||||||||||||||||||
Corporate
|
|
|
|
|
|
|
||||||||||||||||||
Trust preferred
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Amortized
Cost
|
Fair
Value
|
|||||||
(In thousands)
|
||||||||
Maturing within one year
|
$
|
|
$
|
|
||||
Maturing after one year but within five years
|
|
|
||||||
Maturing after five years but within ten years
|
|
|
||||||
Maturing after ten years
|
|
|
||||||
|
|
|||||||
U.S. agency residential mortgage-backed
|
|
|
||||||
U.S. agency commercial mortgage-backed
|
|
|
||||||
Private label mortgage-backed
|
|
|
||||||
Other asset backed
|
|
|
||||||
Total
|
$
|
|
$
|
|
Realized
|
||||||||||||
Proceeds
|
Gains
|
Losses
|
||||||||||
(In thousands)
|
||||||||||||
2021
|
$
|
|
$
|
|
$
|
|
||||||
2020
|
|
|
|
|||||||||
2019
|
|
|
|
2021
|
2020
|
|||||||
(In thousands)
|
||||||||
Real estate (1)
|
||||||||
Residential first mortgages
|
$
|
|
$
|
|
||||
Residential home equity and other junior mortgages
|
|
|
||||||
Construction and land development
|
|
|
||||||
Other (2)
|
|
|
||||||
Consumer
|
|
|
||||||
Commercial
|
|
|
||||||
Agricultural
|
|
|
||||||
Total loans
|
$
|
|
$
|
|
(1) |
|
(2) |
|
Commercial
|
Mortgage
|
Installment
|
Subjective
Allocation
|
Total
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
2021
|
||||||||||||||||||||
Balance at beginning of period
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Additions (deductions)
|
||||||||||||||||||||
Impact of adoption of CECL
|
( |
) | ||||||||||||||||||
Provision for credit losses
|
(
|
)
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|||||||||||
Initial allowance on loans purchased with credit deterioration
|
||||||||||||||||||||
Recoveries credited to allowance
|
|
|
|
|
|
|||||||||||||||
Loans charged against the allowance
|
|
(
|
)
|
(
|
)
|
|
(
|
)
|
||||||||||||
Balance at end of period
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
2020
|
||||||||||||||||||||
Balance at beginning of period
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Additions (deductions)
|
||||||||||||||||||||
Provision for credit losses (1)
|
|
(
|
)
|
|
|
|
||||||||||||||
Recoveries credited to allowance
|
|
|
|
|
|
|||||||||||||||
Loans charged against the allowance
|
(
|
)
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||||
Balance at end of period
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
2019
|
||||||||||||||||||||
Balance at beginning of period
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Additions (deductions)
|
||||||||||||||||||||
Provision for credit losses (1)
|
(
|
)
|
|
|
(
|
)
|
|
|||||||||||||
Recoveries credited to allowance
|
|
|
|
|
|
|||||||||||||||
Loans charged against the allowance
|
(
|
)
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||||
Balance at end of period
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(1)
|
|
|
2021
|
2020
|
||||||||||||||
|
Allowance
for Credit
Losses
Amount
|
Percent
of Loans
to Total
Portfolio Loans
|
Allowance
for Credit
Losses
Amount (1)
|
Percent
of Loans
to Total
Portfolio Loans
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
Commercial
|
$
|
|
|
%
|
$
|
|
|
%
|
||||||||
Mortgage
|
|
|
|
|
||||||||||||
Installment
|
|
|
|
|
||||||||||||
Subjective allocation
|
|
|
|
|
||||||||||||
Total
|
$
|
|
|
%
|
$
|
|
|
%
|
(1)
|
|
Commercial
|
Mortgage
|
Installment
|
Subjective
Allocation
|
Total
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
December 31, 2020
|
||||||||||||||||||||
ACL:
|
||||||||||||||||||||
Individually evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Collectively evaluated for impairment
|
|
|
|
|
|
|||||||||||||||
Loans acquired with deteriorated credit quality
|
|
|
|
|
|
|||||||||||||||
Total ending ACL
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Loans
|
||||||||||||||||||||
Individually evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Collectively evaluated for impairment
|
|
|
|
|
||||||||||||||||
Loans acquired with deteriorated credit quality
|
|
|
|
|
||||||||||||||||
Total loans recorded investment
|
|
|
|
|
||||||||||||||||
Accrued interest included in recorded investment
|
|
|
|
|
||||||||||||||||
Total loans
|
$
|
|
$
|
|
$
|
|
$
|
|
(1)
|
|
|
December 31, 2021
|
|||||||||||||||||||||||
|
Non-
Accrual
with no
Allowance
for Credit
Loss
|
Non-
Accrual
with an
Allowance
for Credit
Loss
|
Total
Non-
Accrual
|
90+ and
Still
Accruing
|
Total Non-
Performing
Loans
|
December 31,
2020
Total Non-
Performing
Loans (1)
|
||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||
Commercial
|
||||||||||||||||||||||||
Commercial and industrial (2)
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Commercial real estate
|
|
|
|
|
|
|
||||||||||||||||||
Mortgage
|
||||||||||||||||||||||||
1-4 family owner occupied - jumbo
|
|
|
|
|
|
|
||||||||||||||||||
1-4 family owner occupied - non-jumbo (3)
|
|
|
|
|
|
|
||||||||||||||||||
1-4 family non-owner occupied
|
|
|
|
|
|
|
||||||||||||||||||
1-4 family - 2nd lien
|
|
|
|
|
|
|
||||||||||||||||||
Resort lending
|
|
|
|
|
|
|
||||||||||||||||||
Installment
|
||||||||||||||||||||||||
Boat lending
|
|
|
|
|
|
|
||||||||||||||||||
Recreational vehicle lending
|
|
|
|
|
|
|
||||||||||||||||||
Other
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
|
||||||||||||||||||||||||
Accrued interest excluded from total
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
|
$
|
|
$
|
|
(1) |
|
(2) |
|
(3) |
|
|
Collateral Type
|
Allowance
|
||||||||||
|
Real
|
for
|
||||||||||
|
Estate
|
Other
|
Credit Losses
|
|||||||||
|
(In thousands)
|
|||||||||||
December 31, 2021
|
||||||||||||
Commercial
|
||||||||||||
Commercial and industrial
|
$
|
|
$
|
|
$ |
|
||||||
Commercial real estate
|
|
|
|
|||||||||
Mortgage
|
||||||||||||
1-4 family owner occupied - jumbo
|
|
|
|
|||||||||
1-4 family owner occupied - non-jumbo
|
|
|
|
|||||||||
1-4 family non-owner occupied
|
|
|
|
|||||||||
1-4 family - 2nd lien
|
|
|
|
|||||||||
Resort lending
|
|
|
|
|||||||||
Installment
|
||||||||||||
Boat lending
|
|
|
|
|||||||||
Recreational vehicle lending
|
|
|
|
|||||||||
Other
|
|
|
|
|||||||||
Total
|
$
|
|
$
|
|
$
|
|
||||||
|
||||||||||||
Accrued interest excluded from total
|
$
|
|
$
|
|
Loans Past Due
|
Loans not
|
Total
|
||||||||||||||||||||||
30-59 days
|
60-89 days
|
90+ days
|
Total
|
Past Due
|
Loans
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
2021
|
||||||||||||||||||||||||
Commercial
|
||||||||||||||||||||||||
Commercial and industrial
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Commercial real estate
|
|
|
|
|
|
|
||||||||||||||||||
Mortgage
|
||||||||||||||||||||||||
1-4 family owner occupied - jumbo
|
|
|
|
|
|
|
||||||||||||||||||
1-4 family owner occupied - non-jumbo
|
|
|
|
|
|
|
||||||||||||||||||
1-4 family non-owner occupied
|
|
|
|
|
|
|
||||||||||||||||||
1-4 family - 2nd lien
|
|
|
|
|
|
|
||||||||||||||||||
Resort lending
|
|
|
|
|
|
|
||||||||||||||||||
Installment
|
||||||||||||||||||||||||
Boat lending
|
|
|
|
|
|
|
||||||||||||||||||
Recreational vehicle lending
|
|
|
|
|
|
|
||||||||||||||||||
Other
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Accrued interest excluded from total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
2020
|
||||||||||||||||||||||||
Commercial
|
||||||||||||||||||||||||
Commercial and industrial
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Commercial real estate
|
|
|
|
|
|
|
||||||||||||||||||
Mortgage
|
||||||||||||||||||||||||
1-4 family owner occupied - jumbo
|
|
|
|
|
|
|
||||||||||||||||||
1-4 family owner occupied - non-jumbo
|
|
|
|
|
|
|
||||||||||||||||||
1-4 family non-owner occupied
|
|
|
|
|
|
|
||||||||||||||||||
1-4 family - 2nd lien
|
|
|
|
|
|
|
||||||||||||||||||
Resort lending
|
|
|
|
|
|
|
||||||||||||||||||
Installment
|
||||||||||||||||||||||||
Boat lending
|
|
|
|
|
|
|
||||||||||||||||||
Recreational vehicle lending
|
|
|
|
|
|
|
||||||||||||||||||
Other
|
|
|
|
|
|
|
||||||||||||||||||
Total recorded investment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Accrued interest included in recorded investment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
2020
|
||||
(In thousands)
|
||||
Impaired loans with no allocated ACL
|
||||
TDR
|
$
|
|
||
Non - TDR
|
|
|||
Impaired loans with an allocated ACL
|
||||
TDR - allowance based on collateral
|
|
|||
TDR - allowance based on present value cash flow
|
|
|||
Non - TDR - allowance based on collateral
|
|
|||
Total impaired loans
|
$
|
|
||
Amount of ACL allocated (1)
|
||||
TDR - allowance based on collateral
|
$
|
|
||
TDR - allowance based on present value cash flow
|
|
|||
Non - TDR - allowance based on collateral
|
|
|||
Total amount of ACL allocated
|
$
|
|
(1)
|
|
2020
|
||||||||||||
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
ACL (1) |
||||||||||
(In thousands)
|
||||||||||||
With no related ACL recorded:
|
||||||||||||
Commercial
|
||||||||||||
Commercial and industrial
|
$
|
|
$
|
|
$
|
|
||||||
Commercial real estate
|
|
|
|
|||||||||
Mortgage
|
||||||||||||
1-4 family owner occupied - jumbo
|
|
|
|
|||||||||
1-4 family owner occupied - non-jumbo
|
|
|
|
|||||||||
1-4 family non-owner occupied
|
|
|
|
|||||||||
1-4 family - 2nd lien
|
|
|
|
|||||||||
Resort lending
|
|
|
|
|||||||||
Installment
|
||||||||||||
Boat lending
|
|
|
|
|||||||||
Recreational vehicle lending
|
|
|
|
|||||||||
Other
|
|
|
|
|||||||||
|
|
|
With an ACL recorded:
|
||||||||||||
Commercial
|
||||||||||||
Commercial and industrial
|
|
|
|
|
||||||||
Commercial real estate
|
|
|
|
|||||||||
Mortgage
|
||||||||||||
1-4 family owner occupied - jumbo
|
|
|
|
|||||||||
1-4 family owner occupied - non-jumbo
|
|
|
|
|||||||||
1-4 family non-owner occupied
|
|
|
|
|||||||||
1-4 family - 2nd lien
|
|
|
|
|||||||||
Resort lending
|
|
|
|
|||||||||
Installment
|
||||||||||||
Boat lending
|
|
|
|
|||||||||
Recreational vehicle lending
|
|
|
|
|||||||||
Other
|
|
|
|
|||||||||
|
|
|
||||||||||
Total
|
||||||||||||
Commercial
|
||||||||||||
Commercial and industrial
|
|
|
|
|||||||||
Commercial real estate
|
|
|
|
|||||||||
Mortgage
|
||||||||||||
1-4 family owner occupied - jumbo
|
|
|
|
|||||||||
1-4 family owner occupied - non-jumbo
|
|
|
|
|||||||||
1-4 family non-owner occupied
|
|
|
|
|||||||||
1-4 family - 2nd lien
|
|
|
|
|||||||||
Resort lending
|
|
|
|
|||||||||
Installment
|
||||||||||||
Boat lending
|
|
|
|
|||||||||
Recreational vehicle lending
|
|
|
|
|||||||||
Other
|
|
|
|
|||||||||
Total
|
$
|
|
$
|
|
$
|
|
||||||
Accrued interest included in recorded investment
|
$
|
|
(1)
|
|
2020
|
2019
|
|||||||||||||||
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
|||||||||||||
(In thousands)
|
||||||||||||||||
With no related ACL recorded:
|
||||||||||||||||
Commercial
|
||||||||||||||||
Commercial and industrial
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Commercial real estate
|
|
|
|
|
||||||||||||
Mortgage
|
||||||||||||||||
1-4 family owner occupied - jumbo
|
|
|
|
|
||||||||||||
1-4 family owner occupied - non-jumbo
|
|
|
|
|
||||||||||||
1-4 family non-owner occupied
|
|
|
|
|
||||||||||||
1-4 family - 2nd lien
|
|
|
|
|
||||||||||||
Resort lending
|
|
|
|
|
||||||||||||
Installment
|
||||||||||||||||
Boat lending
|
|
|
|
|
||||||||||||
Recreational vehicle lending
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
|
|
|
|
|||||||||||||
With an a ACL recorded:
|
||||||||||||||||
Commercial
|
||||||||||||||||
Commercial and industrial
|
|
|
|
|
||||||||||||
Commercial real estate
|
|
|
|
|
||||||||||||
Mortgage
|
||||||||||||||||
1-4 family owner occupied - jumbo
|
|
|
|
|
||||||||||||
1-4 family owner occupied - non-jumbo
|
|
|
|
|
||||||||||||
1-4 family non-owner occupied
|
|
|
|
|
||||||||||||
1-4 family - 2nd lien
|
|
|
|
|
||||||||||||
Resort lending
|
|
|
|
|
||||||||||||
Installment
|
||||||||||||||||
Boat lending
|
|
|
|
|
||||||||||||
Recreational vehicle lending
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
|
|
|
|
|||||||||||||
Total
|
||||||||||||||||
Commercial
|
||||||||||||||||
Commercial and industrial
|
|
|
|
|
||||||||||||
Commercial real estate
|
|
|
|
|
||||||||||||
Mortgage
|
||||||||||||||||
1-4 family owner occupied - jumbo
|
|
|
|
|
||||||||||||
1-4 family owner occupied - non-jumbo
|
|
|
|
|
||||||||||||
1-4 family non-owner occupied
|
|
|
|
|
||||||||||||
1-4 family - 2nd lien
|
|
|
|
|
||||||||||||
Resort lending
|
|
|
|
|
||||||||||||
Installment
|
||||||||||||||||
Boat lending
|
|
|
|
|
||||||||||||
Recreational vehicle lending
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
(1)
|
|
2021
|
||||||||||||
Commercial
|
Retail (1)
|
Total
|
||||||||||
(In thousands)
|
||||||||||||
Performing TDR’s
|
$
|
|
$
|
|
$
|
|
||||||
Non-performing TDR’s (2)
|
|
|
(3)
|
|
||||||||
Total
|
$
|
|
$
|
|
$
|
|
2020
|
||||||||||||
Commercial
|
Retail (1)
|
Total
|
||||||||||
(In thousands)
|
||||||||||||
Performing TDR’s
|
$
|
|
$
|
|
$
|
|
||||||
Non-performing TDR’s (2)
|
|
|
(3)
|
|
||||||||
Total
|
$
|
|
$
|
|
$
|
|
(1) |
|
(2) |
|
(3) |
|
Number of
Contracts
|
Pre-modification
Recorded
Balance
|
Post-modification
Recorded
Balance
|
||||||||||
|
||||||||||||
2020
|
||||||||||||
Commercial
|
||||||||||||
Commercial and industrial
|
|
$
|
|
$
|
|
|||||||
Commercial real estate
|
|
|
|
|||||||||
Mortgage
|
||||||||||||
1-4 family owner occupied - jumbo
|
|
|
|
|||||||||
1-4 family owner occupied - non-jumbo
|
|
|
|
|||||||||
1-4 family non-owner occupied
|
|
|
|
|||||||||
1-4 family - 2nd lien
|
|
|
|
|||||||||
Resort lending
|
|
|
|
|||||||||
Installment
|
||||||||||||
Boat lending
|
|
|
|
|||||||||
Recreational vehicle lending
|
|
|
|
|||||||||
Other
|
|
|
|
|||||||||
Total
|
|
$
|
|
$
|
|
Number of
Contracts
|
Pre-modification
Recorded
Balance
|
Post-modification
Recorded
Balance
|
||||||||||
(Dollars in thousands)
|
||||||||||||
2019
|
||||||||||||
Commercial
|
||||||||||||
Commercial and industrial
|
|
$
|
|
$
|
|
|||||||
Commercial real estate
|
|
|
|
|||||||||
Mortgage
|
||||||||||||
1-4 family owner occupied - jumbo
|
|
|
|
|||||||||
1-4 family owner occupied - non-jumbo
|
|
|
|
|||||||||
1-4 family non-owner occupied
|
|
|
|
|||||||||
1-4 family - 2nd lien
|
|
|
|
|||||||||
Resort lending
|
|
|
|
|||||||||
Installment
|
||||||||||||
Boat lending
|
|
|
|
|||||||||
Recreational vehicle lending
|
|
|
|
|||||||||
Other
|
|
|
|
|||||||||
Total
|
|
$
|
|
$
|
|
(1)
|
|
COVID-19 Accomodations
|
Total
|
% of Total
|
||||||||||||||
Loan Category
|
Amounts (#)
|
Amounts ($)
|
Loans
|
Loans
|
||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Commercial
|
|
$
|
|
$
|
|
|
%
|
|||||||||
Mortgage
|
|
|
|
|
%
|
|||||||||||
Installment
|
|
|
|
|
%
|
|||||||||||
Total
|
|
$
|
|
$
|
|
|
%
|
|||||||||
Mortgage loans serviced for others(1)
|
|
$
|
|
$
|
|
|
%
|
1) |
|
Loan Category
|
Amount (#)
|
Amount ($)
|
||||||
(Dollars in thousands)
|
||||||||
Commercial
|
|
$
|
|
|||||
Mortgage
|
|
|
||||||
Installment
|
|
|
||||||
Total
|
|
$
|
|
(1) |
|
|
2021
|
2020
|
||||||||||||||
|
Amount (#)
|
Amount ($)
|
Amount (#)
|
Amount ($)
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
Closed and outstanding - Round 1 loans
|
|
$
|
|
|
$
|
|
||||||||||
Closed and outstanding - Round 2 loans
|
|
|
|
|
||||||||||||
Total closed and outstanding
|
|
$
|
|
|
$
|
|
||||||||||
Unaccreted net fees remaining at period end
|
$
|
|
$
|
|
|
Commercial
|
|||||||||||||||||||||||||||||||
|
Term Loans Amortized Cost Basis by Origination Year
|
Revolving
Loans
Amortized
|
||||||||||||||||||||||||||||||
|
2021
|
2020
|
2019
|
2018
|
2017
|
Prior
|
Cost Basis
|
Total
|
||||||||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||||||||||
December 31, 2021
|
||||||||||||||||||||||||||||||||
Commercial and industrial
|
||||||||||||||||||||||||||||||||
Non-watch (1-6)
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Watch (7-8)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard Accrual (9)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Non-Accrual (10-11)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Accrued interest excluded from total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Commercial real estate
|
||||||||||||||||||||||||||||||||
Non-watch (1-6)
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Watch (7-8)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard Accrual (9)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Non-Accrual (10-11)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Accrued interest excluded from total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Total Commercial
|
||||||||||||||||||||||||||||||||
Non-watch (1-6)
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Watch (7-8)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard Accrual (9)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Non-Accrual (10-11)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Accrued interest excluded from total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Commercial
|
||||||||||||||||||||
Non-watch
1-6
|
Watch
7-8
|
Substandard
Accrual
9
|
Non-
Accrual
10-11
|
Total
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
December 31, 2020
|
||||||||||||||||||||
Commercial and industrial
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Commercial real estate
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Accrued interest included in total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Mortgage (1)
|
|||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year
|
Revolving
Loans
Amortized
|
||||||||||||||||||||||||||||||||
2021
|
2020
|
2019
|
2018
|
2017
|
Prior
|
Cost Basis
|
Total
|
||||||||||||||||||||||||||
(In thousands)
|
|||||||||||||||||||||||||||||||||
December 31, 2021
|
|||||||||||||||||||||||||||||||||
1-4 family owner occupied - jumbo
|
|||||||||||||||||||||||||||||||||
800 and above
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||||
750-799
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
700-749
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
650-699
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
600-649
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
550-599
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
500-549
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Under 500
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Unknown
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||||
Accrued interest excluded from total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||||
1-4 family owner occupied - non-jumbo
|
|||||||||||||||||||||||||||||||||
800 and above
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||||
750-799
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
700-749
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
650-699
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
600-649
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
550-599
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
500-549
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Under 500
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Unknown
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||||
Accrued interest excluded from total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||||
1-4 family
non-owner occupied
|
|||||||||||||||||||||||||||||||||
800 and above
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||||
750-799
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
700-749
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
650-699
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
600-649
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
550-599
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
500-549
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Under 500
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Unknown
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||||
Accrued interest excluded from total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||||
1-4 family - 2nd lien
|
|||||||||||||||||||||||||||||||||
800 and above
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||||
750-799
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
700-749
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
650-699
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
600-649
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
550-599
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
500-549
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Under 500
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Unknown
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||||
Accrued interest excluded from total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Mortgage - continued (1)
|
|||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year
|
Revolving
Loans
Amortized
|
||||||||||||||||||||||||||||||||
2021
|
2020
|
2019
|
2018
|
2017
|
Prior
|
Cost Basis
|
Total
|
||||||||||||||||||||||||||
(In thousands)
|
|||||||||||||||||||||||||||||||||
December 31, 2021
|
|||||||||||||||||||||||||||||||||
Resort lending
|
|||||||||||||||||||||||||||||||||
800 and above
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||||
750-799
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
700-749
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
650-699
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
600-649
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
550-599
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
500-549
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Under 500
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Unknown
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||||
Accrued interest excluded from total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||||
Total Mortgage
|
|||||||||||||||||||||||||||||||||
800 and above
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||||
750-799
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
700-749
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
650-699
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
600-649
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
550-599
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
500-549
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Under 500
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Unknown
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||||
Accrued interest excluded from total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(1)
|
Credit scores have been updated within the last twelve
months.
|
Installment (1)
|
|||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year
|
|||||||||||||||||||||||||||||
2021
|
2020
|
2019
|
2018
|
2017
|
Prior
|
Total
|
|||||||||||||||||||||||
(In thousands)
|
|||||||||||||||||||||||||||||
December 31, 2021
|
|||||||||||||||||||||||||||||
Boat lending
|
|||||||||||||||||||||||||||||
800 and above
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||
750-799
|
|
|
|
|
|
|
|
||||||||||||||||||||||
700-749
|
|
|
|
|
|
|
|
||||||||||||||||||||||
650-699
|
|
|
|
|
|
|
|
||||||||||||||||||||||
600-649
|
|
|
|
|
|
|
|
||||||||||||||||||||||
550-599
|
|
|
|
|
|
|
|
||||||||||||||||||||||
500-549
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Under 500
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Unknown
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||
Accrued interest excluded from total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||
Recreational vehicle lending
|
|||||||||||||||||||||||||||||
800 and above
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||
750-799
|
|
|
|
|
|
|
|
||||||||||||||||||||||
700-749
|
|
|
|
|
|
|
|
||||||||||||||||||||||
650-699
|
|
|
|
|
|
|
|
||||||||||||||||||||||
600-649
|
|
|
|
|
|
|
|
||||||||||||||||||||||
550-599
|
|
|
|
|
|
|
|
||||||||||||||||||||||
500-549
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Under 500
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Unknown
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||
Accrued interest excluded from total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||
Other
|
|||||||||||||||||||||||||||||
800 and above
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||
750-799
|
|
|
|
|
|
|
|
||||||||||||||||||||||
700-749
|
|
|
|
|
|
|
|
||||||||||||||||||||||
650-699
|
|
|
|
|
|
|
|
||||||||||||||||||||||
600-649
|
|
|
|
|
|
|
|
||||||||||||||||||||||
550-599
|
|
|
|
|
|
|
|
||||||||||||||||||||||
500-549
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Under 500
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Unknown
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||
Accrued interest excluded from total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||
Total installment
|
|||||||||||||||||||||||||||||
800 and above
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||
750-799
|
|
|
|
|
|
|
|
||||||||||||||||||||||
700-749
|
|
|
|
|
|
|
|
||||||||||||||||||||||
650-699
|
|
|
|
|
|
|
|
||||||||||||||||||||||
600-649
|
|
|
|
|
|
|
|
||||||||||||||||||||||
550-599
|
|
|
|
|
|
|
|
||||||||||||||||||||||
500-549
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Under 500
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Unknown
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||
Accrued interest excluded from total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(1)
|
|
Mortgage
|
||||||||||||||||||||||||
1-4 Family
Owner
Occupied -
Jumbo
|
1-4 Family
Owner
Occupied -
Non-jumbo
|
1-4 Family
Non-owner
Occupied
|
1-4 Family
2nd Lien
|
Resort
Lending
|
Total
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
December 31, 2020
|
||||||||||||||||||||||||
800 and above
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
_750-799
|
|
|
|
|
|
|
||||||||||||||||||
_700-749
|
|
|
|
|
|
|
||||||||||||||||||
_650-699
|
|
|
|
|
|
|
||||||||||||||||||
_600-649
|
|
|
|
|
|
|
||||||||||||||||||
_550-599
|
|
|
|
|
|
|
||||||||||||||||||
_500-549
|
|
|
|
|
|
|
||||||||||||||||||
Under 500
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Accrued interest included in total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Installment
|
||||||||||||||||
Boat Lending
|
Recreational
Vehicle
Lending
|
Other
|
Total
|
|||||||||||||
(In thousands)
|
||||||||||||||||
December 31, 2020
|
||||||||||||||||
800 and above
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
_750-799
|
|
|
|
|
||||||||||||
_700-749
|
|
|
|
|
||||||||||||
_650-699
|
|
|
|
|
||||||||||||
_600-649
|
|
|
|
|
||||||||||||
_550-599
|
|
|
|
|
||||||||||||
_500-549
|
|
|
|
|
||||||||||||
Under 500
|
|
|
|
|
||||||||||||
Unknown
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Accrued interest included in total
|
$
|
|
$
|
|
$
|
|
$
|
|
2021
|
2020
|
|||||||
(In thousands)
|
||||||||
Mortgage loans serviced for :
|
||||||||
Fannie Mae
|
$
|
|
$
|
|
||||
Freddie Mac
|
|
|
||||||
Ginnie Mae
|
|
|
||||||
FHLB
|
|
|
||||||
Other
|
|
|
||||||
Total
|
$
|
|
$
|
|
2021
|
2020
|
2019
|
||||||||||
(In thousands)
|
||||||||||||
Balance at beginning of period
|
$
|
|
$
|
|
$
|
|
||||||
Originated servicing rights capitalized
|
|
|
|
|||||||||
Change in fair value due to price
|
|
(
|
)
|
(
|
)
|
|||||||
Change in fair value due to pay downs
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Balance at end of year
|
$
|
|
$
|
|
$
|
|
||||||
Loans sold and serviced that have had servicing rights capitalized
|
$
|
|
$
|
|
$
|
|
2021
|
2020
|
2019
|
||||||||||
(In thousands)
|
||||||||||||
Balance at beginning of year, net of valuation allowance
|
$
|
|
$
|
|
$
|
|
||||||
Loans transferred to other real estate
|
|
|
|
|||||||||
Sales of other real estate
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Additions to valuation allowance charged to expense
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Balance at end of year, net of valuation allowance
|
$
|
|
$
|
|
$
|
|
(1) |
|
2021
|
2020
|
2019
|
||||||||||
(In thousands)
|
||||||||||||
Balance at beginning of year
|
$
|
|
$
|
|
$
|
|
||||||
Additions charged to expense
|
|
|
|
|||||||||
Direct write-downs upon sale
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Balance at end of year
|
$
|
|
$
|
|
$
|
|
2021
|
2020
|
|||||||
(In thousands)
|
||||||||
Land and land improvements
|
$
|
|
$
|
|
||||
Buildings
|
|
|
||||||
Equipment
|
|
|
||||||
|
|
|||||||
Accumulated depreciation and amortization
|
(
|
)
|
(
|
)
|
||||
Property and equipment, net
|
$
|
|
$
|
|
2021
|
2020
|
|||||||||||||||
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Amortized intangible assets - core deposits
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Unamortized intangible assets - goodwill
|
$
|
|
$
|
|
(In thousands)
|
||||
2022
|
$
|
|
||
2023
|
|
|||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
2027
and thereafter
|
|
|||
Total
|
$
|
|
2021
|
2020
|
2019
|
||||||||||
(In thousands)
|
||||||||||||
Savings and interest-bearing checking
|
$
|
|
$
|
|
$
|
|
||||||
Reciprocal
|
|
|
|
|||||||||
Time
|
|
|
|
|||||||||
Brokered time
|
|
|
|
|||||||||
Total
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
||||
2022
|
$
|
|
||
2023
|
|
|||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
2027
and thereafter
|
|
|||
Total
|
$
|
|
(1)
|
|
2021
|
2020
|
|||||||
(In thousands)
|
||||||||
Demand
|
$
|
|
$
|
|
||||
Money market
|
|
|
||||||
Time
|
|
|
||||||
Total
|
$
|
|
$
|
|
2021
|
2020
|
|||||||
(In thousands)
|
||||||||
Advances from the FHLB
|
$
|
|
$
|
|
||||
Other
|
|
|
||||||
Total
|
$
|
|
$
|
|
2021
|
2020
|
|||||||||||||||
Amount
|
Rate
|
Amount
|
Rate
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Fixed-rate advances - 2027 and thereafter
|
$ |
|
|
% | $ |
|
|
% |
2021
|
|||||||||||||
Entity Name
|
Issue
Date
|
||||||||||||
Subordinated
Debentures
|
Trust
Preferred
Securities
Issued
|
Common
Stock
Issued
|
|||||||||||
(In thousands)
|
|||||||||||||
IBC Capital Finance III
|
|
$
|
|
$
|
|
$
|
|
||||||
IBC Capital Finance IV
|
|
|
|
|
|||||||||
Midwest Guaranty Trust I
|
|
|
|
|
|||||||||
TCSB Statutory Trust I
|
|
|
|
|
|||||||||
Discount on TCSB Statutory Trust I
|
(
|
)
|
(
|
)
|
|
||||||||
$
|
|
$
|
|
$
|
|
2020
|
|||||||||||||
Entity Name
|
Issue
Date
|
||||||||||||
Subordinated
Debentures
|
Trust
Preferred
Securities
Issued
|
Common
Stock
Issued
|
|||||||||||
(In thousands)
|
|||||||||||||
IBC Capital Finance III
|
|
$
|
|
$
|
|
$
|
|
||||||
IBC Capital Finance IV
|
|
|
|
|
|||||||||
Midwest Guaranty Trust I
|
|
|
|
|
|||||||||
TCSB Statutory Trust I
|
|
|
|
|
|||||||||
Discount on TCSB Statutory Trust I
|
(
|
)
|
(
|
)
|
|
||||||||
$
|
|
$
|
|
$
|
|
Entity Name
|
Maturity
Date
|
Interest Rate
|
First Permitted
Redemption Date
|
|||
IBC Capital Finance III
|
|
|
|
|||
IBC Capital Finance IV
|
|
|
|
|||
Midwest Guaranty Trust I
|
|
|
|
|||
TCSB Statutory Trust I
|
|
|
|
2021
|
2020
|
|||||||
(In thousands)
|
||||||||
Financial instruments whose risk is represented by contract amounts
|
||||||||
Commitments to extend credit
|
$
|
|
$
|
|
||||
Standby letters of credit
|
|
|
• |
difficulties encountered by our business customers in addressing the effects of the pandemic may cause increases in loan delinquencies, foreclosures and defaults;
|
• |
increases in our allowance for credit losses may be necessary;
|
• |
declines in collateral values may occur;
|
• |
third party disruptions may occur, including outages at network providers, on-line banking
vendors and other suppliers;
|
• |
there is increased cyber and payment fraud risk, as cybercriminals attempt to profit from the disruption, given increased online and remote activity;
|
• |
we may experience operational failures due to changes in our normal business practices necessitated by the pandemic and related governmental actions; and/or
|
• |
our production and efficiency may suffer due to employee illnesses and/or employees having to work remotely.
|
% of
|
||||||||
Total
|
||||||||
Amount
|
Loans
|
|||||||
(Dollars in millions)
|
||||||||
Commercial and industrial:
|
||||||||
Retail
|
$
|
|
|
%
|
||||
Food service
|
|
|
||||||
Hotel
|
|
|
||||||
|
|
|||||||
Commercial real estate:
|
||||||||
Retail
|
|
|
||||||
Office
|
|
|
||||||
Multifamily
|
|
|
||||||
|
|
|||||||
Total
|
$
|
|
|
%
|
2021
|
2020
|
2019
|
||||||||||
(In thousands, except per share
amounts)
|
||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
||||||
Weighted average shares outstanding (1)
|
|
|
|
|||||||||
Stock units for deferred compensation plan for non-employee directors
|
|
|
|
|||||||||
Effect of stock options
|
|
|
|
|||||||||
Performance share units
|
|
|
|
|||||||||
Weighted average shares outstanding for calculation of diluted earnings per share
|
|
|
|
|||||||||
Net income per common share
|
||||||||||||
Basic (1)
|
$
|
|
$
|
|
$
|
|
||||||
Diluted
|
$
|
|
$
|
|
$
|
|
(1) |
|
2021
|
2020
|
2019
|
||||||||||
(In thousands)
|
||||||||||||
Current expense
|
$
|
|
$
|
|
$
|
|
||||||
Deferred expense (benefit)
|
|
(
|
)
|
|
||||||||
Income tax expense
|
$
|
|
$
|
|
$
|
|
2021
|
2020
|
2019
|
||||||||||
(In thousands)
|
||||||||||||
Statutory rate applied to income before income tax
|
$
|
|
$
|
|
$
|
|
||||||
Tax-exempt income
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Share-based compensation
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Bank owned life insurance
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Unrecognized tax benefit
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Non-deductible meals, entertainment and memberships
|
|
|
|
|||||||||
Other, net
|
(
|
)
|
(
|
)
|
|
|||||||
Income tax expense
|
$
|
|
$
|
|
$
|
|
2021
|
2020
|
|||||||
(In thousands)
|
||||||||
Deferred tax assets
|
||||||||
Allowance for credit losses (1)
|
$
|
|
$
|
|
||||
Property and equipment
|
|
|
||||||
Lease liabilities
|
|
|
||||||
Reserve for unfunded lending commitments
|
|
|
||||||
Share-based compensation
|
|
|
||||||
Deferred compensation
|
|
|
||||||
Loss reimbursement on sold loans reserve
|
|
|
||||||
Non accrual loan interest income
|
|
|
||||||
Other than temporary impairment charge on securities available for sale
|
|
|
||||||
Other
|
|
|
||||||
Gross deferred tax assets
|
|
|
||||||
Deferred tax liabilities
|
||||||||
Capitalized mortgage loan servicing rights
|
|
|
||||||
Deferred loan fees
|
|
|
||||||
Unrealized gain on securities available for sale
|
|
|
||||||
Lease right of use asset
|
|
|
||||||
Purchase premiums, net
|
|
|
||||||
Other
|
|
|
||||||
Gross deferred tax liabilities
|
|
|
||||||
Deferred tax assets, net (2)
|
$
|
|
$
|
|
(1)
|
|
(2)
|
2021
|
2020
|
2019
|
||||||||||
(In thousands)
|
||||||||||||
Balance at beginning of year
|
$
|
|
$
|
|
$
|
|
||||||
Additions based on tax positions related to the current year
|
|
|
|
|||||||||
Reductions due to the statute of limitations
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Reductions due to settlements
|
|
|
|
|||||||||
Balance at end of year
|
$
|
|
$
|
|
$
|
|
Number of
Shares
|
Average
Exercise
Price
|
Weighted-
Average
Remaining
Contractual
Term (Years)
|
Aggregated
Intrinsic
Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Outstanding at January 1,2021
|
|
$
|
|
|||||||||||||
Granted
|
|
|||||||||||||||
Exercised
|
(
|
)
|
|
|||||||||||||
Forfeited
|
|
|||||||||||||||
Expired
|
|
|||||||||||||||
Outstanding at December 31, 2021
|
|
$
|
|
|
$
|
|
||||||||||
Vested and expected to vest at December 31, 2021
|
|
$
|
|
|
$
|
|
||||||||||
Exercisable at December 31, 2021
|
|
$
|
|
|
$
|
|
Number
of Shares
|
Weighted-
Average
Grant Date
Fair Value
|
|||||||
Outstanding at January 1, 2021
|
|
$
|
|
|||||
Granted
|
|
|
||||||
Vested
|
(
|
)
|
|
|||||
Forfeited
|
(
|
)
|
|
|||||
Outstanding at December 31, 2021
|
|
$
|
|
2021
|
2020
|
2019
|
||||||||||
(In thousands)
|
||||||||||||
Intrinsic value
|
$
|
|
$
|
|
$
|
|
||||||
Cash proceeds received
|
$
|
|
$
|
|
$
|
|
||||||
Tax benefit realized
|
$
|
|
$
|
|
$
|
|
2021
|
2020
|
2019
|
||||||||||
(In thousands)
|
||||||||||||
Investment and insurance commissions
|
$
|
|
$
|
|
$
|
|
||||||
ATM fees
|
|
|
|
|||||||||
Bank owned life insurance
|
|
|
|
|||||||||
Other
|
|
|
|
|||||||||
Total other non-interest income
|
$
|
|
$
|
|
$
|
|
2021
|
||||||||||||
Notional
Amount
|
Average
Maturity
(years)
|
Fair
Value
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Fair value hedge designation
|
||||||||||||
Pay-fixed interest rate swap agreements - commercial
|
$
|
|
|
$
|
(
|
)
|
||||||
Pay-fixed interest rate swap agreements - securities available for sale
|
|
|
|
|||||||||
Total
|
$
|
|
|
$
|
|
|||||||
No hedge designation
|
||||||||||||
Rate-lock mortgage loan commitments
|
$
|
|
|
$
|
|
|||||||
Mandatory commitments to sell mortgage loans
|
|
|
(
|
)
|
||||||||
Interest rate swaption agreement
|
||||||||||||
Pay-fixed interest rate swap agreements - commercial
|
|
|
(
|
)
|
||||||||
Pay-variable interest rate swap agreements - commercial
|
|
|
|
|||||||||
Interest rate cap agreements
|
|
|
|
|||||||||
Total
|
$
|
|
|
$
|
|
2020
|
||||||||||||
Notional
Amount
|
Average
Maturity
(years)
|
Fair
Value
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Fair value hedge designation
|
||||||||||||
Pay-fixed interest rate swap agreements - commercial
|
$
|
|
|
$
|
(
|
)
|
||||||
Pay-fixed interest rate swap agreements - securities available for sale
|
|
|
|
|||||||||
Total
|
$
|
|
|
$
|
(
|
)
|
||||||
No hedge designation
|
||||||||||||
Rate-lock mortgage loan commitments
|
$
|
|
|
$
|
|
|||||||
Mandatory commitments to sell mortgage loans
|
|
|
(
|
)
|
||||||||
Pay-fixed interest rate swap agreements - commercial
|
|
|
(
|
)
|
||||||||
Pay-variable interest rate swap agreements - commercial
|
|
|
|
|||||||||
Pay-fixed interest rate swap agreements
|
( |
) | ||||||||||
Interest rate cap agreements
|
||||||||||||
Purchased options
|
|
|
|
|||||||||
Written options
|
|
|
(
|
)
|
||||||||
Total
|
$
|
|
|
$
|
|
Asset Derivatives
|
Liability Derivatives
|
|||||||||||||||||||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||||||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||||||||||||||||||
Balance
Sheet
Location
|
Fair
Value
|
Balance
Sheet
Location
|
Fair
Value
|
Balance
Sheet
Location
|
Fair
Value
|
Balance
Sheet
Location
|
Fair
Value
|
|||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||
Pay-fixed interest rate swap agreements
|
Other assets
|
$
|
|
Other assets
|
$
|
|
Other liabilities
|
$
|
|
Other liabilities
|
$
|
|
||||||||||||||||||||
Derivatives not designated as hedging instruments
|
||||||||||||||||||||||||||||||||
Rate-lock mortgage loan commitments
|
Other assets
|
$ |
|
Other assets
|
$ |
|
Other liabilities
|
$
|
|
Other liabilities
|
$ |
|
||||||||||||||||||||
Mandatory commitments to sell mortgage loans
|
Other assets
|
|
Other assets
|
|
Other liabilities
|
|
Other liabilities
|
|
||||||||||||||||||||||||
Interest rate swaption agreement
|
Other assets
|
Other assets
|
Other liabilities
|
Other liabilities
|
||||||||||||||||||||||||||||
Pay-fixed interest rate swap agreements - commercial
|
Other assets
|
|
Other assets
|
|
Other liabilities
|
|
Other liabilities
|
|
||||||||||||||||||||||||
Pay-variable interest rate swap agreements - commercial
|
Other assets
|
|
Other assets
|
|
Other liabilities
|
|
Other liabilities
|
|
||||||||||||||||||||||||
Pay-fixed interest rate swap agreements
|
Other assets
|
|
Other assets
|
|
Other liabilities
|
|
Other liabilities
|
|
||||||||||||||||||||||||
Interest rate cap agreements
|
Other assets
|
|
Other assets
|
|
Other liabilities
|
|
Other liabilities
|
|
||||||||||||||||||||||||
Purchased options
|
Other assets
|
|
Other assets
|
|
Other liabilities
|
|
Other liabilities
|
|
||||||||||||||||||||||||
Written options
|
Other assets
|
|
Other assets
|
|
Other liabilities
|
|
Other liabilities
|
|
||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||
Total derivatives
|
$
|
|
$
|
|
$
|
|
$
|
|
Year Ended December 31,
|
||||||||||||||||||||||||||||||||||||||
Gain (loss) Recognized
in Other
Comprehensive
Income (Loss)
(Effective Portion)
|
Location of
Gain (Loss)
Reclassified
from
Accumulated
Other
Comprehensive
Income
into Income
(Effective
Portion)
|
Gain (Loss)
Reclassified from
Accumulated Other
Comprehensive
Income into Income
(Effective Portion)
|
Location of
Gain (Loss)
Recognized
in Income
|
Gain (Loss)
Recognized
in Income
|
||||||||||||||||||||||||||||||||||
2021
|
2020
|
2019
|
2021
|
2020
|
2019
|
2021
|
2020
|
2019
|
||||||||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||||||||
Fair Value Hedges
|
||||||||||||||||||||||||||||||||||||||
Pay-fixed interest rate swap agreement - commercial
|
Interest and fees on loans
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||||||||||||||||||||||||||
Pay-fixed interest rate swap agreement - securities available for sale
|
Interest on securities available for sale - tax-exempt
|
|
|
|
||||||||||||||||||||||||||||||||||
Total
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
||||||||||||||||||||||||||||||
Cash Flow Hedges
|
||||||||||||||||||||||||||||||||||||||
Interest rate cap agreements
|
$
|
|
$
|
|
$
|
(
|
)
|
Interest expense
|
$
|
|
$
|
(
|
)
|
$
|
|
|
||||||||||||||||||||||
Pay-fixed interest rate swap agreements
|
|
(
|
)
|
(
|
)
|
Interest expense
|
|
(
|
)
|
|
|
|||||||||||||||||||||||||||
Total
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||||||||||||||||
No hedge designation
|
||||||||||||||||||||||||||||||||||||||
Rate-lock mortgage loan commitments
|
Net gains on mortgage loans
|
$ | ( |
) |
$ | $ | ||||||||||||||||||||||||||||||||
Mandatory commitments to sell mortgage loans
|
Net gains on mortgage loans
|
( |
) |
|||||||||||||||||||||||||||||||||||
Interest rate swaption agreement
|
Net gains on mortgage loans
|
( |
) |
|||||||||||||||||||||||||||||||||||
Pay-fixed interest rate swap agreements - commercial
|
Interest income
|
( |
) |
( |
) |
|||||||||||||||||||||||||||||||||
Pay-variable interest rate swap agreements -commercial
|
Interest income
|
( |
) |
|||||||||||||||||||||||||||||||||||
Pay-fixed interest rate swap agreements
|
Interest expense
|
|||||||||||||||||||||||||||||||||||||
Interest rate cap agreements
|
Interest expense
|
( |
) |
|||||||||||||||||||||||||||||||||||
Purchased options
|
Interest expense
|
( |
) |
( |
) |
|||||||||||||||||||||||||||||||||
Written options
|
Interest expense
|
( |
) |
|||||||||||||||||||||||||||||||||||
Total
|
$ | ( |
) | $ | $ |
2021
|
2020
|
|||||||
(In thousands)
|
||||||||
Balance at beginning of year
|
$
|
|
$
|
|
||||
New loans and advances
|
|
|
||||||
Repayments
|
(
|
)
|
(
|
)
|
||||
Balance at end of year
|
$
|
|
$
|
|
2021
|
2020
|
2019
|
||||||||||
(In thousands)
|
||||||||||||
Operating lease cost
|
$
|
|
$
|
|
$
|
|
||||||
Variable lease cost
|
|
|
|
|||||||||
Short-term lease cost
|
|
|
|
|||||||||
Total
|
$
|
|
$
|
|
$
|
|
2021
|
2020
|
|||||||
(In thousands)
|
||||||||
Lease right of use asset (1)
|
$
|
|
$
|
|
||||
Lease liabilities (2)
|
$
|
|
$
|
|
||||
Weighted average remaining lease term (years)
|
|
|
||||||
Weighted average discount rate
|
|
%
|
|
%
|
(1) |
|
(2) |
|
(In thousands)
|
||||
2022
|
$
|
|
||
2023
|
|
|||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
2027
and thereafter
|
|
|||
Total lease payments
|
|
|||
Less imputed interest
|
(
|
)
|
||
Total
|
$
|
|
Actual
|
Minimum for
Adequately Capitalized
Institutions
|
Minimum for
Well-Capitalized
Institutions
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
2021
|
||||||||||||||||||||||||
Total capital to risk-weighted assets
|
||||||||||||||||||||||||
Consolidated
|
$
|
|
|
%
|
$
|
|
|
%
|
NA
|
NA
|
||||||||||||||
Independent Bank
|
|
|
|
|
$
|
|
|
%
|
||||||||||||||||
Tier 1 capital to risk-weighted assets
|
||||||||||||||||||||||||
Consolidated
|
$
|
|
|
%
|
$
|
|
|
%
|
NA
|
NA
|
||||||||||||||
Independent Bank
|
|
|
|
|
$
|
|
|
%
|
||||||||||||||||
Common equity tier 1 capital to risk-weighted assets
|
||||||||||||||||||||||||
Consolidated
|
$
|
|
|
%
|
$
|
|
|
%
|
NA
|
NA
|
||||||||||||||
Independent Bank
|
|
|
|
|
$
|
|
|
%
|
||||||||||||||||
Tier 1 capital to average assets
|
||||||||||||||||||||||||
Consolidated
|
$
|
|
|
%
|
$
|
|
|
%
|
NA
|
NA
|
||||||||||||||
Independent Bank
|
|
|
|
|
$
|
|
|
%
|
||||||||||||||||
2020
|
||||||||||||||||||||||||
Total capital to risk-weighted assets
|
||||||||||||||||||||||||
Consolidated
|
$
|
|
|
%
|
$
|
|
|
%
|
NA
|
NA
|
||||||||||||||
Independent Bank
|
|
|
|
|
$
|
|
|
%
|
||||||||||||||||
Tier 1 capital to risk-weighted assets
|
||||||||||||||||||||||||
Consolidated
|
$
|
|
|
%
|
$
|
|
|
%
|
NA
|
NA
|
||||||||||||||
Independent Bank
|
|
|
|
|
$
|
|
|
%
|
||||||||||||||||
Common equity tier 1 capital to risk-weighted assets
|
||||||||||||||||||||||||
Consolidated
|
$
|
|
|
%
|
$
|
|
|
%
|
NA
|
NA
|
||||||||||||||
Independent Bank
|
|
|
|
|
$
|
|
|
%
|
||||||||||||||||
Tier 1 capital to average assets
|
||||||||||||||||||||||||
Consolidated
|
$
|
|
|
%
|
$
|
|
|
%
|
NA
|
NA
|
||||||||||||||
Independent Bank
|
|
|
|
|
$
|
|
|
%
|
(1)
|
|
Consolidated
|
Independent Bank
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Total shareholders’ equity
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Add (deduct)
|
||||||||||||||||
Accumulated other comprehensive loss for regulatory purposes
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Goodwill and other intangibles
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
CECL (1)
|
||||||||||||||||
Common equity tier 1 capital
|
|
|
|
|
||||||||||||
Qualifying trust preferred securities
|
|
|
|
|
||||||||||||
Tier 1 capital
|
|
|
|
|
||||||||||||
Subordinated debt
|
|
|
|
|
||||||||||||
Allowance for credit losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted
assets (2)
|
|
|
|
|
||||||||||||
Total risk-based capital
|
$
|
|
$
|
|
$
|
|
$
|
|
(1)
|
|
(2)
|
|
Fair Value Measurements Using
|
||||||||||||||||
Fair Value
Measure-
ments
|
Quoted Prices
in Active
Markets
for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Un-
observable
Inputs
(Level 3)
|
|||||||||||||
(In thousands)
|
||||||||||||||||
December 31, 2021:
|
||||||||||||||||
Measured at Fair Value on a Recurring Basis
|
||||||||||||||||
Assets
|
||||||||||||||||
Securities available for sale
|
||||||||||||||||
U.S. agency
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
U.S. agency residential mortgage-backed
|
|
|
|
|
||||||||||||
U.S. agency commercial mortgage-backed
|
|
|
|
|
||||||||||||
Private label mortgage-backed
|
|
|
|
|
||||||||||||
Other asset backed
|
|
|
|
|
||||||||||||
Obligations of states and political subdivisions
|
|
|
|
|
||||||||||||
Corporate
|
|
|
|
|
||||||||||||
Trust preferred
|
|
|
|
|
||||||||||||
Foreign government
|
|
|
|
|
||||||||||||
Loans held for sale, carried at fair value
|
|
|
|
|
||||||||||||
Capitalized mortgage loan servicing rights
|
|
|
|
|
||||||||||||
Derivatives (1)
|
|
|
|
|
||||||||||||
Liabilities
|
||||||||||||||||
Derivatives (2)
|
|
|
|
|
||||||||||||
Measured at Fair Value on a Non-recurring Basis:
|
||||||||||||||||
Assets
|
||||||||||||||||
Collateral dependent loans (3)
|
||||||||||||||||
Commercial
|
||||||||||||||||
Commercial and industrial
|
|
|
|
|
||||||||||||
Commercial real estate
|
|
|
|
|
||||||||||||
Mortgage
|
||||||||||||||||
1-4 family owner occupied - non-jumbo
|
|
|
|
|
||||||||||||
1-4 family non-owner occupied
|
|
|
|
|
||||||||||||
1-4 family - 2nd lien
|
|
|
|
|
||||||||||||
Resort lending
|
|
|
|
|
||||||||||||
Installment
|
||||||||||||||||
Boat lending
|
|
|
|
|
||||||||||||
Recreational vehicle lending
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
(1) |
|
(2) |
|
(3) |
|
Fair Value Measurements Using
|
||||||||||||||||
Fair Value
Measure-
ments
|
Quoted Prices
in Active
Markets
for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Un-
observable
Inputs
(Level 3)
|
|||||||||||||
(In thousands)
|
||||||||||||||||
December 31, 2020:
|
||||||||||||||||
Measured at Fair Value on a Recurring Basis
|
||||||||||||||||
Assets
|
||||||||||||||||
Securities available for sale
|
||||||||||||||||
U.S. agency
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
U.S. agency residential mortgage-backed
|
|
|
|
|
||||||||||||
U.S. agency commercial mortgage-backed
|
|
|
|
|
||||||||||||
Private label mortgage-backed
|
|
|
|
|
||||||||||||
Other asset backed
|
|
|
|
|
||||||||||||
Obligations of states and political subdivisions
|
|
|
|
|
||||||||||||
Corporate
|
|
|
|
|
||||||||||||
Trust preferred
|
|
|
|
|
||||||||||||
Foreign government
|
|
|
|
|
||||||||||||
Loans held for sale, carried at fair value
|
|
|
|
|
||||||||||||
Capitalized mortgage loan servicing rights
|
|
|
|
|
||||||||||||
Derivatives (1)
|
|
|
|
|
||||||||||||
Liabilities
|
||||||||||||||||
Derivatives (2)
|
|
|
|
|
||||||||||||
Measured at Fair Value on a Non-recurring Basis:
|
||||||||||||||||
Assets
|
||||||||||||||||
Impaired loans (3)
|
||||||||||||||||
Commercial
|
||||||||||||||||
Commercial and industrial
|
|
|
|
|
||||||||||||
Commercial real estate
|
|
|
|
|
||||||||||||
Mortgage
|
||||||||||||||||
1-4 family owner occupied - jumbo
|
|
|
|
|
||||||||||||
1-4 family owner occupied - non-jumbo
|
|
|
|
|
||||||||||||
1-4 family non-owner occupied
|
|
|
|
|
||||||||||||
1-4 family - 2nd lien
|
|
|
|
|
||||||||||||
Resort lending
|
|
|
|
|
||||||||||||
Installment
|
||||||||||||||||
Boat lending
|
|
|
|
|
||||||||||||
Recreational vehicle lending
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Other real estate (4)
|
||||||||||||||||
1-4 family owner occupied - non-jumbo
|
|
|
|
|
(1) |
|
(2) |
|
(3) |
|
(4) |
|
Net Gains (Losses)
on Assets
|
Total
Change
in Fair
Values
Included
|
|||||||||||||||
Securities
Available
For Sale
|
Mortgage
Loans
|
Mortgage
Loan
Servicing, net
|
in Current
Period
Earnings
|
|||||||||||||
(In thousands)
|
||||||||||||||||
2021
|
||||||||||||||||
Loans held for sale
|
$
|
-
|
$
|
(
|
$
|
-
|
$
|
(
|
||||||||
Capitalized mortgage loan servicing rights
|
-
|
-
|
(
|
)
|
(
|
)
|
||||||||||
2020
|
||||||||||||||||
Loans held for sale
|
-
|
|
-
|
|
||||||||||||
Capitalized mortgage loan servicing rights
|
-
|
-
|
(
|
)
|
(
|
)
|
||||||||||
2019
|
||||||||||||||||
Equity securities at fair value
|
|
|
|
-
|
|
-
|
|
|
||||||||
Loans held for sale
|
-
|
|
-
|
|
||||||||||||
Capitalized mortgage loan servicing rights
|
-
|
-
|
(
|
)
|
(
|
)
|
• |
Loans that are individually evaluated using the fair value of collateral for collateral
dependent loans had a carrying amount of $
|
• |
Other real estate, which is measured using the fair value of the property, had a carrying
amount of
|
Capitalized Mortgage
Loan Servicing Rights
|
||||||||||||
2021
|
2020
|
2019
|
||||||||||
(In thousands)
|
||||||||||||
Beginning balance
|
$
|
|
$
|
|
$
|
|
||||||
Total losses realized and unrealized:
|
||||||||||||
Included in results of operations
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Included in other comprehensive income (loss)
|
|
|
|
|||||||||
Purchases, issuances, settlements, maturities and calls
|
|
|
|
|||||||||
Transfers in and/or out of Level 3
|
|
|
|
|||||||||
Ending balance
|
$
|
|
$
|
|
$
|
|
||||||
Amount of total losses for the period included in earnings attributable to the change in unrealized losses
relating to assets and liabilities still held at December 31
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
Asset
Fair
Value
|
Valuation
Technique
|
Unobservable
Inputs
|
Range
|
Weighted
Average
|
||||||||||||||||
(In thousands)
|
-
|
-
|
-
|
-
|
||||||||||||||||
2021
|
||||||||||||||||||||
Capitalized mortgage loan servicing rights
|
$
|
|
Present value of net
|
Discount rate
|
|
%
|
|
%
|
||||||||||||
servicing revenue
|
Cost to service
|
$
|
|
$
|
|
|||||||||||||||
Ancillary income
|
|
|
||||||||||||||||||
Float rate
|
|
%
|
|
%
|
||||||||||||||||
Prepayment rate
|
|
%
|
|
%
|
||||||||||||||||
2020
|
||||||||||||||||||||
Capitalized mortgage loan servicing rights
|
$
|
|
Present value of net
|
Discount rate
|
|
%
|
|
%
|
||||||||||||
servicing revenue
|
Cost to service
|
$
|
|
$
|
|
|||||||||||||||
Ancillary income
|
|
|
||||||||||||||||||
Float rate
|
|
%
|
|
%
|
||||||||||||||||
Prepayment rate
|
|
%
|
|
%
|
Asset
Fair
Value
|
Valuation
Technique
|
Unobservable
Inputs
|
Range
|
Weighted
Average
|
||||||||||||||||
(In thousands)
|
-
|
-
|
-
|
-
|
||||||||||||||||
2021
|
||||||||||||||||||||
Collateral dependent loans
|
||||||||||||||||||||
Commercial
|
$
|
|
Sales comparison
|
Adjustment for differences
|
||||||||||||||||
approach
|
between comparable sales
|
(
|
%
|
|
%
|
|||||||||||||||
Mortgage and Installment (1)
|
|
Sales comparison
|
Adjustment for differences
|
|||||||||||||||||
approach
|
between comparable sales
|
(
|
|
|||||||||||||||||
Other real estate
|
||||||||||||||||||||
2020
|
||||||||||||||||||||
Impaired loans
|
||||||||||||||||||||
Commercial
|
$
|
|
Sales comparison
|
Adjustment for differences
|
||||||||||||||||
approach
|
between comparable sales
|
(
|
%
|
|
%
|
|||||||||||||||
Mortgage and Installment (1)
|
|
Sales comparison
|
Adjustment for differences
|
|||||||||||||||||
approach
|
between comparable sales
|
(
|
(
|
)
|
||||||||||||||||
Other real estate
|
||||||||||||||||||||
Mortgage
|
|
Sales comparison
|
Adjustment for differences
|
|||||||||||||||||
approach
|
between comparable sales
|
(
|
(
|
)
|
(1) |
|
Aggregate
Fair Value
|
Difference
|
Contractual
Principal
|
||||||||||
(In thousands)
|
||||||||||||
Loans held for sale
|
||||||||||||
2021
|
$
|
|
$
|
|
$
|
|
||||||
2020
|
|
|
|
|||||||||
2019
|
|
|
|
Fair Value Using
|
||||||||||||||||||||
Recorded
Book
Balance
|
Fair Value
|
Quoted
Prices
in Active
Markets
for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Un-
observable
Inputs
(Level 3)
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
2021
|
||||||||||||||||||||
Assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Interest bearing deposits
|
|
|
|
|
|
|||||||||||||||
Securities available for sale
|
|
|
|
|
|
|||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank Stock
|
|
NA
|
NA
|
NA
|
NA
|
|||||||||||||||
Net loans and loans held for sale
|
|
|
|
|
|
|||||||||||||||
Accrued interest receivable
|
|
|
|
|
|
|||||||||||||||
Derivative financial instruments
|
|
|
|
|
|
|||||||||||||||
Liabilities
|
||||||||||||||||||||
Deposits with no stated maturity (1)
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Deposits with stated maturity (1)
|
|
|
|
|
|
|||||||||||||||
Other borrowings
|
|
|
|
|
|
|||||||||||||||
Subordinated debt
|
|
|
|
|
|
|||||||||||||||
Subordinated debentures
|
|
|
|
|
|
|||||||||||||||
Accrued interest payable
|
|
|
|
|
|
|||||||||||||||
Derivative financial instruments
|
|
|
|
|
|
|||||||||||||||
2020
|
||||||||||||||||||||
Assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Interest bearing deposits
|
|
|
|
|
|
|||||||||||||||
Securities available for sale
|
|
|
|
|
|
|||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank Stock
|
|
NA
|
NA
|
NA
|
NA
|
|||||||||||||||
Net loans and loans held for sale
|
|
|
|
|
|
|||||||||||||||
Accrued interest receivable
|
|
|
|
|
|
|||||||||||||||
Derivative financial instruments
|
|
|
|
|
|
|||||||||||||||
Liabilities
|
||||||||||||||||||||
Deposits with no stated maturity (1)
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Deposits with stated maturity (1)
|
|
|
|
|
|
|||||||||||||||
Other borrowings
|
|
|
|
|
|
|||||||||||||||
Subordinated debt
|
||||||||||||||||||||
Subordinated debentures
|
|
|
|
|
|
|||||||||||||||
Accrued interest payable
|
|
|
|
|
|
|||||||||||||||
Derivative financial instruments
|
|
|
|
|
|
(1) |
|
Unrealized
Gains
(Losses) on
Securities
Available
for Sale
|
Dispropor-
tionate
Tax Effects
from
Securities
Available
for Sale
|
Unrealized
Losses on
Cash Flow
Hedges
|
Total
|
|||||||||||||
(In thousands)
|
||||||||||||||||
2021
|
||||||||||||||||
Balances at beginning of period
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||
Other comprehensive loss before reclassifications
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Amounts reclassified from AOCIL
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Net current period other comprehensive loss
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Balances at end of period
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||
2020
|
||||||||||||||||
Balances at beginning of period
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||
Other comprehensive income (loss) before reclassifications
|
|
|
(
|
)
|
|
|||||||||||
Amounts reclassified from AOCIL
|
(
|
)
|
|
|
|
|||||||||||
Net current period other comprehensive income
|
|
|
|
|
||||||||||||
Balances at end of period
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||
2019
|
||||||||||||||||
Balances at beginning of period
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Other comprehensive income (loss) before reclassifications
|
|
|
(
|
)
|
|
|||||||||||
Amounts reclassified from AOCIL
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|||||||||
Net current period other comprehensive income (loss)
|
|
|
(
|
)
|
|
|||||||||||
Balances at end of period
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
AOCIL Component
|
Reclassified
From
AOCIL
|
Affected Line Item in
Consolidated Statements of Operations
|
|||
(In thousands)
|
|||||
2021
|
|||||
Unrealized gains (losses) on securities available for sale
|
$
|
|
Net gains on securities available for sale
|
||
|
Net impairment loss recognized in earnings
|
||||
|
Total reclassifications before tax
|
||||
|
Income tax expense
|
||||
$
|
|
Reclassifications, net of tax
|
|||
2020
|
|||||
Unrealized gains (losses) on securities available for sale
|
$
|
|
Net gains on securities available for sale
|
||
|
Net impairment loss recognized in earnings
|
||||
|
Total reclassifications before tax
|
||||
|
Income tax expense
|
||||
$
|
|
Reclassifications, net of tax
|
|||
Unrealized gains (losses) on cash flow hedges
|
$
|
|
Interest expense
|
||
|
Income tax expense
|
||||
$
|
|
Reclassification, net of tax
|
|||
$
|
(
|
)
|
Total reclassifications for the period, net of tax
|
||
2019
|
|||||
Unrealized gains (losses) on securities available for sale
|
$
|
|
Net gains on securities available for sale
|
||
|
Net impairment loss recognized in earnings
|
||||
|
Total reclassifications before tax
|
||||
|
Income tax expense
|
||||
$
|
|
Reclassifications, net of tax
|
|||
Unrealized gains (losses) on cash flow hedges
|
$
|
(
|
)
|
Interest expense
|
|
(
|
)
|
Income tax expense
|
|||
$
|
(
|
)
|
Reclassification, net of tax
|
||
$
|
|
Total reclassifications for the period, net of tax
|
CONDENSED STATEMENTS OF FINANCIAL CONDITION
|
||||||||
December 31,
|
||||||||
2021
|
2020
|
|||||||
(In thousands)
|
||||||||
ASSETS
|
||||||||
Cash and due from banks
|
$
|
|
$
|
|
||||
Interest bearing deposits - time
|
|
|
||||||
Investment in subsidiaries
|
|
|
||||||
Accrued income and other assets
|
|
|
||||||
Total Assets
|
$
|
|
$
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Subordinated debt
|
$
|
|
$
|
|
||||
Subordinated debentures
|
|
|
||||||
Accrued expenses and other liabilities
|
|
|
||||||
Shareholders’ equity
|
|
|
||||||
Total Liabilities and Shareholders’ Equity
|
$
|
|
$
|
|
Year Ended December 31,
|
||||||||||||
2021
|
2020
|
2019
|
||||||||||
(In thousands)
|
||||||||||||
OPERATING INCOME
|
||||||||||||
Dividends from subsidiary
|
$
|
|
$
|
|
$
|
|
||||||
Interest income
|
|
|
|
|||||||||
Other income
|
|
|
|
|||||||||
Total Operating Income
|
|
|
|
|||||||||
OPERATING EXPENSES
|
||||||||||||
Interest expense
|
|
|
|
|||||||||
Administrative and other expenses
|
|
|
|
|||||||||
Total Operating Expenses
|
|
|
|
|||||||||
Income Before Income Tax and Equity in Undistributed Net Income of Subsidiaries
|
|
|
|
|||||||||
Income tax benefit
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Income Before Equity in Undistributed Net Income of Subsidiaries
|
|
|
|
|||||||||
Equity in undistributed net income of subsidiaries
|
|
|
|
|||||||||
Net Income
|
$
|
|
$
|
|
$
|
|
Year Ended December 31,
|
||||||||||||
2021
|
2020
|
2019
|
||||||||||
(In thousands)
|
||||||||||||
Net Income
|
$
|
|
$
|
|
$
|
|
||||||
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH FROM OPERATING ACTIVITIES
|
||||||||||||
Deferred income tax (benefit) expense
|
(
|
)
|
(
|
)
|
|
|||||||
Share based compensation
|
|
|
|
|||||||||
Accretion of discount on subordinated debt and debentures
|
|
|
|
|||||||||
(Increase) decrease in accrued income and other assets
|
|
(
|
)
|
|
||||||||
Increase in accrued expenses and other liabilities
|
|
|
|
|||||||||
Equity in undistributed net income of subsidiaries
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Total Adjustments
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net Cash From Operating Activities
|
|
|
|
|||||||||
CASH FLOW FROM (USED IN) INVESTING ACTIVITIES
|
||||||||||||
Purchases of interest bearing deposits - time
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Maturity of interest bearing deposits - time
|
|
|
|
|||||||||
Net Cash From (Used In) Investing Activities
|
|
(
|
)
|
|
||||||||
CASH FLOW FROM (USED IN) FINANCING ACTIVITIES
|
||||||||||||
Proceeds from issuance of subordinated debt, net of issuance costs
|
|
|
|
|||||||||
Dividends paid
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Proceeds from issuance of common stock
|
|
|
|
|||||||||
Share based compensation withholding obligation
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Repurchase of common stock
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net Cash From (Used In) Financing Activities
|
(
|
)
|
|
(
|
)
|
|||||||
Net Increase (Decrease) in Cash and Cash Equivalents
|
(
|
)
|
(
|
)
|
|
|||||||
Cash and Cash Equivalents at Beginning of Year
|
|
|
|
|||||||||
Cash and Cash Equivalents at End of Year
|
$
|
|
$
|
|
$
|
|
2021
|
||||||||||||||||||||
Service
Charges
on Deposit
Accounts
|
Other
Deposit
Related
Income
|
Interchange
Income
|
Investment
and
Insurance
Commissions
|
Total
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Retail
|
||||||||||||||||||||
Overdraft fees
|
$
|
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
|
||||||||||
Account service charges
|
|
-
|
-
|
-
|
|
|||||||||||||||
ATM fees
|
-
|
|
-
|
-
|
|
|||||||||||||||
Other
|
-
|
|
-
|
-
|
|
|||||||||||||||
Business
|
||||||||||||||||||||
Overdraft fees
|
|
-
|
-
|
-
|
|
|||||||||||||||
ATM fees
|
-
|
|
-
|
-
|
|
|||||||||||||||
Other
|
-
|
|
-
|
-
|
|
|||||||||||||||
Interchange income
|
-
|
-
|
|
-
|
|
|||||||||||||||
Asset management revenue
|
-
|
-
|
-
|
|
|
|||||||||||||||
Transaction based revenue
|
-
|
-
|
-
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Reconciliation to Consolidated Statement of Operations:
|
||||||||||||||||||||
Non-interest income - other:
|
||||||||||||||||||||
Other deposit related income
|
$
|
|
||||||||||||||||||
Investment and insurance commissions
|
|
|||||||||||||||||||
Bank owned life insurance
|
|
|||||||||||||||||||
Other
|
|
|||||||||||||||||||
Total
|
$
|
|
2020
|
||||||||||||||||||||
Service
Charges
on Deposit
Accounts
|
Other
Deposit
Related
Income
|
Interchange
Income
|
Investment
and
Insurance
Commissions
|
Total
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Retail
|
||||||||||||||||||||
Overdraft fees
|
$
|
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
|
||||||||||
Account service charges
|
|
-
|
-
|
-
|
|
|||||||||||||||
ATM fees
|
-
|
|
-
|
-
|
|
|||||||||||||||
Other
|
-
|
|
-
|
-
|
|
|||||||||||||||
Business
|
||||||||||||||||||||
Overdraft fees
|
|
-
|
-
|
-
|
|
|||||||||||||||
ATM fees
|
-
|
|
-
|
-
|
|
|||||||||||||||
Other
|
-
|
|
-
|
-
|
|
|||||||||||||||
Interchange income
|
-
|
-
|
|
-
|
|
|||||||||||||||
Asset management revenue
|
-
|
-
|
-
|
|
|
|||||||||||||||
Transaction based revenue
|
-
|
-
|
-
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Reconciliation to Consolidated Statement of Operations:
|
||||||||||||||||||||
Non-interest income - other:
|
||||||||||||||||||||
Other deposit related income
|
$
|
|
||||||||||||||||||
Investment and insurance commissions
|
|
|||||||||||||||||||
Bank owned life insurance
|
|
|||||||||||||||||||
Other
|
|
|||||||||||||||||||
Total
|
$
|
|
2019
|
||||||||||||||||||||
Service
Charges
on Deposit
Accounts
|
Other
Deposit
Related
Income
|
Interchange
Income
|
Investment
and
Insurance
Commissions
|
Total
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Retail
|
||||||||||||||||||||
Overdraft fees
|
$
|
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
|
||||||||||
Account service charges
|
|
-
|
-
|
-
|
|
|||||||||||||||
ATM fees
|
-
|
|
-
|
-
|
|
|||||||||||||||
Other
|
-
|
|
-
|
-
|
|
|||||||||||||||
Business
|
||||||||||||||||||||
Overdraft fees
|
|
-
|
-
|
-
|
|
|||||||||||||||
ATM fees
|
-
|
|
- |
-
|
|
|||||||||||||||
Other
|
-
|
|
- |
-
|
|
|||||||||||||||
Interchange income
|
-
|
-
|
|
-
|
|
|||||||||||||||
Asset management revenue
|
-
|
-
|
-
|
|
|
|||||||||||||||
Transaction based revenue
|
-
|
-
|
-
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Reconciliation to Consolidated Statement of Operations:
|
||||||||||||||||||||
Non-interest income - other:
|
||||||||||||||||||||
Other deposit related income
|
$
|
|
||||||||||||||||||
Investment and insurance commissions
|
|
|||||||||||||||||||
Bank owned life insurance
|
|
|||||||||||||||||||
Other
|
|
|||||||||||||||||||
Total
|
$
|
|
Three Months Ended
|
||||||||||||||||
March 31,
|
June 30,
|
September 30,
|
December 31,
|
|||||||||||||
(In thousands, except per share amounts)
|
||||||||||||||||
2021
|
||||||||||||||||
Interest income
|
$
|
32,502
|
$
|
33,499
|
$
|
35,855
|
$
|
36,224
|
||||||||
Net interest income
|
30,284
|
31,393
|
33,803
|
34,285
|
||||||||||||
Provision for credit losses
|
(474
|
)
|
(1,425
|
)
|
(659
|
)
|
630
|
|||||||||
Income before income tax
|
27,143
|
15,053
|
19,645
|
15,472
|
||||||||||||
Net income
|
22,037
|
12,388
|
15,962
|
12,508
|
||||||||||||
Net income per common share
|
||||||||||||||||
Basic
|
1.01
|
0.57
|
0.74
|
0.59
|
||||||||||||
Diluted
|
1.00
|
0.56
|
0.73
|
0.58
|
||||||||||||
2020
|
||||||||||||||||
Interest income
|
$
|
35,579
|
$
|
33,754
|
$
|
35,034
|
$
|
35,462
|
||||||||
Net interest income
|
30,191
|
30,462
|
31,966
|
30,993
|
||||||||||||
Provision for credit losses(1)
|
6,721
|
5,188
|
975
|
(421
|
)
|
|||||||||||
Income before income tax
|
5,755
|
18,295
|
24,361
|
21,070
|
||||||||||||
Net income
|
4,810
|
14,772
|
19,584
|
16,986
|
||||||||||||
Net income per common share
|
||||||||||||||||
Basic
|
0.22
|
0.67
|
0.90
|
0.78
|
||||||||||||
Diluted
|
0.21
|
0.67
|
0.89
|
0.77
|
(1) |
Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.
|
Reported Sales Prices of Common Shares
|
Cash Dividends
|
|||||||||||||||||||||||||||||||
2021
|
2020
|
Declared
|
||||||||||||||||||||||||||||||
High
|
Low
|
Close
|
High
|
Low
|
Close
|
2021
|
2020
|
|||||||||||||||||||||||||
First quarter
|
$
|
24.73
|
$
|
18.18
|
$
|
23.64
|
$
|
22.98
|
$
|
9.19
|
$
|
12.87
|
$
|
0.21
|
$
|
0.20
|
||||||||||||||||
Second quarter
|
24.50
|
21.10
|
21.71
|
16.92
|
10.91
|
14.85
|
0.21
|
0.20
|
||||||||||||||||||||||||
Third quarter
|
22.22
|
19.60
|
21.48
|
16.20
|
12.14
|
12.57
|
0.21
|
0.20
|
||||||||||||||||||||||||
Fourth quarter
|
24.48
|
21.44
|
23.87
|
19.28
|
12.42
|
18.47
|
0.21
|
0.20
|