QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
a |
||
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
(Address of principal executive offices) |
Zip Code |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer |
☐ | Smaller reporting company | ||||
Emerging growth company |
Page |
||||
4 |
||||
5 |
||||
7 |
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8 |
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9 |
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10 |
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56 |
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74 |
||||
76 |
||||
78 |
||||
78 |
||||
78 |
||||
78 |
||||
79 |
||||
79 |
||||
79 |
||||
81 |
Item 1. |
FINANCIAL STATEMENTS (UNAUDITED) |
(Dollars in thousands, except par value) |
March 31 2022 |
December 31 2021 |
||||||
Assets |
||||||||
Cash and due from banks |
$ | $ | ||||||
Interest-bearing deposits with other banks |
||||||||
Federal funds sold |
||||||||
|
|
|
|
|||||
Total cash and cash equivalents |
||||||||
Securities available for sale at estimated fair value (amortized cost-$ |
||||||||
Securities held to maturity, net of allowance for credit losses of $ |
||||||||
Equity securities at estimated fair value |
||||||||
Other investment securities |
||||||||
Loans held for sale measured using fair value option |
||||||||
Loans and leases |
||||||||
Less: Unearned income |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Loans and leases, net of unearned income |
||||||||
Less: Allowance for loan and lease losses |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net loans and leases |
||||||||
Bank premises and equipment |
||||||||
Operating lease right-of-use |
||||||||
Goodwill |
||||||||
Mortgage servicing rights, net of valuation allowance of $ |
||||||||
Bank-owned life insurance (“BOLI”) |
||||||||
Accrued interest receivable, net of allowance for credit losses of $ |
||||||||
Other assets |
||||||||
|
|
|
|
|||||
TOTAL ASSETS |
$ | $ | ||||||
|
|
|
|
|||||
Liabilities |
||||||||
Deposits: |
||||||||
Noninterest-bearing |
$ | $ | ||||||
Interest-bearing |
||||||||
|
|
|
|
|||||
Total deposits |
||||||||
Borrowings: |
||||||||
Securities sold under agreements to repurchase |
||||||||
Federal Home Loan Bank (“FHLB”) borrowings |
||||||||
Other long-term borrowings |
||||||||
Reserve for lending-related commitments |
||||||||
Operating lease liabilities |
||||||||
Accrued expenses and other liabilities |
||||||||
|
|
|
|
|||||
TOTAL LIABILITIES |
||||||||
Shareholders’ Equity |
||||||||
Preferred stock, $ Authorized- shares, |
||||||||
Common stock, $ Authorized- shares; issued- and |
||||||||
Surplus |
||||||||
Retained earnings |
||||||||
Accumulated other comprehensive loss |
( |
) | ( |
) | ||||
Treasury stock, at cost |
( |
) | ( |
) | ||||
|
|
|
|
|||||
TOTAL SHAREHOLDERS’ EQUITY |
||||||||
|
|
|
|
|||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ | $ | ||||||
|
|
|
|
(Dollars in thousands, except per share data) |
Three Months Ended March 31 |
|||||||
2022 |
2021 |
|||||||
Interest income |
||||||||
Interest and fees on loans |
$ | $ | ||||||
Interest on federal funds sold and other short-term investments |
||||||||
Interest and dividends on securities: |
||||||||
Taxable |
||||||||
Tax-exempt |
||||||||
Total interest income |
||||||||
Interest expense |
||||||||
Interest on deposits |
||||||||
Interest on short-term borrowings |
||||||||
Interest on long-term borrowings |
||||||||
Total interest expense |
||||||||
Net interest income |
||||||||
Provision for credit losses |
( |
) | ||||||
Net interest income after provision for credit losses |
||||||||
Other income |
||||||||
Fees from trust services |
||||||||
Fees from brokerage services |
||||||||
Fees from deposit services |
||||||||
Bankcard fees and merchant discounts |
||||||||
Other service charges, commissions, and fees |
||||||||
Income from bank-owned life insurance |
||||||||
Income from mortgage banking activities |
||||||||
Mortgage loan servicing income |
||||||||
Net investment securities (losses) gains |
( |
) | ||||||
Other income |
||||||||
Total other income |
||||||||
Other expense |
||||||||
Employee compensation |
||||||||
Employee benefits |
||||||||
Net occupancy expense |
||||||||
Other real estate owned (“OREO”) expense |
||||||||
Equipment expense |
||||||||
Data processing expense |
||||||||
Mortgage loan servicing expense and impairment |
||||||||
Bankcard processing expense |
||||||||
FDIC insurance expense |
||||||||
Other expense |
||||||||
Total other expense |
||||||||
Income before income taxes |
||||||||
Income taxes |
||||||||
Net income |
$ | $ | ||||||
(Dollars in thousands, except per share data) |
Three Months Ended March 31 |
|||||||
2022 |
2021 |
|||||||
Earnings per common share: |
||||||||
Basic |
$ |
$ |
||||||
Diluted |
$ |
$ |
||||||
Average outstanding shares: |
||||||||
Basic |
||||||||
Diluted |
(Dollars in thousands) |
Three Months Ended March 31 |
|||||||
2022 |
2021 |
|||||||
Net income |
$ | $ | ||||||
Change in net unrealized loss on available for sale (“ AFS”) securities, net of tax |
( |
) | ( |
) | ||||
Change in net unrealized gain on cash flow hedge, net of tax |
||||||||
Change in defined benefit pension plan, net of tax |
||||||||
|
|
|
|
|||||
Comprehensive (loss) income, net of tax |
$ | ( |
) | $ | ||||
|
|
|
|
(Dollars in thousands, except per share data) |
||||||||||||||||||||||||||||
Three Months Ended March 31, 2022 |
||||||||||||||||||||||||||||
Common Stock |
Surplus |
Retained Earnings |
Accumulated Other Comprehensive (Loss) Income |
Treasury Stock |
Total Shareholders’ Equity |
|||||||||||||||||||||||
Shares |
Par Value |
|||||||||||||||||||||||||||
Balance at January 1, 2022 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
Comprehensive income: |
||||||||||||||||||||||||||||
Net income |
0 | |||||||||||||||||||||||||||
Other comprehensive loss , net of tax |
0 | ( |
) | ( |
) | |||||||||||||||||||||||
Total comprehensive loss , net of tax |
( |
) | ||||||||||||||||||||||||||
Stock based compensation expense |
0 | |||||||||||||||||||||||||||
Stock grant forfeiture ( |
0 | ( |
) | |||||||||||||||||||||||||
Purchase of treasury stock ( |
0 | ( |
) | ( |
) | |||||||||||||||||||||||
Cash dividends ($ |
0 | ( |
) | ( |
) | |||||||||||||||||||||||
Net issuance of common stock under stock-based (compensation plans |
||||||||||||||||||||||||||||
Balance at March 31, 2022 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
Three Months Ended March 31, 2021 |
||||||||||||||||||||||||||||
Common Stock |
Surplus |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Treasury Stock |
Total Shareholders’ Equity |
|||||||||||||||||||||||
Shares |
Par Value |
|||||||||||||||||||||||||||
Balance at January 1, 2021 |
$ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||||||
Comprehensive income: |
||||||||||||||||||||||||||||
Net income |
0 | |||||||||||||||||||||||||||
Other comprehensive income, net of tax |
0 | ( |
) | ( |
) | |||||||||||||||||||||||
Total comprehensive income, net of tax |
||||||||||||||||||||||||||||
Stock based compensation expense |
0 | |||||||||||||||||||||||||||
Purchase of treasury stock ( |
0 | ( |
) | ( |
) | |||||||||||||||||||||||
Cash dividends ($ |
0 | ( |
) | ( |
) | |||||||||||||||||||||||
Net issuance of common stock under stock-based (compensation plans |
||||||||||||||||||||||||||||
Balance at March 31, 2021 |
$ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||||||
(Dollars in thousands) |
||||||||
Three Months Ended March 31 |
||||||||
2022 |
2021 |
|||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES |
$ | $ | ||||||
INVESTING ACTIVITIES |
||||||||
Proceeds from maturities and calls of securities held to maturity |
||||||||
Proceeds from sales of securities available for sale |
||||||||
Proceeds from maturities and calls of securities available for sale |
||||||||
Purchases of securities available for sale |
( |
) | ( |
) | ||||
Proceeds from sales of equity securities |
||||||||
Purchases of equity securities |
( |
) | ( |
) | ||||
Proceeds from sales and redemptions of other investment securities |
||||||||
Purchases of other investment securities |
( |
) | ( |
) | ||||
Redemption of bank-owned life insurance policies |
||||||||
Purchases of bank premises and equipment |
( |
) | ( |
) | ||||
Proceeds from sales of bank premises and equipment |
||||||||
Proceeds from the sales of OREO properties |
||||||||
Net change in loans and leases |
( |
) | ||||||
NET CASH USED IN INVESTING ACTIVITIES |
( |
) | ( |
) | ||||
FINANCING ACTIVITIES |
||||||||
Cash dividends paid |
( |
) | ( |
) | ||||
Acquisition of treasury stock |
( |
) | ( |
) | ||||
Proceeds from exercise of stock options |
||||||||
Repayment of long-term Federal Home Loan Bank borrowings |
( |
) | ( |
) | ||||
Proceeds from issuance of long-term Federal Home Loan Bank borrowings |
||||||||
Changes in: |
||||||||
Deposits |
||||||||
Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings |
||||||||
NET CASH PROVIDED BY FINANCING ACTIVITIES |
||||||||
(Decrease) Increase in cash and cash equivalents |
( |
) | ||||||
Cash and cash equivalents at beginning of year |
||||||||
Cash and cash equivalents at end of period |
$ | $ | ||||||
Supplemental information |
||||||||
Noncash investing activities: |
||||||||
Transfers of loans to OREO |
$ | $ | ||||||
Transfers of loans to bank premises and equipment |
||||||||
Acquisitions: |
||||||||
Assets acquired, net of cash |
( |
) | ||||||
Liabilities assumed |
||||||||
Goodwill |
Purchase price of PCD loans and leases at acquisition |
$ | |||
Allowance for credit losses at acquisition |
||||
Non-credit discount at acquisition |
||||
|
|
|||
Par value (UPB) of acquired PCD loans and leases at acquisition |
$ | |||
|
|
Purchase price: |
||||
Value of common shares issued ( |
$ | |||
Fair value of stock options assumed |
||||
Cash for fractional shares |
||||
|
|
|||
Total purchase price |
||||
|
|
|||
Identifiable assets: |
||||
Cash and cash equivalents |
||||
Investment securities |
||||
Net loans and leases |
||||
Premises and equipment |
||||
Operating lease right-of-use |
||||
Core deposit intangible |
||||
Other assets |
||||
|
|
|||
Total identifiable assets |
$ | |||
|
|
|||
Identifiable liabilities: |
||||
Deposits |
$ | |||
Short-term borrowings |
||||
Long-term borrowings |
||||
Operating lease liability |
||||
Other liabilities |
||||
|
|
|||
Total identifiable liabilities |
||||
|
|
|||
Preliminary fair value of net assets acquired including identifiable intangible assets |
||||
|
|
|||
Preliminary resulting goodwill |
$ | |||
|
|
Proforma Three Months Ended March 31, 2021 |
||||
Total Revenues (1) |
$ | |||
Net Income |
(1) |
Represents net interest income plus other income |
March 31, 2022 |
||||||||||||||||||||
Amortized Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Allowance For Credit Losses |
Estimated Fair Value |
||||||||||||||||
U.S. agencies |
$ | $ | $ | $ | $ | |||||||||||||||
State and political subdivisions |
||||||||||||||||||||
Residential mortgage-backed securities |
||||||||||||||||||||
Agency |
||||||||||||||||||||
Non-agency |
||||||||||||||||||||
Commercial mortgage-backed securities |
||||||||||||||||||||
Agency |
||||||||||||||||||||
Asset-backed securities |
||||||||||||||||||||
Single issue trust preferred securities |
||||||||||||||||||||
Other corporate securities |
||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | |||||||||||||||
December 31, 2021 |
||||||||||||||||||||
Amortized Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Allowance For Credit Losses |
Estimated Fair Value |
||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government corporations and agencies |
$ | $ | $ | $ | $ | |||||||||||||||
State and political subdivisions |
||||||||||||||||||||
Residential mortgage-backed securities |
||||||||||||||||||||
Agency |
||||||||||||||||||||
Non-agency |
||||||||||||||||||||
Commercial mortgage-backed securities |
||||||||||||||||||||
Agency |
||||||||||||||||||||
Asset-backed securities |
||||||||||||||||||||
Single issue trust preferred securities |
||||||||||||||||||||
Other corporate securities |
||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | |||||||||||||||
Less than 12 months |
12 months or longer |
Total |
||||||||||||||||||||||
Fair Value |
Unrealized Losses |
Fair Value |
Unrealized Losses |
Fair Value |
Unrealized Losses |
|||||||||||||||||||
March 31, 2022 |
||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government corporations and agencies |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
State and political subdivisions |
||||||||||||||||||||||||
Residential mortgage-backed securities |
||||||||||||||||||||||||
Agency |
||||||||||||||||||||||||
Non-agency |
||||||||||||||||||||||||
Commercial mortgage-backed securities |
||||||||||||||||||||||||
Agency |
||||||||||||||||||||||||
Asset-backed securities |
||||||||||||||||||||||||
Single issue trust preferred securities |
||||||||||||||||||||||||
Other corporate securities |
||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Less than 12 months |
12 months or longer |
Total |
||||||||||||||||||||||
Fair Value |
Unrealized Losses |
Fair Value |
Unrealized Losses |
Fair Value |
Unrealized Losses |
|||||||||||||||||||
December 31, 2021 |
||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government corporations and agencies |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
State and political subdivisions |
||||||||||||||||||||||||
Residential mortgage-backed securities |
||||||||||||||||||||||||
Agency |
||||||||||||||||||||||||
Non-agency |
||||||||||||||||||||||||
Commercial mortgage-backed securities |
||||||||||||||||||||||||
Agency |
||||||||||||||||||||||||
Asset-backed securities |
||||||||||||||||||||||||
Single issue trust preferred securities |
||||||||||||||||||||||||
Other corporate securities |
||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Three Months Ended March 31 |
||||||||
2022 |
2021 |
|||||||
Proceeds from sales and calls |
$ | $ | ||||||
Gross realized gains |
||||||||
Gross realized losses |
March 31, 2022 |
December 31, 2021 |
|||||||||||||||
Amortized Cost |
Estimated Fair Value |
Amortized Cost |
Estimated 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 |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
Three Months Ended March 31 |
||||||||
2022 |
2021 |
|||||||
Net gains recognized during the period on equity securities sold |
$ |
$ |
||||||
Unrealized gains recognized during the period on equity securities still held at period end |
||||||||
Unrealized losses recognized during the period on equity securities still held at period end |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net (losses) gains recognized during the period |
$ |
( |
) |
$ |
||||
|
|
|
|
March 31, 2022 |
December 31, 2021 |
|||||||
Commercial, financial and agricultural: |
||||||||
Owner-occupied commercial real estate |
$ | $ | ||||||
Nonowner-occupied commercial real estate |
||||||||
Other commercial |
||||||||
|
|
|
|
|||||
Total commercial, financial & agricultural |
||||||||
Residential real estate |
||||||||
Construction & land development |
||||||||
Consumer: |
||||||||
Bankcard |
||||||||
Other consumer |
||||||||
Less: Unearned income |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total gross loans |
$ | $ | ||||||
|
|
|
|
Reason for modification |
March 31, 2022 |
December 31, 2021 |
||||||
Interest rate reduction |
$ | $ | ||||||
Interest rate reduction and change in terms |
||||||||
Concession of principal and term |
||||||||
Extended maturity |
||||||||
Transfer of asset |
||||||||
Change in terms |
||||||||
Total |
$ | $ | ||||||
Troubled Debt Restructurings For the Three Months Ended |
||||||||||||||||||||||||
March 31, 2022 |
March 31, 2021 |
|||||||||||||||||||||||
Number of Contracts |
Pre- Modification Outstanding Recorded Investment |
Post- Modification Outstanding Recorded Investment |
Number of Contracts |
Pre- Modification Outstanding Recorded Investment |
Post- Modification Outstanding Recorded Investment |
|||||||||||||||||||
Commercial real estate: |
||||||||||||||||||||||||
Owner-occupied |
$ | $ | $ | $ | ||||||||||||||||||||
Nonowner-occupied |
||||||||||||||||||||||||
Other commercial |
||||||||||||||||||||||||
Residential real estate |
||||||||||||||||||||||||
Construction & land development |
||||||||||||||||||||||||
Consumer: |
||||||||||||||||||||||||
Bankcard |
||||||||||||||||||||||||
Other consumer |
||||||||||||||||||||||||
Total |
$ | $ | $ | $ | ||||||||||||||||||||
Three Months Ended |
||||||||
Reason for modification |
March 31, 2022 |
March 31, 2021 |
||||||
Interest rate reduction |
$ | $ | ||||||
Interest rate reduction and change in terms |
||||||||
Forgiveness of principal |
||||||||
Concession of principal and term |
||||||||
Transfer of asset |
||||||||
Extended maturity |
||||||||
Change in terms |
||||||||
Total |
$ | $ | ||||||
Three Months Ended March 31, 2022 |
Three Months Ended March 31, 2021 |
|||||||||||||||
Number of Contracts |
Recorded Investment |
Number of Contracts |
Recorded Investment |
|||||||||||||
Troubled Debt Restructurings |
||||||||||||||||
Commercial real estate: |
||||||||||||||||
Owner-occupied |
$ | $ | ||||||||||||||
Nonowner-occupied |
||||||||||||||||
Other commercial |
||||||||||||||||
Residential real estate |
||||||||||||||||
Construction & land development |
||||||||||||||||
Consumer: |
||||||||||||||||
Bankcard |
||||||||||||||||
Other consumer |
||||||||||||||||
Total |
$ | $ | ||||||||||||||
Age Analysis of Past Due Loans and Leases As of March 31, 2022 |
||||||||||||||||||||||||
30-89 Days Past Due |
90 Days or more Past Due |
Total Past Due |
Current & Other |
Total Financing Receivables |
90 Days or More Past Due & Accruing |
|||||||||||||||||||
Commercial real estate: |
||||||||||||||||||||||||
Owner-occupied |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Nonowner-occupied |
||||||||||||||||||||||||
Other commercial |
||||||||||||||||||||||||
Residential real estate |
||||||||||||||||||||||||
Construction & land development |
||||||||||||||||||||||||
Consumer: |
||||||||||||||||||||||||
Bankcard |
||||||||||||||||||||||||
Other consumer |
||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Age Analysis of Past Due Loans and Leases As of December 31, 2021 |
||||||||||||||||||||||||
30-89 Days Past Due |
90 Days or more Past Due |
Total Past Due |
Current & Other |
Total Financing Receivables |
90 Days or More Past Due & Accruing |
|||||||||||||||||||
Commercial real estate: |
||||||||||||||||||||||||
Owner-occupied |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Nonowner-occupied |
||||||||||||||||||||||||
Other commercial |
||||||||||||||||||||||||
Residential real estate |
||||||||||||||||||||||||
Construction & land development |
||||||||||||||||||||||||
Consumer: |
||||||||||||||||||||||||
Bankcard |
||||||||||||||||||||||||
Other consumer |
||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
At March 31, 2022 |
At December 31, 2021 |
|||||||||||||||||||||||
Nonaccruals |
With No Related Allowance for Credit Losses |
90 Days or More Past Due & Accruing |
Nonaccruals |
With No Related Allowance for Credit Losses |
90 Days or More Past Due & Accruing |
|||||||||||||||||||
Commercial Real Estate: |
||||||||||||||||||||||||
Owner-occupied |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Nonowner-occupied |
||||||||||||||||||||||||
Other Commercial |
||||||||||||||||||||||||
Residential Real Estate |
||||||||||||||||||||||||
Construction |
||||||||||||||||||||||||
Consumer: |
||||||||||||||||||||||||
Bankcard |
||||||||||||||||||||||||
Other consumer |
||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Collateral Dependent Loans and Leases |
||||||||||||||||||||||||
At March 31, 2022 |
||||||||||||||||||||||||
Residential Property |
Business Assets |
Land |
Commercial Property |
Other |
Total |
|||||||||||||||||||
Commercial real estate: |
||||||||||||||||||||||||
Owner-occupied |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Nonowner-occupied |
||||||||||||||||||||||||
Other commercial |
||||||||||||||||||||||||
Residential real estate |
||||||||||||||||||||||||
Construction & land development |
||||||||||||||||||||||||
Consumer: |
||||||||||||||||||||||||
Bankcard |
||||||||||||||||||||||||
Other consumer |
||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Collateral Dependent Loans and Leases |
||||||||||||||||||||||||
At December 31, 2021 |
||||||||||||||||||||||||
Residential Property |
Business Assets |
Land |
Commercial Property |
Other |
Total |
|||||||||||||||||||
Commercial real estate: |
||||||||||||||||||||||||
Owner-occupied |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Nonowner-occupied |
||||||||||||||||||||||||
Other commercial |
||||||||||||||||||||||||
Residential real estate |
||||||||||||||||||||||||
Construction & land development |
||||||||||||||||||||||||
Consumer: |
||||||||||||||||||||||||
Bankcard |
||||||||||||||||||||||||
Other consumer |
||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
• | Pass |
• | Special Mention |
• | Substandard |
• | Doubtful |
Term Loans Origination Year |
Revolving loans amortized cost basis |
Revolving loans converted to term loans |
Total |
|||||||||||||||||||||||||||||||||
As of March 31, 2022 |
2022 |
2021 |
2020 |
2019 |
2018 |
Prior |
||||||||||||||||||||||||||||||
Internal Risk Grade: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | $ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
|||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful |
||||||||||||||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Current-period charge-offs |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Current-period recoveries |
||||||||||||||||||||||||||||||||||||
Current-period net charge-offs |
$ | $ | $ | $ | $ | $ | ( |
) | $ | $ | $ | ( |
) | |||||||||||||||||||||||
Term Loans Origination Year |
Revolving loans amortized cost basis |
Revolving loans and leases converted to term loans |
Total |
|||||||||||||||||||||||||||||||||
As of December 31, 2021 |
2021 |
2020 |
2019 |
2018 |
2017 |
Prior |
||||||||||||||||||||||||||||||
Internal Risk Grade: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful |
||||||||||||||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
YTD charge-offs |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
YTD recoveries |
||||||||||||||||||||||||||||||||||||
YTD net charge-offs |
$ | $ | $ | $ | $ | ( |
) | $ | $ | $ | $ | |||||||||||||||||||||||||
Term Loans Origination Year |
Revolving loans amortized cost basis |
Revolving loans converted to term loans |
Total |
|||||||||||||||||||||||||||||||||
As of March 31, 2022 |
2022 |
2021 |
2020 |
2019 |
2018 |
Prior |
||||||||||||||||||||||||||||||
Internal Risk Grade: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | $ | $ | |
$ | |
$ | |
$ | |
$ | |
$ | $ | |
|||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful |
||||||||||||||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Current-period charge-offs |
||||||||||||||||||||||||||||||||||||
Current-period recoveries |
||||||||||||||||||||||||||||||||||||
Current-period net charge-offs |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Term Loans Origination Year |
Revolving loans amortized cost basis |
Revolving loans and leases converted to term loans |
Total |
|||||||||||||||||||||||||||||||||
As of December 31, 2021 |
2021 |
2020 |
2019 |
2018 |
2017 |
Prior |
||||||||||||||||||||||||||||||
Internal Risk Grade: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | |
$ | $ | $ | $ | $ | $ | $ | |
$ | |||||||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful |
||||||||||||||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
YTD charge-offs |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
YTD recoveries |
||||||||||||||||||||||||||||||||||||
YTD net charge-offs |
$ | $ | $ | $ | $ | $ | ( |
) | $ | $ | $ | ( |
) | |||||||||||||||||||||||
Term Loans and leases Origination Year |
Revolving loans and leases amortized cost basis |
Revolving loans and leases converted to term loans |
Total |
|||||||||||||||||||||||||||||||||
As of March 31, 2022 |
2022 |
2021 |
2020 |
2019 |
2018 |
Prior |
||||||||||||||||||||||||||||||
Internal Risk Grade: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | |
$ | |
$ | |
$ | |
$ | $ | |
$ | |
$ | |
$ | |
|||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful |
||||||||||||||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | |
$ | $ | $ | $ | ||||||||||||||||||||||||||
Current-period charge-offs |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Current-period recoveries |
||||||||||||||||||||||||||||||||||||
Current-period net charge-offs |
$ | $ | ( |
) | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||
Term Loans and leases Origination Year |
Revolving loans and leases amortized cost basis |
Revolving loans and leases converted to term loans |
Total |
|||||||||||||||||||||||||||||||||
As of December 31, 2021 |
2021 |
2020 |
2019 |
2018 |
2017 |
Prior |
||||||||||||||||||||||||||||||
Internal Risk Grade: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful |
||||||||||||||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
YTD charge-offs |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
YTD recoveries |
||||||||||||||||||||||||||||||||||||
YTD net charge-offs |
$ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | $ | ( |
) | |||||||||||||
Term Loans Origination Year |
Revolving loans amortized cost basis |
Revolving loans converted to term loans |
Total |
|||||||||||||||||||||||||||||||||
As of March 31, 2022 |
2022 |
2021 |
2020 |
2019 |
2018 |
Prior |
||||||||||||||||||||||||||||||
Internal Risk Grade: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | $ | |
$ | |
$ | |
|||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful |
||||||||||||||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | |
$ | $ | $ | ||||||||||||||||||||||||||
Current-period charge-offs |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Current-period recoveries |
||||||||||||||||||||||||||||||||||||
Current-period net charge-offs |
$ | $ | $ | $ | $ | ( |
) | $ | $ | $ | $ | |||||||||||||||||||||||||
Term Loans Origination Year |
Revolving loans amortized cost basis |
Revolving loans converted to term loans |
Total |
|||||||||||||||||||||||||||||||||
As of December 31, 2021 |
2021 |
2020 |
2019 |
2018 |
2017 |
Prior |
||||||||||||||||||||||||||||||
Internal Risk Grade: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful |
||||||||||||||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
YTD charge-offs |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
YTD recoveries |
||||||||||||||||||||||||||||||||||||
YTD net charge-offs |
$ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | $ | $ | ( |
) | |||||||||||||||||
Term Loans Origination Year |
Revolving loans amortized cost basis |
Revolving loans converted to term loans |
Total |
|||||||||||||||||||||||||||||||||
As of March 31, 2022 |
2022 |
2021 |
2020 |
2019 |
2018 |
Prior |
||||||||||||||||||||||||||||||
Internal Risk Grade: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful |
||||||||||||||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Current-period charge-offs |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Current-period recoveries |
||||||||||||||||||||||||||||||||||||
Current-period net charge-offs |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Term Loans Origination Year |
Revolving loans amortized cost basis |
Revolving loans converted to term loans |
Total |
|||||||||||||||||||||||||||||||||
As of December 31, 2021 |
2021 |
2020 |
2019 |
2018 |
2017 |
Prior |
||||||||||||||||||||||||||||||
Internal Risk Grade: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful |
||||||||||||||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
YTD charge-offs |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
YTD recoveries |
||||||||||||||||||||||||||||||||||||
YTD net charge-offs |
$ | $ | $ | $ | $ | ( |
) | $ | $ | $ | $ | |||||||||||||||||||||||||
Term Loans Origination Year |
Revolving loans amortized cost basis |
Revolving loans converted to term loans |
Total |
|||||||||||||||||||||||||||||||||
As of March 31, 2022 |
2022 |
2021 |
2020 |
2019 |
2018 |
Prior |
||||||||||||||||||||||||||||||
Internal Risk Grade: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | $ | $ | $ | $ | $ | $ | |
$ | |
$ | |
||||||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful |
||||||||||||||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Current-period charge-offs |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Current-period recoveries |
||||||||||||||||||||||||||||||||||||
Current-period net charge-offs |
$ | $ | $ | $ | $ | $ | $ | ( |
) | $ | $ | ( |
) | |||||||||||||||||||||||
Term Loans Origination Year |
Revolving loans amortized cost basis |
Revolving loans converted to term loans |
Total |
|||||||||||||||||||||||||||||||||
As of December 31, 2021 |
2021 |
2020 |
2019 |
2018 |
2017 |
Prior |
||||||||||||||||||||||||||||||
Internal Risk Grade: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | $ | $ | |||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful |
||||||||||||||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
YTD charge-offs |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
YTD recoveries |
||||||||||||||||||||||||||||||||||||
YTD net charge-offs |
$ | $ | $ | $ | $ | $ | $ | ( |
) | $ | $ | ( |
) | |||||||||||||||||||||||
Term Loans Origination Year |
Revolving loans amortized cost basis |
Revolving loans converted to term loans |
Total |
|||||||||||||||||||||||||||||||||
As of March 31, 2022 |
2022 |
2021 |
2020 |
2019 |
2018 |
Prior |
||||||||||||||||||||||||||||||
Internal Risk Grade: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | |
$ | |
$ | $ | |
$ | |
$ | $ | |
$ | |
$ | |
||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful |
||||||||||||||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Current-period charge-offs |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Current-period recoveries |
||||||||||||||||||||||||||||||||||||
Current-period net charge-offs |
$ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | |||||||||||||||
Term Loans Origination Year |
Revolving loans amortized cost basis |
Revolving loans converted to term loans |
Total |
|||||||||||||||||||||||||||||||||
As of December 31, 2021 |
2021 |
2020 |
2019 |
2018 |
2017 |
Prior |
||||||||||||||||||||||||||||||
Internal Risk Grade: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | $ | $ | |
$ | $ | $ | |
$ | $ | $ | |||||||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful |
||||||||||||||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
YTD charge-offs |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
YTD recoveries |
||||||||||||||||||||||||||||||||||||
YTD net charge-offs |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | $ | ( |
) | |||||||||||
Accrued Interest Receivable |
||||||||
At March 31, 2022 |
At December 31, 2021 |
|||||||
Commercial Real Estate: |
||||||||
Owner-occupied |
$ | $ | ||||||
Nonowner-occupied |
||||||||
Other Commercial |
||||||||
Residential Real Estate |
||||||||
Construction |
||||||||
Consumer: |
||||||||
Bankcard |
||||||||
Other consumer |
||||||||
$ | |
$ | |
|||||
Less: Allowance for credit losses |
( |
) | ( |
) | ||||
Total |
$ | $ | ||||||
Accrued Interest Receivables Written Off by Reversing Interest Income |
||||||||
Three Months Ended |
||||||||
March 31 |
||||||||
2022 |
2021 |
|||||||
Commercial Real Estate: |
||||||||
Owner-occupied |
$ | $ | ||||||
Nonowner-occupied |
||||||||
Other Commercial |
||||||||
Residential Real Estate |
||||||||
Construction |
||||||||
Consumer: |
||||||||
Bankcard |
||||||||
Other consumer |
||||||||
Total |
$ | |
$ | |
||||
• |
Method: Probability of Default/Loss Given Default (PD/LGD) |
• |
Commercial Real Estate Owner-Occupied |
• |
Commercial Real Estate Nonowner-Occupied |
• |
Commercial Other |
• |
Method: Cohort |
• |
Residential Real Estate |
• |
Construction & Land Development |
• |
Consumer |
• |
Bankcard |
• |
Past events – This includes portfolio trends related to business conditions; past due, nonaccrual, and graded loans and leases; and concentrations. |
• |
Current conditions – United considered the impact of inflation, supply chain issues, labor shortages and the conflict in eastern Europe when making determinations related to factor adjustments, such as changes in economic and business conditions, collateral values and external factors. |
• |
Reasonable and supportable forecasts – The forecast is determined on a portfolio-by-portfolio |
• | The forecast for real GDP shifted downward in the first quarter, from a projection of |
• | Greater risk of loss is probable in the hotel and accommodations portfolio due to weakened economic conditions brought on by the pandemic and labor shortages which resulted in a more negative forecast relative to other portfolios and a longer projected recovery period to extend into late 2023 or 2024. |
• | Reversion to historical loss data occurs via a straight-line method during the year following the one-year reasonable and supportable forecast period. |
Allowance for Loan and Lease Losses and Carrying Amount of Loans and Leases For the Three Months Ended March 31, 2022 |
||||||||||||||||||||||||||||||||||||
Commercial Real Estate |
Other Commercial |
Residential Real Estate |
Construction & Land Development |
Bankcard |
Other Consumer |
Allowance for Estimated Imprecision |
Total |
|||||||||||||||||||||||||||||
Owner- occupied |
Nonowner- occupied |
|||||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses: |
||||||||||||||||||||||||||||||||||||
Beginning balance |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | $ | |
$ | |
$ | |
|||||||||||||||||||
Charge-offs |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
Recoveries |
||||||||||||||||||||||||||||||||||||
Provision |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Ending balance |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Allowance for Loan and Lease Losses and Carrying Amount of Loans and Leases For the Year Ended December 31, 2021 |
||||||||||||||||||||||||||||||||||||
Commercial Real Estate |
Other Commercial |
Residential Real Estate |
Construction & Land Development |
Bankcard |
Other Consumer |
Allowance for Estimated Imprecision |
Total |
|||||||||||||||||||||||||||||
Owner- occupied |
Nonowner- occupied |
|||||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses: |
||||||||||||||||||||||||||||||||||||
Beginning balance |
$ | $ | $ | $ | $ |
$ | $ |
$ | $ |
|||||||||||||||||||||||||||
Allowance for PCD loans (acquired during the period) |
||||||||||||||||||||||||||||||||||||
Charge-offs |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
Recoveries |
||||||||||||||||||||||||||||||||||||
Provision |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Ending balance |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
March 31, 2022 |
||||||||||||||||||||||||
Community Banking |
Mortgage Banking |
Total |
||||||||||||||||||||||
Gross Carrying Amount |
Accumulated Amortization |
Gross Carrying Amount |
Accumulated Amortization |
Gross Carrying Amount |
Accumulated Amortization |
|||||||||||||||||||
Amortized intangible assets: |
||||||||||||||||||||||||
Core deposit intangible assets |
$ | ($ | ) | $ | $ | |
$ | ($ | ) | |||||||||||||||
Non-amortized intangible assets: |
||||||||||||||||||||||||
George Mason trade name |
$ | $ | $ | |||||||||||||||||||||
Crescent trade name |
||||||||||||||||||||||||
Total |
$ | $ | $ | |||||||||||||||||||||
Goodwill not subject to amortization |
$ | $ | $ | |||||||||||||||||||||
December 31, 2021 |
||||||||||||||||||||||||
Community Banking |
Mortgage Banking |
Total |
||||||||||||||||||||||
Gross Carrying Amount |
Accumulated Amortization |
Gross Carrying Amount |
Accumulated Amortization |
Gross Carrying Amount |
Accumulated Amortization |
|||||||||||||||||||
Amortized intangible assets: |
||||||||||||||||||||||||
Core deposit intangible assets |
$ |
( $ |
) | $ |
$ |
|
$ |
( $ |
) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Non-amortized intangible assets: |
||||||||||||||||||||||||
George Mason trade name |
$ |
$ |
$ |
|||||||||||||||||||||
Crescent trade name |
||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Total |
$ |
$ |
$ |
|||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Goodwill not subject to amortization |
$ |
$ |
$ |
|||||||||||||||||||||
|
|
|
|
|
|
Community Banking |
Mortgage Banking |
Total |
||||||||||
Goodwill at December 31, 2021 |
$ | $ | $ | |||||||||
Addition to goodwill from Community Bankers Trust acquisition |
||||||||||||
|
|
|
|
|
|
|||||||
Goodwill at March 31, 2022 |
$ | $ | $ | |||||||||
|
|
|
|
|
|
Year |
Amount |
|||
2022 |
$ | |||
2023 |
||||
2024 |
||||
2025 |
||||
2026 |
||||
2027 and thereafter |
Three Months Ended March 31, 2022 |
Three Months Ended March 31, 2021 |
|||||||
MSRs beginning balance |
$ | $ | ||||||
Amount capitalized |
||||||||
Amount amortized |
( |
) | ( |
) | ||||
|
|
|
|
|||||
MSRs ending balance |
$ | $ | ||||||
|
|
|
|
|||||
MSRs valuation allowance beginning balance |
$ | ( |
) | $ | ( |
) | ||
Aggregate additions charged and recoveries credited to operations |
||||||||
MSRs impairment |
( |
) | ( |
) | ||||
|
|
|
|
|||||
MSRs valuation allowance ending balance |
$ | ( |
) | $ | ( |
) | ||
|
|
|
|
|||||
MSRs, net of valuation allowance |
$ | $ | ||||||
|
|
|
|
Three Months Ended |
||||||||||
Classification |
March 31, 2022 |
March 31, 2021 |
||||||||
Operating lease cost |
Net occupancy expense | $ | $ | |||||||
Sublease income |
Net occupancy expense | ( |
) | ( |
) | |||||
Net lease cost |
$ | $ | ||||||||
Classification |
March 31, 2022 |
December 31, 2021 |
||||||||
Operating lease right-of-use |
Operating lease right-of-use |
$ | $ | |||||||
Operating lease liabilities |
Operating lease liabilities | $ | $ |
March 31, 2022 |
||||
Weighted-average remaining lease term: |
||||
Operating leases |
||||
Weighted-average discount rate: |
||||
Operating leases |
% |
Three Months Ended |
||||||||
March 31, 2022 |
March 31, 2021 |
|||||||
Cash paid for amounts in the measurement of lease liabilities: |
||||||||
Operating cash flows from operating leases |
$ | $ | ||||||
ROU assets obtained in the exchange for lease liabilties |
Year |
Amount |
|||
2022 |
$ | |||
2023 |
||||
2024 |
||||
2025 |
||||
2026 |
||||
Thereafter |
||||
Total lease payments |
||||
Less: imputed interest |
( |
) | ||
Total |
$ | |||
As of March 31, 2022 |
As of December 31, 2021 |
|||||||
Federal funds purchased |
$ | $ | ||||||
Securities sold under agreements to repurchase |
||||||||
Total short-term borrowings |
$ | $ | ||||||
Year |
Amount |
|||
2022 |
$ | |||
2023 |
||||
2024 |
||||
2025 |
||||
2026 and thereafter |
||||
Total |
$ | |||
Asset Derivatives |
||||||||||||||||||||||||
March 31, 2022 |
December 31, 2021 |
|||||||||||||||||||||||
Balance Sheet Location |
Notional Amount |
Fair Value |
Balance Sheet Location |
Notional Amount |
Fair Value |
|||||||||||||||||||
Derivatives designated as hedging instruments |
||||||||||||||||||||||||
Fair Value Hedges: |
||||||||||||||||||||||||
Interest rate swap contracts (hedging commercial loans) |
Other assets | $ | $ | Other assets | $ | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Fair Value Hedges |
$ | $ | $ | $ | ||||||||||||||||||||
Cash Flow Hedges: |
||||||||||||||||||||||||
Interest rate swap contracts (hedging FHLB borrowings) |
Other assets | $ | $ | Other assets | $ | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Cash Flow Hedges |
$ | $ | $ | $ | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total derivatives designated as hedging instruments |
$ | $ | $ | $ | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Derivatives not designated as hedging instruments |
||||||||||||||||||||||||
Forward loan sales commitments |
Other assets | $ | $ | Other assets | $ | $ | ||||||||||||||||||
TBA mortgage-backed securities |
Other assets | Other assets | ||||||||||||||||||||||
Interest rate lock commitments |
Other assets | Other assets | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total derivatives not designated as hedging instruments |
$ | $ | $ | $ | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total asset derivatives |
$ | $ | $ | $ | ||||||||||||||||||||
|
|
|
|
|
|
|
|
Liability Derivatives |
||||||||||||||||||||||||
March 31, 2022 |
December 31, 2021 |
|||||||||||||||||||||||
Balance Sheet Location |
Notional Amount |
Fair Value |
Balance Sheet Location |
Notional Amount |
Fair Value |
|||||||||||||||||||
Derivatives designated as hedging instruments |
||||||||||||||||||||||||
Fair Value Hedges: |
||||||||||||||||||||||||
Interest rate swap contracts (hedging commercial loans) |
Other liabilities | $ | $ | Other liabilities | $ | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Fair Value Hedges |
$ | $ | $ | $ | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total derivatives designated as hedging instruments |
$ | $ | $ | $ | ||||||||||||||||||||
|
|
|
|
|
|
|
|
Liability Derivatives |
||||||||||||||||||||||||
March 31, 2022 |
December 31, 2021 |
|||||||||||||||||||||||
Balance Sheet Location |
Notional Amount |
Fair Value |
Balance Sheet Location |
Notional Amount |
Fair Value |
|||||||||||||||||||
Derivatives not designated as hedging instruments |
||||||||||||||||||||||||
Forward loan sales commitments |
Other liabilities | $ | $ | Other liabilities | $ | $ | ||||||||||||||||||
TBA mortgage-backed securities |
Oth er liabilities |
Other liabilities |
||||||||||||||||||||||
Interest rate lock commitments |
Other liabilities | Other liabilities |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total derivatives not designated as hedging instruments |
$ | $ | $ | $ | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total liability derivatives |
$ | $ | $ | $ | ||||||||||||||||||||
|
|
|
|
|
|
|
|
Derivatives in Fair Value Hedging Relationships |
Location in the Statement Condition |
March 31, 2022 | ||||||
Carrying Amount of Hedged |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) |
Cumulative Amount of Fair Value Hedging Adjustment Remaining for any Hedged Assets/ (Liabilities) for which Hedge Accounting has been Discontinued | ||||||
Interest rate swaps |
Loans, net of unearned income | $ |
$ |
$ | ||||
Derivatives in Fair Value Hedging Relationships |
Location in the Statement |
December 31, 2021 | ||||||
Carrying Amount of Hedged |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) |
Cumulative Amount of Fair Value Hedging Adjustment Remaining for any Hedged Assets/ (Liabilities) for which Hedge Accounting has been Discontinued | ||||||
Interest rate swaps |
Loans, net of unearned income | $ |
$ ( |
$ |
Three Months Ended |
||||||||||
Income Statement Location |
March 31, 2022 |
March 31, 2021 |
||||||||
Derivatives in hedging relationships |
||||||||||
Fair Value Hedges: |
||||||||||
Interest rate swap contracts |
Interest and fees on loans | $ | ( |
) | $ | ( |
) | |||
Cash flow Hedges: |
|
|
| |||||||
Interest rate swap contracts |
Interest on long-term borrowings | $ | ( |
) | $ | ( |
) | |||
|
|
|
|
|||||||
Total derivatives in hedging relationships |
$ | ( |
) | $ | ( |
) | ||||
|
|
|
|
Three Months Ended |
||||||||||
Income Statement Location |
March 31, 2022 |
March 31, 2021 |
||||||||
Derivatives not designated as hedging instruments |
||||||||||
Forward loan sales commitments |
Income from Mortgage Banking Activities | $ | ( |
) | $ | ( |
) | |||
TBA mortgage-backed securities |
Income from Mortgage Banking Activities | |||||||||
Interest rate lock commitments |
Income from Mortgage Banking Activities | ( |
) | ( |
) | |||||
|
|
|
|
|||||||
Total derivatives not designated as hedging instruments |
$ | $ | ||||||||
|
|
|
|
|||||||
Total derivatives |
$ | $ | ||||||||
|
|
|
|
Level 1 |
- |
Valuation is based on quoted prices in active markets for identical assets and liabilities. | ||
Level 2 |
- |
Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the market. | ||
Level 3 |
- |
Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. |
Description |
Balance as of March 31, 2022 |
Fair Value at March 31, 2022 Using |
||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
||||||||||||||
Assets |
||||||||||||||||
Available for sale debt securities: |
||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government corporations and agencies |
$ | $ | $ | $ | ||||||||||||
State and political subdivisions |
||||||||||||||||
Residential mortgage-backed securities |
||||||||||||||||
Agency |
||||||||||||||||
Non-agency |
||||||||||||||||
Commercial mortgage-backed securities |
||||||||||||||||
Agency |
||||||||||||||||
Asset-backed securities |
||||||||||||||||
Single issue trust preferred securities |
||||||||||||||||
Other corporate securities |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total available for sale securities |
||||||||||||||||
Equity securities: |
||||||||||||||||
Financial services industry |
||||||||||||||||
Equity mutual funds (1) |
||||||||||||||||
Other equity securities |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total equity securities |
||||||||||||||||
Loans held for sale |
||||||||||||||||
Derivative financial assets: |
||||||||||||||||
Interest rate swap contracts |
||||||||||||||||
Forward sales commitments |
||||||||||||||||
TBA mortgage-backed securities |
Description |
Balance as of March 31, 2022 |
Fair Value at March 31, 2022 Using |
||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
||||||||||||||
Interest rate lock commitments |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total derivative financial assets |
||||||||||||||||
Liabilities |
||||||||||||||||
Derivative financial liabilities: |
||||||||||||||||
Interest rate swap contracts |
||||||||||||||||
Forward sales commitments |
||||||||||||||||
TBA mortgage-backed securities |
||||||||||||||||
Interest rate lock commitments |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total derivative financial liabilities |
||||||||||||||||
Fair Value at December 31, 2021 Using |
||||||||||||||||
Description |
Balance as of December 31, 2021 |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
||||||||||||
Assets |
||||||||||||||||
Available for sale debt securities: |
||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government corporations and agencies |
$ | $ | $ | $ | ||||||||||||
State and political subdivisions |
||||||||||||||||
Residential mortgage-backed securities |
||||||||||||||||
Agency |
||||||||||||||||
Non-agency |
||||||||||||||||
Commercial mortgage-backed securities |
||||||||||||||||
Agency |
||||||||||||||||
Asset-backed securities |
||||||||||||||||
Single issue trust preferred securities |
||||||||||||||||
Other corporate securities |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total available for sale securities |
||||||||||||||||
Equity securities: |
||||||||||||||||
Financial services industry |
||||||||||||||||
Equity mutual funds (1) |
||||||||||||||||
Other equity securities |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total equity securities |
||||||||||||||||
Loans held for sale |
||||||||||||||||
Derivative financial assets: |
||||||||||||||||
Interest rate swap contracts |
||||||||||||||||
Forward sales commitments |
||||||||||||||||
TBA mortgage-backed securities |
||||||||||||||||
Interest rate lock commitments |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total derivative financial assets |
||||||||||||||||
Liabilities |
||||||||||||||||
Derivative financial liabilities: |
||||||||||||||||
Interest rate swap contracts |
||||||||||||||||
Forward sales commitments |
||||||||||||||||
TBA mortgage-backed securities |
||||||||||||||||
Interest rate lock commitments |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total derivative financial liabilities |
Loans held for sale |
||||||||
March 31, 2022 |
December 31, 2021 |
|||||||
Balance, beginning of period |
$ | $ | ||||||
Originations |
||||||||
Sales |
( |
) | ( |
) | ||||
Total gains or losses during the period recognized in earnings |
||||||||
|
|
|
|
|||||
Balance, end of period |
$ | $ | ||||||
|
|
|
|
|||||
The amount of total gains for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at reporting date |
$ | ( |
) | $ |
Derivative Financial Assets TBA Securities |
||||||||
March 31, 2022 |
December 31, 2021 |
|||||||
Balance, beginning of period |
$ | $ | ||||||
Transfers other |
||||||||
|
|
|
|
|||||
Balance, end of period |
$ | $ | ||||||
|
|
|
|
|||||
The amount of total gains for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at reporting date |
$ | 9,135 | $ | 61 |
Derivative Financial Assets Interest Rate Lock Commitments |
||||||||
March 31, 2022 |
December 31, 2021 |
|||||||
Balance, beginning of period |
$ | $ | ||||||
Transfers other |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Balance, end of period |
$ | $ | ||||||
|
|
|
|
|||||
The amount of total gains for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at reporting date |
$ | $ | ||||||
Derivative Financial Liabilities Forward Sales Commitments |
||||||||
March 31, 2022 |
December 31, 2021 |
|||||||
Balance, beginning of period |
$ | $ | ||||||
Transfers other |
||||||||
|
|
|
|
|||||
Balance, end of period |
$ | $ | ||||||
|
|
|
|
|||||
The amount of total gains for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at reporting date |
$ | $ |
Derivative Financial Liabilities TBA Securities |
||||||||
March 31, 2022 |
December 31, 2021 |
|||||||
Balance, beginning of period |
$ | $ | ||||||
Transfers other |
( |
) | ||||||
|
|
|
|
|||||
Balance, end of period |
$ | $ | ||||||
The amount of total gains for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at reporting date |
$ | $ | ||||||
Derivative Financial Liabilities Interest Rate Lock Commitments |
||||||||
March 31, 2022 |
December 31, 2021 |
|||||||
Balance, beginning of period |
$ | $ | ||||||
Transfers other |
||||||||
Balance, end of period |
$ | $ | ||||||
The amount of total gains for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at reporting date |
$ | $ |
Description |
Three Months Ended March 31, 2022 |
Three Months Ended March 31, 2021 |
||||||
Income from mortgage banking activities |
$ | ( |
) | $ | ( |
) |
March 31, 2022 |
December 31, 2021 |
|||||||||||||||||||||||
Description |
Unpaid Principal Balance |
Fair Value |
Fair Value Over/(Under) Unpaid Principal Balance |
Unpaid Principal Balance |
Fair Value |
Fair Value Over/(Under) Unpaid Principal Balance |
||||||||||||||||||
Loans held for sale |
$ | $ | $ | ( |
) | $ | $ | $ |
Description |
Balance as of March 31, 2022 |
Carrying value at March 31, 2022 |
YTD Gains (Losses) |
|||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
||||||||||||||||||
Assets |
||||||||||||||||||||
Individually assessed loans |
$ | $ | 0 | $ | $ | $ | ( |
) | ||||||||||||
OREO |
0 | ( |
) | |||||||||||||||||
Mortgage servicing rights |
0 | |||||||||||||||||||
Description |
Balance as of December 31, 2021 |
Carrying value at December 31, 2021 |
YTD (Losses) |
|||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
||||||||||||||||||
Assets |
||||||||||||||||||||
Individually assessed loans |
$ | $ | $ | $ | $ | (601 ) |
||||||||||||||
OREO |
( |
) | ||||||||||||||||||
Mortgage servicing rights |
( |
) |
Fair Value Measurements |
||||||||||||||||||||
Carrying Amount |
Fair Value |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
||||||||||||||||
March 31, 2022 |
||||||||||||||||||||
Cash and cash equivalents |
$ | $ | $ | $ | $ | |||||||||||||||
Securities available for sale |
||||||||||||||||||||
Securities held to maturity |
||||||||||||||||||||
Equity securities |
||||||||||||||||||||
Other securities |
||||||||||||||||||||
Loans held for sale |
||||||||||||||||||||
Net loans |
||||||||||||||||||||
Derivative financial assets |
||||||||||||||||||||
Mortgage servicing rights |
||||||||||||||||||||
Deposits |
||||||||||||||||||||
Short-term borrowings |
||||||||||||||||||||
Long-term borrowings |
||||||||||||||||||||
Derivative financial liabilities |
||||||||||||||||||||
Fair Value Measurements |
||||||||||||||||||||
Carrying Amount |
Fair Value |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
||||||||||||||||||||
Cash and cash equivalents |
$ | $ | $ | $ | $ | |||||||||||||||
Securities available for sale |
||||||||||||||||||||
Securities held to maturity |
||||||||||||||||||||
Equity securities |
||||||||||||||||||||
Other securities |
||||||||||||||||||||
Loans held for sale |
||||||||||||||||||||
Net loans |
||||||||||||||||||||
Derivative financial assets |
||||||||||||||||||||
Mortgage servicing rights |
||||||||||||||||||||
Deposits |
||||||||||||||||||||
Short-term borrowings |
||||||||||||||||||||
Long-term borrowings |
||||||||||||||||||||
Derivative financial liabilities |
Three Months Ended March 31, 2022 |
||||||||||||||||
Shares |
Aggregate Intrinsic Value |
Weighted Average |
||||||||||||||
Remaining Contractual Term (Yrs.) |
Exercise Price |
|||||||||||||||
Outstanding at January 1, 2022 |
$ | |||||||||||||||
Exercised |
( |
) | ||||||||||||||
Forfeited or expired |
( |
) | ||||||||||||||
Outstanding at March 31, 2022 |
$ | $ | ||||||||||||||
Exercisable at March 31, 2022 |
$ | $ | ||||||||||||||
Shares |
Weighted-Average Grant Date Fair Value Per Share |
|||||||
Nonvested at January 1, 2022 |
$ | |||||||
Vested |
( |
) | ||||||
Forfeited or expired |
( |
) | ||||||
Nonvested at March 31, 2022 |
$ | |||||||
Shares |
Weighted-Average Grant Date Fair Value Per Share |
|||||||
Nonvested at January 1, 2022 |
$ | |||||||
Granted |
||||||||
Vested |
( |
) | ||||||
Forfeited |
( |
) | ||||||
Nonvested at March 31, 2022 |
$ | |||||||
Shares |
Weighted-Average Grant Date Fair Value Per Share |
|||||||
Nonvested at January 1, 2022 |
$ | |||||||
Granted |
||||||||
Vested |
( |
) | ||||||
Nonvested at March 31, 2022 |
$ | |||||||
Three Months Ended March 31 |
||||||||
2022 |
2021 |
|||||||
Service cost |
$ | $ | ||||||
Interest cost |
||||||||
Expected return on plan assets |
( |
) | ( |
) | ||||
Recognized net actuarial loss |
||||||||
Net periodic pension (benefit) cost |
$ | ( |
) | $ | ||||
Weighted-Average Assumptions: |
||||||||
Discount Rate |
% | % | ||||||
Expected return on assets |
% | % | ||||||
Rate of Compensation Increase (prior to age 40) |
% | % | ||||||
Rate of Compensation Increase (ages 40-54) |
% | % | ||||||
Rate of Compensation Increase (prior to age 45) |
n/ a |
n/ a |
||||||
Rate of Compensation Increase (otherwise) |
% | % |
Three Months Ended |
||||||||
March 31 |
||||||||
2022 |
2021 |
|||||||
Net Income |
$ |
$ |
||||||
Available for sale (“AFS”) securities: |
||||||||
Change in net unrealized loss on AFS securities arising during the period |
( |
) | ( |
) | ||||
Related income tax effect |
||||||||
Net reclassification adjustment for gains included in net income |
( |
) | ( |
) | ||||
Related income tax effect |
||||||||
( |
) | ( |
) | |||||
Net effect of AFS securities on other comprehensive income |
( |
) |
( |
) | ||||
Cash flow hedge derivatives: |
||||||||
Unrealized gain on cash flow hedge before reclassification to interest expense |
||||||||
Related income tax effect |
( |
) | ( |
) | ||||
Net reclassification adjustment for losses included in net income |
||||||||
Related income tax effect |
( |
) | ( |
) | ||||
Net effect of cash flow hedge derivatives on other comprehensive income |
||||||||
Pension plan: |
||||||||
Recognized net actuarial loss |
||||||||
Related income tax benefit |
( |
) | ( |
) | ||||
Net effect of change in pension plan asset on other comprehensive income |
||||||||
Total change in other comprehensive income |
( |
) |
( |
) | ||||
Total Comprehensive Income |
$ |
( |
) |
$ |
||||
Changes in Accumulated Other Comprehensive Income (AOCI) by Component (a) |
||||||||||||||||
For the Three Months Ended March 31, 2022 |
||||||||||||||||
Unrealized Gains/ Losses on AFS Securities |
Unrealized Gains/ Losses on Cash Flow Hedges |
Defined Benefit Pension Items |
Total |
|||||||||||||
Balance at January 1, 2022 |
$ | $ | $ | ( |
) | $ | ( |
) | ||||||||
Other comprehensive income before reclassification |
( |
) | ( |
) | ||||||||||||
Amounts reclassified from accumulated other comprehensive income |
( |
) | ||||||||||||||
Net current-period other comprehensive income, net of tax |
( |
) | ( |
) | ||||||||||||
Balance at March 31, 2022 |
$ | ( |
) | $ | $ | ( |
) | $ | ( |
) | ||||||
(a) | All amounts are net-of-tax. |
Reclassifications out of Accumulated Other Comprehensive Income (AOCI) | ||||||||||
For the Three Months Ended March 31, 2022 | ||||||||||
Details about AOCI Components |
Amount Reclassified from AOCI |
Affected Line Item in the Statement Where Net Income is Presented | ||||||||
Available for sale (“AFS”) securities: |
||||||||||
Net reclassification adjustment for gains included in net income |
$ | ( |
) | Net investment securities gains | ||||||
|
|
|||||||||
( |
) | Total before tax | ||||||||
Related income tax effect |
Income taxes | |||||||||
|
|
|||||||||
( |
) | Net of tax | ||||||||
Cash flow hedge: |
||||||||||
Net reclassification adjustment for losses included in net income |
$ | Interest expense | ||||||||
|
|
|||||||||
Total before tax | ||||||||||
Related income tax effect |
( |
) | Income taxes | |||||||
|
|
|||||||||
Net of tax | ||||||||||
|
|
|||||||||
Pension plan: |
||||||||||
Recognized net actuarial loss |
(a) | |||||||||
|
|
|||||||||
Total before tax | ||||||||||
Related income tax effect |
( |
) | Income taxes | |||||||
|
|
|||||||||
Net of tax | ||||||||||
|
|
|||||||||
Total reclassifications for the period |
$ | |||||||||
|
|
(a) | This AOCI component is included in the computation of changes in plan assets (see Note 16, Employee Benefit Plans) |
Three Months Ended |
||||||||
March 31 |
||||||||
2022 |
2021 |
|||||||
Distributed earnings allocated to common stock |
$ | $ | ||||||
Undistributed earnings allocated to common stock |
||||||||
|
|
|
|
|||||
Net earnings allocated to common shareholders |
$ | $ | ||||||
|
|
|
|
|||||
Average common shares outstanding |
||||||||
Common stock equivalents |
||||||||
|
|
|
|
|||||
Average diluted shares outstanding |
||||||||
|
|
|
|
|||||
Earnings per basic common share |
$ | $ | ||||||
Earnings per diluted common share |
$ | $ |
Description |
Issuance Date |
Amount of Capital Securities Issued |
Stated Interest Rate |
Maturity Date | ||||||
United Statutory Trust III |
$ | |||||||||
United Statutory Trust IV |
$ | |||||||||
United Statutory Trust V |
$ | |||||||||
United Statutory Trust VI |
$ | |||||||||
Premier Statutory Trust II |
$ | |||||||||
Premier Statutory Trust III |
$ | |||||||||
Premier Statutory Trust IV |
$ | |||||||||
Premier Statutory Trust V |
$ | |||||||||
Centra Statutory Trust I |
$ | |||||||||
Centra Statutory Trust II |
$ | |||||||||
Virginia Commerce Trust II |
$ | |||||||||
Virginia Commerce Trust III |
$ | |||||||||
Cardinal Statutory Trust I |
$ | |||||||||
UFBC Capital Trust I |
$ | |||||||||
Carolina Financial Capital Trust I |
$ |
Description |
Issuance Date |
Amount of Capital Securities Issued |
Stated Interest Rate |
Maturity Date | ||||||
Carolina Financial Capital Trust II |
$ | |||||||||
Greer Capital Trust I |
$ | |||||||||
Greer Capital Trust II |
$ | |||||||||
First South Preferred Trust I |
$ | |||||||||
BOE Statutory Trust I |
$ |
As of March 31, 2022 |
As of December 31, 2021 |
|||||||||||||||||||||||
Aggregate Assets |
Aggregate Liabilities |
Risk Of Loss (1) |
Aggregate Assets |
Aggregate Liabilities |
Risk Of Loss (1) |
|||||||||||||||||||
Trust preferred securities |
$ | $ | $ | $ | $ | $ |
(1) | Represents investment in VIEs. |
At and For the Three Months Ended March 31, 2022 |
||||||||||||||||||||
Community Banking |
Mortgage Banking |
Other |
Intersegment Eliminations |
Consolidated |
||||||||||||||||
Net interest income |
$ | $ | $ | ( |
) | $ | $ | |||||||||||||
Provision for credit losses |
( |
) | ( |
) | ||||||||||||||||
Other income |
( |
) | ( |
) | ||||||||||||||||
Other expense |
( |
) | ( |
) | ||||||||||||||||
Income taxes |
( |
) | ||||||||||||||||||
Net income (loss) |
$ | $ | $ | ( |
) | $ | $ | |||||||||||||
Total assets (liabilities) |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||
Average assets (liabilities) |
( |
) |
At and For the Three Months Ended March 31, 2021 |
||||||||||||||||||||
Community Banking |
Mortgage Banking |
Other |
Intersegment Eliminations |
Consolidated |
||||||||||||||||
Net interest income |
$ | $ | $ | ( |
) | $ | $ | |||||||||||||
Provision for credit losses |
||||||||||||||||||||
Other income |
( |
) | ||||||||||||||||||
Other expense |
( |
) | ||||||||||||||||||
Income taxes |
||||||||||||||||||||
Net income (loss) |
$ | $ | $ | $ | $ | |||||||||||||||
Total assets (liabilities) |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||
Average assets (liabilities) |
( |
) |
Item 2. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
(Dollars in thousands) |
March 31 2022 |
December 31 2021 |
$ Change |
% Change |
||||||||||||
U.S. Treasury securities and obligations of U.S. Government corporations and agencies |
$ | 371,392 | $ | 81,850 | $ | 289,542 | 353.75 | % | ||||||||
State and political subdivisions |
795,512 | 847,298 | (51,786 | ) | (6.11 | %) | ||||||||||
Mortgage-backed securities |
2,116,800 | 1,828,244 | 288,556 | 15.78 | % | |||||||||||
Asset-backed securities |
843,999 | 656,572 | 187,427 | 28.55 | % | |||||||||||
Single issue trust preferred securities |
16,669 | 16,811 | (142 | ) | (0.84 | %) | ||||||||||
Corporate securities |
616,562 | 611,924 | 4,638 | 0.76 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total available for sale securities, at fair value |
$ | 4,760,934 | $ | 4,042,699 | $ | 718,235 | 17.77 | % | ||||||||
|
|
|
|
|
|
|
|
(Dollars in thousands) |
March 31 2022 |
December 31 2021 |
$ Change |
% Change |
||||||||||||
State and political subdivisions |
$ | 981 | (1) |
$ | 981 | (1) |
$ | 0 | 0.00 | % | ||||||
Other corporate securities |
20 | 20 | 0 | 0.00 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total held to maturity securities, at amortized cost |
$ | 1,001 | $ | 1,001 | $ | 0 | 0.00 | % | ||||||||
|
|
|
|
|
|
|
|
(1) | net of allowance for credit losses of $19 thousand. |
(Dollars in thousands) |
March 31 2022 |
December 31 2021 |
$ Change |
% Change |
||||||||||||
Loans held for sale |
$ | 340,040 | $ | 504,416 | $ | (164,376 | ) | (32.59 | %) | |||||||
|
|
|
|
|
|
|
|
|||||||||
Commercial, financial, and agricultural: |
||||||||||||||||
Owner-occupied commercial real estate |
$ | 1,697,910 | $ | 1,733,176 | $ | (35,266 | ) | (2.03 | %) | |||||||
Nonowner-occupied commercial real estate |
6,047,856 | 5,957,288 | 90,568 | 1.52 | % | |||||||||||
Other commercial loans |
3,533,910 | 3,462,361 | 71,549 | 2.07 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total commercial, financial, and agricultural |
$ | 11,279,676 | $ | 11,152,825 | $ | 126,851 | 1.14 | % | ||||||||
Residential real estate |
3,705,535 | 3,691,560 | 13,975 | 0.38 | % | |||||||||||
Construction & land development |
2,186,126 | 2,014,165 | 171,961 | 8.54 | % | |||||||||||
Consumer: |
||||||||||||||||
Bankcard |
8,398 | 8,913 | (515 | ) | (5.78 | %) | ||||||||||
Other consumer |
1,239,545 | 1,183,844 | 55,701 | 4.71 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total gross loans |
$ | 18,419,280 | $ | 18,051,307 | $ | 367,973 | 2.04 | % | ||||||||
Less: Unearned income |
(27,194 | ) | (27,659 | ) | 465 | (1.68 | %) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Loans, net of unearned income |
$ | 18,392,086 | $ | 18,023,648 | $ | 368,438 | 2.04 | % | ||||||||
|
|
|
|
|
|
|
|
(Dollars in thousands) |
March 31 2022 |
December 31 2021 |
$ Change |
% Change |
||||||||||||
Demand deposits |
$ | 9,006,961 | $ | 8,980,547 | $ | 26,414 | 0.29 | % | ||||||||
Interest-bearing checking |
3,822,725 | 3,734,355 | 88,370 | 2.37 | % | |||||||||||
Regular savings |
1,705,494 | 1,641,404 | 64,090 | 3.90 | % | |||||||||||
Money market accounts |
6,548,151 | 6,361,887 | 186,264 | 2.93 | % | |||||||||||
Time deposits under $100,000 |
981,662 | 1,031,008 | (49,346 | ) | (4.79 | %) | ||||||||||
Time deposits over $100,000 (1) |
1,409,308 | 1,601,062 | (191,754 | ) | (11.98 | %) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total deposits |
$ | 23,474,301 | $ | 23,350,263 | $ | 124,038 | 0.53 | % | ||||||||
|
|
|
|
|
|
|
|
(1) | Includes time deposits of $250,000 or more of $556,426 and $640,752 at March 31, 2022 and December 31, 2021, respectively. |
(Dollars in thousands) |
March 31 2022 |
December 31 2021 |
$ Change |
% Change |
||||||||||||
Short-term securities sold under agreements to repurchase |
$ | 136,370 | $ | 128,844 | $ | 7,526 | 5.84 | % | ||||||||
Long-term FHLB advances |
531,615 | 532,199 | (584 | ) | (0.11 | %) | ||||||||||
Subordinated debt |
9,877 | 9,872 | 5 | 0.05 | % | |||||||||||
Issuances of trust preferred capital securities |
275,743 | 275,323 | 420 | 0.15 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total borrowings |
$ | 953,605 | $ | 946,238 | $ | 7,367 | 0.78 | % | ||||||||
|
|
|
|
|
|
|
|
Three Months Ended |
||||||||
(Dollars in thousands) |
March 31, 2022 |
March 31, 2021 |
||||||
Return on Average Tangible Equity: |
||||||||
(a) Net Income (GAAP) |
$ | 81,664 | $ | 106,898 | ||||
(b) Number of days |
90 | 90 | ||||||
Average Total Shareholders’ Equity (GAAP) |
$ | 4,759,780 | $ | 4,346,750 | ||||
Less: Average Total Intangibles |
(1,911,125 | ) | (1,825,639 | ) | ||||
|
|
|
|
|||||
(b) Average Tangible Equity (non-GAAP) |
$ | 2,848,655 | $ | 2,521,111 | ||||
Return on Tangible Equity (non-GAAP) [(a) / (b)] x 365/ (c) |
11.63 | % | 17.20 | % |
Three Months Ended |
||||||||||||
(Dollars in thousands) |
March 2022 |
March 2021 |
December 2021 |
|||||||||
Income Statement Summary : |
||||||||||||
Interest income |
$ | 202,795 | $ | 205,657 | $ | 195,194 | ||||||
Interest expense |
11,293 | 14,697 | 11,516 | |||||||||
|
|
|
|
|
|
|||||||
Net interest income |
191,502 | 190,960 | 183,678 | |||||||||
Provision for credit losses |
(3,410 | ) | 143 | (7,405 | ) | |||||||
Other income |
46,023 | 92,573 | 54,049 | |||||||||
Other expense |
139,173 | 148,927 | 151,789 | |||||||||
|
|
|
|
|
|
|||||||
Income before income taxes |
101,762 | 134,463 | 93,343 | |||||||||
Income taxes |
20,098 | 27,565 | 19,491 | |||||||||
|
|
|
|
|
|
|||||||
Net income |
$ | 81,664 | $ | 106,898 | $ | 73,852 | ||||||
|
|
|
|
|
|
Three Months Ended |
||||||||||||
(Dollars in thousands) |
March 31 2022 |
March 31 2021 |
December 31 2021 |
|||||||||
Loan accretion |
$ | 4,139 | $ | 9,800 | $ | 6,234 | ||||||
Certificates of deposit |
1,038 | 1,449 | 908 | |||||||||
Long-term borrowings |
159 | 174 | 166 | |||||||||
|
|
|
|
|
|
|||||||
Total |
$ | 5,336 | $ | 11,423 | $ | 7,308 | ||||||
|
|
|
|
|
|
Three Months Ended |
||||||||||||
(Dollars in thousands) |
March 31 2022 |
March 31 2021 |
December 31 2021 |
|||||||||
Net interest income, GAAP basis |
$ | 191,502 | $ | 190,960 | $ | 183,678 | ||||||
Tax-equivalent adjustment (1) |
1,109 | 1,047 | 1,037 | |||||||||
|
|
|
|
|
|
|||||||
Tax-equivalent net interest income |
$ | 192,611 | $ | 192,007 | $ | 184,715 | ||||||
|
|
|
|
|
|
(1) | The tax-equivalent adjustment combines amounts of interest income on federally nontaxable loans and investment securities using the statutory federal income tax rate of 21% for the three months ended March 31, 2022 and 2021 and December 31, 2021. All interest income on loans and investment securities was subject to state income taxes. |
Three Months Ended March 31, 2022 |
Three Months Ended March 31, 2021 |
|||||||||||||||||||||||
(Dollars in thousands) |
Average Balance |
Interest (1) |
Avg. Rate (1) |
Average Balance |
Interest (1) |
Avg. Rate (1) |
||||||||||||||||||
ASSETS |
||||||||||||||||||||||||
Earning Assets: |
||||||||||||||||||||||||
Federal funds sold and securities purchased under agreements to resell and other short-term investments |
$ | 3,028,826 | $ | 2,329 | 0.31 | % | $ | 2,289,545 | $ | 1,893 | 0.34 | % | ||||||||||||
Investment Securities: |
||||||||||||||||||||||||
Taxable |
4,264,820 | 17,505 | 1.64 | % | 2,921,295 | 13,526 | 1.85 | % | ||||||||||||||||
Tax-exempt |
444,542 | 2,688 | 2.42 | % | 294,820 | 1,981 | 2.69 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Securities |
4,709,362 | 20,193 | 1.72 | % | 3,216,115 | 15,507 | 1.93 | % | ||||||||||||||||
Loans, net of unearned income (2) |
18,530,232 | 181,382 | 3.96 | % | 18,237,552 | 189,304 | 4.20 | % | ||||||||||||||||
Allowance for loan losses |
(216,016 | ) | (235,795 | ) | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Net loans |
18,314,216 | 4.01 | % | 18,001,757 | 4.26 | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total earning assets |
26,052,404 | $ | 203,904 | 3.16 | % | 23,507,417 | $ | 206,704 | 3.56 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Other assets |
3,292,118 | 2,983,699 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
TOTAL ASSETS |
$ | 29,344,522 | $ | 26,491,116 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
LIABILITIES |
||||||||||||||||||||||||
Interest-Bearing Funds: |
||||||||||||||||||||||||
Interest-bearing deposits |
$ | 14,383,839 | $ | 8,561 | 0.24 | % | $ | 13,184,728 | $ | 11,985 | 0.37 | % | ||||||||||||
Short-term borrowings |
133,987 | 181 | 0.55 | % | 142,155 | 178 | 0.51 | % | ||||||||||||||||
Long-term borrowings |
817,363 | 2,551 | 1.27 | % | 833,365 | 2,534 | 1.23 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Interest-Bearing Funds |
15,335,189 | 11,293 | 0.30 | % | 14,160,248 | 14,697 | 0.42 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Noninterest-bearing deposits |
8,991,131 | 7,735,638 | ||||||||||||||||||||||
Accrued expenses and other liabilities |
258,422 | 248,480 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
TOTAL LIABILITIES |
24,584,742 | 22,144,366 | ||||||||||||||||||||||
SHAREHOLDERS’ EQUITY |
4,759,780 | 4,346,750 | ||||||||||||||||||||||
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ | 29,344,522 | $ | 26,491,116 | ||||||||||||||||||||
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NET INTEREST INCOME |
$ | 192,611 | $ | 192,007 | ||||||||||||||||||||
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INTEREST SPREAD |
2.86 | % | 3.14 | % | ||||||||||||||||||||
NET INTEREST MARGIN |
2.99 | % | 3.30 | % |
(1) | The interest income and the yields on federally nontaxable loans and investment securities are presented on a tax-equivalent basis using the statutory federal income tax rate of 21%. |
(2) | Nonaccruing loans are included in the daily average loan amounts outstanding. |
• | Past events – This includes portfolio trends related to business conditions; past due, nonaccrual, and graded loans and leases; and concentrations. |
• | Current conditions – United considered the impact of inflation, supply chain issues, labor shortages and the conflict in eastern Europe when making determinations related to factor adjustments, such as changes in economic and business conditions, collateral values and external factors. |
• | Reasonable and supportable forecasts – The forecast is determined on a portfolio-by-portfolio |
• | The forecast for real GDP shifted downward in the first quarter, from a projection of 4.00% for 2022 at the end of 2021 to 2.80% for 2022 with a more level downward future trendline as compared to the end of 2021. The unemployment rate remained fairly consistent to the end of 2021 with a steady trend expected throughout 2022 and 2023. |
• | Greater risk of loss is probable in the hotel and accommodations portfolio due to weakened economic conditions brought on by the pandemic and labor shortages which resulted in a more negative forecast relative to other portfolios and a longer projected recovery period to extend into late 2023 or 2024. |
• | Reversion to historical loss data occurs via a straight-line method during the year following the one-year reasonable and supportable forecast period. |
Change in Interest Rates (basis points) |
Percentage Change in Net Interest Income |
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March 31, 2022 |
December 31, 2021 |
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+200 |
1.40 | % | 4.61 | % | ||||
+100 |
1.36 | % | 2.70 | % | ||||
-100 |
(1.59 | %) | (0.98 | %) | ||||
-200 |
(6.88 | %) | (2.42 | %) |
Period |
Total Number of Shares Purchased (1) (2) |
Average Price Paid per Share |
Total Number of Shares Purchased as Part of Publicly Announced Plans (3) |
Maximum Number of Shares that May Yet be Purchased Under the Plans (3) |
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1/01 – 1/31/2022 |
0 | $ | 00.00 | 0 | 3,033,796 | |||||||||||
2/01 – 2/28/2022 |
30,088 | $ | 35.84 | 0 | 3,033,796 | |||||||||||
3/01 – 3/31/2022 |
710,785 | $ | 35.15 | 710,785 | 2,323,011 | |||||||||||
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Total |
740,873 | $ | 35.18 | 710,785 | ||||||||||||
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(1) | Includes shares exchanged in connection with the exercise of stock options or the vesting of restricted stock under United’s long-term incentive plans. Shares are purchased pursuant to the terms of the applicable plan and not pursuant to a publicly announced stock repurchase plan. For the quarter ended March 31, 2022 – 30,085 shares at an average price of $35.84 were exchanged by participants in United’s long-term incentive plans. |
(2) | Includes shares purchased in open market transactions by United for a rabbi trust to provide payment of benefits under a deferred compensation plan for certain key officers of United and its subsidiaries. For the quarter ended March 31, 2022, the following shares were purchased for the deferred compensation plan: February 2022 – 3 shares at an average price of $37.91. |
(3) | In October 2019, United’s Board of Directors approved a repurchase plan to repurchase up to 4,000,000 shares of United’s common stock on the open market (the “2019 Plan”). The timing, price and quantity of purchases under the plans are at the discretion of management and the plan may be discontinued, suspended or restarted at any time depending on the facts and circumstances. |
(a) | None. |
(b) | No changes were made to the procedures by which security holders may recommend nominees to United’s Board of Directors. |
Exhibit No. |
Description | |
32.2 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by Chief Financial Officer (furnished herewith) | |
101 | Interactive data file (inline XBRL) (filed herewith) | |
104 | Cover Page (embedded in inline XBRL and contained in Exhibit 101) |
UNITED BANKSHARES, INC. | ||||
(Registrant) | ||||
Date: May 10, 2022 |
/s/ Richard M. Adams, Jr. | |||
Richard M. Adams, Jr. | ||||
Chief Executive Officer | ||||
Date: May 10, 2022 |
/s/ W. Mark Tatterson | |||
W. Mark Tatterson, Executive | ||||
Vice President and Chief Financial Officer |