☒ | ANNUAL 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 |
Texas | 75-2453320 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
5219 City Bank Parkway Lubbock, Texas | 79407 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, par value $1.00 per share | SPFI | The Nasdaq Stock Market, LLC |
Large accelerated filer ☐ | Accelerated filer |
Non-accelerated filer | Smaller reporting company |
Emerging growth company ☒ |
Page No. | |||
PART I | |||
Item 1. | 5 | ||
Item | |||
Item | |||
Item 1C. | 37 | ||
Item 2. | |||
Item 3. | |||
Item 4. | |||
PART II | |||
Item 5. | |||
Item 6. | |||
Item 7. | |||
Item 7A. | 63 | ||
Item 8. | |||
64 | |||
Item 9. | |||
Item 9A. | |||
Item 9B. | 105 | ||
Item 9C. | 106 | ||
PART III | |||
Item 10. | |||
Item 11. | |||
Item 12. | |||
Item 13. | |||
Item 14. | |||
PART IV | |||
Item 15. | |||
Item 16. | |||
● | potential recession in the United States and our market areas; |
● | the impacts related to or resulting from recent bank failures and any continuation of the recent uncertainty in the banking industry, including the associated impact to the Company and other financial institutions of any regulatory changes or other mitigation efforts taken by government agencies in response thereto; |
● | increased competition for deposits and related changes in deposit customer behavior; |
● | the persistence of the current inflationary environment in the United States and our market areas, and its impact on market interest rates, the economy and credit quality; |
● | our ability to effectively execute our expansion strategy and manage our growth, including identifying and consummating suitable |
● | business and economic conditions, particularly those affecting our market areas, as well as the concentration of our business in such market areas; |
● | the impact of pandemics, epidemics, or any other health-related crisis; |
● | high concentrations of loans secured by real estate located in our market areas; |
● | increases in unemployment rates in the United States and our market areas; |
● | risks associated with our commercial loan portfolio, including the risk for deterioration in value of the general business assets that secure such loans; |
● | potential changes in the prices, values and sales volumes of commercial and residential real estate securing our real estate loans; |
● | risks associated with our agricultural loan portfolio, including the heightened sensitivity to weather conditions, commodity prices, and other factors generally outside the borrowers and our control; |
● | risks associated with the sale of crop insurance products, including termination of or substantial changes to the federal crop insurance program; |
● | risks related to the significant amount of credit that we have extended to a limited number of borrowers and in a limited geographic area; |
● | public funds deposits comprising a relatively high percentage of our deposits; |
● | potential impairment on the goodwill we have recorded or may record in connection with business acquisitions; |
● | our ability to maintain our reputation; |
● | our ability to successfully manage our credit risk and the sufficiency of our allowance for |
● | our ability to attract, hire and retain qualified management personnel; |
● | our dependence on our management team, including our ability to retain executive officers and key employees and their customer and community relationships; |
● | interest rate fluctuations, which could have an adverse effect on our profitability; |
● | competition from banks, credit unions and other financial services providers; |
● | our ability to keep pace with technological change or difficulties we may experience when implementing new technologies; |
● |
● | our ability to maintain effective internal control over financial reporting; |
● | employee error, fraudulent activity by employees or customers and inaccurate or incomplete information about our customers and counterparties; |
● | increased capital requirements imposed by banking regulators, which may require us to raise capital at a time when capital is not available on favorable terms or at all; |
● | our ability to maintain adequate liquidity and to raise necessary capital to fund our acquisition strategy and operations or to meet increased minimum regulatory capital levels; |
● | costs and effects of litigation, investigations or similar matters to which we may be subject, including any effect on our reputation; |
● | natural disasters, severe weather, acts of god, acts of war or terrorism, |
● | uncertainty regarding United States fiscal debt and budget matters; |
● | changes in tariffs and trade |
● | compliance with governmental and regulatory requirements, including the Dodd-Frank Act Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”), Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 (“EGRRCPA”), and others relating to banking, consumer protection, |
● | changes in the laws, rules, regulations, interpretations or policies |
● | our ability to navigate the uncertain impacts of current and future governmental monetary and fiscal |
Basel III Minimum for Capital Adequacy Purposes | Basel III Additional Capital Conservation Buffer | Basel III Ratio with Capital Conservation Buffer | ||||||||||
Total risk based capital (total capital to risk-weighted assets) | 8.00 | % | 2.50 | % | 10.50 | % | ||||||
Tier 1 risk based capital (tier 1 to risk-weighted assets) | 6.00 | % | 2.50 | % | 8.50 | % | ||||||
Common equity tier 1 risk based capital (CET1 to risk-weighted assets) | 4.50 | % | 2.50 | % | 7.00 | % | ||||||
Tier 1 leverage ratio (tier 1 to average assets) | 4.00 | % | — | 4.00 | % |
Basel III Minimum for Capital Adequacy Purposes | Basel III Additional Capital Conservation Buffer | Basel III Ratio with Capital Conservation Buffer | ||||||||||
Total risk based capital (total capital to risk-weighted assets) | 8.00 | % | 2.50 | % | 10.50 | % | ||||||
Tier 1 risk based capital (Tier 1 to risk-weighted assets) | 6.00 | % | 2.50 | % | 8.50 | % | ||||||
Common equity Tier 1 risk based capital (CET1 to risk-weighted assets) | 4.50 | % | 2.50 | % | 7.00 | % | ||||||
Tier 1 leverage ratio (Tier 1 to average assets) | 4.00 | % | — | 4.00 | % |
● | assigning exposures secured by single-family residential properties to either a 50% risk weight for first-lien mortgages that meet prudent underwriting standards or a 100% risk weight category for all other mortgages; |
● | providing for a 20% credit conversion factor for the unused portion of a commitment with an original maturity of one year or less that is not unconditionally cancellable (increased from 0% under the previous risk-based capital rules); |
● | assigning a |
● | applying a 150% risk weight instead of a 100% risk weight for certain high-volatility commercial real estate, or HVCRE, loans, or acquisition, development, and construction, or ADC, loans; and |
● | applying a 250% risk weight to the portion of mortgage servicing rights and deferred tax assets arising from temporary differences that could not be realized through net operating loss carrybacks that are not deducted from CET1 capital (increased from 100% under the previous risk-based capital rules). |
● | internal policies, |
● | systems and procedures for monitoring and reporting suspicious transactions and activities; |
● | a designated compliance officer; |
● | employee training; |
● | an independent audit function to test the AML program; |
● | procedures to verify the identity of each customer upon the opening of accounts; and |
● | heightened due diligence policies, |
Item 1C. | Cybersecurity |
● | a comprehensive risk management process, integrated with the Enterprise Risk Management system, that continuously assesses, identifies, and manages current and emerging cybersecurity threats and risks, evaluates the effectiveness of information security controls, and reports the overall risk posture to Executive Management and the Board of Directors. |
● | assessment of daily cyber threat intelligence from multiple sources; |
● | the use of third party information security services for continuous monitoring and alerting of information systems, network. and user activity; |
● | a Vulnerability Management Program that scans networks, devices, and information systems for known cyber vulnerabilities, and initiates processes to mitigate them; |
● | a third party risk management program that evaluates and ensures our key partners adhere to the same level of information security posture as we do internally; |
● | Business Continuity and Incident Response plans that are designed and tested for anticipated operational failures, natural disasters, cyberattacks, and other disruptive events; and |
● | an Information Security Awareness program to ensure employees and customers maintain an awareness of information security threats and best practices to prevent them. |
Item 2. |
Lubbock/South Plains | ||||||
Location | Branch or LPO | Location | Branch or LPO | |||
Lubbock | Main Branch | Plano | Branch | |||
Lubbock | 4th Street Branch | Dallas | Uptown Branch | |||
Lubbock | 50th and Indiana Branch | Forney | Branch | |||
Lubbock | Kingsgate Branch | Arlington | LPO | |||
Lubbock | Milwaukee Branch | Dallas | Hillcrest LPO | |||
Lubbock | Overton Branch | LPO | ||||
Lubbock | University Branch | |||||
Grand Prairie | LPO | |||||
Branch | Southlake | LPO | ||||
Idalou | Branch | |||||
Levelland | Branch |
El Paso | Houston | |||||
Location | Branch or LPO | Location | Branch or LPO | |||
El Paso | East Branch | Houston | Branch | |||
El Paso | West Branch | |||||
El Paso | Mesa Hills LPO |
Bryan/College Station | ||||||
Location | Branch or LPO | Location | Branch or LPO | |||
College Station | Branch | Ruidoso | Gateway Branch | |||
College Station | LPO | Ruidoso | River Crossing Branch |
The Permian Basin | Other Markets | |||||
Location | Branch or LPO | Location | Branch or LPO | |||
Odessa | University Branch | Abilene, Texas | LPO | |||
Odessa | Grandview Branch | |||||
Midland | Branch | |||||
Kermit | Branch | |||||
Fort Stockton | Branch | |||||
Monahans | Branch |
Plan Category | Number of Shares to be Issued Upon Exercise of Outstanding Awards | Weighted-Average Exercise Price of Outstanding Awards | Number of Shares Available for Future Grants | |||||||||
Equity compensation plans approved by shareholders(1) | 1,544,197 | $ | $ 12.72 | 568,303 | ||||||||
Equity compensation plans not approved by shareholders | — | — | — | |||||||||
Total | 1,544,197 | $ | 12.72 | 568,303 |
Plan Category | Number of Shares to be Issued Upon Exercise of Outstanding Awards | Weighted-Average Exercise Price of Outstanding Awards | Number of Shares Available for Future Grants | |||||||||
Equity compensation plans approved by shareholders(1) | 1,406,775 | $ | 15.40 | 2,036,512 | ||||||||
Equity compensation plans not approved by shareholders | — | — | — | |||||||||
Total | 1,406,775 | $ | 15.40 | 2,036,512 |
(1) | The number of shares available for future issuance includes |
Total Shares Repurchased (1) | Average Price Paid Per Share | Total Dollar Amount Purchased Pursuant to Publicly-Announced Plans | Maximum Dollar Amount Remaining Available for Repurchase Pursuant to Publicly-Announced Plans | |||||||||||||
October 2023 | 107,803 | $ | 26.47 | $ | 2,853,822 | $ | 277,330 | |||||||||
November 2023 | 10,360 | 26.77 | 277,330 | — | ||||||||||||
December 2023 | — | — | — | — | ||||||||||||
Total | 130,189 |
(1) | Includes 100,000 shares that the Company repurchased from Curtis C. Griffith, the Chairman and Chief Executive Officer of the Company, on November 7, 2023, at a price of $26.30 per share, in a privately negotiated transaction outside of the Program |
Dollars | 5/9/19 | 12/31/19 | 12/31/20 | 12/31/21 | 12/31/22 | 12/31/23 | ||||||||||||||||||
South Plains Financial, Inc. | $ | 100.0 | $ | 118.25 | $ | 108.42 | $ | 161.21 | $ | 162.27 | $ | 174.28 | ||||||||||||
S&P United States BMI Banks Index | 100.0 | 117.22 | 102.26 | 139.04 | 115.32 | 179.71 | ||||||||||||||||||
S&P 500 | 100.0 | 114.03 | 135.01 | 173.77 | 142.30 | 125.80 |
Item 6. |
As of or for the Year Ended December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||
Selected Income Statement Data: | ||||||||||||||||||||
Interest income | $ | 132,942 | $ | 118,094 | $ | 104,440 | $ | 97,220 | $ | 95,033 | ||||||||||
Interest expense | 28,367 | 22,482 | 15,977 | 14,582 | 13,543 | |||||||||||||||
Net interest income | 104,575 | 95,612 | 88,463 | 82,638 | 81,490 | |||||||||||||||
Provision for loan losses | 2,799 | 6,901 | 3,966 | 1,968 | 781 | |||||||||||||||
Noninterest income | 56,633 | 52,121 | 47,389 | 49,896 | 39,630 | |||||||||||||||
Noninterest expense | 121,708 | 115,443 | 108,144 | 104,388 | 97,293 | |||||||||||||||
Income tax expense (benefit) | 7,481 | (3,901 | ) | 107 | 101 | 114 | ||||||||||||||
Net income | 29,220 | 29,290 | 23,635 | 26,077 | 22,932 | |||||||||||||||
Share and Per Share Data: | ||||||||||||||||||||
Earnings per share (basic) | $ | 1.74 | $ | 1.98 | $ | 1.60 | $ | 1.75 | $ | 1.53 | ||||||||||
Earnings per share (diluted) | 1.71 | 1.98 | 1.60 | 1.74 | 1.52 | |||||||||||||||
Dividends per share | 0.06 | 2.03 | 0.53 | 0.43 | 0.48 | |||||||||||||||
Book value per share(1) | 16.98 | 14.40 | 14.58 | 13.58 | 12.33 | |||||||||||||||
Tangible book value per share(1)(2) | 15.46 | 14.40 | 14.58 | 13.58 | 12.33 | |||||||||||||||
Weighted average common shares outstanding (basic) | 16,818,697 | 14,771,520 | 14,769,086 | 14,932,021 | 14,963,288 | |||||||||||||||
Weighted average common shares outstanding (diluted) | 17,040,550 | 14,771,520 | 14,771,520 | 14,997,897 | 15,092,592 | |||||||||||||||
Shares outstanding at end of period | 18,036,115 | 14,771,520 | 14,771,520 | 14,771,520 | 15,028,830 | |||||||||||||||
Selected Period End Balance Sheet Data: | ||||||||||||||||||||
Cash and cash equivalents | $ | 158,099 | $ | 245,989 | $ | 294,563 | $ | 363,400 | $ | 360,503 | ||||||||||
Investment securities | 707,650 | 338,196 | 284,009 | 324,823 | 331,322 | |||||||||||||||
Gross loans held for investment | 2,143,623 | 1,957,197 | 1,838,155 | 1,661,186 | 1,679,314 | |||||||||||||||
Allowance for loan losses | 24,197 | 23,126 | 21,461 | 21,174 | 24,220 | |||||||||||||||
Total assets | 3,237,167 | 2,712,745 | 2,573,375 | 2,500,813 | 2,536,865 | |||||||||||||||
Interest-bearing deposits | 1,905,936 | 1,767,387 | 1,678,919 | 1,658,198 | 1,713,476 | |||||||||||||||
Noninterest-bearing deposits | 790,921 | 510,067 | 475,162 | 432,725 | 413,777 | |||||||||||||||
Total deposits | 2,696,857 | 2,277,454 | 2,154,081 | 2,090,923 | 2,127,253 | |||||||||||||||
Borrowings | 205,030 | 193,100 | 177,830 | 189,196 | 206,418 | |||||||||||||||
ESOP-owned shares | — | 58,195 | 57,121 | 49,700 | 39,867 | |||||||||||||||
Total stockholders’ equity excluding ESOP-owned shares | 306,182 | 154,580 | 158,206 | 150,019 | 145,372 | |||||||||||||||
Pro forma total stockholders’ equity(3) | 306,182 | 212,775 | 215,327 | 199,719 | 185,239 |
As of or for the Year Ended December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||
Performance Ratios: | ||||||||||||||||||||
Return on average assets | 1.04 | % | 1.12 | % | 0.93 | % | 1.02 | % | 0.95 | % | ||||||||||
Return on average stockholders’ equity(1) | 10.94 | % | 13.63 | % | 11.40 | % | 13.30 | % | 13.00 | % | ||||||||||
Net interest margin(4) | 3.98 | % | 3.94 | % | 3.85 | % | 3.60 | % | 3.78 | % | ||||||||||
Efficiency ratio(5) | 75.29 | % | 77.64 | % | 77.87 | % | 77.01 | % | 78.33 | % | ||||||||||
Pro Forma Information as if a C Corporation:(6) | ||||||||||||||||||||
Net income | 29,220 | 20,757 | 17,580 | 19,652 | 17,073 | |||||||||||||||
Income tax expense (benefit) | 7,481 | 4,632 | 6,162 | 6,526 | 5,973 | |||||||||||||||
Earnings per share (basic) | 1.74 | 1.41 | 1.19 | 1.32 | 1.14 | |||||||||||||||
Earnings per share (diluted) | 1.71 | 1.41 | 1.19 | 1.31 | 1.13 | |||||||||||||||
Return on average assets | 1.04 | % | 0.79 | % | 0.69 | % | 0.77 | % | 0.71 | % | ||||||||||
Return on average stockholders’ equity(1) | 10.94 | % | 9.66 | % | 8.48 | % | 10.02 | % | 9.68 | % | ||||||||||
Credit Quality Ratios: | ||||||||||||||||||||
Nonperforming assets to total assets(7) | 0.24 | % | 0.34 | % | 0.65 | % | 0.60 | % | 0.65 | % | ||||||||||
Nonperforming loans to total loans held for investment | 0.28 | 0.36 | 0.76 | 0.43 | 0.52 | |||||||||||||||
Allowance for loan losses to nonperforming loans(8) | 400.28 | 332.56 | 154.38 | 294.29 | 275.07 | |||||||||||||||
Allowance for loan losses to total loans held for investment | 1.13 | 1.18 | 1.17 | 1.27 | 1.44 | |||||||||||||||
Net loan charge-offs to average loans | 0.09 | 0.27 | 0.21 | 0.30 | 0.27 | |||||||||||||||
Capital Ratios: | ||||||||||||||||||||
Total stockholders’ equity to total assets(1) | 9.46 | % | 7.84 | % | 8.37 | % | 7.99 | % | 7.30 | % | ||||||||||
Tangible common equity to tangible assets(2) | 8.69 | 7.84 | 8.37 | 7.99 | 7.30 | |||||||||||||||
Common equity tier 1 capital ratio | 11.06 | 9.91 | 10.78 | 10.91 | 9.96 | |||||||||||||||
Tier 1 leverage ratio | 11.37 | 9.63 | 10.06 | 9.56 | 9.34 | |||||||||||||||
Tier 1 risk-based capital ratio | 12.85 | 11.98 | 13.02 | 13.38 | 12.41 | |||||||||||||||
Total risk-based capital ratio | 14.88 | 14.28 | 15.15 | 15.69 | 14.79 |
As of or for the Year Ended December 31, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Selected Income Statement Data: | ||||||||||||
Net interest income | $ | 139,747 | $ | 138,476 | $ | 121,764 | ||||||
Provision for credit losses | 4,610 | (2,619 | ) | (1,918 | ) | |||||||
Noninterest income | 79,226 | 76,145 | 97,469 | |||||||||
Noninterest expense | 134,946 | 144,089 | 148,030 | |||||||||
Income tax expense | 16,672 | 14,911 | 14,507 | |||||||||
Net income | 62,745 | 58,240 | 58,614 | |||||||||
Share and Per Share Data: | ||||||||||||
Earnings per share (basic) | $ | 3.73 | $ | 3.35 | $ | 3.26 | ||||||
Earnings per share (diluted) | 3.62 | 3.23 | 3.17 | |||||||||
Dividends per share | 0.52 | 0.46 | 0.30 | |||||||||
Tangible book value per share(1) | 23.47 | 19.57 | 21.51 | |||||||||
Selected Period End Balance Sheet Data: | ||||||||||||
Cash and cash equivalents | $ | 330,158 | $ | 234,883 | $ | 486,821 | ||||||
Investment securities | 622,762 | 701,711 | 724,504 | |||||||||
Gross loans held for investment | 3,014,153 | 2,748,081 | 2,437,577 | |||||||||
Allowance for credit losses on loans | 42,356 | 39,288 | 42,098 | |||||||||
Total assets | 4,204,793 | 3,944,063 | 3,901,855 | |||||||||
Total deposits | 3,626,153 | 3,406,430 | 3,341,222 | |||||||||
Borrowings | 110,168 | 122,354 | 122,168 | |||||||||
Total stockholders’ equity | 407,114 | 357,014 | 407,427 | |||||||||
Performance Ratios: | ||||||||||||
Return on average assets | 1.54 | % | 1.47 | % | 1.56 | % | ||||||
Return on average stockholders’ equity | 16.58 | % | 15.79 | % | 15.08 | % | ||||||
Net interest margin(2) | 3.61 | % | 3.73 | % | 3.51 | % | ||||||
Efficiency ratio(3) | 61.33 | % | 66.76 | % | 67.14 | % | ||||||
Credit Quality Ratios: | ||||||||||||
Nonperforming assets to total assets(4) | 0.14 | % | 0.20 | % | 0.30 | % | ||||||
Nonperforming loans to total loans held for investment(5) | 0.17 | % | 0.28 | % | 0.43 | % | ||||||
Allowance for credit losses on loans to nonperforming loans(5) | 818.00 | % | 504.34 | % | 397.23 | % | ||||||
Allowance for credit losses on loans to total loans held for investment | 1.41 | % | 1.43 | % | 1.73 | % | ||||||
Net loan charge-offs to average loans | 0.07 | % | 0.01 | % | 0.06 | % | ||||||
Capital Ratios: | ||||||||||||
Total stockholders’ equity to total assets | 9.68 | % | 9.05 | % | 10.44 | % | ||||||
Tangible common equity to tangible assets(1) | 9.21 | % | 8.50 | % | 9.85 | % | ||||||
Common equity tier 1 capital ratio | 12.41 | % | 11.81 | % | 12.91 | % | ||||||
Tier 1 leverage ratio | 11.33 | % | 11.03 | % | 10.77 | % | ||||||
Tier 1 risk-based capital ratio | 13.69 | % | 13.15 | % | 14.49 | % | ||||||
Total risk-based capital ratio | 16.74 | % | 16.58 | % | 18.40 | % |
(1) | Represents a non-GAAP financial measure. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Non-GAAP Financial Measures.” |
(2) | Net interest margin is calculated as the annual net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets. |
(3) | The efficiency ratio is calculated by dividing noninterest expense by the sum of net interest income on a tax-equivalent basis and noninterest income. |
(4) | Nonperforming assets consist of nonperforming loans plus foreclosed assets. |
(5) | Nonperforming loans include nonaccrual loans and loans past due 90 days or more. |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2023 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/Rate | Average Balance | Interest | Yield/Rate | Average Balance | Interest | Yield/Rate | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans(1) | $ | 1,997,783 | $ | 117,074 | 5.86 | % | $ | 1,921,221 | $ | 105,897 | 5.51 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Loans(1) | $ | 2,924,473 | $ | 176,627 | 6.04 | % | $ | 2,612,161 | $ | 137,957 | 5.28 | % | $ | 2,420,201 | $ | 120,545 | 4.98 | % | ||||||||||||||||||||||||||||||||||||||||||
Investment securities – taxable | 317,947 | 8,608 | 2.71 | 209,631 | 5,392 | 2.57 | 570,655 | 21,590 | 3.78 | % | 594,405 | 15,010 | 2.53 | % | 532,272 | 9,292 | 1.75 | % | ||||||||||||||||||||||||||||||||||||||||||
Investment securities – non-taxable | 37,232 | 1,289 | 3.46 | 101,778 | 3,635 | 3.57 | 185,205 | 4,901 | 2.65 | % | 216,216 | 5,733 | 2.65 | % | 219,385 | 5,872 | 2.68 | % | ||||||||||||||||||||||||||||||||||||||||||
Other interest-earning assets (2) | 284,031 | 6,412 | 2.26 | 218,777 | 4,120 | 1.88 | 223,152 | 9,973 | 4.47 | % | 318,862 | 3,675 | 1.15 | % | 336,081 | 565 | 0.17 | % | ||||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets | 2,636,993 | 133,383 | 5.06 | 2,451,407 | 119,044 | 4.86 | 3,903,485 | 213,091 | 5.46 | % | 3,741,644 | 162,375 | 4.34 | % | 3,507,939 | 136,274 | 3.88 | % | ||||||||||||||||||||||||||||||||||||||||||
Noninterest-earning assets | 182,967 | 172,489 | 176,495 | 222,544 | 261,140 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 2,819,960 | $ | 2,623,896 | $ | 4,079,980 | $ | 3,964,188 | $ | 3,769,079 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities and Shareholders’ Equity: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOW, savings and money market deposits | $ | 1,448,320 | $ | 16,436 | 1.13 | % | $ | 1,386,171 | $ | 13,005 | 0.94 | % | 2,117,985 | 55,423 | 2.62 | % | 1,889,888 | 13,013 | 0.69 | % | 1,841,678 | 4,163 | 0.23 | % | ||||||||||||||||||||||||||||||||||||
Time deposits | 319,811 | 6,055 | 1.89 | 313,298 | 4,556 | 1.45 | 321,205 | 9,564 | 2.98 | % | 327,289 | 3,989 | 1.22 | % | 329,509 | 4,130 | 1.25 | % | ||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings | 16,231 | 290 | 1.79 | 18,334 | 265 | 1.45 | 84 | 5 | 5.95 | % | 4 | — | 0.00 | % | 8,045 | 5 | 0.06 | % | ||||||||||||||||||||||||||||||||||||||||||
Notes payable & other longer-term borrowings | 95,054 | 2,024 | 2.13 | 95,000 | 1,786 | 1.88 | — | — | 0.00 | % | — | — | 0.00 | % | 19,641 | 38 | 0.19 | % | ||||||||||||||||||||||||||||||||||||||||||
Subordinated debt securities | 26,786 | 1,616 | 6.03 | 21,529 | 1,046 | 4.86 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subordinated debt | 75,458 | 4,018 | 5.32 | % | 75,874 | 4,050 | 5.34 | % | 75,699 | 4,056 | 5.36 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Junior subordinated deferrable interest debentures | 46,393 | 1,946 | 4.19 | 46,393 | 1,824 | 3.93 | 46,393 | 3,276 | 7.06 | % | 46,393 | 1,640 | 3.54 | % | 46,393 | 880 | 1.90 | % | ||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | $ | 1,952,595 | $ | 28,367 | 1.45 | $ | 1,880,725 | $ | 22,482 | 1.20 | 2,561,125 | 72,286 | 2.82 | % | 2,339,448 | 22,692 | 0.97 | % | 2,320,965 | 13,272 | 0.57 | % | ||||||||||||||||||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 570,428 | $ | 495,808 | 1,069,280 | 1,189,730 | 1,016,835 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 29,891 | 32,535 | 71,102 | 66,182 | 42,654 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total noninterest-bearing liabilities | 600,319 | 528,343 | 1,140,382 | 1,255,912 | 1,059,489 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders’ equity | 267,046 | 214,828 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,819,960 | $ | 2,623,896 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 378,473 | �� | 368,828 | 388,625 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 4,079,980 | $ | 3,964,188 | $ | 3,769,079 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 105,016 | $ | 96,562 | $ | 140,805 | $ | 139,683 | $ | 123,002 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest spread | 3.61 | % | 3.66 | % | 2.64 | % | 3.37 | % | 3.31 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin(3) | 3.98 | % | 3.94 | % | 3.61 | % | 3.73 | % | 3.51 | % |
(1) | Average loan balances include nonaccrual loans and loans held for sale. |
(2) | Includes income and average balances for interest-earning deposits at other banks, nonmarketable securities, federal funds sold and other miscellaneous interest-earning assets. |
(3) | Net interest margin is calculated as the |
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||
2019 over 2018 | Year Ended December 31, 2023 over 2022 | Year Ended December 31, 2022 over 2021 | ||||||||||||||||||||||||||||||||||
Change due to: | Total | Change due to: | Change due to: | |||||||||||||||||||||||||||||||||
Volume | Rate | Variance | Volume | Rate | Total Variance | Volume | Rate | Total Variance | ||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||
Loans | $ | 4,220 | $ | 6,957 | $ | 11,177 | $ | 16,494 | $ | 22,176 | $ | 38,670 | $ | 7,134 | $ | 10,278 | $ | 17,412 | ||||||||||||||||||
Investment securities – taxable | 2,786 | 430 | 3,216 | (600 | ) | 7,180 | 6,580 | 1,085 | 4,633 | 5,718 | ||||||||||||||||||||||||||
Investment securities – non-taxable | (2,305 | ) | (41 | ) | (2,346 | ) | (822 | ) | (10 | ) | (832 | ) | (85 | ) | (54 | ) | (139 | ) | ||||||||||||||||||
Other interest-earning assets | 1,229 | 1,063 | 2,292 | (1,103 | ) | 7,401 | 6,298 | (29 | ) | 3,139 | 3,110 | |||||||||||||||||||||||||
Total increase (decrease) in interest income | 5,930 | 8,409 | 14,339 | 13,969 | 36,747 | 50,716 | 8,105 | 17,996 | 26,101 | |||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||
NOW, Savings, MMDAs | 583 | 2,848 | 3,431 | 1,571 | 40,839 | 42,410 | 109 | 8,741 | 8,850 | |||||||||||||||||||||||||||
Time deposits | 95 | 1,404 | 1,499 | (74 | ) | 5,649 | 5,575 | (28 | ) | (113 | ) | (141 | ) | |||||||||||||||||||||||
Short-term borrowings | (30 | ) | 55 | 25 | — | 5 | 5 | (5 | ) | — | (5 | ) | ||||||||||||||||||||||||
Notes payable & other borrowings | 1 | 237 | 238 | — | — | — | (38 | ) | — | (38 | ) | |||||||||||||||||||||||||
Subordinated debt securities | 255 | 315 | 570 | |||||||||||||||||||||||||||||||||
Subordinated debt | (22 | ) | (10 | ) | (32 | ) | 9 | (15 | ) | (6 | ) | |||||||||||||||||||||||||
Junior subordinated deferrable interest debentures | — | 122 | 122 | — | 1,636 | 1,636 | — | 760 | 760 | |||||||||||||||||||||||||||
Total increase (decrease) interest expense: | 904 | 4,981 | 5,885 | 1,475 | 48,119 | 49,594 | 47 | 9,373 | 9,420 | |||||||||||||||||||||||||||
Increase (decrease) in net interest income | $ | 5,026 | $ | 3,428 | $ | 8,454 | $ | 12,494 | $ | (11,372 | ) | $ | 1,122 | $ | 8,058 | $ | 8,623 | $ | 16,681 |
Year Ended December 31, | Increase | Year Ended December 31, 2023 over 2022 | Year Ended December 31, 2022 over 2021 | |||||||||||||||||||||||||||||||||
2019 | 2018 | (Decrease) | 2023 | 2022 | Increase (decrease) | 2022 | 2021 | Increase (decrease) | ||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||||||||||||
Service charges on deposit accounts | $ | 8,130 | $ | 7,813 | $ | 317 | $ | 7,130 | $ | 6,829 | $ | 301 | $ | 6,829 | $ | 6,963 | $ | (134 | ) | |||||||||||||||||
Income from insurance activities | 7,015 | 7,128 | (113 | ) | 1,515 | 10,826 | (9,311 | ) | 10,826 | 8,314 | 2,512 | |||||||||||||||||||||||||
Bank card services and interchange fees | 8,692 | 8,845 | (153 | ) | 13,323 | 12,946 | 377 | 12,946 | 12,239 | 707 | ||||||||||||||||||||||||||
Mortgage banking activities | 25,126 | 21,384 | 3,742 | 13,817 | 31,370 | (17,553 | ) | 31,370 | 59,726 | (28,356 | ) | |||||||||||||||||||||||||
Investment commissions | 1,709 | 1,779 | (70 | ) | 1,698 | 1,825 | (127 | ) | 1,825 | 1,934 | (109 | ) | ||||||||||||||||||||||||
Fiduciary income | 2,306 | 1,441 | 865 | 2,433 | 2,390 | 43 | 2,390 | 2,917 | (527 | ) | ||||||||||||||||||||||||||
Gain on sale of subsidiary | 33,778 | — | 33,778 | — | — | — | ||||||||||||||||||||||||||||||
Other income and fees(1) | 3,654 | 3,731 | (77 | ) | 5,532 | 9,959 | (4,427 | ) | 9,959 | 5,376 | 4,583 | |||||||||||||||||||||||||
Total noninterest income | $ | 56,632 | $ | 52,121 | $ | 4,511 | $ | 79,226 | $ | 76,145 | $ | 3,081 | $ | 76,145 | $ | 97,469 | $ | (21,324 | ) |
(1) | Other income and fees includes income and fees associated with the increase in the cash surrender value of life insurance, safe deposit box rental, check printing, collections, legal settlements, wire transfer, Small Business Investment Company (“SBIC”) investments, and other miscellaneous services. |
Year Ended December 31, | Increase | Year Ended December 31, 2023 over 2022 | Year Ended December 31, 2022 over 2021 | |||||||||||||||||||||||||||||||||
2019 | 2018 | (Decrease) | 2023 | 2022 | Increase (decrease) | 2022 | 2021 | Increase (decrease) | ||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Noninterest expense: | ||||||||||||||||||||||||||||||||||||
Salaries and employee benefits | $ | 75,392 | $ | 71,778 | $ | 3,614 | $ | 79,377 | $ | 86,323 | $ | (6,946 | ) | $ | 86,323 | $ | 93,360 | $ | (7,037 | ) | ||||||||||||||||
Occupancy expense, net | 13,572 | 13,571 | 1 | 16,102 | 15,987 | 115 | 15,987 | 14,560 | 1,427 | |||||||||||||||||||||||||||
Professional services | 7,334 | 6,734 | 600 | 6,433 | 9,740 | (3,307 | ) | 9,740 | 6,752 | 2,988 | ||||||||||||||||||||||||||
Marketing and development | 3,017 | 3,050 | (33 | ) | 3,453 | 3,614 | (161 | ) | 3,614 | 3,225 | 389 | |||||||||||||||||||||||||
IT and data services | 2,830 | 2,233 | 597 | 3,410 | 3,780 | (370 | ) | 3,780 | 4,007 | (227 | ) | |||||||||||||||||||||||||
Bankcard expenses | 3,346 | 2,743 | 603 | 5,557 | 5,376 | 181 | 5,376 | 4,995 | 381 | |||||||||||||||||||||||||||
Appraisal expenses | 1,625 | 1,353 | 272 | 1,087 | 1,747 | (660 | ) | 1,747 | 3,248 | (1,501 | ) | |||||||||||||||||||||||||
Realized loss on sale of securities | 3,409 | — | 3,409 | — | — | — | ||||||||||||||||||||||||||||||
Other expenses(1) | 14,591 | 13,981 | 610 | 16,118 | 17,522 | (1,404 | ) | 17,522 | 17,883 | (361 | ) | |||||||||||||||||||||||||
Total noninterest expense | $ | 121,707 | $ | 115,443 | $ | 6,264 | $ | 134,946 | $ | 144,089 | $ | (9,143 | ) | $ | 144,089 | $ | 148,030 | $ | (3,941 | ) |
(1) | Other expenses include items such as banking regulatory assessments, telephone expenses, postage, courier fees, directors’ fees, and insurance. |
As of December 31, | ||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | |||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 658,195 | 30.7 | % | $ | 538,037 | 27.5 | % | $ | 506,894 | 27.6 | % | $ | 462,495 | 27.9 | % | $ | 490,938 | 29.3 | % | ||||||||||||||||||||
Commercial – specialized | 309,505 | 14.4 | 305,022 | 15.6 | 329,119 | 17.9 | 309,279 | 18.6 | 329,561 | 19.6 | ||||||||||||||||||||||||||||||
Commercial – general | 441,398 | 20.6 | 427,728 | 21.9 | 410,057 | 22.3 | 395,949 | 23.8 | 395,938 | 23.6 | ||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||
1-4 family residential | 362,796 | 16.9 | 346,153 | 17.7 | 313,350 | 17.0 | 297,944 | 17.9 | 291,099 | 17.3 | ||||||||||||||||||||||||||||||
Auto loans | 215,209 | 10.0 | 191,647 | 9.8 | 146,622 | 8.0 | 76,215 | 4.6 | 66,710 | 4.0 | ||||||||||||||||||||||||||||||
Other consumer | 74,000 | 3.5 | 70,209 | 3.6 | 66,191 | 3.6 | 62,097 | 3.7 | 64,057 | 3.8 | ||||||||||||||||||||||||||||||
Construction | 82,520 | 3.8 | 78,401 | 4.0 | 65,922 | 3.6 | 57,207 | 3.4 | 41,011 | 2.4 | ||||||||||||||||||||||||||||||
Gross loans | 2,143,623 | 100.0 | % | 1,957,197 | 100.0 | % | 1,838,155 | 100.0 | % | 1,661,186 | 100.0 | % | 1,679,314 | 100.0 | % | |||||||||||||||||||||||||
Allowance for loan losses | (24,197 | ) | (23,126 | ) | (21,461 | ) | (21,174 | ) | (24,220 | ) | ||||||||||||||||||||||||||||||
Net loans | $ | 2,119,426 | $ | 1,934,071 | $ | 1,816,694 | $ | 1,640,012 | $ | 1,655,094 |
Due in One Year or Less | Due after One Year Through Five Years | Due after Five Years Through Fifteen Years | Due after Fifteen Years | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial real estate | $ | 110,563 | $ | 597,520 | $ | 288,569 | $ | 84,404 | $ | 1,081,056 | ||||||||||
Commercial - specialized | 130,836 | 115,520 | 74,148 | 51,872 | 372,376 | |||||||||||||||
Commercial - general | 77,012 | 166,654 | 149,795 | 123,900 | 517,361 | |||||||||||||||
Consumer: | ||||||||||||||||||||
1-4 family residential | 32,425 | 92,820 | 80,478 | 329,008 | 534,731 | |||||||||||||||
Auto loans | 3,074 | 192,825 | 109,372 | — | 305,271 | |||||||||||||||
Other consumer | 8,487 | 46,961 | 18,720 | — | 74,168 | |||||||||||||||
Construction | 108,663 | 15,072 | 1,324 | 4,131 | 129,190 | |||||||||||||||
Total loans | $ | 471,060 | $ | 1,227,372 | $ | 722,406 | $ | 593,315 | $ | 3,014,153 |
Fixed Rate | Adjustable Rate | |||||||
(Dollars in thousands) | ||||||||
Commercial real estate | $ | 438,873 | $ | 531,620 | ||||
Commercial - specialized | 90,848 | 150,692 | ||||||
Commercial - general | 160,529 | 279,820 | ||||||
Consumer: | ||||||||
1-4 family residential | 307,699 | 194,607 | ||||||
Auto loans | 302,197 | — | ||||||
Other consumer | 65,681 | — | ||||||
Construction | 11,112 | 9,415 | ||||||
Total loans | $ | 1,376,939 | $ | 1,166,154 |
As of December 31, 2019 | ||||||||||||||||||||||||||||
Due in One Year or Less | Due after One Year Through Five Years | Due after Five Years | ||||||||||||||||||||||||||
Fixed Rate | Adjustable Rate | Fixed Rate | Adjustable Rate | Fixed Rate | Adjustable Rate | Total | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Commercial real estate | $ | 40,447 | $ | 47,455 | $ | 107,589 | $ | 130,381 | $ | 27,408 | $ | 304,915 | $ | 658,195 | ||||||||||||||
Commercial - specialized | 35,815 | 98,369 | 51,411 | 46,708 | 12,986 | 64,216 | 309,505 | |||||||||||||||||||||
Commercial - general | 31,148 | 34,654 | 82,977 | 67,434 | 27,434 | 197,751 | 441,398 | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
1-4 family residential | 25,210 | 8,539 | 74,562 | 10,261 | 154,625 | 89,599 | 362,796 | |||||||||||||||||||||
Auto loans | 1,561 | 42 | 143,776 | 33 | 69,797 | — | 215,209 | |||||||||||||||||||||
Other consumer | 3,874 | 2,952 | 37,796 | 235 | 29,077 | 66 | 74,000 | |||||||||||||||||||||
Construction | 33,560 | 28,147 | 1,829 | 818 | — | 18,166 | 82,520 | |||||||||||||||||||||
Gross loans | $ | 171,615 | $ | 220,158 | $ | 499,940 | $ | 255,870 | $ | 321,327 | $ | 674,713 | $ | 2,143,623 |
As of December 31, 2018 | ||||||||||||||||||||||||||||
Due in One Year or Less | Due after One Year Through Five Years | Due after Five Years | ||||||||||||||||||||||||||
Fixed Rate | Adjustable Rate | Fixed Rate | Adjustable Rate | Fixed Rate | Adjustable Rate | Total | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Commercial real estate | $ | 45,345 | $ | 34,071 | $ | 127,377 | $ | 81,068 | $ | 8,380 | $ | 241,796 | $ | 538,037 | ||||||||||||||
Commercial - specialized | 13,446 | 132,050 | 64,373 | 31,684 | 8,166 | 55,303 | 305,022 | |||||||||||||||||||||
Commercial - general | 27,669 | 37,546 | 69,210 | 63,962 | 11,148 | 218,193 | 427,728 | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
1-4 family residential | 20,772 | 9,302 | 63,141 | 15,455 | 163,841 | 73,642 | 346,153 | |||||||||||||||||||||
Auto loans | 1,176 | — | 120,008 | — | 70,463 | — | 191,647 | |||||||||||||||||||||
Other consumer | 3,399 | 1,734 | 35,432 | 127 | 29,377 | 140 | 70,209 | |||||||||||||||||||||
Construction | 30,582 | 23,642 | 6,975 | 4,591 | — | 12,611 | 78,401 | |||||||||||||||||||||
Gross loans | $ | 142,389 | $ | 238,345 | $ | 486,516 | $ | 196,887 | $ | 291,375 | $ | 601,685 | $ | 1,957,197 |
December 31, | ||||||||
2023 | 2022 | |||||||
(Dollars in thousands) | ||||||||
Commitments to grant loans and unfunded commitments under lines of credit | $ | 598,800 | $ | 682,296 | ||||
Standby letters of credit | 11,503 | 13,864 | ||||||
Total | $ | 610,303 | $ | 696,160 |
As of December 31, | As of or for the Year Ended December 31, | |||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | 2023 | 2022 | 2021 | |||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||
Average loans outstanding(1) | $ | 1,997,783 | $ | 1,921,221 | $ | 1,790,201 | $ | 1,689,915 | $ | 1,655,441 | ||||||||||||||||||||||
Gross loans held for investment outstanding at period end | $ | 2,143,623 | $ | 1,957,197 | $ | 1,838,155 | $ | 1,661,186 | $ | 1,679,314 | ||||||||||||||||||||||
Allowance for loan losses at beginning of the period | $ | 23,126 | $ | 21,461 | $ | 21,174 | $ | 24,220 | $ | 27,940 | ||||||||||||||||||||||
Charge offs: | ||||||||||||||||||||||||||||||||
Average loans outstanding during period(1) | ||||||||||||||||||||||||||||||||
Commercial real estate | — | 1,540 | 18 | 43 | 3,554 | $ | 988,121 | $ | 817,365 | $ | 705,516 | |||||||||||||||||||||
Commercial – specialized | 355 | 115 | 173 | 2,429 | 493 | 350,940 | 351,598 | 336,754 | ||||||||||||||||||||||||
Commercial – general | 306 | 4,291 | 2,658 | 2,143 | 1,685 | 517,242 | 476,553 | 490,945 | ||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||
1-4 family residential | 436 | 272 | 387 | 63 | 667 | 512,149 | 409,023 | 374,609 | ||||||||||||||||||||||||
Auto loans | 1,067 | 972 | 875 | 656 | 370 | 317,465 | 285,493 | 227,301 | ||||||||||||||||||||||||
Other consumer | 1,034 | 941 | 1,495 | 1,281 | 1,424 | 78,842 | 85,881 | 68,106 | ||||||||||||||||||||||||
Construction | 75 | 15 | — | 130 | — | 140,460 | 150,072 | 124,840 | ||||||||||||||||||||||||
Total charge-offs | 3,273 | 8,146 | 5,606 | 6,745 | 8,193 | |||||||||||||||||||||||||||
Loans held for sale | 19,254 | 36,176 | 92,130 | |||||||||||||||||||||||||||||
Total average loans outstanding during period | $ | 2,924,473 | $ | 2,612,161 | $ | 2,420,201 | ||||||||||||||||||||||||||
Recoveries: | ||||||||||||||||||||||||||||||||
Net charge-offs (recoveries) during the period | ||||||||||||||||||||||||||||||||
Commercial real estate | 431 | 1,622 | 103 | 685 | 2,463 | $ | — | $ | (418 | ) | $ | (109 | ) | |||||||||||||||||||
Commercial – specialized | 124 | 87 | 790 | 235 | 42 | (164 | ) | (807 | ) | 11 | ||||||||||||||||||||||
Commercial – general | 533 | 774 | 567 | 495 | 833 | 292 | (122 | ) | 459 | |||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||
1-4 family residential | 61 | 74 | 80 | 5 | 77 | (5 | ) | 100 | 44 | |||||||||||||||||||||||
Auto loans | 182 | 165 | 149 | 50 | 93 | 691 | 364 | 483 | ||||||||||||||||||||||||
Other consumer | 214 | 188 | 238 | 260 | 183 | 861 | 913 | 653 | ||||||||||||||||||||||||
Construction | — | — | — | — | 1 | 319 | 161 | (4 | ) | |||||||||||||||||||||||
Total recoveries | 1,545 | 2,910 | 1,927 | 1,730 | 3,692 | |||||||||||||||||||||||||||
Net charge-offs | (1,728 | ) | (5,236 | ) | (3,679 | ) | (5,015 | ) | (4,501 | ) | ||||||||||||||||||||||
Total net charge-offs (recoveries) during the period | $ | 1,994 | $ | 191 | $ | 1,537 | ||||||||||||||||||||||||||
Total loans held for investment outstanding | $ | 3,014,153 | $ | 2,748,081 | $ | 2,437,577 | ||||||||||||||||||||||||||
Nonaccrual loans | $ | 3,242 | $ | 5,802 | $ | 9,518 | ||||||||||||||||||||||||||
Allowance for credit losses | $ | 42,356 | $ | 39,288 | $ | 42,098 | ||||||||||||||||||||||||||
Ratio of allowance to total loans held for investment | 1.41 | % | 1.43 | % | 1.73 | % | ||||||||||||||||||||||||||
Ratio of allowance to nonaccrual loans | 1,306.48 | % | 677.15 | % | 442.30 | % | ||||||||||||||||||||||||||
Ratio of nonaccrual loans to total loans held for investment | 0.11 | % | 0.21 | % | 0.39 | % | ||||||||||||||||||||||||||
Ratio of net charge-offs (recoveries) to average loans during the period | ||||||||||||||||||||||||||||||||
Commercial real estate | — | (0.05 | )% | (0.02 | )% | |||||||||||||||||||||||||||
Commercial – specialized | (0.05 | )% | (0.23 | )% | — | |||||||||||||||||||||||||||
Commercial – general | 0.06 | % | (0.03 | )% | 0.09 | % | ||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||
1-4 family residential | — | 0.02 | % | 0.01 | % | |||||||||||||||||||||||||||
Auto loans | 0.22 | % | 0.13 | % | 0.21 | % | ||||||||||||||||||||||||||
Other consumer | 1.09 | % | 1.06 | % | 0.96 | % | ||||||||||||||||||||||||||
Construction | 0.23 | % | 0.11 | % | — | |||||||||||||||||||||||||||
Total ratio of net charge-offs (recoveries) to average loans during the period | 0.07 | % | 0.01 | % | 0.06 | % | ||||||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Provision for loan losses | 2,799 | 6,901 | 3,966 | 1,969 | 781 | |||||||||||||||
Balance at end of period | $ | 24,197 | $ | 23,126 | $ | 21,461 | $ | 21,174 | $ | 24,220 | ||||||||||
Ratio of allowance to period end loans held for investment | 1.13 | % | 1.18 | % | 1.17 | % | 1.27 | % | 1.44 | % | ||||||||||
Ratio of net charge-offs to average loans(1) | 0.09 | % | 0.27 | % | 0.21 | % | 0.30 | % | 0.27 | % |
(1) | Average outstanding balances include loans held for sale. |
As of December 31, | As of December, 31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | 2023 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 5,049 | 20.9 | % | $ | 5,579 | 24.1 | % | $ | 3,769 | 17.6 | % | $ | 4,049 | 19.1 | % | $ | 8,457 | 34.9 | % | $ | 15,808 | 37.3 | % | $ | 13,029 | 33.1 | % | $ | 17,245 | 41.0 | % | ||||||||||||||||||||||||||||||||
Commercial – specialized | 2,287 | 9.5 | 2,516 | 10.9 | 2,367 | 11.0 | 3,474 | 16.4 | 3,411 | 14.1 | 4,020 | 9.5 | % | 3,425 | 8.7 | % | 4,363 | 10.4 | % | |||||||||||||||||||||||||||||||||||||||||||||
Commercial – general | 9,609 | 39.7 | 8,173 | 35.3 | 10,151 | 47.3 | 9,589 | 45.3 | 9,117 | 37.7 | 6,391 | 15.1 | % | 9,215 | 23.5 | % | 8,466 | 20.1 | % | |||||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1-4 family residential | 2,093 | 8.6 | 2,249 | 9.6 | 1,787 | 8.3 | 1,555 | 7.4 | 1,619 | 6.6 | 9,177 | 21.7 | % | 6,194 | 15.8 | % | 5,268 | 12.5 | % | |||||||||||||||||||||||||||||||||||||||||||||
Auto loans | 3,385 | 14.0 | 2,994 | 12.9 | 2,068 | 9.7 | 1,272 | 6.0 | 715 | 3.0 | 3,601 | 8.5 | % | 3,926 | 10.0 | % | 3,653 | 8.7 | % | |||||||||||||||||||||||||||||||||||||||||||||
Other consumer | 1,341 | 5.5 | 1,192 | 5.2 | 971 | 4.5 | 1,083 | 5.1 | 752 | 3.1 | 968 | 2.3 | % | 1,376 | 3.5 | % | 1,357 | 3.2 | % | |||||||||||||||||||||||||||||||||||||||||||||
Construction | 433 | 1.8 | 423 | 1.8 | 348 | 1.6 | 152 | 0.7 | 149 | 0.6 | 2,391 | 5.6 | % | 2,123 | 5.4 | % | 1,746 | 4.1 | % | |||||||||||||||||||||||||||||||||||||||||||||
Total allowance for loan losses | $ | 24,197 | 100.0 | % | $ | 23,126 | 100.0 | % | $ | 21,461 | 100.0 | % | $ | 21,174 | 100.0 | % | $ | 24,220 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||
Total allowance for credit losses | $ | 42,356 | 100.0 | % | $ | 39,288 | 100.0 | % | $ | 42,098 | 100.0 | % |
Current | 30-89 Days Past Due | 90+ Days Past Due | Nonaccrual | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||
Commercial real estate | $ | 657,880 | 37 | 116 | 162 | 658,195 | ||||||||||||||
Commercial – specialized | 307,625 | 708 | — | 1,172 | 309,505 | |||||||||||||||
Commercial – general | 437,397 | 1,747 | — | 2,254 | 441,398 | |||||||||||||||
Consumer: | ||||||||||||||||||||
1-4 family residential | 359,547 | 1,212 | 932 | 1,105 | 362,796 | |||||||||||||||
Auto loans | 213,558 | 1,468 | 183 | — | 215,209 | |||||||||||||||
Other consumer | 73,031 | 848 | 121 | — | 74,000 | |||||||||||||||
Construction | 81,361 | 1,159 | — | — | 82,520 | |||||||||||||||
Total loans | $ | 2,130,399 | $ | 7,179 | $ | 1,352 | $ | 4,693 | $ | 2,143,623 |
Current | 30-89 Days Past Due | 90+ Days Past Due | Nonaccrual | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||
Commercial real estate | $ | 536,072 | $ | 1,748 | $ | — | $ | 217 | $ | 538,037 | ||||||||||
Commercial – specialized | 301,480 | 992 | — | 2,550 | 305,022 | |||||||||||||||
Commercial – general | 422,969 | 2,625 | — | 2,134 | 427,728 | |||||||||||||||
Consumer: | ||||||||||||||||||||
1-4 family residential | 342,613 | 1,611 | 440 | 1,489 | 346,153 | |||||||||||||||
Auto loans | 190,772 | 825 | 50 | — | 191,647 | |||||||||||||||
Other consumer | 69,252 | 883 | 74 | — | 70,209 | |||||||||||||||
Construction | 78,401 | — | — | — | 78,401 | |||||||||||||||
Total loans | $ | 1,941,559 | $ | 8,684 | $ | 564 | $ | 6,390 | $ | 1,957,197 |
As of December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Nonaccrual loans | $ | 4,693 | $ | 6,390 | $ | 12,704 | $ | 6,187 | $ | 8,046 | ||||||||||
Past due loans 90 days or more and still accruing | 1,352 | 564 | 1,197 | 1,008 | 759 | |||||||||||||||
Total nonperforming loans | 6,045 | 6,954 | 13,901 | 7,195 | 8,805 | |||||||||||||||
Other real estate owned | 1,883 | 2,285 | 2,830 | 7,849 | 7,681 | |||||||||||||||
Total nonperforming assets | $ | 7,928 | $ | 9,239 | $ | 16,731 | $ | 15,044 | $ | 16,486 | ||||||||||
Restructured loans - nonaccrual(1) | $ | 436 | $ | 494 | $ | 549 | $ | 671 | $ | 2,386 | ||||||||||
Restructured loans - accruing | $ | 1,804 | $ | 3,351 | $ | 3,592 | $ | 7,817 | $ | 9,906 | ||||||||||
Nonperforming loans to gross loans | 0.28 | % | 0.36 | % | 0.76 | % | 0.43 | % | 0.52 | % | ||||||||||
Nonperforming assets to total loans and OREO | 0.37 | % | 0.47 | % | 0.91 | % | 0.90 | % | 0.98 | % | ||||||||||
Allowance for loan losses to nonperforming loans | 400.28 | % | 332.56 | % | 154.38 | % | 294.29 | % | 275.07 | % | ||||||||||
Allowance for loan losses to gross loans | 1.13 | % | 1.18 | % | 1.17 | % | 1.27 | % | 1.44 | % | ||||||||||
Nonaccrual loans by category: | ||||||||||||||||||||
Commercial real estate | $ | 162 | $ | 217 | $ | 5,558 | $ | 662 | $ | 4,858 | ||||||||||
Commercial – specialized | 1,172 | 2,550 | 1,587 | 858 | 1,110 | |||||||||||||||
Commercial – general | 2,254 | 2,134 | 3,385 | 3,249 | 553 | |||||||||||||||
Consumer: | ||||||||||||||||||||
1-4 family residential | 1,105 | 1,489 | 2,088 | 1,293 | 1,475 | |||||||||||||||
Auto loans | — | — | 11 | 23 | 46 | |||||||||||||||
Other consumer | — | — | — | 7 | 4 | |||||||||||||||
Construction | — | — | 75 | 95 | — | |||||||||||||||
Total | $ | 4,693 | $ | 6,390 | $ | 12,704 | $ | 6,187 | $ | 8,046 |
Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||
Commercial real estate | $ | 632,641 | $ | 22,313 | $ | 3,241 | $ | — | $ | 658,195 | ||||||||||
Commercial – specialized | 307,239 | — | 2,266 | — | 309,505 | |||||||||||||||
Commercial – general | 428,155 | — | 13,243 | — | 441,398 | |||||||||||||||
Consumer: | ||||||||||||||||||||
1-4 family residential | 356,422 | — | 6,374 | — | 362,796 | |||||||||||||||
Auto loans | 214,363 | — | 846 | — | 215,209 | |||||||||||||||
Other consumer | 73,716 | — | 284 | — | 74,000 | |||||||||||||||
Construction | 82,520 | — | — | — | 82,520 | |||||||||||||||
Total | $ | 2,095,056 | $ | 22,313 | $ | 26,254 | $ | — | $ | 2,143,623 |
Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||
Commercial real estate | $ | 514,249 | $ | 17,300 | $ | 6,488 | $ | — | $ | 538,037 | ||||||||||
Commercial – specialized | 301,289 | — | 3,733 | — | 305,022 | |||||||||||||||
Commercial – general | 415,675 | 1,449 | 10,604 | — | 427,728 | |||||||||||||||
Consumer: | ||||||||||||||||||||
1-4 family residential | 340,836 | — | 5,317 | — | 346,153 | |||||||||||||||
Auto loans | 191,435 | — | 212 | — | 191,647 | |||||||||||||||
Other consumer | 70,075 | — | 134 | — | 70,209 | |||||||||||||||
Construction | 78,401 | — | — | — | 78,401 | |||||||||||||||
Total | $ | 1,911,960 | $ | 18,749 | $ | 26,488 | $ | — | $ | 1,957,197 |
Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||
Current | $ | 2,088,827 | $ | 22,313 | $ | 19,259 | $ | — | $ | 2,130,399 | ||||||||||
Past due 30 – 89 days | 6,140 | — | 1,039 | — | 7,179 | |||||||||||||||
Past due 90+ days | 89 | — | 1,263 | — | 1,352 | |||||||||||||||
Nonaccrual | — | — | 4,693 | — | 4,693 | |||||||||||||||
Total | $ | 2,095,056 | $ | 22,313 | $ | 26,254 | $ | — | $ | 2,143,623 | ||||||||||
December 31, 2018 | ||||||||||||||||||||
Current | $ | 1,905,405 | $ | 18,749 | $ | 17,405 | $ | — | $ | 1,941,559 | ||||||||||
Past due 30-89 days | 6,499 | — | 2,185 | — | 8,684 | |||||||||||||||
Past due 90+ days | 56 | — | 508 | — | 564 | |||||||||||||||
Nonaccrual | — | — | 6,390 | — | 6,390 | |||||||||||||||
Total | $ | 1,911,960 | $ | 18,749 | $ | 26,488 | $ | — | $ | 1,957,197 |
December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||
Amortized Cost | Fair Value | Unrealized Gain/(Loss) | Amortized Cost | Fair Value | Unrealized Gain/(Loss) | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||
U.S. government and agencies | $ | 4,750 | $ | 4,807 | $ | 57 | $ | 84,765 | $ | 84,707 | $ | (58 | ) | |||||||||||
State and municipal | 94,512 | 94,692 | 180 | 32,205 | 32,310 | 105 | ||||||||||||||||||
Mortgage-backed securities | 463,899 | 464,516 | 617 | 184,267 | 182,256 | (2,011 | ) | |||||||||||||||||
Collateralized mortgage obligations | 107,443 | 107,289 | (154 | ) | — | — | — | |||||||||||||||||
Asset-backed and other amortizing securities | 35,833 | 36,346 | 513 | 39,799 | 38,923 | (876 | ) | |||||||||||||||||
Total available-for-sale | $ | 706,437 | $ | 707,650 | $ | 1,213 | $ | 341,036 | $ | 338,196 | $ | (2,840 | ) |
As of December 31, 2019 | As of December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due in One Year or Less | Due after One Year Through Five Years | Due after Five Years Through Ten Years | Due after Ten Years | Due in One Year or Less | Due after One Year Through Five Years | Due after Five Years Through Ten Years | Due after Ten Years | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost | Weighted Average Yield | Amortized Cost | Weighted Average Yield | Amortized Cost | Weighted Average Yield | Amortized Cost | Weighted Average Yield | Amortized Cost | Weighted Average Yield | Amortized Cost | Weighted Average Yield | Amortized Cost | Weighted Average Yield | Amortized Cost | Weighted Average Yield | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government and agencies | $ | — | — | $ | 4,750 | 2.75 | $ | — | — | $ | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
State and municipal | 470 | 4.00 | 1,028 | 1.71 | 14,206 | 2.08 | 78,808 | 2.90 | $ | 735 | 3.65 | % | $ | 6,112 | 1.73 | % | $ | 4,897 | 2.15 | % | $ | 191,070 | 2.28 | % | ||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | — | — | 1,009 | 1.60 | 23,513 | 2.18 | 439,377 | 2.56 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage- backed securities | — | — | 3,038 | 2.02 | % | 920 | 2.91 | % | 347,293 | 2.20 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | — | — | — | 47,898 | 2.22 | % | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | — | — | — | — | — | — | 107,443 | 2.26 | — | — | — | — | 72,391 | 6.01 | % | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed and other amortizing securities | — | — | — | — | — | — | 35,833 | 2.82 | — | — | — | — | 2,359 | 3.07 | % | 16,117 | 2.79 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Other securities | — | — | — | — | 12,000 | 4.47 | % | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale | $ | 470 | 4.00 | % | $ | 6,787 | 2.42 | % | $ | 37,719 | 2.15 | % | $ | 661,461 | 2.56 | % | $ | 735 | 3.65 | % | $ | 9,150 | 1.83 | % | $ | 140,465 | 4.38 | % | $ | 554,480 | 2.24 | % |
December 31, 2023 | December 31, 2022 | |||||||||||||||
Amount | % of Total | Amount | % of Total | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Noninterest-bearing deposits | $ | 974,201 | 26.9 | % | $ | 1,150,488 | 33.8 | % | ||||||||
NOW and other transaction accounts | 562,066 | 15.5 | % | 350,910 | 10.3 | % | ||||||||||
Money market and other savings | 1,722,170 | 47.5 | % | 1,618,833 | 47.5 | % | ||||||||||
Time deposits | 367,716 | 10.1 | % | 286,199 | 8.4 | % | ||||||||||
Total deposits | $ | 3,626,153 | 100.0 | % | $ | 3,406,430 | 100.0 | % |
As of December 31, | ||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2023 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||
Average Balance | Weighted Average Rate | Average Balance | Weighted Average Rate | Average Balance | Weighted Average Rate | Average Balance | Weighted Average Rate | Average Balance | Weighted Average Rate | |||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 570,428 | — | $ | 495,808 | — | $ | 1,069,280 | — | % | $ | 1,189,730 | — | % | $ | 1,016,835 | — | % | ||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||||||
NOW and interest-bearing demand accounts | 266,991 | 0.35 | % | 272,676 | 0.37 | % | 401,075 | 2.93 | % | 352,791 | 0.59 | % | 355,274 | 0.03 | % | |||||||||||||||||||||||||
Savings accounts | 71,754 | 0.20 | % | 65,307 | 0.25 | % | 145,758 | 0.87 | % | 151,128 | 0.32 | % | 132,426 | 0.09 | % | |||||||||||||||||||||||||
Money market accounts | 1,109,575 | 1.38 | % | 1,048,188 | 1.13 | % | 1,571,152 | 2.70 | % | 1,385,969 | 0.75 | % | 1,353,978 | 0.29 | % | |||||||||||||||||||||||||
Time deposits | 319,811 | 1.89 | % | 313,298 | 1.45 | % | 321,205 | 2.98 | % | 327,289 | 1.22 | % | 329,509 | 1.25 | % | |||||||||||||||||||||||||
Total interest-bearing deposits | 1,768,131 | 1.27 | % | 1,699,469 | 1.03 | % | 2,439,190 | 2.66 | % | 2,217,177 | 0.77 | % | 2,171,187 | 0.38 | % | |||||||||||||||||||||||||
Total deposits | $ | 2,338,559 | 0.96 | % | $ | 2,195,277 | 0.80 | % | $ | 3,508,470 | 1.85 | % | $ | 3,406,907 | 0.50 | % | $ | 3,188,022 | 0.26 | % |
(Dollars in thousands) | Three Months | Three to Six Months | Six to 12 Months | After 12 Months | Total | |||||||||||||||
$ | 43,344 | $ | 43,359 | $ | 48,866 | $ | 133,535 | $ | 269,104 |
(Dollars in thousands) | Three Months | Three to Six Months | Six to 12 Months | After 12 Months | Total | |||||||||||||||
$ | 78,777 | $ | 14,934 | $ | 53,727 | $ | 11,694 | $ | 159,132 |
As of December 31, | ||||||||
2019 | 2018 | |||||||
(Dollars in thousands) | ||||||||
Amount outstanding at year-end | $ | 115,000 | $ | 95,000 | ||||
Weighted average interest rate at year-end | 1.64 | % | 2.27 | % | ||||
Maximum month-end balance during the year | $ | 115,000 | $ | 95,000 | ||||
Average balance outstanding during the year | $ | 95,055 | $ | 95,000 | ||||
Weighted average interest rate during the year | 2.13 | % | 1.88 | % |
Name of Trust | Issue Date | Amount of Trust Preferred Securities | Amount of Debentures | Stated Maturity Date of Trust Preferred Securities and Debentures(1) | Interest Rate of Trust Preferred Securities and Debentures(2)(3) | ||||||||||
(Dollars in thousands) | |||||||||||||||
South Plains Financial Capital Trust III | 2004 | $ | 10,000 | $ | 10,310 | 2034 | 3-mo. LIBOR + 265 bps; 4.58% | ||||||||
South Plains Financial Capital Trust IV | 2005 | 20,000 | 20,619 | 2035 | 33-mo. LIBOR + 139 bps; 3.28% | ||||||||||
South Plains Financial Capital Trust V | 2007 | 15,000 | 15,464 | 2037 | 3-mo. LIBOR + 150 bps; 3.39% | ||||||||||
Total | $ | 45,000 | $ | 46,393 |
Name of Trust | Issue Date | Amount of Trust Preferred Securities | Amount of Debentures | Stated Maturity Date of Trust Preferred Securities and Debentures(1) | Interest Rate of Trust Preferred Securities and Debentures(2)(3) | ||||||||||
(Dollars in thousands) | |||||||||||||||
South Plains Financial Capital Trust III | 2004 | $ | 10,000 | $ | 10,310 | 2034 | 3-mo. CME Term SOFR + 291 bps; 8.32% | ||||||||
South Plains Financial Capital Trust IV | 2005 | 20,000 | 20,619 | 2035 | 3-mo. CME Term SOFR + 165 bps; 7.04% | ||||||||||
South Plains Financial Capital Trust V | 2007 | 15,000 | 15,464 | 2037 | 3-mo. CME Term SOFR + 176 bps; 7.15% | ||||||||||
Total | $ | 45,000 | $ | 46,393 |
(1) | May be redeemed at the Company’s option. |
(2) | Interest payable quarterly with principal due at maturity. |
(3) | Rate as of last reset date, prior to December 31, 2023. |
Actual | Minimum Capital Requirement with Capital Buffer | Minimum To be Considered Well Capitalized | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
As of December 31, 2023: | ||||||||||||||||||||||||
Total capital (to risk-weighted assets) | ||||||||||||||||||||||||
Consolidated | $ | 589,565 | 16.74 | % | $ | 369,753 | 10.50 | % | N/A | N/A | ||||||||||||||
Bank | 494,353 | 14.04 | % | 369,635 | 10.50 | % | $ | 352,033 | 10.00 | % | ||||||||||||||
Tier 1 capital (to risk-weighted assets) | ||||||||||||||||||||||||
Consolidated | 482,044 | 13.69 | % | 299,324 | 8.50 | % | N/A | N/A | ||||||||||||||||
Bank | 450,607 | 12.80 | % | 299,228 | 8.50 | % | 281,627 | 8.00 | % | |||||||||||||||
CET 1 capital (to risk-weighted assets) | ||||||||||||||||||||||||
Consolidated | 437,044 | 12.41 | % | 246,502 | 7.00 | % | N/A | N/A | ||||||||||||||||
Bank | 450,607 | 12.80 | % | 246,423 | 7.00 | % | 228,822 | 6.50 | % | |||||||||||||||
Tier 1 capital (to average assets) | ||||||||||||||||||||||||
Consolidated | 482,044 | 11.33 | % | 171,037 | 4.00 | % | N/A | N/A | ||||||||||||||||
Bank | 450,607 | 10.60 | % | 170,945 | 4.00 | % | 212,594 | 5.00 | % |
Actual | Minimum Capital Requirement with Capital Buffer | Minimum To be Considered Well Capitalized | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
As of December 31, 2022: | ||||||||||||||||||||||||
Total capital (to risk-weighted assets) | ||||||||||||||||||||||||
Consolidated | $ | 559,094 | 16.58 | % | $ | 354,045 | 10.50 | % | N/A | N/A | ||||||||||||||
Bank | 454,427 | 13.48 | % | 353,967 | 10.50 | % | $ | 337,112 | 10.00 | % | ||||||||||||||
Tier 1 capital (to risk-weighted assets) | ||||||||||||||||||||||||
Consolidated | 443,265 | 13.15 | % | 286,608 | 8.50 | % | N/A | N/A | ||||||||||||||||
Bank | 414,559 | 12.30 | % | 286,545 | 8.50 | % | 269,689 | 8.00 | % | |||||||||||||||
CET 1 capital (to risk-weighted assets) | ||||||||||||||||||||||||
Consolidated | 398,265 | 11.81 | % | 236,030 | 7.00 | % | N/A | N/A | ||||||||||||||||
Bank | 414,559 | 12.30 | % | 235,978 | 7.00 | % | 219,122 | 6.50 | % | |||||||||||||||
Tier 1 capital (to average assets) | ||||||||||||||||||||||||
Consolidated | 443,265 | 11.03 | % | 161,662 | 4.00 | % | N/A | N/A | ||||||||||||||||
Bank | 414,559 | 10.32 | % | 161,574 | 4.00 | % | 200,774 | 5.00 | % |
Actual | Regulatory Capital Ratio Requirements | Minimum To be Considered “Well Capitalized” | Regulatory Capital Ratio Requirements, including fully phased- in Capital Conservation | |||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
As of December 31, 2019: | ||||||||||||||||||||||||||||||||
Total capital (to risk-weighted assets) | ||||||||||||||||||||||||||||||||
Consolidated | $ | 373,684 | 14.88 | % | $ | 263,769 | 10.50 | % | n/a | n/a | $ | 263,769 | 10.50 | % | ||||||||||||||||||
Bank | 368,322 | 14.67 | % | 263,702 | 10.50 | % | $ | 251,145 | 10.00 | % | 263,702 | 10.50 | % | |||||||||||||||||||
Tier 1 capital (to risk-weighted assets) | ||||||||||||||||||||||||||||||||
Consolidated | 322,835 | 12.85 | % | 213,527 | 8.50 | % | n/a | n/a | 213,527 | 8.50 | % | |||||||||||||||||||||
Bank | 343,945 | 13.70 | % | 213,473 | 8.50 | % | 200,916 | 8.00 | % | 213,473 | 8.50 | % | ||||||||||||||||||||
CET 1 capital (to risk-weighted assets) | ||||||||||||||||||||||||||||||||
Consolidated | 277,835 | 11.06 | % | 175,846 | 7.00 | % | n/a | n/a | 175,846 | 7.00 | % | |||||||||||||||||||||
Bank | 343,945 | 13.70 | % | 175,801 | 7.00 | % | 163,244 | 6.50 | % | 175,801 | 7.00 | % | ||||||||||||||||||||
Tier 1 capital (to average assets) | ||||||||||||||||||||||||||||||||
Consolidated | 322,835 | 10.74 | % | 120,219 | 4.00 | % | n/a | n/a | 120,219 | 4.00 | % | |||||||||||||||||||||
Bank | 343,945 | 11.45 | % | 121,235 | 4.00 | % | 150,175 | 5.00 | % | 121,235 | 4.00 | % |
Actual | Regulatory Capital Ratio Requirements | Minimum To be Considered “Well Capitalized” | Regulatory Capital Ratio Requirements, including fully phased- in Capital Conservation | |||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
As of December 31, 2018: | ||||||||||||||||||||||||||||||||
Total capital (to risk-weighted assets) | ||||||||||||||||||||||||||||||||
Consolidated | $ | 309,798 | 14.28 | % | $ | 214,301 | 9.90 | % | n/a | n/a | $ | 227,864 | 10.50 | % | ||||||||||||||||||
Bank | 294,572 | 13.58 | % | 214,246 | 9.90 | % | $ | 216,958 | 10.00 | % | 227,806 | 10.50 | % | |||||||||||||||||||
Tier 1 capital (to risk-weighted assets) | ||||||||||||||||||||||||||||||||
Consolidated | 260,020 | 11.98 | % | 170,898 | 7.90 | % | n/a | n/a | 184,462 | 8.50 | % | |||||||||||||||||||||
Bank | 271,266 | 12.50 | % | 170,855 | 7.90 | % | 173,567 | 8.00 | % | 184,415 | 8.50 | % | ||||||||||||||||||||
CET 1 capital (to risk-weighted assets) | ||||||||||||||||||||||||||||||||
Consolidated | 215,020 | 9.91 | % | 138,346 | 6.40 | % | n/a | n/a | 151,910 | 7.00 | % | |||||||||||||||||||||
Bank | 271,266 | 12.50 | % | 138,311 | 6.40 | % | 141,023 | 6.50 | % | 151,871 | 7.00 | % | ||||||||||||||||||||
Tier 1 capital (to average assets) | ||||||||||||||||||||||||||||||||
Consolidated | 260,020 | 9.63 | % | 108,033 | 4.00 | % | n/a | n/a | 108,033 | 4.00 | % | |||||||||||||||||||||
Bank | 271,266 | 10.05 | % | 107,940 | 4.00 | % | 134,925 | 5.00 | % | 107,940 | 4.00 | % |
Payments Due at December 31, 2019 | ||||||||||||||||||||
Within One Year | One to Three Years | Three to Five Years | After Five Years | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Time deposits | $ | 217,527 | $ | 93,029 | $ | 45,467 | $ | — | $ | 356,023 | ||||||||||
Short-term borrowings | 37,165 | — | — | — | 37,165 | |||||||||||||||
Notes payable and other long-term borrowings | 20,000 | — | — | 75,000 | 95,000 | |||||||||||||||
Subordinated debt securities | — | — | — | 26,472 | 26,472 | |||||||||||||||
Junior subordinated deferrable interest debentures | — | — | — | 46,393 | 46,393 | |||||||||||||||
Operating lease commitments | 1,613 | 2,687 | 1,721 | 4,367 | 10,388 | |||||||||||||||
Total contractual obligations | $ | 276,305 | $ | 95,716 | $ | 47,188 | $ | 152,232 | $ | 571,441 |
Payments Due at December 31, 2018 | ||||||||||||||||||||
Within One Year | One to Three Years | Three to Five Years | After Five Years | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Time deposits | $ | 163,101 | $ | 53,737 | $ | 94,676 | $ | 23 | $ | 311,537 | ||||||||||
Short-term borrowings | 17,705 | — | — | — | 17,705 | |||||||||||||||
Notes payable and other long-term borrowings | — | 20,000 | — | 75,000 | 95,000 | |||||||||||||||
Subordinated debt securities | 7,530 | — | — | 26,472 | 34,002 | |||||||||||||||
Junior subordinated deferrable interest debentures | — | — | — | 46,393 | 46,393 | |||||||||||||||
Operating lease commitments | 1,834 | 2,188 | 1,868 | 5,095 | 10,985 | |||||||||||||||
Total contractual obligations | $ | 190,170 | $ | 75,925 | $ | 96,544 | $ | 152,983 | $ | 515,622 |
December 31, | ||||||||
2019 | 2018 | |||||||
(Dollars in thousands) | ||||||||
Commitments to grant loans and unfunded commitments under lines of credit | $ | 409,969 | $ | 346,245 | ||||
Standby letters of credit | 10,748 | 5,062 | ||||||
Total | $ | 420,717 | $ | 351,307 |
As of December 31, | As of December 31, | ||||||||||||||||
2019 | 2018 | 2023 | 2022 | ||||||||||||||
Change in Interest Rates (Basis Points) | Percent Change in Net Interest Income | Percent Change in Net Interest Income | Percent Change in Net Interest Income | Percent Change in Net Interest Income | |||||||||||||
+300 | (2.44 | ) | (0.95 | ) | (10.02 | ) | (1.50 | ) | |||||||||
+200 | (1.40 | ) | (0.39 | ) | (6.59 | ) | (0.96 | ) | |||||||||
+100 | (0.71 | ) | 0.06 | (3.21 | ) | (0.61 | ) | ||||||||||
-100 | (0.23 | ) | (1.90 | ) | 3.35 | (1.50 | ) | ||||||||||
-200 | 6.86 | (2.81 | ) |
As of December 31, | As of December 31, | |||||||||||||||||||
2019 | 2018 | 2023 | 2022 | 2021 | ||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||
Total stockholders’ equity | $ | 306,182 | $ | 212,775 | $ | 407,114 | $ | 357,014 | $ | 407,427 | ||||||||||
Less: Goodwill and other intangibles | (27,389 | ) | — | (21,744 | ) | (23,857 | ) | (25,403 | ) | |||||||||||
Tangible common equity | $ | $ 278,793 | $ | 212,775 | $ | $ 385,370 | $ | 333,157 | $ | 382,024 | ||||||||||
Total assets | $ | 3,237,167 | $ | 2,712,745 | $ | 4,204,793 | $ | 3,944,063 | $ | 3,901,855 | ||||||||||
Less: Goodwill and other intangibles | (27,389 | ) | — | (21,744 | ) | (23,857 | ) | (25,403 | ) | |||||||||||
Tangible assets | $ | 3,209,778 | $ | 2,712,745 | $ | 4,183,049 | $ | 3,920,206 | $ | 3,876,452 | ||||||||||
Shares outstanding | 18,036,115 | 14,771,520 | 16,417,099 | 17,027,197 | 17,760,243 | |||||||||||||||
Total stockholders’ equity to total assets | 9.46 | % | 7.84 | % | 9.68 | % | 9.05 | % | 10.44 | % | ||||||||||
Tangible common equity to tangible assets | 8.69 | % | 7.84 | % | 9.21 | % | 8.50 | % | 9.85 | % | ||||||||||
Book value per share | $ | 16.98 | $ | 14.40 | $ | 24.80 | $ | 20.97 | $ | 22.94 | ||||||||||
Tangible book value per share | $ | 15.46 | $ | 14.40 | $ | 23.47 | $ | 19.57 | $ | 21.51 |
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk |
Page | ||
Report of Independent Registered Public Accounting Firm (PCAOB ID #686) | 1 | |
Report of Independent Registered Public Accounting Firm (PCAOB ID #410) | ||
Consolidated Financial Statements: | ||
Consolidated Balance Sheets | ||
Consolidated Statements of Comprehensive Income (Loss) | ||
Consolidated Statements of Changes in Stockholders’ Equity | ||
Consolidated Statements of Cash Flows | ||
Notes to Consolidated Financial Statements |
December 31, | ||||||||
2019 | 2018 | |||||||
ASSETS | (In thousands except per share data) | |||||||
Cash and due from banks | $ | 56,246 | $ | 47,802 | ||||
Interest-bearing deposits in banks | 101,853 | 198,187 | ||||||
Cash and cash equivalents | 158,099 | 245,989 | ||||||
Securities available for sale | 707,650 | 338,196 | ||||||
Loans held for sale | 49,035 | 38,382 | ||||||
Loans held for investment | 2,143,623 | 1,957,197 | ||||||
Allowance for loan losses | (24,197 | ) | (23,126 | ) | ||||
Accrued interest receivable | 13,924 | 12,957 | ||||||
Premises and equipment, net | 61,873 | 59,787 | ||||||
Bank-owned life insurance | 69,397 | 57,172 | ||||||
Goodwill | 18,757 | — | ||||||
Intangible assets, net | 8,632 | — | ||||||
Other assets | 30,374 | 26,191 | ||||||
Total assets | $ | 3,237,167 | $ | 2,712,745 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ | 790,921 | $ | 510,067 | ||||
Interest-bearing | 1,905,936 | 1,767,387 | ||||||
Total deposits | 2,696,857 | 2,277,454 | ||||||
Short-term borrowings | 37,165 | 17,705 | ||||||
Accrued expenses and other liabilities | 29,098 | 29,416 | ||||||
Notes payable & other borrowings | 95,000 | 95,000 | ||||||
Subordinated debt securities | 26,472 | 34,002 | ||||||
Junior subordinated deferrable interest debentures | 46,393 | 46,393 | ||||||
Total liabilities | 2,930,985 | 2,499,970 | ||||||
Commitments and contingent liabilities | ||||||||
ESOP owned shares | 58,195 | |||||||
Stockholders’ equity: | ||||||||
Common stock, $1 par value, 30,000,000 shares authorized; 18,036,115 issued in 2019 and 14,771,520 issued in 2018 | 18,036 | 14,772 | ||||||
Additional paid-in capital | 140,492 | 80,412 | ||||||
Retained earnings | 146,696 | 119,834 | ||||||
Accumulated other comprehensive income (loss) | 958 | (2,243 | ) | |||||
306,182 | 212,775 | |||||||
Less ESOP owned shares | — | 58,195 | ||||||
Total stockholders’ equity | 306,182 | 154,580 | ||||||
Total liabilities and stockholders’ equity | $ | 3,237,167 | $ | 2,712,745 |
December 31, | ||||||||
2023 | 2022 | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 62,821 | $ | 61,613 | ||||
Interest-bearing deposits in banks | 267,337 | 173,270 | ||||||
Cash and cash equivalents | 330,158 | 234,883 | ||||||
Securities available for sale | 622,762 | 701,711 | ||||||
Loans held for sale ($6,615 and $10,038 at fair value at December 31, 2023 and 2022, respectively) | 14,499 | 30,403 | ||||||
Loans held for investment | 3,014,153 | 2,748,081 | ||||||
Allowance for credit losses on loans | (42,356 | ) | (39,288 | ) | ||||
Loans held for investment, net | 2,971,797 | 2,708,793 | ||||||
Accrued interest receivable | 20,881 | 16,432 | ||||||
Premises and equipment, net | 55,070 | 56,337 | ||||||
Bank-owned life insurance | 74,504 | 73,174 | ||||||
Goodwill | 19,315 | 19,508 | ||||||
Intangible assets, net | 2,429 | 4,349 | ||||||
Mortgage servicing rights | 26,569 | 27,474 | ||||||
Deferred tax asset, net | 19,413 | 22,818 | ||||||
Other assets | 47,396 | 48,181 | ||||||
Total assets | $ | 4,204,793 | $ | 3,944,063 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ | 974,201 | $ | 1,150,488 | ||||
Interest-bearing | 2,651,952 | 2,255,942 | ||||||
Total deposits | 3,626,153 | 3,406,430 | ||||||
Accrued expenses and other liabilities | 61,358 | 58,265 | ||||||
Subordinated debt | 63,775 | 75,961 | ||||||
Junior subordinated deferrable interest debentures | 46,393 | 46,393 | ||||||
Total liabilities | 3,797,679 | 3,587,049 | ||||||
Stockholders’ equity: | ||||||||
Common stock, $1 par value, 30,000,000 shares authorized; 16,417,099 issued in 2023 and 17,027,197 issued in 2022 | 16,417 | 17,027 | ||||||
Additional paid-in capital | 97,107 | 112,834 | ||||||
Retained earnings | 345,264 | 292,261 | ||||||
Accumulated other comprehensive loss | (51,674 | ) | (65,108 | ) | ||||
Total stockholders’ equity | 407,114 | 357,014 | ||||||
Total liabilities and stockholders’ equity | $ | 4,204,793 | $ | 3,944,063 |
Years Ended December 31, | ||||||||
2019 | 2018 | |||||||
(In thousands except per share data) | ||||||||
Interest income: | ||||||||
Loans, including fees | $ | 116,904 | $ | 105,710 | ||||
Securities: | ||||||||
Taxable | 8,890 | 5,577 | ||||||
Non taxable | 1,018 | 2,872 | ||||||
Federal funds sold and interest-bearing deposits in banks | 6,130 | 3,935 | ||||||
Total interest income | 132,942 | 118,094 | ||||||
Interest expense: | ||||||||
Deposits | 22,491 | 17,561 | ||||||
Notes payable & other borrowings | 2,314 | 2,051 | ||||||
Subordinated debt securities | 1,616 | 1,046 | ||||||
Junior subordinated deferrable interest debentures | 1,946 | 1,824 | ||||||
Total interest expense | 28,367 | 22,482 | ||||||
Net interest income | 104,575 | 95,612 | ||||||
Provision for loan losses | 2,799 | 6,901 | ||||||
Net interest income, after provision for loan losses | 101,776 | 88,711 | ||||||
Noninterest income: | ||||||||
Service charges on deposit accounts | 8,129 | 7,813 | ||||||
Income from insurance activities | 7,016 | 7,128 | ||||||
Net gain on sales of loans | 23,521 | 19,703 | ||||||
Bank card services and interchange fees | 8,692 | 8,845 | ||||||
Investment commissions | 1,710 | 1,779 | ||||||
Fiduciary fees | 2,306 | 1,442 | ||||||
Other | 5,259 | 5,411 | ||||||
Total noninterest income | 56,633 | 52,121 | ||||||
Noninterest expense: | ||||||||
Salaries and employee benefits | 75,392 | 71,778 | ||||||
Occupancy and equipment, net | 13,572 | 13,571 | ||||||
Professional services | 7,334 | 6,734 | ||||||
Marketing and development | 3,017 | 3,050 | ||||||
IT and data services | 2,830 | 2,233 | ||||||
Bank card expenses | 3,346 | 2,743 | ||||||
Appraisal expenses | 1,625 | 1,353 | ||||||
Other | 14,592 | 13,981 | ||||||
Total noninterest expense | 121,708 | 115,443 | ||||||
Income before income taxes | 36,701 | 25,389 | ||||||
Income tax expense (benefit) | 7,481 | (3,901 | ) | |||||
Net income | $ | 29,220 | $ | 29,290 |
Years Ended December 31, | ||||||||
2019 | 2018 | |||||||
(In thousands except per share data) | ||||||||
Earnings per share: | ||||||||
Basic | $ | 1.74 | $ | 1.98 | ||||
Diluted | $ | 1.71 | $ | 1.98 | ||||
Net income | $ | 29,220 | $ | 29,290 | ||||
Other comprehensive income (loss): | ||||||||
Change in net unrealized loss on securities available for sale | 4,025 | (1,773 | ) | |||||
Reclassification adjustment for (gain) loss included in net income | 28 | (620 | ) | |||||
Tax effect | (852 | ) | 596 | |||||
Other comprehensive income (loss) | 3,201 | (1,797 | ) | |||||
Comprehensive income | $ | 32,421 | $ | 27,493 |
Year Ended December 31, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Interest income: | ||||||||||||
Loans, including fees | $ | 176,598 | $ | 137,954 | $ | 120,540 | ||||||
Securities: | ||||||||||||
Taxable | 21,590 | 15,010 | 9,445 | |||||||||
Non taxable | 3,872 | 4,529 | 4,639 | |||||||||
Federal funds sold and interest-bearing deposits in banks | 9,973 | 3,675 | 412 | |||||||||
Total interest income | 212,033 | 161,168 | 135,036 | |||||||||
Interest expense: | ||||||||||||
Deposits | 64,987 | 17,002 | 8,293 | |||||||||
Notes payable & other borrowings | 5 | — | 43 | |||||||||
Subordinated debt | 4,018 | 4,050 | 4,056 | |||||||||
Junior subordinated deferrable interest debentures | 3,276 | 1,640 | 880 | |||||||||
Total interest expense | 72,286 | 22,692 | 13,272 | |||||||||
Net interest income | 139,747 | 138,476 | 121,764 | |||||||||
Provision for credit losses | 4,610 | (2,619 | ) | (1,918 | ) | |||||||
Net interest income, after provision for credit losses | 135,137 | 141,095 | 123,682 | |||||||||
Noninterest income: | ||||||||||||
Service charges on deposit accounts | 7,130 | 6,829 | 6,963 | |||||||||
Income from insurance activities | 1,515 | 10,826 | 8,314 | |||||||||
Net gain on sales of loans | 11,027 | 20,764 | 51,184 | |||||||||
Bank card services and interchange fees | 13,323 | 12,946 | 12,239 | |||||||||
Other mortgage banking income | 2,790 | 10,606 | 8,542 | |||||||||
Investment commissions | 1,698 | 1,825 | 1,934 | |||||||||
Fiduciary fees | 2,433 | 2,390 | 2,917 | |||||||||
Gain on sale of subsidiary | 33,778 | — | — | |||||||||
Other | 5,532 | 9,959 | 5,376 | |||||||||
Total noninterest income | 79,226 | 76,145 | 97,469 | |||||||||
Noninterest expense: | ||||||||||||
Salaries and employee benefits | 79,377 | 86,323 | 93,360 | |||||||||
Occupancy and equipment, net | 16,102 | 15,987 | 14,560 | |||||||||
Professional services | 6,433 | 9,740 | 6,752 | |||||||||
Marketing and development | 3,453 | 3,614 | 3,225 | |||||||||
IT and data services | 3,410 | 3,780 | 4,007 | |||||||||
Bank card expenses | 5,557 | 5,376 | 4,995 | |||||||||
Appraisal expenses | 1,087 | 1,747 | 3,248 | |||||||||
Realized loss on sale of securities | 3,409 | — | — | |||||||||
Other | 16,118 | 17,522 | 17,883 | |||||||||
Total noninterest expense | 134,946 | 144,089 | 148,030 | |||||||||
Income before income taxes | 79,417 | 73,151 | 73,121 | |||||||||
Income tax expense | 16,672 | 14,911 | 14,507 | |||||||||
Net income | $ | 62,745 | $ | 58,240 | $ | 58,614 |
Year Ended December 31, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Earnings per share: | ||||||||||||
Basic | $ | 3.73 | $ | 3.35 | $ | 3.26 | ||||||
Diluted | $ | 3.62 | $ | 3.23 | $ | 3.17 | ||||||
Net income | $ | 62,745 | $ | 58,240 | $ | 58,614 | ||||||
Other comprehensive income (loss): | ||||||||||||
Unrealized gains (losses) on securities available for sale | 17,282 | (114,367 | ) | (15,479 | ) | |||||||
Less: Change in fair value on hedged state and municipal securities | (3,686 | ) | 14,607 | 5,812 | ||||||||
Reclassification adjustment for loss on sale of securities | 3,409 | — | — | |||||||||
Tax effect | (3,571 | ) | 20,950 | 2,030 | ||||||||
Other comprehensive income (loss) | 13,434 | (78,810 | ) | (7,637 | ) | |||||||
Comprehensive income (loss) | $ | 76,179 | $ | (20,570 | ) | $ | 50,977 |
Common Stock | Additional Paid-in | Retained | Accumulated Other Comprehensive | Unearned ESOP | Treasury | Less: ESOP Owned | ||||||||||||||||||||||||||||||
Shares | Amount | Capital | Earnings | Income (Loss) | Shares | Stock | Shares | Total | ||||||||||||||||||||||||||||
(In thousands, except share data) | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | 15,153,510 | $ | 15,154 | $ | 85,888 | $ | 120,589 | $ | (446 | ) | $ | — | $ | (5,858 | ) | $ | (57,121 | ) | $ | 158,206 | ||||||||||||||||
Net income | — | — | — | 29,290 | — | — | — | — | 29,290 | |||||||||||||||||||||||||||
Cash dividends: | ||||||||||||||||||||||||||||||||||||
Common - $2.03 per share | — | — | — | (30,045 | ) | — | — | — | — | (30,045 | ) | |||||||||||||||||||||||||
Other comprehensive (loss), (net of tax) | — | — | — | — | (1,797 | ) | — | — | — | (1,797 | ) | |||||||||||||||||||||||||
Net change in value of ESOP shares | — | — | — | — | — | — | — | (1,074 | ) | (1,074 | ) | |||||||||||||||||||||||||
Extinguish treasury stock | (381,990 | ) | (382 | ) | (5,476 | ) | — | — | — | 5,858 | — | — | ||||||||||||||||||||||||
Balance at December 31, 2018 | 14,771,520 | 14,772 | 80,412 | 119,834 | (2,243 | ) | — | — | (58,195 | ) | 154,580 | |||||||||||||||||||||||||
Issuance of common stock, net | 3,207,000 | 3,207 | 48,185 | — | — | — | — | — | 51,392 | |||||||||||||||||||||||||||
Net income | — | — | — | 29,220 | — | — | — | — | 29,220 | |||||||||||||||||||||||||||
Cash dividends: | ||||||||||||||||||||||||||||||||||||
Common - $0.06 per share | — | — | — | (1,079 | ) | — | — | — | — | (1,079 | ) | |||||||||||||||||||||||||
Other comprehensive income, (net of tax) | — | — | — | — | 3,201 | — | — | — | 3,201 | |||||||||||||||||||||||||||
Terminated ESOP put option | — | — | — | — | — | — | — | 58,195 | 58,195 | |||||||||||||||||||||||||||
Exercise of employee stock options, net of 111,011 shares for cashless exercise and net of 18,894 shares for taxes | 57,595 | 57 | (408 | ) | — | — | — | — | — | (351 | ) | |||||||||||||||||||||||||
Stock-based compensation | — | — | 853 | — | — | — | — | — | 853 | |||||||||||||||||||||||||||
Share-based liability awards modified to equity awards | — | — | 11,450 | — | — | — | — | — | 11,450 | |||||||||||||||||||||||||||
Cumulative change in accounting principle | — | — | — | (1,279 | ) | — | — | — | — | (1,279 | ) | |||||||||||||||||||||||||
Balance at December 31, 2019 | 18,036,115 | $ | 18,036 | $ | 140,492 | $ | 146,696 | $ | 958 | $ | — | $ | — | $ | — | $ | 306,182 |
Years Ended December 31, | ||||||||
2019 | 2018 | |||||||
(In thousands except per share data) | ||||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 29,220 | $ | 29,290 | ||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||
Provision for loan losses | 2,799 | 6,901 | ||||||
Provision for foreclosed asset losses | — | 285 | ||||||
Depreciation and amortization | 5,225 | 5,185 | ||||||
Accretion and amortization | 252 | 1,305 | ||||||
Other gains, net | 40 | (788 | ) | |||||
Net gain on sales of loans | (23,521 | ) | (19,703 | ) | ||||
Proceeds from sales of loans held for sale | 653,548 | 555,325 | ||||||
Loans originated for sale | (640,680 | ) | (544,690 | ) | ||||
Earnings on bank-owned life insurance | (1,293 | ) | (1,282 | ) | ||||
Stock-based compensation | 853 | — | ||||||
Net change in: | ||||||||
Accrued interest receivable and other assets | (2,336 | ) | (8,187 | ) | ||||
Accrued expenses and other liabilities | 6,377 | 3,279 | ||||||
Net cash from operating activities | 30,484 | 26,920 | ||||||
Cash flows from investing activities: | ||||||||
Activity in securities available for sale: | ||||||||
Purchases | (489,032 | ) | (539,091 | ) | ||||
Sales | 52,495 | 102,332 | ||||||
Maturities, prepayments, and calls | 139,255 | 364,909 | ||||||
Maturities, prepayments, and calls of held to maturity securities | — | 14,675 | ||||||
Loan originations and principal collections, net | 5,572 | (126,732 | ) | |||||
Net cash received in business combinations | 78,171 | — | ||||||
Purchases of premises and equipment, net | (3,997 | ) | (3,134 | ) | ||||
Proceeds from sales of premises and equipment | 208 | 126 | ||||||
Proceeds from sales of foreclosed assets | 3,835 | 2,823 | ||||||
Net cash from investing activities | (213,493 | ) | (184,092 | ) | ||||
Cash flows from financing activities: | ||||||||
Net change in deposits | 33,227 | 123,373 | ||||||
Net change in short-term borrowings | 19,460 | 2,155 | ||||||
Proceeds from common stock issuance, net | 51,392 | — | ||||||
Payments to tax authorities for stock-based compensation | (351 | ) | — | |||||
Proceeds from notes payable and other borrowings | — | 13,115 | ||||||
Payments made on notes payable and other borrowings | (7,530 | ) | — | |||||
Cash dividends on common stock | (1,079 | ) | (30,045 | ) | ||||
Net cash from financing activities | 95,119 | 108,598 | ||||||
Net change in cash and cash equivalents | $ | (87,890 | ) | $ | (48,574 | ) | ||
Beginning cash and cash equivalents | 245,989 | 294,563 | ||||||
Ending cash and cash equivalents | $ | 158,099 | $ | 245,989 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Interest paid on deposits and borrowed funds | $ | 28,125 | $ | 22,024 | ||||
Income taxes paid | 6,474 | 2,729 | ||||||
Supplemental schedule of noncash investing and financing activities: | ||||||||
Loans transferred to foreclosed assets | 2,452 | 6,473 | ||||||
Financed foreclosed asset sales | — | 4,019 |
Common Stock | Additional Paid-in | Retained | Accumulated Other Comprehensive | |||||||||||||||||||||
Shares | Amount | Capital | Earnings | Income (Loss) | Total | |||||||||||||||||||
Balance at December 31, 2020 | 18,076,364 | $ | 18,076 | $ | 141,112 | $ | 189,521 | $ | 21,339 | $ | 370,048 | |||||||||||||
Net income | — | — | — | 58,614 | — | 58,614 | ||||||||||||||||||
Cash dividends declared - $0.30 per share | — | — | — | (5,385 | ) | — | (5,385 | ) | ||||||||||||||||
Other comprehensive loss | — | — | — | — | (7,637 | ) | (7,637 | ) | ||||||||||||||||
Issuance of stock related to stock-based awards, net of 82,004 shares for cashless exercise and net of 23,559 shares for taxes | 77,408 | 77 | (702 | ) | — | — | (625 | ) | ||||||||||||||||
Repurchases of common stock | (393,529 | ) | (393 | ) | (8,834 | ) | — | — | (9,227 | ) | ||||||||||||||
Stock based compensation | — | — | 1,639 | — | — | 1,639 | ||||||||||||||||||
Balance at December 31, 2021 | 17,760,243 | 17,760 | 133,215 | 242,750 | 13,702 | 407,427 | ||||||||||||||||||
Net income | — | — | — | 58,240 | — | 58,240 | ||||||||||||||||||
Cash dividends declared - $0.46 per share | — | — | — | (8,012 | ) | — | (8,012 | ) | ||||||||||||||||
Other comprehensive loss | — | — | — | — | (78,810 | ) | (78,810 | ) | ||||||||||||||||
Impact of adoption of Topic 842 related to leases | — | — | — | (717 | ) | — | (717 | ) | ||||||||||||||||
Issuance of stock related to stock-based awards, net of 141,762 shares for cashless exercise and net of 42,386 shares for taxes | 126,756 | 127 | (1,295 | ) | — | — | (1,168 | ) | ||||||||||||||||
Repurchases of common stock | (859,802 | ) | (860 | ) | (21,839 | ) | — | — | (22,699 | ) | ||||||||||||||
Stock-based compensation | — | — | 2,753 | — | — | 2,753 | ||||||||||||||||||
Balance at December 31, 2022 | 17,027,197 | 17,027 | 112,834 | 292,261 | (65,108 | ) | 357,014 | |||||||||||||||||
Net income | — | — | — | 62,745 | — | 62,745 | ||||||||||||||||||
Cash dividends declared - $0.52 per share | — | — | — | (8,745 | ) | — | (8,745 | ) | ||||||||||||||||
Other comprehensive income | — | — | — | — | 13,434 | 13,434 | ||||||||||||||||||
Impact of adoption of ASU 2016-13 - CECL | — | — | — | (997 | ) | — | (997 | ) | ||||||||||||||||
Issuance of stock related to stock-based awards, net of 52,631 shares for cashless exercise and net of 27,262 shares for taxes | 75,540 | 76 | (807 | ) | — | — | (731 | ) | ||||||||||||||||
Repurchases of common stock | (685,638 | ) | (686 | ) | (17,077 | ) | — | — | (17,763 | ) | ||||||||||||||
Stock-based compensation | — | — | 2,157 | — | — | 2,157 | ||||||||||||||||||
Balance at December 31, 2023 | 16,417,099 | $ | 16,417 | $ | 97,107 | $ | 345,264 | $ | (51,674 | ) | $ | 407,114 |
Year Ended December 31, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 62,745 | $ | 58,240 | $ | 58,614 | ||||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||||||
Provision for credit losses | 4,610 | (2,619 | ) | (1,918 | ) | |||||||
Provision for foreclosed asset losses | 142 | — | — | |||||||||
Depreciation and amortization | 6,412 | 6,965 | 6,436 | |||||||||
Accretion and amortization | 3,381 | 4,072 | 4,513 | |||||||||
Other gains, net | (275 | ) | (166 | ) | (729 | ) | ||||||
Gain on sale of subsidiary | (33,778 | ) | — | — | ||||||||
Loss on sale of securities | 3,409 | — | — | |||||||||
Net gain on sales of loans | (11,027 | ) | (20,764 | ) | (51,184 | ) | ||||||
Proceeds from sales of loans held for sale | 347,583 | 662,294 | 1,513,961 | |||||||||
Loans originated for sale | (322,122 | ) | (598,495 | ) | (1,437,003 | ) | ||||||
Deferred income tax expense | 99 | 1,359 | 1,453 | |||||||||
Earnings on bank-owned life insurance | (1,330 | ) | (1,196 | ) | (1,247 | ) | ||||||
Stock-based compensation | 2,157 | 2,753 | 1,639 | |||||||||
Change in valuation of mortgage servicing rights | 2,375 | (4,705 | ) | (1,455 | ) | |||||||
Net change in: | ||||||||||||
Accrued interest receivable and other assets | (8,502 | ) | (1,067 | ) | 3,382 | |||||||
Accrued expenses and other liabilities | 2,660 | 16,919 | (191 | ) | ||||||||
Net cash provided by operating activities | 58,539 | 123,590 | 96,271 | |||||||||
Cash flows from investing activities: | ||||||||||||
Activity in securities available for sale: | ||||||||||||
Purchases | (199,898 | ) | (176,713 | ) | (61,548 | ) | ||||||
Sales | 52,828 | — | — | |||||||||
Maturities, prepayments, and calls | 240,106 | 81,253 | 120,325 | |||||||||
Loan originations and principal collections, net | (270,196 | ) | (311,459 | ) | (218,458 | ) | ||||||
Purchases of premises and equipment | (4,681 | ) | (4,469 | ) | (2,920 | ) | ||||||
Proceeds from sales of premises and equipment | 968 | 480 | 1,458 | |||||||||
Proceeds from sale of subsidiary | 36,080 | — | — | |||||||||
Proceeds from sales of foreclosed assets | 1,417 | 2,051 | 1,302 | |||||||||
Net cash used in investing activities | (143,376 | ) | (408,857 | ) | (159,841 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Net change in deposits | 219,723 | 65,208 | 366,871 | |||||||||
Net change in short-term borrowings | — | — | (26,550 | ) | ||||||||
Payments to tax authorities for stock-based compensation | (731 | ) | (1,168 | ) | (625 | ) | ||||||
Payments made on notes payable and other borrowings | — | — | (75,000 | ) | ||||||||
Payments made on subordinated debt | (12,372 | ) | — | — | ||||||||
Cash dividends paid on common stock | (8,745 | ) | (8,012 | ) | (5,385 | ) | ||||||
Payments to repurchase common stock | (17,763 | ) | (22,699 | ) | (9,227 | ) | ||||||
Net cash provided by financing activities | 180,112 | 33,329 | 250,084 | |||||||||
Net change in cash and cash equivalents | $ | 95,275 | $ | (251,938 | ) | $ | 186,514 | |||||
Beginning cash and cash equivalents | 234,883 | 486,821 | 300,307 | |||||||||
Ending cash and cash equivalents | $ | 330,158 | $ | 234,883 | $ | 486,821 | ||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Interest paid on deposits and borrowed funds | $ | 70,065 | $ | 21,770 | $ | 13,471 | ||||||
Income taxes paid | 19,388 | 13,835 | 12,400 | |||||||||
Supplemental schedule of noncash activities: | ||||||||||||
Loans transferred to foreclosed assets | 2,130 | 764 | 927 | |||||||||
Premises and equipment transferred to foreclosed assets | 172 | — | — | |||||||||
Additions to mortgage servicing rights | 1,470 | 3,069 | 9,196 |
1. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
City Bank | Bank |
Ruidoso Retail, Inc. | Non-bank subsidiary |
CB Provence, LLC | Non-bank subsidiary |
CBT Brushy Creek, LLC | Non-bank subsidiary |
CBT Properties, LLC | Non-bank subsidiary |
South Plains Financial Capital Trusts | Non-bank subsidiaries |
(Dollars in thousands) | January 1, 2023 | |||||||||||
Pre-Adoption | Impact of Adoption | Post-Adoption | ||||||||||
Commercial real estate | $ | 13,029 | $ | 827 | $ | 13,856 | ||||||
Commercial – specialized | 3,425 | 33 | 3,458 | |||||||||
Commercial - general | 9,215 | (2,574 | ) | 6,641 | ||||||||
Consumer: | ||||||||||||
1-4 family residential | 6,194 | 1,700 | 7,894 | |||||||||
Auto loans | 3,926 | (332 | ) | 3,594 | ||||||||
Other consumer | 1,376 | (235 | ) | 1,141 | ||||||||
Construction | 2,123 | 683 | 2,806 | |||||||||
Total allowance for credit losses on loans | $ | 39,288 | $ | 102 | $ | 39,390 | ||||||
Allowance for credit losses for off-balance sheet exposures | $ | 580 | $ | 1,160 | $ | 1,740 |
2. | SECURITIES |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses | Fair Value | ||||||||||||||||
December 31, 2023 | ||||||||||||||||||||
Available for sale: | ||||||||||||||||||||
State and municipal | $ | 202,814 | $ | 2 | $ | (22,241 | ) | $ | — | $ | 180,575 | |||||||||
Residential mortgage-backed securities | 351,251 | — | (50,547 | ) | — | 300,704 | ||||||||||||||
Commercial mortgage-backed securities | 47,898 | — | (6,150 | ) | — | 41,748 | ||||||||||||||
Commercial collateralized mortgage obligations | 72,391 | — | (461 | ) | — | 71,930 | ||||||||||||||
Asset-backed and other amortizing securities | 18,476 | — | (1,436 | ) | — | 17,040 | ||||||||||||||
Other securities | 12,000 | — | (1,235 | ) | — | 10,765 | ||||||||||||||
$ | 704,830 | $ | 2 | $ | (82,070 | ) | $ | — | $ | 622,762 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
December 31, 2022 | ||||||||||||||||
Available for sale: | ||||||||||||||||
State and municipal | $ | 259,429 | $ | 27 | $ | (34,401 | ) | $ | 225,055 | |||||||
Residential mortgage-backed securities | 386,783 | — | (57,938 | ) | 328,845 | |||||||||||
Commercial mortgage-backed securities | 49,161 | — | (7,194 | ) | 41,967 | |||||||||||
Commercial collateralized mortgage obligations | 76,189 | — | (551 | ) | 75,638 | |||||||||||
Asset-backed and other amortizing securities | 20,907 | — | (1,813 | ) | 19,094 | |||||||||||
Other securities | 12,000 | — | (888 | ) | 11,112 | |||||||||||
$ | 804,469 | $ | 27 | $ | (102,785 | ) | $ | 701,711 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
2019 | ||||||||||||||||
Available for sale: | ||||||||||||||||
U.S. government and agencies | $ | 4,750 | $ | 57 | $ | — | $ | 4,807 | ||||||||
State and municipal | 94,512 | 1,091 | (911 | ) | 94,692 | |||||||||||
Mortgage-backed securities | 463,899 | 3,727 | (3,110 | ) | 464,516 | |||||||||||
Collateralized mortgage obligations | 107,443 | 15 | (169 | ) | 107,289 | |||||||||||
Asset-backed and other amortizing securities | 35,833 | 522 | (9 | ) | 36,346 | |||||||||||
$ | 706,437 | $ | 5,412 | $ | (4,199 | ) | $ | 707,650 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
2018 | ||||||||||||||||
Available for sale: | ||||||||||||||||
U.S. government and agencies | $ | 84,765 | $ | 18 | $ | (76 | ) | $ | 84,707 | |||||||
State and municipal | 32,205 | 480 | (375 | ) | 32,310 | |||||||||||
Mortgage-backed securities | 184,267 | 29 | (2,040 | ) | 182,256 | |||||||||||
Asset-backed and other amortizing securities | 39,799 | 1 | (877 | ) | 38,923 | |||||||||||
$ | 341,036 | $ | 528 | $ | (3,368 | ) | $ | 338,196 |
Available for Sale | ||||||||
Amortized Cost | Fair Value | |||||||
Within 1 year | $ | 735 | $ | 735 | ||||
After 1 year through 5 years | 6,112 | 5,940 | ||||||
After 5 years through 10 years | 16,897 | 15,640 | ||||||
After 10 years | 191,070 | 169,024 | ||||||
Declining-balance securities | 490,016 | 431,423 | ||||||
$ | 704,830 | $ | 622,762 |
Available for Sale | ||||||||
Amortized Cost | Fair Value | |||||||
Within 1 year | $ | 470 | $ | 472 | ||||
After 1 year through 5 years | 5,778 | 5,842 | ||||||
After 5 years through 10 years | 14,206 | 14,472 | ||||||
After 10 years | 78,808 | 78,713 | ||||||
Other | 607,175 | 608,151 | ||||||
$ | 706,437 | $ | 707,650 |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | |||||||||||||||||||
2019 | ||||||||||||||||||||||||
U.S. government and agencies | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
State and municipal | 58,389 | 910 | 387 | 1 | 58,776 | 911 | ||||||||||||||||||
Mortgage-backed securities | 284,120 | 3,071 | 4,661 | 40 | 288,781 | 3,111 | ||||||||||||||||||
Collateralized mortgage obligations | 60,039 | 168 | — | — | 60,039 | 168 | ||||||||||||||||||
Asset-backed and other amortizing securities | 2,661 | 9 | — | — | 2,661 | 9 | ||||||||||||||||||
$ | 405,209 | $ | 4,158 | $ | 5,048 | $ | 41 | $ | 410,257 | $ | 4,199 | |||||||||||||
2018 | ||||||||||||||||||||||||
U.S. government and agencies | $ | 77,891 | $ | 27 | $ | 2,048 | $ | 49 | $ | 79,939 | $ | 76 | ||||||||||||
State and municipal | 5,662 | 92 | 9,781 | 283 | 15,443 | 375 | ||||||||||||||||||
Mortgage-backed securities | 108,962 | 293 | 54,035 | 1,747 | 162,997 | 2,040 | ||||||||||||||||||
Asset-backed and other amortizing securities | – | – | 37,351 | 877 | 37,351 | 877 | ||||||||||||||||||
$ | 192,515 | $ | 412 | $ | 103,215 | $ | 2,956 | $ | 295,730 | $ | 3,368 |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | |||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||||||
State and municipal | $ | 207 | $ | — | $ | 177,908 | $ | 22,241 | $ | 178,115 | $ | 22,241 | ||||||||||||
Mortgage-backed securities - residential | 9 | — | 300,695 | 50,547 | 300,704 | 50,547 | ||||||||||||||||||
Mortgage-backed securities - commercial | — | — | 41,748 | 6,150 | 41,748 | 6,150 | ||||||||||||||||||
Collateralized mortgage obligations | — | — | 71,930 | 461 | 71,930 | 461 | ||||||||||||||||||
Asset-backed and other amortizing securities | — | — | 17,040 | 1,436 | 17,040 | 1,436 | ||||||||||||||||||
Other securities | 3,286 | 214 | 7,479 | 1,021 | 10,765 | 1,235 | ||||||||||||||||||
$ | 3,502 | $ | 214 | $ | 616,800 | $ | 81,856 | $ | 620,302 | $ | 82,070 |
December 31, 2022 | ||||||||||||||||||||||||
State and municipal | $ | 162,746 | $ | 23,538 | $ | 57,675 | $ | 10,863 | $ | 220,421 | $ | 34,401 | ||||||||||||
Mortgage-backed securities - residential | 220,752 | 27,967 | 108,080 | 29,971 | 328,832 | 57,938 | ||||||||||||||||||
Mortgage-backed securities - commercial | 41,966 | 7,194 | — | — | 41,966 | 7,194 | ||||||||||||||||||
Collateralized mortgage obligations | 75,638 | 551 | — | — | 75,638 | 551 | ||||||||||||||||||
Asset-backed and other amortizing securities | 19,094 | 1,813 | — | — | 19,094 | 1,813 | ||||||||||||||||||
Other securities | 11,112 | 888 | — | — | 11,112 | 888 | ||||||||||||||||||
$ | 531,308 | $ | 61,951 | $ | 165,755 | $ | 40,834 | $ | 697,063 | $ | 102,785 |
3. | LOANS HELD FOR INVESTMENT |
2019 | 2018 | December 31, 2023 | December 31, 2022 | |||||||||||||
Commercial real estate | $ | 658,195 | $ | 538,037 | $ | 1,081,056 | $ | 919,358 | ||||||||
Commercial - specialized | 309,505 | 305,022 | 372,376 | 327,513 | ||||||||||||
Commercial - general | 441,398 | 427,728 | 517,361 | 484,783 | ||||||||||||
Consumer: | ||||||||||||||||
1-4 family residential | 362,796 | 346,153 | 534,731 | 460,124 | ||||||||||||
Auto loans | 215,209 | 191,647 | 305,271 | 321,476 | ||||||||||||
Other consumer | 74,000 | 70,209 | 74,168 | 81,308 | ||||||||||||
Construction | 82,520 | 78,401 | 129,190 | 153,519 | ||||||||||||
3,014,153 | 2,748,081 | |||||||||||||||
2,143,623 | 1,957,197 | |||||||||||||||
Allowance for loan losses | (24,197 | ) | (23,126 | ) | ||||||||||||
Allowance for credit losses on loans | (42,356 | ) | (39,288 | ) | ||||||||||||
Loans, net | $ | 2,119,426 | $ | 1,934,071 | $ | 2,971,797 | $ | 2,708,793 |
Beginning Balance | Provision for Loan Losses | Charge-offs | Recoveries | Ending Balance | Beginning Balance | Impact of CECL Adoption | Provision for Credit Losses (1) | Charge-offs | Recoveries | Ending Balance | ||||||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||||||||||||||
For the year ended December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 5,579 | $ | (961 | ) | $ | — | $ | 431 | $ | 5,049 | $ | 13,029 | $ | 827 | $ | 1,952 | $ | — | $ | — | $ | 15,808 | |||||||||||||||||||||
Commercial - specialized | 2,516 | 2 | (355 | ) | 124 | 2,287 | 3,425 | 33 | 398 | (11 | ) | 175 | 4,020 | |||||||||||||||||||||||||||||||
Commercial - general | 8,173 | 1,209 | (306 | ) | 533 | 9,609 | 9,215 | (2,574 | ) | 42 | (469 | ) | 177 | 6,391 | ||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||
1-4 family residential | 2,249 | 219 | (436 | ) | 61 | 2,093 | 6,194 | 1,700 | 1,278 | (1 | ) | 6 | 9,177 | |||||||||||||||||||||||||||||||
Auto loans | 2,994 | 1,276 | (1,067 | ) | 182 | 3,385 | 3,926 | (332 | ) | 698 | (888 | ) | 197 | 3,601 | ||||||||||||||||||||||||||||||
Other consumer | 1,192 | 969 | (1,034 | ) | 214 | 1,341 | 1,376 | (235 | ) | 688 | (1,140 | ) | 279 | 968 | ||||||||||||||||||||||||||||||
Construction | 423 | 85 | (75 | ) | — | 433 | 2,123 | 683 | (96 | ) | (319 | ) | — | 2,391 | ||||||||||||||||||||||||||||||
$ | 39,288 | $ | 102 | $ | 4,960 | $ | (2,828 | ) | $ | 834 | $ | 42,356 | ||||||||||||||||||||||||||||||||
Total | $ | 23,126 | $ | 2,799 | $ | (3,273 | ) | $ | 1,545 | $ | 24,197 | |||||||||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 3,769 | $ | 1,728 | $ | (1,540 | ) | $ | 1,622 | $ | 5,579 | |||||||||||||||||||||||||||||||||
Commercial - specialized | 2,367 | 177 | (115 | ) | 87 | 2,516 | ||||||||||||||||||||||||||||||||||||||
Commercial - general | 10,151 | 1,539 | (4,291 | ) | 774 | 8,173 | ||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||
1-4 family residential | 1,787 | 660 | (272 | ) | 74 | 2,249 | ||||||||||||||||||||||||||||||||||||||
Auto loans | 2,068 | 1,733 | (972 | ) | 165 | 2,994 | ||||||||||||||||||||||||||||||||||||||
Other consumer | 971 | 974 | (941 | ) | 188 | 1,192 | ||||||||||||||||||||||||||||||||||||||
Construction | 348 | 90 | (15 | ) | — | 423 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 21,461 | $ | 6,901 | $ | (8,146 | ) | $ | 2,910 | $ | 23,126 |
Beginning Balance | Provision for Credit Losses | Charge-offs | Recoveries | Ending Balance | ||||||||||||||||
For the year ended December 31, 2022 | ||||||||||||||||||||
Commercial real estate | $ | 17,245 | $ | (4,634 | ) | $ | — | $ | 418 | $ | 13,029 | |||||||||
Commercial - specialized | 4,363 | (1,745 | ) | (199 | ) | 1,006 | 3,425 | |||||||||||||
Commercial - general | 8,466 | 627 | (328 | ) | 450 | 9,215 | ||||||||||||||
Consumer: | ||||||||||||||||||||
1-4 family residential | 5,268 | 1,026 | (140 | ) | 40 | 6,194 | ||||||||||||||
Auto loans | 3,653 | 637 | (508 | ) | 144 | 3,926 | ||||||||||||||
Other consumer | 1,357 | 932 | (1,167 | ) | 254 | 1,376 | ||||||||||||||
Construction | 1,746 | 538 | (166 | ) | 5 | 2,123 | ||||||||||||||
$ | 42,098 | $ | (2,619 | ) | $ | (2,508 | ) | $ | 2,317 | $ | 39,288 |
Beginning Balance | Provision for Credit Losses | Charge-offs | Recoveries | Ending Balance | ||||||||||||||||
For the year ended December 31, 2021 | ||||||||||||||||||||
Commercial real estate | $ | 18,962 | $ | (1,826 | ) | $ | — | $ | 109 | $ | 17,245 | |||||||||
Commercial - specialized | 5,760 | (1,386 | ) | (172 | ) | 161 | 4,363 | |||||||||||||
Commercial - general | 9,227 | (302 | ) | (677 | ) | 218 | 8,466 | |||||||||||||
Consumer: | ||||||||||||||||||||
1-4 family residential | 4,646 | 666 | (52 | ) | 8 | 5,268 | ||||||||||||||
Auto loans | 4,226 | (90 | ) | (598 | ) | 115 | 3,653 | |||||||||||||
Other consumer | 1,671 | 339 | (903 | ) | 250 | 1,357 | ||||||||||||||
Construction | 1,061 | 681 | — | 4 | 1,746 | |||||||||||||||
$ | 45,553 | $ | (1,918 | ) | $ | (2,402 | ) | $ | 865 | $ | 42,098 |
Equipment | Real Estate | Accounts Receivable | Total Loans Individually Evaluated | Total ACL for Individually Evaluated Loans | ||||||||||||||||
December 31, 2023 | ||||||||||||||||||||
Commercial real estate | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Commercial - specialized | — | — | — | — | — | |||||||||||||||
Commercial - general | 353 | 691 | — | 1,044 | 142 | |||||||||||||||
Consumer: | ||||||||||||||||||||
1-4 family residential | — | 362 | — | 362 | — | |||||||||||||||
Auto loans | — | — | — | — | — | |||||||||||||||
Other consumer | — | — | — | — | — | |||||||||||||||
Construction | — | 218 | — | 218 | — | |||||||||||||||
$ | 353 | $ | 1,271 | $ | — | $ | 1,624 | $ | 142 |
Recorded Investment | Allowance for Loan Losses | Recorded Investment | ACL for Loans | |||||||||||||||||||||||||||||
Individually Evaluated | Collectively Evaluated | Individually Evaluated | Collectively Evaluated | Individually Evaluated | Collectively Evaluated | Individually Evaluated | Collectively Evaluated | |||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | 299 | $ | 657,896 | $ | — | $ | 5,049 | $ | — | $ | 919,358 | $ | — | $ | 13,029 | ||||||||||||||||
Commercial - specialized | 573 | 308,932 | — | 2,287 | — | 327,513 | — | 3,425 | ||||||||||||||||||||||||
Commercial - general | 1,396 | 440,002 | 525 | 9,084 | 3,350 | 481,433 | 22 | 9,193 | ||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||
1-4 family residential | 1,899 | 360,897 | — | 2,093 | 742 | 459,382 | 18 | 6,176 | ||||||||||||||||||||||||
Auto loans | — | 215,209 | — | 3,385 | — | 321,476 | — | 3,926 | ||||||||||||||||||||||||
Other consumer | — | 74,000 | — | 1,341 | — | 81,308 | — | 1,376 | ||||||||||||||||||||||||
Construction | — | 82,520 | — | 433 | 1,014 | 152,505 | 245 | 1,878 | ||||||||||||||||||||||||
$ | 5,106 | $ | 2,742,975 | $ | 285 | $ | 39,003 | |||||||||||||||||||||||||
Total | $ | 4,167 | $ | 2,139,456 | $ | 525 | $ | 23,672 | ||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||
Commercial - | $ | 1,819 | $ | 536,218 | $ | — | $ | 5,579 | ||||||||||||||||||||||||
Commercial - specialized | 2,116 | 302,906 | — | 2,516 | ||||||||||||||||||||||||||||
Commercial - general | 2,950 | 424,778 | 233 | 7,940 | ||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||
1-4 family residential | 2,475 | 343,678 | 8 | 2,241 | ||||||||||||||||||||||||||||
Auto loans | — | 191,647 | — | 2,994 | ||||||||||||||||||||||||||||
Other consumer | — | 70,209 | — | 1,192 | ||||||||||||||||||||||||||||
Construction | — | 78,401 | — | 423 | ||||||||||||||||||||||||||||
Total | $ | 9,360 | $ | 1,947,837 | $ | 241 | $ | 22,885 |
Unpaid Contractual Principal Balance | Recorded Investment With No Allowance | Recorded Investment With Allowance | Total Recorded Investment | Related Allowance | Average Recorded Investment | Unpaid Contractual Principal Balance | Recorded Investment With No Allowance | Recorded Investment With Allowance | Total Recorded Investment | Related Allowance | Average Recorded Investment | |||||||||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 754 | $ | 299 | $ | — | $ | 299 | $ | — | $ | 1,059 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 551 | ||||||||||||||||||||||||
Commercial -specialized | 573 | 573 | — | 573 | — | 1,345 | ||||||||||||||||||||||||||||||||||||||||||
Commercial - specialized | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Commercial - general | 1,839 | — | 1,396 | 1,396 | 525 | 2,173 | 3,350 | 799 | 2,551 | 3,350 | 22 | 4,214 | ||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||
1-4 family | 2,318 | 1,899 | — | 1,899 | — | 2,187 | 742 | 486 | 256 | 742 | 18 | 1,167 | ||||||||||||||||||||||||||||||||||||
Auto loans | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other consumer | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | 1,014 | 686 | 328 | 1,014 | 245 | 507 | ||||||||||||||||||||||||||||||||||||
Total | $ | 5,484 | $ | 2,771 | $ | 1,396 | $ | 4,167 | $ | 525 | $ | 6,764 | ||||||||||||||||||||||||||||||||||||
$ | 5,106 | $ | 1,971 | $ | 3,135 | $ | 5,106 | $ | 285 | $ | 6,439 | |||||||||||||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 2,274 | $ | 1,819 | $ | — | $ | 1,819 | $ | — | $ | 4,590 | ||||||||||||||||||||||||||||||||||||
Commercial specialized | 2,116 | 2,116 | — | 2,116 | — | 3,742 | ||||||||||||||||||||||||||||||||||||||||||
Commercial general | 4,758 | 240 | 2,710 | 2,950 | 233 | 3,963 | ||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||
1-4 family | 2,894 | 2,111 | 364 | 2,475 | 8 | 2,881 | ||||||||||||||||||||||||||||||||||||||||||
Auto loans | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Other consumer | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 12,042 | $ | 6,286 | $ | 3,074 | $ | 9,360 | $ | 241 | $ | 15,176 |
30-89 Days Past Due | 90 Days or More Past Due | Nonaccrual | ||||||||||
2019 | ||||||||||||
Commercial real estate | $ | 37 | $ | 116 | $ | 162 | ||||||
Commercial - specialized | 708 | — | 1,172 | |||||||||
Commercial - general | 1,747 | — | 2,254 | |||||||||
Consumer: | ||||||||||||
1-4 Family residential | 1,212 | 932 | 1,105 | |||||||||
Auto loans | 1,468 | 183 | — | |||||||||
Other consumer | 848 | 121 | — | |||||||||
Construction | 1,159 | — | — | |||||||||
Total | $ | 7,179 | $ | 1,352 | $ | 4,693 | ||||||
2018 | ||||||||||||
Commercial real estate | $ | 1,748 | $ | — | $ | 217 | ||||||
Commercial - specialized | 992 | — | 2,550 | |||||||||
Commercial - general | 2,625 | — | 2,134 | |||||||||
Consumer: | ||||||||||||
1-4 Family residential | 1,611 | 440 | 1,489 | |||||||||
Auto loans | 825 | 50 | — | |||||||||
Other consumer | 883 | 74 | — | |||||||||
Construction | — | — | — | |||||||||
Total | $ | 8,684 | $ | 564 | $ | 6,390 |
30-89 Days Past Due | 90 Days or More Past Due | Total Nonaccrual | Nonaccrual with no ACL | |||||||||||||
December 31, 2023 | ||||||||||||||||
Commercial real estate | $ | 499 | $ | 86 | $ | — | $ | — | ||||||||
Commercial - specialized | 521 | — | 213 | — | ||||||||||||
Commercial - general | 1,316 | 296 | 953 | — | ||||||||||||
Consumer: | ||||||||||||||||
1-4 Family residential | 793 | 1,390 | 1,828 | 362 | ||||||||||||
Auto loans | 1,208 | 60 | — | — | ||||||||||||
Other consumer | 1,134 | 103 | 30 | — | ||||||||||||
Construction | 759 | — | 218 | 218 | ||||||||||||
$ | 6,230 | $ | 1,935 | $ | 3,242 | $ | 580 |
30-89 Days Past Due | 90 Days or More Past Due | Total Nonaccrual | ||||||||||
December 31, 2022 | ||||||||||||
Commercial real estate | $ | 342 | $ | 27 | $ | — | ||||||
Commercial - specialized | 25 | 13 | 38 | |||||||||
Commercial - general | 1,451 | 60 | 3,357 | |||||||||
Consumer: | ||||||||||||
1-4 Family residential | 1,389 | 1,653 | 1,356 | |||||||||
Auto loans | 707 | 85 | — | |||||||||
Other consumer | 1,487 | 149 | 37 | |||||||||
Construction | 550 | — | 1,014 | |||||||||
$ | 5,951 | $ | 1,987 | $ | 5,802 |
Term Loans | ||||||||||||||||||||||||||||||||
Amortized Cost Basis by Origination Year | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Loans | Total | |||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||
Pass | $ | 254,766 | $ | 324,601 | $ | 189,211 | $ | 50,660 | $ | 47,988 | $ | 174,859 | $ | 3,842 | $ | 1,045,927 | ||||||||||||||||
Special mention | — | — | — | 11,677 | — | — | — | 11,677 | ||||||||||||||||||||||||
Substandard | — | 82 | 21,152 | 1,699 | 149 | 370 | — | 23,452 | ||||||||||||||||||||||||
Total commercial real estate loans | $ | 254,766 | $ | 324,683 | $ | 210,363 | $ | 64,036 | $ | 48,137 | $ | 175,229 | $ | 3,842 | $ | 1,081,056 | ||||||||||||||||
Current period gross charge-offs | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Commercial - specialized: | ||||||||||||||||||||||||||||||||
Pass | $ | 117,912 | $ | 56,152 | $ | 57,839 | $ | 19,883 | $ | 10,376 | $ | 22,758 | $ | 83,368 | $ | 368,288 | ||||||||||||||||
Special mention | — | 2,938 | — | — | — | — | 300 | 3,238 | ||||||||||||||||||||||||
Substandard | — | 105 | 196 | 393 | 19 | 137 | — | 850 | ||||||||||||||||||||||||
Total commercial - specialized loans | $ | 117,912 | $ | 59,195 | $ | 58,035 | $ | 20,276 | $ | 10,395 | $ | 22,895 | $ | 83,668 | $ | 372,376 | ||||||||||||||||
Current period gross charge-offs | $ | — | $ | — | $ | — | $ | 11 | $ | — | $ | — | $ | — | $ | 11 | ||||||||||||||||
Commercial - general: | ||||||||||||||||||||||||||||||||
Pass | $ | 88,911 | $ | 128,627 | $ | 90,957 | $ | 35,794 | $ | 45,660 | $ | 68,990 | $ | 44,131 | $ | 503,070 | ||||||||||||||||
Special mention | — | — | — | — | — | 1,565 | 250 | 1,815 | ||||||||||||||||||||||||
Substandard | 201 | 2,930 | 4,676 | 227 | 2,749 | 1,442 | 251 | 12,476 | ||||||||||||||||||||||||
Total commercial - general loans | $ | 89,112 | $ | 131,557 | $ | 95,633 | $ | 36,021 | $ | 48,409 | $ | 71,997 | $ | 44,632 | $ | 517,361 | ||||||||||||||||
Current period gross charge-offs | $ | — | $ | 47 | $ | 50 | $ | 33 | $ | 18 | $ | 321 | $ | — | $ | 469 | ||||||||||||||||
Consumer: 1-4 family residential: | ||||||||||||||||||||||||||||||||
Pass | $ | 113,897 | $ | 156,549 | $ | 106,619 | $ | 51,940 | $ | 31,345 | $ | 56,666 | $ | 3,770 | $ | 520,786 | ||||||||||||||||
Special mention | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Substandard | 376 | 382 | 4,238 | 708 | 3,758 | 4,483 | — | 13,945 | ||||||||||||||||||||||||
Total consumer: 1-4 family residential loans | $ | 114,273 | $ | 156,931 | $ | 110,857 | $ | 52,648 | $ | 35,103 | $ | 61,149 | $ | 3,770 | $ | 534,731 | ||||||||||||||||
Current period gross charge-offs | $ | — | $ | — | $ | 1 | $ | — | $ | — | $ | — | $ | — | $ | 1 | ||||||||||||||||
Consumer: auto loans: | ||||||||||||||||||||||||||||||||
Pass | $ | 106,149 | 124,588 | 48,686 | 16,524 | 6,812 | 1,935 | — | 304,694 | |||||||||||||||||||||||
Special mention | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Substandard | 16 | 189 | 199 | 60 | 81 | 32 | — | 577 | ||||||||||||||||||||||||
Total consumer: auto loans | $ | 106,165 | $ | 124,777 | $ | 48,885 | $ | 16,584 | $ | 6,893 | $ | 1,967 | $ | — | $ | 305,271 | ||||||||||||||||
Current period gross charge-offs | $ | 113 | $ | 377 | $ | 254 | $ | 14 | $ | 49 | $ | 81 | $ | — | $ | 888 | ||||||||||||||||
Consumer: other consumer: | ||||||||||||||||||||||||||||||||
Pass | $ | 23,719 | $ | 26,899 | $ | 10,198 | $ | 3,190 | $ | 2,539 | $ | 6,107 | $ | 1,364 | $ | 74,016 | ||||||||||||||||
Special mention | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Substandard | — | 13 | 44 | 10 | — | 84 | 1 | 152 | ||||||||||||||||||||||||
Total consumer: other consumer loans | $ | 23,719 | $ | 26,912 | $ | 10,242 | $ | 3,200 | $ | 2,539 | $ | 6,191 | $ | 1,365 | $ | 74,168 | ||||||||||||||||
Current period gross charge-offs (1) | $ | 624 | $ | 244 | $ | 88 | $ | 32 | $ | 72 | $ | 80 | $ | — | $ | 1,140 |
Construction: | ||||||||||||||||||||||||||||||||
Pass | $ | 61,903 | $ | 53,930 | $ | 5,511 | $ | 331 | $ | — | $ | — | $ | 6,250 | $ | 127,925 | ||||||||||||||||
Special mention | 131 | — | 820 | — | — | — | — | 951 | ||||||||||||||||||||||||
Substandard | — | 314 | — | — | — | — | — | 314 | ||||||||||||||||||||||||
Total construction loans | $ | 62,034 | $ | 54,244 | $ | 6,331 | $ | 331 | $ | — | $ | — | $ | 6,250 | $ | 129,190 | ||||||||||||||||
Current period gross charge-offs | $ | 48 | $ | — | $ | 271 | $ | — | $ | — | $ | — | $ | — | $ | 319 |
Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||||||||
Commercial real estate | $ | 893,312 | $ | — | $ | 26,046 | $ | — | $ | 919,358 | ||||||||||
Commercial - specialized | 326,987 | — | 526 | — | 327,513 | |||||||||||||||
Commercial - general | 451,639 | — | 33,144 | — | 484,783 | |||||||||||||||
Consumer: | ||||||||||||||||||||
1-4 family residential | 450,034 | — | 10,090 | — | 460,124 | |||||||||||||||
Auto loans | 321,158 | — | 318 | — | 321,476 | |||||||||||||||
Other consumer | 81,109 | — | 199 | — | 81,308 | |||||||||||||||
Construction | 151,995 | — | 1,524 | — | 153,519 | |||||||||||||||
$ | 2,676,234 | $ | — | $ | 71,847 | $ | — | $ | 2,748,081 |
Pass | Special Mention | Substandard | Doubtful | Total | Payment Delay | Term Extension | Term Extension and Payment Delay | Term Extension and Interest Rate Reduction | Payment Delay and Interest Rate Reduction | Payment Delay, Term Extension, and Interest Rate Reduction | Total Class of Financing Receivable | |||||||||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 632,641 | $ | 22,313 | $ | 3,241 | $ | — | $ | 658,195 | $ | — | $ | 2,118 | $ | 127 | $ | — | $ | — | $ | — | 0.21 | % | ||||||||||||||||||||||||
Commercial - specialized | 307,239 | — | 2,266 | — | 309,505 | 103 | — | 81 | 686 | — | — | 0.23 | % | |||||||||||||||||||||||||||||||||||
Commercial - general | 428,155 | — | 13,243 | — | 441,398 | 266 | 6,995 | 598 | 109 | — | 28 | 1.55 | % | |||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||
1-4 family residential | 356,422 | — | 6,374 | — | 362,796 | |||||||||||||||||||||||||||||||||||||||||||
1-4 family | 187 | 390 | 87 | — | — | 7 | 0.13 | % | ||||||||||||||||||||||||||||||||||||||||
Auto loans | 214,363 | — | 846 | — | 215,209 | 34 | 35 | 17 | — | 42 | — | 0.04 | % | |||||||||||||||||||||||||||||||||||
Other consumer | 73,716 | — | 284 | — | 74,000 | — | — | — | — | 7 | — | 0.01 | % | |||||||||||||||||||||||||||||||||||
Construction | 82,520 | — | — | — | 82,520 | — | 2,315 | 302 | — | — | — | 2.03 | % | |||||||||||||||||||||||||||||||||||
Total | $ | 2,095,056 | $ | 22,313 | $ | 26,254 | $ | — | $ | 2,143,623 | ||||||||||||||||||||||||||||||||||||||
$ | 590 | $ | 11,853 | $ | 1,212 | $ | 795 | $ | 49 | $ | 35 | 0.48 | % | |||||||||||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 514,249 | $ | 17,300 | $ | 6,488 | $ | — | $ | 538,037 | ||||||||||||||||||||||||||||||||||||||
Commercial - specialized | 301,289 | — | 3,733 | — | 305,022 | |||||||||||||||||||||||||||||||||||||||||||
Commercial - general | 415,675 | 1,449 | 10,604 | — | 427,728 | |||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||
1-4 family residential | 340,836 | — | 5,317 | — | 346,153 | |||||||||||||||||||||||||||||||||||||||||||
Auto loans | 191,435 | — | 212 | — | 191,647 | |||||||||||||||||||||||||||||||||||||||||||
Other consumer | 70,075 | — | 134 | — | 70,209 | |||||||||||||||||||||||||||||||||||||||||||
Construction | 78,401 | — | — | — | 78,401 | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,911,960 | $ | 18,749 | $ | 26,488 | $ | — | $ | 1,957,197 |
30-89 Days Past Due | 90 Days or More Past Due and Still Accruing | Nonaccrual | ||||||||||
December 31, 2023 | ||||||||||||
Commercial real estate | $ | — | $ | — | $ | — | ||||||
Commercial - specialized | — | — | 265 | |||||||||
Commercial - general | 69 | 33 | 63 | |||||||||
Consumer: | ||||||||||||
1-4 Family residential | — | — | — | |||||||||
Auto loans | 69 | — | — | |||||||||
Other consumer | — | — | — | |||||||||
Construction | — | — | 272 | |||||||||
$ | 138 | $ | 33 | $ | 600 |
Principal Forgiveness | Weighted- Average Interest Rate Reduction | Weighted- Average Term Extension (Months) | ||||||||||
December 31, 2023 | ||||||||||||
Commercial real estate | $ | — | — | 5 | ||||||||
Commercial - specialized | — | 0.86 | % | 56 | ||||||||
Commercial - general | — | 1.97 | % | 16 | ||||||||
Consumer: | ||||||||||||
1-4 Family residential | — | 1.75 | % | 16 | ||||||||
Auto loans | — | 0.86 | % | 11 | ||||||||
Other consumer | — | 4.75 | % | — | ||||||||
Construction | — | — | 6 | |||||||||
$ | — | 1.07 | % | 15 |
For the Year Ended December 31, | ||||||||||||||||||||
2019 | 2018 | 2023 | 2022 | 2021 | ||||||||||||||||
Beginning balance | $ | 2,285 | $ | 2,830 | $ | 169 | $ | 1,032 | $ | 1,353 | ||||||||||
Additions | 3,469 | 6,473 | 2,302 | 764 | 927 | |||||||||||||||
Sales, net | (3,871 | ) | (6,733 | ) | (1,417 | ) | (1,627 | ) | (1,248 | ) | ||||||||||
Current year valuation write-down | — | (285 | ) | (142 | ) | — | — | |||||||||||||
Ending balance | $ | 1,883 | $ | 2,285 | $ | 912 | $ | 169 | $ | 1,032 |
2019 | 2018 | |||||||
Beginning balance | $ | 325 | $ | 1,413 | ||||
Current year valuation write-down | — | 285 | ||||||
Reductions from sales | (325 | ) | (1,373 | ) | ||||
Ending balance | $ | — | $ | 325 |
2019 | 2018 | For the Year Ended December 31, | ||||||||||||||||||
Net gain (loss) on sales | $ | (37 | ) | $ | 108 | |||||||||||||||
2023 | 2022 | 2021 | ||||||||||||||||||
Net gain on sales | $ | — | $ | (424 | ) | $ | (44 | ) | ||||||||||||
Current year valuation write-down | — | 285 | 142 | — | — | |||||||||||||||
Operating expenses, net of rental income | 145 | 86 | 42 | 65 | 57 | |||||||||||||||
Foreclosed assets expense, net | $ | 108 | $ | 479 | $ | 184 | $ | (359 | ) | $ | 13 |
5. | PREMISES AND EQUIPMENT |
December 31, | ||||||||||||||||
2019 | 2018 | 2023 | 2022 | |||||||||||||
Land | $ | 10,825 | $ | 10,121 | $ | 9,530 | $ | 10,065 | ||||||||
Buildings and improvements | 63,972 | 60,799 | 66,558 | 63,995 | ||||||||||||
Furniture and equipment | 44,460 | 41,954 | 51,225 | 47,967 | ||||||||||||
Construction in process | 974 | 672 | 396 | 2,378 | ||||||||||||
120,231 | 113,546 | 127,709 | 124,405 | |||||||||||||
Less accumulated depreciation | (58,358 | ) | (53,759 | ) | (72,639 | ) | (68,068 | ) | ||||||||
Premises and equipment, net | $ | 61,873 | $ | 59,787 | $ | 55,070 | $ | 56,337 |
6. | LEASES |
December 31, 2023 | December 31, 2022 | |||||||
Operating lease right of use assets (included in Other assets) | $ | 8,681 | $ | 7,938 | ||||
Operating lease liabilities (included in Accrued expenses and other liabilities) | 9,630 | 8,897 |
Year Ended December 31, | ||||||||
2023 | 2022 | |||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
Operating cash flows used in operating leases | $ | 2,004 | $ | 1,976 | ||||
Right-of-use assets obtained in exchange for new lease obligations: | ||||||||
Operating leases | $ | 2,515 | $ | — |
2024 | $ | 1,772 | ||
2025 | 1,437 | |||
2026 | 1,375 | |||
2027 | 1,324 | |||
2028 | 1,169 | |||
Thereafter | 5,570 | |||
Total minimum lease payments | 12,647 | |||
Less: Amount representing interest | 3,017 | |||
Lease liabilities | $ | 9,630 |
7. | GOODWILL AND INTANGIBLES |
2019 | 2018 | December 31, | ||||||||||||||
Beginning goodwill | $ | — | $ | — | ||||||||||||
Arising from business combinations | 18,757 | — | ||||||||||||||
Ending goodwill | $ | 18,757 | $ | — | ||||||||||||
2023 | 2022 | |||||||||||||||
Amortized intangible assets: | ||||||||||||||||
CDI | $ | 6,679 | $ | — | ||||||||||||
Core deposit intangible | $ | 6,679 | $ | 6,679 | ||||||||||||
Less: Accumulated amortization | (202 | ) | — | (4,250 | ) | (3,420 | ) | |||||||||
2,429 | 3,259 | |||||||||||||||
6,477 | — | |||||||||||||||
Other intangibles | 2,309 | — | — | 2,972 | ||||||||||||
Less: Accumulated amortization | (154 | ) | — | — | (1,882 | ) | ||||||||||
2,155 | — | 1,090 | ||||||||||||||
Other intangible assets, net | $ | 8,632 | $ | — | $ | 2,429 | $ | 4,349 |
CDI | Other Intangible | Total | ||||||||||
2020 | $ | 1,194 | $ | 473 | $ | 1,667 | ||||||
2021 | 1,073 | 462 | 1,535 | |||||||||
2022 | 951 | 462 | 1,413 | |||||||||
2023 | 830 | 462 | 1,292 | |||||||||
2024 | 708 | 308 | 1,016 |
2024 | $ | 708 | ||
2025 | 587 | |||
2026 | 466 | |||
2027 | 344 | |||
2028 | 223 |
8. | MORTGAGE SERVICING RIGHTS |
Year Ended December 31, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Beginning balance | $ | 27,474 | $ | 19,700 | $ | 9,049 | ||||||
Additions | 1,470 | 3,069 | 9,196 | |||||||||
Valuation adjustment | (2,375 | ) | 4,705 | 1,455 | ||||||||
Ending balance | $ | 26,569 | $ | 27,474 | $ | 19,700 |
December 31, | ||||||||
2023 | 2022 | |||||||
Mortgage loans serviced for others | $ | 2,001,476 | $ | 2,046,490 | ||||
Mortgage servicing rights assets as a percentage of serviced mortgage loans | 1.33 | % | 1.34 | % |
December 31, | ||||||||
2023 | 2022 | |||||||
Weighted average constant prepayment rate | 7.46 | % | 7.47 | % | ||||
Weighted average discount rate | 10.66 | % | 9.15 | % | ||||
Weighted average life in years | 8.09 | 7.91 |
9. | DEPOSITS |
2020 | $ | 217,527 | ||
2021 | 34,102 | |||
2022 | 58,927 | |||
2023 | 39,431 | |||
2024 | 6,036 | |||
Thereafter | — | |||
$ | 356,023 |
2024 | $ | 339,979 | ||
2025 | 19,665 | |||
2026 | 3,864 | |||
2027 | 1,728 | |||
2028 | 2,272 | |||
Thereafter | 207 | |||
$ | 367,715 |
10. | BORROWING ARRANGEMENTS |
2019 | 2018 | |||||||
Federal funds purchased | $ | 17,165 | $ | 17,705 | ||||
FHLB advances - short-term | 20,000 | — | ||||||
Total | $ | 37,165 | $ | 17,705 |
Issue Date | Original Amount of Advance | 2019 Balance | 2018 Balance | Maturity Date | Interest Rate at December 31, 2019 | ||||||||||||
2013 | $ | 20,000 | $ | 20,000 | $ | 20,000 | 2020 | Fixed; 1.50% | |||||||||
2015 | 25,000 | 25,000 | 25,000 | 2025 | Variable; 1.67% | ||||||||||||
2015 | 25,000 | 25,000 | 25,000 | 2025 | Variable; 1.67% | ||||||||||||
2015 | 25,000 | 25,000 | 25,000 | 2025 | Variable; 1.69% | ||||||||||||
$ | 95,000 | $ | 95,000 | $ | 95,000 |
Issue Date | Amount of TPS | Amount of Debentures | Stated Maturity Date of TPS and Debentures(1) | Interest Rate of TPS and Debentures(2)(3) | ||||||||||
South Plains Financial Capital Trust III | 2004 | $ | 10,000 | $ | 10,310 | 2034 | 3-mo. LIBOR + 265bps; 4.58% | |||||||
South Plains Financial Capital Trust IV | 2005 | 20,000 | 20,619 | 2035 | 3-mo. LIBOR + 139bps; 3.28% | |||||||||
South Plains Financial Capital Trust V | 2007 | 15,000 | 15,464 | 2037 | 3-mo. LIBOR + 150bps; 3.39% | |||||||||
Total | $ | 45,000 | $ | 46,393 |
Issue Date | Amount of TPS | Amount of Debentures | Stated Maturity Date of TPS and Debentures(1) | Interest Rate of TPS and Debentures(2)(3) | ||||||||||
SPFCT III | 2004 | $ | 10,000 | $ | 10,310 | 2034 | 3-mo. CME Term SOFR + 291bps; 8.32% | |||||||
SPFCT IV | 2005 | 20,000 | 20,619 | 2035 | 3-mo. CME Term SOFR + 165bps; 7.04% | |||||||||
SPFCT V | 2007 | 15,000 | 15,464 | 2037 | 3-mo. CME Term SOFR + 176bps; 7.15% | |||||||||
Total | $ | 45,000 | $ | 46,393 |
(1) | May be redeemed five years from the issue date, the Company has no current plans to redeem; (2) Interest payable quarterly with principal due at maturity; (3) Rate as of last reset date. |
11. | EMPLOYEE BENEFITS |
12. | STOCK-BASED COMPENSATION |
Number of Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Life in Years | Aggregate Intrinsic Value | Number of Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Life in Years | Aggregate Intrinsic Value | |||||||||||||||||||||||||
Year Ended December 31, 2019 | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2023 | ||||||||||||||||||||||||||||||||
Outstanding at beginning of year: | — | $ | — | $ | — | 1,354,189 | $ | 16.11 | $ | 17,416 | ||||||||||||||||||||||
Granted | 1,691,403 | 13.23 | 12,946,412 | 47,816 | 27.46 | 72 | ||||||||||||||||||||||||||
Exercised | (187,500 | ) | 10.60 | 1,926,300 | (117,292 | ) | 11.96 | (1,994 | ) | |||||||||||||||||||||||
Forfeited | (27,406 | ) | 17.91 | 81,132 | (1,125 | ) | 20.19 | (10 | ) | |||||||||||||||||||||||
Expired | (13,500 | ) | 18.70 | 29,340 | (2,730 | ) | 17.47 | (31 | ) | |||||||||||||||||||||||
Balance, December 31, 2019 | 1,462,997 | $ | 13.42 | 6.11 | $ | 10,909,640 | ||||||||||||||||||||||||||
Balance, December 31, 2023 | 1,280,858 | $ | 16.91 | 5.11 | $ | 15,453 | ||||||||||||||||||||||||||
Exercisable at end of period | 1,016,850 | $ | 11.68 | 5.67 | $ | 9,341,289 | 1,082,939 | $ | 15.80 | 4.68 | $ | 14,265 | ||||||||||||||||||||
Vested at end of period | 1,016,850 | $ | 11.68 | 5.67 | $ | 9,341,289 | 1,082,939 | $ | 15.80 | 4.68 | $ | 14,265 |
Year Ended December 31, | ||||||||||||||||
Year Ended December 31, 2019 | 2023 | 2022 | 2021 | |||||||||||||
Expected volatility | 24.88% to 31.54% | 39.13% to 39.68% | 40.20% to 40.29% | 41.20% to 41.32% | ||||||||||||
Expected dividend yield | 0.70 | % | 1.74% to 1.90% | 1.30% | 1.00% | |||||||||||
Expected term (years) | 0.5 - 7.0 years | 6.1 to 6.3 | 6.1 to 6.3 | 6.1 to 6.2 | ||||||||||||
Risk-free interest rate | 1.46% to 2.63% | 3.91% to 3.98% | 1.56% to 1.95% | 0.52% to 0.83% | ||||||||||||
Weighted average grant date fair value | $ | 7.98 | $ | 10.26 | $ | 10.54 | $ | 7.07 |
Number of Shares | Weighted-Average Grant Date Fair Value | Number of Shares | Weighted-Average Grant Date Fair Value | |||||||||||||
Year Ended December 31, 2019 | ||||||||||||||||
Year Ended December 31, 2023 | ||||||||||||||||
Outstanding at beginning of year: | 81,200 | $ | 19.46 | 84,342 | $ | 26.76 | ||||||||||
Granted | — | — | 85,127 | 25.33 | ||||||||||||
Exercised | — | — | (38,141 | ) | 24.40 | |||||||||||
Forfeited | — | — | (5,411 | ) | 25.22 | |||||||||||
Balance, December 31, 2019 | 81,200 | $ | 19.46 | |||||||||||||
Balance, December 31, 2023 | 125,917 | $ | 26.58 |
13. | INCOME TAXES |
Years Ended December 31, | Year Ended December 31, | |||||||||||||||||||
2019 | 2018 | 2023 | 2022 | 2021 | ||||||||||||||||
Current expense | ||||||||||||||||||||
Federal | $ | 6,923 | $ | 2,873 | $ | 16,192 | $ | 13,250 | $ | 12,834 | ||||||||||
State | 224 | 121 | 381 | 302 | 220 | |||||||||||||||
Deferred expense | ||||||||||||||||||||
Federal | 334 | (6,895 | ) | |||||||||||||||||
Total | $ | 7,481 | $ | (3,901 | ) | $ | 16,672 | $ | 14,911 | $ | 14,507 |
Years Ended December 31, | Year Ended December 31, | |||||||||||||||||||
2019 | 2018 | 2023 | 2022 | 2021 | ||||||||||||||||
Federal statutory rate times financial statement income | $ | 7,707 | $ | 5,332 | $ | 16,678 | $ | 15,362 | $ | 15,355 | ||||||||||
Effect of: | ||||||||||||||||||||
Initial recognition of net deferred tax asset | — | (6,741 | ) | |||||||||||||||||
S Corp taxable income | — | (2,267 | ) | |||||||||||||||||
Tax-exempt income | (348 | ) | (314 | ) | (836 | ) | (953 | ) | (978 | ) | ||||||||||
State taxes, net of federal benefit | 177 | 95 | 301 | 239 | 174 | |||||||||||||||
Earnings from bank owned life insurance | (272 | ) | (153 | ) | (279 | ) | (251 | ) | (262 | ) | ||||||||||
Non deductible expenses | 190 | 125 | ||||||||||||||||||
Non-deductible expenses | 675 | 409 | 281 | |||||||||||||||||
Other, net | 27 | 22 | 133 | 105 | (63 | ) | ||||||||||||||
Total | $ | 7,481 | $ | (3,901 | ) | $ | 16,672 | $ | 14,911 | $ | 14,507 | |||||||||
Effective tax rate | 20.99 | % | 20.38 | % | 19.84 | % |
December 31, | December 31, | |||||||||||||||
2019 | 2018 | 2023 | 2022 | |||||||||||||
Deferred tax assets | ||||||||||||||||
Allowance for loan loss | $ | 5,081 | $ | 4,857 | ||||||||||||
Allowance for credit losses | $ | 8,895 | $ | 8,251 | ||||||||||||
Deferred compensation | 4,669 | 4,560 | 5,640 | 6,118 | ||||||||||||
Leases | 200 | 201 | ||||||||||||||
Other real estate owned | 251 | 320 | 30 | — | ||||||||||||
Nonaccrual loans | 180 | 169 | 78 | 71 | ||||||||||||
Unrealized loss on available-for-sale securities | — | 596 | ||||||||||||||
Unrealized gain on available-for-sale securities | 17,234 | 21,579 | ||||||||||||||
Other | 162 | 174 | 456 | 286 | ||||||||||||
Total deferred tax assets | 10,343 | 10,676 | 32,533 | 36,506 | ||||||||||||
Deferred tax liabilities | ||||||||||||||||
Depreciation | (2,417 | ) | (2,331 | ) | (2,800 | ) | (2,672 | ) | ||||||||
Intangibles | (924 | ) | — | (626 | ) | (505 | ) | |||||||||
Prepaid expenses | (419 | ) | (390 | ) | (564 | ) | (355 | ) | ||||||||
Mortgage servicing rights | (431 | ) | (267 | ) | (5,580 | ) | (5,770 | ) | ||||||||
Unrealized gain on available-for-sale securities | (255 | ) | — | |||||||||||||
Other | (278 | ) | (197 | ) | (3,550 | ) | (4,386 | ) | ||||||||
Total deferred tax liabilities | (4,724 | ) | (3,185 | ) | (13,120 | ) | (13,688 | ) | ||||||||
Net deferred tax asset | $ | 5,619 | $ | 7,491 | $ | 19,413 | $ | 22,818 |
14. | RELATED-PARTY TRANSACTIONS |
15. | OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES |
December 31, | ||||||||||||||||
2019 | 2018 | 2023 | 2022 | |||||||||||||
Commitments to grant loans and unfunded commitments under lines of credit | $ | 409,969 | $ | 346,245 | $ | 598,800 | $ | 682,296 | ||||||||
Standby letters-of-credit | 10,748 | 5,062 | 11,503 | 13,864 |
2020 | $ | 1,613 | ||
2021 | 1,439 | |||
2022 | 1,248 | |||
2023 | 999 | |||
2024 | 722 | |||
Thereafter | 4,367 | |||
$ | 10,388 |
16. | CAPITAL AND REGULATORY MATTERS |
Actual | Minimum Required Under BASEL III Fully Phased-In | To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
December 31, 2019: | ||||||||||||||||||||||||
Total Capital to Risk Weighted Assets: | ||||||||||||||||||||||||
Consolidated | $ | 373,684 | 14.88 | % | $ | 263,769 | 10.50 | % | N/A | N/A | ||||||||||||||
City Bank | 368,322 | 14.67 | % | 263,702 | 10.50 | % | $ | 251,145 | 10.00 | % | ||||||||||||||
Tier I Capital to Risk Weighted Assets: | ||||||||||||||||||||||||
Consolidated | 322,835 | 12.85 | % | 213,527 | 8.50 | % | N/A | N/A | ||||||||||||||||
City Bank | 343,945 | 13.70 | % | 213,473 | 8.50 | % | 200,916 | 8.00 | % | |||||||||||||||
Common Tier 1 (CET1): | ||||||||||||||||||||||||
Consolidated | 277,835 | 11.06 | % | 175,846 | 7.00 | % | N/A | N/A | ||||||||||||||||
City Bank | 343,945 | 13.70 | % | 175,801 | 7.00 | % | 163,244 | 6.50 | % | |||||||||||||||
Tier I Capital to Average Assets: | ||||||||||||||||||||||||
Consolidated | 322,835 | 10.74 | % | 120,219 | 4.00 | % | N/A | N/A | ||||||||||||||||
City Bank | 343,945 | 11.45 | % | 121,235 | 4.00 | % | 150,175 | 5.00 | % | |||||||||||||||
December 31, 2018: | ||||||||||||||||||||||||
Total Capital to Risk Weighted Assets: | ||||||||||||||||||||||||
Consolidated | $ | 309,798 | 14.28 | % | $ | 214,301 | 9.90 | % | N/A | N/A | ||||||||||||||
City Bank | 294,572 | 13.58 | % | 214,246 | 9.90 | % | $ | 216,958 | 10.00 | % | ||||||||||||||
Tier I Capital to Risk Weighted Assets: | ||||||||||||||||||||||||
Consolidated | 260,020 | 11.98 | % | 170,898 | 7.90 | % | N/A | N/A | ||||||||||||||||
City Bank | 271,266 | 12.50 | % | 170,855 | 7.90 | % | 173,567 | 8.00 | % | |||||||||||||||
Common Tier 1 (CET1): | ||||||||||||||||||||||||
Consolidated | 215,020 | 9.91 | % | 138,346 | 6.40 | % | N/A | N/A | ||||||||||||||||
City Bank | 271,266 | 12.50 | % | 138,311 | 6.40 | % | 141,023 | 6.50 | % | |||||||||||||||
Tier I Capital to Average Assets: | ||||||||||||||||||||||||
Consolidated | 260,020 | 9.63 | % | 108,033 | 4.00 | % | N/A | N/A | ||||||||||||||||
City Bank | 271,266 | 10.05 | % | 107,940 | 4.00 | % | 134,925 | 5.00 | % |
Actual | Minimum Required Under BASEL III Fully Phased-In | To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
December 31, 2023: | ||||||||||||||||||||||||
Total Capital to Risk Weighted Assets: | ||||||||||||||||||||||||
Consolidated | $ | 589,565 | 16.74 | % | $ | 369,753 | 10.50 | % | N/A | N/A | ||||||||||||||
City Bank | 494,353 | 14.04 | % | 369,635 | 10.50 | % | $ | 352,033 | 10.00 | % | ||||||||||||||
Tier I Capital to Risk Weighted Assets: | ||||||||||||||||||||||||
Consolidated | 482,044 | 13.69 | % | 299,324 | 8.50 | % | N/A | N/A | ||||||||||||||||
City Bank | 450,607 | 12.80 | % | 299,228 | 8.50 | % | 281,627 | 8.00 | % | |||||||||||||||
Common Equity Tier 1 to Risk Weighted Assets: | ||||||||||||||||||||||||
Consolidated | 437,044 | 12.41 | % | 246,502 | 7.00 | % | N/A | N/A | ||||||||||||||||
City Bank | 450,607 | 12.80 | % | 246,423 | 7.00 | % | 228,822 | 6.50 | % | |||||||||||||||
Tier I Capital to Average Assets: | ||||||||||||||||||||||||
Consolidated | 482,044 | 11.33 | % | 171,037 | 4.00 | % | N/A | N/A | ||||||||||||||||
City Bank | 450,607 | 10.60 | % | 170,945 | 4.00 | % | 212,594 | 5.00 | % |
December 31, 2022: | ||||||||||||||||||||||||
Total Capital to Risk Weighted Assets: | ||||||||||||||||||||||||
Consolidated | $ | 559,094 | 16.58 | % | $ | 354,045 | 10.50 | % | N/A | N/A | ||||||||||||||
City Bank | 454,427 | 13.48 | % | 353,967 | 10.50 | % | $ | 337,112 | 10.00 | % | ||||||||||||||
Tier I Capital to Risk Weighted Assets: | ||||||||||||||||||||||||
Consolidated | 443,265 | 13.15 | % | 286,608 | 8.50 | % | N/A | N/A | ||||||||||||||||
City Bank | 414,559 | 12.30 | % | 286,545 | 8.50 | % | 269,689 | 8.00 | % | |||||||||||||||
Common Equity Tier 1 to Risk Weighted Assets: | ||||||||||||||||||||||||
Consolidated | 398,265 | 11.81 | % | 236,030 | 7.00 | % | N/A | N/A | ||||||||||||||||
City Bank | 414,559 | 12.30 | % | 235,978 | 7.00 | % | 219,122 | 6.50 | % | |||||||||||||||
Tier I Capital to Average Assets: | ||||||||||||||||||||||||
Consolidated | 443,265 | 11.03 | % | 161,662 | 4.00 | % | N/A | N/A | ||||||||||||||||
City Bank | 414,559 | 10.32 | % | 161,574 | 4.00 | % | 200,774 | 5.00 | % |
17. | DERIVATIVES |
Interest Rate Contracts | Location | 2019 | 2018 | |||||||
Change in fair value on interest rate swaps hedging fixed rate loans | Interest income | $ | (520 | ) | $ | 110 | ||||
Change in fair value on fixed rate loans - hedged item | Interest income | $ | 511 | $ | (133 | ) |
Year Ended December 31, | ||||||||||||||
Interest Rate Contracts | Location | 2023 | 2022 | 2021 | ||||||||||
Change in fair value of interest rate swaps hedging investment securities | Other noninterest expense | $ | (3,497 | ) | $ | 14,439 | $ | 5,710 | ||||||
Change in fair value of hedged investment securities | Other noninterest expense | 3,685 | (14,607 | ) | (5,812 | ) | ||||||||
Change in fair value of interest rate swaps hedging fixed rate loans | Interest income - Loans | (334 | ) | 911 | 498 | |||||||||
Change in fair value of hedged fixed rate loans | Interest income - Loans | 335 | (918 | ) | (512 | ) |
2019 | 2018 | 2023 | 2022 | |||||||||||||||||||||||||||||
Notional Amount | Fair Value | Notional Amount | Fair Value | Notional Amount | Fair Value | Notional Amount | Fair Value | |||||||||||||||||||||||||
Included in other liabilities: | ||||||||||||||||||||||||||||||||
Included in other liabilities: | ||||||||||||||||||||||||||||||||
Interest rate swaps related to fixed rate loans | $ | 10,557 | $ | 351 | $ | — | $ | — | $ | 987 | $ | 10 | $ | — | $ | — | ||||||||||||||||
Included in other assets: | ||||||||||||||||||||||||||||||||
Interest rate swaps related to fixed | $ | — | $ | — | $ | 10,917 | $ | 169 | ||||||||||||||||||||||||
Interest rate swaps related to state and municipal securities | — | — | — | — | ||||||||||||||||||||||||||||
Included in other assets: | ||||||||||||||||||||||||||||||||
Interest rate swaps related to fixed rate loans | 7,796 | 158 | 9,493 | 482 | ||||||||||||||||||||||||||||
Interest rate swaps related to state and municipal securities | 123,760 | 16,628 | 123,760 | 20,125 |
Location | 2019 | 2018 | ||||||||
Forward contracts related to mortgage loans held for sale | Net gain on sales of loans | $ | 672 | $ | (661 | ) | ||||
Interest rate lock commitments | Net gain on sales of loans | $ | (249 | ) | $ | 582 |
For the Year Ended December 31, | |||||||||||||
Location | 2023 | 2022 | 2021 | ||||||||||
Gain (loss) on mortgage banking derivatives | Net gain (loss) on sales of loans | $ | (405 | ) | $ | (1,109 | ) | $ | (1,792 | ) |
2019 | 2018 | December 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||
Notional Amount | Fair Value | Notional Amount | Fair Value | Notional Amount | Fair Value | Notional Amount | Fair Value | |||||||||||||||||||||||||
Included in other assets: | ||||||||||||||||||||||||||||||||
Forward contracts related to mortgage loans held for sale | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 23,500 | $ | 186 | ||||||||||||||||
Interest rate lock commitments | 52,875 | 814 | 46,891 | 1,063 | 16,887 | 444 | 27,348 | 369 | ||||||||||||||||||||||||
Total included in other assets | $ | 52,875 | $ | 814 | $ | 46,891 | $ | 1,063 | $ | 16,887 | $ | 444 | $ | 50,848 | $ | 555 | ||||||||||||||||
Included in other liabilities: | ||||||||||||||||||||||||||||||||
Forward contracts related to mortgage loans held for sale | $ | 58,948 | $ | 141 | $ | 54,998 | $ | 672 | $ | 19,021 | $ | 422 | $ | 5,615 | $ | 128 | ||||||||||||||||
Interest rate lock commitments | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total included in other liabilities | $ | 58,948 | $ | 141 | $ | 54,998 | $ | 672 | $ | 19,021 | $ | 422 | $ | 5,615 | $ | 128 |
18. | PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION |
December 31, | December 31, | |||||||||||||||
2019 | 2018 | 2023 | 2022 | |||||||||||||
ASSETS | (In thousands except per share data) | |||||||||||||||
Cash and cash equivalents | $ | 4,181 | $ | 22,627 | $ | 87,167 | $ | 98,996 | ||||||||
Investment in banking subsidiary | 372,292 | 269,022 | 420,677 | 373,308 | ||||||||||||
Investment in other subsidiary | 51 | 58 | 51 | 51 | ||||||||||||
Other assets | 3,906 | 2,304 | 12,592 | 9,214 | ||||||||||||
Total assets | $ | 380,430 | $ | 294,011 | $ | 520,487 | $ | 481,569 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
Debt | $ | 72,865 | $ | 80,395 | $ | 110,168 | $ | 122,354 | ||||||||
Accrued expenses and other liabilities | 1,383 | 841 | 3,205 | 2,201 | ||||||||||||
ESOP-owned shares | — | 58,195 | ||||||||||||||
Stockholders’ equity | 306,182 | 154,580 | 407,114 | 357,014 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 380,430 | $ | 294,011 | $ | 520,487 | $ | 481,569 |
Years Ended December 31, | Year Ended December 31, | |||||||||||||||||||
2019 | 2018 | 2023 | 2022 | 2021 | ||||||||||||||||
Dividends | $ | 10,000 | $ | 17,500 | $ | 35,000 | $ | 40,375 | $ | 48,250 | ||||||||||
Other income | 64 | 60 | 100 | 52 | 26 | |||||||||||||||
ESOP Contribution | (1,800 | ) | (2,000 | ) | ||||||||||||||||
Interest expense | (3,562 | ) | (2,870 | ) | (7,294 | ) | (5,689 | ) | (4,936 | ) | ||||||||||
Other expense | (2,221 | ) | (1,001 | ) | (1,897 | ) | (1,768 | ) | (1,466 | ) | ||||||||||
Income before income tax and undistributed subsidiary income | 2,481 | 11,689 | 25,909 | 32,970 | 41,874 | |||||||||||||||
Income tax (benefit) | (1,498 | ) | (800 | ) | ||||||||||||||||
Income tax benefit | (1,904 | ) | (1,555 | ) | (1,339 | ) | ||||||||||||||
Equity in undistributed subsidiary income | 25,241 | 16,801 | 34,932 | 23,715 | 15,401 | |||||||||||||||
Net Income | $ | 29,220 | $ | 29,290 | ||||||||||||||||
Net income | $ | 62,745 | $ | 58,240 | $ | 58,614 |
Years Ended December 31, | Year Ended December 31, | |||||||||||||||||||
2019 | 2018 | 2023 | 2022 | 2021 | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income | $ | 29,220 | $ | 29,290 | $ | 62,745 | $ | 58,240 | $ | 58,614 | ||||||||||
Adjustments: | ||||||||||||||||||||
Equity in undistributed subsidiary income | (25,241 | ) | (16,801 | ) | (34,932 | ) | (23,715 | ) | (15,401 | ) | ||||||||||
Amortization of debt issuance costs | 186 | 186 | 186 | |||||||||||||||||
Stock based compensation | 853 | — | 2,157 | 2,753 | 1,639 | |||||||||||||||
Change in other assets | (1,601 | ) | (456 | ) | (3,378 | ) | (3,201 | ) | (1,765 | ) | ||||||||||
Change in other liabilities | 541 | 468 | 1,004 | 369 | 317 | |||||||||||||||
Release of unearned ESOP shares | — | — | ||||||||||||||||||
Net cash from operating activities | 3,772 | 12,501 | ||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Return of capital from subsidiary | — | 2,500 | ||||||||||||||||||
Cash paid in WTSB business combination | (76,100 | ) | — | |||||||||||||||||
Net cash from investing activities | (76,100 | ) | 2,500 | |||||||||||||||||
Net cash provided by operating activities | 27,782 | 34,632 | 43,590 | |||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from long-term borrowings | — | 13,115 | ||||||||||||||||||
Repayments of long-term borrowings | (7,530 | ) | — | (12,372 | ) | — | — | |||||||||||||
Issuance of common stock | 51,392 | — | ||||||||||||||||||
Payments to tax authorities for stock-based compensation | (351 | ) | — | (731 | ) | (1,168 | ) | (625 | ) | |||||||||||
Share based liability conversion | 11,450 | — | ||||||||||||||||||
Cash dividends on common stock | (1,079 | ) | (30,045 | ) | ||||||||||||||||
Net cash from financing activities | 53,882 | (16,930 | ) | |||||||||||||||||
Payments to repurchase common stock | (17,763 | ) | (22,699 | ) | (9,227 | ) | ||||||||||||||
Cash dividends paid on common stock | (8,745 | ) | (8,012 | ) | (5,385 | ) | ||||||||||||||
Net cash provided by (used in) financing activities | (39,611 | ) | (31,879 | ) | (15,237 | ) | ||||||||||||||
Net change in cash and cash equivalents | (18,446 | ) | (1,929 | ) | (11,829 | ) | 2,753 | 28,353 | ||||||||||||
Beginning cash and cash equivalents | 22,627 | 24,556 | 98,996 | 96,243 | 67,890 | |||||||||||||||
Ending cash and cash equivalents | $ | 4,181 | $ | 22,627 | $ | 87,167 | $ | 98,996 | $ | 96,243 |
December 31, | December 31, | |||||||||||||||||||
2019 | 2018 | 2023 | 2022 | 2021 | ||||||||||||||||
Net income | $ | 29,220 | $ | 29,290 | $ | 62,745 | $ | 58,240 | $ | 58,614 | ||||||||||
Weighted average common shares outstanding - basic | 16,818,697 | 14,771,520 | 16,843,753 | 17,373,138 | 17,953,624 | |||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||
Stock based compensation awards | 489,459 | 646,690 | 538,594 | |||||||||||||||||
Weighted average common shares outstanding - diluted | 17,040,550 | 14,771,520 | 17,333,212 | 18,019,828 | 18,492,218 | |||||||||||||||
Basic earnings per share | $ | 1.74 | $ | 1.98 | $ | 3.73 | $ | 3.35 | $ | 3.26 | ||||||||||
Diluted earnings per share | $ | 1.71 | $ | 1.98 | $ | 3.62 | $ | 3.23 | $ | 3.17 |
20. | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
Gains and (Losses) on Fair Value Hedges | Unrealized Gains and (Losses) on Securities Available for Sale | Total | ||||||||||
For the Year Ended December 31, 2023 | ||||||||||||
Beginning balance | $ | 16,072 | $ | (81,180 | ) | $ | (65,108 | ) | ||||
Other comprehensive income (loss) before reclassification | (2,912 | ) | 13,653 | 10,741 | ||||||||
Amounts reclassified from other comprehensive | — | 2,693 | 2,693 | |||||||||
Net current period other comprehensive income (loss) | (2,912 | ) | 16,346 | 13,434 | ||||||||
Ending balance | $ | 13,160 | $ | (64,834 | ) | $ | (51,674 | ) | ||||
For the Year Ended December 31, 2022 | ||||||||||||
Beginning balance | $ | 4,532 | $ | 9,170 | $ | 13,702 | ||||||
Other comprehensive income (loss) before reclassification | 11,540 | (90,350 | ) | (78,810 | ) | |||||||
Amounts reclassified from other comprehensive | — | — | — | |||||||||
Net current period other comprehensive income (loss) | 11,540 | (90,350 | ) | (78,810 | ) | |||||||
Ending balance | $ | 16,072 | $ | (81,180 | ) | $ | (65,108 | ) | ||||
For the Year Ended December 31, 2021 | ||||||||||||
Beginning balance | $ | (60 | ) | $ | 21,399 | $ | 21,339 | |||||
Other comprehensive income (loss) before reclassification | 4,592 | (12,229 | ) | (7,637 | ) | |||||||
Amounts reclassified from other comprehensive | — | — | — | |||||||||
Net current period other comprehensive income (loss) | 4,592 | (12,229 | ) | (7,637 | ) | |||||||
Ending balance | $ | 4,532 | $ | 9,170 | $ | 13,702 |
Banking | Insurance | Consolidated | ||||||||||
2019 | ||||||||||||
Net interest income | $ | 104,575 | $ | — | $ | 104,575 | ||||||
Provision for loan loss | (2,799 | ) | — | (2,799 | ) | |||||||
Noninterest income | 49,834 | 6,799 | 56,633 | |||||||||
Noninterest expense | (117,160 | ) | (4,548 | ) | (121,708 | ) | ||||||
Income before income taxes | 34,450 | 2,251 | 36,701 | |||||||||
Income tax (expense) benefit | (7,097 | ) | (384 | ) | (7,481 | ) | ||||||
Net income | $ | 27,353 | $ | 1,867 | $ | 29,220 | ||||||
Total assets | $ | 3,224,396 | $ | 12,771 | $ | 3,237,167 |
Banking | Insurance | Consolidated | ||||||||||
2018 | ||||||||||||
Net interest income (expense) | $ | 95,612 | $ | — | $ | 95,612 | ||||||
Provision for loan loss | (6,901 | ) | — | (6,901 | ) | |||||||
Noninterest income | 45,247 | 6,874 | 52,121 | |||||||||
Noninterest expense | (111,104 | ) | (4,339 | ) | (115,443 | ) | ||||||
Income before income taxes | 22,854 | 2,535 | 25,389 | |||||||||
Income tax (expense) benefit | 4,129 | (228 | ) | 3,901 | ||||||||
Net income | $ | 26,983 | $ | 2,307 | $ | 29,290 | ||||||
Total assets | $ | 2,701,600 | $ | 11,145 | $ | 2,712,745 |
21. | FAIR VALUE DISCLOSURES |
● | Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. |
● | Level 2 Inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. |
● | Level 3 Inputs - Significant |
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||||||||||||||
Assets (liabilities) measured at fair value on a recurring basis: | ||||||||||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||||||
U.S. government and agencies | $ | — | $ | 4,807 | $ | — | $ | 4,807 | ||||||||||||||||||||||||
State and municipal | — | 94,692 | — | 94,692 | $ | — | $ | 180,575 | $ | — | $ | 180,575 | ||||||||||||||||||||
Mortgage-backed securities | — | 571,805 | — | 571,805 | ||||||||||||||||||||||||||||
Residential mortgage-backed securities | — | 300,704 | — | 300,704 | ||||||||||||||||||||||||||||
Commercial mortgage-backed securities | — | 41,748 | — | 41,748 | ||||||||||||||||||||||||||||
Commercial collateralized mortgage obligations | — | 71,930 | — | 71,930 | ||||||||||||||||||||||||||||
Asset-backed and other amortizing securities | — | 36,346 | — | 36,346 | — | 17,040 | — | 17,040 | ||||||||||||||||||||||||
Other securities | — | 10,765 | — | 10,765 | ||||||||||||||||||||||||||||
Loans held for sale (mandatory) | — | 32,809 | — | 32,809 | — | 6,615 | — | 6,615 | ||||||||||||||||||||||||
Mortgage servicing rights | — | 2,054 | — | 2,054 | — | — | 26,569 | 26,569 | ||||||||||||||||||||||||
Asset derivatives | — | 814 | — | 814 | — | 17,230 | — | 17,230 | ||||||||||||||||||||||||
Liability derivatives | — | (492 | ) | — | (492 | ) | — | (432 | ) | — | (432 | ) | ||||||||||||||||||||
Assets measured at fair value on a non-recurring basis: | ||||||||||||||||||||||||||||||||
Impaired loans | — | — | 3,642 | 3,642 | ||||||||||||||||||||||||||||
Other real estate owned | — | — | 1,883 | 1,883 | ||||||||||||||||||||||||||||
Loans held for sale (best efforts) | — | 16,226 | — | 16,226 | ||||||||||||||||||||||||||||
Loans held for investment | — | — | 1,482 | 1,482 |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
2018 | ||||||||||||||||
Assets (liabilities) measured at fair value on a recurring basis: | ||||||||||||||||
Securities available for sale: | ||||||||||||||||
U.S. government and agencies | $ | 74,419 | $ | 10,288 | $ | — | $ | 84,707 | ||||||||
State and municipal | — | 32,310 | — | 32,310 | ||||||||||||
Mortgage-backed securities | — | 182,256 | — | 182,256 | ||||||||||||
Asset-backed and other amortizing securities | — | 38,923 | — | 38,923 | ||||||||||||
Loans held for sale (mandatory) | — | 31,874 | — | 31,874 | ||||||||||||
Mortgage servicing rights | — | 1,270 | — | 1,270 | ||||||||||||
Asset derivatives | — | 1,232 | — | 1,232 | ||||||||||||
Liability derivatives | — | (672 | ) | — | (672 | ) | ||||||||||
Assets measured at fair value on a non-recurring basis: | ||||||||||||||||
Impaired loans | — | — | 9,119 | 9,119 | ||||||||||||
Other real estate owned | — | — | 2,285 | 2,285 | ||||||||||||
Loans held for sale (best efforts) | — | 6,508 | — | 6,508 |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
December 31, 2022 | ||||||||||||||||
Assets (liabilities) measured at fair value on a recurring basis: | ||||||||||||||||
Securities available for sale: | ||||||||||||||||
State and municipal | $ | — | $ | 225,055 | $ | — | $ | 225,055 | ||||||||
Residential mortgage-backed securities | — | 328,845 | — | 328,845 | ||||||||||||
Commercial mortgage-backed securities | — | 41,967 | — | 41,967 | ||||||||||||
Commercial collateralized mortgage obligations | — | 75,638 | — | 75,638 | ||||||||||||
Asset-backed and other amortizing securities | — | 19,094 | — | 19,094 | ||||||||||||
Other securities | — | 11,112 | — | 11,112 | ||||||||||||
Loans held for sale (mandatory) | — | 10,038 | — | 10,038 | ||||||||||||
Mortgage servicing rights | — | — | 27,474 | 27,474 | ||||||||||||
Asset derivatives | — | 21,162 | — | 21,162 | ||||||||||||
Liability derivatives | — | (128 | ) | — | (128 | ) | ||||||||||
Assets measured at fair value on a non-recurring basis: | ||||||||||||||||
Loans held for investment | — | — | 4,821 | 4,821 |
Fair Value | Valuation Techniques | Unobservable Inputs | Range of Discounts | ||||||||
2019 | |||||||||||
Impaired loans | $ | 3,642 | Third party appraisals or inspections | Collateral discounts and selling costs | 0%-100 | % | |||||
Other real estate owned | 1,883 | Third party appraisals or inspections | Collateral discounts and selling costs | 15%-66 | % | ||||||
2018 | |||||||||||
Impaired loans | $ | 9,119 | Third party appraisals or inspections | Collateral discounts and selling costs | 0%-100 | % | |||||
Other real estate owned | 2,285 | Third party appraisals or inspections | Collateral discounts and selling costs | 15%-66 | % |
Fair Value | Valuation Techniques | Unobservable Inputs | Range of Discounts | ||||||||
December 31, 2023 | |||||||||||
Non-recurring | |||||||||||
Loans held for investment | $ | 1,482 | Third party appraisals or inspections | Collateral discounts and selling costs | 20%-100 | % | |||||
Recurring: | |||||||||||
Mortgage servicing rights | 26,569 | Discounted cash flows | Constant prepayment rate | 7.46 | % | ||||||
Discount rate | 10.66 | % | |||||||||
December 31, 2022 | |||||||||||
Non-recurring | |||||||||||
Loans held for investment | $ | 4,821 | Third party appraisals or inspections | Collateral discounts and selling costs | 20%-100 | % | |||||
Recurring: | |||||||||||
Mortgage servicing rights | 27,474 | Discounted cash flows | Constant prepayment rate | 7.47 | % | ||||||
Discount rate | 9.15 | % |
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | Carrying Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 158,099 | $ | 158,099 | $ | — | $ | — | $ | 158,099 | $ | 330,158 | $ | 330,158 | $ | — | $ | — | $ | 330,158 | ||||||||||||||||||||
Loans, net | 2,119,426 | — | — | 2,123,289 | 2,123,289 | |||||||||||||||||||||||||||||||||||
Loans held for investment, net | 2,971,797 | — | — | 2,848,536 | 2,848,536 | |||||||||||||||||||||||||||||||||||
Loans held for sale (best efforts) | 7,884 | — | 7,977 | — | 7,977 | |||||||||||||||||||||||||||||||||||
Accrued interest receivable | 13,924 | — | 13,924 | — | 13,924 | 20,881 | — | 20,881 | — | 20,881 | ||||||||||||||||||||||||||||||
Bank-owned life insurance | 69,397 | — | 69,397 | — | 69,397 | |||||||||||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||||||||||
Deposits | 2,696,857 | 2,354,999 | 346,194 | — | 2,701,193 | 3,626,153 | — | 3,625,321 | — | 3,625,321 | ||||||||||||||||||||||||||||||
Accrued interest payable | 2,283 | — | 2,283 | — | 2,283 | 5,057 | — | 5,057 | — | 5,057 | ||||||||||||||||||||||||||||||
Notes payable & other borrowings | 95,000 | — | 95,000 | — | 95,000 | |||||||||||||||||||||||||||||||||||
Junior subordinated deferrable interest debentures | 46,393 | — | 46,393 | — | 46,393 | 46,393 | — | 33,098 | — | 33,098 | ||||||||||||||||||||||||||||||
Subordinated debt securities | 26,472 | — | 26,472 | — | 26,472 | |||||||||||||||||||||||||||||||||||
Subordinated debt | 63,775 | — | 57,497 | — | 57,497 |
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | Carrying Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 245,989 | $ | 245,989 | $ | — | $ | — | $ | 245,989 | $ | 234,883 | $ | 234,883 | $ | — | $ | — | $ | 234,883 | ||||||||||||||||||||
Loans, net | 1,934,071 | — | — | 1,923,830 | 1,923,830 | |||||||||||||||||||||||||||||||||||
Loans held for investment, net | 2,708,793 | — | — | 2,662,609 | 2,662,609 | |||||||||||||||||||||||||||||||||||
Loans held for sale (best efforts) | 20,365 | — | 20,745 | — | 20,745 | |||||||||||||||||||||||||||||||||||
Accrued interest receivable | 12,957 | — | 12,957 | — | 12,957 | 16,432 | — | 16,432 | — | 16,432 | ||||||||||||||||||||||||||||||
Bank-owned life insurance | 57,172 | — | 57,172 | — | 57,172 | |||||||||||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||||||||||
Deposits | 2,277,454 | 1,965,925 | 299,423 | — | 2,265,348 | 3,406,430 | — | 3,405,222 | — | 3,405,222 | ||||||||||||||||||||||||||||||
Accrued interest payable | 2,042 | — | 2,042 | — | 2,042 | 2,836 | — | 2,836 | — | 2,836 | ||||||||||||||||||||||||||||||
Notes payable & other borrowings | 95,000 | — | 95,000 | — | 95,000 | |||||||||||||||||||||||||||||||||||
Junior subordinated deferrable interest debentures | 46,393 | — | 46,393 | — | 46,393 | 46,393 | — | 34,606 | — | 34,606 | ||||||||||||||||||||||||||||||
Subordinated debt securities | 34,002 | — | 34,002 | — | 34,002 | |||||||||||||||||||||||||||||||||||
Subordinated debt | 75,961 | — | 70,835 | — | 70,835 |
Cash paid | $ | 2,800 | ||
Assets acquired: | ||||
Premises and equipment, net | $ | 8 | ||
Customer list | 1,800 | |||
Other intangible assets | 509 | |||
Other assets | 290 | |||
Total assets acquired | $ | 2,607 | ||
Goodwill recorded in acquisition | $ | 193 |
Year Ended December 31, 2022 | ||||||||||||
As Reported | Immaterial Correction | As Corrected | ||||||||||
Proceeds from sales of loans held for sale | $ | 783,212 | $ | (120,918 | ) | $ | 662,294 | |||||
Loans originated for sale | $ | (719,413 | ) | $ | 120,918 | $ | (598,495 | ) |
Year Ended December 31, 2021 | ||||||||||||
As Reported | Immaterial Correction | As Corrected | ||||||||||
Proceeds from sales of loans held for sale | $ | 1,577,953 | $ | (63,992 | ) | $ | 1,513,961 | |||||
Loans originated for sale | $ | (1,500,995 | ) | $ | 63,992 | $ | (1,437,003 | ) |
Cash paid | $ | 76,100 | ||
Assets acquired: | ||||
Cash and cash equivalents | $ | 77,903 | ||
Interest-bearing time deposits in banks | 52,700 | |||
Federal funds purchased | 26,468 | |||
Securities available for sale | 68,398 | |||
Loans held for investment | 196,178 | |||
Bank-owned life insurance | 10,932 | |||
Premises and equipment, net | 4,132 | |||
Accrued interest receivable | 1,114 | |||
Core deposit intangible | 6,679 | |||
Other assets | 2,648 | |||
Total assets acquired | $ | 447,152 | ||
�� | ||||
Liabilities assumed | ||||
Deposits | $ | 386,176 | ||
Accrued interest payable | 55 | |||
Deferred tax liability | 961 | |||
Other liabilities | 2,424 | |||
Total liabilities assumed | $ | 389,616 | ||
Net assets acquired | $ | 57,536 | ||
Goodwill recorded in acquisition | $ | 18,564 |
23. | SUBSEQUENT EVENTS |
Years Ended December 31, | ||||||||
2019 | 2018 | |||||||
Interest income | $ | 148,287 | $ | 135,249 | ||||
Noninterest income | 59,785 | 54,208 | ||||||
Total Revenue | 208,072 | 189,457 | ||||||
Net income | $ | 29,643 | $ | 33,785 | ||||
Basic earnings per share | $ | 1.90 | $ | 2.29 | ||||
Diluted earnings per share | $ | 1.89 | $ | 2.29 |
Other Information. |
Item 9C. | Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. |
Exhibits, Financial Statement Schedules. |
(1) | The consolidated financial statements, notes thereto and independent auditors’ report thereon, filed as part hereof, are listed in Item 8. |
(2) | All financial statement schedules are omitted because they are not required or applicable, or the required information is shown in the consolidated financial statements or the notes thereto. |
(3) | Exhibits |
Exhibit No. | Description | |
Agreement and Plan of Merger by and between South Plains Financial, Inc., SPFI Merger Sub, Inc., City Bank, and West Texas State Bank, dated as of July 25, 2019, (incorporated herein by reference to Exhibit 2.1 to the Current Report on Form 8-K filed with the SEC on July 25, 2019 (File No. 38895)) (schedules to which have been omitted pursuant to Item 601(b)(2) of Regulation S-K and will be provided to the SEC upon request). | ||
Securities Purchase Agreement, dated April 1, 2023, by and among South Plains Financial, Inc., City Bank and Alliant Insurance Services, Inc. (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed with the SEC on April 4, 2023) (File No. 001-38895) (schedules to which have been omitted pursuant to Item 601(b)(2) of Regulation S-K and will be provided to the SEC upon request). | ||
Amended and Restated Certificate of Formation of South Plains Financial, Inc. (incorporated herein by reference to Exhibit 3.1 to the Registration Statement on Form S-1 of South Plains Financial, Inc. (Registration No. 333-230851) filed April 29, 2019). | ||
Second Amended and Restated Bylaws of South Plains Financial, Inc. (incorporated herein by reference to Exhibit | ||
Specimen common stock certificate of South Plains Financial, Inc. (incorporated herein by reference to Exhibit 4.1 to the Registration Statement on Form S-1 of South Plains Financial, Inc. (Registration No. 333-230851) filed April 29, 2019). | ||
Indenture, dated September 29, 2020, by and between South Plains Financial, Inc. and UMB Bank, National Association, as trustee (incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K filed with the SEC on September 30, 2020 (File No. 001-38895)). | ||
Form of Fixed to Floating Rate Subordinated Note due September 30, 2030 (included as Exhibit A-2 to the Indenture incorporated herein by reference as Exhibit 4.2 hereto). | ||
Form of Voting Agreement, dated as of July 25, 2019, by and among South Plains Financial, Inc., West Texas State Bank and the shareholders of West Texas State Bank party thereto (incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on July 25, 2019 (File No. 38895)). | ||
Form of Director Support Agreement, dated as of July 25, 2019, by and among South Plains Financial, Inc. and each non-employee director of West Texas State Bank (incorporated herein by reference to Exhibit | ||
Executive Employment Agreement, dated December 18, 2019, by and between South Plains Financial, Inc., City Bank, and Curtis C. Griffith (incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed | ||
Executive Employment Agreement, dated March 6, 2019, by and between South Plains Financial, Inc. and Cory T. Newsom (incorporated herein by reference to Exhibit 10.4 to the Registration Statement on Form S-1/A of South Plains Financial, Inc. (Registration No. 333-230851) filed April 29, 2019). | ||
Amendment No. 1 to Executive Employment Agreement, dated December 15, 2021, by and among City Bank, Curtis C. Griffith and South Plains Financial, Inc. (incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on December 21, 2021 (File No. 001-38895)). | ||
10.6† | Amendment No. 1 to Executive Employment Agreement, dated December 15, 2021, by and among City Bank, Cory T. Newsom and South Plains Financial, Inc. (incorporated herein by reference to Exhibit 10.2 to the Current Report on Form 8-K filed with the SEC on December 21, 2021 (File No. 001-38895)). |
10.7† | South Plains Financial, Inc. 2019 Equity Incentive Plan (incorporated herein by reference to Exhibit 10.1 to the Registration Statement on Form S-1/A of South Plains Financial, Inc. (Registration No. 333-230851) filed April 29, 2019). | |
Form of Stock Option Award Agreement under the South Plains Financial, Inc. 2019 Equity Incentive Plan (incorporated herein by reference to Exhibit 10.2 to the Registration Statement on Form S-1/A of South Plains Financial, Inc. (Registration No. 333-230851) filed April 29, 2019). | ||
Form of Restricted Stock Unit Award Agreement under the South Plains Financial, Inc. 2019 Equity Incentive Plan (incorporated herein by reference to Exhibit 10.3 to the Registration Statement on Form S-1 of South Plains Financial, Inc. (Registration No. 333-230851) filed April 29, 2019). | ||
Form of Indemnification Agreement (incorporated herein by reference to Exhibit 10.9 to the Registration Statement on Form S-1/A of South Plains Financial, Inc. (Registration No. 333-230851) filed April 29, 2019). | ||
Nonqualified Deferred Compensation Plan Basic Plan Document. | ||
Deferred Compensation Plan Adoption Agreement of Cory T. Newsom (incorporated herein by reference to Exhibit 10.5 to the Registration Statement on Form S-1/A of South Plains Financial, Inc. (Registration No. 333-230851) filed April 29, 2019). |
Joint Beneficiary Designation Agreement of Cory Newsom, effective January 1, 2008 (incorporated herein by reference to Exhibit 10.6 to the Registration Statement on Form S-1/A of South Plains Financial, Inc. (Registration No. 333-230851) filed April 29, 2019). | ||
Joint Beneficiary Designation Agreement of Cory Newsom, effective April 1, 2014 (incorporated herein by reference to Exhibit 10.7 to the Registration Statement on Form S-1/A of South Plains Financial, Inc. (Registration No. 333-230851) filed April 29, 2019). | ||
Board Representation Agreement between South Plains Financial, Inc. and James C. Henry (incorporated herein by reference to Exhibit 10.8 to the Registration Statement on Form S-1/A of South Plains Financial, Inc. (Registration No. 333-230851) filed April 29, 2019). | ||
Form of Note Purchase Agreement, dated as of September 29, 2020, by and among South Plains Financial, Inc. and the Purchasers (incorporated herein by reference to Exhibit 10.1 of the Current Report on Form 8-K filed with the SEC on September 30, 2020 (File No. 001-38895)). | ||
Form of Registration Rights Agreement, dated as of September 29, 2020, by and among South Plains Financial, Inc. and the Purchasers (incorporated herein by reference to Exhibit 10.2 of the Current Report on Form 8-K filed with the SEC on September 30, 2020 (File No. 001-38895)). | ||
Deferred Compensation Plan Adoption Agreement of Steven Crockett, effective January 1, 2008, as amended effective January 1, 2015. | ||
Second Amendment to Steven Crockett Deferred Compensation Plan Adoption Agreement, effective March 15, 2024. | ||
Letter from Weaver and Tidwell, L.L.P., dated October 26, 2021, to the U.S. Securities and Exchange Commission (incorporated herein by reference to Exhibit 16.1 of the Current Report on form 8-K filed with the SEC on October 26, 2021 (File No. 001-38895)). | ||
Letter from Weaver and Tidwell, L.L.P., dated March 11, 2022, to the U.S. Securities and Exchange Commission (incorporated herein by reference to Exhibit 16.1 of the Current Report on form 8-K filed with the SEC on March 11, 2022 (File No. 001-38895)). | ||
Subsidiaries of South Plains Financial, Inc. | ||
Consent of FORVIS. | ||
Consent of Weaver and Tidwell, LLP. | ||
Certification by Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended. | ||
Certification by Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended. | ||
Section 1350 Certification of Chief Executive Officer. | ||
Section 1350 Certification of Chief Financial Officer. | ||
101.INS* | Inline XBRL Instance Document (the instance document does not appear in the | |
101.SCH* | Inline XBRL Taxonomy Extension Schema Document. | |
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |
104* | Cover Page Interactive Data File (formatted as inline XBRL and contained in |
* | Filed with this Annual Report on Form 10-K. |
** | Furnished with this Annual Report on Form 10-K. |
† | Indicates a management contract or compensatory plan. |
South Plains Financial, Inc. | ||
Date: March | By: | /s/ Curtis C. Griffith |
Curtis C. Griffith | ||
Chairman and Chief Executive Officer | ||
Signature | Title | Date | ||
/s/ Curtis C. Griffith | ||||
Curtis C. Griffith | Director (Chairman); Chief Executive Officer (principal executive officer) | March | ||
/s/ Cory T. Newsom | ||||
Cory T. Newsom | Director and President | March | ||
/s/ Steven B. Crockett | ||||
Steven B. Crockett | Chief Financial Officer and Treasurer (principal financial and accounting officer) | March | ||
/s/ Richard D. Campbell | ||||
Richard D. Campbell | Director | March | ||
/s/ Noe G. Valles | ||||
Noe G. Valles | Director | March | ||
/s/ Kyle R. Wargo | ||||
Kyle R. Wargo | Director | March | ||
/s/ LaDana R. Washburn | ||||
LaDana R. Washburn | Director | March 15, 2024 |