(State or Other Jurisdiction | (IRS Employer | ||||||||||
of Incorporation or Organization) | Identification No.) | ||||||||||
, | |||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
(Nasdaq Global Select Market) |
Page | ||||||||
June 30, 2024 | December 31, 2023 | ||||||||||
(Unaudited) | |||||||||||
ASSETS | |||||||||||
Cash and due from banks | $ | $ | |||||||||
Short-term investments | |||||||||||
Total cash and cash equivalents | |||||||||||
Securities available-for-sale, at fair value | |||||||||||
Securities held-to-maturity, at amortized cost (fair value of $ | |||||||||||
Real estate mortgage loans held-for-sale | |||||||||||
Loans, net of allowance for credit losses of $ | |||||||||||
Land, premises and equipment, net | |||||||||||
Bank owned life insurance | |||||||||||
Federal Reserve and Federal Home Loan Bank stock | |||||||||||
Accrued interest receivable | |||||||||||
Goodwill | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES | |||||||||||
Noninterest bearing deposits | $ | $ | |||||||||
Interest bearing deposits | |||||||||||
Total deposits | |||||||||||
Federal Funds purchased | |||||||||||
Federal Home Loan Bank advances | |||||||||||
Total borrowings | |||||||||||
Accrued interest payable | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
STOCKHOLDERS’ EQUITY | |||||||||||
Common stock: | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive income (loss) | ( | ( | |||||||||
Treasury stock at cost ( | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Noncontrolling interest | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
NET INTEREST INCOME | |||||||||||||||||||||||
Interest and fees on loans | |||||||||||||||||||||||
Taxable | $ | $ | $ | $ | |||||||||||||||||||
Tax exempt | |||||||||||||||||||||||
Interest and dividends on securities | |||||||||||||||||||||||
Taxable | |||||||||||||||||||||||
Tax exempt | |||||||||||||||||||||||
Other interest income | |||||||||||||||||||||||
Total interest income | |||||||||||||||||||||||
Interest on deposits | |||||||||||||||||||||||
Interest on short-term borrowings | |||||||||||||||||||||||
Total interest expense | |||||||||||||||||||||||
NET INTEREST INCOME | |||||||||||||||||||||||
Provision for credit losses | |||||||||||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | |||||||||||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||||||
Wealth advisory fees | |||||||||||||||||||||||
Investment brokerage fees | |||||||||||||||||||||||
Service charges on deposit accounts | |||||||||||||||||||||||
Loan and service fees | |||||||||||||||||||||||
Merchant and interchange fee income | |||||||||||||||||||||||
Bank owned life insurance income | |||||||||||||||||||||||
Interest rate swap fee income | |||||||||||||||||||||||
Mortgage banking income (loss) | ( | ( | |||||||||||||||||||||
Net securities gains (losses) | ( | ||||||||||||||||||||||
Net gain on Visa shares | |||||||||||||||||||||||
Other income | |||||||||||||||||||||||
Total noninterest income | |||||||||||||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||||||
Salaries and employee benefits | |||||||||||||||||||||||
Net occupancy expense | |||||||||||||||||||||||
Equipment costs | |||||||||||||||||||||||
Data processing fees and supplies | |||||||||||||||||||||||
Corporate and business development | |||||||||||||||||||||||
FDIC insurance and other regulatory fees | |||||||||||||||||||||||
Professional fees | |||||||||||||||||||||||
Wire fraud loss | |||||||||||||||||||||||
Other expense | |||||||||||||||||||||||
Total noninterest expense | |||||||||||||||||||||||
INCOME BEFORE INCOME TAX EXPENSE | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
NET INCOME | $ | $ | $ | $ | |||||||||||||||||||
BASIC WEIGHTED AVERAGE COMMON SHARES | |||||||||||||||||||||||
BASIC EARNINGS PER COMMON SHARE | $ | $ | $ | $ | |||||||||||||||||||
DILUTED WEIGHTED AVERAGE COMMON SHARES | |||||||||||||||||||||||
DILUTED EARNINGS PER COMMON SHARE | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||
Change in available-for-sale and transferred securities: | |||||||||||||||||||||||
Unrealized holding gain (loss) on securities available-for-sale arising during the period | ( | ( | ( | ||||||||||||||||||||
Reclassification adjust for amortization of unrealized losses on securities transferred to held-to-maturity | |||||||||||||||||||||||
Reclassification adjustment for (gains) losses included in net income | ( | ( | |||||||||||||||||||||
Net securities gain (loss) activity during the period | ( | ( | ( | ||||||||||||||||||||
Tax effect | ( | ||||||||||||||||||||||
Net of tax amount | ( | ( | ( | ||||||||||||||||||||
Defined benefit pension plans: | |||||||||||||||||||||||
Amortization of net actuarial loss | |||||||||||||||||||||||
Net gain activity during the period | |||||||||||||||||||||||
Tax effect | ( | ( | ( | ( | |||||||||||||||||||
Net of tax amount | |||||||||||||||||||||||
Total other comprehensive income (loss), net of tax | ( | ( | ( | ||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Stockholders’ Equity | Noncontrolling Interest | Total Equity | |||||||||||||||||||||||||||||||||||||||||
Shares | Stock | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at April 1, 2023 | $ | $ | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared and paid, $ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Treasury shares purchased under deferred directors' plan | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Stock activity under equity compensation plans | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||
Stock based compensation expense | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Balance at April 1, 2024 | $ | $ | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared and paid, $ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Treasury shares purchased under deferred directors' plan | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Stock activity under equity compensation plans | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Stock based compensation expense | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2024 | $ | $ | $ | ( | $ | ( | $ | $ | $ |
Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Stockholders’ Equity | Noncontrolling Interest | Total Equity | |||||||||||||||||||||||||||||||||||||||||
Shares | Stock | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2023 | $ | $ | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared and paid, $ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Treasury shares purchased under deferred directors' plan | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Treasury shares sold and distributed under deferred directors' plan | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Stock activity under equity compensation plans | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Stock based compensation expense | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2024 | $ | $ | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Adjusted Balance at January 1, 2024 | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared and paid, $ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Treasury shares purchased under deferred directors' plan | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Treasury shares sold and distributed under deferred directors' plan | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Stock activity under equity compensation plans | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Stock based compensation expense | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2024 | $ | $ | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | 2024 | 2023 | ||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income | $ | $ | ||||||||||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||||||||
Depreciation | ||||||||||||||
Provision for credit losses | ||||||||||||||
Amortization of loan servicing rights | ||||||||||||||
Loans originated for sale, including participations | ( | ( | ||||||||||||
Net gain on sales of loans | ( | ( | ||||||||||||
Proceeds from sale of loans, including participations | ||||||||||||||
Net (gain) loss on Visa shares | ( | |||||||||||||
Net (gain) loss on sales of premises and equipment | ( | |||||||||||||
Net (gain) loss on sales and calls of securities available-for-sale | ( | |||||||||||||
Net securities amortization | ||||||||||||||
Stock based compensation expense | ( | |||||||||||||
Losses (earnings) on life insurance | ( | ( | ||||||||||||
Gain on life insurance | ( | |||||||||||||
Tax benefit of stock award issuances | ( | ( | ||||||||||||
Net change: | ||||||||||||||
Interest receivable and other assets | ( | |||||||||||||
Interest payable and other liabilities | ( | ( | ||||||||||||
Total adjustments | ( | ( | ||||||||||||
Net cash from operating activities | ||||||||||||||
Cash flows from investing activities: | ||||||||||||||
Proceeds from sale of securities available-for-sale | ||||||||||||||
Proceeds from sale of Visa shares | ||||||||||||||
Proceeds from maturities, calls and principal paydowns of securities available-for-sale | ||||||||||||||
Proceeds from maturities, calls and principal paydowns of securities held-to-maturity | ||||||||||||||
Purchases of securities available-for-sale | ( | |||||||||||||
Purchase of life insurance | ( | ( | ||||||||||||
Net (increase) decrease in total loans | ( | ( | ||||||||||||
Proceeds from sales of land, premises and equipment | ||||||||||||||
Purchases of land, premises and equipment | ( | ( | ||||||||||||
Purchase of Federal Home Loan Bank stock | ( | |||||||||||||
Proceeds from life insurance | ||||||||||||||
Net cash from investing activities | ( | ( | ||||||||||||
Cash flows from financing activities: | ||||||||||||||
Net increase (decrease) in total deposits | ( | |||||||||||||
Net increase (decrease) in short-term borrowings | ( | |||||||||||||
Proceeds from short-term FHLB borrowings | ||||||||||||||
Net payments on short-term FHLB borrowings | ( | |||||||||||||
Common dividends paid | ( | ( | ||||||||||||
Preferred dividends paid | ( | ( | ||||||||||||
Payments related to equity incentive plans | ( | ( | ||||||||||||
Purchase of treasury stock | ( | ( | ||||||||||||
Sale of treasury stock | ||||||||||||||
Net cash from financing activities | ||||||||||||||
Net change in cash and cash equivalents | ( | |||||||||||||
Cash and cash equivalents at beginning of the period | ||||||||||||||
Cash and cash equivalents at end of the period | ||||||||||||||
Cash paid during the period for: | ||||||||||||||
Interest | $ | |||||||||||||
Income taxes | ||||||||||||||
Supplemental non-cash disclosures: | ||||||||||||||
Loans transferred to other real estate owned | ||||||||||||||
(dollars in thousands) | Amortized Cost | Gross Unrealized Gain | Gross Unrealized Losses | Allowance for Credit Losses | Fair Value | |||||||||||||||||||||||||||
June 30, 2024 | ||||||||||||||||||||||||||||||||
U.S. government sponsored agencies | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
Mortgage-backed securities: residential | ( | |||||||||||||||||||||||||||||||
State and municipal securities | ( | |||||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||||||||||||||
U.S. government sponsored agencies | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
Mortgage-backed securities: residential | ( | |||||||||||||||||||||||||||||||
State and municipal securities | ( | |||||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | $ |
(dollars in thousands) | Amortized Cost | Gross Unrealized Gain | Gross Unrealized Losses | Allowance for Credit Losses | Fair Value | |||||||||||||||||||||||||||
June 30, 2024 | ||||||||||||||||||||||||||||||||
State and municipal securities | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||||||||||||||
State and municipal securities | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
Available-for-Sale | Held-to-Maturity | |||||||||||||||||||||||||
(dollars in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||
Due in one year or less | $ | $ | $ | $ | ||||||||||||||||||||||
Due after one year through five years | ||||||||||||||||||||||||||
Due after five years through ten years | ||||||||||||||||||||||||||
Due after ten years | ||||||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||
Total debt securities | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Sales of securities available-for-sale | ||||||||||||||||||||||||||
Proceeds | $ | $ | $ | $ | ||||||||||||||||||||||
Gross gains | ||||||||||||||||||||||||||
Gross losses | ( | ( | ( | |||||||||||||||||||||||
Number of securities |
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||
June 30, 2024 | ||||||||||||||||||||||||||||||||||||||
U.S. government sponsored agencies | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Mortgage-backed securities: residential | ||||||||||||||||||||||||||||||||||||||
State and municipal securities | ||||||||||||||||||||||||||||||||||||||
Total available-for-sale | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||||||||||||||||||||
U.S. government sponsored agencies | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Mortgage-backed securities: residential | ||||||||||||||||||||||||||||||||||||||
State and municipal securities | ||||||||||||||||||||||||||||||||||||||
Total available-for-sale | $ | $ | $ | $ | $ | $ |
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||
June 30, 2024 | ||||||||||||||||||||||||||||||||||||||
State and municipal securities | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||||||||||||||||||||
State and municipal securities | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Available-for-Sale | Held-to-Maturity | ||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||||||||
June 30, 2024 | |||||||||||||||||||||||||||||||||||
U.S. government sponsored agencies | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities: residential | |||||||||||||||||||||||||||||||||||
State and municipal securities | |||||||||||||||||||||||||||||||||||
Total temporarily impaired | |||||||||||||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||||||||
U.S. government sponsored agencies | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities: residential | |||||||||||||||||||||||||||||||||||
State and municipal securities | |||||||||||||||||||||||||||||||||||
Total temporarily impaired |
(dollars in thousands) | June 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||
Commercial and industrial loans: | ||||||||||||||||||||||||||
Working capital lines of credit loans | $ | % | $ | % | ||||||||||||||||||||||
Non-working capital loans | ||||||||||||||||||||||||||
Total commercial and industrial loans | ||||||||||||||||||||||||||
Commercial real estate and multi-family residential loans: | ||||||||||||||||||||||||||
Construction and land development loans | ||||||||||||||||||||||||||
Owner occupied loans | ||||||||||||||||||||||||||
Nonowner occupied loans | ||||||||||||||||||||||||||
Multifamily loans | ||||||||||||||||||||||||||
Total commercial real estate and multi-family residential loans | ||||||||||||||||||||||||||
Agri-business and agricultural loans: | ||||||||||||||||||||||||||
Loans secured by farmland | ||||||||||||||||||||||||||
Loans for agricultural production | ||||||||||||||||||||||||||
Total agri-business and agricultural loans | ||||||||||||||||||||||||||
Other commercial loans: | ||||||||||||||||||||||||||
Total commercial loans | ||||||||||||||||||||||||||
Consumer 1-4 family mortgage loans: | ||||||||||||||||||||||||||
Closed end first mortgage loans | ||||||||||||||||||||||||||
Open end and junior lien loans | ||||||||||||||||||||||||||
Residential construction and land development loans | ||||||||||||||||||||||||||
Total consumer 1-4 family mortgage loans | ||||||||||||||||||||||||||
Other consumer loans | ||||||||||||||||||||||||||
Total consumer loans | ||||||||||||||||||||||||||
Subtotal | % | % | ||||||||||||||||||||||||
Less: Allowance for credit losses | ( | ( | ||||||||||||||||||||||||
Net deferred loan fees | ( | ( | ||||||||||||||||||||||||
Loans, net | $ | $ |
(dollars in thousands) | Commercial and Industrial | Commercial Real Estate and Multifamily Residential | Agri-business and Agricultural | Other Commercial | Consumer 1-4 Family Mortgage | Other Consumer | Unallocated | Total | ||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance, April 1 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Provision for credit losses | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Loans charged-off | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net loans (charged-off) recovered | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ | $ | $ |
(dollars in thousands) | Commercial and Industrial | Commercial Real Estate and Multifamily Residential | Agri-business and Agricultural | Other Commercial | Consumer 1-4 Family Mortgage | Other Consumer | Unallocated | Total | ||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance, April 1 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Provision for credit losses | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Loans charged-off | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net loans (charged-off) recovered | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ | $ | $ |
(dollars in thousands) | Commercial and Industrial | Commercial Real Estate and Multifamily Residential | Agri-business and Agricultural | Other Commercial | Consumer 1-4 Family Mortgage | Other Consumer | Unallocated | Total | ||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance, January 1 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Provision for credit losses | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Loans charged-off | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net loans (charged-off) recovered | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ | $ | $ |
(dollars in thousands) | Commercial and Industrial | Commercial Real Estate and Multifamily Residential | Agri-business and Agricultural | Other Commercial | Consumer 1-4 Family Mortgage | Other Consumer | Unallocated | Total | ||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance, January 1 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Provision for credit losses | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Loans charged-off | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net loans (charged-off) recovered | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ | $ | $ |
(dollars in thousands) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Term Total | Revolving | Total | ||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Working capital lines of credit loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Working capital lines of credit loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period gross write offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-working capital loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Not Rated | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-working capital loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period gross write offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate and multi-family residential loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction and land development loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction and land development loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period gross write offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Owner occupied loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Owner occupied loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period gross write offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonowner occupied loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonowner occupied loans (continued): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonowner occupied loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period gross write offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Multifamily loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Multifamily loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period gross write offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Agri-business and agricultural loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans secured by farmland: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans secured by farmland: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period gross write offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans for agricultural production: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans for agricultural production: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period gross write offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other commercial loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other commercial loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period gross write offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer 1-4 family mortgage loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Closed end first mortgage loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Not Rated | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total |
Closed end first mortgage loans (continued): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period gross write offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Open end and junior lien loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Not Rated | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Open end and junior lien loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period gross write offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential construction loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Not Rated | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential construction loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period gross write offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other consumer loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Not Rated | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other consumer loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period gross write offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Total period gross write offs | $ | $ | $ | $ | $ | $ | $ | $ | $ |
(dollars in thousands) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Term Total | Revolving | Total | ||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Working capital lines of credit loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Working capital lines of credit loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period gross write offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-working capital loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Not Rated | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-working capital loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period gross write offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate and multi-family residential loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction and land development loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction and land development loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period gross write offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Owner occupied loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Owner occupied loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period gross write offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonowner occupied loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass |
Nonowner occupied loans (continued): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonowner occupied loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period gross write offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Multifamily loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Multifamily loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period gross write offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Agri-business and agricultural loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans secured by farmland: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans secured by farmland: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period gross write offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans for agricultural production: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans for agricultural production: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period gross write offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other commercial loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other commercial loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period gross write offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer 1-4 family mortgage loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Closed end first mortgage loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Not Rated |
Closed end first mortgage loans (continued): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Closed end first mortgage loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period gross write offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Open end and junior lien loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Not Rated | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Open end and junior lien loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period gross write offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential construction loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Not Rated | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential construction loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period gross write offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other consumer loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Not Rated | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other consumer loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Current period gross write offs | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Total current period gross write offs | $ | $ | $ | $ | $ | $ | $ | $ | $ |
(dollars in thousands) | Loans Not Past Due | 30-89 Days Past Due | Greater than 89 Days Past Due and Accruing | Total Accruing | Total Nonaccrual | Nonaccrual With No Allowance For Credit Loss | Total | |||||||||||||||||||||||||||||||||||||
Commercial and industrial loans: | ||||||||||||||||||||||||||||||||||||||||||||
Working capital lines of credit loans | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Non-working capital loans | ||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate and multi-family residential loans: | ||||||||||||||||||||||||||||||||||||||||||||
Construction and land development loans | ||||||||||||||||||||||||||||||||||||||||||||
Owner occupied loans | ||||||||||||||||||||||||||||||||||||||||||||
Nonowner occupied loans | ||||||||||||||||||||||||||||||||||||||||||||
Multifamily loans | ||||||||||||||||||||||||||||||||||||||||||||
Agri-business and agricultural loans: | ||||||||||||||||||||||||||||||||||||||||||||
Loans secured by farmland | ||||||||||||||||||||||||||||||||||||||||||||
Loans for agricultural production | ||||||||||||||||||||||||||||||||||||||||||||
Other commercial loans | ||||||||||||||||||||||||||||||||||||||||||||
Consumer 1‑4 family mortgage loans: | ||||||||||||||||||||||||||||||||||||||||||||
Closed end first mortgage loans | ||||||||||||||||||||||||||||||||||||||||||||
Open end and junior lien loans | ||||||||||||||||||||||||||||||||||||||||||||
Residential construction loans | ||||||||||||||||||||||||||||||||||||||||||||
Other consumer loans | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
(dollars in thousands) | Loans Not Past Due | 30-89 Days Past Due | Greater than 89 Days Past Due and Accruing | Total Accruing | Total Nonaccrual | Nonaccrual With No Allowance For Credit Loss | Total | |||||||||||||||||||||||||||||||||||||
Commercial and industrial loans: | ||||||||||||||||||||||||||||||||||||||||||||
Working capital lines of credit loans | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Non-working capital loans | ||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate and multi-family residential loans: | ||||||||||||||||||||||||||||||||||||||||||||
Construction and land development loans | ||||||||||||||||||||||||||||||||||||||||||||
Owner occupied loans | ||||||||||||||||||||||||||||||||||||||||||||
Nonowner occupied loans | ||||||||||||||||||||||||||||||||||||||||||||
Multifamily loans | ||||||||||||||||||||||||||||||||||||||||||||
Agri-business and agricultural loans: | ||||||||||||||||||||||||||||||||||||||||||||
Loans secured by farmland | ||||||||||||||||||||||||||||||||||||||||||||
Loans for agricultural production | ||||||||||||||||||||||||||||||||||||||||||||
Other commercial loans | ||||||||||||||||||||||||||||||||||||||||||||
Consumer 1‑4 family mortgage loans: | ||||||||||||||||||||||||||||||||||||||||||||
Closed end first mortgage loans | ||||||||||||||||||||||||||||||||||||||||||||
Open end and junior lien loans | ||||||||||||||||||||||||||||||||||||||||||||
Residential construction loans | ||||||||||||||||||||||||||||||||||||||||||||
Other consumer loans | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
June 30, 2024 | ||||||||||||||||||||||||||
(dollars in thousands) | Real Estate | General Business Assets | Other | Total | ||||||||||||||||||||||
Commercial and industrial loans: | ||||||||||||||||||||||||||
Working capital lines of credit loans | $ | $ | $ | $ | ||||||||||||||||||||||
Non-working capital loans | ||||||||||||||||||||||||||
Commercial real estate and multi-family residential loans: | ||||||||||||||||||||||||||
Owner occupied loans | ||||||||||||||||||||||||||
Agri-business and agricultural loans: | ||||||||||||||||||||||||||
Loans secured by farmland | ||||||||||||||||||||||||||
Consumer 1-4 family mortgage loans: | ||||||||||||||||||||||||||
Closed end first mortgage loans | ||||||||||||||||||||||||||
Open end and junior lien loans | ||||||||||||||||||||||||||
Residential construction and land development loans | ||||||||||||||||||||||||||
Other consumer loans | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
December 31, 2023 | ||||||||||||||||||||||||||
(dollars in thousands) | Real Estate | General Business Assets | Other | Total | ||||||||||||||||||||||
Commercial and industrial loans: | ||||||||||||||||||||||||||
Working capital lines of credit loans | $ | $ | $ | $ | ||||||||||||||||||||||
Non-working capital loans | ||||||||||||||||||||||||||
Commercial real estate and multi-family residential loans: | ||||||||||||||||||||||||||
Owner occupied loans | ||||||||||||||||||||||||||
Agri-business and agricultural loans: | ||||||||||||||||||||||||||
Loans secured by farmland | ||||||||||||||||||||||||||
Consumer 1-4 family mortgage loans: | ||||||||||||||||||||||||||
Closed end first mortgage loans | ||||||||||||||||||||||||||
Open end and junior lien loans | ||||||||||||||||||||||||||
Other consumer loans | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
(dollars in thousands) | Combination Principal Forgiveness, Interest Rate Reduction and Term Extension and Payment Delay | Total Modifications | Total Class of Financing Receivable | |||||||||||||||||
Three and Six Months Ended June 30, 2023 | ||||||||||||||||||||
Commercial and industrial loans: | ||||||||||||||||||||
Non-working capital loans | $ | $ | % | |||||||||||||||||
Total commercial and industrial loans | ||||||||||||||||||||
Total loan modifications made to borrowers experiencing financial difficulty | $ | $ | % |
(dollars in thousands) | Principal Forgiveness | Interest Rate Reduction Financial Effect | Term Extension Financial Effect | Payment Delay | Total Class of Financing Receivable | |||||||||||||||||||||||||||
Three and Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||
Commercial and industrial loans: | ||||||||||||||||||||||||||||||||
Non-working capital loans (1) | $ | Reduction of | Term extension from | Extension of amortization period from | % | |||||||||||||||||||||||||||
June 30, 2024 | ||||||||||||||||||||||||||
Fair Value Measurements Using | Assets at Fair Value | |||||||||||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
U.S. government sponsored agency securities | $ | $ | $ | $ | ||||||||||||||||||||||
Mortgage-backed securities: residential | ||||||||||||||||||||||||||
State and municipal securities | ||||||||||||||||||||||||||
Total securities available-for-sale | ||||||||||||||||||||||||||
Visa class c shares | ||||||||||||||||||||||||||
Mortgage banking derivative | ||||||||||||||||||||||||||
Interest rate swap derivative | ||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Interest rate swap derivative | $ | $ | $ | $ | ||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ |
December 31, 2023 | ||||||||||||||||||||||||||
Fair Value Measurements Using | Assets at Fair Value | |||||||||||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
U.S. government sponsored agency securities | $ | $ | $ | $ | ||||||||||||||||||||||
Mortgage-backed securities: residential | ||||||||||||||||||||||||||
State and municipal securities | ||||||||||||||||||||||||||
Total securities available-for-sale | ||||||||||||||||||||||||||
Mortgage banking derivative | ||||||||||||||||||||||||||
Interest rate swap derivative | ||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Mortgage banking derivative | $ | $ | $ | $ | ||||||||||||||||||||||
Interest rate swap derivative | ||||||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ |
June 30, 2024 | ||||||||||||||||||||||||||
Fair Value Measurements Using | Assets at Fair Value | |||||||||||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Collateral dependent loans: | ||||||||||||||||||||||||||
Commercial and industrial loans: | ||||||||||||||||||||||||||
Working capital lines of credit loans | $ | $ | $ | $ | ||||||||||||||||||||||
Non-working capital loans | ||||||||||||||||||||||||||
Commercial real estate and multi-family residential loans: | ||||||||||||||||||||||||||
Owner occupied loans | ||||||||||||||||||||||||||
Agri-business and agricultural loans: | ||||||||||||||||||||||||||
Loans secured by farmland | ||||||||||||||||||||||||||
Total collateral dependent loans | ||||||||||||||||||||||||||
Other real estate owned | ||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ |
December 31, 2023 | ||||||||||||||||||||||||||
Fair Value Measurements Using | Assets at Fair Value | |||||||||||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Collateral dependent loans: | ||||||||||||||||||||||||||
Commercial and industrial loans: | ||||||||||||||||||||||||||
Working capital lines of credit loans | $ | $ | $ | $ | ||||||||||||||||||||||
Non-working capital loans | ||||||||||||||||||||||||||
Commercial real estate and multi-family residential loans: | ||||||||||||||||||||||||||
Owner occupied loans | ||||||||||||||||||||||||||
Agri-business and agricultural loans: | ||||||||||||||||||||||||||
Loans secured by farmland | ||||||||||||||||||||||||||
Total collateral dependent loans | ||||||||||||||||||||||||||
Other real estate owned | ||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ |
(dollars in thousands) | Fair Value | Valuation Methodology | Unobservable Inputs | Average | Range of Inputs | |||||||||||||||||||||||||||
Collateral dependent loans: | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | Collateral based measurements | Discount to reflect current market conditions and ultimate collectability | % | ||||||||||||||||||||||||||||
Collateral dependent loans: | ||||||||||||||||||||||||||||||||
Commercial real estate and multi-family residential loans | Collateral based measurements | Discount to reflect current market conditions and ultimate collectability | % | |||||||||||||||||||||||||||||
Collateral dependent loans: | ||||||||||||||||||||||||||||||||
Agri-business and agricultural | Collateral based measurements | Discount to reflect current market conditions and ultimate collectability | % | |||||||||||||||||||||||||||||
Other real estate owned | Appraisals | Discount to reflect current market conditions and ultimate collectability | % | |||||||||||||||||||||||||||||
(dollars in thousands) | Fair Value | Valuation Methodology | Unobservable Inputs | Average | Range of Inputs | |||||||||||||||||||||||||||
Collateral dependent loans: | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | Collateral based measurements | Discount to reflect current market conditions and ultimate collectability | % | ||||||||||||||||||||||||||||
Collateral dependent loans: | ||||||||||||||||||||||||||||||||
Commercial real estate and multi-family residential loans | Collateral based measurements | Discount to reflect current market conditions and ultimate collectability | % | |||||||||||||||||||||||||||||
Collateral dependent loans: | ||||||||||||||||||||||||||||||||
Agri-business and agricultural | Collateral based measurements | Discount to reflect current market conditions and ultimate collectability | % | |||||||||||||||||||||||||||||
Other real estate owned | Appraisals | Discount to reflect current market conditions and ultimate collectability | % | |||||||||||||||||||||||||||||
June 30, 2024 | ||||||||||||||||||||||||||||||||
Carrying Value | Estimated Fair Value | |||||||||||||||||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Securities available-for-sale | ||||||||||||||||||||||||||||||||
Securities held-to-maturity | ||||||||||||||||||||||||||||||||
Real estate mortgages held-for-sale | ||||||||||||||||||||||||||||||||
Visa class c shares | ||||||||||||||||||||||||||||||||
Loans, net | ||||||||||||||||||||||||||||||||
Mortgage banking derivative | ||||||||||||||||||||||||||||||||
Interest rate swap derivative | ||||||||||||||||||||||||||||||||
Federal Reserve and Federal Home Loan Bank Stock | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Accrued interest receivable | ||||||||||||||||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||||||||
Certificates of deposit | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
All other deposits | ||||||||||||||||||||||||||||||||
Federal Home Loan Bank advances | ||||||||||||||||||||||||||||||||
Interest rate swap derivative | ||||||||||||||||||||||||||||||||
Standby letters of credit | ||||||||||||||||||||||||||||||||
Accrued interest payable |
December 31, 2023 | ||||||||||||||||||||||||||||||||
Carrying Value | Estimated Fair Value | |||||||||||||||||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Securities available-for-sale | ||||||||||||||||||||||||||||||||
Securities held-to-maturity | ||||||||||||||||||||||||||||||||
Real estate mortgages held-for-sale | ||||||||||||||||||||||||||||||||
Loans, net | ||||||||||||||||||||||||||||||||
Mortgage banking derivative | ||||||||||||||||||||||||||||||||
Interest rate swap derivative | ||||||||||||||||||||||||||||||||
Federal Reserve and Federal Home Loan Bank Stock | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Accrued interest receivable | ||||||||||||||||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||||||||
Certificates of deposit | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
All other deposits | ||||||||||||||||||||||||||||||||
Federal Home Loan Bank advances | ||||||||||||||||||||||||||||||||
Mortgage banking derivative | ||||||||||||||||||||||||||||||||
Interest rate swap derivative | ||||||||||||||||||||||||||||||||
Standby letters of credit | ||||||||||||||||||||||||||||||||
Accrued interest payable |
June 30, 2024 | ||||||||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Assets/Liabilities | Gross Amounts Offset in the Statement of Financial Position | Net Amounts presented in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position | Net Amount | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | Financial Instruments | Cash Collateral Position | ||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||
Interest Rate Swap Derivatives | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Total Assets | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||
Interest Rate Swap Derivatives | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Total Liabilities | $ | $ | $ | $ | $ | $ |
December 31, 2023 | ||||||||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Assets/Liabilities | Gross Amounts Offset in the Statement of Financial Position | Net Amounts presented in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position | Net Amount | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | Financial Instruments | Cash Collateral Position | ||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||
Interest Rate Swap Derivatives | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Total Assets | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||
Interest Rate Swap Derivatives | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Total Liabilities | $ | $ | $ | $ | $ | ( | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Weighted average shares outstanding for basic earnings per common share | |||||||||||||||||||||||
Dilutive effect of stock based awards | |||||||||||||||||||||||
Weighted average shares outstanding for diluted earnings per common share | |||||||||||||||||||||||
Basic earnings per common share | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per common share | $ | $ | $ | $ |
(dollars in thousands) | Unrealized Gains and Losses on Available- for-Sales Securities | Defined Benefit Pension Items | Total | |||||||||||||||||
Balance at April 1, 2024 | $ | ( | $ | ( | $ | ( | ||||||||||||||
Other comprehensive income (loss) before reclassification | ( | ( | ||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | ||||||||||||||||||||
Net current period other comprehensive income (loss) | ( | ( | ||||||||||||||||||
Balance at June 30, 2024 | $ | ( | $ | ( | $ | ( |
(dollars in thousands) | Unrealized Gains and Losses on Available- for-Sales Securities | Defined Benefit Pension Items | Total | |||||||||||||||||
Balance at April 1, 2023 | $ | ( | $ | ( | $ | ( | ||||||||||||||
Other comprehensive income (loss) before reclassification | ( | ( | ||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | ||||||||||||||||||||
Net current period other comprehensive income (loss) | ( | ( | ||||||||||||||||||
Balance at June 30, 2023 | $ | ( | $ | ( | $ | ( |
(dollars in thousands) | Unrealized Gains and Losses on Available- for-Sales Securities | Defined Benefit Pension Items | Total | |||||||||||||||||
Balance at January 1, 2024 | $ | ( | $ | ( | $ | ( | ||||||||||||||
Other comprehensive income (loss) before reclassification | ( | ( | ||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | ||||||||||||||||||||
Net current period other comprehensive income (loss) | ( | ( | ||||||||||||||||||
Balance at June 30, 2024 | $ | ( | $ | ( | $ | ( | ||||||||||||||
(dollars in thousands) | Unrealized Gains and Losses on Available- for-Sales Securities | Defined Benefit Pension Items | Total | |||||||||||||||||
Balance at January 1, 2023 | $ | ( | $ | ( | $ | ( | ||||||||||||||
Other comprehensive income (loss) before reclassification | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | ||||||||||||||||||||
Net current period other comprehensive income (loss) | ||||||||||||||||||||
Balance at June 30, 2023 | $ | ( | $ | ( | $ | ( |
Details about Accumulated Other Comprehensive Income (Loss) Components | Amount Reclassified From Accumulated Other Comprehensive Income (Loss) | Affected Line Item in the Statement Where Net Income is Presented | ||||||||||||
(dollars in thousands) | ||||||||||||||
Amortization of unrealized losses on held-to-maturity securities | $ | ( | Interest income | |||||||||||
Realized gains and (losses) on available-for-sale securities | Net securities gains (losses) | |||||||||||||
Tax effect | Income tax expense | |||||||||||||
( | Net of tax | |||||||||||||
Amortization of defined benefit pension items | ( | Other expense | ||||||||||||
Tax effect | Income tax expense | |||||||||||||
( | Net of tax | |||||||||||||
Total reclassifications for the period | $ | ( | Net income |
Details about Accumulated Other Comprehensive Income (Loss) Components | Amount Reclassified From Accumulated Other Comprehensive Income (Loss) | Affected Line Item in the Statement Where Net Income is Presented | ||||||||||||
(dollars in thousands) | ||||||||||||||
Amortization of unrealized losses on held-to-maturity securities | $ | ( | Interest income | |||||||||||
Realized gains and (losses) on available-for-sale securities | Net securities gains (losses) | |||||||||||||
Tax effect | Income tax expense | |||||||||||||
( | Net of tax | |||||||||||||
Amortization of defined benefit pension items | ( | Other expense | ||||||||||||
Tax effect | Income tax expense | |||||||||||||
( | Net of tax | |||||||||||||
Total reclassifications for the period | $ | ( | Net income |
Details about Accumulated Other Comprehensive Income (Loss) Components | Amount Reclassified From Accumulated Other Comprehensive Income (Loss) | Affected Line Item in the Statement Where Net Income is Presented | ||||||||||||
(dollars in thousands) | ||||||||||||||
Amortization of unrealized losses on held-to-maturity securities | $ | ( | Interest income | |||||||||||
Realized gains and (losses) on available-for-sale securities | ( | Net securities gains (losses) | ||||||||||||
Tax effect | Income tax expense | |||||||||||||
( | Net of tax | |||||||||||||
Amortization of defined benefit pension items | ( | Other expense | ||||||||||||
Tax effect | Income tax expense | |||||||||||||
( | Net of tax | |||||||||||||
Total reclassifications for the period | $ | ( | Net income |
Details about Accumulated Other Comprehensive Income (Loss) Components | Amount Reclassified From Accumulated Other Comprehensive Income (Loss) | Affected Line Item in the Statement Where Net Income is Presented | ||||||||||||
(dollars in thousands) | ||||||||||||||
Amortization of unrealized losses on held-to-maturity securities | $ | ( | Interest income | |||||||||||
Realized gains and (losses) on available-for-sale securities | Net securities gains (losses) | |||||||||||||
Tax effect | Income tax expense | |||||||||||||
( | Net of tax | |||||||||||||
Amortization of defined benefit pension items | ( | Other expense | ||||||||||||
Tax effect | Income tax expense | |||||||||||||
( | Net of tax | |||||||||||||
Total reclassifications for the period | $ | ( | Net income |
Years ending December 31, (in thousands) | Operating Lease Obligation | |||||||
2024 | $ | |||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
2029 and thereafter | ||||||||
Total undiscounted lease payments | ||||||||
Less imputed interest | ( | |||||||
$ | ||||||||
$ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Lease cost | ||||||||||||||||||||||||||
Operating lease cost | $ | $ | $ | $ | ||||||||||||||||||||||
Short-term lease cost | ||||||||||||||||||||||||||
Total lease cost | $ | $ | $ | $ | ||||||||||||||||||||||
Other information | ||||||||||||||||||||||||||
Operating cash outflows from operating leases | $ | $ | $ | $ | ||||||||||||||||||||||
Weighted-average remaining lease term - operating leases | ||||||||||||||||||||||||||
Weighted average discount rate - operating leases | % | % | % | % |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Income Statement Summary: | ||||||||||||||||||||||||||
Net interest income (a) | $ | 48,296 | 48,524 | $ | 95,712 | $ | 100,043 | |||||||||||||||||||
Provision for credit losses | 8,480 | 800 | 10,000 | 5,150 | ||||||||||||||||||||||
Noninterest income (b) | 20,439 | 11,501 | 33,051 | 21,815 | ||||||||||||||||||||||
Noninterest expense (c) | 33,333 | 42,734 | 64,038 | 72,168 | ||||||||||||||||||||||
Other Data: | ||||||||||||||||||||||||||
Efficiency ratio (1) | 48.49 | % | 71.19 | % | 49.73 | % | 59.22 | % | ||||||||||||||||||
Diluted EPS | $ | 0.87 | $ | 0.57 | $ | 1.78 | $ | 1.51 | ||||||||||||||||||
Average Equity/Average Assets | 9.62 | % | 9.39 | % | 9.73 | % | 9.26 | % | ||||||||||||||||||
Tangible capital ratio (2) | 9.91 | 9.04 | 9.91 | 9.04 | ||||||||||||||||||||||
Adjusted tangible capital ratio (3) | 12.18 | 11.45 | 12.18 | 11.45 | ||||||||||||||||||||||
Net charge-offs to average loans | 0.08 | 0.00 | 0.05 | 0.24 | ||||||||||||||||||||||
Net interest margin | 3.17 | 3.28 | 3.16 | 3.41 | ||||||||||||||||||||||
Noninterest income to total revenue | 29.74 | 19.16 | 25.67 | 17.90 | ||||||||||||||||||||||
Pretax pre-provision earnings (4) | $ | 35,402 | $ | 17,291 | $ | 64,725 | $ | 49,690 |
As of and For The | As of and For The | |||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(dollars in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Total Equity | $ | 654,590 | $ | 591,995 | $ | 654,590 | $ | 591,995 | ||||||||||||||||||
Less: Goodwill | (4,970) | (4,970) | (4,970) | (4,970) | ||||||||||||||||||||||
Plus: Deferred Tax Assets Related to Goodwill | 1,167 | 1,167 | 1,167 | 1,167 | ||||||||||||||||||||||
Tangible Common Equity (A) | 650,787 | 588,192 | 650,787 | 588,192 | ||||||||||||||||||||||
Market Value Adjustment in AOCI | 169,747 | 176,898 | 169,747 | 176,898 | ||||||||||||||||||||||
Adjusted Tangible Common Equity (C) | 820,534 | 765,090 | 820,534 | 765,090 | ||||||||||||||||||||||
Total Assets | $ | 6,568,807 | $ | 6,509,546 | $ | 6,568,807 | $ | 6,509,546 | ||||||||||||||||||
Less: Goodwill | (4,970) | (4,970) | (4,970) | (4,970) | ||||||||||||||||||||||
Plus: Deferred Tax Assets Related to Goodwill | 1,167 | 1,167 | 1,167 | 1,167 | ||||||||||||||||||||||
Tangible Assets (B) | 6,565,004 | 6,505,743 | 6,565,004 | 6,505,743 | ||||||||||||||||||||||
Market Value Adjustment in AOCI | 169,747 | 176,898 | 169,747 | 176,898 | ||||||||||||||||||||||
Adjusted Tangible Assets (D) | 6,734,751 | 6,682,641 | 6,734,751 | 6,682,641 | ||||||||||||||||||||||
Ending Common Shares Issued (E) | 25,679,066 | 25,607,663 | 25,679,066 | 25,607,663 | ||||||||||||||||||||||
Tangible Book Value per Common Share (A/E) | $ | 25.34 | $ | 22.97 | $ | 25.34 | $ | 22.97 | ||||||||||||||||||
Tangible Capital Ratio (A/B) | 9.91 | % | 9.04 | % | 9.91 | % | 9.04 | % | ||||||||||||||||||
Adjusted Tangible Capital Ratio (C/D) | 12.18 | % | 11.45 | % | 12.18 | % | 11.45 | % | ||||||||||||||||||
Net Interest Income | $ | 48,296 | $ | 48,524 | $ | 95,712 | $ | 100,043 | ||||||||||||||||||
Plus: Noninterest Income | 20,439 | 11,501 | 33,051 | 21,815 | ||||||||||||||||||||||
Minus: Noninterest Expense | (33,333) | (42,734) | (64,038) | (72,168) | ||||||||||||||||||||||
Pretax Pre-Provision Earnings | $ | 35,402 | $ | 17,291 | $ | 64,725 | $ | 49,690 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
(dollars in thousands, except per share data) | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |||||||||||||||||||
Noninterest Income | $ | 20,439 | $ | 11,501 | $ | 33,051 | $ | 21,815 | |||||||||||||||
Less: Net Gain on Visa Shares | (9,011) | 0 | (9,011) | 0 | |||||||||||||||||||
Less: Insurance Recoveries | 0 | 0 | (1,000) | 0 | |||||||||||||||||||
Adjusted Core Noninterest Income | $ | 11,428 | $ | 11,501 | $ | 23,040 | $ | 21,815 | |||||||||||||||
Noninterest Expense | $ | 33,333 | $ | 42,734 | $ | 64,038 | $ | 72,168 | |||||||||||||||
Less: Legal Accrual | (4,537) | 0 | (4,537) | 0 | |||||||||||||||||||
Less: Wire Fraud Loss | 0 | (18,058) | 0 | (18,058) | |||||||||||||||||||
Plus: Salaries and Employee Benefits (1) | 0 | 1,850 | 0 | 1,850 | |||||||||||||||||||
Adjusted Core Noninterest Expense | $ | 28,796 | $ | 26,526 | $ | 59,501 | $ | 55,960 | |||||||||||||||
Earnings Before Income Taxes | $ | 26,922 | $ | 16,491 | $ | 54,725 | $ | 44,540 | |||||||||||||||
Adjusted Core Impact: | |||||||||||||||||||||||
Noninterest Income | (9,011) | 0 | (10,011) | 0 | |||||||||||||||||||
Noninterest Expense | 4,537 | 16,208 | 4,537 | 16,208 | |||||||||||||||||||
Total Adjusted Core Impact | (4,474) | 16,208 | (5,474) | 16,208 | |||||||||||||||||||
Adjusted Earnings Before Income Taxes | 22,448 | 32,699 | 49,251 | 60,748 | |||||||||||||||||||
Tax Effect | (3,261) | (5,873) | (7,414) | (9,644) | |||||||||||||||||||
Core Operational Profitability (2) | $ | 19,187 | $ | 26,826 | $ | 41,837 | $ | 51,104 | |||||||||||||||
Diluted Earnings Per Common Share | $ | 0.87 | $ | 0.57 | $ | 1.78 | $ | 1.51 | |||||||||||||||
Impact of Adjusted Core Items | (0.13) | 0.48 | (0.16) | 0.48 | |||||||||||||||||||
Core Operational Diluted Earnings Per Common Share | $ | 0.74 | $ | 1.05 | $ | 1.62 | $ | 1.99 | |||||||||||||||
Adjusted Core Efficiency Ratio | 48.22 | % | 44.19 | % | 50.11 | % | 45.92 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||||||||||||||
(fully tax equivalent basis, dollars in thousands) | Average Balance | Interest | Yield (1)/ Rate | Average Balance | Interest | Yield (1)/ Rate | ||||||||||||||||||||||||||||||||
Earning Assets | ||||||||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||||
Taxable (2)(3) | $ | 4,955,106 | $ | 166,268 | 6.75 | % | $ | 4,704,075 | $ | 144,589 | 6.20 | % | ||||||||||||||||||||||||||
Tax exempt (1) | 47,829 | 1,901 | 7.99 | 57,709 | 2,322 | 8.11 | ||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||||||||
Securities (1) | 1,138,639 | 16,117 | 2.85 | 1,230,421 | 17,476 | 2.86 | ||||||||||||||||||||||||||||||||
Short-term investments | 2,773 | 68 | 4.93 | 2,275 | 48 | 4.25 | ||||||||||||||||||||||||||||||||
Interest bearing deposits | 111,758 | 2,880 | 5.18 | 87,529 | 1,951 | 4.49 | ||||||||||||||||||||||||||||||||
Total earning assets | $ | 6,256,105 | $ | 187,234 | 6.02 | % | $ | 6,082,009 | $ | 166,386 | 5.52 | % | ||||||||||||||||||||||||||
Less: Allowance for credit losses | (73,299) | (72,366) | ||||||||||||||||||||||||||||||||||||
Nonearning Assets | ||||||||||||||||||||||||||||||||||||||
Cash and due from banks | 66,551 | 72,797 | ||||||||||||||||||||||||||||||||||||
Premises and equipment | 58,292 | 58,657 | ||||||||||||||||||||||||||||||||||||
Other nonearning assets | 291,062 | 281,465 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 6,598,711 | $ | 6,422,562 | ||||||||||||||||||||||||||||||||||
Interest Bearing Liabilities | ||||||||||||||||||||||||||||||||||||||
Savings deposits | $ | 292,378 | $ | 97 | 0.07 | % | $ | 376,281 | $ | 137 | 0.07 | % | ||||||||||||||||||||||||||
Interest bearing checking accounts | 3,161,230 | 63,688 | 4.05 | 2,844,181 | 48,627 | 3.45 | ||||||||||||||||||||||||||||||||
Time deposits: | ||||||||||||||||||||||||||||||||||||||
In denominations under $100,000 | 220,643 | 3,788 | 3.45 | 189,734 | 1,789 | 1.90 | ||||||||||||||||||||||||||||||||
In denominations over $100,000 | 798,442 | 17,954 | 4.52 | 553,472 | 7,976 | 2.91 | ||||||||||||||||||||||||||||||||
Miscellaneous short-term borrowings | 126,443 | 3,531 | 5.62 | 213,990 | 5,130 | 4.83 | ||||||||||||||||||||||||||||||||
Total interest bearing liabilities | $ | 4,599,136 | $ | 89,058 | 3.89 | % | $ | 4,177,658 | $ | 63,659 | 3.07 | % | ||||||||||||||||||||||||||
Noninterest Bearing Liabilities | ||||||||||||||||||||||||||||||||||||||
Demand deposits | 1,252,503 | 1,555,877 | ||||||||||||||||||||||||||||||||||||
Other liabilities | 105,069 | 94,175 | ||||||||||||||||||||||||||||||||||||
Stockholders' Equity | 642,003 | 594,852 | ||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 6,598,711 | $ | 6,422,562 | ||||||||||||||||||||||||||||||||||
Interest Margin Recap | ||||||||||||||||||||||||||||||||||||||
Interest income/average earning assets | 187,234 | 6.02 | % | 166,386 | 5.52 | % | ||||||||||||||||||||||||||||||||
Interest expense/average earning assets | 89,058 | 2.86 | 63,659 | 2.11 | ||||||||||||||||||||||||||||||||||
Net interest income and margin | $ | 98,176 | 3.16 | % | $ | 102,727 | 3.41 | % |
Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||||||||||||||
(fully tax equivalent basis, dollars in thousands) | Average Balance | Interest | Yield (1)/ Rate | Average Balance | Interest | Yield (1)/ Rate | ||||||||||||||||||||||||||||||||
Earning Assets | ||||||||||||||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||||
Taxable (2)(3) | $ | 4,993,270 | $ | 84,226 | 6.78 | % | $ | 4,739,885 | $ | 75,047 | 6.35 | % | ||||||||||||||||||||||||||
Tax exempt (1) | 41,581 | 783 | 7.57 | 57,857 | 1,198 | 8.31 | ||||||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||||||||
Securities (1) | 1,118,776 | 8,082 | 2.91 | 1,210,870 | 8,520 | 2.82 | ||||||||||||||||||||||||||||||||
Short-term investments | 2,836 | 35 | 4.96 | 2,308 | 26 | 4.52 | ||||||||||||||||||||||||||||||||
Interest bearing deposits | 138,818 | 1,807 | 5.24 | 85,364 | 1,009 | 4.74 | ||||||||||||||||||||||||||||||||
Total earning assets | $ | 6,295,281 | $ | 94,933 | 6.07 | % | $ | 6,096,284 | $ | 85,800 | 5.65 | % | ||||||||||||||||||||||||||
Less: Allowance for credit losses | (74,166) | (71,477) | ||||||||||||||||||||||||||||||||||||
Nonearning Assets | ||||||||||||||||||||||||||||||||||||||
Cash and due from banks | 64,518 | 69,057 | ||||||||||||||||||||||||||||||||||||
Premises and equipment | 58,702 | 58,992 | ||||||||||||||||||||||||||||||||||||
Other nonearning assets | 298,619 | 280,073 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 6,642,954 | $ | 6,432,929 | ||||||||||||||||||||||||||||||||||
Interest Bearing Liabilities | ||||||||||||||||||||||||||||||||||||||
Savings deposits | $ | 289,107 | $ | 48 | 0.07 | % | $ | 360,173 | $ | 65 | 0.07 | % | ||||||||||||||||||||||||||
Interest bearing checking accounts | 3,275,502 | 33,323 | 4.09 | 2,930,285 | 27,226 | 3.73 | ||||||||||||||||||||||||||||||||
Time deposits: | ||||||||||||||||||||||||||||||||||||||
In denominations under $100,000 | 217,146 | 1,871 | 3.47 | 198,864 | 1,147 | 2.31 | ||||||||||||||||||||||||||||||||
In denominations over $100,000 | 807,304 | 9,121 | 4.54 | 611,427 | 5,173 | 3.39 | ||||||||||||||||||||||||||||||||
Miscellaneous short-term borrowings | 77,077 | 1,077 | 5.62 | 186,418 | 2,347 | 5.05 | ||||||||||||||||||||||||||||||||
Total interest bearing liabilities | $ | 4,666,136 | $ | 45,440 | 3.92 | % | $ | 4,287,167 | $ | 35,958 | 3.36 | % | ||||||||||||||||||||||||||
Noninterest Bearing Liabilities | ||||||||||||||||||||||||||||||||||||||
Demand deposits | 1,230,903 | 1,450,396 | ||||||||||||||||||||||||||||||||||||
Other liabilities | 106,916 | 91,367 | ||||||||||||||||||||||||||||||||||||
Stockholders' Equity | 638,999 | 603,999 | ||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 6,642,954 | $ | 6,432,929 | ||||||||||||||||||||||||||||||||||
Interest Margin Recap | ||||||||||||||||||||||||||||||||||||||
Interest income/average earning assets | 94,933 | 6.07 | % | 85,800 | 5.65 | % | ||||||||||||||||||||||||||||||||
Interest expense/average earning assets | 45,440 | 2.90 | 35,958 | 2.37 | ||||||||||||||||||||||||||||||||||
Net interest income and margin | $ | 49,493 | 3.17 | % | $ | 49,842 | 3.28 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | Dollar Change | Percent Change | ||||||||||||||||||||||
Wealth advisory fees | $ | 5,052 | $ | 4,471 | $ | 581 | 13.0 | % | ||||||||||||||||||
Investment brokerage fees | 1,000 | 962 | 38 | 4.0 | ||||||||||||||||||||||
Service charges on deposit accounts | 5,497 | 5,356 | 141 | 2.6 | ||||||||||||||||||||||
Loan and service fees | 5,900 | 5,848 | 52 | 0.9 | ||||||||||||||||||||||
Merchant and interchange fee income | 1,755 | 1,806 | (51) | (2.8) | ||||||||||||||||||||||
Bank owned life insurance income | 1,926 | 1,384 | 542 | 39.2 | ||||||||||||||||||||||
Interest rate swap fee income | 0 | 794 | (794) | (100.0) | ||||||||||||||||||||||
Mortgage banking income (loss) | 75 | (134) | 209 | (156.0) | ||||||||||||||||||||||
Net securities gains (losses) | (46) | 19 | (65) | (342.1) | ||||||||||||||||||||||
Net gain on Visa shares | 9,011 | 0 | 9,011 | 100.0 | ||||||||||||||||||||||
Other income | 2,881 | 1,309 | 1,572 | 120.1 | ||||||||||||||||||||||
Total noninterest income | $ | 33,051 | $ | 21,815 | $ | 11,236 | 51.5 | % | ||||||||||||||||||
Noninterest income to total revenue | 25.67 | % | 17.90 | % |
Three Months Ended June 30, | ||||||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | Dollar Change | Percent Change | ||||||||||||||||||||||
Wealth advisory fees | $ | 2,597 | $ | 2,271 | $ | 326 | 14.4 | % | ||||||||||||||||||
Investment brokerage fees | 478 | 428 | 50 | 11.7 | ||||||||||||||||||||||
Service charges on deposit accounts | 2,806 | 2,726 | 80 | 2.9 | ||||||||||||||||||||||
Loan and service fees | 3,048 | 3,002 | 46 | 1.5 | ||||||||||||||||||||||
Merchant card fee income | 892 | 929 | (37) | (4.0) | ||||||||||||||||||||||
Bank owned life insurance income (loss) | 890 | 693 | 197 | 28.4 | ||||||||||||||||||||||
Interest rate swap fee income | 0 | 794 | (794) | (100.0) | ||||||||||||||||||||||
Mortgage banking income (loss) | 23 | (35) | 58 | (165.7) | ||||||||||||||||||||||
Net securities gains (losses) | 0 | 3 | (3) | (100.0) | ||||||||||||||||||||||
Net gain on Visa shares | 9,011 | 0 | 9,011 | 100.0 | ||||||||||||||||||||||
Other income | 694 | 690 | 4 | 0.6 | ||||||||||||||||||||||
Total noninterest income | $ | 20,439 | $ | 11,501 | $ | 8,938 | 77.7 | % | ||||||||||||||||||
Noninterest income to total revenue | 29.74 | % | 19.16 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | Dollar Change | Percent Change | ||||||||||||||||||||||
Salaries and employee benefits | $ | 32,991 | $ | 27,437 | $ | 5,554 | 20.2 | % | ||||||||||||||||||
Net occupancy expense | 3,438 | 3,253 | 185 | 5.7 | ||||||||||||||||||||||
Equipment costs | 2,755 | 2,864 | (109) | (3.8) | ||||||||||||||||||||||
Data processing fees and supplies | 7,651 | 6,926 | 725 | 10.5 | ||||||||||||||||||||||
Corporate and business development | 2,646 | 2,729 | (83) | (3.0) | ||||||||||||||||||||||
FDIC insurance and other regulatory fees | 1,605 | 1,598 | 7 | 0.4 | ||||||||||||||||||||||
Professional fees | 4,586 | 4,170 | 416 | 10.0 | ||||||||||||||||||||||
Wire fraud loss | 0 | 18,058 | (18,058) | (100.0) | ||||||||||||||||||||||
Other expense | 8,366 | 5,133 | 3,233 | 63.0 | ||||||||||||||||||||||
Total noninterest expense | $ | 64,038 | $ | 72,168 | $ | (8,130) | (11.3) | % | ||||||||||||||||||
Efficiency ratio | 49.73 | % | 59.22 | % |
Three Months Ended June 30, | ||||||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | Dollar Change | Percent Change | ||||||||||||||||||||||
Salaries and employee benefits | $ | 16,158 | $ | 11,374 | $ | 4,784 | 42.1 | % | ||||||||||||||||||
Net occupancy expense | 1,698 | 1,681 | 17 | 1.0 | ||||||||||||||||||||||
Equipment costs | 1,343 | 1,426 | (83) | (5.8) | ||||||||||||||||||||||
Data processing fees and supplies | 3,812 | 3,474 | 338 | 9.7 | ||||||||||||||||||||||
Corporate and business development | 1,265 | 1,298 | (33) | (2.5) | ||||||||||||||||||||||
FDIC insurance and other regulatory fees | 816 | 803 | 13 | 1.6 | ||||||||||||||||||||||
Professional fees | 2,123 | 2,049 | 74 | 3.6 | ||||||||||||||||||||||
Wire fraud loss | 0 | 18,058 | (18,058) | (100.0) | ||||||||||||||||||||||
Other expense | 6,118 | 2,571 | 3,547 | 138.0 | ||||||||||||||||||||||
Total noninterest expense | $ | 33,333 | $ | 42,734 | $ | (9,401) | (22.0) | % | ||||||||||||||||||
Efficiency ratio | 48.49 | % | 71.19 | % |
June 30, 2024 | December 31, 2023 | |||||||||||||||||||||||||
(dollars in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||
Available-for-Sale | ||||||||||||||||||||||||||
U.S government sponsored agencies | $ | 142,183 | $ | 113,697 | $ | 146,692 | $ | 119,479 | ||||||||||||||||||
Mortgage-backed securities: residential | 498,259 | 419,230 | 522,275 | 447,842 | ||||||||||||||||||||||
State and municipal securities | 547,540 | 460,130 | 557,352 | 484,407 | ||||||||||||||||||||||
Total available-for-sale | $ | 1,187,982 | $ | 993,057 | $ | 1,226,319 | $ | 1,051,728 | ||||||||||||||||||
Held-to-Maturity | ||||||||||||||||||||||||||
State and municipal securities | $ | 130,746 | $ | 113,997 | $ | 129,918 | $ | 119,215 | ||||||||||||||||||
Total Investment Portfolio | $ | 1,318,728 | $ | 1,107,054 | $ | 1,356,237 | $ | 1,170,943 |
(dollars in thousands) | June 30, 2024 | December 31, 2023 | Current Period Change | |||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 1,526,277 | 30.2 | % | $ | 1,420,764 | 28.9 | % | $ | 105,513 | ||||||||||||||||||||||
Commercial real estate and multi-family residential loans | 2,503,380 | 49.5 | 2,437,534 | 49.5 | 65,846 | |||||||||||||||||||||||||||
Agri-business and agricultural loans | 361,064 | 7.2 | 388,764 | 7.9 | (27,700) | |||||||||||||||||||||||||||
Other commercial loans | 96,703 | 1.9 | 120,726 | 2.5 | (24,023) | |||||||||||||||||||||||||||
Consumer 1-4 family mortgage loans | 469,907 | 9.3 | 456,187 | 9.3 | 13,720 | |||||||||||||||||||||||||||
Other consumer loans | 97,895 | 1.9 | 96,022 | 1.9 | 1,873 | |||||||||||||||||||||||||||
Subtotal, gross loans | 5,055,226 | 100.0 | % | 4,919,997 | 100.0 | % | 135,229 | |||||||||||||||||||||||||
Less: Allowance for credit losses | (80,711) | (71,972) | (8,739) | |||||||||||||||||||||||||||||
Net deferred loan fees | (2,885) | (3,463) | 578 | |||||||||||||||||||||||||||||
Loans, net | $ | 4,971,630 | $ | 4,844,562 | $ | 127,068 |
(dollars in thousands) | June 30, 2024 | December 31, 2023 | ||||||||||||
Nonaccrual loans | $ | 57,124 | $ | 15,687 | ||||||||||
Loans past due over 90 days and still accruing | 26 | 27 | ||||||||||||
Total nonperforming loans | 57,150 | 15,714 | ||||||||||||
Other real estate owned | 384 | 384 | ||||||||||||
Repossessions | 90 | 8 | ||||||||||||
Total nonperforming assets | $ | 57,624 | $ | 16,106 | ||||||||||
Individually analyzed loans | $ | 78,533 | $ | 16,124 | ||||||||||
Nonperforming loans to total loans | 1.13 | % | 0.32 | % | ||||||||||
Nonperforming assets to total assets | 0.88 | % | 0.25 | % |
Six months ended June 30, | ||||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||
(dollars in thousands) | Balance | Rate | Balance | Rate | ||||||||||||||||||||||
Noninterest bearing demand deposits | $ | 1,252,503 | 0.00 | % | $ | 1,555,877 | 0.00 | % | ||||||||||||||||||
Savings and transaction accounts: | ||||||||||||||||||||||||||
Savings deposits | 292,378 | 0.07 | 376,281 | 0.07 | ||||||||||||||||||||||
Interest bearing demand deposits | 3,161,230 | 4.05 | 2,844,181 | 3.45 | ||||||||||||||||||||||
Time deposits: | ||||||||||||||||||||||||||
Deposits of $100,000 or more | 798,442 | 4.52 | 553,472 | 2.91 | ||||||||||||||||||||||
Other time deposits | 220,643 | 3.45 | 189,734 | 1.90 | ||||||||||||||||||||||
Total deposits | $ | 5,725,196 | 3.00 | % | $ | 5,519,545 | 2.14 | % | ||||||||||||||||||
FHLB advances and other borrowings | 126,443 | 5.62 | 213,990 | 4.83 | ||||||||||||||||||||||
Total funding sources | $ | 5,851,639 | 3.06 | % | $ | 5,733,535 | 2.24 | % |
(dollars in thousands) | June 30, 2024 | Percentage of Total | December 31, 2023 | Percentage of Total | Current Period Change | |||||||||||||||||||||||||||
Retail | $ | 1,724,777 | 29.9 | % | $ | 1,794,958 | 31.4 | % | $ | (70,181) | ||||||||||||||||||||||
Commercial | 2,150,127 | 37.3 | 2,227,147 | 38.9 | (77,020) | |||||||||||||||||||||||||||
Public funds | 1,727,593 | 30.0 | 1,563,015 | 27.3 | 164,578 | |||||||||||||||||||||||||||
Core deposits | $ | 5,602,497 | 97.2 | % | $ | 5,585,120 | 97.6 | % | $ | 17,377 | ||||||||||||||||||||||
Brokered deposits | 161,040 | 2.8 | 135,405 | 2.4 | 25,635 | |||||||||||||||||||||||||||
Total deposits | $ | 5,763,537 | 100.0 | % | $ | 5,720,525 | 100.0 | % | $ | 43,012 |
Actual | Minimum Required For Capital Adequacy Purposes | For Capital Adequacy Purposes Plus Capital Conservation Buffer | Minimum Required to Be Well Capitalized Under Prompt Corrective Action Regulations | |||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2024: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | 891,912 | 15.53 | % | $ | 459,531 | 8.00 | % | $ | 603,135 | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||
Bank | $ | 887,497 | 15.46 | % | $ | 459,279 | 8.00 | % | $ | 602,803 | 10.50 | % | $ | 574,099 | 10.00 | % | ||||||||||||||||||||||||||||||||||
Tier I Capital (to Risk Weighted Assets) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | 819,990 | 14.28 | % | $ | 344,649 | 6.00 | % | $ | 488,252 | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||
Bank | $ | 815,536 | 14.21 | % | $ | 344,459 | 6.00 | % | $ | 487,984 | 8.50 | % | $ | 459,279 | 8.00 | % | ||||||||||||||||||||||||||||||||||
Common Equity Tier 1 (CET1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | 819,990 | 14.28 | % | $ | 258,486 | 4.50 | % | $ | 402,090 | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||
Bank | $ | 815,536 | 14.21 | % | $ | 258,344 | 4.50 | % | $ | 401,869 | 7.00 | % | $ | 373,164 | 6.50 | % | ||||||||||||||||||||||||||||||||||
Tier I Capital (to Average Assets) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | 819,990 | 11.98 | % | $ | 273,877 | 4.00 | % | $ | 273,877 | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||
Bank | $ | 815,536 | 11.92 | % | $ | 273,686 | 4.00 | % | $ | 273,686 | 4.00 | % | $ | 342,108 | 5.00 | % | ||||||||||||||||||||||||||||||||||
As of December 31, 2023: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | 870,390 | 15.47 | % | $ | 450,211 | 8.00 | % | $ | 590,901 | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||
Bank | $ | 852,405 | 15.16 | % | $ | 449,894 | 8.00 | % | $ | 590,486 | 10.50 | % | $ | 562,367 | 10.00 | % | ||||||||||||||||||||||||||||||||||
Tier I Capital (to Risk Weighted Assets) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | 799,929 | 14.21 | % | $ | 337,658 | 6.00 | % | $ | 478,349 | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||
Bank | $ | 781,999 | 13.91 | % | $ | 337,420 | 6.00 | % | $ | 478,012 | 8.50 | % | $ | 449,894 | 8.00 | % | ||||||||||||||||||||||||||||||||||
Common Equity Tier 1 (CET1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | 799,929 | 14.21 | % | $ | 253,243 | 4.50 | % | $ | 393,934 | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||
Bank | $ | 781,999 | 13.91 | % | $ | 253,065 | 4.50 | % | $ | 393,657 | 7.00 | % | $ | 365,539 | 6.50 | % | ||||||||||||||||||||||||||||||||||
Tier I Capital (to Average Assets) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | 799,929 | 11.82 | % | $ | 270,636 | 4.00 | % | $ | 270,636 | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||
Bank | $ | 781,999 | 11.58 | % | $ | 270,041 | 4.00 | % | $ | 270,041 | 4.00 | % | $ | 337,551 | 5.00 | % |
(dollars in thousands) | Base | Falling (300 Basis Points) | Falling (200 Basis Points) | Falling (100 Basis Points) | Falling (50 Basis Points) | Falling (25 Basis Points) | Rising (25 Basis Points) | Rising (50 Basis Points) | Rising (100 Basis Points) | Rising (200 Basis Points) | Rising (300 Basis Points) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 210,872 | $ | 206,168 | $ | 208,083 | $ | 209,808 | $ | 210,458 | $ | 210,707 | $ | 210,969 | $ | 211,009 | $ | 211,033 | $ | 211,048 | $ | 211,061 | ||||||||||||||||||||||||||||||||||||||||||||||
Variance from Base | $ | (4,704) | $ | (2,789) | $ | (1,064) | $ | (414) | $ | (165) | $ | 97 | $ | 137 | $ | 161 | $ | 176 | $ | 189 | ||||||||||||||||||||||||||||||||||||||||||||||||
Percent of change from Base | (2.23) | % | (1.32) | % | (0.50) | % | (0.20) | % | (0.08) | % | 0.05 | % | 0.06 | % | 0.08 | % | 0.08 | % | 0.09 | % |
Period | Total Number of Shares Purchased (a) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Appropriate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (b) | ||||||||||||||||||||||
April 1 - 30 | 0 | $ | 0.00 | 0 | $ | 30,000,000 | ||||||||||||||||||||
May 1 - 31 | 1,348 | 61.87 | 0 | 30,000,000 | ||||||||||||||||||||||
June 1 - 30 | 0 | 0.00 | 0 | 30,000,000 | ||||||||||||||||||||||
Total | 1,348 | $ | 61.87 | 0 | $ | 30,000,000 |
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
101 | Interactive Data File | ||||
Interactive data files pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023; (ii) Consolidated Statements of Income for the three and six months ended June 30, 2024 and June 30, 2023; (iii) Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and June 30, 2023; (iv) Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended June 30, 2024 and June 30, 2023; (v) Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and June 30, 2023; and (vi) Notes to Unaudited Consolidated Financial Statements. | |||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
Date: August 7, 2024 | /s/ David M. Findlay | ||||
David M. Findlay – Chairman and Chief Executive Officer | |||||
Date: August 7, 2024 | /s/ Lisa M. O’Neill | ||||
Lisa M. O’Neill – Executive Vice President and | |||||
Chief Financial Officer | |||||
(principal financial officer) | |||||
Date: August 7, 2024 | /s/ Brok A. Lahrman | ||||
Brok A. Lahrman – Senior Vice President and Chief Accounting Officer | |||||
(principal accounting officer) |
Date: August 7, 2024 | /s/ David M. Findlay | ||||
David M. Findlay | |||||
Chairman and Chief Executive Officer |
Date: August 7, 2024 | /s/ Lisa M. O’Neill | ||||
Lisa M. O’Neill | |||||
Chief Financial Officer |
/s/ David M. Findlay | ||
David M. Findlay | ||
Chairman and Chief Executive Officer | ||
August 7, 2024 |
/s/ Lisa M. O’Neill | ||
Lisa M. O’Neill | ||
Chief Financial Officer | ||
August 7, 2024 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Securities held-to-maturity, fair value | $ 113,997 | $ 119,215 |
Allowance for credit losses | $ 80,711 | $ 71,972 |
Common stock, shares authorized (in shares) | 90,000,000 | 90,000,000 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares issued (in shares) | 25,968,167 | 25,903,686 |
Common stock, shares outstanding (in shares) | 25,503,744 | 25,430,566 |
Treasury stock, at cost (in shares) | 464,423 | 473,120 |
CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Interest and fees on loans | ||||
Taxable | $ 84,226 | $ 75,047 | $ 166,268 | $ 144,589 |
Tax exempt | 632 | 960 | 1,532 | 1,861 |
Interest and dividends on securities | ||||
Taxable | 3,104 | 3,376 | 6,143 | 6,889 |
Tax exempt | 3,932 | 4,064 | 7,879 | 8,364 |
Other interest income | 1,842 | 1,035 | 2,948 | 1,999 |
Total interest income | 93,736 | 84,482 | 184,770 | 163,702 |
Interest on deposits | 44,363 | 33,611 | 85,527 | 58,529 |
Interest on short-term borrowings | 1,077 | 2,347 | 3,531 | 5,130 |
Total interest expense | 45,440 | 35,958 | 89,058 | 63,659 |
NET INTEREST INCOME | 48,296 | 48,524 | 95,712 | 100,043 |
Provision for credit losses | 8,480 | 800 | 10,000 | 5,150 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 39,816 | 47,724 | 85,712 | 94,893 |
NONINTEREST INCOME | ||||
Wealth advisory fees | 2,597 | 2,271 | 5,052 | 4,471 |
Investment brokerage fees | 478 | 428 | 1,000 | 962 |
Service charges on deposit accounts | 2,806 | 2,726 | 5,497 | 5,356 |
Loan and service fees | 3,048 | 3,002 | 5,900 | 5,848 |
Merchant and interchange fee income | 892 | 929 | 1,755 | 1,806 |
Bank owned life insurance income | 890 | 693 | 1,926 | 1,384 |
Interest rate swap fee income | 0 | 794 | 0 | 794 |
Mortgage banking income (loss) | 23 | (35) | 75 | (134) |
Net securities gains (losses) | 0 | 3 | (46) | 19 |
Equity securities, realized net gain | 9,011 | 0 | 9,011 | 0 |
Other income | 694 | 690 | 2,881 | 1,309 |
Total noninterest income | 20,439 | 11,501 | 33,051 | 21,815 |
NONINTEREST EXPENSE | ||||
Salaries and employee benefits | 16,158 | 11,374 | 32,991 | 27,437 |
Net occupancy expense | 1,698 | 1,681 | 3,438 | 3,253 |
Equipment costs | 1,343 | 1,426 | 2,755 | 2,864 |
Data processing fees and supplies | 3,812 | 3,474 | 7,651 | 6,926 |
Corporate and business development | 1,265 | 1,298 | 2,646 | 2,729 |
FDIC insurance and other regulatory fees | 816 | 803 | 1,605 | 1,598 |
Professional fees | 2,123 | 2,049 | 4,586 | 4,170 |
Wire fraud loss | 0 | 18,058 | 0 | 18,058 |
Other expense | 6,118 | 2,571 | 8,366 | 5,133 |
Total noninterest expense | 33,333 | 42,734 | 64,038 | 72,168 |
INCOME BEFORE INCOME TAX EXPENSE | 26,922 | 16,491 | 54,725 | 44,540 |
Income tax expense | 4,373 | 1,880 | 8,775 | 5,651 |
NET INCOME | $ 22,549 | $ 14,611 | $ 45,950 | $ 38,889 |
BASIC WEIGHTED AVERAGE COMMON SHARES (in shares) | 25,678,231 | 25,607,663 | 25,667,647 | 25,595,412 |
BASIC EARNINGS PER COMMON SHARE (in dollars per share) | $ 0.88 | $ 0.57 | $ 1.79 | $ 1.52 |
DILUTED WEIGHTED AVERAGE COMMON SHARES (in shares) | 25,742,871 | 25,686,354 | 25,746,773 | 25,696,370 |
DILUTED EARNINGS PER COMMON SHARE (in dollars per share) | $ 0.87 | $ 0.57 | $ 1.78 | $ 1.51 |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands |
Total |
Cumulative Effect, Period of Adoption, Adjustment |
Cumulative Effect, Period of Adoption, Adjusted Balance |
Total Stockholders’ Equity |
Total Stockholders’ Equity
Cumulative Effect, Period of Adoption, Adjustment
|
Total Stockholders’ Equity
Cumulative Effect, Period of Adoption, Adjusted Balance
|
Common Stock |
Common Stock
Cumulative Effect, Period of Adoption, Adjusted Balance
|
Retained Earnings |
Retained Earnings
Cumulative Effect, Period of Adoption, Adjustment
|
Retained Earnings
Cumulative Effect, Period of Adoption, Adjusted Balance
|
Accumulated Other Comprehensive Income (Loss) |
Accumulated Other Comprehensive Income (Loss)
Cumulative Effect, Period of Adoption, Adjusted Balance
|
Treasury Stock |
Treasury Stock
Cumulative Effect, Period of Adoption, Adjusted Balance
|
Noncontrolling Interest |
Noncontrolling Interest
Cumulative Effect, Period of Adoption, Adjusted Balance
|
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance (in shares) at Dec. 31, 2022 | 25,349,225 | ||||||||||||||||
Beginning balance at Dec. 31, 2022 | $ 568,887 | $ 568,798 | $ 127,004 | $ 646,100 | $ (188,923) | $ (15,383) | $ 89 | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||
Net income | 38,889 | 38,889 | 38,889 | ||||||||||||||
Other comprehensive income (loss), net of tax | 11,278 | 11,278 | 11,278 | ||||||||||||||
Cash dividends declared and paid | (23,542) | (23,542) | (23,542) | ||||||||||||||
Treasury shares purchased under deferred directors' plan (in shares) | (4,501) | ||||||||||||||||
Treasury shares purchased under deferred directors' plan | 0 | 0 | $ 285 | (285) | |||||||||||||
Treasury shares sold and distributed under deferred directors' plan (in shares) | 12,855 | ||||||||||||||||
Treasury shares sold and distributed under deferred directors' plan | 0 | 0 | $ (405) | 405 | |||||||||||||
Stock activity under equity compensation plans (in shares) | 71,637 | ||||||||||||||||
Stock activity under equity compensation plans | (3,124) | (3,124) | $ (3,124) | ||||||||||||||
Stock based compensation expense | (393) | (393) | $ (393) | ||||||||||||||
Ending balance (in shares) at Jun. 30, 2023 | 25,429,216 | ||||||||||||||||
Ending balance at Jun. 30, 2023 | 591,995 | 591,906 | $ 123,367 | 661,447 | (177,645) | (15,263) | 89 | ||||||||||
Beginning balance (in shares) at Dec. 31, 2022 | 25,349,225 | ||||||||||||||||
Beginning balance at Dec. 31, 2022 | $ 568,887 | 568,798 | $ 127,004 | 646,100 | (188,923) | (15,383) | 89 | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||
Accounting standards update | Accounting Standards Update 2023-02 [Member] | ||||||||||||||||
Ending balance (in shares) at Dec. 31, 2023 | 25,430,566 | 25,430,566 | 25,430,566 | ||||||||||||||
Ending balance at Dec. 31, 2023 | $ 649,793 | $ (532) | $ 649,261 | 649,704 | $ (532) | $ 649,172 | $ 127,692 | $ 127,692 | 692,760 | $ (532) | $ 692,228 | (155,195) | $ (155,195) | (15,553) | $ (15,553) | 89 | $ 89 |
Beginning balance (in shares) at Mar. 31, 2023 | 25,430,917 | ||||||||||||||||
Beginning balance at Mar. 31, 2023 | 602,006 | 601,917 | $ 125,840 | 658,629 | (167,370) | (15,182) | 89 | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||
Net income | 14,611 | 14,611 | 14,611 | ||||||||||||||
Other comprehensive income (loss), net of tax | (10,275) | (10,275) | (10,275) | ||||||||||||||
Cash dividends declared and paid | (11,793) | (11,793) | (11,793) | ||||||||||||||
Treasury shares purchased under deferred directors' plan (in shares) | (1,701) | ||||||||||||||||
Treasury shares purchased under deferred directors' plan | 0 | 0 | $ 81 | (81) | |||||||||||||
Stock based compensation expense | (2,554) | (2,554) | $ (2,554) | ||||||||||||||
Ending balance (in shares) at Jun. 30, 2023 | 25,429,216 | ||||||||||||||||
Ending balance at Jun. 30, 2023 | $ 591,995 | 591,906 | $ 123,367 | 661,447 | (177,645) | (15,263) | 89 | ||||||||||
Beginning balance (in shares) at Dec. 31, 2023 | 25,430,566 | 25,430,566 | 25,430,566 | ||||||||||||||
Beginning balance at Dec. 31, 2023 | $ 649,793 | $ (532) | $ 649,261 | 649,704 | $ (532) | $ 649,172 | $ 127,692 | $ 127,692 | 692,760 | $ (532) | $ 692,228 | (155,195) | $ (155,195) | (15,553) | $ (15,553) | 89 | $ 89 |
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||
Net income | 45,950 | 45,950 | 45,950 | ||||||||||||||
Other comprehensive income (loss), net of tax | (15,263) | (15,263) | (15,263) | ||||||||||||||
Cash dividends declared and paid | (24,637) | (24,637) | (24,637) | ||||||||||||||
Treasury shares purchased under deferred directors' plan (in shares) | (4,578) | ||||||||||||||||
Treasury shares purchased under deferred directors' plan | 0 | 0 | $ 291 | (291) | |||||||||||||
Treasury shares sold and distributed under deferred directors' plan (in shares) | 13,275 | ||||||||||||||||
Treasury shares sold and distributed under deferred directors' plan | 0 | 0 | $ (391) | 391 | |||||||||||||
Stock activity under equity compensation plans (in shares) | 64,481 | ||||||||||||||||
Stock activity under equity compensation plans | (2,596) | (2,596) | $ (2,596) | ||||||||||||||
Stock based compensation expense | $ 1,875 | 1,875 | $ 1,875 | ||||||||||||||
Ending balance (in shares) at Jun. 30, 2024 | 25,503,744 | 25,503,744 | |||||||||||||||
Ending balance at Jun. 30, 2024 | $ 654,590 | 654,501 | $ 126,871 | 713,541 | (170,458) | (15,453) | 89 | ||||||||||
Beginning balance (in shares) at Mar. 31, 2024 | 25,503,425 | ||||||||||||||||
Beginning balance at Mar. 31, 2024 | 647,009 | 646,920 | $ 125,873 | 703,330 | (166,913) | (15,370) | 89 | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||
Net income | 22,549 | 22,549 | 22,549 | ||||||||||||||
Other comprehensive income (loss), net of tax | (3,545) | (3,545) | (3,545) | ||||||||||||||
Cash dividends declared and paid | (12,338) | (12,338) | (12,338) | ||||||||||||||
Treasury shares purchased under deferred directors' plan (in shares) | (1,348) | ||||||||||||||||
Treasury shares purchased under deferred directors' plan | 0 | 0 | $ 83 | (83) | |||||||||||||
Stock activity under equity compensation plans (in shares) | 1,667 | ||||||||||||||||
Stock activity under equity compensation plans | (80) | (80) | $ (80) | ||||||||||||||
Stock based compensation expense | $ 995 | 995 | $ 995 | ||||||||||||||
Ending balance (in shares) at Jun. 30, 2024 | 25,503,744 | 25,503,744 | |||||||||||||||
Ending balance at Jun. 30, 2024 | $ 654,590 | $ 654,501 | $ 126,871 | $ 713,541 | $ (170,458) | $ (15,453) | $ 89 |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared (in dollars per share) | $ 0.48 | $ 0.46 | $ 0.96 | $ 0.92 |
BASIS OF PRESENTATION |
6 Months Ended |
---|---|
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION This report is filed for Lakeland Financial Corporation (the "Company"), which has one wholly owned subsidiary, Lake City Bank (the "Bank"). Also included in this report are results for the Bank’s wholly owned subsidiary, LCB Investments II, Inc. ("LCB Investments"), which manages the Bank’s investment securities portfolio. LCB Investments owns LCB Funding, Inc. ("LCB Funding"), a real estate investment trust. All significant inter-company balances and transactions have been eliminated in consolidation. The unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions for Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and are unaudited. In the opinion of management, all adjustments (all of which are normal and recurring in nature) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for any subsequent reporting periods, including the year ending December 31, 2024. The Company’s 2023 Annual Report on Form 10-K should be read in conjunction with these statements. Adoption of New Accounting Standards On March 28, 2023, the FASB issued ASU 2023-02, "Investments - Equity Method and Join Ventures (ASC 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method." ASU 2014-01, "Investments - Equity method and Joint Ventures (ASC 323): Accounting for Investments in Qualified Affordable Housing Projects", previously introduced the option to apply the proportional amortization method to account for investments made primarily for the purpose of receiving income tax credits and other income tax benefits when certain requirements are met; however, this guidance limited the proportional amortization method to investments in low-income-housing tax credit (LIHTC) structures. The proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization of the investment and the income tax credits being presented net in the income statement as a component of net income tax expense (benefit). Equity investments in other tax credit structures are typically accounted for using the equity method, which results in investment income, gains and losses, and tax credits being presented gross on the income statement in their respective line items. The amendments in this update permit reporting entities to elect to account for certain tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the income tax benefits in the income statement as a component of income tax expense (benefit). To qualify for the proportional amortization method, all of the following conditions must be met: (1) It is probable that the income tax credits allocated to the tax equity investor will be available; (2) The tax equity investor does not have the ability to exercise significant influence over the operating and financial policies of the underlying project; (3) Substantially all of the projected benefits are from income tax credits and other income tax benefits (projected benefits included income tax credits, other income tax benefits, and other non-income tax -related benefits and are determined on a discounted basis, using a discount rate that is consistent with the cash flow assumptions used by the tax equity investor in making its decision to invest in the project); (4) The tax equity investor's projected yield based solely on the cash flows from the income tax credits and other income tax benefits is positive; and (5) The tax equity investor is a limited liability investor in the limited liability entity for both legal and tax purposes, and the tax equity investor's liability is limited to its capital investment. An accounting policy election is allowed to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis rather than electing to apply the proportional amortization method at the reporting entity level or to individual investments. The amendments in this update require specific disclosures that must be applied to all investments that generate income tax credits and other income tax benefits from a tax credit program for which the entity has elected to apply the proportional amortization method. The amendments require that a reporting entity disclose certain information in annual and interim reporting periods that enable investors to understanding the following information about its investments that generate income tax credits and other income tax benefits from a tax credit program including: (1) The nature of its tax equity investments; and (2) The effect of its tax equity investments and related income tax credits and other income tax benefits on its financial position and results of operations. For public business entities, the amendments in this update were effective for fiscal years beginning after December 31, 2023, including interim periods within those fiscal years. The amendments in this update must be applied on either a modified retrospective or a retrospective basis. The Company chose the modified retrospective approach and recorded a day one adjustment of ($532,000), net of tax, to beginning retained earnings on January 1, 2024, which did not have a material impact on the consolidated financial statements. Newly Issued But Not Yet Effective Accounting Standards On October 9, 2023, the FASB issued ASU 2023-06, "Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative", which modified the disclosure or presentation requirements of a variety of Topics in the Codification and was intended to both clarify or improve such requirements and align the requirements with the SEC's regulations. The amendments to Topics of Codification provided in this update apply to all reporting entities within the scope of the affected Topics unless otherwise indicated by the update. Given the variety of Topics amended, a broad range of entities may be affected by one or more of the amendments provided in the update. The Company evaluated the amendments provided in the update and believes certain of the disclosure improvements are applicable to the Company's interim or annual disclosures. Subtopic 230-10, as amended, requires disclosure within the accounting policy in annual periods of where cash flows associated with derivative instruments and their related gains and losses are presented within the statement of cash flows. Subtopic 260-10, as amended, requires disclosure of the methods used in the diluted earnings-per-share computation for each dilutive security and clarifies that certain disclosures should be made during interim periods. Subtopic 470-10, as amended, requires disclosure of amounts and terms of unused lines of credit and unfunded commitments and the weighted-average interest rate on short-term borrowings outstanding as of the date of each balance sheet presented. The effective date for each amendment for entities subject to the SEC's existing disclosure requirements is the effective date of the removal of the related disclosure from Regulation S-X or Regulation S-K, with early adoption prohibited. The amendments in the update are to be applied prospectively. The Company will apply prospectively the provisions provided in the amendments as such provisions become effective, and does not believe the application of these modified disclosure requirements will have a material impact on the consolidated financial statements. If by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment in the update will be removed from the Codification and will not become effective. On November 27, 2023, the FASB issued ASU 2023-07, "Segment Reporting (ASC 280): Improvements to Reportable Segment Disclosures", intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. Provisions in the amendment include: (1) Requirement that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss (collectively referred to as the "significant expense principle"); (2) Requirement that a public entity disclose, on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition (the other segment items category is the difference between segment revenue less the segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss); (3) Requirement that a public entity provide all annual disclosures about a reportable segment's profit or loss and assets currently required by ASC 280 in interim periods; (4) Clarification that if the CODM uses more than one measure of a segment's profit or loss in assessing segment performance and deciding how to allocation resources, a public entity may report one or more of those additional measures of segment profit (at least one of the reported segment profit or loss measures, or the single reported measure if only one is disclosed, should be the measure that is the most consistent with the measurement principles used in measuring the corresponding amounts in the public entity's consolidated financial statements); (5) Requirement that a public entity disclose the title and position of the CODM and explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources; and (6) Requirement that a public entity that has a single reportable segment provide all the disclosures by the amendments in the update and all existing segment disclosures in ASC 280. The amendments in the update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. For public business entities, amendments in the update should be applied retrospectively to all periods presented in the financial statements, and upon transition to the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The Company is currently evaluating the impact of this standard on its disclosures, however does not expect adoption of the update to have a material impact of the consolidated financial statements. On December 13, 2023, the FASB issued ASU 2023-08, "Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets", to provide improved accounting and disclosure guidance for crypto assets. Stakeholders stated that current accounting guidance, except as provided in GAAP for certain specialized industries, surrounding crypto asset holdings as indefinite-lived intangible assets fails to provide financial statement users with decision-useful information. To remedy these shortcomings, the amendments in this update require an entity present (1) crypto assets measured at fair value separately from other intangible assets reported in the balance sheet and (2) changes from the remeasurement of crypto assets separately from changes in the carrying amounts of other intangible assets in the income statement. While the amendments in the update do not otherwise change the presentation requirements for the statement of cash flows, they do require specific presentation of cash receipts arising from crypto assets that are received as noncash consideration in the ordinary course of business and are converted nearly immediately into cash. The amendments in the update also provide for several enhancements related to disclosure of an entity's crypto asset holdings. For annual and interim reporting periods, the amendments in the update require an entity disclose the following information: (1) The name, cost basis, fair value, and number of units for each significant crypto asset holding and aggregate fair values and costs bases of the crypto asset holdings that are not individually significant; and (2) For crypto assets that are subject to contractual sale restrictions, the fair value of those crypto assets, the nature and remaining duration of the restriction(s), and the circumstances that could cause the restriction(s) to lapse. For annual reporting periods, the amendments in the update require an entity disclose the following information: (1) A rollforward, in the aggregate, of activity in the reporting period for crypto asset holdings, including additions (with a description of the activities that resulted in the additions), dispositions, gains, and losses; (2) For any dispositions for crypto assets in the reporting period, the difference between the disposal price and the cost basis and a description of the activities that resulted in the dispositions; (3) If gains and losses are not presented separately, the income statement line item in which those gains and losses are recognized; and (4) The method for determining the cost basis of crypto assets. The amendments in this update are effective for public business entities for annual periods beginning after December 15, 2024, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued (or made available for issuance). If an entity adopts the amendments in an interim period, it must adopt them as of the beginning of the fiscal year that includes that interim period. The amendments in this update require a cumulative-effect adjustment to the opening balance of retained earnings (or other appropriate components of equity or net assets) as of the beginning of the annual reporting period in which an entity adopts the amendments. The Company is currently evaluating the impact of this update on its disclosures, however does not expect the adoption of this update to have a material impact on the consolidated financial statements based upon the nature of the Company's current operations. On December 14, 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures", to address investor requests for greater transparency in regards to income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments are designed to enhance transparency surrounding income tax disclosures by requiring (1) Consistent categories and greater disaggregation of information in the rate reconciliation; and (2) Income taxes paid disaggregation by taxing jurisdiction, which will allow investors to better assess, in their capital allocation decisions, how an entity's operations and related tax risks and tax planning and operational opportunities affect its income tax rate and prospects for future cash flows. Other amendments in this update are designed to improve the effectiveness and comparability of disclosures by (1) adding disclosures of pretax income (loss) and income tax expense (benefit) to be consistent with the SEC's Regulation S-X 210.4-08(h), Rules of General Application-General Notes to Financial Statements: Income Tax Expense; and (2) Removing disclosures that are no longer considered cost beneficial or relevant. The amendments in this update are effective for public business entities for annual periods beginning after December 31, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments in this update should be applied on a prospective basis, however retrospective application is permitted. The Company is currently evaluating the impact of this update on its disclosures, however does not expect the adoption of this update to have a material impact on the consolidated financial statements. Reclassification Certain amounts appearing in the consolidated financial statements and notes thereto for prior periods have been reclassified to conform with the current presentation. The reclassifications had no effect on net income or stockholders' equity as previously reported.
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SECURITIES |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SECURITIES | SECURITIES Debt securities purchased with the intent and ability to hold to their maturity are classified as held-to-maturity securities. All other investment securities are classified as available-for-sale securities. Available-for-Sale Securities Information related to the amortized cost, fair value and allowance for credit losses of securities available-for-sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) is provided in the table below.
Held-to-Maturity Securities Information related to the amortized cost, fair value and allowance for credit losses of securities held-to-maturity and the related gross unrealized gains and losses is presented in the table below.
The Company has the current intent and ability to hold held-to-maturity securities until maturity. All of the Company's securities designated as held-to-maturity were transferred from the available-for-sale classification. The net unrealized gain or loss on the transferred securities was recorded as a component of accumulated other comprehensive income (loss) at the time of the transfer and is amortized over the remaining life of the underlying securities as an adjustment to the yield on those securities. The net amount of the unamortized unrealized loss on the transferred securities included in accumulated other comprehensive income (loss) was $19.9 million ($15.8 million, net of tax) at June 30, 2024. Information regarding the amortized cost and fair value of available-for-sale and held-to-maturity debt securities by maturity as of June 30, 2024 is presented below. Maturity information is based on contractual maturity for all securities other than mortgage-backed securities. Actual maturities of securities may differ from contractual maturities because borrowers may have the right to prepay the obligation without a prepayment penalty.
Available-for-sale securities proceeds, gross gains and gross losses are presented below.
In accordance with ASU No. 2017-8, purchase premiums for callable securities are amortized to the earliest call date and premiums on non-callable securities as well as discounts are recognized in interest income using the interest method over the terms of the securities or over the estimated lives of mortgage-backed securities. Gains and losses on sales are based on the amortized cost of the security sold and recorded on the trade date. Securities with fair values of $578.6 million and $792.0 million were pledged as of June 30, 2024 and December 31, 2023, respectively, as collateral for borrowings from the Federal Home Loan Bank ("FHLB") and Federal Reserve Bank and for other purposes as permitted or required by law. Unrealized Loss Analysis on Available-for-Sale and Held-to-Maturity Securities Information regarding available-for-sale securities with unrealized losses as of June 30, 2024 and December 31, 2023 is presented on the following page. The tables divide the securities between those with unrealized losses for less than twelve months and those with unrealized losses for twelve months or more.
Information regarding held-to-maturity securities with unrealized losses as of June 30, 2024 and December 31, 2023 is presented below. The table divides the securities between those with unrealized losses for less than twelve months and those with unrealized losses for twelve months or more.
The total number of securities with unrealized losses as of June 30, 2024 and December 31, 2023 is presented below.
Available-for-sale debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. For available-for-sale debt securities in an unrealized loss position, management first assesses whether it intends to sell, or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through the consolidated income statement. For available-for-sale debt securities that do not meet the above criteria and for held-to-maturity securities, management evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security and the issuer, among other factors. If this assessment indicates that a credit loss exists, management compares the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. For available-for-sale debt securities, any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income (loss), net of applicable taxes. No allowance for credit losses for available-for-sale or held-to-maturity debt securities was recorded at June 30, 2024 or December 31, 2023. Accrued interest receivable on securities totaled $7.5 million and $7.6 million at June 30, 2024 and December 31, 2023, respectively, and is excluded from the estimate of credit losses. The U.S. government sponsored agencies and mortgage-backed securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major credit rating agencies, and have a long history of no credit losses. Therefore, for those securities, we do not record expected credit losses. State and municipal securities credit losses are benchmarked against highly rated municipal securities of similar duration, as published by Moody's, resulting in an immaterial allowance for credit losses.
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LOANS | LOANS
The recorded investment in loans does not include accrued interest, which totaled $22.4 million and $21.5 million as of June 30, 2024 and December 31, 2023, respectively. The Company had $325,000 and $238,000 in residential real estate loans in the process of foreclosure as of June 30, 2024 and December 31, 2023, respectively.
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ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY |
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ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY | ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY The Company maintains an allowance for credit losses to provide for expected credit losses. Losses are charged against the allowance when management believes that the principal is uncollectable. Subsequent recoveries, if any, are credited to the allowance. Allocations of the allowance are made for specific loans and for pools of similar types of loans, although the entire allowance is available for any loan that, in management’s judgment, should be charged against the allowance. A provision for credit losses is taken based on management’s ongoing evaluation of the appropriate allowance balance. A formal evaluation of the adequacy of the credit loss allowance is conducted monthly. The ultimate recovery of all loans is susceptible to future market factors beyond the Company’s control. The level of credit loss provision is influenced by growth in the overall loan portfolio, emerging market risk, emerging concentration risk, commercial loan focus and large credit concentration, new industry lending activity, general economic conditions and historical loss analysis. In addition, management gives consideration to changes in the facts and circumstances of watch list credits, which includes the security position of the borrower, in determining the appropriate level of the credit loss provision. Furthermore, management’s overall view on credit quality is a factor in the determination of the provision. The determination of the appropriate allowance is inherently subjective, as it requires significant estimates by management. The Company has an established process to determine the adequacy of the allowance for credit losses that generally includes consideration of changes in the nature and volume of the loan portfolio and overall portfolio quality, along with current and forecasted economic conditions that may affect borrowers’ ability to repay. Consideration is not limited to these factors although they represent the most commonly cited factors. To determine the specific allocation levels for individual credits, management considers the current valuation of collateral and the amounts and timing of expected future cash flows as the primary measures. Management also considers trends in adversely classified loans based upon an ongoing review of those credits. With respect to pools of similar loans, an appropriate level of general allowance is determined by portfolio segment using a probability of default-loss given default (“PD/LGD”) model, subject to a floor. A default can be triggered by one of several different asset quality factors, including past due status, nonaccrual status, material modification status or if the loan has had a charge-off. This PD is then combined with a LGD derived from historical charge-off data to construct a default rate. This loss rate is then supplemented with adjustments for reasonable and supportable forecasts of relevant economic indicators, particularly the unemployment rate forecast from the Federal Open Market Committee’s Summary of Economic Projections, and other environmental factors based on the risks present for each portfolio segment. These environmental factors include consideration of the following: levels of, and trends in, delinquencies and nonperforming loans; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedure, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. It is also possible that these factors could include social, political, economic, and terrorist events or activities. All of these factors are susceptible to change, which may be significant. As a result of this detailed process, the allowance results in two forms of allocations, specific and general. These two components represent the total allowance for credit losses deemed adequate to cover probable losses inherent in the loan portfolio. Commercial loans are subject to a dual standardized grading process administered by the credit administration function. These grade assignments are performed independent of each other and a consensus is reached by credit administration and the loan review officer. Specific allowances are established in cases where management has identified significant conditions or circumstances related to an individual credit that indicate it should be evaluated on an individual basis. Considerations with respect to specific allocations for these individual credits include, but are not limited to, the following: (a) the sufficiency of the customer’s cash flow or net worth to repay the loan; (b) the adequacy of the discounted value of collateral relative to the loan balance; (c) whether the loan has been criticized in a regulatory examination; (d) whether the loan is nonperforming; (e) any other reasons the ultimate collectability of the loan may be in question; or (f) any unique loan characteristics that require special monitoring. Allocations are also applied to categories of loans considered not to be individually analyzed, but for which the rate of loss is expected to be consistent with or greater than historical averages. Such allocations are based on past loss experience and information about specific borrower situations and estimated collateral values. These general pooled loan allocations are performed for portfolio segments of commercial and industrial; commercial real estate, multi-family, and construction; agri-business and agricultural; other commercial loans; and consumer 1-4 family mortgage and other consumer loans. General allocations of the allowance are determined by a historical loss rate based on the calculation of each pool’s probability of default-loss given default, subject to a floor. The length of the historical period for each pool is based on the average life of the pool. The historical loss rates are supplemented with consideration of economic conditions and portfolio trends. Due to the imprecise nature of estimating the allowance for credit losses, the Company’s allowance for credit losses includes an immaterial unallocated component. The unallocated component of the allowance for credit losses incorporates the Company’s judgmental determination of potential expected losses that may not be fully reflected in other allocations. As a practical expedient, the Company has elected to disclose accrued interest separately from loan principal balances on the consolidated balance sheet. Additionally, when a loan is placed on non-accrual, interest payments are reversed through interest income. For off balance sheet credit exposures outlined in the ASU at 326-20-30-11, it is the Company’s position that nearly all of the unfunded amounts on lines of credit are unconditionally cancellable, and therefore not subject to having a liability recorded. The following tables present the activity in the allowance for credit losses by portfolio segment for the periods ended:
Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes commercial loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis for Special Mention, Substandard and Doubtful grade loans and annually on Pass grade loans over $250,000. The Company uses the following definitions for risk ratings: Special Mention. Loans classified as Special Mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date. Substandard. Loans classified as Substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard, with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans are considered to be "Pass" rated when they are reviewed as part of the previously described process and do not meet the criteria above, which are evaluated and listed with Substandard commercial grade loans and consumer nonaccrual loans, which are evaluated individually and listed with “Not Rated” loans. Loans listed as Not Rated are consumer loans or commercial loans with consumer characteristics included in groups of homogenous loans which are analyzed for credit quality indicators utilizing delinquency status. The following table summarizes the risk category of loans by loan segment and year of origination as of June 30, 2024:
As of June 30, 2024, $1.2 million in PPP loans were included in the "Pass" category of non-working capital commercial and industrial loans. These loans were included in this risk rating category because they are fully guaranteed by the Small Business Administration ("SBA"). The following table summarizes the risk category of loans by loan segment and year of origination as of December 31, 2023:
As of December 31, 2023, $1.3 million in PPP loans were included in the "Pass" category of non-working capital commercial and industrial loans. These loans were included in this risk rating category because they are fully guaranteed by the SBA. Nonaccrual and Past Due Loans: The Company does not record interest on nonaccrual loans until principal is recovered. For all loan classes, a loan is generally placed on nonaccrual status when principal or interest becomes 90 days past due unless it is well secured and in the process of collection, or earlier when concern exists as to the ultimate collectability of principal or interest. Interest accrued but not received is reversed against earnings. Cash interest received on these loans is applied to the principal balance until the principal is recovered or until the loan returns to accrual status. Loans may be returned to accrual status when all the principal and interest amounts contractually due are brought current, remain current for a prescribed period, and future payments are reasonably assured. The following table presents the aging of the amortized cost basis in past due loans as of June 30, 2024 by class of loans and loans past due 90 days or more and still accruing by class of loan:
An insignificant amount of interest income was recognized on nonaccrual loans during the six month period ended June 30, 2024. The following table presents the aging of the amortized cost basis in past due loans as of December 31, 2023 by class of loans and loans past due 90 days or more and still accruing by class of loan:
An insignificant amount of interest income was recognized on nonaccrual loans during the year ended December 31, 2023. When management determines that foreclosure is probable, expected credit losses for collateral dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. A loan is considered collateral dependent when the borrower is experiencing financial difficulty and the loan is expected to be repaid substantially through the operation or sale of the collateral. The class of loan represents the primary collateral type associated with the loan. Significant quarter over quarter changes are reflective of changes in nonaccrual status and not necessarily associated with credit quality indicators like appraisal value. The following tables present the amortized cost basis of collateral dependent loans by class of loan as of:
Loan Modifications Made to Borrowers Experiencing Financial Difficulty The allowance for credit losses incorporates an estimate of lifetime expected credit losses using historical loss information. The Company uses a probability of default/loss given default model to determine an estimate which is recorded for each asset upon origination. Occasionally, the Company has reason to modify certain terms of loans for borrowers experiencing financial distress by providing the following forms of relief: forgiveness of loan principal, extension of repayment terms, interest rate reduction or an other than insignificant payment delay. The Company can make any or all of these types of concessions as part of such modifications. Since an estimate for historical losses is already included as a component of the allowance for credit losses, a change to the allowance for credit losses is generally not recorded at the time of such modifications. In the event forgiveness of principal is provided, the amount of the forgiveness is charged off against the allowance for credit losses. During the three and six months ended June 30, 2024, there were no material modifications made to borrowers experiencing financial difficulty.
The following tables present the financial effect of the loan modifications presented above for borrowers experiencing financial difficulty for the three and six months ended June 30, 2023:
The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. At June 30, 2024, no loans receiving such a modification within the last twelve months were 30 days or greater past due. At June 30, 2024, no loans receiving a modification due to borrower financial difficulty within the last twelve months experienced a payment default. Upon the Company's determination that a modified loan (or portion thereof) has subsequently been deemed uncollectible, the loan (or a portion thereof) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.
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BORROWINGS |
6 Months Ended |
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Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS For the period ended June 30, 2024, the Company had no outstanding advances from the FHLB. For the period ended December 31, 2023, the Company had a fixed rate bullet advance from the FHLB with an interest rate of 5.55% in the amount of $50.0 million that matured on January 5, 2024. Federal Funds purchased were $55.0 million at June 30, 2024, and there were none at December 31, 2023. On October 11, 2023 the Company entered into an unsecured revolving credit agreement with a financial institution allowing the Company to borrow up to $30.0 million. The credit agreement has a one year term which may be amended, extended, modified or renewed. Funds provided under the agreement can be used to repurchase shares of the Company’s common stock under the share repurchase program, which was reauthorized by the Company’s board of directors on April 11, 2023 and expires on April 30, 2025, and for general operations. The credit agreement includes a negative pledge agreement whereby the Company agrees not to pledge or otherwise encumber the stock of the Bank. There were no outstanding borrowings on the credit agreement at June 30, 2024 and December 31, 2023.
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FAIR VALUE DISCLOSURES |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: Securities: Securities available-for-sale are valued primarily by a third party pricing service. The fair values of securities available-for-sale are determined on a recurring basis by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or pricing models which utilize significant observable inputs such as matrix pricing. This is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). These models utilize the market approach with standard inputs that include, but are not limited to benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. For certain municipal securities that are not rated and observable inputs about the specific issuer are not available, fair values are estimated using observable data from other municipal securities presumed to be similar or other market data on other non-rated municipal securities (Level 3 inputs). The Company’s Finance Department, which is responsible for all accounting and SEC disclosure compliance, and the Company’s Treasury Department, which is responsible for investment portfolio management and asset/liability modeling, are the two areas that determine the Company’s valuation policies and procedures. Both of these areas report directly to the Executive Vice President and Chief Financial Officer of the Company. For assets or liabilities that may be considered for Level 3 fair value measurement on a recurring basis, these two departments and the Executive Vice President and Chief Financial Officer determine the appropriate level of the assets or liabilities under consideration. If there are new assets or liabilities that are determined to be Level 3 by this group, the Risk Management Committee of the Company and the Audit Committee of the Board are made aware of such assets at their next scheduled meeting. Securities pricing is obtained on securities from a third party pricing service and all security prices are tested annually against prices from another third party provider and reviewed with a market value price tolerance variance that varies by sector: municipal securities +/-5%, government MBS/CMO +/-3% and U.S. treasuries +/-1%. If any securities fall outside the tolerance threshold and have a variance of $100,000 or more, a determination of materiality is made for the amount over the threshold. Any security that would have a material threshold difference would be further investigated to determine why the variance exists and if any action is needed concerning the security pricing for that individual security. Changes in market value are reviewed monthly in aggregate by security type and any material changes are reviewed to determine why they exist. At least annually, the pricing methodology of the pricing service is received and reviewed to support the fair value levels used by the Company. A detailed pricing evaluation is requested and reviewed on any security determined to be fair valued using unobservable inputs by the pricing service. Mortgage banking derivative: The fair values of mortgage banking derivatives are based on observable market data as of the measurement date (Level 2). Interest rate swap derivatives: Our derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices and indices to generate continuous yield or pricing curves, prepayment rates, and volatility factors to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services. The fair value of interest rate swap derivatives is determined by pricing or valuation models using observable market data as of the measurement date (Level 2). Collateral dependent loans: Collateral dependent loans with specific allocations of the allowance for credit losses are generally based on the fair value of the underlying collateral when repayment is expected solely from the collateral. Fair value is determined using several methods. Generally, the fair value of real estate is based on appraisals by qualified third party appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and result in a Level 3 classification of the inputs for determining fair value. In addition, the Company’s management routinely applies internal discount factors to the value of appraisals used in the fair value evaluation of collateral dependent loans. The deductions to the appraisals take into account changing business factors and market conditions, as well as value impairment in cases where the appraisal date predates a likely change in market conditions. Commercial real estate is generally discounted from its appraised value by 30-50% with the higher discounts applied to real estate that is determined to have a thin trading market or to be specialized collateral. In addition to real estate, the Company’s management evaluates other types of collateral as follows: (a) raw and finished inventory is discounted from its cost or book value by 40-60%, depending on the marketability of the goods (b) finished goods are generally discounted by 40-60%, depending on the ease of marketability, cost of transportation or scope of use of the finished good (c) work in process inventory is typically discounted by 60%-100%, depending on the length of manufacturing time, types of components used in the completion process, and the breadth of the user base (d) equipment is valued at a percentage of depreciated book value or recent appraised value, if available, and is typically discounted at 20-50% after various considerations including age and condition of the equipment, marketability, breadth of use, and whether the equipment includes unique components or add-ons; and (e) marketable securities are discounted by 10%-30%, depending on the type of investment, age of valuation report and general market conditions. This methodology is based on a market approach and typically results in a Level 3 classification of the inputs for determining fair value. Mortgage servicing rights: As of June 30, 2024, the fair value of the Company’s Level 3 servicing assets for residential mortgage loans (“MSRs”) was $2.0 million, carried at amortized cost and no valuation reserve. These residential mortgage loans have a weighted average interest rate of 3.6%, a weighted average maturity of 20 years and are secured by homes generally within the Company’s market area of Northern Indiana and Indianapolis. A third-party valuation is used to estimate fair value by stratifying the portfolios on the basis of certain risk characteristics, including loan type and interest rate. Impairment is estimated based on an income approach. The inputs used include estimates of prepayment speeds, discount rate, cost to service, escrow account earnings, contractual servicing fee income, ancillary income, late fees and float income. The most significant assumption used to value MSRs is prepayment rate. Prepayment rates are estimated based on published industry consensus prepayment rates. The most significant unobservable assumption is the discount rate. At June 30, 2024, the constant prepayment speed (“PSA”) used was 156 and used a discount rate range of 10.0%-12.0%. At December 31, 2023, the PSA used was 148 and the discount rate used was 10.5%. Other real estate owned: Nonrecurring adjustments to certain commercial and residential real estate properties, classified as other real estate owned, are measured at the lower of carrying amount or fair value less costs to sell. Fair values are generally based on third party appraisals of the property and are reviewed by the Company’s internal appraisal officer. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable properties used to determine value. Such adjustments are usually significant and result in a Level 3 classification. In addition, the Company’s management may apply discount factors to the appraisals to take into account changing business factors and market conditions, as well as value impairment in cases where the appraisal date predates a likely change in market conditions. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. Real estate mortgage loans held-for-sale: Real estate mortgage loans held-for-sale are carried at the lower of cost or fair value, as determined by outstanding commitments, from third party investors, and result in a Level 2 classification. Visa Class C Shares: On April 8, 2024, Visa Inc. announced the commencement of an exchange offer for Visa Class B-1 common stock, which was being carried at a historical cost basis of zero. On May 7, 2024, the Bank received notice that Visa had accepted the Bank's tender of its 23,804 shares of Visa Class B-1 common stock in exchange for a combination of Visa Class B-2 common stock and Visa Class C common stock. Visa's acceptance resulted in a gain for the Company relating to the Visa Class C common stock, which is carried at fair value, and results in a Level 1 classification. Subsequent to the exchange and during the second quarter of 2024, the Bank sold its Visa Class B-2 common stock, which resulted in a realized gain of $3.9 million, and liquidated two-thirds of its Visa Class C common stock, which resulted in a realized gain of $3.4 million. Of this recognized net gain on Visa shares, $1.7 million related to Visa Class C common stock that is still owned and held by the Bank as of June 30, 2024 and carried at fair value in other assets on the consolidated balance sheet. The Bank plans to liquidate these remaining shares during the third quarter of 2024 pursuant to the Visa redemption provisions. The recognized net gain on Visa shares was $9.0 million during the second quarter of 2024. The tables below present the balances of assets measured at fair value on a recurring basis:
The fair value of Level 3 available-for-sale securities was immaterial and thus did not require additional recurring fair value disclosure. The tables below present the balances of assets measured at fair value on a nonrecurring basis:
The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at June 30, 2024:
The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at December 31, 2023:
The following tables contain the estimated fair values and the related carrying values of the Company’s financial instruments. Items that are not financial instruments are not included.
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OFFSETTING ASSETS AND LIABILITIES |
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OFFSETTING ASSETS AND LIABILITIES | OFFSETTING ASSETS AND LIABILITIES The following tables summarize gross and net information about financial instruments and derivative instruments that are offset in the statement of financial position or that are subject to an enforceable master netting arrangement at June 30, 2024 and December 31, 2023.
If an event of default occurs causing an early termination of an interest rate swap derivative, any early termination amount payable to one party by the other party may be reduced by set-off against any other amount payable by the one party to the other party. If a default in performance of any obligation of a repurchase agreement occurs, each party will set-off property held in respect of transactions against obligations owing in respect of any other transactions.
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EARNINGS PER SHARE |
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EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period, which includes shares held in treasury on behalf of participants in the Company’s Directors Fee Deferral Plan, and share repurchases. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock based awards and warrants, none of which were antidilutive.
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
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OCI, Debt Securities, Available-for-Sale, Gain (Loss), after Adjustment and Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables summarize the changes within each classification of accumulated other comprehensive income (loss) for the three months ended June 30, 2024 and 2023, all shown net of tax:
The following tables summarize the changes within each classification of accumulated other comprehensive income (loss) for the six months ended June 30, 2024 and 2023, all shown net of tax:
Reclassifications out of other accumulated other comprehensive income (loss) for the three months ended June 30, 2024 are as follows:
Reclassifications out of other accumulated comprehensive income (loss) for the three months ended June 30, 2023 are as follows:
Reclassifications out of accumulated comprehensive income (loss) for the six months ended June 30, 2024 are as follows:
Reclassifications out of accumulated other comprehensive income (loss) for the six months ended June 30, 2023 are as follows:
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LEASES |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASES The Company leases certain office facilities under long-term operating lease agreements. The leases expire at various dates through 2037 and some include renewal options. Many of these leases require the payment of property taxes, insurance premiums, maintenance, utilities and other costs. In many cases, rentals are subject to increase in relation to a cost-of-living index. The Company accounts for lease and non-lease components together as a single lease component. The Company determines if an arrangement is a lease at inception. Operating leases are recorded as a right-of-use ("ROU") lease asset and are included in other assets on the consolidated balance sheet. The Company's corresponding lease obligations are included in other liabilities on the consolidated balance sheet. ROU lease assets represent the Company's right to use an underlying asset for the lease term and lease obligations represent the Company's obligation to make lease payments arising from the lease. Operating ROU lease assets and obligations are recognized at the commencement date based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The ROU lease asset also includes any lease payments made and excludes lease incentives. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Short-term leases are leases having a term of twelve months or less. The Company recognizes short-term leases on a straight-line basis and does not record a related lease asset or liability for such leases, as allowed as a practical expedient of the standard. The following is a maturity analysis of the operating lease liabilities as of June 30, 2024:
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LOSS CONTINGENCIES |
6 Months Ended |
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Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
LOSS CONTINGENCIES | LOSS CONTINGENCIES Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. As previously disclosed, in July 2019, the Bank discovered potentially fraudulent activity by a former treasury management client involving multiple banks. The former client subsequently filed several related bankruptcy cases, captioned In re Interlogic Outsourcing, Inc., et al., which were filed in the United States Bankruptcy Court for the Western District of Michigan. The Bank and the other remaining individual defendants have settled the matter with the liquidating trustee and the case was dismissed with prejudice on June 21, 2024. A $4.5 million accrual was recorded during the second quarter of 2024 related to the resolution of this matter.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
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Pay vs Performance Disclosure | ||||
Net income | $ 22,549 | $ 14,611 | $ 45,950 | $ 38,889 |
Insider Trading Arrangements |
3 Months Ended |
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Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION (Policies) |
6 Months Ended |
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Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation Policy | This report is filed for Lakeland Financial Corporation (the "Company"), which has one wholly owned subsidiary, Lake City Bank (the "Bank"). Also included in this report are results for the Bank’s wholly owned subsidiary, LCB Investments II, Inc. ("LCB Investments"), which manages the Bank’s investment securities portfolio. LCB Investments owns LCB Funding, Inc. ("LCB Funding"), a real estate investment trust. All significant inter-company balances and transactions have been eliminated in consolidation. |
Basis of Accounting Policy | The unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions for Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and are unaudited. In the opinion of management, all adjustments (all of which are normal and recurring in nature) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for any subsequent reporting periods, including the year ending December 31, 2024. The Company’s 2023 Annual Report on Form 10-K should be read in conjunction with these statements.
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Adoption of New Accounting Standards and Newly Issued But Not Yet Effective Accounting Standards | Adoption of New Accounting Standards On March 28, 2023, the FASB issued ASU 2023-02, "Investments - Equity Method and Join Ventures (ASC 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method." ASU 2014-01, "Investments - Equity method and Joint Ventures (ASC 323): Accounting for Investments in Qualified Affordable Housing Projects", previously introduced the option to apply the proportional amortization method to account for investments made primarily for the purpose of receiving income tax credits and other income tax benefits when certain requirements are met; however, this guidance limited the proportional amortization method to investments in low-income-housing tax credit (LIHTC) structures. The proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization of the investment and the income tax credits being presented net in the income statement as a component of net income tax expense (benefit). Equity investments in other tax credit structures are typically accounted for using the equity method, which results in investment income, gains and losses, and tax credits being presented gross on the income statement in their respective line items. The amendments in this update permit reporting entities to elect to account for certain tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the income tax benefits in the income statement as a component of income tax expense (benefit). To qualify for the proportional amortization method, all of the following conditions must be met: (1) It is probable that the income tax credits allocated to the tax equity investor will be available; (2) The tax equity investor does not have the ability to exercise significant influence over the operating and financial policies of the underlying project; (3) Substantially all of the projected benefits are from income tax credits and other income tax benefits (projected benefits included income tax credits, other income tax benefits, and other non-income tax -related benefits and are determined on a discounted basis, using a discount rate that is consistent with the cash flow assumptions used by the tax equity investor in making its decision to invest in the project); (4) The tax equity investor's projected yield based solely on the cash flows from the income tax credits and other income tax benefits is positive; and (5) The tax equity investor is a limited liability investor in the limited liability entity for both legal and tax purposes, and the tax equity investor's liability is limited to its capital investment. An accounting policy election is allowed to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis rather than electing to apply the proportional amortization method at the reporting entity level or to individual investments. The amendments in this update require specific disclosures that must be applied to all investments that generate income tax credits and other income tax benefits from a tax credit program for which the entity has elected to apply the proportional amortization method. The amendments require that a reporting entity disclose certain information in annual and interim reporting periods that enable investors to understanding the following information about its investments that generate income tax credits and other income tax benefits from a tax credit program including: (1) The nature of its tax equity investments; and (2) The effect of its tax equity investments and related income tax credits and other income tax benefits on its financial position and results of operations. For public business entities, the amendments in this update were effective for fiscal years beginning after December 31, 2023, including interim periods within those fiscal years. The amendments in this update must be applied on either a modified retrospective or a retrospective basis. The Company chose the modified retrospective approach and recorded a day one adjustment of ($532,000), net of tax, to beginning retained earnings on January 1, 2024, which did not have a material impact on the consolidated financial statements. Newly Issued But Not Yet Effective Accounting Standards On October 9, 2023, the FASB issued ASU 2023-06, "Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative", which modified the disclosure or presentation requirements of a variety of Topics in the Codification and was intended to both clarify or improve such requirements and align the requirements with the SEC's regulations. The amendments to Topics of Codification provided in this update apply to all reporting entities within the scope of the affected Topics unless otherwise indicated by the update. Given the variety of Topics amended, a broad range of entities may be affected by one or more of the amendments provided in the update. The Company evaluated the amendments provided in the update and believes certain of the disclosure improvements are applicable to the Company's interim or annual disclosures. Subtopic 230-10, as amended, requires disclosure within the accounting policy in annual periods of where cash flows associated with derivative instruments and their related gains and losses are presented within the statement of cash flows. Subtopic 260-10, as amended, requires disclosure of the methods used in the diluted earnings-per-share computation for each dilutive security and clarifies that certain disclosures should be made during interim periods. Subtopic 470-10, as amended, requires disclosure of amounts and terms of unused lines of credit and unfunded commitments and the weighted-average interest rate on short-term borrowings outstanding as of the date of each balance sheet presented. The effective date for each amendment for entities subject to the SEC's existing disclosure requirements is the effective date of the removal of the related disclosure from Regulation S-X or Regulation S-K, with early adoption prohibited. The amendments in the update are to be applied prospectively. The Company will apply prospectively the provisions provided in the amendments as such provisions become effective, and does not believe the application of these modified disclosure requirements will have a material impact on the consolidated financial statements. If by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment in the update will be removed from the Codification and will not become effective. On November 27, 2023, the FASB issued ASU 2023-07, "Segment Reporting (ASC 280): Improvements to Reportable Segment Disclosures", intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. Provisions in the amendment include: (1) Requirement that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss (collectively referred to as the "significant expense principle"); (2) Requirement that a public entity disclose, on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition (the other segment items category is the difference between segment revenue less the segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss); (3) Requirement that a public entity provide all annual disclosures about a reportable segment's profit or loss and assets currently required by ASC 280 in interim periods; (4) Clarification that if the CODM uses more than one measure of a segment's profit or loss in assessing segment performance and deciding how to allocation resources, a public entity may report one or more of those additional measures of segment profit (at least one of the reported segment profit or loss measures, or the single reported measure if only one is disclosed, should be the measure that is the most consistent with the measurement principles used in measuring the corresponding amounts in the public entity's consolidated financial statements); (5) Requirement that a public entity disclose the title and position of the CODM and explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources; and (6) Requirement that a public entity that has a single reportable segment provide all the disclosures by the amendments in the update and all existing segment disclosures in ASC 280. The amendments in the update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. For public business entities, amendments in the update should be applied retrospectively to all periods presented in the financial statements, and upon transition to the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The Company is currently evaluating the impact of this standard on its disclosures, however does not expect adoption of the update to have a material impact of the consolidated financial statements. On December 13, 2023, the FASB issued ASU 2023-08, "Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets", to provide improved accounting and disclosure guidance for crypto assets. Stakeholders stated that current accounting guidance, except as provided in GAAP for certain specialized industries, surrounding crypto asset holdings as indefinite-lived intangible assets fails to provide financial statement users with decision-useful information. To remedy these shortcomings, the amendments in this update require an entity present (1) crypto assets measured at fair value separately from other intangible assets reported in the balance sheet and (2) changes from the remeasurement of crypto assets separately from changes in the carrying amounts of other intangible assets in the income statement. While the amendments in the update do not otherwise change the presentation requirements for the statement of cash flows, they do require specific presentation of cash receipts arising from crypto assets that are received as noncash consideration in the ordinary course of business and are converted nearly immediately into cash. The amendments in the update also provide for several enhancements related to disclosure of an entity's crypto asset holdings. For annual and interim reporting periods, the amendments in the update require an entity disclose the following information: (1) The name, cost basis, fair value, and number of units for each significant crypto asset holding and aggregate fair values and costs bases of the crypto asset holdings that are not individually significant; and (2) For crypto assets that are subject to contractual sale restrictions, the fair value of those crypto assets, the nature and remaining duration of the restriction(s), and the circumstances that could cause the restriction(s) to lapse. For annual reporting periods, the amendments in the update require an entity disclose the following information: (1) A rollforward, in the aggregate, of activity in the reporting period for crypto asset holdings, including additions (with a description of the activities that resulted in the additions), dispositions, gains, and losses; (2) For any dispositions for crypto assets in the reporting period, the difference between the disposal price and the cost basis and a description of the activities that resulted in the dispositions; (3) If gains and losses are not presented separately, the income statement line item in which those gains and losses are recognized; and (4) The method for determining the cost basis of crypto assets. The amendments in this update are effective for public business entities for annual periods beginning after December 15, 2024, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued (or made available for issuance). If an entity adopts the amendments in an interim period, it must adopt them as of the beginning of the fiscal year that includes that interim period. The amendments in this update require a cumulative-effect adjustment to the opening balance of retained earnings (or other appropriate components of equity or net assets) as of the beginning of the annual reporting period in which an entity adopts the amendments. The Company is currently evaluating the impact of this update on its disclosures, however does not expect the adoption of this update to have a material impact on the consolidated financial statements based upon the nature of the Company's current operations. On December 14, 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures", to address investor requests for greater transparency in regards to income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments are designed to enhance transparency surrounding income tax disclosures by requiring (1) Consistent categories and greater disaggregation of information in the rate reconciliation; and (2) Income taxes paid disaggregation by taxing jurisdiction, which will allow investors to better assess, in their capital allocation decisions, how an entity's operations and related tax risks and tax planning and operational opportunities affect its income tax rate and prospects for future cash flows. Other amendments in this update are designed to improve the effectiveness and comparability of disclosures by (1) adding disclosures of pretax income (loss) and income tax expense (benefit) to be consistent with the SEC's Regulation S-X 210.4-08(h), Rules of General Application-General Notes to Financial Statements: Income Tax Expense; and (2) Removing disclosures that are no longer considered cost beneficial or relevant. The amendments in this update are effective for public business entities for annual periods beginning after December 31, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments in this update should be applied on a prospective basis, however retrospective application is permitted. The Company is currently evaluating the impact of this update on its disclosures, however does not expect the adoption of this update to have a material impact on the consolidated financial statements.
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Reclassification | Reclassification Certain amounts appearing in the consolidated financial statements and notes thereto for prior periods have been reclassified to conform with the current presentation. The reclassifications had no effect on net income or stockholders' equity as previously reported.
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Allowance for Credit Losses and Credit Quality | The Company maintains an allowance for credit losses to provide for expected credit losses. Losses are charged against the allowance when management believes that the principal is uncollectable. Subsequent recoveries, if any, are credited to the allowance. Allocations of the allowance are made for specific loans and for pools of similar types of loans, although the entire allowance is available for any loan that, in management’s judgment, should be charged against the allowance. A provision for credit losses is taken based on management’s ongoing evaluation of the appropriate allowance balance. A formal evaluation of the adequacy of the credit loss allowance is conducted monthly. The ultimate recovery of all loans is susceptible to future market factors beyond the Company’s control. The level of credit loss provision is influenced by growth in the overall loan portfolio, emerging market risk, emerging concentration risk, commercial loan focus and large credit concentration, new industry lending activity, general economic conditions and historical loss analysis. In addition, management gives consideration to changes in the facts and circumstances of watch list credits, which includes the security position of the borrower, in determining the appropriate level of the credit loss provision. Furthermore, management’s overall view on credit quality is a factor in the determination of the provision. The determination of the appropriate allowance is inherently subjective, as it requires significant estimates by management. The Company has an established process to determine the adequacy of the allowance for credit losses that generally includes consideration of changes in the nature and volume of the loan portfolio and overall portfolio quality, along with current and forecasted economic conditions that may affect borrowers’ ability to repay. Consideration is not limited to these factors although they represent the most commonly cited factors. To determine the specific allocation levels for individual credits, management considers the current valuation of collateral and the amounts and timing of expected future cash flows as the primary measures. Management also considers trends in adversely classified loans based upon an ongoing review of those credits. With respect to pools of similar loans, an appropriate level of general allowance is determined by portfolio segment using a probability of default-loss given default (“PD/LGD”) model, subject to a floor. A default can be triggered by one of several different asset quality factors, including past due status, nonaccrual status, material modification status or if the loan has had a charge-off. This PD is then combined with a LGD derived from historical charge-off data to construct a default rate. This loss rate is then supplemented with adjustments for reasonable and supportable forecasts of relevant economic indicators, particularly the unemployment rate forecast from the Federal Open Market Committee’s Summary of Economic Projections, and other environmental factors based on the risks present for each portfolio segment. These environmental factors include consideration of the following: levels of, and trends in, delinquencies and nonperforming loans; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedure, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. It is also possible that these factors could include social, political, economic, and terrorist events or activities. All of these factors are susceptible to change, which may be significant. As a result of this detailed process, the allowance results in two forms of allocations, specific and general. These two components represent the total allowance for credit losses deemed adequate to cover probable losses inherent in the loan portfolio. Commercial loans are subject to a dual standardized grading process administered by the credit administration function. These grade assignments are performed independent of each other and a consensus is reached by credit administration and the loan review officer. Specific allowances are established in cases where management has identified significant conditions or circumstances related to an individual credit that indicate it should be evaluated on an individual basis. Considerations with respect to specific allocations for these individual credits include, but are not limited to, the following: (a) the sufficiency of the customer’s cash flow or net worth to repay the loan; (b) the adequacy of the discounted value of collateral relative to the loan balance; (c) whether the loan has been criticized in a regulatory examination; (d) whether the loan is nonperforming; (e) any other reasons the ultimate collectability of the loan may be in question; or (f) any unique loan characteristics that require special monitoring. Allocations are also applied to categories of loans considered not to be individually analyzed, but for which the rate of loss is expected to be consistent with or greater than historical averages. Such allocations are based on past loss experience and information about specific borrower situations and estimated collateral values. These general pooled loan allocations are performed for portfolio segments of commercial and industrial; commercial real estate, multi-family, and construction; agri-business and agricultural; other commercial loans; and consumer 1-4 family mortgage and other consumer loans. General allocations of the allowance are determined by a historical loss rate based on the calculation of each pool’s probability of default-loss given default, subject to a floor. The length of the historical period for each pool is based on the average life of the pool. The historical loss rates are supplemented with consideration of economic conditions and portfolio trends. Due to the imprecise nature of estimating the allowance for credit losses, the Company’s allowance for credit losses includes an immaterial unallocated component. The unallocated component of the allowance for credit losses incorporates the Company’s judgmental determination of potential expected losses that may not be fully reflected in other allocations. As a practical expedient, the Company has elected to disclose accrued interest separately from loan principal balances on the consolidated balance sheet. Additionally, when a loan is placed on non-accrual, interest payments are reversed through interest income. For off balance sheet credit exposures outlined in the ASU at 326-20-30-11, it is the Company’s position that nearly all of the unfunded amounts on lines of credit are unconditionally cancellable, and therefore not subject to having a liability recorded.
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Leases | The Company leases certain office facilities under long-term operating lease agreements. The leases expire at various dates through 2037 and some include renewal options. Many of these leases require the payment of property taxes, insurance premiums, maintenance, utilities and other costs. In many cases, rentals are subject to increase in relation to a cost-of-living index. The Company accounts for lease and non-lease components together as a single lease component. The Company determines if an arrangement is a lease at inception. Operating leases are recorded as a right-of-use ("ROU") lease asset and are included in other assets on the consolidated balance sheet. The Company's corresponding lease obligations are included in other liabilities on the consolidated balance sheet. ROU lease assets represent the Company's right to use an underlying asset for the lease term and lease obligations represent the Company's obligation to make lease payments arising from the lease. Operating ROU lease assets and obligations are recognized at the commencement date based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The ROU lease asset also includes any lease payments made and excludes lease incentives. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Short-term leases are leases having a term of twelve months or less. The Company recognizes short-term leases on a straight-line basis and does not record a related lease asset or liability for such leases, as allowed as a practical expedient of the standard.
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SECURITIES (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-For-Sale Securities | Information related to the amortized cost, fair value and allowance for credit losses of securities available-for-sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) is provided in the table below.
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Schedule of Debt Securities, Held-to-Maturity | Information related to the amortized cost, fair value and allowance for credit losses of securities held-to-maturity and the related gross unrealized gains and losses is presented in the table below.
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Schedule of Available-For-Sale Securities By Maturity | Information regarding the amortized cost and fair value of available-for-sale and held-to-maturity debt securities by maturity as of June 30, 2024 is presented below. Maturity information is based on contractual maturity for all securities other than mortgage-backed securities. Actual maturities of securities may differ from contractual maturities because borrowers may have the right to prepay the obligation without a prepayment penalty.
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Schedule of Sales of Securities Available For Sale | Available-for-sale securities proceeds, gross gains and gross losses are presented below.
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Schedule of Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value | Information regarding available-for-sale securities with unrealized losses as of June 30, 2024 and December 31, 2023 is presented on the following page. The tables divide the securities between those with unrealized losses for less than twelve months and those with unrealized losses for twelve months or more.
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Schedule of Debt Securities, Held-To-Maturity, Unrealized Loss Position, Fair Value | Information regarding held-to-maturity securities with unrealized losses as of June 30, 2024 and December 31, 2023 is presented below. The table divides the securities between those with unrealized losses for less than twelve months and those with unrealized losses for twelve months or more.
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Schedule of Quantitative Disclosure of Available-For-Sale Securities | The total number of securities with unrealized losses as of June 30, 2024 and December 31, 2023 is presented below.
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LOANS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Loans |
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ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Allowance for Credit Loss | The following tables present the activity in the allowance for credit losses by portfolio segment for the periods ended:
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Schedule of Risk Category of Loans by Loan Segment and Origination Date and Credit Quality Indicators | The following table summarizes the risk category of loans by loan segment and year of origination as of June 30, 2024:
The following table summarizes the risk category of loans by loan segment and year of origination as of December 31, 2023:
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Schedule of Aging of the Amortized Cost Basis In Past Due Loans | The following table presents the aging of the amortized cost basis in past due loans as of June 30, 2024 by class of loans and loans past due 90 days or more and still accruing by class of loan:
The following table presents the aging of the amortized cost basis in past due loans as of December 31, 2023 by class of loans and loans past due 90 days or more and still accruing by class of loan:
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Schedule of Amortized Cost Basis Of Collateral Dependent Loans | The following tables present the amortized cost basis of collateral dependent loans by class of loan as of:
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Schedule of Performance of Modified Loans |
The following tables present the financial effect of the loan modifications presented above for borrowers experiencing financial difficulty for the three and six months ended June 30, 2023:
(1) Represents one $11.0 million non-working capital loan that received principal forgiveness of $9.4 million, of which $9.3 million was charged off.
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FAIR VALUE DISCLOSURES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets Measured at Fair Value on a Recurring Basis | The tables below present the balances of assets measured at fair value on a recurring basis:
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Schedule of Assets Measured at Fair Value on a Nonrecurring Basis | The tables below present the balances of assets measured at fair value on a nonrecurring basis:
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Schedule of Fair Value Measured on Nonrecurring Basis Valuation Techniques | The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at June 30, 2024:
The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at December 31, 2023:
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Schedule of Fair Values and the Related Carrying Values of Financial Instruments | The following tables contain the estimated fair values and the related carrying values of the Company’s financial instruments. Items that are not financial instruments are not included.
|
OFFSETTING ASSETS AND LIABILITIES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OFFSETTING ASSETS AND LIABILITIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Offsetting Assets and Liability | The following tables summarize gross and net information about financial instruments and derivative instruments that are offset in the statement of financial position or that are subject to an enforceable master netting arrangement at June 30, 2024 and December 31, 2023.
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EARNINGS PER SHARE (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted Average Number of Shares |
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OCI, Debt Securities, Available-for-Sale, Gain (Loss), after Adjustment and Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Accumulated Other Comprehensive Income (loss) | The following tables summarize the changes within each classification of accumulated other comprehensive income (loss) for the three months ended June 30, 2024 and 2023, all shown net of tax:
The following tables summarize the changes within each classification of accumulated other comprehensive income (loss) for the six months ended June 30, 2024 and 2023, all shown net of tax:
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Schedule of Reclassification Accumulated Other Comprehensive Income (loss) | Reclassifications out of other accumulated other comprehensive income (loss) for the three months ended June 30, 2024 are as follows:
Reclassifications out of other accumulated comprehensive income (loss) for the three months ended June 30, 2023 are as follows:
Reclassifications out of accumulated comprehensive income (loss) for the six months ended June 30, 2024 are as follows:
Reclassifications out of accumulated other comprehensive income (loss) for the six months ended June 30, 2023 are as follows:
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LEASES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Maturity Analysis of the Operating Lease Liabilities | The following is a maturity analysis of the operating lease liabilities as of June 30, 2024:
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Schedule of Lease Cost |
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BASIS OF PRESENTATION (Details) $ in Thousands |
6 Months Ended | |||||
---|---|---|---|---|---|---|
Jun. 30, 2024
USD ($)
subsidiary
|
Mar. 31, 2024
USD ($)
|
Dec. 31, 2023
USD ($)
|
Jun. 30, 2023
USD ($)
|
Mar. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Number of wholly owned subsidiaries | subsidiary | 1 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Equity | $ 654,590 | $ 647,009 | $ 649,793 | $ 591,995 | $ 602,006 | $ 568,887 |
Retained Earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Equity | $ 713,541 | $ 703,330 | 692,760 | $ 661,447 | $ 658,629 | $ 646,100 |
Cumulative Effect, Period of Adoption, Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Equity | (532) | |||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Equity | $ (532) |
SECURITIES - Held-to-Maturity Securities (Details) - USD ($) |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 130,746,000 | $ 129,918,000 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 113,997,000 | 119,215,000 |
State and municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 130,746,000 | 129,918,000 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Losses | (16,749,000) | (10,703,000) |
Allowance for Credit Losses | 0 | 0 |
Fair Value | $ 113,997,000 | $ 119,215,000 |
SECURITIES - Additional Information (Details) - USD ($) |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Unrealized loss of held-to-maturity securities transferred from available-for sale | $ 19,900,000 | |
Unrealized loss of held-to-maturity securities transferred from available-for sale, net of tax | 15,800,000 | |
Available-for-sale securities pledged as collateral | 578,600,000 | $ 792,000,000.0 |
Allowance for credit losses | 0 | 0 |
Allowance for Credit Losses | 0 | 0 |
Accrued interest receivable on available-for-sale debt securities | $ 7,500,000 | $ 7,600,000 |
SECURITIES - Schedule of Sales of Securities Available For Sale (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024
USD ($)
security
|
Jun. 30, 2023
USD ($)
security
|
Jun. 30, 2024
USD ($)
security
|
Jun. 30, 2023
USD ($)
security
|
|
Sales of securities available-for-sale | ||||
Proceeds | $ 0 | $ 12,480 | $ 7,136 | $ 99,951 |
Gross gains | 0 | 28 | 0 | 439 |
Gross losses | $ 0 | $ (25) | $ (46) | $ (420) |
Number of securities | security | 0 | 22 | 15 | 103 |
SECURITIES - Held-to-maturity Securities With Unrealized Losses (Details) - State and municipal securities - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months, fair value | $ 0 | $ 0 |
Less than 12 months, unrealized losses | 0 | 0 |
12 months or more, fair value | 113,997 | 119,215 |
12 Months or more, unrealized losses | 16,749 | 10,703 |
Total fair value | 113,997 | 119,215 |
Unrealized losses | $ 16,749 | $ 10,703 |
SECURITIES - Quantitative Disclosure of Available For Sale of Securities (Details) - position |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Number of securities with unrealized losses [Abstract] | ||
Less than 12 months | 36 | 41 |
12 months or more | 527 | 513 |
Total | 563 | 554 |
U.S. government sponsored agencies | ||
Number of securities with unrealized losses [Abstract] | ||
Less than 12 months | 0 | 0 |
12 months or more | 17 | 17 |
Total | 17 | 17 |
Mortgage-backed securities: residential | ||
Number of securities with unrealized losses [Abstract] | ||
Less than 12 months | 3 | 1 |
12 months or more | 126 | 126 |
Total | 129 | 127 |
State and municipal securities | ||
Number of securities with unrealized losses [Abstract] | ||
Less than 12 months | 33 | 40 |
12 months or more | 384 | 370 |
Total | 417 | 410 |
SECURITIES - Quantitative Disclosure of Held to Maturity Securities (Details) - position |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Schedule of Held-to-Maturity Securities | ||
Less than 12 months | 0 | 0 |
12 months or more | 41 | 41 |
Total | 41 | 41 |
U.S. government sponsored agencies | ||
Schedule of Held-to-Maturity Securities | ||
Less than 12 months | 0 | 0 |
12 months or more | 0 | 0 |
Total | 0 | 0 |
Mortgage-backed securities: residential | ||
Schedule of Held-to-Maturity Securities | ||
Less than 12 months | 0 | 0 |
12 months or more | 0 | 0 |
Total | 0 | 0 |
State and municipal securities | ||
Schedule of Held-to-Maturity Securities | ||
Less than 12 months | 0 | 0 |
12 months or more | 41 | 41 |
Total | 41 | 41 |
LOANS - Additional Information (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Receivables [Abstract] | ||
Investment loans excluding accrued interest | $ 22,400 | $ 21,500 |
Residential real estate loans in the process of foreclosure | $ 325 | $ 238 |
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY - Additional Information (Details) - USD ($) |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Dec. 31, 2023 |
|
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable before allowance for credit loss | $ 5,052,341,000 | $ 4,916,534,000 |
Loan amount of credit quality analysis | 250,000 | |
PPP | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans receivable before allowance for credit loss | $ 1,200,000 | $ 1,300,000 |
BORROWINGS - Long-term Borrowings (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Debt Instrument [Line Items] | ||
Federal Funds purchased | $ 55,000 | $ 0 |
Federal Home Loan Bank Of Indianapolis Notes One Point Six One Percentage Due January Seven Two Thousand Twenty | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.55% | |
FHLB bullet advance | $ 50,000 |
BORROWINGS - Revolving Credit Agreement (Details) - USD ($) |
Oct. 11, 2023 |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|---|
Unsecured Revolving Credit Agreement | Working capital lines of credit loans | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 30,000,000.0 | ||
Debt instrument, term | 1 year | ||
Unsecured Revolving Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Federal Home Loan Bank advances | $ 0 | $ 0 |
EARNINGS PER SHARE (Details) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Earnings Per Share [Abstract] | ||||
Number of antidilutive shares | 0 | 0 | 0 | 0 |
Weighted average shares outstanding for basic earnings per common share | 25,678,231 | 25,607,663 | 25,667,647 | 25,595,412 |
Dilutive effect of stock based awards | 64,640 | 78,691 | 79,126 | 100,958 |
Weighted average shares outstanding for diluted earnings per common share | 25,742,871 | 25,686,354 | 25,746,773 | 25,696,370 |
Basic earnings per common share (in dollars per share) | $ 0.88 | $ 0.57 | $ 1.79 | $ 1.52 |
Diluted earnings per common share (in dollars per share) | $ 0.87 | $ 0.57 | $ 1.78 | $ 1.51 |
LEASES - Maturity Analysis (Details) $ in Thousands |
Jun. 30, 2024
USD ($)
|
---|---|
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2024 | $ 376 |
2025 | 756 |
2026 | 731 |
2027 | 753 |
2028 | 593 |
2029 and thereafter | 1,591 |
Total undiscounted lease payments | 4,800 |
Less imputed interest | (415) |
Lease liability | 4,385 |
Right-of-use asset | $ 4,385 |
Operating lease, liability, statement of financial position | Other liabilities |
Operating lease, right-of-use asset, statement of financial position | Other Assets |
LEASES - Lease Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Lease cost | ||||
Operating lease cost | $ 161 | $ 220 | $ 346 | $ 389 |
Short-term lease cost | 2 | 2 | 4 | 4 |
Total lease cost | $ 163 | $ 222 | $ 350 | $ 393 |
LEASES - Other Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Leases [Abstract] | ||||
Operating cash outflows from operating leases | $ 161 | $ 220 | $ 346 | $ 389 |
Weighted-average remaining lease term - operating leases | 5 years 9 months 18 days | 6 years 9 months 18 days | 5 years 9 months 18 days | 6 years 9 months 18 days |
Weighted average discount rate - operating leases | 2.50% | 2.50% | 2.50% | 2.50% |
LOSS CONTINGENCIES (Details) $ in Millions |
3 Months Ended |
---|---|
Jun. 30, 2024
USD ($)
| |
Commitments and Contingencies Disclosure [Abstract] | |
Loss contingency accrual | $ 4.5 |
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