☒ | |||||
☐ | |||||
Title of Each Class | Trading Symbol | Name of each exchange on which registered | ||||||
Common Stock, par value $1.00 per share | HTLF | Nasdaq Stock Market | ||||||
Depositary Shares, each representing 1/400th interest in a share of 7.00% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series E | HTLFP | Nasdaq Stock Market |
Large accelerated filer | ☒ | Accelerated Filer | ☐ | ||||||||||||
Non-accelerated filer | |||||||||||||||
☐ | Smaller reporting company | ☐ | |||||||||||||
Emerging growth company | ☐ |
Part I | |||||
Part II | |||||
HEARTLAND FINANCIAL USA, INC. CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except per share data) | |||||||||||
March 31, 2023 (Unaudited) | December 31, 2022 | ||||||||||
ASSETS | |||||||||||
Cash and due from banks | $ | 274,354 | $ | 309,045 | |||||||
Interest bearing deposits with other banks and other short-term investments | 87,757 | 54,042 | |||||||||
Cash and cash equivalents | 362,111 | 363,087 | |||||||||
Time deposits in other financial institutions | 1,740 | 1,740 | |||||||||
Securities: | |||||||||||
Carried at fair value (cost of $6,670,971 at March 31, 2023, and $6,788,729 at December 31, 2022) | 6,096,657 | 6,147,144 | |||||||||
Held to maturity, net of allowance for credit losses of $0 at both March 31, 2023, and December 31, 2022 (fair value of $815,672 at March 31, 2023, and $776,557 at December 31, 2022) | 832,098 | 829,403 | |||||||||
Other investments, at cost | 72,364 | 74,567 | |||||||||
Loans held for sale | 10,425 | 5,277 | |||||||||
Loans receivable: | |||||||||||
Held to maturity | 11,495,353 | 11,428,352 | |||||||||
Allowance for credit losses | (112,707) | (109,483) | |||||||||
Loans receivable, net | 11,382,646 | 11,318,869 | |||||||||
Premises, furniture and equipment, net | 186,868 | 190,479 | |||||||||
Premises, furniture and equipment held for sale | 4,399 | 6,851 | |||||||||
Other real estate, net | 7,438 | 8,401 | |||||||||
Goodwill | 576,005 | 576,005 | |||||||||
Core deposit intangibles and customer relationship intangibles, net | 23,366 | 25,154 | |||||||||
Servicing rights, net | — | 7,840 | |||||||||
Cash surrender value on life insurance | 194,419 | 193,403 | |||||||||
Other assets | 432,008 | 496,008 | |||||||||
TOTAL ASSETS | $ | 20,182,544 | $ | 20,244,228 | |||||||
LIABILITIES AND EQUITY | |||||||||||
LIABILITIES: | |||||||||||
Deposits: | |||||||||||
Demand | $ | 5,119,554 | $ | 5,701,340 | |||||||
Savings | 9,256,609 | 9,994,391 | |||||||||
Time | 3,305,183 | 1,817,278 | |||||||||
Total deposits | 17,681,346 | 17,513,009 | |||||||||
Short-term borrowings | 92,337 | 376,117 | |||||||||
Other borrowings | 372,097 | 371,753 | |||||||||
Accrued expenses and other liabilities | 207,359 | 248,294 | |||||||||
TOTAL LIABILITIES | 18,353,139 | 18,509,173 | |||||||||
STOCKHOLDERS' EQUITY: | |||||||||||
Preferred stock (par value $1 per share; authorized 6,104 shares at both March 31, 2023, and December 31, 2022; none issued or outstanding at both March 31, 2023, and December 31, 2022) | — | — | |||||||||
Series A Junior Participating preferred stock (par value $1 per share; authorized 16,000 shares; none issued or outstanding at both March 31, 2023, and December 31, 2022) | — | — | |||||||||
Series B Fixed Rate Cumulative Perpetual Preferred Stock (par value $1 per share; 81,698 shares authorized at both March 31, 2023, and December 31, 2022; none issued or outstanding at both March 31, 2023, and December 31, 2022) | — | — | |||||||||
Series C Senior Non-Cumulative Perpetual Preferred Stock (par value $1 per share; 81,698 shares authorized at both March 31, 2023, and December 31, 2022; none issued or outstanding at both March 31, 2023, and December 31, 2022) | — | — | |||||||||
Series D Senior Non-Cumulative Perpetual Convertible Preferred Stock (par value $1 per share; 3,000 shares authorized at both March 31, 2023, and December 31, 2022; none issued or outstanding at both March 31, 2023, and December 31, 2022) | — | — | |||||||||
Series E Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock (par value $1 per share; 11,500 shares authorized at both March 31, 2023, and December 31, 2022; 11,500 shares issued and outstanding at both March 31, 2023 and December 31, 2022) | 110,705 | 110,705 | |||||||||
Common stock (par value $1 per share; 60,000,000 shares authorized at both March 31, 2023, and December 31, 2022; issued 42,558,726 shares at March 31, 2023, and 42,467,394 shares at December 31, 2022) | 42,559 | 42,467 | |||||||||
Capital surplus | 1,084,112 | 1,080,964 | |||||||||
Retained earnings | 1,158,948 | 1,120,925 | |||||||||
Accumulated other comprehensive loss | (566,919) | (620,006) | |||||||||
TOTAL STOCKHOLDERS' EQUITY | 1,829,405 | 1,735,055 | |||||||||
TOTAL LIABILITIES AND EQUITY | $ | 20,182,544 | $ | 20,244,228 | |||||||
See accompanying notes to consolidated financial statements. |
HEARTLAND FINANCIAL USA, INC. CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except per share data) | |||||||
September 30, 2017 (Unaudited) | December 31, 2016 | ||||||
ASSETS | |||||||
Cash and due from banks | $ | 180,751 | $ | 151,290 | |||
Interest bearing deposits with the Federal Reserve Bank and other banks and other short-term investments | 70,985 | 7,434 | |||||
Cash and cash equivalents | 251,736 | 158,724 | |||||
Time deposits in other financial institutions | 19,793 | 2,105 | |||||
Securities: | |||||||
Available for sale, at fair value (cost of $2,124,232 at September 30, 2017, and $1,893,947 at December 31, 2016) | 2,093,385 | 1,845,864 | |||||
Held to maturity, at cost (fair value of $270,386 at September 30, 2017, and $274,799 at December 31, 2016) | 256,355 | 263,662 | |||||
Other investments, at cost | 23,176 | 21,560 | |||||
Loans held for sale | 35,795 | 61,261 | |||||
Loans receivable: | |||||||
Held to maturity | 6,373,415 | 5,351,719 | |||||
Allowance for loan losses | (54,885 | ) | (54,324 | ) | |||
Loans receivable, net | 6,318,530 | 5,297,395 | |||||
Premises, furniture and equipment, net | 174,533 | 163,614 | |||||
Premises, furniture and equipment held for sale | 4,428 | 414 | |||||
Other real estate, net | 13,226 | 9,744 | |||||
Goodwill | 236,615 | 127,699 | |||||
Core deposit intangibles and customer relationship intangibles, net | 37,028 | 22,775 | |||||
Servicing rights, net | 26,599 | 35,778 | |||||
Cash surrender value on life insurance | 142,073 | 112,615 | |||||
Other assets | 122,355 | 123,869 | |||||
TOTAL ASSETS | $ | 9,755,627 | $ | 8,247,079 | |||
LIABILITIES AND EQUITY | |||||||
LIABILITIES: | |||||||
Deposits: | |||||||
Demand | $ | 3,009,940 | $ | 2,202,036 | |||
Savings | 4,227,340 | 3,788,089 | |||||
Time | 994,604 | 857,286 | |||||
Total deposits | 8,231,884 | 6,847,411 | |||||
Short-term borrowings | 171,871 | 306,459 | |||||
Other borrowings | 301,473 | 288,534 | |||||
Accrued expenses and other liabilities | 68,715 | 63,759 | |||||
TOTAL LIABILITIES | 8,773,943 | 7,506,163 | |||||
STOCKHOLDERS' EQUITY: | |||||||
Preferred stock (par value $1 per share; authorized 17,604 shares; none issued or outstanding at both September 30, 2017, and December 31, 2016) | — | — | |||||
Series A Junior Participating preferred stock (par value $1 per share; authorized 16,000 shares; none issued or outstanding at both September 30, 2017, and December 31, 2016) | — | — | |||||
Series C Senior Non-Cumulative Perpetual Preferred Stock (par value $1 per share; 81,698 shares authorized at both September 30, 2017, and December 31, 2016, none issued or outstanding at both September 30, 2017, and December 31, 2016) | — | — | |||||
Series D Senior Non-Cumulative Perpetual Convertible Preferred Stock (par value $1 per share; 3,000 shares authorized at both September 30, 2017, and December 31, 2016; 745 shares issued and outstanding at September 30, 2017, and 1,078 shares issued and outstanding at December 31, 2016) | 938 | 1,357 | |||||
Common stock (par value $1 per share; 40,000,000 shares authorized at September 30, 2017, and 30,000,000 shares authorized at December 31, 2016; issued 29,946,069 shares at September 30, 2017, and 26,119,929 shares at December 31, 2016) | 29,946 | 26,120 | |||||
Capital surplus | 503,262 | 328,376 | |||||
Retained earnings | 468,556 | 416,109 | |||||
Accumulated other comprehensive loss | (21,018 | ) | (31,046 | ) | |||
Treasury stock at cost (0 shares at both September 30, 2017, and December 31, 2016) | — | — | |||||
TOTAL STOCKHOLDERS' EQUITY | 981,684 | 740,916 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 9,755,627 | $ | 8,247,079 | |||
See accompanying notes to consolidated financial statements. |
HEARTLAND FINANCIAL USA, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Dollars in thousands, except per share data) | |||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
INTEREST INCOME: | |||||||||||||||||||||||
Interest and fees on loans | $ | 153,843 | $ | 102,369 | |||||||||||||||||||
Interest on securities: | |||||||||||||||||||||||
Taxable | 55,976 | 32,620 | |||||||||||||||||||||
Nontaxable | 6,028 | 6,202 | |||||||||||||||||||||
Interest on interest bearing deposits in other financial institutions | 1,131 | 71 | |||||||||||||||||||||
TOTAL INTEREST INCOME | 216,978 | 141,262 | |||||||||||||||||||||
INTEREST EXPENSE: | |||||||||||||||||||||||
Interest on deposits | 56,898 | 2,977 | |||||||||||||||||||||
Interest on short-term borrowings | 2,422 | 46 | |||||||||||||||||||||
Interest on other borrowings (includes $591 and $0 of interest expense related to derivatives reclassified from accumulated other comprehensive income (loss) for the three months ended March 31, 2023 and 2022, respectively) | 5,446 | 3,560 | |||||||||||||||||||||
TOTAL INTEREST EXPENSE | 64,766 | 6,583 | |||||||||||||||||||||
NET INTEREST INCOME | 152,212 | 134,679 | |||||||||||||||||||||
Provision for credit losses | 3,074 | 3,245 | |||||||||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 149,138 | 131,434 | |||||||||||||||||||||
NONINTEREST INCOME: | |||||||||||||||||||||||
Service charges and fees | 17,136 | 15,251 | |||||||||||||||||||||
Loan servicing income | 714 | 286 | |||||||||||||||||||||
Trust fees | 5,657 | 6,079 | |||||||||||||||||||||
Brokerage and insurance commissions | 696 | 869 | |||||||||||||||||||||
Capital markets fees | 2,449 | 3,039 | |||||||||||||||||||||
Securities (losses) gains, net (includes $(1,104) and $1,991 of net security (losses) gains reclassified from accumulated other comprehensive income (loss) for the three months ended March 31, 2023 and 2022, respectively) | (1,104) | 2,872 | |||||||||||||||||||||
Unrealized gain (loss) on equity securities, net | 193 | (283) | |||||||||||||||||||||
Net gains on sale of loans held for sale | 1,831 | 3,411 | |||||||||||||||||||||
Valuation adjustment on servicing rights | — | 1,658 | |||||||||||||||||||||
Income on bank owned life insurance | 964 | 524 | |||||||||||||||||||||
Other noninterest income | 1,463 | 863 | |||||||||||||||||||||
TOTAL NONINTEREST INCOME | 29,999 | 34,569 | |||||||||||||||||||||
NONINTEREST EXPENSES: | |||||||||||||||||||||||
Salaries and employee benefits | 62,149 | 66,174 | |||||||||||||||||||||
Occupancy | 7,209 | 7,362 | |||||||||||||||||||||
Furniture and equipment | 2,915 | 3,519 | |||||||||||||||||||||
Professional fees | 16,076 | 15,156 | |||||||||||||||||||||
Advertising | 1,985 | 1,555 | |||||||||||||||||||||
Core deposit and customer relationship intangibles amortization | 1,788 | 2,054 | |||||||||||||||||||||
Other real estate and loan collection expenses | 155 | 195 | |||||||||||||||||||||
Loss on sales/valuations of assets, net | 1,115 | 46 | |||||||||||||||||||||
Acquisition, integration and restructuring costs | 1,673 | 576 | |||||||||||||||||||||
Partnership investment in tax credit projects | 538 | 77 | |||||||||||||||||||||
Other noninterest expenses | 15,440 | 14,083 | |||||||||||||||||||||
TOTAL NONINTEREST EXPENSES | 111,043 | 110,797 | |||||||||||||||||||||
INCOME BEFORE INCOME TAXES | 68,094 | 55,206 | |||||||||||||||||||||
Income taxes (includes $426 and $503 of income tax benefit reclassified from accumulated other comprehensive income (loss) for the three months ended March 31, 2023 and 2022, respectively) | 15,318 | 12,117 | |||||||||||||||||||||
NET INCOME | 52,776 | 43,089 | |||||||||||||||||||||
Preferred dividends | (2,013) | (2,013) | |||||||||||||||||||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 50,763 | $ | 41,076 | |||||||||||||||||||
EARNINGS PER COMMON SHARE - BASIC | $ | 1.19 | $ | 0.97 | |||||||||||||||||||
EARNINGS PER COMMON SHARE - DILUTED | $ | 1.19 | $ | 0.97 | |||||||||||||||||||
CASH DIVIDENDS DECLARED PER COMMON SHARE | $ | 0.30 | $ | 0.27 | |||||||||||||||||||
See accompanying notes to consolidated financial statements. |
HEARTLAND FINANCIAL USA, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Dollars in thousands, except per share data) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
INTEREST INCOME: | |||||||||||||||
Interest and fees on loans | $ | 82,906 | $ | 70,046 | $ | 217,898 | $ | 208,280 | |||||||
Interest on securities: | |||||||||||||||
Taxable | 10,394 | 7,917 | 27,246 | 24,604 | |||||||||||
Nontaxable | 5,086 | 3,717 | 15,297 | 10,793 | |||||||||||
Interest on federal funds sold | 34 | 1 | 37 | 12 | |||||||||||
Interest on interest bearing deposits in other financial institutions | 558 | 6 | 1,112 | 13 | |||||||||||
TOTAL INTEREST INCOME | 98,978 | 81,687 | 261,590 | 243,702 | |||||||||||
INTEREST EXPENSE: | |||||||||||||||
Interest on deposits | 5,073 | 4,001 | 12,966 | 12,195 | |||||||||||
Interest on short-term borrowings | 271 | 235 | 498 | 1,083 | |||||||||||
Interest on other borrowings (includes $308 and $492 of interest expense related to derivatives reclassified from accumulated other comprehensive income for the three months ended September 30, 2017 and 2016, respectively, and $1,005 and $1,463 of interest expense related to derivatives reclassified from accumulated other comprehensive income for the nine months ended September 30, 2017 and 2016, respectively) | 3,790 | 3,770 | 10,674 | 10,918 | |||||||||||
TOTAL INTEREST EXPENSE | 9,134 | 8,006 | 24,138 | 24,196 | |||||||||||
NET INTEREST INCOME | 89,844 | 73,681 | 237,452 | 219,506 | |||||||||||
Provision for loan losses | 5,705 | 5,328 | 10,235 | 9,513 | |||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 84,139 | 68,353 | 227,217 | 209,993 | |||||||||||
NONINTEREST INCOME: | |||||||||||||||
Service charges and fees | 10,138 | 8,278 | 29,291 | 23,462 | |||||||||||
Loan servicing income | 1,161 | 873 | 4,236 | 3,433 | |||||||||||
Trust fees | 3,872 | 3,689 | 11,482 | 11,127 | |||||||||||
Brokerage and insurance commissions | 950 | 1,006 | 2,962 | 2,914 | |||||||||||
Securities gains, net (includes $1,679 and $1,586 of net security gains reclassified from accumulated other comprehensive income for the three months ended September 30, 2017 and 2016, respectively, $5,553 and $9,964 of net security gains reclassified from accumulated other comprehensive income for the nine months ended September 30, 2017 and 2016, respectively) | 1,679 | 1,584 | 5,553 | 9,732 | |||||||||||
Net gains on sale of loans held for sale | 4,997 | 11,459 | 17,961 | 33,794 | |||||||||||
Valuation allowance on commercial servicing rights | 5 | 5 | 29 | (41 | ) | ||||||||||
Income on bank owned life insurance | 766 | 620 | 2,039 | 1,733 | |||||||||||
Other noninterest income | 1,409 | 1,028 | 2,941 | 2,992 | |||||||||||
TOTAL NONINTEREST INCOME | 24,977 | 28,542 | 76,494 | 89,146 | |||||||||||
NONINTEREST EXPENSES: | |||||||||||||||
Salaries and employee benefits | 45,225 | 40,733 | 128,118 | 124,432 | |||||||||||
Occupancy | 6,223 | 5,099 | 16,352 | 15,322 | |||||||||||
Furniture and equipment | 2,826 | 2,746 | 7,913 | 7,301 | |||||||||||
Professional fees | 8,450 | 5,985 | 24,342 | 20,481 | |||||||||||
FDIC insurance assessments | 894 | 1,180 | 2,610 | 3,468 | |||||||||||
Advertising | 1,358 | 1,339 | 5,141 | 4,174 | |||||||||||
Core deposit intangibles and customer relationship intangibles amortization | 1,863 | 1,291 | 4,252 | 4,483 | |||||||||||
Other real estate and loan collection expenses | 581 | 640 | 1,774 | 1,871 | |||||||||||
Loss on sales/valuations of assets, net | 1,342 | 794 | 1,642 | 1,064 | |||||||||||
Other noninterest expenses | 9,997 | 8,620 | 27,653 | 27,160 | |||||||||||
TOTAL NONINTEREST EXPENSES | 78,759 | 68,427 | 219,797 | 209,756 | |||||||||||
INCOME BEFORE INCOME TAXES | 30,357 | 28,468 | 83,914 | 89,383 | |||||||||||
Income taxes (includes $511 and $408 of income tax expense reclassified from accumulated other comprehensive income for the three months ended September 30, 2017 and 2016, respectively, $1,696 and $3,171 of income tax expense reclassified from accumulated other comprehensive income for the nine months ended September 30, 2017 and 2016, respectively) | 8,725 | 8,260 | 22,314 | 28,196 | |||||||||||
NET INCOME | 21,632 | 20,208 | 61,600 | 61,187 | |||||||||||
Preferred dividends | (13 | ) | (53 | ) | (45 | ) | (273 | ) | |||||||
Interest expense on convertible preferred debt | 3 | 17 | 12 | 48 | |||||||||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ | 21,622 | $ | 20,172 | $ | 61,567 | $ | 60,962 | |||||||
EARNINGS PER COMMON SHARE - BASIC | $ | 0.73 | $ | 0.82 | $ | 2.23 | $ | 2.51 | |||||||
EARNINGS PER COMMON SHARE - DILUTED | $ | 0.72 | $ | 0.81 | $ | 2.21 | $ | 2.48 | |||||||
CASH DIVIDENDS DECLARED PER COMMON SHARE | $ | 0.11 | $ | 0.10 | $ | 0.33 | $ | 0.30 | |||||||
See accompanying notes to consolidated financial statements. |
HEARTLAND FINANCIAL USA, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Dollars in thousands) | |||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
NET INCOME | $ | 52,776 | $ | 43,089 | |||||||||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||
Changes in available for sale securities: | |||||||||||||||||||||||
Net change in unrealized gain (loss) on securities | 66,167 | (378,690) | |||||||||||||||||||||
Reclassification adjustment for net (gains) losses realized in net income | 1,104 | (1,991) | |||||||||||||||||||||
Income tax (expense) benefit | (17,921) | 99,370 | |||||||||||||||||||||
Other comprehensive income (loss) on available for sale securities | 49,350 | (281,311) | |||||||||||||||||||||
Changes in securities held to maturity: | |||||||||||||||||||||||
Net amortization of unrealized losses on securities transferred from AFS | 2,740 | — | |||||||||||||||||||||
Income tax expense | (1,060) | — | |||||||||||||||||||||
Other comprehensive income on held to maturity securities | 1,680 | — | |||||||||||||||||||||
Change in cash flow hedges: | |||||||||||||||||||||||
Net change in unrealized gain on derivatives | 1,952 | — | |||||||||||||||||||||
Reclassification adjustment for net losses on derivatives realized in net income | 764 | 181 | |||||||||||||||||||||
Income taxes | (659) | (39) | |||||||||||||||||||||
Other comprehensive income on cash flow hedges | 2,057 | 142 | |||||||||||||||||||||
Other comprehensive income (loss) | 53,087 | (281,169) | |||||||||||||||||||||
TOTAL COMPREHENSIVE INCOME (LOSS) | $ | 105,863 | $ | (238,080) | |||||||||||||||||||
See accompanying notes to consolidated financial statements. |
HEARTLAND FINANCIAL USA, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Dollars in thousands) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
NET INCOME | $ | 21,632 | $ | 20,208 | $ | 61,600 | $ | 61,187 | |||||||
OTHER COMPREHENSIVE INCOME | |||||||||||||||
Securities: | |||||||||||||||
Net change in unrealized gain on securities | 6,940 | (5,696 | ) | 22,002 | 18,274 | ||||||||||
Reclassification adjustment for net gains realized in net income | (1,679 | ) | (1,586 | ) | (5,553 | ) | (9,964 | ) | |||||||
Net change in non-credit related other than temporary impairment | — | — | — | 7 | |||||||||||
Income taxes | (2,084 | ) | 2,871 | (6,433 | ) | (3,364 | ) | ||||||||
Other comprehensive income (loss) on securities | 3,177 | (4,411 | ) | 10,016 | 4,953 | ||||||||||
Derivatives used in cash flow hedging relationships: | |||||||||||||||
Net change in unrealized loss on derivatives | 17 | 844 | (656 | ) | (4,623 | ) | |||||||||
Reclassification adjustment for net losses on derivatives realized in net income | 308 | 492 | 1,005 | 1,463 | |||||||||||
Income taxes | (123 | ) | (517 | ) | (337 | ) | 1,155 | ||||||||
Other comprehensive income (loss) on cash flow hedges | 202 | 819 | 12 | (2,005 | ) | ||||||||||
Other comprehensive income (loss) | 3,379 | (3,592 | ) | 10,028 | 2,948 | ||||||||||
TOTAL COMPREHENSIVE INCOME | $ | 25,011 | $ | 16,616 | $ | 71,628 | $ | 64,135 | |||||||
See accompanying notes to consolidated financial statements. |
HEARTLAND FINANCIAL USA, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands) | |||||||||||
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 52,776 | $ | 43,089 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 5,484 | 6,831 | |||||||||
Provision for credit losses | 3,074 | 3,245 | |||||||||
Net amortization of premium on securities | 7,159 | 19,352 | |||||||||
Securities losses (gains), net | 1,104 | (2,872) | |||||||||
Unrealized (gain) loss on equity securities, net | (193) | 283 | |||||||||
Stock based compensation | 4,719 | 2,704 | |||||||||
Loans originated for sale | (43,257) | (99,331) | |||||||||
Proceeds on sales of loans held for sale | 39,916 | 101,260 | |||||||||
Net gains on sale of loans held for sale | (1,807) | (2,974) | |||||||||
(Increase) decrease in accrued interest receivable | (130) | 6,282 | |||||||||
Decrease (increase) in prepaid expenses | 806 | (4,765) | |||||||||
Increase (decrease) in accrued interest payable | 13,462 | (100) | |||||||||
Capitalization of servicing rights | (24) | (437) | |||||||||
Valuation adjustment on servicing rights | — | (1,658) | |||||||||
Loss on sales/valuations of assets, net | 1,115 | 46 | |||||||||
Net excess tax benefit from stock based compensation | 46 | 172 | |||||||||
Other, net | (9,818) | 12,652 | |||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 74,432 | 83,779 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Proceeds from the sale of securities available for sale | 146,448 | 824,071 | |||||||||
Proceeds from the sale of securities held to maturity | — | 2,337 | |||||||||
Proceeds from the maturity of and principal paydowns on securities available for sale | 150,941 | 290,347 | |||||||||
Proceeds from the maturity of and principal paydowns on securities held to maturity | 69 | 1,067 | |||||||||
Proceeds from the sale, maturity of, redemption of and principal paydowns on other investments | 3,644 | 1,982 | |||||||||
Purchase of securities available for sale | (187,726) | (1,007,992) | |||||||||
Purchase of other investments | (1,441) | (1,385) | |||||||||
Net increase in loans | (66,180) | (235,696) | |||||||||
Purchase of bank owned life insurance policies | (51) | (5) | |||||||||
Proceeds from sale of mortgage servicing rights | 6,714 | — | |||||||||
Capital expenditures | (248) | (2,544) | |||||||||
Proceeds from the sale of equipment | 1,270 | 214 | |||||||||
Proceeds on sale of OREO and other repossessed assets | 1,136 | 1,157 | |||||||||
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES | $ | 54,576 | $ | (126,447) | |||||||
HEARTLAND FINANCIAL USA, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands) | |||||||
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 61,600 | $ | 61,187 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 22,738 | 22,975 | |||||
Provision for loan losses | 10,235 | 9,513 | |||||
Net amortization of premium on securities | 20,186 | 24,093 | |||||
Securities gains, net | (5,553 | ) | (9,732 | ) | |||
Stock based compensation | 3,588 | 3,073 | |||||
Loans originated for sale | (548,768 | ) | (863,354 | ) | |||
Proceeds on sales of loans held for sale | 586,202 | 883,758 | |||||
Net gains on sale of loans held for sale | (11,968 | ) | (23,938 | ) | |||
Decrease in accrued interest receivable | (1,449 | ) | (1,054 | ) | |||
(Increase) decrease in prepaid expenses | 838 | (128 | ) | ||||
Increase in accrued interest payable | 1,104 | 332 | |||||
Capitalization of servicing rights | (5,993 | ) | (9,856 | ) | |||
Valuation allowance on commercial servicing rights | (29 | ) | 41 | ||||
Write downs and losses on sales of assets, net | 1,642 | 1,064 | |||||
Net excess tax benefit from stock based compensation | 1,121 | 1,121 | |||||
Other, net | (5,637 | ) | (2,419 | ) | |||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 129,857 | 96,676 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Proceeds from the sale of securities available for sale | 1,127,091 | 768,617 | |||||
Proceeds from the sale of securities held to maturity | — | 4,557 | |||||
Proceeds from the sale of other investments | — | 4,722 | |||||
Proceeds from the redemption of time deposits in other financial institutions | 12,171 | — | |||||
Proceeds from the maturity of and principal paydowns on securities available for sale | 161,827 | 130,549 | |||||
Proceeds from the maturity of and principal paydowns on securities held to maturity | 6,645 | 8,271 | |||||
Proceeds from the maturity of and principal paydowns on time deposits in other financial institutions | 24,931 | 250 | |||||
Proceeds from the maturity of and principal paydowns on other investments | 2,574 | — | |||||
Purchase of securities available for sale | (1,299,492 | ) | (888,903 | ) | |||
Purchase of other investments | (1,012 | ) | (1,875 | ) | |||
Net decrease in loans | 45,139 | 138,725 | |||||
Purchase of bank owned life insurance policies | (2,000 | ) | — | ||||
Proceeds from bank owned life insurance policies | — | 111 | |||||
Proceeds from sale of mortgage servicing rights | 5,137 | — | |||||
Capital expenditures | (6,876 | ) | (8,318 | ) | |||
Net cash and cash equivalents received in acquisitions | 71,089 | 8,084 | |||||
Proceeds from the sale of equipment | 1,845 | 686 | |||||
Proceeds on sale of OREO and other repossessed assets | 7,578 | 3,266 | |||||
NET CASH PROVIDED BY INVESTING ACTIVITIES | $ | 156,647 | $ | 168,742 | |||
HEARTLAND FINANCIAL USA, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED (Unaudited) (Dollars in thousands) | |||||||||||
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Net decrease in demand deposits | $ | (581,786) | $ | (119,077) | |||||||
Net (decrease) increase in savings deposits | (737,782) | 338,518 | |||||||||
Net increase in time deposit accounts | 1,487,905 | 29,988 | |||||||||
Net decrease in short-term borrowings | (234,780) | (24,225) | |||||||||
Proceeds from short term advances | 1,000 | — | |||||||||
Repayments of short term advances | (50,000) | — | |||||||||
Repayments of other borrowings | (30) | (79) | |||||||||
Proceeds from issuance of common stock | 242 | 274 | |||||||||
Dividends paid | (14,753) | (13,428) | |||||||||
NET CASH (USED) PROVIDED BY FINANCING ACTIVITIES | (129,984) | 211,971 | |||||||||
Net (decrease) increase in cash and cash equivalents | (976) | 169,303 | |||||||||
Cash and cash equivalents at beginning of year | 363,087 | 435,599 | |||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 362,111 | $ | 604,902 | |||||||
Supplemental disclosures: | |||||||||||
Cash paid for income/franchise taxes | $ | 1,264 | $ | 32 | |||||||
Cash paid for interest | 51,304 | 6,683 | |||||||||
Loans transferred to OREO | 211 | 653 | |||||||||
Transfer of premises from premises, furniture and equipment, net, to premises, furniture and equipment held for sale | 3,741 | 3,250 | |||||||||
Transfer of premises from premises, furniture and equipment held for sale to premises, furniture and equipment, net | 5,167 | — | |||||||||
Dividends declared, not paid | 2,013 | 2,013 | |||||||||
See accompanying notes to consolidated financial statements. |
HEARTLAND FINANCIAL USA, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED (Unaudited) (Dollars in thousands) | |||||||
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Net increase in demand deposits | $ | 181,206 | $ | 160,313 | |||
Net increase (decrease) in savings deposits | (179,721 | ) | 51,530 | ||||
Net decrease in time deposit accounts | (8,582 | ) | (353,084 | ) | |||
Proceeds on short-term revolving credit line | 20,000 | — | |||||
Repayments on short-term revolving credit line | (15,000 | ) | — | ||||
Net decrease in short-term borrowings | (168,667 | ) | (101,409 | ) | |||
Proceeds from short term FHLB advances | 186,039 | 243,100 | |||||
Repayments of short term FHLB advances | (191,405 | ) | (257,250 | ) | |||
Proceeds from other borrowings | — | 40,000 | |||||
Repayments of other borrowings | (8,573 | ) | (15,562 | ) | |||
Redemption of preferred stock | — | (81,698 | ) | ||||
Purchase of treasury stock | (440 | ) | (2,293 | ) | |||
Proceeds from issuance of common stock | 804 | 1,863 | |||||
Dividends paid | (9,153 | ) | (7,638 | ) | |||
NET CASH USED BY FINANCING ACTIVITIES | (193,492 | ) | (322,128 | ) | |||
Net increase (decrease) in cash and cash equivalents | 93,012 | (56,710 | ) | ||||
Cash and cash equivalents at beginning of year | 158,724 | 258,799 | |||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 251,736 | $ | 202,089 | |||
Supplemental disclosures: | |||||||
Cash paid for income/franchise taxes | $ | 10,775 | $ | 16,550 | |||
Cash paid for interest | $ | 23,034 | $ | 23,864 | |||
Loans transferred to OREO | $ | 4,955 | $ | 1,359 | |||
Purchases of securities available for sale, accrued, not settled | $ | 2,063 | $ | — | |||
Sales of securities available for sale, accrued, not settled | $ | 125 | $ | 250 | |||
Conversion of convertible debt to common stock | $ | 558 | $ | — | |||
Conversion of Series D preferred stock to common stock | $ | 419 | $ | — | |||
Stock consideration granted for acquisitions | $ | 175,196 | $ | 57,433 | |||
See accompanying notes to consolidated financial statements. |
HEARTLAND FINANCIAL USA, INC. CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) (Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||||||||||||||||||||
Heartland Financial USA, Inc. Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Equity | ||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2022 | $ | 110,705 | $ | 42,275 | $ | 1,071,956 | $ | 962,994 | $ | (5,752) | $ | 2,182,178 | |||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 43,089 | (281,169) | (238,080) | ||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared: | |||||||||||||||||||||||||||||||||||||||||||||||
Preferred, $175.00 per share | (2,013) | (2,013) | |||||||||||||||||||||||||||||||||||||||||||||
Common, $0.27 per share | (11,415) | (11,415) | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of 94,644 shares of common stock | 95 | (1,612) | (1,517) | ||||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | 2,704 | 2,704 | |||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | 110,705 | $ | 42,370 | $ | 1,073,048 | $ | 992,655 | $ | (286,921) | $ | 1,931,857 | |||||||||||||||||||||||||||||||||||
Balance at January 1, 2023 | $ | 110,705 | $ | 42,467 | $ | 1,080,964 | $ | 1,120,925 | $ | (620,006) | $ | 1,735,055 | |||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 52,776 | 53,087 | 105,863 | ||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared: | |||||||||||||||||||||||||||||||||||||||||||||||
Preferred, $175.00 per share | (2,013) | (2,013) | |||||||||||||||||||||||||||||||||||||||||||||
Common, $0.30 per share | (12,740) | (12,740) | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of 91,332 shares of common stock | 92 | (1,571) | (1,479) | ||||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | 4,719 | 4,719 | |||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | 110,705 | $ | 42,559 | $ | 1,084,112 | $ | 1,158,948 | $ | (566,919) | $ | 1,829,405 | |||||||||||||||||||||||||||||||||||
See accompanying notes to consolidated financial statements. |
HEARTLAND FINANCIAL USA, INC. CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) (Dollars in thousands, except per share data) | |||||||||||||||||||||||||||
Heartland Financial USA, Inc. Stockholders' Equity | |||||||||||||||||||||||||||
Preferred Stock | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Equity | |||||||||||||||||||||
Balance at January 1, 2016 | $ | 81,698 | $ | 22,436 | $ | 216,436 | $ | 348,630 | $ | (6,027 | ) | $ | — | $ | 663,173 | ||||||||||||
Comprehensive income | 61,187 | 2,948 | 64,135 | ||||||||||||||||||||||||
Cash dividends declared: | |||||||||||||||||||||||||||
Series C Preferred, $2.50 per share | (168 | ) | (168 | ) | |||||||||||||||||||||||
Series D Preferred, $35.00 per share | (105 | ) | (105 | ) | |||||||||||||||||||||||
Common, $0.30 per share | (7,365 | ) | (7,365 | ) | |||||||||||||||||||||||
Redemption of Series C Preferred Stock | (81,698 | ) | (81,698 | ) | |||||||||||||||||||||||
Issuance of Series D Preferred Stock | 3,777 | 3,777 | |||||||||||||||||||||||||
Redemption of Series D Preferred Stock | (2,420 | ) | (2,420 | ) | |||||||||||||||||||||||
Purchase of 49,785 shares of common stock | (2,293 | ) | (2,293 | ) | |||||||||||||||||||||||
Issuance of 2,295,472 shares of common stock | 2,247 | 59,807 | 2,225 | 64,279 | |||||||||||||||||||||||
Stock based compensation | 3,073 | 3,073 | |||||||||||||||||||||||||
Balance at September 30, 2016 | $ | 1,357 | $ | 24,683 | $ | 279,316 | $ | 402,179 | $ | (3,079 | ) | $ | (68 | ) | $ | 704,388 | |||||||||||
Balance at January 1, 2017 | $ | 1,357 | $ | 26,120 | $ | 328,376 | $ | 416,109 | $ | (31,046 | ) | $ | — | $ | 740,916 | ||||||||||||
Comprehensive income | 61,600 | 10,028 | 71,628 | ||||||||||||||||||||||||
Cash dividends declared: | |||||||||||||||||||||||||||
Series D Preferred, $52.50 per share | (45 | ) | (45 | ) | |||||||||||||||||||||||
Common, $0.33 per share | (9,108 | ) | (9,108 | ) | |||||||||||||||||||||||
Conversion of Series D preferred stock | (419 | ) | (419 | ) | |||||||||||||||||||||||
Purchase of 9,392 shares of common stock | (440 | ) | (440 | ) | |||||||||||||||||||||||
Issuance of 3,835,532 shares of common stock | 3,826 | 171,298 | 440 | 175,564 | |||||||||||||||||||||||
Stock based compensation | 3,588 | 3,588 | |||||||||||||||||||||||||
Balance at September 30, 2017 | $ | 938 | $ | 29,946 | $ | 503,262 | $ | 468,556 | $ | (21,018 | ) | $ | — | $ | 981,684 | ||||||||||||
See accompanying notes to consolidated financial statements. |
Three Months Ended September 30, | |||||||
(Dollars and number of shares in thousands, except per share data) | 2017 | 2016 | |||||
Net income | $ | 21,632 | $ | 20,208 | |||
Preferred dividends and discount | (13 | ) | (53 | ) | |||
Interest expense on convertible preferred debt | 3 | 17 | |||||
Net income available to common stockholders | $ | 21,622 | $ | 20,172 | |||
Weighted average common shares outstanding for basic earnings per share | 29,648 | 24,601 | |||||
Assumed incremental common shares issued upon exercise of stock options and non-vested restricted stock units | 262 | 322 | |||||
Weighted average common shares for diluted earnings per share | 29,910 | 24,923 | |||||
Earnings per common share — basic | $ | 0.73 | $ | 0.82 | |||
Earnings per common share — diluted | $ | 0.72 | $ | 0.81 | |||
Number of antidilutive common stock equivalents excluded from diluted earnings per share computation | — | — | |||||
Nine Months Ended September 30, | |||||||
(Dollars and number of shares in thousands, except per share data) | 2017 | 2016 | |||||
Net income | $ | 61,600 | $ | 61,187 | |||
Preferred dividends | (45 | ) | (273 | ) | |||
Interest expense on convertible preferred debt | 12 | 48 | |||||
Net income available to common stockholders | $ | 61,567 | $ | 60,962 | |||
Weighted average common shares outstanding for basic earnings per share | 27,569 | 24,262 | |||||
Assumed incremental common shares issued upon exercise of stock options and non-vested restricted stock units | 265 | 319 | |||||
Weighted average common shares for diluted earnings per share | 27,834 | 24,581 | |||||
Earnings per common share — basic | $ | 2.23 | $ | 2.51 | |||
Earnings per common share — diluted | $ | 2.21 | $ | 2.48 | |||
Number of antidilutive common stock equivalents excluded from diluted earnings per share computation | — | — |
2017 | 2016 | ||||||||||||
Shares | Weighted-Average Grant Date Fair Value | Shares | Weighted-Average Grant Date Fair Value | ||||||||||
Outstanding at January 1 | 346,817 | $ | 27.61 | 353,195 | $ | 25.53 | |||||||
Granted | 109,071 | 47.21 | 143,721 | 29.75 | |||||||||
Vested | (136,428 | ) | 26.66 | (117,898 | ) | 23.44 | |||||||
Forfeited | (12,923 | ) | 31.57 | (11,547 | ) | 27.12 | |||||||
Outstanding at September 30 | 306,537 | $ | 34.72 | 367,471 | $ | 27.60 |
2017 | 2016 | ||||||||||||
Shares | Weighted-Average Exercise Price | Shares | Weighted-Average Exercise Price | ||||||||||
Outstanding at January 1 | 26,400 | $ | 18.60 | 125,950 | $ | 24.08 | |||||||
Granted | — | — | — | — | |||||||||
Exercised | (13,650 | ) | 18.60 | (55,250 | ) | 24.82 | |||||||
Forfeited | (500 | ) | 18.60 | (1,500 | ) | 21.10 | |||||||
Outstanding at September 30 | 12,250 | $ | 18.60 | 69,200 | $ | 23.55 | |||||||
Options exercisable at September 30 | 12,250 | $ | 18.60 | 69,200 | $ | 23.55 |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net income | $ | 52,776 | $ | 43,089 | |||||||
Preferred dividends | (2,013) | (2,013) | |||||||||
Net income available to stockholders | $ | 50,763 | $ | 41,076 | |||||||
Weighted average common shares outstanding for basic earnings per share | 42,615 | 42,360 | |||||||||
Assumed incremental common shares issued upon vesting of outstanding restricted stock units | 128 | 181 | |||||||||
Weighted average common shares for diluted earnings per share | 42,743 | 42,541 | |||||||||
Earnings per common share — basic | $ | 1.19 | $ | 0.97 | |||||||
Earnings per common share — diluted | $ | 1.19 | $ | 0.97 | |||||||
Number of antidilutive common stock equivalents excluded from diluted earnings per share computation | 50 | — | |||||||||
Number of antidilutive stock options excluded from diluted earnings per share computation | 61 | — |
As of July 7, 2017 | |||
Fair value of consideration paid: | |||
Common stock (3,216,161 shares) | $ | 152,607 | |
Cash | 58,636 | ||
Total consideration paid | 211,243 | ||
Fair value of assets acquired: | |||
Cash and due from banks | 21,341 | ||
Interest bearing deposits in other financial institutions | 74,686 | ||
Time deposits in other financial institutions | 6,304 | ||
Securities: | |||
Securities available for sale | 234,390 | ||
Other securities | 2,628 | ||
Loans held to maturity | 985,399 | ||
Premises, furniture and equipment, net | 17,206 | ||
Premises, furniture and equipment held for sale | 1,350 | ||
Other real estate, net | 6,916 | ||
Other intangible assets, net | 16,041 | ||
Other assets | 32,278 | ||
Total assets | 1,398,539 | ||
Fair value of liabilities assumed: | |||
Deposits | 1,210,074 | ||
Short term borrowings | 34,445 | ||
Other borrowings | 21,636 | ||
Other liabilities | 16,295 | ||
Total liabilities assumed | 1,282,450 | ||
Fair value of net assets acquired | 116,089 | ||
Goodwill resulting from acquisition | $ | 95,154 |
(Dollars in thousands, except per share data), unaudited | For the Nine Months Ended | ||||||
September 30, 2017 | September 30, 2016 | ||||||
Net interest income | $ | 264,485 | $ | 256,579 | |||
Net income available to common stockholders | $ | 61,940 | $ | 68,857 | |||
Basic earnings per share | $ | 2.08 | $ | 2.51 | |||
Diluted earnings per share | $ | 2.06 | $ | 2.48 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||
U.S. treasuries | $ | 32,391 | $ | 33 | $ | (492) | $ | 31,932 | |||||||||||||||
U.S. agencies | 49,062 | — | (5,478) | 43,584 | |||||||||||||||||||
Obligations of states and political subdivisions | 1,023,650 | 47 | (135,775) | 887,922 | |||||||||||||||||||
Mortgage-backed securities - agency | 2,002,260 | 85 | (244,876) | 1,757,469 | |||||||||||||||||||
Mortgage-backed securities - non-agency | 2,260,462 | 3,739 | (146,319) | 2,117,882 | |||||||||||||||||||
Commercial mortgage-backed securities - agency | 99,914 | — | (13,892) | 86,022 | |||||||||||||||||||
Commercial mortgage-backed securities - non-agency | 675,425 | — | (17,551) | 657,874 | |||||||||||||||||||
Asset-backed securities | 448,001 | — | (12,478) | 435,523 | |||||||||||||||||||
Corporate bonds | 59,202 | — | (1,357) | 57,845 | |||||||||||||||||||
Total debt securities | 6,650,367 | 3,904 | (578,218) | 6,076,053 | |||||||||||||||||||
Equity securities with a readily determinable fair value | 20,604 | — | — | 20,604 | |||||||||||||||||||
Total | $ | 6,670,971 | $ | 3,904 | $ | (578,218) | $ | 6,096,657 | |||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
U.S. treasuries | $ | 32,369 | $ | 8 | $ | (678) | $ | 31,699 | |||||||||||||||
U.S. agencies | 49,437 | — | (6,302) | 43,135 | |||||||||||||||||||
Obligations of states and political subdivisions | 1,049,578 | 14 | (170,155) | 879,437 | |||||||||||||||||||
Mortgage-backed securities - agency | 2,042,092 | 56 | (270,043) | 1,772,105 | |||||||||||||||||||
Mortgage-backed securities - non-agency | 2,327,308 | 1,417 | (146,849) | 2,181,876 | |||||||||||||||||||
Commercial mortgage-backed securities - agency | 100,518 | — | (15,395) | 85,123 | |||||||||||||||||||
Commercial mortgage-backed securities - non-agency | 679,511 | — | (20,052) | 659,459 | |||||||||||||||||||
Asset-backed securities | 428,397 | — | (12,343) | 416,054 | |||||||||||||||||||
Corporate bonds | 59,205 | — | (1,263) | 57,942 | |||||||||||||||||||
Total debt securities | 6,768,415 | 1,495 | (643,080) | 6,126,830 | |||||||||||||||||||
Equity securities with a readily determinable fair value | 20,314 | — | — | 20,314 | |||||||||||||||||||
Total | $ | 6,788,729 | $ | 1,495 | $ | (643,080) | $ | 6,147,144 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
September 30, 2017 | |||||||||||||||
U.S. government corporations and agencies | $ | 7,435 | $ | 14 | $ | (34 | ) | $ | 7,415 | ||||||
Mortgage-backed securities | 1,593,677 | 4,656 | (32,933 | ) | 1,565,400 | ||||||||||
Obligations of states and political subdivisions | 506,867 | 4,307 | (7,200 | ) | 503,974 | ||||||||||
Total debt securities | 2,107,979 | 8,977 | (40,167 | ) | 2,076,789 | ||||||||||
Equity securities | 16,253 | 343 | — | 16,596 | |||||||||||
Total | $ | 2,124,232 | $ | 9,320 | $ | (40,167 | ) | $ | 2,093,385 | ||||||
December 31, 2016 | |||||||||||||||
U.S. government corporations and agencies | $ | 4,716 | $ | 16 | $ | (32 | ) | $ | 4,700 | ||||||
Mortgage-backed securities | 1,321,760 | 7,026 | (38,286 | ) | 1,290,500 | ||||||||||
Obligations of states and political subdivisions | 553,020 | 2,436 | (19,312 | ) | 536,144 | ||||||||||
Total debt securities | 1,879,496 | 9,478 | (57,630 | ) | 1,831,344 | ||||||||||
Equity securities | 14,451 | 69 | — | 14,520 | |||||||||||
Total | $ | 1,893,947 | $ | 9,547 | $ | (57,630 | ) | $ | 1,845,864 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 832,098 | $ | 3,882 | $ | (20,308) | $ | 815,672 | |||||||||||||||||||||
Total | $ | 832,098 | $ | 3,882 | $ | (20,308) | $ | 815,672 | |||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 829,403 | $ | 3,096 | $ | (55,942) | $ | 776,557 | |||||||||||||||||||||
Total | $ | 829,403 | $ | 3,096 | $ | (55,942) | $ | 776,557 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
September 30, 2017 | |||||||||||||||
Obligations of states and political subdivisions | $ | 256,355 | $ | 14,722 | $ | (691 | ) | $ | 270,386 | ||||||
Total | $ | 256,355 | $ | 14,722 | $ | (691 | ) | $ | 270,386 | ||||||
December 31, 2016 | |||||||||||||||
Obligations of states and political subdivisions | $ | 263,662 | $ | 12,282 | $ | (1,145 | ) | $ | 274,799 | ||||||
Total | $ | 263,662 | $ | 12,282 | $ | (1,145 | ) | $ | 274,799 |
March 31, 2023 | |||||||||||
Amortized Cost | Estimated Fair Value | ||||||||||
Due in 1 year or less | $ | 875 | $ | 867 | |||||||
Due in 1 to 5 years | 86,596 | 85,549 | |||||||||
Due in 5 to 10 years | 55,440 | 48,402 | |||||||||
Due after 10 years | 1,021,394 | 886,465 | |||||||||
Total debt securities | 1,164,305 | 1,021,283 | |||||||||
Mortgage and asset-backed securities | 5,486,062 | 5,054,770 | |||||||||
Equity securities with a readily determinable fair value | 20,604 | 20,604 | |||||||||
Total investment securities | $ | 6,670,971 | $ | 6,096,657 |
September 30, 2017 | |||||||
Amortized Cost | Estimated Fair Value | ||||||
Due in 1 year or less | $ | 185 | $ | 186 | |||
Due in 1 to 5 years | 40,716 | 41,077 | |||||
Due in 5 to 10 years | 93,240 | 91,514 | |||||
Due after 10 years | 380,161 | 378,612 | |||||
Total debt securities | 514,302 | 511,389 | |||||
Mortgage-backed securities | 1,593,677 | 1,565,400 | |||||
Equity securities | 16,253 | 16,596 | |||||
Total investment securities | $ | 2,124,232 | $ | 2,093,385 |
March 31, 2023 | |||||||||||
Amortized Cost | Estimated Fair Value | ||||||||||
Due in 1 year or less | $ | 1,243 | $ | 1,246 | |||||||
Due in 1 to 5 years | 71,115 | 70,976 | |||||||||
Due in 5 to 10 years | 143,654 | 143,498 | |||||||||
Due after 10 years | 616,086 | 599,952 | |||||||||
Total debt securities | $ | 832,098 | $ | 815,672 | |||||||
September 30, 2017 | |||||||
Amortized Cost | Estimated Fair Value | ||||||
Due in 1 year or less | $ | 1,510 | $ | 1,533 | |||
Due in 1 to 5 years | 21,157 | 22,090 | |||||
Due in 5 to 10 years | 105,030 | 109,119 | |||||
Due after 10 years | 128,658 | 137,644 | |||||
Total investment securities | $ | 256,355 | $ | 270,386 |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Proceeds from sales | $ | 146,448 | $ | 824,071 | |||||||||||||||||||
Gross security gains | — | 6,941 | |||||||||||||||||||||
Gross security losses | 1,104 | 4,950 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Proceeds from sales | $ | 503,083 | $ | 146,242 | $ | 1,127,091 | $ | 768,617 | |||||||
Gross security gains | 2,088 | 1,763 | 8,585 | 11,416 | |||||||||||
Gross security losses | 409 | 177 | 3,023 | 1,332 |
Debt securities available for sale | Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Unrealized Losses | Count | Fair Value | Unrealized Losses | Count | Fair Value | Unrealized Losses | Count | |||||||||||||||||||||||||||||||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. treasuries | $ | 25,913 | $ | (492) | 3 | $ | — | $ | — | — | $ | 25,913 | $ | (492) | 3 | ||||||||||||||||||||||||||||||||||||||
U.S. agencies | 133 | (2) | 2 | 43,451 | (5,476) | 4 | 43,584 | (5,478) | 6 | ||||||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 88,910 | (3,541) | 20 | 794,010 | (132,234) | 155 | 882,920 | (135,775) | 175 | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities - agency | 52,854 | (4,839) | 30 | 1,701,881 | (240,037) | 187 | 1,754,735 | (244,876) | 217 | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities - non-agency | 362,023 | (26,315) | 12 | 1,165,995 | (120,004) | 41 | 1,528,018 | (146,319) | 53 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities - agency | 3,607 | (146) | 2 | 82,415 | (13,746) | 18 | 86,022 | (13,892) | 20 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities - non-agency | 119,454 | (5,360) | 8 | 498,815 | (12,191) | 12 | 618,269 | (17,551) | 20 | ||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | 137,105 | (3,582) | 3 | 94,100 | (8,896) | 10 | 231,205 | (12,478) | 13 | ||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | 51,892 | (601) | 3 | 5,953 | (756) | 5 | 57,845 | (1,357) | 8 | ||||||||||||||||||||||||||||||||||||||||||||
Total temporarily impaired securities | $ | 841,891 | $ | (44,878) | 83 | $ | 4,386,620 | $ | (533,340) | 432 | $ | 5,228,511 | $ | (578,218) | 515 | ||||||||||||||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. treasuries | $ | 28,699 | $ | (678) | 4 | $ | — | $ | — | — | $ | 28,699 | $ | (678) | 4 | ||||||||||||||||||||||||||||||||||||||
U.S. agencies | 16,487 | (222) | 5 | 26,648 | (6,080) | 2 | 43,135 | (6,302) | 7 | ||||||||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 288,457 | (28,378) | 69 | 589,641 | (141,777) | 113 | 878,098 | (170,155) | 182 | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities - agency | 241,288 | (21,420) | 99 | 1,528,951 | (248,623) | 126 | 1,770,239 | (270,043) | 225 | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities - non-agency | 950,054 | (70,213) | 25 | 693,531 | (76,636) | 25 | 1,643,585 | (146,849) | 50 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities - agency | 27,732 | (2,291) | 12 | 57,392 | (13,104) | 7 | 85,124 | (15,395) | 19 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities - non-agency | 530,541 | (16,830) | 15 | 84,619 | (3,222) | 4 | 615,160 | (20,052) | 19 | ||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | 118,613 | (6,107) | 7 | 56,621 | (6,236) | 6 | 175,234 | (12,343) | 13 | ||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | 57,544 | (1,257) | 7 | 398 | (6) | 1 | 57,942 | (1,263) | 8 | ||||||||||||||||||||||||||||||||||||||||||||
Total temporarily impaired securities | $ | 2,259,415 | $ | (147,396) | 243 | $ | 3,037,801 | $ | (495,684) | 284 | $ | 5,297,216 | $ | (643,080) | 527 |
Securities available for sale | Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
September 30, 2017 | |||||||||||||||||||||||
U.S. government corporations and agencies | $ | 6,901 | $ | (34 | ) | $ | — | $ | — | $ | 6,901 | $ | (34 | ) | |||||||||
Mortgage-backed securities | 761,235 | (11,558 | ) | 431,669 | (21,375 | ) | 1,192,904 | (32,933 | ) | ||||||||||||||
Obligations of states and political subdivisions | 149,931 | (1,820 | ) | 153,068 | (5,380 | ) | 302,999 | (7,200 | ) | ||||||||||||||
Total debt securities | 918,067 | (13,412 | ) | 584,737 | (26,755 | ) | 1,502,804 | (40,167 | ) | ||||||||||||||
Equity securities | — | — | — | — | — | — | |||||||||||||||||
Total temporarily impaired securities | $ | 918,067 | $ | (13,412 | ) | $ | 584,737 | $ | (26,755 | ) | $ | 1,502,804 | $ | (40,167 | ) | ||||||||
December 31, 2016 | |||||||||||||||||||||||
U.S. government corporations and agencies | $ | 4,185 | $ | (32 | ) | $ | — | $ | — | $ | 4,185 | $ | (32 | ) | |||||||||
Mortgage-backed securities | 744,202 | (23,527 | ) | 272,449 | (14,759 | ) | 1,016,651 | (38,286 | ) | ||||||||||||||
Obligations of states and political subdivisions | 414,151 | (19,309 | ) | 251 | (3 | ) | 414,402 | (19,312 | ) | ||||||||||||||
Total debt securities | 1,162,538 | (42,868 | ) | 272,700 | (14,762 | ) | 1,435,238 | (57,630 | ) | ||||||||||||||
Equity securities | — | — | — | — | — | — | |||||||||||||||||
Total temporarily impaired securities | $ | 1,162,538 | $ | (42,868 | ) | $ | 272,700 | $ | (14,762 | ) | $ | 1,435,238 | $ | (57,630 | ) |
Securities held to maturity | Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
September 30, 2017 | |||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 6,278 | $ | (43 | ) | $ | 8,894 | $ | (648 | ) | $ | 15,172 | $ | (691 | ) | ||||||||
Total temporarily impaired securities | $ | 6,278 | $ | (43 | ) | $ | 8,894 | $ | (648 | ) | $ | 15,172 | $ | (691 | ) | ||||||||
December 31, 2016 | |||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 31,479 | $ | (884 | ) | $ | 2,017 | $ | (261 | ) | $ | 33,496 | $ | (1,145 | ) | ||||||||
Total temporarily impaired securities | $ | 31,479 | $ | (884 | ) | $ | 2,017 | $ | (261 | ) | $ | 33,496 | $ | (1,145 | ) |
March 31, 2023 | December 31, 2022 | ||||||||||
Rating | |||||||||||
AAA | $ | 79,848 | $ | 79,598 | |||||||
AA, AA+, AA- | 590,034 | 588,354 | |||||||||
A+, A, A- | 137,368 | 136,624 | |||||||||
BBB | 20,599 | 20,623 | |||||||||
Not Rated | 4,249 | 4,204 | |||||||||
Total | $ | 832,098 | $ | 829,403 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Recorded as part of gross realized losses: | |||||||||||||||
Credit related OTTI | $ | — | $ | — | $ | — | $ | — | |||||||
Intent to sell OTTI | — | — | — | — | |||||||||||
Total recorded as part of gross realized losses | — | — | — | — | |||||||||||
Recorded directly to AOCI for non-credit related impairment: | |||||||||||||||
Residential mortgage backed securities | — | — | — | — | |||||||||||
Reduction of non-credit related impairment related to security sales | — | — | — | (120 | ) | ||||||||||
Accretion of non-credit related impairment | — | — | — | (7 | ) | ||||||||||
Total changes to AOCI for non-credit related impairment | — | — | — | (127 | ) | ||||||||||
Total OTTI losses (accretion) recorded on debt securities, net | $ | — | $ | — | $ | — | $ | (127 | ) |
March 31, 2023 | December 31, 2022 | ||||||||||
Loans receivable held to maturity: | |||||||||||
Commercial and industrial | $ | 3,498,345 | $ | 3,464,414 | |||||||
Paycheck Protection Program ("PPP") | 8,258 | 11,025 | |||||||||
Owner occupied commercial real estate | 2,312,538 | 2,265,307 | |||||||||
Non-owner occupied commercial real estate | 2,421,341 | 2,330,940 | |||||||||
Real estate construction | 1,102,186 | 1,076,082 | |||||||||
Agricultural and agricultural real estate | 810,183 | 920,510 | |||||||||
Residential real estate | 841,084 | 853,361 | |||||||||
Consumer | 501,418 | 506,713 | |||||||||
Total loans receivable held to maturity | 11,495,353 | 11,428,352 | |||||||||
Allowance for credit losses | (112,707) | (109,483) | |||||||||
Loans receivable, net | $ | 11,382,646 | $ | 11,318,869 |
September 30, 2017 | December 31, 2016 | ||||||
Loans receivable held to maturity: | |||||||
Commercial | $ | 1,613,903 | $ | 1,287,265 | |||
Commercial real estate | 3,163,953 | 2,538,582 | |||||
Agricultural and agricultural real estate | 511,764 | 489,318 | |||||
Residential real estate | 635,611 | 617,924 | |||||
Consumer | 450,088 | 420,613 | |||||
Gross loans receivable held to maturity | 6,375,319 | 5,353,702 | |||||
Unearned discount | (605 | ) | (699 | ) | |||
Deferred loan fees | (1,299 | ) | (1,284 | ) | |||
Total net loans receivable held to maturity | 6,373,415 | 5,351,719 | |||||
Allowance for loan losses | (54,885 | ) | (54,324 | ) | |||
Loans receivable, net | $ | 6,318,530 | $ | 5,297,395 |
Allowance For Credit Losses | Gross Loans Receivable Held to Maturity | ||||||||||||||||||||||||||||||||||
Individually Evaluated for Credit Losses | Collectively Evaluated for Credit Losses | Total | Loans Individually Evaluated for Credit Losses | Loans Collectively Evaluated for Credit Losses | Total | ||||||||||||||||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 9,144 | $ | 22,679 | $ | 31,823 | $ | 19,953 | $ | 3,478,392 | $ | 3,498,345 | |||||||||||||||||||||||
PPP | — | — | — | — | 8,258 | 8,258 | |||||||||||||||||||||||||||||
Owner occupied commercial real estate | 376 | 13,775 | 14,151 | 7,784 | 2,304,754 | 2,312,538 | |||||||||||||||||||||||||||||
Non-owner occupied commercial real estate | — | 17,062 | 17,062 | 10,983 | 2,410,358 | 2,421,341 | |||||||||||||||||||||||||||||
Real estate construction | — | 30,138 | 30,138 | 1,498 | 1,100,688 | 1,102,186 | |||||||||||||||||||||||||||||
Agricultural and agricultural real estate | 62 | 2,484 | 2,546 | 5,116 | 805,067 | 810,183 | |||||||||||||||||||||||||||||
Residential real estate | — | 7,564 | 7,564 | 788 | 840,296 | 841,084 | |||||||||||||||||||||||||||||
Consumer | — | 9,423 | 9,423 | — | 501,418 | 501,418 | |||||||||||||||||||||||||||||
Total | $ | 9,582 | $ | 103,125 | $ | 112,707 | $ | 46,122 | $ | 11,449,231 | $ | 11,495,353 | |||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 6,670 | $ | 22,401 | $ | 29,071 | $ | 18,712 | $ | 3,445,702 | $ | 3,464,414 | |||||||||||||||||||||||
PPP | — | — | — | — | 11,025 | 11,025 | |||||||||||||||||||||||||||||
Owner occupied commercial real estate | 376 | 13,572 | 13,948 | 7,932 | 2,257,375 | 2,265,307 | |||||||||||||||||||||||||||||
Non-owner occupied commercial real estate | — | 16,539 | 16,539 | 11,371 | 2,319,569 | 2,330,940 | |||||||||||||||||||||||||||||
Real estate construction | — | 29,998 | 29,998 | 1,518 | 1,074,564 | 1,076,082 | |||||||||||||||||||||||||||||
Agricultural and agricultural real estate | 63 | 2,571 | 2,634 | 3,851 | 916,659 | 920,510 | |||||||||||||||||||||||||||||
Residential real estate | — | 7,711 | 7,711 | 1,607 | 851,754 | 853,361 | |||||||||||||||||||||||||||||
Consumer | — | 9,582 | 9,582 | — | 506,713 | 506,713 | |||||||||||||||||||||||||||||
Total | $ | 7,109 | $ | 102,374 | $ | 109,483 | $ | 44,991 | $ | 11,383,361 | $ | 11,428,352 |
Allowance For Loan Losses | Gross Loans Receivable Held to Maturity | ||||||||||||||||||||||
Ending Balance Under ASC 310-10-35 | Ending Balance Under ASC 450-20 | Total | Ending Balance Evaluated for Impairment Under ASC 310-10-35 | Ending Balance Evaluated for Impairment Under ASC 450-20 | Total | ||||||||||||||||||
September 30, 2017 | |||||||||||||||||||||||
Commercial | $ | 2,166 | $ | 14,804 | $ | 16,970 | $ | 6,957 | $ | 1,606,946 | $ | 1,613,903 | |||||||||||
Commercial real estate | 864 | 19,676 | 20,540 | 27,943 | 3,136,010 | 3,163,953 | |||||||||||||||||
Agricultural and agricultural real estate | 2,353 | 3,774 | 6,127 | 12,792 | 498,972 | 511,764 | |||||||||||||||||
Residential real estate | 393 | 1,873 | 2,266 | 29,833 | 605,778 | 635,611 | |||||||||||||||||
Consumer | 1,267 | 7,715 | 8,982 | 6,524 | 443,564 | 450,088 | |||||||||||||||||
Total | $ | 7,043 | $ | 47,842 | $ | 54,885 | $ | 84,049 | $ | 6,291,270 | $ | 6,375,319 | |||||||||||
December 31, 2016 | |||||||||||||||||||||||
Commercial | $ | 1,318 | $ | 13,447 | $ | 14,765 | $ | 3,712 | $ | 1,283,553 | $ | 1,287,265 | |||||||||||
Commercial real estate | 2,671 | 21,648 | 24,319 | 45,217 | 2,493,365 | 2,538,582 | |||||||||||||||||
Agricultural and agricultural real estate | 816 | 3,394 | 4,210 | 16,730 | 472,588 | 489,318 | |||||||||||||||||
Residential real estate | 497 | 1,766 | 2,263 | 25,726 | 592,198 | 617,924 | |||||||||||||||||
Consumer | 1,451 | 7,316 | 8,767 | 5,988 | 414,625 | 420,613 | |||||||||||||||||
Total | $ | 6,753 | $ | 47,571 | $ | 54,324 | $ | 97,373 | $ | 5,256,329 | $ | 5,353,702 |
Loan Modifications Made to Borrowers Experiencing Financial Difficulty | |||||||||||||||||||||||
Term Extension | Term Extension and Interest Only Payments | ||||||||||||||||||||||
Amortized Cost Basis | % of Loan Category | Amortized Cost Basis | % of Loan Category | ||||||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||
Commercial | $ | 3,682 | 0.11 | % | $ | — | — | % | |||||||||||||||
Owner occupied commercial real estate | — | — | 5,043 | 0.22 | |||||||||||||||||||
Real estate construction | 1,498 | 0.06 | — | — | |||||||||||||||||||
Residential real estate | 762 | 0.01 | — | — | |||||||||||||||||||
Total | $ | 5,942 | 0.05 | % | $ | 5,043 | 0.22 | % |
September 30, 2017 | December 31, 2016 | ||||||
Nonaccrual loans | $ | 59,451 | $ | 62,591 | |||
Nonaccrual troubled debt restructured loans | 4,005 | 1,708 | |||||
Total nonaccrual loans | $ | 63,456 | $ | 64,299 | |||
Accruing loans past due 90 days or more | $ | 2,348 | $ | 86 | |||
Performing troubled debt restructured loans | $ | 10,040 | $ | 10,380 |
Three Months Ended September 30, | |||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||
Number of Loans | Pre- Modification Recorded Investment | Post- Modification Recorded Investment | Number of Loans | Pre- Modification Recorded Investment | Post- Modification Recorded Investment | ||||||||||||||||
Commercial | — | $ | — | $ | — | — | $ | — | $ | — | |||||||||||
Commercial real estate | — | — | — | — | — | — | |||||||||||||||
Total commercial and commercial real estate | — | — | — | — | — | — | |||||||||||||||
Agricultural and agricultural real estate | — | — | — | — | — | — | |||||||||||||||
Residential real estate | 8 | 1,174 | 1,174 | 5 | 651 | 651 | |||||||||||||||
Consumer | — | — | — | — | — | — | |||||||||||||||
Total | 8 | $ | 1,174 | $ | 1,174 | 5 | $ | 651 | $ | 651 |
Nine Months Ended September 30, | |||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||
Number of Loans | Pre- Modification Recorded Investment | Post- Modification Recorded Investment | Number of Loans | Pre- Modification Recorded Investment | Post- Modification Recorded Investment | ||||||||||||||||
Commercial | 3 | $ | 131 | $ | 131 | 1 | $ | 100 | $ | 100 | |||||||||||
Commercial real estate | — | — | — | 1 | 179 | 179 | |||||||||||||||
Total commercial and commercial real estate | 3 | 131 | 131 | 2 | 279 | 279 | |||||||||||||||
Agricultural and agricultural real estate | — | — | — | — | — | — | |||||||||||||||
Residential real estate | 22 | 2,977 | 2,977 | 5 | 651 | 651 | |||||||||||||||
Consumer | — | — | — | — | — | — | |||||||||||||||
Total | 25 | $ | 3,108 | $ | 3,108 | 7 | $ | 930 | $ | 930 |
Loan Type | Weighted Average Term Extension (months) | Weighted Average Term Extension and Interest Only Payments (months) | ||||||||||||
Commercial and industrial | 10 | 0 | ||||||||||||
Owner occupied commercial real estate | 0 | 12 | ||||||||||||
Real estate construction | 6 | 0 | ||||||||||||
Residential real estate | 12 | 0 | ||||||||||||
With Payment Defaults During the Following Periods | |||||||||||||
Three Months Ended September 30, | |||||||||||||
2017 | 2016 | ||||||||||||
Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | ||||||||||
Commercial | — | $ | — | — | $ | — | |||||||
Commercial real estate | — | — | — | — | |||||||||
Total commercial and commercial real estate | — | — | — | — | |||||||||
Agricultural and agricultural real estate | — | — | — | — | |||||||||
Residential real estate | 5 | 1,221 | — | — | |||||||||
Consumer | — | — | — | — | |||||||||
Total | 5 | $ | 1,221 | — | $ | — |
Accruing Loans | |||||||||||||||||||||||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Total Past Due | Current | Nonaccrual | ||||||||||||||||||||||||||||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | $ | — | $ | 3,682 | $ | — | |||||||||||||||||||||||||||||||||||
Owner occupied commercial real estate | — | — | — | — | 5,043 | — | |||||||||||||||||||||||||||||||||||||||||
Real estate construction | — | — | — | — | — | 1,498 | |||||||||||||||||||||||||||||||||||||||||
Residential real estate | — | — | — | — | — | 762 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | 8,725 | $ | 2,260 |
With Payment Defaults During the Following Periods | |||||||||||||
Nine Months Ended September 30, | |||||||||||||
2017 | 2016 | ||||||||||||
Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | ||||||||||
Commercial | — | $ | — | 1 | $ | 95 | |||||||
Commercial real estate | — | — | — | — | |||||||||
Total commercial and commercial real estate | — | — | 1 | 95 | |||||||||
Agricultural and agricultural real estate | — | — | — | — | |||||||||
Residential real estate | 8 | 1,480 | — | — | |||||||||
Consumer | — | — | — | — | |||||||||
Total | 8 | $ | 1,480 | 1 | $ | 95 |
As of March 31, 2023 | Amortized Cost Basis of Term Loans by Year of Origination | ||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | 2018 and Prior | Revolving | Total | ||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 171,784 | $ | 945,388 | $ | 401,138 | $ | 236,351 | $ | 94,489 | $ | 355,412 | $ | 1,129,728 | $ | 3,334,290 | |||||||||||||||||||||||||||||||
Watch | 372 | 14,254 | 3,822 | 3,023 | 6,093 | 4,914 | 25,162 | 57,640 | |||||||||||||||||||||||||||||||||||||||
Substandard | 2,116 | 10,883 | 14,284 | 9,093 | 21,814 | 11,594 | 36,631 | 106,415 | |||||||||||||||||||||||||||||||||||||||
Commercial and industrial total | $ | 174,272 | $ | 970,525 | $ | 419,244 | $ | 248,467 | $ | 122,396 | $ | 371,920 | $ | 1,191,521 | $ | 3,498,345 | |||||||||||||||||||||||||||||||
Commercial and industrial charge-offs | $ | — | $ | 219 | $ | 95 | $ | 8 | $ | — | $ | 788 | $ | 341 | $ | 1,451 | |||||||||||||||||||||||||||||||
PPP | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | — | $ | — | $ | 6,731 | $ | 102 | $ | — | $ | — | $ | — | $ | 6,833 | |||||||||||||||||||||||||||||||
Watch | — | — | 6 | — | — | — | — | 6 | |||||||||||||||||||||||||||||||||||||||
Substandard | — | — | 1,419 | — | — | — | — | 1,419 | |||||||||||||||||||||||||||||||||||||||
PPP total | $ | — | $ | — | $ | 8,156 | $ | 102 | $ | — | $ | — | $ | — | $ | 8,258 | |||||||||||||||||||||||||||||||
PPP charge-offs | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||
Owner occupied commercial real estate | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 90,398 | $ | 524,526 | $ | 753,107 | $ | 241,589 | $ | 263,294 | $ | 261,584 | $ | 34,578 | $ | 2,169,076 | |||||||||||||||||||||||||||||||
Watch | — | 21,288 | 13,401 | 13,915 | 7,105 | 12,568 | — | 68,277 | |||||||||||||||||||||||||||||||||||||||
Substandard | 6,107 | 7,172 | 23,591 | 22,360 | 5,484 | 9,721 | 750 | 75,185 | |||||||||||||||||||||||||||||||||||||||
Owner occupied commercial real estate total | $ | 96,505 | $ | 552,986 | $ | 790,099 | $ | 277,864 | $ | 275,883 | $ | 283,873 | $ | 35,328 | $ | 2,312,538 | |||||||||||||||||||||||||||||||
Owner occupied commercial real estate charge-offs | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 14 | $ | — | $ | 14 | |||||||||||||||||||||||||||||||
Non-owner occupied commercial real estate | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 141,649 | $ | 730,364 | $ | 543,098 | $ | 208,137 | $ | 257,733 | $ | 305,784 | $ | 73,088 | $ | 2,259,853 | |||||||||||||||||||||||||||||||
Watch | — | 8,093 | 1,368 | 3,566 | 38,876 | 53,877 | — | 105,780 | |||||||||||||||||||||||||||||||||||||||
Substandard | — | — | 6,690 | 1,624 | 15,477 | 31,917 | — | 55,708 | |||||||||||||||||||||||||||||||||||||||
Non-owner occupied commercial real estate total | $ | 141,649 | $ | 738,457 | $ | 551,156 | $ | 213,327 | $ | 312,086 | $ | 391,578 | $ | 73,088 | $ | 2,421,341 | |||||||||||||||||||||||||||||||
Non-owner occupied commercial real estate charge-offs | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||
Real estate construction | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 45,771 | $ | 625,728 | $ | 303,674 | $ | 77,340 | $ | 20,886 | $ | 7,174 | $ | 8,224 | $ | 1,088,797 | |||||||||||||||||||||||||||||||
Watch | — | 6,574 | 1,085 | 1,244 | — | 103 | — | 9,006 | |||||||||||||||||||||||||||||||||||||||
Substandard | — | 3,428 | 356 | 121 | 434 | 44 | — | 4,383 | |||||||||||||||||||||||||||||||||||||||
Real estate construction total | $ | 45,771 | $ | 635,730 | $ | 305,115 | $ | 78,705 | $ | 21,320 | $ | 7,321 | $ | 8,224 | $ | 1,102,186 | |||||||||||||||||||||||||||||||
Real estate construction charge-offs | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||
Agricultural and agricultural real estate | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 39,667 | $ | 249,164 | $ | 125,673 | $ | 73,366 | $ | 31,283 | $ | 56,019 | $ | 197,976 | $ | 773,148 | |||||||||||||||||||||||||||||||
Watch | 241 | 1,225 | 549 | 3,843 | 496 | 935 | 1,346 | 8,635 | |||||||||||||||||||||||||||||||||||||||
Substandard | — | 7,618 | 3,378 | 212 | 1,154 | 15,017 | 1,021 | 28,400 | |||||||||||||||||||||||||||||||||||||||
Agricultural and agricultural real estate total | $ | 39,908 | $ | 258,007 | $ | 129,600 | $ | 77,421 | $ | 32,933 | $ | 71,971 | $ | 200,343 | $ | 810,183 | |||||||||||||||||||||||||||||||
Agricultural and agricultural real estate charge-offs | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 18,663 | $ | 181,925 | $ | 260,225 | $ | 62,951 | $ | 37,551 | $ | 238,866 | $ | 21,172 | $ | 821,353 | |||||||||||||||||||||||||||||||
Watch | — | 2,549 | 2,618 | 85 | 1,372 | 5,415 | 433 | 12,472 | |||||||||||||||||||||||||||||||||||||||
Substandard | 811 | 59 | 1,308 | 838 | 38 | 4,205 | — | 7,259 | |||||||||||||||||||||||||||||||||||||||
Residential real estate total | $ | 19,474 | $ | 184,533 | $ | 264,151 | $ | 63,874 | $ | 38,961 | $ | 248,486 | $ | 21,605 | $ | 841,084 | |||||||||||||||||||||||||||||||
Residential real estate charge-offs | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||
As of March 31, 2023 | Amortized Cost Basis of Term Loans by Year of Origination | ||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | 2018 and Prior | Revolving | Total | ||||||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 11,806 | $ | 75,894 | $ | 44,501 | $ | 10,554 | $ | 5,180 | $ | 18,586 | $ | 328,689 | $ | 495,210 | |||||||||||||||||||||||||||||||
Watch | — | 51 | 227 | 59 | 109 | 1,524 | 1,434 | 3,404 | |||||||||||||||||||||||||||||||||||||||
Substandard | 9 | 209 | 339 | 220 | 261 | 1,565 | 201 | 2,804 | |||||||||||||||||||||||||||||||||||||||
Consumer total | $ | 11,815 | $ | 76,154 | $ | 45,067 | $ | 10,833 | $ | 5,550 | $ | 21,675 | $ | 330,324 | $ | 501,418 | |||||||||||||||||||||||||||||||
Consumer charge-offs | $ | — | $ | 24 | $ | 26 | $ | 11 | $ | 11 | $ | 6 | $ | 608 | $ | 686 | |||||||||||||||||||||||||||||||
Total Pass | $ | 519,738 | $ | 3,332,989 | $ | 2,438,147 | $ | 910,390 | $ | 710,416 | $ | 1,243,425 | $ | 1,793,455 | $ | 10,948,560 | |||||||||||||||||||||||||||||||
Total Watch | 613 | 54,034 | 23,076 | 25,735 | 54,051 | 79,336 | 28,375 | 265,220 | |||||||||||||||||||||||||||||||||||||||
Total Substandard | 9,043 | 29,369 | 51,365 | 34,468 | 44,662 | 74,063 | 38,603 | 281,573 | |||||||||||||||||||||||||||||||||||||||
Total Loans | $ | 529,394 | $ | 3,416,392 | $ | 2,512,588 | $ | 970,593 | $ | 809,129 | $ | 1,396,824 | $ | 1,860,433 | $ | 11,495,353 | |||||||||||||||||||||||||||||||
Total Charge-offs | $ | — | $ | 243 | $ | 121 | $ | 19 | $ | 11 | $ | 808 | $ | 949 | $ | 2,151 |
As of December 31, 2022 | Amortized Cost Basis of Term Loans by Year of Origination | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 and Prior | Revolving | Total | ||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 967,103 | $ | 442,001 | $ | 260,021 | $ | 101,998 | $ | 57,776 | $ | 421,312 | $ | 1,064,333 | $ | 3,314,544 | |||||||||||||||||||||||||||||||
Watch | 12,638 | 1,370 | 685 | 5,487 | 2,882 | 3,315 | 21,984 | 48,361 | |||||||||||||||||||||||||||||||||||||||
Substandard | 6,691 | 14,366 | 9,369 | 22,171 | 5,546 | 6,758 | 36,608 | 101,509 | |||||||||||||||||||||||||||||||||||||||
Commercial and industrial total | $ | 986,432 | $ | 457,737 | $ | 270,075 | $ | 129,656 | $ | 66,204 | $ | 431,385 | $ | 1,122,925 | $ | 3,464,414 | |||||||||||||||||||||||||||||||
PPP | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | — | $ | 7,807 | $ | 526 | $ | — | $ | — | $ | — | $ | — | $ | 8,333 | |||||||||||||||||||||||||||||||
Watch | — | 7 | — | — | — | — | — | 7 | |||||||||||||||||||||||||||||||||||||||
Substandard | — | 2,685 | — | — | — | — | — | 2,685 | |||||||||||||||||||||||||||||||||||||||
PPP total | $ | — | $ | 10,499 | $ | 526 | $ | — | $ | — | $ | — | $ | — | $ | 11,025 | |||||||||||||||||||||||||||||||
Owner occupied commercial real estate | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 511,547 | $ | 781,946 | $ | 255,476 | $ | 266,228 | $ | 103,943 | $ | 179,503 | $ | 34,117 | $ | 2,132,760 | |||||||||||||||||||||||||||||||
Watch | 22,079 | 3,410 | 12,346 | 8,520 | 3,645 | 11,899 | — | 61,899 | |||||||||||||||||||||||||||||||||||||||
Substandard | 2,971 | 23,802 | 26,490 | 6,358 | 2,574 | 7,353 | 1,100 | 70,648 | |||||||||||||||||||||||||||||||||||||||
Owner occupied commercial real estate total | $ | 536,597 | $ | 809,158 | $ | 294,312 | $ | 281,106 | $ | 110,162 | $ | 198,755 | $ | 35,217 | $ | 2,265,307 | |||||||||||||||||||||||||||||||
Non-owner occupied commercial real estate | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 756,059 | $ | 515,075 | $ | 227,383 | $ | 261,964 | $ | 127,400 | $ | 210,289 | $ | 70,398 | $ | 2,168,568 | |||||||||||||||||||||||||||||||
Watch | 8,131 | 792 | 2,849 | 38,218 | 38,510 | 16,180 | 547 | 105,227 | |||||||||||||||||||||||||||||||||||||||
Substandard | 202 | 6,784 | 1,838 | 16,019 | 22,332 | 9,970 | — | 57,145 | |||||||||||||||||||||||||||||||||||||||
Non-owner occupied commercial real estate total | $ | 764,392 | $ | 522,651 | $ | 232,070 | $ | 316,201 | $ | 188,242 | $ | 236,439 | $ | 70,945 | $ | 2,330,940 | |||||||||||||||||||||||||||||||
Real estate construction | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 597,370 | $ | 328,391 | $ | 88,660 | $ | 21,221 | $ | 2,568 | $ | 6,274 | $ | 8,252 | $ | 1,052,736 | |||||||||||||||||||||||||||||||
Watch | 665 | 16,218 | 1,257 | — | — | 122 | — | 18,262 | |||||||||||||||||||||||||||||||||||||||
Substandard | 2,587 | 356 | 173 | 446 | 1,478 | 44 | — | 5,084 | |||||||||||||||||||||||||||||||||||||||
Real estate construction total | $ | 600,622 | $ | 344,965 | $ | 90,090 | $ | 21,667 | $ | 4,046 | $ | 6,440 | $ | 8,252 | $ | 1,076,082 | |||||||||||||||||||||||||||||||
Agricultural and agricultural real estate | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 324,791 | $ | 140,252 | $ | 79,307 | $ | 34,447 | $ | 22,600 | $ | 38,672 | $ | 239,686 | $ | 879,755 | |||||||||||||||||||||||||||||||
Watch | 3,795 | 515 | 3,865 | 641 | 444 | 672 | 902 | 10,834 | |||||||||||||||||||||||||||||||||||||||
Substandard | 8,674 | 3,224 | 204 | 1,859 | 12,323 | 2,682 | 955 | 29,921 | |||||||||||||||||||||||||||||||||||||||
Agricultural and agricultural real estate total | $ | 337,260 | $ | 143,991 | $ | 83,376 | $ | 36,947 | $ | 35,367 | $ | 42,026 | $ | 241,543 | $ | 920,510 | |||||||||||||||||||||||||||||||
As of December 31, 2022 | Amortized Cost Basis of Term Loans by Year of Origination | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 and Prior | Revolving | Total | ||||||||||||||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 189,133 | $ | 268,561 | $ | 64,627 | $ | 39,468 | $ | 34,863 | $ | 217,489 | $ | 23,331 | $ | 837,472 | |||||||||||||||||||||||||||||||
Watch | 706 | 1,095 | 88 | 957 | 2,296 | 2,237 | 399 | 7,778 | |||||||||||||||||||||||||||||||||||||||
Substandard | 28 | 1,273 | 1,024 | 99 | 792 | 4,895 | — | 8,111 | |||||||||||||||||||||||||||||||||||||||
Residential real estate total | $ | 189,867 | $ | 270,929 | $ | 65,739 | $ | 40,524 | $ | 37,951 | $ | 224,621 | $ | 23,730 | $ | 853,361 | |||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 80,592 | $ | 47,787 | $ | 11,722 | $ | 6,022 | $ | 4,840 | $ | 24,655 | $ | 325,247 | $ | 500,865 | |||||||||||||||||||||||||||||||
Watch | 20 | 191 | 35 | 119 | 74 | 1,584 | 953 | 2,976 | |||||||||||||||||||||||||||||||||||||||
Substandard | 188 | 331 | 242 | 303 | 75 | 1,539 | 194 | 2,872 | |||||||||||||||||||||||||||||||||||||||
Consumer total | $ | 80,800 | $ | 48,309 | $ | 11,999 | $ | 6,444 | $ | 4,989 | $ | 27,778 | $ | 326,394 | $ | 506,713 | |||||||||||||||||||||||||||||||
Total Pass | $ | 3,426,595 | $ | 2,531,820 | $ | 987,722 | $ | 731,348 | $ | 353,990 | $ | 1,098,194 | $ | 1,765,364 | $ | 10,895,033 | |||||||||||||||||||||||||||||||
Total Watch | 48,034 | 23,598 | 21,125 | 53,942 | 47,851 | 36,009 | 24,785 | 255,344 | |||||||||||||||||||||||||||||||||||||||
Total Substandard | 21,341 | 52,821 | 39,340 | 47,255 | 45,120 | 33,241 | 38,857 | 277,975 | |||||||||||||||||||||||||||||||||||||||
Total Loans | $ | 3,495,970 | $ | 2,608,239 | $ | 1,048,187 | $ | 832,545 | $ | 446,961 | $ | 1,167,444 | $ | 1,829,006 | $ | 11,428,352 |
Accruing Loans | |||||||||||||||||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Total Past Due | Current | Nonaccrual | Total Loans | |||||||||||||||||||||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 2,783 | $ | 800 | $ | 24 | $ | 3,607 | $ | 3,470,831 | $ | 23,907 | $ | 3,498,345 | |||||||||||||||||||||||||||
PPP | — | — | — | — | 8,258 | — | 8,258 | ||||||||||||||||||||||||||||||||||
Owner occupied commercial real estate | 3,365 | 377 | — | 3,742 | 2,300,588 | 8,208 | 2,312,538 | ||||||||||||||||||||||||||||||||||
Non-owner occupied commercial real estate | 748 | — | — | 748 | 2,409,369 | 11,224 | 2,421,341 | ||||||||||||||||||||||||||||||||||
Real estate construction | 642 | — | 5 | 647 | 1,099,267 | 2,272 | 1,102,186 | ||||||||||||||||||||||||||||||||||
Agricultural and agricultural real estate | 255 | — | 17 | 272 | 802,741 | 7,170 | 810,183 | ||||||||||||||||||||||||||||||||||
Residential real estate | 1,073 | 41 | 41 | 1,155 | 835,781 | 4,148 | 841,084 | ||||||||||||||||||||||||||||||||||
Consumer | 1,203 | 397 | 87 | 1,687 | 498,594 | 1,137 | 501,418 | ||||||||||||||||||||||||||||||||||
Total gross loans receivable held to maturity | $ | 10,069 | $ | 1,615 | $ | 174 | $ | 11,858 | $ | 11,425,429 | $ | 58,066 | $ | 11,495,353 | |||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 1,099 | $ | 356 | $ | 131 | $ | 1,586 | $ | 3,440,062 | $ | 22,766 | $ | 3,464,414 | |||||||||||||||||||||||||||
PPP | — | — | — | — | 11,006 | 19 | 11,025 | ||||||||||||||||||||||||||||||||||
Owner occupied commercial real estate | 12 | 127 | — | 139 | 2,256,365 | 8,803 | 2,265,307 | ||||||||||||||||||||||||||||||||||
Non-owner occupied commercial real estate | — | — | — | — | 2,319,282 | 11,658 | 2,330,940 | ||||||||||||||||||||||||||||||||||
Real estate construction | 16 | 28 | — | 44 | 1,073,687 | 2,351 | 1,076,082 | ||||||||||||||||||||||||||||||||||
Agricultural and agricultural real estate | 48 | — | 142 | 190 | 914,088 | 6,232 | 920,510 | ||||||||||||||||||||||||||||||||||
Residential real estate | 1,206 | 152 | — | 1,358 | 846,739 | 5,264 | 853,361 | ||||||||||||||||||||||||||||||||||
Consumer | 1,526 | 196 | — | 1,722 | 503,853 | 1,138 | 506,713 | ||||||||||||||||||||||||||||||||||
Total gross loans receivable held to maturity | $ | 3,907 | $ | 859 | $ | 273 | $ | 5,039 | $ | 11,365,082 | $ | 58,231 | $ | 11,428,352 |
Pass | Nonpass | Total | |||||||||
September 30, 2017 | |||||||||||
Commercial | $ | 1,523,080 | $ | 90,823 | $ | 1,613,903 | |||||
Commercial real estate | 2,992,663 | 171,290 | 3,163,953 | ||||||||
Total commercial and commercial real estate | 4,515,743 | 262,113 | 4,777,856 | ||||||||
Agricultural and agricultural real estate | 445,554 | 66,210 | 511,764 | ||||||||
Residential real estate | 597,987 | 37,624 | 635,611 | ||||||||
Consumer | 437,831 | 12,257 | 450,088 | ||||||||
Total gross loans receivable held to maturity | $ | 5,997,115 | $ | 378,204 | $ | 6,375,319 | |||||
December 31, 2016 | |||||||||||
Commercial | $ | 1,187,557 | $ | 99,708 | $ | 1,287,265 | |||||
Commercial real estate | 2,379,632 | 158,950 | 2,538,582 | ||||||||
Total commercial and commercial real estate | 3,567,189 | 258,658 | 3,825,847 | ||||||||
Agricultural and agricultural real estate | 424,311 | 65,007 | 489,318 | ||||||||
Residential real estate | 584,626 | 33,298 | 617,924 | ||||||||
Consumer | 409,474 | 11,139 | 420,613 | ||||||||
Total gross loans receivable held to maturity | $ | 4,985,600 | $ | 368,102 | $ | 5,353,702 |
Accruing Loans | |||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Total Past Due | Current | Nonaccrual | Total Loans | |||||||||||||||||||||
September 30, 2017 | |||||||||||||||||||||||||||
Commercial | $ | 2,591 | $ | 133 | $ | 215 | $ | 2,939 | $ | 1,603,397 | $ | 7,567 | $ | 1,613,903 | |||||||||||||
Commercial real estate | 6,140 | 465 | — | 6,605 | 3,140,672 | 16,676 | 3,163,953 | ||||||||||||||||||||
Total commercial and commercial real estate | 8,731 | 598 | 215 | 9,544 | 4,744,069 | 24,243 | 4,777,856 | ||||||||||||||||||||
Agricultural and agricultural real estate | 315 | 782 | 1,282 | 2,379 | 496,593 | 12,792 | 511,764 | ||||||||||||||||||||
Residential real estate | 5,033 | 449 | — | 5,482 | 607,165 | 22,964 | 635,611 | ||||||||||||||||||||
Consumer | 3,001 | 1,813 | 851 | 5,665 | 440,966 | 3,457 | 450,088 | ||||||||||||||||||||
Total gross loans receivable held to maturity | $ | 17,080 | $ | 3,642 | $ | 2,348 | $ | 23,070 | $ | 6,288,793 | $ | 63,456 | $ | 6,375,319 | |||||||||||||
December 31, 2016 | |||||||||||||||||||||||||||
Commercial | $ | 1,127 | $ | 219 | $ | 77 | $ | 1,423 | $ | 1,281,241 | $ | 4,601 | $ | 1,287,265 | |||||||||||||
Commercial real estate | 886 | 3,929 | — | 4,815 | 2,513,069 | 20,698 | 2,538,582 | ||||||||||||||||||||
Total commercial and commercial real estate | 2,013 | 4,148 | 77 | 6,238 | 3,794,310 | 25,299 | 3,825,847 | ||||||||||||||||||||
Agricultural and agricultural real estate | 199 | 3,191 | — | 3,390 | 472,597 | 13,331 | 489,318 | ||||||||||||||||||||
Residential real estate | 4,986 | 846 | — | 5,832 | 590,626 | 21,466 | 617,924 | ||||||||||||||||||||
Consumer | 3,455 | 1,021 | 9 | 4,485 | 411,925 | 4,203 | 420,613 | ||||||||||||||||||||
Total gross loans receivable held to maturity | $ | 10,653 | $ | 9,206 | $ | 86 | $ | 19,945 | $ | 5,269,458 | $ | 64,299 | $ | 5,353,702 |
Unpaid Contractual Balance | Loan Balance | Related Allowance Recorded | Quarter- to- Date Avg. Loan Balance | Quarter- to- Date Interest Income Recognized | Year- to- Date Avg. Loan Balance | Year- to- Date Interest Income Recognized | |||||||||||||||||||||
September 30, 2017 | |||||||||||||||||||||||||||
Impaired loans with a related allowance: | |||||||||||||||||||||||||||
Commercial | $ | 3,190 | $ | 3,190 | $ | 2,166 | $ | 4,885 | $ | — | $ | 3,829 | $ | 1 | |||||||||||||
Commercial real estate | 11,272 | 9,416 | 864 | 10,637 | — | 12,106 | 7 | ||||||||||||||||||||
Total commercial and commercial real estate | 14,462 | 12,606 | 3,030 | 15,522 | — | 15,935 | 8 | ||||||||||||||||||||
Agricultural and agricultural real estate | 10,289 | 10,289 | 2,353 | 3,532 | — | 2,140 | — | ||||||||||||||||||||
Residential real estate | 1,640 | 1,640 | 393 | 1,633 | — | 2,197 | 10 | ||||||||||||||||||||
Consumer | 2,179 | 2,179 | 1,267 | 2,155 | 10 | 2,343 | 32 | ||||||||||||||||||||
Total impaired loans with a related allowance | $ | 28,570 | $ | 26,714 | $ | 7,043 | $ | 22,842 | $ | 10 | $ | 22,615 | $ | 50 | |||||||||||||
Impaired loans without a related allowance: | |||||||||||||||||||||||||||
Commercial | $ | 4,887 | $ | 3,767 | $ | — | $ | 2,727 | $ | — | $ | 2,017 | $ | 112 | |||||||||||||
Commercial real estate | 19,132 | 18,527 | — | 18,237 | 201 | 21,750 | 536 | ||||||||||||||||||||
Total commercial and commercial real estate | 24,019 | 22,294 | — | 20,964 | 201 | 23,767 | 648 | ||||||||||||||||||||
Agricultural and agricultural real estate | 2,503 | 2,503 | — | 8,343 | — | 10,858 | — | ||||||||||||||||||||
Residential real estate | 28,197 | 28,193 | — | 27,556 | 112 | 26,006 | 230 | ||||||||||||||||||||
Consumer | 4,345 | 4,345 | — | 4,222 | 19 | 3,849 | 61 | ||||||||||||||||||||
Total impaired loans without a related allowance | $ | 59,064 | $ | 57,335 | $ | — | $ | 61,085 | $ | 332 | $ | 64,480 | $ | 939 | |||||||||||||
Total impaired loans held to maturity: | |||||||||||||||||||||||||||
Commercial | $ | 8,077 | $ | 6,957 | $ | 2,166 | $ | 7,612 | $ | — | $ | 5,846 | $ | 113 | |||||||||||||
Commercial real estate | 30,404 | 27,943 | 864 | 28,874 | 201 | 33,856 | 543 | ||||||||||||||||||||
Total commercial and commercial real estate | 38,481 | 34,900 | 3,030 | 36,486 | 201 | 39,702 | 656 | ||||||||||||||||||||
Agricultural and agricultural real estate | 12,792 | 12,792 | 2,353 | 11,875 | — | 12,998 | — | ||||||||||||||||||||
Residential real estate | 29,837 | 29,833 | 393 | 29,189 | 112 | 28,203 | 240 | ||||||||||||||||||||
Consumer | 6,524 | 6,524 | 1,267 | 6,377 | 29 | 6,192 | 93 | ||||||||||||||||||||
Total impaired loans held to maturity | $ | 87,634 | $ | 84,049 | $ | 7,043 | $ | 83,927 | $ | 342 | $ | 87,095 | $ | 989 |
Unpaid Contractual Balance | Loan Balance | Related Allowance Recorded | Year-to- Date Avg. Loan Balance | Year-to- Date Interest Income Recognized | |||||||||||||||
December 31, 2016 | |||||||||||||||||||
Impaired loans with a related allowance: | |||||||||||||||||||
Commercial | $ | 2,852 | $ | 2,840 | $ | 1,318 | $ | 3,136 | $ | 2 | |||||||||
Commercial real estate | 14,221 | 14,221 | 2,671 | 10,625 | 21 | ||||||||||||||
Total commercial and commercial real estate | 17,073 | 17,061 | 3,989 | 13,761 | 23 | ||||||||||||||
Agricultural and agricultural real estate | 2,771 | 2,771 | 816 | 912 | 21 | ||||||||||||||
Residential real estate | 3,490 | 3,490 | 497 | 3,371 | 43 | ||||||||||||||
Consumer | 2,644 | 2,644 | 1,451 | 3,082 | 42 | ||||||||||||||
Total impaired loans with a related allowance | $ | 25,978 | $ | 25,966 | $ | 6,753 | $ | 21,126 | $ | 129 | |||||||||
Impaired loans without a related allowance: | |||||||||||||||||||
Commercial | $ | 925 | $ | 872 | $ | — | $ | 5,329 | $ | 251 | |||||||||
Commercial real estate | 31,875 | 30,996 | — | 39,632 | 1,647 | ||||||||||||||
Total commercial and commercial real estate | 32,800 | 31,868 | — | 44,961 | 1,898 | ||||||||||||||
Agricultural and agricultural real estate | 13,959 | 13,959 | — | 12,722 | 157 | ||||||||||||||
Residential real estate | 22,408 | 22,236 | — | 18,446 | 202 | ||||||||||||||
Consumer | 3,344 | 3,344 | — | 2,659 | 68 | ||||||||||||||
Total impaired loans without a related allowance | $ | 72,511 | $ | 71,407 | $ | — | $ | 78,788 | $ | 2,325 | |||||||||
Total impaired loans held to maturity: | |||||||||||||||||||
Commercial | $ | 3,777 | $ | 3,712 | $ | 1,318 | $ | 8,465 | $ | 253 | |||||||||
Commercial real estate | 46,096 | 45,217 | 2,671 | 50,257 | 1,668 | ||||||||||||||
Total commercial and commercial real estate | 49,873 | 48,929 | 3,989 | 58,722 | 1,921 | ||||||||||||||
Agricultural and agricultural real estate | 16,730 | 16,730 | 816 | 13,634 | 178 | ||||||||||||||
Residential real estate | 25,898 | 25,726 | 497 | 21,817 | 245 | ||||||||||||||
Consumer | 5,988 | 5,988 | 1,451 | 5,741 | 110 | ||||||||||||||
Total impaired loans held to maturity | $ | 98,489 | $ | 97,373 | $ | 6,753 | �� | $ | 99,914 | $ | 2,454 |
September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Impaired Purchased Loans | Non Impaired Purchased Loans | Total Purchased Loans | Impaired Purchased Loans | Non Impaired Purchased Loans | Total Purchased Loans | ||||||||||||||||||
Commercial | $ | 968 | $ | 270,241 | $ | 271,209 | $ | 2,198 | $ | 99,082 | $ | 101,280 | |||||||||||
Commercial real estate | 2,509 | 1,181,333 | 1,183,842 | 2,079 | 622,117 | 624,196 | |||||||||||||||||
Agricultural and agricultural real estate | — | 1,251 | 1,251 | — | 181 | 181 | |||||||||||||||||
Residential real estate | 211 | 184,167 | 184,378 | 186 | 157,468 | 157,654 | |||||||||||||||||
Consumer loans | — | 62,491 | 62,491 | — | 47,368 | 47,368 | |||||||||||||||||
Total loans | $ | 3,688 | $ | 1,699,483 | $ | 1,703,171 | $ | 4,463 | $ | 926,216 | $ | 930,679 |
Commercial and Industrial | Owner Occupied Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | Real Estate Construction | Agricultural and Agricultural Real Estate | Residential Real Estate | Consumer | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | 29,071 | $ | 13,948 | $ | 16,539 | $ | 29,998 | $ | 2,634 | $ | 7,711 | $ | 9,582 | $ | 109,483 | |||||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | (1,451) | (14) | — | — | — | — | (686) | (2,151) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 1,722 | 112 | — | 17 | 10 | 19 | 1,311 | 3,191 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision (benefit) | 2,481 | 105 | 523 | 123 | (98) | (166) | (784) | 2,184 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | 31,823 | $ | 14,151 | $ | 17,062 | $ | 30,138 | $ | 2,546 | $ | 7,564 | $ | 9,423 | $ | 112,707 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Balance at beginning of period | $ | 101 | $ | 168 | $ | 182 | $ | 557 | |||||||
Original yield discount, net, at date of acquisitions | — | — | — | 19 | |||||||||||
Accretion | (700 | ) | (379 | ) | (1,074 | ) | (845 | ) | |||||||
Reclassification from nonaccretable difference(1) | 654 | 331 | 947 | 389 | |||||||||||
Balance at period end | $ | 55 | $ | 120 | $ | 55 | $ | 120 | |||||||
(1) Represents increases in estimated cash flows expected to be received, primarily due to lower estimated credit losses. |
Commercial and Industrial | Owner Occupied Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | Real Estate Construction | Agricultural and Agricultural Real Estate | Residential Real Estate | Consumer | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | 27,738 | $ | 19,214 | $ | 17,908 | $ | 22,538 | $ | 5,213 | $ | 8,427 | $ | 9,050 | $ | 110,088 | |||||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | (4,500) | — | (129) | — | (3,104) | (88) | (5,396) | (13,217) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 206 | 40 | 33 | 7 | 453 | — | 284 | 1,023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision (benefit) | 2,356 | (1,279) | (1,799) | (1,148) | 105 | (464) | 4,857 | 2,628 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | 25,800 | $ | 17,975 | $ | 16,013 | $ | 21,397 | $ | 2,667 | $ | 7,875 | $ | 8,795 | $ | 100,522 |
Commercial | Commercial Real Estate | Agricultural | Residential Real Estate | Consumer | Total | ||||||||||||||||||
Balance at June 30, 2017 | $ | 17,168 | $ | 21,861 | $ | 3,832 | $ | 2,263 | $ | 8,927 | $ | 54,051 | |||||||||||
Charge-offs | (1,954 | ) | (1,913 | ) | — | (142 | ) | (1,750 | ) | (5,759 | ) | ||||||||||||
Recoveries | 347 | 46 | 14 | 63 | 418 | 888 | |||||||||||||||||
Provision | 1,409 | 546 | 2,281 | 82 | 1,387 | 5,705 | |||||||||||||||||
Balance at September 30, 2017 | $ | 16,970 | $ | 20,540 | $ | 6,127 | $ | 2,266 | $ | 8,982 | $ | 54,885 | |||||||||||
Commercial | Commercial Real Estate | Agricultural | Residential Real Estate | Consumer | Total | ||||||||||||||||||
Balance at December 31, 2016 | $ | 14,765 | $ | 24,319 | $ | 4,210 | $ | 2,263 | $ | 8,767 | $ | 54,324 | |||||||||||
Charge-offs | (3,310 | ) | (2,522 | ) | (888 | ) | (541 | ) | (4,982 | ) | (12,243 | ) | |||||||||||
Recoveries | 635 | 860 | 17 | 70 | 987 | 2,569 | |||||||||||||||||
Provision | 4,880 | (2,117 | ) | 2,788 | 474 | 4,210 | 10,235 | ||||||||||||||||
Balance at September 30, 2017 | $ | 16,970 | $ | 20,540 | $ | 6,127 | $ | 2,266 | $ | 8,982 | $ | 54,885 |
Commercial | Commercial Real Estate | Agricultural | Residential Real Estate | Consumer | Total | ||||||||||||||||||
Balance at June 30, 2016 | $ | 15,525 | $ | 22,968 | $ | 4,100 | $ | 2,065 | $ | 7,098 | $ | 51,756 | |||||||||||
Charge-offs | (240 | ) | (814 | ) | — | (106 | ) | (2,123 | ) | (3,283 | ) | ||||||||||||
Recoveries | 119 | 467 | 2 | 1 | 263 | 852 | |||||||||||||||||
Provision | 1,487 | 1,060 | 904 | 22 | 1,855 | 5,328 | |||||||||||||||||
Balance at September 30, 2016 | $ | 16,891 | $ | 23,681 | $ | 5,006 | $ | 1,982 | $ | 7,093 | $ | 54,653 | |||||||||||
Commercial | Commercial Real Estate | Agricultural | Residential Real Estate | Consumer | Total | ||||||||||||||||||
Balance at December 31, 2015 | $ | 16,095 | $ | 19,532 | $ | 3,887 | $ | 1,934 | $ | 7,237 | $ | 48,685 | |||||||||||
Charge-offs | (587 | ) | (2,229 | ) | — | (248 | ) | (4,775 | ) | (7,839 | ) | ||||||||||||
Recoveries | 438 | 3,056 | 9 | 25 | 766 | 4,294 | |||||||||||||||||
Provision | 945 | 3,322 | 1,110 | 271 | 3,865 | 9,513 | |||||||||||||||||
Balance at September 30, 2016 | $ | 16,891 | $ | 23,681 | $ | 5,006 | $ | 1,982 | $ | 7,093 | $ | 54,653 |
For the Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Balance at December 31, | $ | 20,196 | $ | 15,462 | |||||||
Provision | 890 | 617 | |||||||||
Balance at March 31, | $ | 21,086 | $ | 16,079 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||
Amortizing intangible assets: | |||||||||||||||||||||||||||||||||||
Core deposit intangibles | $ | 101,185 | $ | 77,819 | $ | 23,366 | $ | 101,185 | $ | 76,031 | $ | 25,154 | |||||||||||||||||||||||
Mortgage servicing rights | — | — | — | 13,700 | 5,860 | 7,840 | |||||||||||||||||||||||||||||
Total | $ | 101,185 | $ | 77,819 | $ | 23,366 | $ | 114,885 | $ | 81,891 | $ | 32,994 |
September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Amortizing intangible assets: | |||||||||||||||||||||||
Core deposit intangibles | $ | 62,008 | $ | 25,271 | $ | 36,737 | $ | 43,504 | $ | 21,049 | $ | 22,455 | |||||||||||
Customer relationship intangibles | 1,177 | 886 | 291 | 1,177 | 857 | 320 | |||||||||||||||||
Mortgage servicing rights | 41,903 | 18,161 | 23,742 | 50,467 | 18,379 | 32,088 | |||||||||||||||||
Commercial servicing rights | 6,719 | 3,862 | 2,857 | 6,504 | 2,814 | 3,690 | |||||||||||||||||
Total | $ | 111,807 | $ | 48,180 | $ | 63,627 | $ | 101,652 | $ | 43,099 | $ | 58,553 |
Core Deposit Intangibles | |||||||||||||||||||||||||||||
Nine months ending December 31, 2023 | $ | 4,951 | |||||||||||||||||||||||||||
Year ending December 31, | |||||||||||||||||||||||||||||
2024 | 5,591 | ||||||||||||||||||||||||||||
2025 | 4,700 | ||||||||||||||||||||||||||||
2026 | 3,533 | ||||||||||||||||||||||||||||
2027 | 2,601 | ||||||||||||||||||||||||||||
2028 | 1,287 | ||||||||||||||||||||||||||||
Thereafter | 703 | ||||||||||||||||||||||||||||
Total | $ | 23,366 |
Core Deposit Intangibles | Customer Relationship Intangibles | Mortgage Servicing Rights | Commercial Servicing Rights | Total | |||||||||||||||
Three months ending December 31, 2017 | $ | 1,815 | $ | 10 | $ | 2,463 | $ | 184 | $ | 4,472 | |||||||||
Year ending December 31, | |||||||||||||||||||
2018 | 6,712 | 39 | 5,319 | 701 | 12,771 | ||||||||||||||
2019 | 5,915 | 38 | 4,560 | 566 | 11,079 | ||||||||||||||
2020 | 5,191 | 37 | 3,800 | 442 | 9,470 | ||||||||||||||
2021 | 4,425 | 35 | 3,040 | 380 | 7,880 | ||||||||||||||
2022 | 3,391 | 34 | 2,280 | 307 | 6,012 | ||||||||||||||
Thereafter | 9,288 | 98 | 2,280 | 277 | 11,943 | ||||||||||||||
Total | $ | 36,737 | $ | 291 | $ | 23,742 | $ | 2,857 | $ | 63,627 |
2023 | 2022 | ||||||||||
Balance at January 1, | $ | 7,840 | $ | 6,412 | |||||||
Originations | 24 | 437 | |||||||||
Amortization | (210) | (405) | |||||||||
Sale of mortgage servicing rights | (7,654) | — | |||||||||
Valuation adjustment | — | 1,658 | |||||||||
Balance at period end | $ | — | $ | 8,102 | |||||||
Mortgage servicing rights, net to servicing portfolio | — | % | 1.11 | % |
2017 | 2016 | ||||||
Balance at January 1, | $ | 32,088 | $ | 30,314 | |||
Originations | 5,778 | 9,323 | |||||
Amortization | (7,184 | ) | (7,795 | ) | |||
Sale of mortgage servicing rights | (6,940 | ) | — | ||||
Balance at period end | $ | 23,742 | $ | 31,842 | |||
Fair value of mortgage servicing rights | $ | 35,002 | $ | 38,127 | |||
Mortgage servicing rights, net to servicing portfolio | 0.67 | % | 0.75 | % |
2017 | 2016 | ||||||
Balance at January 1, | $ | 3,690 | $ | 4,611 | |||
Purchased commercial servicing rights | — | 190 | |||||
Originations | 215 | 533 | |||||
Amortization | (1,077 | ) | (1,229 | ) | |||
Valuation allowance on commercial servicing rights | 29 | (41 | ) | ||||
Balance at period end | $ | 2,857 | $ | 4,064 | |||
Fair value of commercial servicing rights | $ | 3,458 | $ | 4,397 | |||
Commercial servicing rights, net to servicing portfolio | 1.98 | % | 2.38 | % |
Book Value 15-Year Tranche | Fair Value 15-Year Tranche | Valuation Allowance 15-Year Tranche | Book Value 30-Year Tranche | Fair Value 30-Year Tranche | Valuation Allowance 30-Year Tranche | ||||||||||||||||||||||||||||||
March 31, 2023 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
December 31, 2022 | $ | 1,388 | $ | 1,388 | $ | — | $ | 6,452 | $ | 6,452 | $ | — | |||||||||||||||||||||||
September 30, 2017 | Book Value- Less than 20 Years | Fair Value- Less than 20 Years | Impairment- Less than 20 Years | Book Value- More than 20 Years | Fair Value- More than 20 Years | Impairment- More than 20 Years | |||||||||||||||||
Citywide Banks | $ | 12 | $ | 15 | $ | — | $ | 54 | $ | 61 | $ | — | |||||||||||
Premier Valley Bank | 95 | 124 | — | 317 | 313 | 4 | |||||||||||||||||
Wisconsin Bank & Trust | 515 | 688 | — | 1,868 | 2,257 | — | |||||||||||||||||
Total | $ | 622 | $ | 827 | $ | — | $ | 2,239 | $ | 2,631 | $ | 4 | |||||||||||
December 31, 2016 | |||||||||||||||||||||||
Citywide Banks | $ | 19 | $ | 23 | $ | — | $ | 107 | $ | 114 | $ | — | |||||||||||
Premier Valley Bank | 156 | 180 | — | 359 | 326 | 33 | |||||||||||||||||
Wisconsin Bank & Trust | 833 | 997 | — | 2,249 | 2,487 | — | |||||||||||||||||
Total | $ | 1,008 | $ | 1,200 | $ | — | $ | 2,715 | $ | 2,927 | $ | 33 |
Notional Amount | Fair Value | Balance Sheet Category | |||||||||||||||||||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||||||||||||||
Interest rate swap | $ | — | $ | — | Other Assets | ||||||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||
Interest rate swap | $ | 500,000 | $ | 13 | Other Assets | ||||||||||||||||||||||||||||||
Notional Amount | Fair Value | Balance Sheet Category | Receive Rate | Weighted Average Pay Rate | Maturity | ||||||||||||
September 30, 2017 | |||||||||||||||||
Interest rate swap | $ | 25,000 | $ | (346 | ) | Other liabilities | 1.321 | % | 2.255 | % | 03/17/2021 | ||||||
Interest rate swap | — | — | Other liabilities | — | % | 3.220 | % | 03/01/2017 | |||||||||
Interest rate swap | 20,000 | (828 | ) | Other liabilities | 1.303 | % | 3.355 | % | 01/07/2020 | ||||||||
Interest rate swap | 10,000 | (6 | ) | Other liabilities | 1.329 | % | 1.674 | % | 03/26/2019 | ||||||||
Interest rate swap | 10,000 | (5 | ) | Other liabilities | 1.321 | % | 1.658 | % | 03/18/2019 | ||||||||
Interest rate swap | 35,667 | 557 | Other assets | 3.735 | % | 3.674 | % | 05/10/2021 | |||||||||
Interest rate swap | 20,000 | (393 | ) | Other liabilities | 1.320 | % | 2.390 | % | 06/15/2024 | ||||||||
Interest rate swap | 20,000 | (365 | ) | Other liabilities | 1.316 | % | 2.352 | % | 03/01/2024 | ||||||||
December 31, 2016 | |||||||||||||||||
Interest rate swap | $ | 25,000 | $ | (447 | ) | Other liabilities | 0.993 | % | 2.255 | % | 03/17/2021 | ||||||
Interest rate swap | 20,000 | (114 | ) | Other liabilities | 0.931 | % | 3.220 | % | 03/01/2017 | ||||||||
Interest rate swap | 20,000 | (1,145 | ) | Other liabilities | 0.868 | % | 3.355 | % | 01/07/2020 | ||||||||
Interest rate swap | 10,000 | (42 | ) | Other liabilities | 0.997 | % | 1.674 | % | 03/26/2019 | ||||||||
Interest rate swap | 10,000 | (41 | ) | Other liabilities | 0.993 | % | 1.658 | % | 03/18/2019 | ||||||||
Interest rate swap | 37,667 | 530 | Other assets | 3.164 | % | 3.674 | % | 05/10/2021 | |||||||||
Interest rate swap(1) | 20,000 | (214 | ) | Other liabilities | — | % | 2.390 | % | 06/15/2024 | ||||||||
Interest rate swap(2) | 20,000 | (262 | ) | Other Liabilities | — | % | 2.352 | % | 03/01/2024 | ||||||||
(1) This swap is a forward starting swap with a weighted average pay rate of 2.390% beginning on June 15, 2017. No interest payments were required on this swap until September 15, 2017. | |||||||||||||||||
(2) This swap is a forward starting swap with a weighted average pay rate of 2.352% beginning on March 1, 2017. No interest payments were required on this swap until June 1, 2017. |
Recognized in OCI | Reclassified from AOCI into Income | ||||||||||||||||||||||||||||
Amount of Gain (Loss) | Category | Amount of Gain (Loss) | |||||||||||||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||||||||
Interest rate swap | $ | 1,952 | Interest income | $ | 591 | ||||||||||||||||||||||||
March 31, 2022 | |||||||||||||||||||||||||||||
Interest rate swap | $ | — | Interest income | $ | — | ||||||||||||||||||||||||
Effective Portion | Ineffective Portion | ||||||||||||||
Recognized in OCI | Reclassified from AOCI into Income | Recognized in Income on Derivatives | |||||||||||||
Amount of Gain (Loss) | Category | Amount of Gain (Loss) | Category | Amount of Gain (Loss) | |||||||||||
Three Months Ended September 30, 2017 | |||||||||||||||
Interest rate swaps | $ | 325 | Interest expense | $ | (308 | ) | Other income | $ | — | ||||||
Nine Months Ended September 30, 2017 | |||||||||||||||
Interest rate swaps | $ | 349 | Interest expense | $ | (1,005 | ) | Other income | $ | — | ||||||
Three Months Ended September 30, 2016 | |||||||||||||||
Interest rate swaps | $ | 1,336 | Interest expense | $ | (492 | ) | Other income | $ | — | ||||||
Nine Months Ended September 30, 2016 | |||||||||||||||
Interest rate swaps | $ | (3,160 | ) | Interest expense | $ | (1,463 | ) | Other income | $ | — |
Notional Amount | Fair Value | Balance Sheet Category | |||||||||||||||
March 31, 2023 | |||||||||||||||||
Fair value hedges | $ | 1,132 | $ | 39 | Other assets | ||||||||||||
December 31, 2022 | |||||||||||||||||
Fair value hedges | $ | 1,185 | $ | 54 | Other assets |
Notional Amount | Fair Value | Balance Sheet Category | |||||||
September 30, 2017 | |||||||||
Fair value hedges | $ | 35,813 | $ | (1,537 | ) | Other liabilities | |||
December 31, 2016 | |||||||||
Fair value hedges | $ | 40,807 | $ | (1,626 | ) | Other liabilities |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Gain (loss) recognized in interest income on fair value hedges | $ | (15) | $ | 1,183 |
Amount of Gain (Loss) | Income Statement Category | |||||
Three Months Ended September 30, 2017 | ||||||
Fair value hedges | $ | (63 | ) | Interest income | ||
Nine Months Ended September 30, 2017 | ||||||
Fair value hedges | $ | 89 | Interest income | |||
Three Months Ended September 30, 2016 | ||||||
Fair value hedges | $ | (225 | ) | Interest income | ||
Nine Months Ended September 30, 2016 | ||||||
Fair value hedges | $ | (2,335 | ) | Interest income |
Notional Amount | Fair Value | Balance Sheet Category | |||||||||||||||||||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||||||||||||||
Embedded derivatives | $ | 5,935 | $ | 98 | Other assets | ||||||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||
Embedded derivatives | $ | 6,028 | $ | 135 | Other assets | ||||||||||||||||||||||||||||||
Notional Amount | Fair Value | Balance Sheet Category | |||||||
September 30, 2017 | |||||||||
Embedded derivatives | $ | 14,175 | $ | 923 | Other assets | ||||
December 31, 2016 | |||||||||
Embedded derivatives | $ | 14,549 | $ | 1,104 | Other assets |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Gain (loss) recognized in other noninterest income on embedded derivatives | $ | (37) | $ | 225 |
Amount of Gain (Loss) | Income Statement Category | |||||
Three Months Ended September 30, 2017 | ||||||
Embedded derivatives | $ | (296 | ) | Other noninterest income | ||
Nine Months Ended September 30, 2017 | ||||||
Embedded derivatives | $ | (181 | ) | Other noninterest income | ||
Three Months Ended September 30, 2016 | ||||||
Embedded derivatives | $ | (173 | ) | Other noninterest income | ||
Nine Months Ended September 30, 2016 | ||||||
Embedded derivatives | $ | 243 | Other noninterest income |
Notional Amount | Fair Value | Balance Sheet Category | |||||||
September 30, 2017 | |||||||||
Embedded conversion option | $ | — | $ | — | Other liabilities | ||||
December 31, 2016 | |||||||||
Embedded conversion option | $ | 558 | $ | (422 | ) | Other liabilities |
Amount of Gain (Loss) | Income Statement Category | |||||
Three Months Ended September 30, 2017 | ||||||
Embedded conversion option | $ | 285 | Other noninterest income | |||
Nine Months Ended September 30, 2017 | ||||||
Embedded conversion option | $ | 422 | Other noninterest income | |||
Three Months Ended September 30, 2016 | ||||||
Embedded conversion option | $ | 435 | Other noninterest income | |||
Nine Months Ended September 30, 2016 | ||||||
Embedded conversion option | $ | 138 | Other noninterest income |
Notional Amount | Fair Value | Balance Sheet Category | Weighted Average Receive Rate | Weighted Average Pay Rate | |||||||||||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||||||||
Customer interest rate swaps | $ | 1,017,539 | $ | 27,805 | Other assets | 4.14 | % | 6.97 | % | ||||||||||||||||||||
Customer interest rate swaps | 1,017,539 | (27,805) | Other liabilities | 6.97 | 4.14 | ||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||
Customer interest rate swaps | $ | 819,662 | $ | 46,091 | Other assets | 4.23 | % | 6.76 | % | ||||||||||||||||||||
Customer interest rate swaps | 819,662 | (46,091) | Other liabilities | 6.76 | 4.23 | ||||||||||||||||||||||||
Notional Amount | Fair Value | Balance Sheet Category | Weighted Average Receive Rate | Weighted Average Pay Rate | ||||||||||||
September 30, 2017 | ||||||||||||||||
Customer interest rate swaps | $ | 90,370 | $ | 1,906 | Other assets | 4.75 | % | 3.91 | % | |||||||
Customer interest rate swaps | 90,370 | (1,906 | ) | Other liabilities | 3.91 | % | 4.75 | % | ||||||||
December 31, 2016 | ||||||||||||||||
Customer interest rate swaps | $ | 69,594 | $ | 1,588 | Other assets | 4.66 | % | 3.47 | % | |||||||
Customer interest rate swaps | 69,594 | (1,588 | ) | Other liabilities | 3.47 | % | 4.66 | % |
Balance Sheet Category | Notional Amount | Fair Value | |||||||||||||||
March 31, 2023 | |||||||||||||||||
Interest rate lock commitments (mortgage) | Other assets | $ | 15,717 | $ | 449 | ||||||||||||
Forward commitments | Other assets | 21,000 | 241 | ||||||||||||||
Forward commitments | Other liabilities | 4,150 | (21) | ||||||||||||||
Undesignated interest rate swaps | Other liabilities | 5,935 | (98) | ||||||||||||||
December 31, 2022 | |||||||||||||||||
Interest rate lock commitments (mortgage) | Other assets | $ | 9,340 | $ | 174 | ||||||||||||
Forward commitments | Other assets | 6,400 | 47 | ||||||||||||||
Forward commitments | Other liabilities | 5,750 | (99) | ||||||||||||||
Undesignated interest rate swaps | Other liabilities | 6,028 | (135) | ||||||||||||||
Balance Sheet Category | Notional Amount | Fair Value | |||||||
September 30, 2017 | |||||||||
Interest rate lock commitments (mortgage) | Other assets | $ | 77,910 | $ | 2,463 | ||||
Forward commitments | Other assets | 75,192 | 237 | ||||||
Forward commitments | Other liabilities | 91,865 | (261 | ) | |||||
Undesignated interest rate swaps | Other liabilities | 14,175 | (923 | ) | |||||
December 31, 2016 | |||||||||
Interest rate lock commitments (mortgage) | Other assets | $ | 80,465 | $ | 2,790 | ||||
Forward commitments | Other assets | 142,750 | 2,546 | ||||||
Forward commitments | Other liabilities | 59,276 | (266 | ) | |||||
Undesignated interest rate swaps | Other liabilities | 15,564 | (1,126 | ) |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Interest rate lock commitments (mortgage) | $ | 410 | $ | (1,195) | |||||||||||||||||||
Forward commitments | 272 | 1,036 | |||||||||||||||||||||
Undesignated interest rate swaps | 37 | (225) |
Income Statement Category | Gain (Loss) Recognized | ||||
Three Months Ended September 30, 2017 | |||||
Interest rate lock commitments (mortgage) | Net gains on sale of loans held for sale | $ | (1,245 | ) | |
Forward commitments | Net gains on sale of loans held for sale | 72 | |||
Undesignated interest rate swaps | Other noninterest income | 88 | |||
Nine Months Ended September 30, 2017 | |||||
Interest rate lock commitments (mortgage) | Net gains on sale of loans held for sale | $ | (587 | ) | |
Forward commitments | Net gains on sale of loans held for sale | (2,304 | ) | ||
Undesignated interest rate swaps | Other noninterest income | 203 | |||
Three Months Ended September 30, 2016 | |||||
Interest rate lock commitments (mortgage) | Net gains on sale of loans held for sale | $ | (1,344 | ) | |
Forward commitments | Net gains on sale of loans held for sale | 931 | |||
Undesignated interest rate swaps | Other noninterest income | 269 | |||
Nine Months Ended September 30, 2016 | |||||
Interest rate lock commitments (mortgage) | Net gains on sale of loans held for sale | $ | 4,464 | ||
Forward commitments | Net gains on sale of loans held for sale | (1,311 | ) | ||
Undesignated interest rate swaps | Other noninterest income | (101 | ) |
Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||
U.S. treasuries | $ | 31,932 | $ | 31,932 | $ | — | $ | — | |||||||||||||||
U.S. agencies | 43,584 | — | 43,584 | — | |||||||||||||||||||
Obligations of states and political subdivisions | 887,922 | — | 887,922 | — | |||||||||||||||||||
Mortgage-backed securities - agency | 1,757,469 | — | 1,757,469 | — | |||||||||||||||||||
Mortgage-backed securities - non-agency | 2,117,882 | — | 2,117,882 | — | |||||||||||||||||||
Commercial mortgage-backed securities - agency | 86,022 | — | 86,022 | — | |||||||||||||||||||
Commercial mortgage-backed securities - non-agency | 657,874 | — | 657,874 | — | |||||||||||||||||||
Asset-backed securities | 435,523 | — | 435,523 | — | |||||||||||||||||||
Corporate bonds | 57,845 | — | 57,845 | — | |||||||||||||||||||
Equity securities with a readily determinable fair value | 20,604 | — | 20,604 | — | |||||||||||||||||||
Derivative financial instruments(1) | 27,942 | — | 27,942 | — | |||||||||||||||||||
Interest rate lock commitments | 449 | — | — | 449 | |||||||||||||||||||
Forward commitments | 241 | — | 241 | — | |||||||||||||||||||
Total assets at fair value | $ | 6,125,289 | $ | 31,932 | $ | 6,092,908 | $ | 449 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Derivative financial instruments(2) | $ | 27,903 | $ | — | $ | 27,903 | $ | — | |||||||||||||||
Forward commitments | 21 | — | 21 | — | |||||||||||||||||||
Total liabilities at fair value | $ | 27,924 | $ | — | $ | 27,924 | $ | — | |||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||
U.S. treasuries | $ | 31,699 | $ | 31,699 | $ | — | $ | — | |||||||||||||||
U.S. agencies | 43,135 | — | 43,135 | — | |||||||||||||||||||
Obligations of states and political subdivisions | 879,437 | — | 879,437 | — | |||||||||||||||||||
Mortgage-backed securities - agency | 1,772,105 | — | 1,772,105 | — | |||||||||||||||||||
Mortgage-backed securities - non-agency | 2,181,876 | — | 2,181,876 | — | |||||||||||||||||||
Commercial mortgage-backed securities - agency | 85,123 | — | 85,123 | — | |||||||||||||||||||
Commercial mortgage-backed securities - non-agency | 659,459 | — | 659,459 | — | |||||||||||||||||||
Asset-backed securities | 416,054 | — | 416,054 | — | |||||||||||||||||||
Corporate bonds | 57,942 | — | 57,942 | — | |||||||||||||||||||
Equity securities with a readily determinable fair value | 20,314 | — | 20,314 | — | |||||||||||||||||||
Derivative financial instruments(2) | 46,293 | — | 46,293 | — | |||||||||||||||||||
Interest rate lock commitments | 174 | — | — | 174 | |||||||||||||||||||
Forward commitments | 47 | — | 47 | — | |||||||||||||||||||
Total assets at fair value | $ | 6,193,658 | $ | 31,699 | $ | 6,161,785 | $ | 174 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Derivative financial instruments(1) | $ | 46,226 | $ | — | $ | 46,226 | $ | — | |||||||||||||||
Forward commitments | 99 | — | 99 | — | |||||||||||||||||||
Total liabilities at fair value | $ | 46,325 | $ | — | $ | 46,325 | $ | — | |||||||||||||||
(1) Includes fair value hedges, embedded derivatives and back-to-back loan swaps. | |||||||||||||||||||||||
(2) Includes back-to-back loan swaps and free standing derivatives. |
Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||
September 30, 2017 | |||||||||||||||
Assets | |||||||||||||||
Securities available for sale | |||||||||||||||
U.S. government corporations and agencies | $ | 7,415 | $ | 3,505 | $ | 3,910 | $ | — | |||||||
Mortgage-backed securities | 1,565,400 | — | 1,565,400 | — | |||||||||||
Obligations of states and political subdivisions | 503,974 | — | 503,974 | — | |||||||||||
Corporate debt securities | — | — | — | — | |||||||||||
Equity securities | 16,596 | — | 16,596 | — | |||||||||||
Derivative financial instruments(1) | 3,386 | — | 3,386 | — | |||||||||||
Interest rate lock commitments | 2,463 | — | ��� | 2,463 | |||||||||||
Forward commitments | 237 | — | 237 | — | |||||||||||
Total assets at fair value | $ | 2,099,471 | $ | 3,505 | $ | 2,093,503 | $ | 2,463 | |||||||
Liabilities | |||||||||||||||
Derivative financial instruments(2) | $ | 6,309 | $ | — | $ | 6,309 | $ | — | |||||||
Forward commitments | 261 | — | 261 | — | |||||||||||
Total liabilities at fair value | $ | 6,570 | $ | — | $ | 6,570 | $ | — | |||||||
December 31, 2016 | |||||||||||||||
Assets | |||||||||||||||
Securities available for sale | |||||||||||||||
U.S. government corporations and agencies | $ | 4,700 | $ | 517 | $ | 4,183 | $ | — | |||||||
Mortgage-backed securities | 1,290,500 | — | 1,288,276 | 2,224 | |||||||||||
Obligations of states and political subdivisions | 536,144 | — | 536,144 | — | |||||||||||
Equity securities | 14,520 | — | 14,520 | — | |||||||||||
Derivative financial instruments(1) | 3,222 | — | 3,222 | — | |||||||||||
Interest rate lock commitments | 2,790 | — | — | 2,790 | |||||||||||
Forward commitments | 2,546 | — | 2,546 | — | |||||||||||
Total assets at fair value | $ | 1,854,422 | $ | 517 | $ | 1,848,891 | $ | 5,014 | |||||||
Liabilities | |||||||||||||||
Derivative financial instruments(2) | $ | 7,027 | $ | — | $ | 7,027 | $ | — | |||||||
Forward commitments | 266 | — | 266 | — | |||||||||||
Total liabilities at fair value | $ | 7,293 | $ | — | $ | 7,293 | $ | — | |||||||
(1) Includes cash flow hedges, embedded derivatives and back-to-back loan swaps | |||||||||||||||
(2) Includes cash flow hedges, fair value hedges, back-to-back loan swaps, embedded conversion options and free standing derivative instruments |
Fair Value Measurements at March 31, 2023 | |||||||||||||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Year-to- Date (Gains) Losses | |||||||||||||||||||||||||
Collateral dependent individually assessed loans: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 10,810 | $ | — | $ | — | $ | 10,810 | $ | — | |||||||||||||||||||
Owner occupied commercial real estate | 7,408 | — | — | 7,408 | — | ||||||||||||||||||||||||
Non-owner occupied commercial real estate | 10,983 | — | — | 10,983 | — | ||||||||||||||||||||||||
Real estate construction | 1,498 | — | — | 1,498 | — | ||||||||||||||||||||||||
Agricultural and agricultural real estate | 5,053 | — | — | 5,053 | — | ||||||||||||||||||||||||
Residential real estate | 788 | — | — | 788 | — | ||||||||||||||||||||||||
Total collateral dependent individually assessed loans | $ | 36,540 | $ | — | $ | — | $ | 36,540 | $ | — | |||||||||||||||||||
Loans held for sale | $ | 10,425 | $ | — | $ | 10,425 | $ | — | $ | (251) | |||||||||||||||||||
Other real estate owned | 7,438 | — | — | 7,438 | 36 | ||||||||||||||||||||||||
Premises, furniture and equipment held for sale | 4,399 | — | — | 4,399 | 759 | ||||||||||||||||||||||||
Fair Value Measurements at September 30, 2017 | |||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Year-to- Date (Gains) Losses | |||||||||||||||
Collateral dependent impaired loans: | |||||||||||||||||||
Commercial | $ | 3,556 | $ | — | $ | — | $ | 3,556 | $ | 1,119 | |||||||||
Commercial real estate | 8,718 | — | — | 8,718 | 2,043 | ||||||||||||||
Agricultural and agricultural real estate | 7,936 | — | — | 7,936 | — | ||||||||||||||
Residential real estate | 1,365 | — | — | 1,365 | — | ||||||||||||||
Consumer | 912 | — | — | 912 | — | ||||||||||||||
Total collateral dependent impaired loans | $ | 22,487 | $ | — | $ | — | $ | 22,487 | $ | 3,162 | |||||||||
Other real estate owned | $ | 13,226 | $ | — | $ | — | $ | 13,226 | $ | 594 | |||||||||
Premises, furniture and equipment held for sale | $ | 4,428 | $ | — | $ | — | $ | 4,428 | $ | 404 | |||||||||
Commercial servicing rights | $ | 313 | $ | — | $ | — | $ | 313 | $ | (29 | ) |
Fair Value Measurements at December 31, 2022 | |||||||||||||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Year-to- Date (Gains) Losses | |||||||||||||||||||||||||
Collateral dependent individually assessed loans: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 12,042 | $ | — | $ | — | $ | 12,042 | $ | 4,186 | |||||||||||||||||||
Owner occupied commercial real estate | 7,556 | — | — | 7,556 | — | ||||||||||||||||||||||||
Non-owner occupied commercial real estate | 11,371 | — | — | 11,371 | — | ||||||||||||||||||||||||
Real estate construction | 1,518 | — | — | 1,518 | — | ||||||||||||||||||||||||
Agricultural and agricultural real estate | 3,788 | — | — | 3,788 | — | ||||||||||||||||||||||||
Residential real estate | 1,607 | — | — | 1,607 | — | ||||||||||||||||||||||||
Total collateral dependent individually assessed loans | $ | 37,882 | $ | — | $ | — | $ | 37,882 | $ | 4,186 | |||||||||||||||||||
Loans held for sale | $ | 5,277 | $ | — | $ | 5,277 | $ | — | $ | (116) | |||||||||||||||||||
Other real estate owned | 8,401 | — | — | 8,401 | 180 | ||||||||||||||||||||||||
Premises, furniture and equipment held for sale | 6,851 | — | — | 6,851 | 1,562 | ||||||||||||||||||||||||
Servicing rights | 7,840 | — | — | 7,840 | 516 |
Fair Value Measurements at December 31, 2016 | ||||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Year-to- Date (Gains) Losses | ||||||||||||||||
Collateral dependent impaired loans: | ||||||||||||||||||||
Commercial | $ | 1,683 | $ | — | $ | — | $ | 1,683 | $ | 41 | ||||||||||
Commercial real estate | 3,026 | — | — | 3,026 | 527 | |||||||||||||||
Agricultural and agricultural real estate | 1,955 | — | — | 1,955 | — | |||||||||||||||
Residential real estate | 3,565 | — | — | 3,565 | 85 | |||||||||||||||
Consumer | 1,193 | — | — | 1,193 | — | |||||||||||||||
Total collateral dependent impaired loans | $ | 11,422 | $ | — | $ | — | — | $ | 11,422 | $ | 653 | |||||||||
Other real estate owned | $ | 9,744 | $ | — | $ | — | $ | 9,744 | $ | 1,341 | ||||||||||
Premises, furniture and equipment held for sale | $ | 414 | $ | — | $ | — | $ | 414 | $ | 35 | ||||||||||
Commercial servicing rights | $ | 326 | $ | — | $ | — | $ | 326 | $ | 33 |
Fair Value at 3/31/2023 | Valuation Technique | Unobservable Input | Range (Weighted Average) | ||||||||||||||||||||
Interest rate lock commitments | $ | 449 | Discounted cash flows | Closing ratio | 0-99% (88%)(1) | ||||||||||||||||||
Other real estate owned | 7,438 | Modified appraised value | Third party appraisal | (2) | |||||||||||||||||||
Appraisal discount | 0-10%(3) | ||||||||||||||||||||||
Premises, furniture and equipment held for sale | 4,399 | Modified appraised value | Third party appraisal | (2) | |||||||||||||||||||
Appraisal discount | 0-10%(3) | ||||||||||||||||||||||
Collateral dependent individually assessed loans: | |||||||||||||||||||||||
Commercial | 10,810 | Modified appraised value | Third party appraisal | (2) | |||||||||||||||||||
Appraisal discount | 0-15%(3) | ||||||||||||||||||||||
Owner occupied commercial real estate | 7,408 | Modified appraised value | Third party appraisal | (2) | |||||||||||||||||||
Appraisal discount | 0-13%(3) | ||||||||||||||||||||||
Non-owner occupied commercial real estate | 10,983 | Modified appraised value | Third party appraisal | (2) | |||||||||||||||||||
Appraisal discount | 0-10%(3) | ||||||||||||||||||||||
Real estate construction | 1,498 | Modified appraised value | Third party appraisal | (2) | |||||||||||||||||||
Appraisal discount | 0-10%(3) | ||||||||||||||||||||||
Agricultural and agricultural real estate | 5,053 | Modified appraised value | Third party appraisal | (2) | |||||||||||||||||||
Appraisal discount | 0-15%(3) | ||||||||||||||||||||||
Residential real estate | 788 | Modified appraised value | Third party appraisal | (2) | |||||||||||||||||||
Appraisal discount | 0-10%(3) | ||||||||||||||||||||||
(1) The significant unobservable input used in the fair value measurement is the closing ratio, which represents the percentage of loans currently in a lock position which management estimates will ultimately close. The closing ratio calculation takes into consideration historical data and loan-level data. | |||||||||||||||||||||||
(2) Third party appraisals are obtained and updated at least annually to establish the value of the underlying asset, but the disclosure of the unobservable inputs used by the appraisers would not be meaningful because the range will vary widely from appraisal to appraisal. | |||||||||||||||||||||||
(3) Discounts applied to the appraised values primarily include estimated sales costs, but also consider the age of the appraisal, changes in local market conditions and changes in the current condition of the collateral. | |||||||||||||||||||||||
Fair Value at 9/30/17 | Valuation Technique | Unobservable Input | Range (Weighted Average) | ||||||
Z-TRANCHE Securities | $ | — | Discounted cash flows | Pretax discount rate | — | ||||
Actual defaults | — | ||||||||
Actual deferrals | — | ||||||||
Interest rate lock commitments | 2,463 | Discounted cash flows | Closing ratio | 0-99% (89%)(1) | |||||
Premises, furniture and equipment held for sale | 4,428 | Modified appraised value | Third party appraisal | (2) | |||||
Appraisal discount | 0-10%(4) | ||||||||
Commercial servicing rights | 313 | Discounted cash flows | Third party valuation | (3) | |||||
Other real estate owned | 13,226 | Modified appraised value | Third party appraisal | (2) | |||||
Appraisal discount | 0-10% | ||||||||
Collateral dependent impaired loans: | |||||||||
Commercial | 3,556 | Modified appraised value | Third party appraisal | (2) | |||||
Appraisal discount | 0-15%(4) | ||||||||
Commercial real estate | 8,718 | Modified appraised value | Third party appraisal | (2) | |||||
Appraisal discount | 0-14%(4) | ||||||||
Agricultural and agricultural real estate | 7,936 | Modified appraised value | Third party appraisal | (2) | |||||
Appraisal discount | 0-6%(4) | ||||||||
Residential real estate | 1,365 | Modified appraised value | Third party appraisal | (2) | |||||
Appraisal discount | 0-13%(4) | ||||||||
Consumer | 912 | Modified appraised value | Third party valuation | (2) | |||||
Valuation discount | 0-11%(4) | ||||||||
(1) The significant unobservable input used in the fair value measurement is the closing ratio, which represents the percentage of loans currently in a lock position which management estimates will ultimately close. The closing ratio calculation takes into consideration historical data and loan-level data. | |||||||||
(2) Third party appraisals are obtained and updated at least annually to establish the value of the underlying asset, but the disclosure of the unobservable inputs used by the appraisers would not be meaningful because the range will vary widely from appraisal to appraisal. | |||||||||
(3) The significant unobservable input used in the fair value measurement are the value indices, which are weighted-average spreads to LIBOR based on maturity groups. | |||||||||
(4) Discounts applied to the appraised values primarily include estimated sales costs, but also consider the age of the appraisal, changes in local market conditions and changes in the current condition of the collateral. |
Fair Value at 12/31/2022 | Valuation Technique | Unobservable Input | Range (Weighted Average) | ||||||||||||||||||||
Interest rate lock commitments | $ | 174 | Discounted cash flows | Closing ratio | 0-99% (88%)(1) | ||||||||||||||||||
Other real estate owned | 8,401 | Modified appraised value | Third party appraisal | (2) | |||||||||||||||||||
Appraisal discount | 0-10%(3) | ||||||||||||||||||||||
Servicing rights | 7,840 | Discounted cash flows | Discount rate | 9.98 - 11.72% (10.02%)(4) | |||||||||||||||||||
Constant prepayment rate | 7.8 - 14.2% (7.9%)(4) | ||||||||||||||||||||||
Premises, furniture and equipment held for sale | 6,851 | Modified appraised value | Third party appraisal | (2) | |||||||||||||||||||
Appraisal discount | 0-10%(3) | ||||||||||||||||||||||
Collateral dependent individually assessed loans: | |||||||||||||||||||||||
Commercial and industrial | 12,042 | Modified appraised value | Third party appraisal | (2) | |||||||||||||||||||
Appraisal discount | 0-10%(3) | ||||||||||||||||||||||
Owner occupied commercial real estate | 7,556 | Modified appraised value | Third party appraisal | (2) | |||||||||||||||||||
Appraisal discount | 0-10%(3) | ||||||||||||||||||||||
Non-owner occupied commercial real estate | 11,371 | Modified appraised value | Third party appraisal | (2) | |||||||||||||||||||
Appraisal discount | 0-10%(3) | ||||||||||||||||||||||
Real estate construction | 1,518 | Modified appraised value | Third party appraisal | (2) | |||||||||||||||||||
Appraisal discount | 0-10%(3) | ||||||||||||||||||||||
Agricultural and agricultural real estate | 3,788 | Modified appraised value | Third party appraisal | (2) | |||||||||||||||||||
Appraisal discount | 0-15%(3) | ||||||||||||||||||||||
Residential real estate | 1,607 | Modified appraised value | Third party appraisal | (2) | |||||||||||||||||||
Appraisal discount | 0-10%(3) | ||||||||||||||||||||||
(1) The significant unobservable input used in the fair value measurement is the closing ratio, which represents the percentage of loans currently in a lock position which management estimates will ultimately close. The closing ratio calculation takes into consideration historical data and loan-level data. | |||||||||||||||||||||||
(2) Third party appraisals are obtained and updated at least annually to establish the value of the underlying asset, but the disclosure of the unobservable inputs used by the appraisers would not be meaningful because the range will vary widely from appraisal to appraisal. | |||||||||||||||||||||||
(3) Discounts applied to the appraised values primarily include estimated sales costs, but also consider the age of the appraisal, changes in local market conditions and changes in the current condition of the collateral. | |||||||||||||||||||||||
(4) The significant unobservable input used in the discounted cash flow analysis are the discount rate and constant prepayment rate. |
Fair Value at 12/31/16 | Valuation Technique | Unobservable Input | Range (Weighted Average) | ||||||
Z-TRANCHE Securities | $ | 2,224 | Discounted cash flows | Pretax discount rate | 7.50 - 9.50% | ||||
Actual defaults | 21.77 - 37.62% (33.11%) | ||||||||
Actual deferrals | 10.44 - 26.29% (14.81%) | ||||||||
Interest rate lock commitments | 2,790 | Discounted cash flows | Closing ratio | 0-99% (89%)(1) | |||||
Premises, furniture and equipment held for sale | 414 | Modified appraised value | Third party appraisal | (2) 0-8%(4) | |||||
Commercial servicing rights | 326 | Discounted cash flows | Third party valuation | (3) | |||||
Other real estate owned | 9,744 | Modified appraised value | Third party appraisal | (2) | |||||
Appraisal discount | 0-10% | ||||||||
Collateral dependent impaired loans: | |||||||||
Commercial | 1,683 | Modified appraised value | Third party appraisal | (2) | |||||
Appraisal discount | 0-8%(4) | ||||||||
Commercial real estate | 3,026 | Modified appraised value | Third party appraisal | (2) | |||||
Appraisal discount | 0-7%(4) | ||||||||
Agricultural and agricultural real estate | 1,955 | Modified appraised value | Third party appraisal | (2) | |||||
Appraisal discount | 0-10%(4) | ||||||||
Residential real estate | 3,565 | Modified appraised value | Third party appraisal | (2) | |||||
Appraisal discount | 0-8%(4) | ||||||||
Consumer | 1,193 | Modified appraised value | Third party valuation | (2) | |||||
Valuation discount | 0-11%(4) | ||||||||
(1) The significant unobservable input used in the fair value measurement is the closing ratio, which represents the percentage of loans currently in a lock position which management estimates will ultimately close. The closing ratio calculation takes into consideration historical data and loan-level data. | |||||||||
(2) Third party appraisals are obtained and updated at least annually to establish the value of the underlying asset, but the disclosure of the unobservable inputs used by the appraisers would not be meaningful because the range will vary widely from appraisal to appraisal. | |||||||||
(3) The significant unobservable input used in the fair value measurement are the value indices, which are weighted-average spreads to LIBOR based on maturity groups. | |||||||||
(4) Discounts applied to the appraised values primarily include estimated sales costs, but also consider the age of the appraisal, changes in local market conditions and changes in the current condition of the collateral. |
For the Nine Months Ended September 30, 2017 | For the Year Ended December 31, 2016 | ||||||
Balance at January 1, | $ | 2,224 | $ | 2,039 | |||
Total gains (losses): | |||||||
Included in earnings | 2,810 | — | |||||
Included in other comprehensive income | (2,166 | ) | 185 | ||||
Purchases, sales and settlements: | |||||||
Purchases | — | — | |||||
Sales | (2,868 | ) | — | ||||
Settlements | — | — | |||||
Balance at period end | $ | — | $ | 2,224 |
For the Three Months Ended March 31, 2023 | For the Year Ended December 31, 2022 | ||||||||||
Balance at January 1, | $ | 174 | $ | 1,306 | |||||||
Total net gains included in earnings | 410 | (1,828) | |||||||||
Issuances | 516 | 3,683 | |||||||||
Settlements | (651) | (2,987) | |||||||||
Balance at period end | $ | 449 | $ | 174 |
For the Nine Months Ended September 30, 2017 | For the Year Ended December 31, 2016 | ||||||
Balance at January 1, | $ | 2,790 | $ | 3,168 | |||
Total gains (losses) included in earnings | (587 | ) | (1,564 | ) | |||
Issuances | 1,580 | 5,373 | |||||
Settlements | (1,320 | ) | (4,187 | ) | |||
Balance at period end | $ | 2,463 | $ | 2,790 |
Fair Value Measurements at March 31, 2023 | |||||||||||||||||||||||||||||
Carrying Amount | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 362,111 | $ | 362,111 | $ | 362,111 | $ | — | $ | — | |||||||||||||||||||
Time deposits in other financial institutions | 1,740 | 1,740 | 1,740 | — | — | ||||||||||||||||||||||||
Securities: | |||||||||||||||||||||||||||||
Carried at fair value | 6,096,657 | 6,096,657 | 31,932 | 6,064,725 | — | ||||||||||||||||||||||||
Held to maturity | 832,098 | 815,672 | — | 815,672 | — | ||||||||||||||||||||||||
Other investments | 72,364 | 72,364 | — | 72,364 | — | ||||||||||||||||||||||||
Loans held for sale | 10,425 | 10,425 | — | 10,425 | — | ||||||||||||||||||||||||
Loans, net: | |||||||||||||||||||||||||||||
Commercial and industrial | 3,466,522 | 3,286,723 | — | 3,275,913 | 10,810 | ||||||||||||||||||||||||
PPP | 8,258 | 8,258 | — | 8,258 | — | ||||||||||||||||||||||||
Owner occupied commercial real estate | 2,298,387 | 2,112,314 | — | 2,104,906 | 7,408 | ||||||||||||||||||||||||
Non-owner occupied commercial real estate | 2,404,279 | 2,265,664 | — | 2,254,681 | 10,983 | ||||||||||||||||||||||||
Real estate construction | 1,072,048 | 1,065,497 | — | 1,063,999 | 1,498 | ||||||||||||||||||||||||
Agricultural and agricultural real estate | 807,637 | 735,491 | — | 730,438 | 5,053 | ||||||||||||||||||||||||
Residential real estate | 833,520 | 718,281 | — | 717,493 | 788 | ||||||||||||||||||||||||
Consumer | 491,995 | 474,398 | — | 474,398 | — | ||||||||||||||||||||||||
Total Loans, net | 11,382,646 | 10,666,626 | — | 10,630,086 | 36,540 | ||||||||||||||||||||||||
Cash surrender value on life insurance | 194,419 | 194,419 | — | 194,419 | — | ||||||||||||||||||||||||
Derivative financial instruments(1) | 27,942 | 27,942 | — | 27,942 | — | ||||||||||||||||||||||||
Interest rate lock commitments | 449 | 449 | — | — | 449 | ||||||||||||||||||||||||
Forward commitments | 241 | 241 | — | 241 | — | ||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Deposits | |||||||||||||||||||||||||||||
Demand deposits | 5,119,554 | 5,119,554 | — | 5,119,554 | — | ||||||||||||||||||||||||
Savings deposits | 9,256,609 | 9,256,609 | — | 9,256,609 | — | ||||||||||||||||||||||||
Time deposits | 3,305,183 | 3,305,183 | — | 3,305,183 | — | ||||||||||||||||||||||||
Short term borrowings | 92,337 | 92,337 | — | 92,337 | — | ||||||||||||||||||||||||
Other borrowings | 372,097 | 373,923 | — | 373,923 | — | ||||||||||||||||||||||||
Derivative financial instruments(2) | 27,903 | 27,903 | — | 27,903 | — | ||||||||||||||||||||||||
Forward commitments | 21 | 21 | — | 21 | — | ||||||||||||||||||||||||
(1) Includes fair value hedges, embedded derivatives and back-to-back loan swaps. | |||||||||||||||||||||||||||||
(2) Includes back-to-back loan swaps and free standing derivative instruments. |
Fair Value Measurements at September 30, 2017 | Fair Value Measurements at December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amount | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Carrying Amount | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||||||||
Financial assets: | Financial assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 251,736 | $ | 251,736 | $ | 251,736 | $ | — | $ | — | Cash and cash equivalents | $ | 363,087 | $ | 363,087 | $ | 363,087 | $ | — | $ | — | |||||||||||||||||||||||||||
Time deposits in other financial institutions | 19,793 | 19,793 | 19,793 | — | — | Time deposits in other financial institutions | 1,740 | 1,740 | 1,740 | — | — | |||||||||||||||||||||||||||||||||||||
Securities: | Securities: | |||||||||||||||||||||||||||||||||||||||||||||||
Available for sale | 2,093,385 | 2,093,385 | 3,505 | 2,089,880 | — | |||||||||||||||||||||||||||||||||||||||||||
Carried at fair value | Carried at fair value | 6,147,144 | 6,147,144 | 31,699 | 6,115,445 | — | ||||||||||||||||||||||||||||||||||||||||||
Held to maturity | 256,355 | 270,386 | — | 270,386 | — | Held to maturity | 829,403 | 776,557 | — | 776,557 | — | |||||||||||||||||||||||||||||||||||||
Other investments | 23,176 | 23,176 | — | 22,981 | 195 | Other investments | 74,567 | 74,567 | — | 74,567 | — | |||||||||||||||||||||||||||||||||||||
Loans held for sale | 35,795 | 35,795 | — | 35,795 | — | Loans held for sale | 5,277 | 5,277 | — | 5,277 | — | |||||||||||||||||||||||||||||||||||||
Loans, net: | Loans, net: | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial | 1,596,934 | 1,601,351 | — | 1,597,795 | 3,556 | |||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 3,143,414 | 3,117,829 | — | 3,109,111 | 8,718 | |||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | Commercial and industrial | 3,435,343 | 3,270,127 | — | 3,258,085 | 12,042 | ||||||||||||||||||||||||||||||||||||||||||
PPP | PPP | 11,025 | 11,025 | — | 11,025 | — | ||||||||||||||||||||||||||||||||||||||||||
Owner occupied commercial real estate | Owner occupied commercial real estate | 2,251,359 | 2,084,665 | — | 2,077,109 | 7,556 | ||||||||||||||||||||||||||||||||||||||||||
Non-owner occupied commercial real estate | Non-owner occupied commercial real estate | 2,314,401 | 2,184,796 | — | 2,173,425 | 11,371 | ||||||||||||||||||||||||||||||||||||||||||
Real estate construction | Real estate construction | 1,046,084 | 1,039,244 | — | 1,037,726 | 1,518 | ||||||||||||||||||||||||||||||||||||||||||
Agricultural and agricultural real estate | 506,388 | 507,974 | — | 500,038 | 7,936 | Agricultural and agricultural real estate | 917,876 | 842,637 | — | 838,849 | 3,788 | |||||||||||||||||||||||||||||||||||||
Residential real estate | 632,306 | 622,698 | — | 621,333 | 1,365 | Residential real estate | 845,650 | 741,325 | — | 739,718 | 1,607 | |||||||||||||||||||||||||||||||||||||
Consumer | 441,079 | 444,384 | — | 443,472 | 912 | Consumer | 497,131 | 480,018 | — | 480,018 | — | |||||||||||||||||||||||||||||||||||||
Total Loans, net | 6,320,121 | 6,294,236 | — | 6,271,749 | 22,487 | Total Loans, net | 11,318,869 | 10,653,837 | — | 10,615,955 | 37,882 | |||||||||||||||||||||||||||||||||||||
Cash surrender value on life insurance | Cash surrender value on life insurance | 193,403 | 193,403 | — | 193,403 | — | ||||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments(1) | 3,386 | 3,386 | — | 3,386 | — | Derivative financial instruments(1) | 46,293 | 46,293 | — | 46,293 | — | |||||||||||||||||||||||||||||||||||||
Interest rate lock commitments | 2,463 | 2,463 | — | — | 2,463 | Interest rate lock commitments | 174 | 174 | — | — | 174 | |||||||||||||||||||||||||||||||||||||
Forward commitments | 237 | 237 | — | 237 | — | Forward commitments | 47 | 47 | — | 47 | — | |||||||||||||||||||||||||||||||||||||
Financial liabilities: | Financial liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||
Deposits | Deposits | |||||||||||||||||||||||||||||||||||||||||||||||
Demand deposits | 3,009,940 | 3,009,940 | — | 3,009,940 | — | Demand deposits | 5,701,340 | 5,701,340 | — | 5,701,340 | — | |||||||||||||||||||||||||||||||||||||
Savings deposits | 4,227,340 | 4,227,340 | — | 4,227,340 | — | Savings deposits | 9,994,391 | 9,994,391 | — | 9,994,391 | — | |||||||||||||||||||||||||||||||||||||
Time deposits | 994,604 | 994,604 | — | 994,604 | — | Time deposits | 1,817,278 | 1,817,278 | — | 1,817,278 | — | |||||||||||||||||||||||||||||||||||||
Short term borrowings | 171,871 | 171,871 | — | 171,871 | — | Short term borrowings | 376,117 | 376,117 | — | 376,117 | — | |||||||||||||||||||||||||||||||||||||
Other borrowings | 301,473 | 305,741 | — | 305,741 | — | Other borrowings | 371,753 | 372,473 | — | 372,473 | — | |||||||||||||||||||||||||||||||||||||
Derivative financial instruments(2) | 6,309 | 6,309 | — | 6,309 | — | |||||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments(1) | Derivative financial instruments(1) | 46,226 | 46,226 | — | 46,226 | — | ||||||||||||||||||||||||||||||||||||||||||
Forward commitments | 261 | 261 | — | 261 | — | Forward commitments | 99 | 99 | — | 99 | — | |||||||||||||||||||||||||||||||||||||
(1) Includes cash flow hedges, embedded derivatives and back-to-back loan swaps | ||||||||||||||||||||||||||||||||||||||||||||||||
(2) Includes cash flow hedges, fair value hedges, back-to-back loan swaps, embedded conversion options and free standing derivative instruments | ||||||||||||||||||||||||||||||||||||||||||||||||
(1) Includes interest rate swaps, fair value hedges, embedded derivatives and back-to-back loan swaps. | (1) Includes interest rate swaps, fair value hedges, embedded derivatives and back-to-back loan swaps. | |||||||||||||||||||||||||||||||||||||||||||||||
(2) Includes back-to-back loan swaps and undesignated interest rate swaps. | (2) Includes back-to-back loan swaps and undesignated interest rate swaps. |
Fair Value Measurements at December 31, 2016 | |||||||||||||||||||
Carrying Amount | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
Financial assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 158,724 | $ | 158,724 | $ | 158,724 | $ | — | $ | — | |||||||||
Time deposits in other financial institutions | 2,105 | 2,105 | 2,105 | — | — | ||||||||||||||
Securities: | |||||||||||||||||||
Available for sale | 1,845,864 | 1,845,864 | 517 | 1,843,123 | 2,224 | ||||||||||||||
Held to maturity | 263,662 | 274,799 | — | 274,799 | — | ||||||||||||||
Other investments | 21,560 | 21,560 | — | 21,365 | 195 | ||||||||||||||
Loans held for sale | 61,261 | 61,261 | — | 61,261 | — | ||||||||||||||
Loans, net: | |||||||||||||||||||
Commercial | 1,272,089 | 1,258,754 | — | 1,257,071 | 1,683 | ||||||||||||||
Commercial real estate | 2,513,446 | 2,506,858 | — | 2,503,832 | 3,026 | ||||||||||||||
Agricultural and agricultural real estate | 485,820 | 487,001 | — | 485,046 | 1,955 | ||||||||||||||
Residential real estate | 614,207 | 604,233 | — | 600,668 | 3,565 | ||||||||||||||
Consumer | 411,833 | 414,266 | — | 413,073 | 1,193 | ||||||||||||||
Total Loans, net | 5,297,395 | 5,271,112 | — | 5,259,690 | 11,422 | ||||||||||||||
Derivative financial instruments(1) | 3,222 | 3,222 | — | 3,222 | — | ||||||||||||||
Interest rate lock commitments | 2,790 | 2,790 | — | — | 2,790 | ||||||||||||||
Forward commitments | 2,546 | 2,546 | — | 2,546 | — | ||||||||||||||
Financial liabilities: | |||||||||||||||||||
Deposits | |||||||||||||||||||
Demand deposits | 2,202,036 | 2,202,036 | — | 2,202,036 | — | ||||||||||||||
Savings deposits | 3,788,089 | 3,788,089 | — | 3,788,089 | — | ||||||||||||||
Time deposits | 857,286 | 857,286 | — | 857,286 | — | ||||||||||||||
Short term borrowings | 306,459 | 306,459 | — | 306,459 | — | ||||||||||||||
Other borrowings | 288,534 | 288,534 | — | 288,534 | — | ||||||||||||||
Derivative financial instruments(2) | 7,027 | 7,027 | — | 7,027 | — | ||||||||||||||
Forward commitments | 266 | 266 | — | 266 | — | ||||||||||||||
(1) Includes cash flow hedges, embedded derivatives and back-to-back loan swaps | |||||||||||||||||||
(2) Includes cash flow hedges, fair value hedges, back-to-back loan swaps, embedded conversion options and free standing derivative instruments |
2023 | 2022 | ||||||||||||||||||||||
Shares | Weighted-Average Grant Date Fair Value | Shares | Weighted-Average Grant Date Fair Value | ||||||||||||||||||||
Outstanding at January 1, | 424,086 | $ | 46.15 | 389,885 | $ | 44.19 | |||||||||||||||||
Granted | 198,562 | 50.75 | 178,611 | 50.20 | |||||||||||||||||||
Vested | (125,870) | 42.15 | (125,343) | 43.85 | |||||||||||||||||||
Forfeited | (21,338) | 42.40 | (12,656) | 45.70 | |||||||||||||||||||
Outstanding at March 31, | 475,440 | $ | 49.30 | 430,497 | $ | 46.74 |
2023 | |||||||||||
Shares | Weighted Average Exercise Price | ||||||||||
Outstanding January 1, | 64,518 | $ | 48.79 | ||||||||
Granted | — | — | |||||||||
Exercised | — | — | |||||||||
Forfeited | (3,226) | 48.79 | |||||||||
Outstanding at March 31, | 61,292 | 48.79 | |||||||||
Options exercisable at March 31, | — | $ | — |
Three Months Ended September 30, | |||||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||||
Community and Other Banking | Retail Mortgage Banking | Total | Community and Other Banking | Retail Mortgage Banking | Total | ||||||||||||||||||
Net interest income | $ | 88,778 | $ | 1,066 | $ | 89,844 | $ | 72,694 | $ | 987 | $ | 73,681 | |||||||||||
Provision for loan losses | 5,705 | — | 5,705 | 5,328 | — | 5,328 | |||||||||||||||||
Total noninterest income | 19,680 | 5,297 | 24,977 | 17,337 | 11,205 | 28,542 | |||||||||||||||||
Total noninterest expense | 69,977 | 8,782 | 78,759 | 57,988 | 10,439 | 68,427 | |||||||||||||||||
Income (loss) before taxes | $ | 32,776 | $ | (2,419 | ) | $ | 30,357 | $ | 26,715 | $ | 1,753 | $ | 28,468 | ||||||||||
Average Loans, for the period | $ | 6,245,445 | $ | 40,839 | $ | 6,286,284 | $ | 5,464,304 | $ | 73,784 | $ | 5,538,088 | |||||||||||
Segment Assets, at period end | $ | 9,693,172 | $ | 62,455 | $ | 9,755,627 | $ | 8,084,810 | $ | 117,405 | $ | 8,202,215 |
Nine Months Ended September 30, | |||||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||||
Community and Other Banking | Retail Mortgage Banking | Total | Community and Other Banking | Retail Mortgage Banking | Total | ||||||||||||||||||
Net interest income | $ | 234,406 | $ | 3,046 | $ | 237,452 | $ | 216,172 | $ | 3,334 | $ | 219,506 | |||||||||||
Provision for loan losses | 10,235 | — | 10,235 | 9,513 | — | 9,513 | |||||||||||||||||
Total noninterest income | 56,964 | 19,530 | 76,494 | 55,773 | 33,373 | 89,146 | |||||||||||||||||
Total noninterest expense | 193,753 | 26,044 | 219,797 | 177,421 | 32,335 | 209,756 | |||||||||||||||||
Income (loss) before taxes | $ | 87,382 | $ | (3,468 | ) | $ | 83,914 | $ | 85,011 | $ | 4,372 | $ | 89,383 | ||||||||||
Average Loans, for the period | $ | 5,641,641 | $ | 37,979 | $ | 5,679,620 | $ | 5,422,843 | $ | 70,344 | $ | 5,493,187 | |||||||||||
Segment Assets, at period end | $ | 9,693,172 | $ | 62,455 | $ | 9,755,627 | $ | 8,084,810 | $ | 117,405 | $ | 8,202,215 |
(Dollars in thousands, except per share data) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
STATEMENT OF INCOME DATA | |||||||||||||||
Interest income | $ | 98,978 | $ | 81,687 | $ | 261,590 | $ | 243,702 | |||||||
Interest expense | 9,134 | 8,006 | 24,138 | 24,196 | |||||||||||
Net interest income | 89,844 | 73,681 | 237,452 | 219,506 | |||||||||||
Provision for loan losses | 5,705 | 5,328 | 10,235 | 9,513 | |||||||||||
Net interest income after provision for loan losses | 84,139 | 68,353 | 227,217 | 209,993 | |||||||||||
Noninterest income | 24,977 | 28,542 | 76,494 | 89,146 | |||||||||||
Noninterest expenses | 78,759 | 68,427 | 219,797 | 209,756 | |||||||||||
Income taxes | 8,725 | 8,260 | 22,314 | 28,196 | |||||||||||
Net income | 21,632 | 20,208 | 61,600 | 61,187 | |||||||||||
Preferred dividends | (13 | ) | (53 | ) | (45 | ) | (273 | ) | |||||||
Interest expense on convertible preferred debt | 3 | 17 | 12 | 48 | |||||||||||
Net income available to common stockholders | $ | 21,622 | $ | 20,172 | $ | 61,567 | $ | 60,962 | |||||||
Key Performance Ratios | |||||||||||||||
Annualized return on average assets | 0.89 | % | 0.98 | % | 0.94 | % | 1.00 | % | |||||||
Annualized return on average common equity (GAAP) | 8.99 | % | 11.64 | % | 9.88 | % | 12.28 | % | |||||||
Annualized return on average tangible common equity (non-GAAP)(1) | 12.41 | % | 14.93 | % | 12.90 | % | 15.87 | % | |||||||
Annualized ratio of net charge-offs to average loans | 0.31 | % | 0.17 | % | 0.23 | % | 0.09 | % |
FINANCIAL HIGHLIGHTS | |||||||||||||||||||||||
(Dollars in thousands, except per share data) | Three Months Ended March 31, | ||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
STATEMENT OF INCOME DATA | |||||||||||||||||||||||
Interest income | $ | 216,978 | $ | 141,262 | |||||||||||||||||||
Interest expense | 64,766 | 6,583 | |||||||||||||||||||||
Net interest income | 152,212 | 134,679 | |||||||||||||||||||||
Provision for credit losses | 3,074 | 3,245 | |||||||||||||||||||||
Net interest income after provision for credit losses | 149,138 | 131,434 | |||||||||||||||||||||
Noninterest income | 29,999 | 34,569 | |||||||||||||||||||||
Noninterest expenses | 111,043 | 110,797 | |||||||||||||||||||||
Income taxes | 15,318 | 12,117 | |||||||||||||||||||||
Net income | 52,776 | 43,089 | |||||||||||||||||||||
Preferred dividends | (2,013) | (2,013) | |||||||||||||||||||||
Net income available to common stockholders | $ | 50,763 | $ | 41,076 | |||||||||||||||||||
KEY PERFORMANCE RATIOS | |||||||||||||||||||||||
Annualized return on average assets | 1.06 | % | 0.91 | % | |||||||||||||||||||
Annualized return on average common equity (GAAP) | 12.43 | 8.32 | |||||||||||||||||||||
Annualized return on average tangible common equity (non-GAAP)(1) | 20.05 | 12.41 | |||||||||||||||||||||
Annualized ratio of net charge-offs/(recoveries) to average loans | (0.04) | 0.49 | |||||||||||||||||||||
Annualized net interest margin (GAAP) | 3.36 | 3.08 | |||||||||||||||||||||
Annualized net interest margin, fully tax-equivalent (non-GAAP)(1) | 3.40 | 3.12 | |||||||||||||||||||||
Efficiency ratio (GAAP) | 60.94 | 65.46 | |||||||||||||||||||||
Adjusted efficiency ratio, fully tax-equivalent (non-GAAP)(1) | 57.16 | 64.65 | |||||||||||||||||||||
Total noninterest expenses to average assets | 2.24 | 2.34 | |||||||||||||||||||||
Core noninterest expenses to average assets (non-GAAP)(1) | 2.14 | 2.28 | |||||||||||||||||||||
(1) Refer to "Non-GAAP Financial Measures" for additional information on the usage and presentation of these non-GAAP measures, and refer to these financial tables for the reconciliations to the most directly comparable GAAP measures. |
Dollars in thousands, expect per share data | As Of and For the Quarter Ended | ||||||||||||||||||||||||||||
3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | |||||||||||||||||||||||||
BALANCE SHEET DATA | |||||||||||||||||||||||||||||
Investments | $ | 7,001,119 | $ | 7,051,114 | $ | 6,970,864 | $ | 7,274,056 | $ | 7,189,779 | |||||||||||||||||||
Loans held for sale | 10,425 | 5,277 | 9,570 | 18,803 | 22,685 | ||||||||||||||||||||||||
Loans receivable held to maturity | 11,495,353 | 11,428,352 | 10,923,532 | 10,678,218 | 10,177,385 | ||||||||||||||||||||||||
Allowance for credit losses | 112,707 | 109,483 | 105,715 | 101,353 | 100,522 | ||||||||||||||||||||||||
Total assets | 20,182,544 | 20,244,228 | 19,682,950 | 19,658,399 | 19,230,879 | ||||||||||||||||||||||||
Total deposits | 17,681,346 | 17,513,009 | 17,267,121 | 17,225,550 | 16,666,684 | ||||||||||||||||||||||||
Long-term obligations | 372,097 | 371,753 | 371,446 | 372,538 | 372,290 | ||||||||||||||||||||||||
Common equity | 1,718,700 | 1,624,350 | 1,545,253 | 1,663,363 | 1,821,152 | ||||||||||||||||||||||||
(Dollars in thousands, except per share data) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Annualized net interest margin (GAAP) | 4.08 | % | 3.97 | % | 4.00 | % | 3.98 | % | |||||||
Annualized net interest margin, fully tax-equivalent (non-GAAP)(2) | 4.26 | % | 4.14 | % | 4.19 | % | 4.15 | % | |||||||
Efficiency ratio, fully tax-equivalent(3) | 64.54 | % | 63.88 | % | 66.58 | % | 66.23 | % | |||||||
Reconciliation of Return on Average Tangible Common Equity (non-GAAP)(4) | |||||||||||||||
Net income available to common shareholders (GAAP) | $ | 21,622 | $ | 20,172 | $ | 61,567 | $ | 60,962 | |||||||
Average common stockholders' equity (GAAP) | $ | 954,511 | $ | 689,637 | $ | 833,150 | $ | 663,050 | |||||||
Less average goodwill | 226,097 | 127,699 | 167,009 | 125,061 | |||||||||||
Less average other intangibles, net | 36,950 | 24,563 | 27,992 | 24,958 | |||||||||||
Average tangible common equity (non-GAAP) | $ | 691,464 | $ | 537,375 | $ | 638,149 | $ | 513,031 | |||||||
Annualized return on average common equity (GAAP) | 8.99 | % | 11.64 | % | 9.88 | % | 12.28 | % | |||||||
Annualized return on average tangible common equity (non-GAAP) | 12.41 | % | 14.93 | % | 12.90 | % | 15.87 | % | |||||||
Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)(5) | |||||||||||||||
Net Interest Income (GAAP) | $ | 89,844 | $ | 73,681 | $ | 237,452 | $ | 219,506 | |||||||
Plus tax-equivalent adjustment(7) | 3,925 | 3,221 | 11,581 | 9,408 | |||||||||||
Net interest income - tax-equivalent (non-GAAP) | $ | 93,769 | $ | 76,902 | $ | 249,033 | $ | 228,914 | |||||||
Average earning assets | $ | 8,726,228 | $ | 7,382,860 | $ | 7,942,810 | $ | 7,368,856 | |||||||
Net interest margin (GAAP) | 4.08 | % | 3.97 | % | 4.00 | % | 3.98 | % | |||||||
Net interest margin, fully tax-equivalent (non-GAAP) | 4.26 | % | 4.14 | % | 4.19 | % | 4.15 | % | |||||||
Reconciliation of Non-GAAP Measure-Efficiency Ratio(6) | |||||||||||||||
Net Interest Income (GAAP) | $ | 89,844 | $ | 73,681 | $ | 237,452 | $ | 219,506 | |||||||
Plus tax-equivalent adjustment(7) | 3,925 | 3,221 | 11,581 | 9,408 | |||||||||||
Net interest income - tax-equivalent (non-GAAP) | 93,769 | 76,902 | 249,033 | 228,914 | |||||||||||
Noninterest income | 24,977 | 28,542 | 76,494 | 89,146 | |||||||||||
Securities gains, net | (1,679 | ) | (1,584 | ) | (5,553 | ) | (9,732 | ) | |||||||
Adjusted income | $ | 117,067 | $ | 103,860 | $ | 319,974 | $ | 308,328 | |||||||
Total noninterest expenses | $ | 78,759 | $ | 68,427 | $ | 219,797 | $ | 209,756 | |||||||
Less: | |||||||||||||||
Core deposit intangibles and customer relationship intangibles amortization | 1,863 | 1,291 | 4,252 | 4,483 | |||||||||||
Partnership investment in tax credit projects | — | — | 876 | — | |||||||||||
Loss on sales/valuations of assets, net | 1,342 | 794 | 1,642 | 1,064 | |||||||||||
Adjusted noninterest expenses | $ | 75,554 | $ | 66,342 | $ | 213,027 | $ | 204,209 | |||||||
Efficiency ratio, fully tax-equivalent (non-GAAP) | 64.54 | % | 63.88 | % | 66.58 | % | 66.23 | % | |||||||
(1) Refer to the "Reconciliation of Return on Average Tangible Common Equity (non-GAAP)" table. | |||||||||||||||
(2) Refer to the "Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)" table. | |||||||||||||||
(3) Refer to the "Reconciliation of Non-GAAP Measure-Efficiency Ratio" (non-GAAP)" table. | |||||||||||||||
(4) Return on average tangible common equity is net income available to common stockholders divided by average common stockholders' equity less goodwill and core deposit intangibles and customer relationship intangibles, net. This financial measure is included as it is considered to be a critical metric to analyze and evaluate the financial condition and capital strength of Heartland. This measure should not be considered a substitute for operating results determined in accordance with GAAP. | |||||||||||||||
(5) Annualized net interest margin, fully tax-equivalent is a non-GAAP measure, which adjusts net interest income for the tax-favored status of certain loans and securities. Management believes this measure enhances the comparability of net interest income arising from taxable and tax-exempt sources. This measure should not be considered a substitute for operating results determined in accordance with GAAP. | |||||||||||||||
(6) Efficiency ratio, fully tax-equivalent, expresses noninterest expenses as a percentage of fully tax-equivalent net interest income and noninterest income. This efficiency ratio is presented on a tax-equivalent basis, which adjusts net interest income and noninterest expenses for the tax favored status of certain loans, securities and tax credit projects. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the financial results of Heartland as it enhances the comparability of income and expenses arising from taxable and nontaxable sources and excludes specific items, as noted in the table. This measure should not be considered a substitute for operating results determined in accordance with GAAP. | |||||||||||||||
(7) Computed on a tax-equivalent basis using an effective tax rate of 35%. |
Dollars in thousands, expect per share data | As Of and For the Quarter Ended | ||||||||||||||||||||||||||||
3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | |||||||||||||||||||||||||
COMMON SHARE DATA | |||||||||||||||||||||||||||||
Book value per common share (GAAP) | $ | 40.38 | $ | 38.25 | $ | 36.41 | $ | 39.19 | $ | 42.98 | |||||||||||||||||||
Tangible book value per common share (non-GAAP)(1) | $ | 26.30 | $ | 24.09 | $ | 22.20 | $ | 24.94 | $ | 28.66 | |||||||||||||||||||
ASC 320 effect on book value per common share | $ | (13.35) | $ | (14.58) | $ | (15.31) | $ | (11.43) | $ | (6.74) | |||||||||||||||||||
Common shares outstanding, net of treasury stock | 42,558,726 | 42,467,394 | 42,444,106 | 42,439,439 | 42,369,908 | ||||||||||||||||||||||||
Tangible common equity ratio (non-GAAP)(1) | 5.72 | % | 5.21 | % | 4.94 | % | 5.56 | % | 6.52 | % | |||||||||||||||||||
Adjusted tangible common equity ratio (non-GAAP)(1) | 8.61 | % | 8.37 | % | 8.35 | % | 8.11 | % | 8.06 | % | |||||||||||||||||||
(1) Refer to "Non-GAAP Financial Measures" for additional information on the usage and presentation of these non-GAAP measures, and refer to these financial tables for the reconciliations to the most directly comparable GAAP measures. |
Non-GAAP Reconciliations (Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||
As Of and For the Quarter Ended | |||||||||||||||||||||||||||||
3/31/2023 | 12/31/2022 | 9/30/2022 | 6/30/2022 | 3/31/2022 | |||||||||||||||||||||||||
Reconciliation of Tangible Book Value Per Common Share (non-GAAP) | |||||||||||||||||||||||||||||
Common equity (GAAP) | $ | 1,718,700 | $ | 1,624,350 | $ | 1,545,253 | $ | 1,663,363 | $ | 1,821,152 | |||||||||||||||||||
Less goodwill | 576,005 | 576,005 | 576,005 | 576,005 | 576,005 | ||||||||||||||||||||||||
Less core deposit and customer relationship intangibles, net | 23,366 | 25,154 | 26,995 | 28,851 | 30,934 | ||||||||||||||||||||||||
Tangible common equity (non-GAAP) | $ | 1,119,329 | $ | 1,023,191 | $ | 942,253 | $ | 1,058,507 | $ | 1,214,213 | |||||||||||||||||||
Common shares outstanding, net of treasury stock | 42,558,726 | 42,467,394 | 42,444,106 | 42,439,439 | 42,369,908 | ||||||||||||||||||||||||
Common equity (book value) per share (GAAP) | $ | 40.38 | $ | 38.25 | $ | 36.41 | $ | 39.19 | $ | 42.98 | |||||||||||||||||||
Tangible book value per common share (non-GAAP) | $ | 26.30 | $ | 24.09 | $ | 22.20 | $ | 24.94 | $ | 28.66 | |||||||||||||||||||
Reconciliation of Tangible Common Equity Ratio (non-GAAP) | |||||||||||||||||||||||||||||
Tangible common equity (non-GAAP) | $ | 1,119,329 | $ | 1,023,191 | $ | 942,253 | $ | 1,058,507 | $ | 1,214,213 | |||||||||||||||||||
Total assets (GAAP) | $ | 20,182,544 | $ | 20,244,228 | $ | 19,682,950 | $ | 19,658,399 | $ | 19,230,879 | |||||||||||||||||||
Less goodwill | 576,005 | 576,005 | 576,005 | 576,005 | 576,005 | ||||||||||||||||||||||||
Less core deposit and customer relationship intangibles, net | 23,366 | 25,154 | 26,995 | 28,851 | 30,934 | ||||||||||||||||||||||||
Total tangible assets (non-GAAP) | $ | 19,583,173 | $ | 19,643,069 | $ | 19,079,950 | $ | 19,053,543 | $ | 18,623,940 | |||||||||||||||||||
Tangible common equity ratio (non-GAAP) | 5.72 | % | 5.21 | % | 4.94 | % | 5.56 | % | 6.52 | % | |||||||||||||||||||
Reconciliation of Adjusted Tangible Common Equity Ratio (non-GAAP) | |||||||||||||||||||||||||||||
Tangible common equity (non-GAAP) | $ | 1,119,329 | $ | 1,023,191 | $ | 942,253 | $ | 1,058,507 | $ | 1,214,213 | |||||||||||||||||||
Accumulated other comprehensive loss | 566,919 | 620,006 | 650,636 | 486,918 | 286,921 | ||||||||||||||||||||||||
Adjusted tangible common equity (non-GAAP) | $ | 1,686,248 | $ | 1,643,197 | $ | — | $ | 1,592,889 | $ | — | $ | 1,545,425 | $ | — | $ | 1,501,134 | |||||||||||||
Total tangible assets (non-GAAP) | $ | 19,583,173 | $ | 19,643,069 | $ | 19,079,950 | $ | 19,053,543 | $ | 18,623,940 | |||||||||||||||||||
Adjusted tangible common equity ratio (non-GAAP) | 8.61 | % | 8.37 | % | 8.35 | % | 8.11 | % | 8.06 | % | |||||||||||||||||||
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%. |
(Dollars in thousands, except per share data) | As Of and For the Quarter Ended | ||||||||||||||||||
9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 9/30/2016 | |||||||||||||||
BALANCE SHEET DATA | |||||||||||||||||||
Investments | $ | 2,372,916 | $ | 2,070,121 | $ | 2,175,701 | $ | 2,131,086 | $ | 1,943,080 | |||||||||
Loans held for sale | 35,795 | 48,848 | 49,009 | 61,261 | 78,317 | ||||||||||||||
Total loans receivable(1) | 6,373,415 | 5,325,082 | 5,361,604 | 5,351,719 | 5,438,715 | ||||||||||||||
Allowance for loan losses | 54,885 | 54,051 | 54,999 | 54,324 | 54,653 | ||||||||||||||
Total assets | 9,755,627 | 8,204,721 | 8,361,845 | 8,247,079 | 8,202,215 | ||||||||||||||
Total deposits | 8,231,884 | 6,930,169 | 7,089,861 | 6,847,411 | 6,912,693 | ||||||||||||||
Long-term obligations | 301,473 | 281,096 | 282,051 | 288,534 | 294,493 | ||||||||||||||
Preferred equity | 938 | 938 | 938 | 1,357 | 1,357 | ||||||||||||||
Common stockholders’ equity | 980,746 | 805,032 | 780,374 | 739,559 | 703,031 | ||||||||||||||
Common Share Data | |||||||||||||||||||
Book value per common share (GAAP) | $ | 32.75 | $ | 30.15 | $ | 29.26 | $ | 28.31 | $ | 28.48 | |||||||||
Tangible book value per common share (non-GAAP)(2) | $ | 23.61 | $ | 24.00 | $ | 23.05 | $ | 22.55 | $ | 22.34 | |||||||||
ASC 320 effect on book value per common share | $ | (0.67 | ) | $ | (0.87 | ) | $ | (1.06 | ) | $ | (1.15 | ) | $ | 0.03 | |||||
Common shares outstanding, net of treasury stock | 29,946,069 | 26,701,226 | 26,674,121 | 26,119,929 | 24,681,380 | ||||||||||||||
Tangible common equity ratio (non-GAAP)(3) | 7.46 | % | 7.97 | % | 7.50 | % | 7.28 | % | 6.85 | % | |||||||||
Reconciliation of Tangible Book Value Per Common Share (non-GAAP)(4) | |||||||||||||||||||
Common stockholders' equity (GAAP) | $ | 980,746 | $ | 805,032 | $ | 780,374 | $ | 739,559 | $ | 703,031 | |||||||||
Less goodwill | 236,615 | 141,461 | 141,461 | 127,699 | 127,699 | ||||||||||||||
Less core deposit intangibles and customer relationship intangibles, net | 37,028 | 22,850 | 24,068 | 22,775 | 23,922 | ||||||||||||||
Tangible common stockholders' equity (non-GAAP) | $ | 707,103 | $ | 640,721 | $ | 614,845 | $ | 589,085 | $ | 551,410 | |||||||||
Common shares outstanding, net of treasury stock | 29,946,069 | 26,701,226 | 26,674,121 | 26,119,929 | 24,681,380 | ||||||||||||||
Common stockholders' equity (book value) per share (GAAP) | $ | 32.75 | $ | 30.15 | $ | 29.26 | $ | 28.31 | $ | 28.48 | |||||||||
Tangible book value per common share (non-GAAP) | $ | 23.61 | $ | 24.00 | $ | 23.05 | $ | 22.55 | $ | 22.34 | |||||||||
Reconciliation of Tangible Common Equity Ratio (non-GAAP)(5) | |||||||||||||||||||
Total assets (GAAP) | $ | 9,755,627 | $ | 8,204,721 | $ | 8,361,845 | $ | 8,247,079 | $ | 8,202,215 | |||||||||
Less goodwill | 236,615 | 141,461 | 141,461 | 127,699 | 127,699 | ||||||||||||||
Less core deposit intangibles and customer relationship intangibles, net | 37,028 | 22,850 | 24,068 | 22,775 | 23,922 | ||||||||||||||
Total tangible assets (non-GAAP) | $ | 9,481,984 | $ | 8,040,410 | $ | 8,196,316 | $ | 8,096,605 | $ | 8,050,594 | |||||||||
Tangible common equity ratio (non-GAAP) | 7.46 | % | 7.97 | % | 7.50 | % | 7.28 | % | 6.85 | % | |||||||||
(1) Excludes loans held for sale. | |||||||||||||||||||
(2) Refer to the "Reconciliation of Tangible Book Value Per Common Share (non-GAAP)" table. | |||||||||||||||||||
(3) Refer to the "Reconciliation of Tangible Common Equity Ratio (non-GAAP)" table. | |||||||||||||||||||
(4) Tangible book value per common share is total common stockholders' equity less goodwill and core deposit and customer relationship intangibles, net, divided by common shares outstanding, net of treasury. This amount is a non-GAAP financial measure but has been included as it is considered to be a critical metric with which to analyze and evaluate the financial condition and capital strength of Heartland. This measure should not be considered a substitute for operating results determined in accordance with GAAP. | |||||||||||||||||||
(5) The tangible common equity ratio is total common stockholders' equity less goodwill and core deposit intangibles, net divided by total assets less goodwill and core deposit intangibles, net. This ratio is a non-GAAP financial measure but has been included as it is considered to be a critical metric with which to analyze and evaluate the financial condition and capital strength of Heartland. This measure should not be considered a substitute for operating results determined in accordance with GAAP. |
Non-GAAP Reconciliations (Dollars in thousands, except per share data) | For the Three Months Ended March 31, | ||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Reconciliation of Annualized Return on Average Tangible Common Equity (non-GAAP) | |||||||||||||||||||||||
Net income available to common stockholders (GAAP) | $ | 50,763 | $ | 41,076 | |||||||||||||||||||
Plus core deposit and customer relationship intangibles amortization, net of tax(1) | 1,413 | 1,623 | |||||||||||||||||||||
Net income available to common stockholders excluding intangible amortization (non-GAAP) | $ | 52,176 | $ | 42,699 | |||||||||||||||||||
Average common equity (GAAP) | $ | 1,655,860 | $ | 2,003,424 | |||||||||||||||||||
Less average goodwill | 576,005 | 576,005 | |||||||||||||||||||||
Less average core deposit and customer relationship intangibles, net | 24,238 | 31,931 | |||||||||||||||||||||
Average tangible common equity (non-GAAP) | $ | 1,055,617 | $ | 1,395,488 | |||||||||||||||||||
Annualized return on average common equity (GAAP) | 12.43 | % | 8.32 | % | |||||||||||||||||||
Annualized return on average tangible common equity (non-GAAP) | 20.05 | % | 12.41 | % | |||||||||||||||||||
Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP) | |||||||||||||||||||||||
Net interest income (GAAP) | $ | 152,212 | $ | 134,679 | |||||||||||||||||||
Plus tax-equivalent adjustment(1) | 2,209 | 2,119 | |||||||||||||||||||||
Net interest income, fully tax-equivalent (non-GAAP) | $ | 154,421 | $ | 136,798 | |||||||||||||||||||
Average earning assets | $ | 18,392,649 | $ | 17,757,067 | |||||||||||||||||||
Annualized net interest margin (GAAP) | 3.36 | % | 3.08 | % | |||||||||||||||||||
Annualized net interest margin, fully tax-equivalent (non-GAAP) | 3.40 | 3.12 | |||||||||||||||||||||
Net purchase accounting discount accretion on loans included in annualized net interest margin | 0.02 | 0.05 | |||||||||||||||||||||
Reconciliation of Adjusted Efficiency Ratio (non-GAAP) | |||||||||||||||||||||||
Net interest income (GAAP) | $ | 152,212 | $ | 134,679 | |||||||||||||||||||
Tax-equivalent adjustment(1) | 2,209 | 2,119 | |||||||||||||||||||||
Fully tax-equivalent net interest income | 154,421 | 136,798 | |||||||||||||||||||||
Noninterest income (GAAP) | 29,999 | 34,569 | |||||||||||||||||||||
Securities (gains)/losses, net | 1,104 | (2,872) | |||||||||||||||||||||
Unrealized (gain)/loss on equity securities, net | (193) | 283 | |||||||||||||||||||||
Valuation adjustment on servicing rights | — | (1,658) | |||||||||||||||||||||
Adjusted revenue (non-GAAP) | $ | 185,331 | $ | 167,120 | |||||||||||||||||||
Total noninterest expenses (GAAP) | $ | 111,043 | $ | 110,797 | |||||||||||||||||||
Less: | |||||||||||||||||||||||
Core deposit and customer relationship intangibles amortization | 1,788 | 2,054 | |||||||||||||||||||||
Partnership investment in tax credit projects | 538 | 77 | |||||||||||||||||||||
(Gain)/loss on sales/valuation of assets, net | 1,115 | 46 | |||||||||||||||||||||
Acquisition, integration and restructuring costs | 1,673 | 576 | |||||||||||||||||||||
Core expenses (non-GAAP) | $ | 105,929 | $ | 108,044 | |||||||||||||||||||
Efficiency ratio (GAAP) | 60.94 | % | 65.46 | % | |||||||||||||||||||
Adjusted efficiency ratio, fully tax-equivalent (non-GAAP) | 57.16 | % | 64.65 | % | |||||||||||||||||||
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%. |
Non-GAAP Reconciliations (Dollars in thousands, except per share data) | For the Three Months Ended March 31, | ||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Reconciliation of Annualized Ratio of Core Expenses to Average Assets (non-GAAP) | |||||||||||||||||||||||
Total noninterest expenses (GAAP) | $ | 111,043 | $ | 110,797 | |||||||||||||||||||
Core expenses (non-GAAP) | 105,929 | 108,044 | |||||||||||||||||||||
Average assets | $ | 20,118,005 | $ | 19,228,872 | |||||||||||||||||||
Total noninterest expenses to average assets (GAAP) | 2.24 | % | 2.34 | % | |||||||||||||||||||
Core expenses to average assets (non-GAAP) | 2.14 | % | 2.28 | % | |||||||||||||||||||
Acquisition, integration and restructuring costs | |||||||||||||||||||||||
Salaries and employee benefits | $ | 74 | $ | 340 | |||||||||||||||||||
Professional fees | 934 | 236 | |||||||||||||||||||||
Advertising | 122 | — | |||||||||||||||||||||
Other noninterest expenses | 543 | — | |||||||||||||||||||||
Total acquisition, integration and restructuring costs | $ | 1,673 | $ | 576 | |||||||||||||||||||
After tax impact on diluted earnings per common share(1) | $ | 0.03 | $ | 0.01 | |||||||||||||||||||
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%. |
ANALYSIS OF AVERAGE BALANCES, TAX EQUIVALENT YIELDS AND RATES (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Quarter Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2023 | December 31, 2022 | March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Average Balance | Interest | Rate | Average Balance | Interest | Rate | Average Balance | Interest | Rate | |||||||||||||||||||||||||||||||||||||||||||||
Earning Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxable | $ | 6,096,888 | $ | 55,976 | 3.72 | % | $ | 6,122,313 | $ | 53,178 | 3.45 | % | $ | 6,501,664 | $ | 32,620 | 2.03 | % | |||||||||||||||||||||||||||||||||||
Nontaxable(1) | 922,676 | 7,630 | 3.35 | 890,368 | 7,762 | 3.46 | 1,106,951 | 7,851 | 2.88 | ||||||||||||||||||||||||||||||||||||||||||||
Total securities | 7,019,564 | 63,606 | 3.67 | 7,012,681 | 60,940 | 3.45 | 7,608,615 | 40,471 | 2.16 | ||||||||||||||||||||||||||||||||||||||||||||
Interest on deposits with other banks and short-term investments | 105,400 | 1,131 | 4.35 | 151,405 | 1,410 | 3.69 | 216,451 | 71 | 0.13 | ||||||||||||||||||||||||||||||||||||||||||||
Federal funds sold | — | — | — | 739 | 11 | 5.91 | 11 | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Loans:(2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial(1) | 3,459,317 | 49,907 | 5.85 | 3,346,843 | 45,290 | 5.37 | 2,744,336 | 27,053 | 4.00 | ||||||||||||||||||||||||||||||||||||||||||||
PPP loans | 9,970 | 26 | 1.06 | 12,252 | 397 | 12.86 | 132,050 | 4,323 | 13.28 | ||||||||||||||||||||||||||||||||||||||||||||
Owner occupied commercial real estate | 2,289,002 | 26,769 | 4.74 | 2,277,055 | 26,194 | 4.56 | 2,243,522 | 21,278 | 3.85 | ||||||||||||||||||||||||||||||||||||||||||||
Non-owner occupied commercial real estate | 2,331,318 | 30,749 | 5.35 | 2,286,298 | 29,273 | 5.08 | 2,060,548 | 21,163 | 4.17 | ||||||||||||||||||||||||||||||||||||||||||||
Real estate construction | 1,099,026 | 18,131 | 6.69 | 1,050,802 | 16,585 | 6.26 | 847,250 | 9,276 | 4.44 | ||||||||||||||||||||||||||||||||||||||||||||
Agricultural and agricultural real estate | 835,648 | 11,353 | 5.51 | 785,647 | 10,159 | 5.13 | 745,348 | 7,006 | 3.81 | ||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | 852,561 | 9,273 | 4.41 | 858,767 | 9,168 | 4.24 | 843,881 | 8,085 | 3.89 | ||||||||||||||||||||||||||||||||||||||||||||
Consumer | 501,236 | 8,242 | 6.67 | 499,849 | 7,426 | 5.89 | 426,659 | 4,655 | 4.42 | ||||||||||||||||||||||||||||||||||||||||||||
Less: allowance for credit losses-loans | (110,393) | — | — | (106,500) | — | — | (111,604) | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Net loans | 11,267,685 | 154,450 | 5.56 | 11,011,013 | 144,492 | 5.21 | 9,931,990 | 102,839 | 4.20 | ||||||||||||||||||||||||||||||||||||||||||||
Total earning assets | 18,392,649 | 219,187 | 4.83 | % | 18,175,838 | 206,853 | 4.52 | % | 17,757,067 | 143,381 | 3.27 | % | |||||||||||||||||||||||||||||||||||||||||
Nonearning Assets | 1,725,356 | 1,738,011 | 1,472,805 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | 20,118,005 | $ | 19,913,849 | $ | 19,229,872 | |||||||||||||||||||||||||||||||||||||||||||||||
Interest Bearing Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Savings | $ | 9,730,494 | $ | 37,893 | 1.58 | % | $ | 9,987,692 | $ | 25,950 | 1.03 | % | $ | 8,889,950 | $ | 2,394 | 0.11 | % | |||||||||||||||||||||||||||||||||||
Time deposits | 2,257,047 | 19,005 | 3.41 | 1,322,094 | 6,265 | 1.88 | 1,071,675 | 583 | 0.22 | ||||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings | 222,772 | 2,422 | 4.41 | 298,804 | 2,223 | 2.95 | 119,588 | 46 | 0.16 | ||||||||||||||||||||||||||||||||||||||||||||
Other borrowings | 371,921 | 5,446 | 5.94 | 371,442 | 5,043 | 5.39 | 372,187 | 3,560 | 3.88 | ||||||||||||||||||||||||||||||||||||||||||||
Total interest bearing liabilities | 12,582,234 | 64,766 | 2.09 | % | 11,980,032 | 39,481 | 1.31 | % | 10,453,400 | 6,583 | 0.26 | % | |||||||||||||||||||||||||||||||||||||||||
Noninterest Bearing Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest bearing deposits | 5,518,326 | 6,009,432 | 6,497,753 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest and other liabilities | 250,880 | 264,941 | 164,590 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total noninterest bearing liabilities | 5,769,206 | 6,274,373 | 6,662,343 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | 1,766,565 | 1,659,444 | 2,114,129 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities and Equity | $ | 20,118,005 | $ | 19,913,849 | $ | 19,229,872 | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest income, fully tax-equivalent (non-GAAP)(1)(3) | $ | 154,421 | $ | 167,372 | $ | 136,798 | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest spread(1) | 2.74 | % | 3.21 | % | 3.01 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest income, fully tax-equivalent to total earning assets (non-GAAP)(1)(3) | 3.40 | % | 3.65 | % | 3.12 | % | |||||||||||||||||||||||||||||||||||||||||||||||
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Nonaccrual loans and loans held for sale are included in the average loans outstanding. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(3) Refer to "Non-GAAP Financial Measures" for additional information on the usage and presentation of these non-GAAP measures, and refer to the financial tables under "Financial Highlights" for the reconciliations to the most directly comparable GAAP measures. |
ANALYSIS OF AVERAGE BALANCES, TAX-EQUIVALENT YIELDS AND RATES(1) (Dollars in thousands) | |||||||||||||||||||||
For the Quarter Ended | |||||||||||||||||||||
September 30, 2017 | September 30, 2016 | ||||||||||||||||||||
Average Balance | Interest | Rate | Average Balance | Interest | Rate | ||||||||||||||||
Earning Assets | |||||||||||||||||||||
Securities: | |||||||||||||||||||||
Taxable | $ | 1,667,076 | $ | 10,394 | 2.47 | % | $ | 1,415,446 | $ | 7,917 | 2.23 | % | |||||||||
Nontaxable(1) | 643,925 | 7,825 | 4.82 | 473,152 | 5,719 | 4.81 | |||||||||||||||
Total securities | 2,311,001 | 18,219 | 3.13 | 1,888,598 | 13,636 | 2.87 | |||||||||||||||
Interest bearing deposits with the Federal Reserve Bank and other banks and other short-term investments | 164,809 | 558 | 1.34 | 7,026 | 6 | 0.34 | |||||||||||||||
Federal funds sold | 18,874 | 34 | 0.71 | 1,409 | 1 | 0.28 | |||||||||||||||
Loans:(2) | |||||||||||||||||||||
Commercial and commercial real estate(1) | 4,647,414 | 59,121 | 5.05 | 3,908,623 | 48,334 | 4.92 | |||||||||||||||
Residential mortgage | 683,186 | 7,300 | 4.24 | 717,374 | 7,248 | 4.02 | |||||||||||||||
Agricultural and agricultural real estate(1) | 504,970 | 6,175 | 4.85 | 486,008 | 5,719 | 4.68 | |||||||||||||||
Consumer | 450,694 | 9,032 | 7.95 | 426,083 | 8,256 | 7.71 | |||||||||||||||
Fees on loans | 2,464 | — | — | 1,708 | — | ||||||||||||||||
Less: allowance for loan losses | (54,720 | ) | — | — | (52,261 | ) | — | — | |||||||||||||
Net loans | 6,231,544 | 84,092 | 5.35 | 5,485,827 | 71,265 | 5.17 | |||||||||||||||
Total earning assets | 8,726,228 | 102,903 | 4.68 | % | 7,382,860 | 84,908 | 4.58 | % | |||||||||||||
Nonearning Assets | 913,616 | 789,823 | |||||||||||||||||||
Total Assets | $ | 9,639,844 | $ | 8,172,683 | |||||||||||||||||
Interest Bearing Liabilities | |||||||||||||||||||||
Savings | $ | 4,205,946 | $ | 3,162 | 0.30 | % | $ | 3,697,426 | $ | 2,066 | 0.22 | % | |||||||||
Time, $100,000 and over | 408,560 | 787 | 0.76 | 399,498 | 813 | 0.81 | |||||||||||||||
Other time deposits | 573,178 | 1,124 | 0.78 | 570,445 | 1,122 | 0.78 | |||||||||||||||
Short-term borrowings | 209,795 | 271 | 0.51 | 258,783 | 235 | 0.36 | |||||||||||||||
Other borrowings | 300,234 | 3,790 | 5.01 | 298,020 | 3,770 | 5.03 | |||||||||||||||
Total interest bearing liabilities | 5,697,713 | 9,134 | 0.64 | % | 5,224,172 | 8,006 | 0.61 | % | |||||||||||||
Noninterest Bearing Liabilities | |||||||||||||||||||||
Noninterest bearing deposits | 2,912,344 | 2,171,965 | |||||||||||||||||||
Accrued interest and other liabilities | 74,338 | 84,142 | |||||||||||||||||||
Total noninterest bearing liabilities | 2,986,682 | 2,256,107 | |||||||||||||||||||
Stockholders' Equity | 955,449 | 692,404 | |||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 9,639,844 | $ | 8,172,683 | |||||||||||||||||
Net interest income, fully tax-equivalent (non-GAAP)(1) | $ | 93,769 | $ | 76,902 | |||||||||||||||||
Net interest spread(1) | 4.04 | % | 3.97 | % | |||||||||||||||||
Net interest income, fully tax-equivalent (non-GAAP) to total earning assets(3) | 4.26 | % | 4.14 | % | |||||||||||||||||
Interest bearing liabilities to earning assets | 65.29 | % | 70.76 | % | |||||||||||||||||
Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)(3) | |||||||||||||||||||||
Net interest income, fully tax-equivalent (non-GAAP) | $ | 93,769 | $ | 76,902 | |||||||||||||||||
Adjustments for tax-equivalent interest(1) | (3,925 | ) | (3,221 | ) | |||||||||||||||||
Net interest income (GAAP) | $ | 89,844 | $ | 73,681 | |||||||||||||||||
Average Earning Assets | $ | 8,726,228 | $ | 7,382,860 | |||||||||||||||||
Annualized net interest margin (GAAP) | 4.08 | % | 3.97 | % | |||||||||||||||||
Annualized net interest margin, fully tax-equivalent (non-GAAP) | 4.26 | % | 4.14 | % | |||||||||||||||||
(1) Computed on a tax-equivalent basis using an effective tax rate of 35% | |||||||||||||||||||||
(2) Nonaccrual loans are included in the average loans outstanding. | |||||||||||||||||||||
(3) Annualized net interest margin, fully tax-equivalent is a non-GAAP measure, which adjusts net interest income for the tax-favored status of certain loans and securities. Management believes this measure enhances the comparability of net interest income arising from taxable and tax-exempt sources. This measure should not be considered a substitute for operating results determined in accordance with GAAP. |
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2023 Compared to March 31, 2022 Change Due to | March 31, 2023 Compared to December 31, 2022 Changes Due to | March 31, 2022 Compared to March 31, 2021 Change Due to | |||||||||||||||||||||||||||||||||||||||||||||||||||
Volume | Rate | Net | Volume | Rate | Net | Volume | Rate | Net | |||||||||||||||||||||||||||||||||||||||||||||
Earnings Assets/Interest Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxable | $ | (13,693) | $ | 37,049 | $ | 23,356 | $ | (1,529) | $ | 4,327 | $ | 2,798 | $ | 12,144 | $ | (9,967) | $ | 2,177 | |||||||||||||||||||||||||||||||||||
Nontaxable(1) | (5,403) | 5,182 | $ | (221) | 946 | (1,078) | $ | (132) | 5,403 | (3,252) | 2,151 | ||||||||||||||||||||||||||||||||||||||||||
Interest bearing deposits | (274) | 1,334 | $ | 1,060 | (1,431) | 1,152 | $ | (279) | 4 | 1 | 5 | ||||||||||||||||||||||||||||||||||||||||||
Federal funds sold | — | — | $ | — | (6) | (5) | $ | (11) | — | (1) | (1) | ||||||||||||||||||||||||||||||||||||||||||
Loans(1)(2) | 15,144 | 36,467 | $ | 51,611 | 2,548 | 7,410 | $ | 9,958 | 8,488 | (18,652) | (10,164) | ||||||||||||||||||||||||||||||||||||||||||
Total earning assets | (4,226) | 80,032 | 75,806 | 528 | 11,806 | 12,334 | 26,039 | (31,871) | (5,832) | ||||||||||||||||||||||||||||||||||||||||||||
Liabilities/Interest Expense | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest bearing deposits: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Savings | 248 | 35,251 | $ | 35,499 | (4,506) | 16,449 | $ | 11,943 | 1,049 | (1,085) | (36) | ||||||||||||||||||||||||||||||||||||||||||
Time deposits | 1,307 | 17,115 | $ | 18,422 | 5,913 | 6,827 | $ | 12,740 | (230) | (1,152) | (1,382) | ||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings | 73 | 2,303 | $ | 2,376 | (2,894) | 3,093 | $ | 199 | (59) | (47) | (106) | ||||||||||||||||||||||||||||||||||||||||||
Other borrowings | (18) | 1,904 | $ | 1,886 | 5 | 398 | $ | 403 | (1,611) | 1,871 | 260 | ||||||||||||||||||||||||||||||||||||||||||
Total interest bearing liabilities | 1,610 | 56,573 | 58,183 | (1,482) | 26,767 | 25,285 | (851) | (413) | (1,264) | ||||||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | (5,836) | $ | 23,459 | $ | 17,623 | $ | 2,010 | $ | (14,961) | $ | (12,951) | $ | 26,890 | $ | (31,458) | $ | (4,568) | |||||||||||||||||||||||||||||||||||
(1) Computed on a tax-equivalent basis using an effective tax rate of 21%. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Nonaccrual loans and loans held for sale are included in average loans outstanding. |
ANALYSIS OF AVERAGE BALANCES, TAX-EQUIVALENT YIELDS AND RATES(1) (Dollars in thousands) | |||||||||||||||||||||
For the Nine Months Ended | |||||||||||||||||||||
September 30, 2017 | September 30, 2016 | ||||||||||||||||||||
Average Balance | Interest | Rate | Average Balance | Interest | Rate | ||||||||||||||||
Earning Assets | |||||||||||||||||||||
Securities: | |||||||||||||||||||||
Taxable | $ | 1,545,091 | $ | 27,246 | 2.36 | % | $ | 1,464,080 | $ | 24,604 | 2.24 | % | |||||||||
Nontaxable(1) | 638,119 | 23,534 | 4.93 | 440,275 | 16,605 | 5.04 | |||||||||||||||
Total securities | 2,183,210 | 50,780 | 3.11 | 1,904,355 | 41,209 | 2.89 | |||||||||||||||
Interest bearing deposits with the Federal Reserve Bank and other banks and other short-term investments | 127,870 | 1,112 | 1.16 | 9,785 | 13 | 0.18 | |||||||||||||||
Federal funds sold | 6,885 | 37 | 0.72 | 12,509 | 12 | 0.13 | |||||||||||||||
Loans:(2) | |||||||||||||||||||||
Commercial and commercial real estate(1) | 4,097,967 | 151,946 | 4.96 | 3,840,060 | 141,977 | 4.94 | |||||||||||||||
Residential mortgage | 654,488 | 20,492 | 4.19 | 751,694 | 23,133 | 4.11 | |||||||||||||||
Agricultural and agricultural real estate(1) | 492,170 | 17,536 | 4.76 | 478,564 | 16,952 | 4.73 | |||||||||||||||
Consumer | 434,995 | 25,374 | 7.80 | 422,869 | 24,452 | 7.72 | |||||||||||||||
Fees on loans | 5,894 | — | 5,362 | — | |||||||||||||||||
Less: allowance for loan losses | (54,775 | ) | — | — | (50,980 | ) | — | — | |||||||||||||
Net loans | 5,624,845 | 221,242 | 5.26 | 5,442,207 | 211,876 | 5.20 | |||||||||||||||
Total earning assets | 7,942,810 | 273,171 | 4.60 | % | 7,368,856 | 253,110 | 4.59 | % | |||||||||||||
Nonearning Assets | 797,893 | 767,636 | |||||||||||||||||||
Total Assets | $ | 8,740,703 | $ | 8,136,492 | |||||||||||||||||
Interest Bearing Liabilities | |||||||||||||||||||||
Savings | $ | 3,976,403 | $ | 7,772 | 0.26 | % | $ | 3,651,370 | $ | 5,988 | 0.22 | % | |||||||||
Time, $100,000 and over | 369,595 | 2,239 | 0.81 | 439,609 | 2,417 | 0.73 | |||||||||||||||
Other time deposits | 512,551 | 2,955 | 0.77 | 599,745 | 3,790 | 0.84 | |||||||||||||||
Short-term borrowings | 199,503 | 498 | 0.33 | 314,367 | 1,083 | 0.46 | |||||||||||||||
Other borrowings | 288,774 | 10,674 | 4.94 | 281,617 | 10,918 | 5.18 | |||||||||||||||
Total interest bearing liabilities | 5,346,826 | 24,138 | 0.60 | % | 5,286,708 | 24,196 | 0.61 | % | |||||||||||||
Noninterest Bearing Liabilities | |||||||||||||||||||||
Noninterest bearing deposits | 2,494,850 | 2,084,379 | |||||||||||||||||||
Accrued interest and other liabilities | 64,824 | 78,093 | |||||||||||||||||||
Total noninterest bearing liabilities | 2,559,674 | 2,162,472 | |||||||||||||||||||
Stockholders' Equity | 834,203 | 687,312 | |||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 8,740,703 | $ | 8,136,492 | |||||||||||||||||
Net interest income, fully tax-equivalent (non-GAAP)(1) | $ | 249,033 | $ | 228,914 | |||||||||||||||||
Net interest spread(1) | 4.00 | % | 3.98 | % | |||||||||||||||||
Net interest income, fully tax-equivalent (non-GAAP) to total earning assets(3) | 4.19 | % | 4.15 | % | |||||||||||||||||
Interest bearing liabilities to earning assets | 67.32 | % | 71.74 | % | |||||||||||||||||
Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)(3) | |||||||||||||||||||||
Net interest income, fully tax-equivalent (non-GAAP) | $ | 249,033 | $ | 228,914 | |||||||||||||||||
Adjustments for tax-equivalent interest(1) | (11,581 | ) | (9,408 | ) | |||||||||||||||||
Net interest income (GAAP) | $ | 237,452 | $ | 219,506 | |||||||||||||||||
Average Earning Assets | $ | 7,942,810 | $ | 7,368,856 | |||||||||||||||||
Annualized net interest margin (GAAP) | 4.00 | % | 3.98 | % | |||||||||||||||||
Annualized net interest margin, fully tax-equivalent (non-GAAP) | 4.19 | % | 4.15 | % | |||||||||||||||||
(1) Computed on a tax-equivalent basis using an effective tax rate of 35%. | |||||||||||||||||||||
(2) Nonaccrual loans are included in the average loans outstanding. | |||||||||||||||||||||
(3) Annualized net interest margin, fully tax-equivalent is a non-GAAP measure, which adjusts net interest income for the tax-favored status of certain loans and securities. Management believes this measure enhances the comparability of net interest income arising from taxable and tax-exempt sources. This measure should not be considered a substitute for operating results determined in accordance with GAAP. |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Provision expense for credit losses-loans | $ | 2,184 | $ | 2,628 | |||||||||||||||||||
Provision expense for credit losses-unfunded commitments | 890 | 617 | |||||||||||||||||||||
Total provision expense | $ | 3,074 | $ | 3,245 |
Three Months Ended September 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||
2017 | 2016 | Change | % Change | 2023 | 2022 | Change | % Change | ||||||||||||||||||||||||||||||
Service charges and fees | $ | 10,138 | $ | 8,278 | $ | 1,860 | 22 | % | Service charges and fees | $ | 17,136 | $ | 15,251 | $ | 1,885 | 12 | % | ||||||||||||||||||||
Loan servicing income | 1,161 | 873 | 288 | 33 | Loan servicing income | 714 | 286 | 428 | 150 | ||||||||||||||||||||||||||||
Trust fees | 3,872 | 3,689 | 183 | 5 | Trust fees | 5,657 | 6,079 | (422) | (7) | ||||||||||||||||||||||||||||
Brokerage and insurance commissions | 950 | 1,006 | (56 | ) | (6 | ) | Brokerage and insurance commissions | 696 | 869 | (173) | (20) | ||||||||||||||||||||||||||
Securities gains, net | 1,679 | 1,584 | 95 | 6 | |||||||||||||||||||||||||||||||||
Capital markets fees | Capital markets fees | 2,449 | 3,039 | (590) | (19) | ||||||||||||||||||||||||||||||||
Securities (losses)/gains, net | Securities (losses)/gains, net | (1,104) | 2,872 | (3,976) | (138) | ||||||||||||||||||||||||||||||||
Unrealized gain/(loss) on equity securities, net | Unrealized gain/(loss) on equity securities, net | 193 | (283) | 476 | 168 | ||||||||||||||||||||||||||||||||
Net gains on sale of loans held for sale | 4,997 | 11,459 | (6,462 | ) | (56 | ) | Net gains on sale of loans held for sale | 1,831 | 3,411 | (1,580) | (46) | ||||||||||||||||||||||||||
Valuation adjustment on commercial servicing rights | 5 | 5 | — | — | |||||||||||||||||||||||||||||||||
Valuation adjustment on servicing rights | Valuation adjustment on servicing rights | — | 1,658 | (1,658) | (100) | ||||||||||||||||||||||||||||||||
Income on bank owned life insurance | 766 | 620 | 146 | 24 | Income on bank owned life insurance | 964 | 524 | 440 | 84 | ||||||||||||||||||||||||||||
Other noninterest income | 1,409 | 1,028 | 381 | 37 | Other noninterest income | 1,463 | 863 | 600 | 70 | ||||||||||||||||||||||||||||
Total noninterest income | $ | 24,977 | $ | 28,542 | $ | (3,565 | ) | (12 | )% | Total noninterest income | $ | 29,999 | $ | 34,569 | $ | (4,570) | (13) | % |
Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | Change | % Change | |||||||||||
Service charges and fees | $ | 29,291 | $ | 23,462 | $ | 5,829 | 25 | % | ||||||
Loan servicing income | 4,236 | 3,433 | 803 | 23 | ||||||||||
Trust fees | 11,482 | 11,127 | 355 | 3 | ||||||||||
Brokerage and insurance commissions | 2,962 | 2,914 | 48 | 2 | ||||||||||
Securities gains, net | 5,553 | 9,732 | (4,179 | ) | (43 | ) | ||||||||
Net gains on sale of loans held for sale | 17,961 | 33,794 | (15,833 | ) | (47 | ) | ||||||||
Valuation adjustment on commercial servicing rights | 29 | (41 | ) | 70 | (171 | ) | ||||||||
Income on bank owned life insurance | 2,039 | 1,733 | 306 | 18 | ||||||||||
Other noninterest income | 2,941 | 2,992 | (51 | ) | (2 | ) | ||||||||
Total noninterest income | $ | 76,494 | $ | 89,146 | $ | (12,652 | ) | (14 | )% |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | Change | % Change | ||||||||||||||||||||
Service charges and fees on deposit accounts | $ | 4,911 | $ | 4,395 | $ | 516 | 12 | % | |||||||||||||||
Overdraft fees | 2,969 | 2,825 | 144 | 5 | |||||||||||||||||||
Customer service and other service fees | 93 | 81 | 12 | 15 | |||||||||||||||||||
Credit card fee income | 7,003 | 5,649 | 1,354 | 24 | |||||||||||||||||||
Debit card income | 2,160 | 2,301 | (141) | (6) | |||||||||||||||||||
Total service charges and fees | $ | 17,136 | $ | 15,251 | $ | 1,885 | 12 | % |
Three Months Ended September 30, | ||||||||||||||
2017 | 2016 | Change | % Change | |||||||||||
Service charges and fees on deposit accounts | $ | 2,577 | $ | 2,018 | $ | 559 | 28 | % | ||||||
Overdraft fees | 2,479 | 2,285 | 194 | 8 | ||||||||||
Customer service fees | 102 | 55 | 47 | 85 | ||||||||||
Credit card fee income | 1,994 | 1,290 | 704 | 55 | ||||||||||
Debit card income | 2,985 | 2,629 | 356 | 14 | ||||||||||
Other service charges | 1 | 1 | — | — | ||||||||||
Total service charges and fees | $ | 10,138 | $ | 8,278 | $ | 1,860 | 22 | % | ||||||
Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | Change | % Change | |||||||||||
Service charges and fees on deposit accounts | $ | 7,002 | $ | 5,968 | $ | 1,034 | 17 | % | ||||||
Overdraft fees | 6,950 | 6,342 | 608 | 10 | ||||||||||
Customer service fees | 217 | 161 | 56 | 35 | ||||||||||
Credit card fee income | 6,212 | 3,431 | 2,781 | 81 | ||||||||||
Debit card income | 8,908 | 7,532 | 1,376 | 18 | ||||||||||
Other service charges | 2 | 27 | (25 | ) | (93 | ) | ||||||||
Total service charges and fees | $ | 29,291 | $ | 23,462 | $ | 5,829 | 25 | % |
Three Months Ended September 30, | ||||||||||||||
2017 | 2016 | Change | % Change | |||||||||||
Commercial and agricultural loan servicing fees(1) | $ | 684 | $ | 730 | $ | (46 | ) | (6 | )% | |||||
Residential mortgage servicing fees | 2,932 | 3,111 | (179 | ) | (6 | ) | ||||||||
Mortgage servicing rights amortization | (2,455 | ) | (2,968 | ) | 513 | (17 | ) | |||||||
Total loan servicing income | $ | 1,161 | $ | 873 | $ | 288 | 33 | % | ||||||
Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | Change | % Change | |||||||||||
Commercial and agricultural loan servicing fees(1) | $ | 2,101 | $ | 2,197 | $ | (96 | ) | (4 | )% | |||||
Residential mortgage servicing fees | 9,319 | 9,031 | 288 | 3 | ||||||||||
Mortgage servicing rights amortization | (7,184 | ) | (7,795 | ) | 611 | (8 | ) | |||||||
Total loan servicing income | $ | 4,236 | $ | 3,433 | $ | 803 | 23 | % | ||||||
(1) Includes servicing fees for commercial, commercial real estate, agricultural and agricultural real estate loans |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | Change | % Change | ||||||||||||||||||||
Commercial and agricultural loan servicing fees(1) | $ | 473 | $ | 237 | $ | 236 | 100 | % | |||||||||||||||
Residential mortgage servicing fees | 451 | 454 | (3) | (1) | |||||||||||||||||||
Mortgage servicing rights amortization | (210) | (405) | 195 | 48 | |||||||||||||||||||
Total loan servicing income | $ | 714 | $ | 286 | $ | 428 | 150 | % | |||||||||||||||
(1) Includes servicing fees for commercial, commercial real estate, agricultural and agricultural real estate loans. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Total residential mortgage loan applications | $ | 271,476 | $ | 445,107 | $ | 828,203 | $ | 1,293,013 | |||||||
Residential mortgage loans originated | $ | 198,911 | $ | 324,337 | $ | 577,399 | $ | 887,236 | |||||||
Residential mortgage loans sold | $ | 188,501 | $ | 315,917 | $ | 541,318 | $ | 838,746 | |||||||
Net gains on sale of residential mortgage loans | $ | 4,821 | $ | 11,061 | $ | 17,396 | $ | 32,136 | |||||||
Net gains on sale of commercial and agricultural loans(1) | $ | 176 | $ | 398 | $ | 565 | $ | 1,658 | |||||||
Percentage of residential mortgage loans originated for refinancing | 31 | % | 38 | % | 30 | % | 37 | % | |||||||
(1) Includes net gains on sale of commercial, commercial real estate and agricultural and agricultural real estate loans |
Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | Change | % Change | ||||||||||||||||||||
Salaries and employee benefits | $ | 62,149 | $ | 66,174 | $ | (4,025) | (6) | % | |||||||||||||||
Occupancy | 7,209 | 7,362 | (153) | (2) | |||||||||||||||||||
Furniture and equipment | 2,915 | 3,519 | (604) | (17) | |||||||||||||||||||
Professional fees | 16,076 | 15,156 | 920 | 6 | |||||||||||||||||||
Advertising | 1,985 | 1,555 | 430 | 28 | |||||||||||||||||||
Core deposit and customer relationship intangibles amortization | 1,788 | 2,054 | (266) | (13) | |||||||||||||||||||
Other real estate and loan collection expenses | 155 | 195 | (40) | (21) | |||||||||||||||||||
Loss on sales/valuations of assets, net | 1,115 | 46 | 1,069 | 2,324 | |||||||||||||||||||
Acquisition, integration and restructuring costs | 1,673 | 576 | 1,097 | 190 | |||||||||||||||||||
Partnership investment in tax credit projects | 538 | 77 | 461 | 599 | |||||||||||||||||||
Other noninterest expenses | 15,440 | 14,083 | 1,357 | 10 | |||||||||||||||||||
Total noninterest expenses | $ | 111,043 | $ | 110,797 | $ | 246 | — | % |
Three Months Ended September 30, | ||||||||||||||
2017 | 2016 | Change | % Change | |||||||||||
Salaries and employee benefits | $ | 45,225 | $ | 40,733 | $ | 4,492 | 11 | % | ||||||
Occupancy | 6,223 | 5,099 | 1,124 | 22 | ||||||||||
Furniture and equipment | 2,826 | 2,746 | 80 | 3 | ||||||||||
Professional fees | 8,450 | 5,985 | 2,465 | 41 | ||||||||||
FDIC insurance assessments | 894 | 1,180 | (286 | ) | (24 | ) | ||||||||
Advertising | 1,358 | 1,339 | 19 | 1 | ||||||||||
Core deposit intangibles and customer relationship intangibles amortization | 1,863 | 1,291 | 572 | 44 | ||||||||||
Other real estate and loan collection expenses | 581 | 640 | (59 | ) | (9 | ) | ||||||||
Loss on sales/valuations of assets, net | 1,342 | 794 | 548 | 69 | ||||||||||
Other noninterest expenses | 9,997 | 8,620 | 1,377 | 16 | ||||||||||
Total noninterest expenses | $ | 78,759 | $ | 68,427 | $ | 10,332 | 15 | % |
Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | Change | % Change | |||||||||||
Salaries and employee benefits | $ | 128,118 | $ | 124,432 | $ | 3,686 | 3 | % | ||||||
Occupancy | 16,352 | 15,322 | 1,030 | 7 | ||||||||||
Furniture and equipment | 7,913 | 7,301 | 612 | 8 | ||||||||||
Professional fees | 24,342 | 20,481 | 3,861 | 19 | ||||||||||
FDIC insurance assessments | 2,610 | 3,468 | (858 | ) | (25 | ) | ||||||||
Advertising | 5,141 | 4,174 | 967 | 23 | ||||||||||
Core deposit intangibles and customer relationship intangibles amortization | 4,252 | 4,483 | (231 | ) | (5 | ) | ||||||||
Other real estate and loan collection expenses | 1,774 | 1,871 | (97 | ) | (5 | ) | ||||||||
Loss on sales/valuations of assets, net | 1,642 | 1,064 | 578 | 54 | ||||||||||
Other noninterest expenses | 27,653 | 27,160 | 493 | 2 | ||||||||||
Total noninterest expenses | $ | 219,797 | $ | 209,756 | $ | 10,041 | 5 | % |
March 31, 2023 | December 31, 2022 | Change | % Change | ||||||||||||||||||||
Commercial and industrial | $ | 3,498,345 | $ | 3,464,414 | $ | 33,931 | 1 | % | |||||||||||||||
Paycheck Protection Program ("PPP") | 8,258 | 11,025 | (2,767) | (25) | |||||||||||||||||||
Owner occupied commercial real estate | 2,312,538 | 2,265,307 | 47,231 | 2 | |||||||||||||||||||
Non-owner occupied commercial real estate | 2,421,341 | 2,330,940 | 90,401 | 4 | |||||||||||||||||||
Real estate construction | 1,102,186 | 1,076,082 | 26,104 | 2 | |||||||||||||||||||
Agricultural and agricultural real estate | 810,183 | 920,510 | (110,327) | (12) | |||||||||||||||||||
Residential mortgage | 841,084 | 853,361 | (12,277) | (1) | |||||||||||||||||||
Consumer | 501,418 | 506,713 | (5,295) | (1) | |||||||||||||||||||
Total loans held to maturity | $ | 11,495,353 | $ | 11,428,352 | $ | 67,001 | 1 | % |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Amount | Percent | Amount | Percent | ||||||||||||||||||||
Loans receivable held to maturity: | |||||||||||||||||||||||
Commercial and industrial | $ | 3,498,345 | 30.43 | % | $ | 3,464,414 | 30.31 | % | |||||||||||||||
PPP | 8,258 | 0.07 | 11,025 | 0.10 | |||||||||||||||||||
Owner occupied commercial real estate | 2,312,538 | 20.12 | 2,265,307 | 19.82 | |||||||||||||||||||
Non-owner occupied commercial real estate | 2,421,341 | 21.06 | 2,330,940 | 20.40 | |||||||||||||||||||
Real estate construction | 1,102,186 | 9.59 | 1,076,082 | 9.42 | |||||||||||||||||||
Agricultural and agricultural real estate | 810,183 | 7.05 | 920,510 | 8.05 | |||||||||||||||||||
Residential mortgage | 841,084 | 7.32 | 853,361 | 7.47 | |||||||||||||||||||
Consumer | 501,418 | 4.36 | 506,713 | 4.43 | |||||||||||||||||||
Gross loans receivable held to maturity | 11,495,353 | 100.00 | % | 11,428,352 | 100.00 | % | |||||||||||||||||
Allowance for credit losses-loans | (112,707) | (109,483) | |||||||||||||||||||||
Loans receivable, net | $ | 11,382,646 | $ | 11,318,869 |
LOAN PORTFOLIO | September 30, 2017 | December 31, 2016 | |||||||||||
Amount | Percent | Amount | Percent | ||||||||||
Loans receivable held to maturity: | |||||||||||||
Commercial | $ | 1,613,903 | 25.31 | % | $ | 1,287,265 | 24.04 | % | |||||
Commercial real estate | 3,163,953 | 49.63 | 2,538,582 | 47.42 | |||||||||
Agricultural and agricultural real estate | 511,764 | 8.03 | 489,318 | 9.14 | |||||||||
Residential mortgage | 635,611 | 9.97 | 617,924 | 11.54 | |||||||||
Consumer | 450,088 | 7.06 | 420,613 | 7.86 | |||||||||
Gross loans receivable held to maturity | 6,375,319 | 100.00 | % | 5,353,702 | 100.00 | % | |||||||
Unearned discount | (605 | ) | (699 | ) | |||||||||
Deferred loan fees | (1,299 | ) | (1,284 | ) | |||||||||
Total net loans receivable held to maturity | 6,373,415 | 5,351,719 | |||||||||||
Allowance for loan losses | (54,885 | ) | (54,324 | ) | |||||||||
Loans receivable, net | $ | 6,318,530 | $ | 5,297,395 |
LOANS SECURED BY REAL ESTATE | |||||||
September 30, 2017 | December 31, 2016 | ||||||
Residential real estate, excluding residential construction and residential lot loans | $ | 989,112 | $ | 1,030,190 | |||
Industrial, manufacturing, business and commercial | 461,281 | 474,632 | |||||
Agriculture | 254,315 | 255,046 | |||||
Retail | 350,888 | 332,009 | |||||
Office | 335,057 | 347,334 | |||||
Land development and lots | 132,625 | 127,700 | |||||
Hotel, resort and hospitality | 163,076 | 151,571 | |||||
Multi-family | 185,634 | 185,559 | |||||
Food and beverage | 107,846 | 102,225 | |||||
Warehousing | 125,231 | 120,471 | |||||
Health services | 132,785 | 147,412 | |||||
Residential construction | 93,968 | 143,962 | |||||
All other | 169,912 | 172,617 | |||||
Loans acquired in the quarter | 775,587 | — | |||||
Purchase accounting valuations | (30,806 | ) | (17,559 | ) | |||
Total loans secured by real estate | $ | 4,246,511 | $ | 3,573,169 |
March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||
Amount | % of Allowance | Amount | % of Allowance | |||||||||||||||||||||||
Quantitative | $ | 86,462 | 64.62 | % | $ | 84,409 | 65.09 | % | ||||||||||||||||||
Qualitative/Economic Forecast | 47,331 | 35.38 | 45,270 | 34.91 | ||||||||||||||||||||||
Total | $ | 133,793 | 100.00 | % | $ | 129,679 | 100.00 | % |
ANALYSIS OF ALLOWANCE FOR LOAN LOSSES | Three Months Ended September 30, | |||||||||||||||||
2017 | 2016 | |||||||||||||||||
Balance at beginning of period | $ | 54,051 | $ | 51,756 | ||||||||||||||
Provision for loan losses | 5,705 | 5,328 | ||||||||||||||||
Recoveries on loans previously charged off | 888 | 852 | ||||||||||||||||
Charge-offs on loans | (5,759 | ) | (3,283 | ) | ||||||||||||||
Balance at end of period | $ | 54,885 | $ | 54,653 | ||||||||||||||
Annualized ratio of net charge offs to average loans | 0.31 | % | 0.17 | % | ||||||||||||||
Nine Months Ended September 30, | Three Months Ended March 31, | |||||||||||||||||
2017 | 2016 | 2023 | 2022 | |||||||||||||||
Balance at beginning of period | $ | 54,324 | $ | 48,685 | Balance at beginning of period | $ | 109,483 | $ | 110,088 | |||||||||
Provision for loan losses | 10,235 | 9,513 | ||||||||||||||||
Provision for credit losses | Provision for credit losses | 2,184 | 2,628 | |||||||||||||||
Recoveries on loans previously charged off | 2,569 | 4,294 | Recoveries on loans previously charged off | 3,191 | 1,023 | |||||||||||||
Charge-offs on loans | (12,243 | ) | (7,839 | ) | Charge-offs on loans | (2,151) | (13,217) | |||||||||||
Balance at end of period | $ | 54,885 | $ | 54,653 | Balance at end of period | $ | 112,707 | $ | 100,522 | |||||||||
Annualized ratio of net charge offs to average loans | 0.23 | % | 0.09 | % | ||||||||||||||
Allowance for credit losses for loans as a percent of loans | Allowance for credit losses for loans as a percent of loans | 0.98 | % | 0.99 | % | |||||||||||||
Annualized ratio of net charge offs/(recoveries) to average loans | Annualized ratio of net charge offs/(recoveries) to average loans | (0.04) | % | 0.49 | % |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Balance at beginning of period | $ | 20,196 | $ | 15,462 | |||||||
Impact of ASU 2016-13 adoption on January 1, 2020 | — | — | |||||||||
Adjusted balance at January 1, 2020 | 20,196 | 15,462 | |||||||||
Provision for credit losses | 890 | 617 | |||||||||
Balance at end of period | $ | 21,086 | $ | 16,079 |
March 31, | December 31, | |||||||||||||||||||||||||||||||||||||
NONPERFORMING ASSETS | September 30, | December 31, | ||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2016 | 2015 | 2023 | 2022 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Nonaccrual loans | $ | 63,456 | $ | 57,799 | $ | 64,299 | $ | 39,655 | Nonaccrual loans | $ | 58,066 | $ | 64,174 | $ | 58,231 | $ | 69,369 | |||||||||||||||||||||
Loans contractually past due 90 days or more | 2,348 | 105 | 86 | — | Loans contractually past due 90 days or more | 174 | 246 | 273 | 550 | |||||||||||||||||||||||||||||
Total nonperforming loans | 65,804 | 57,904 | 64,385 | 39,655 | Total nonperforming loans | 58,240 | 64,420 | 58,504 | 69,919 | |||||||||||||||||||||||||||||
Other real estate | 13,226 | 10,740 | 9,744 | 11,524 | Other real estate | 7,438 | 1,422 | 8,401 | 1,927 | |||||||||||||||||||||||||||||
Other repossessed assets | 773 | 821 | 663 | 485 | Other repossessed assets | 24 | 34 | 26 | 43 | |||||||||||||||||||||||||||||
Total nonperforming assets | $ | 79,803 | $ | 69,465 | $ | 74,792 | $ | 51,664 | Total nonperforming assets | $ | 65,702 | $ | 65,876 | $ | 66,931 | $ | 71,889 | |||||||||||||||||||||
Performing troubled debt restructured loans(1) | $ | 10,040 | $ | 10,281 | $ | 10,380 | $ | 11,075 | ||||||||||||||||||||||||||||||
Nonperforming loans to total loans | 1.03 | % | 1.06 | % | 1.20 | % | 0.79 | % | Nonperforming loans to total loans | 0.51 | % | 0.63 | % | 0.51 | % | 0.70 | % | |||||||||||||||||||||
Nonperforming assets to total loans plus repossessed property | 1.25 | % | 1.27 | % | 1.39 | % | 1.03 | % | Nonperforming assets to total loans plus repossessed property | 0.57 | 0.65 | 0.59 | 0.72 | |||||||||||||||||||||||||
Nonperforming assets to total assets | 0.82 | % | 0.85 | % | 0.91 | % | 0.67 | % | Nonperforming assets to total assets | 0.33 | 0.34 | 0.33 | 0.37 | |||||||||||||||||||||||||
(1) Represents accruing troubled debt restructured loans performing according to their restructured terms. |
Nonperforming Loans | Other Real Estate Owned | Other Repossessed Assets | Total Nonperforming Assets | ||||||||||||
June 30, 2017 | $ | 66,091 | $ | 9,269 | $ | 675 | $ | 76,035 | |||||||
Loan foreclosures | (425 | ) | 408 | 17 | — | ||||||||||
Net loan charge-offs | (4,871 | ) | — | — | (4,871 | ) | |||||||||
Acquired nonperforming assets | 1,075 | 6,916 | — | 7,991 | |||||||||||
New nonperforming loans | 9,117 | — | — | 9,117 | |||||||||||
Reduction of nonperforming loans(1) | (5,183 | ) | — | — | (5,183 | ) | |||||||||
OREO/Repossessed assets sales proceeds | — | (3,315 | ) | (13 | ) | (3,328 | ) | ||||||||
OREO/Repossessed assets writedowns, net | — | (52 | ) | (4 | ) | (56 | ) | ||||||||
Net activity at Citizens Finance Co. | — | — | 98 | 98 | |||||||||||
September 30, 2017 | $ | 65,804 | $ | 13,226 | $ | 773 | $ | 79,803 | |||||||
(1) Includes principal reductions and transfers to performing status. |
Nonperforming Loans | Other Real Estate Owned | Other Repossessed Assets | Total Nonperforming Assets | |||||||||||||||||||||||||||||||||||
December 31, 2022 | December 31, 2022 | $ | 58,504 | $ | 8,401 | $ | 26 | $ | 66,931 | |||||||||||||||||||||||||||||
Loan foreclosures | Loan foreclosures | (219) | 211 | 8 | — | |||||||||||||||||||||||||||||||||
Net loan recoveries | Net loan recoveries | 1,040 | — | — | 1,040 | |||||||||||||||||||||||||||||||||
Nonperforming Loans | Other Real Estate Owned | Other Repossessed Assets | Total Nonperforming Assets | |||||||||||||||||||||||||||||||||||
December 31, 2016 | $ | 64,385 | $ | 9,744 | $ | 663 | $ | 74,792 | ||||||||||||||||||||||||||||||
Loan foreclosures | (4,955 | ) | 4,710 | 245 | — | |||||||||||||||||||||||||||||||||
Net loan charge-offs | (9,674 | ) | — | — | (9,674 | ) | ||||||||||||||||||||||||||||||||
Acquired nonperforming assets | 1,075 | 6,916 | — | 7,991 | ||||||||||||||||||||||||||||||||||
New nonperforming loans | 37,636 | — | — | 37,636 | New nonperforming loans | 4,626 | — | — | 4,626 | |||||||||||||||||||||||||||||
Reduction of nonperforming loans(1) | (22,663 | ) | — | — | (22,663 | ) | Reduction of nonperforming loans(1) | (5,711) | — | — | (5,711) | |||||||||||||||||||||||||||
OREO/Repossessed assets sales proceeds | — | (7,560 | ) | (217 | ) | (7,777 | ) | OREO/Repossessed assets sales proceeds | — | (1,132) | (4) | (1,136) | ||||||||||||||||||||||||||
OREO/Repossessed assets writedowns, net | — | (584 | ) | (10 | ) | (594 | ) | OREO/Repossessed assets writedowns, net | — | (42) | (6) | (48) | ||||||||||||||||||||||||||
Net activity at Citizens Finance Co. | — | — | 92 | 92 | ||||||||||||||||||||||||||||||||||
September 30, 2017 | $ | 65,804 | $ | 13,226 | $ | 773 | $ | 79,803 | ||||||||||||||||||||||||||||||
March 31, 2023 | March 31, 2023 | $ | 58,240 | $ | 7,438 | $ | 24 | $ | 65,702 | |||||||||||||||||||||||||||||
(1) Includes principal reductions and transfers to performing status. | (1) Includes principal reductions and transfers to performing status. | (1) Includes principal reductions and transfers to performing status. |
March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||
Amount | Percent | Amount | Percent | |||||||||||||||||||||||
U.S. treasuries | $ | 31,932 | 0.46 | % | $ | 31,699 | 0.45 | % | ||||||||||||||||||
U.S. agencies | 43,584 | 0.62 | 43,135 | 0.61 | ||||||||||||||||||||||
Obligations of states and political subdivisions | 1,720,020 | 24.57 | 1,708,840 | 24.24 | ||||||||||||||||||||||
Mortgage-backed securities - agency | 1,757,469 | 25.10 | 1,772,105 | 25.13 | ||||||||||||||||||||||
Mortgage-backed securities - non-agency | 2,117,882 | 30.25 | 2,181,876 | 30.94 | ||||||||||||||||||||||
Commercial mortgage-backed securities - agency | 86,022 | 1.23 | 85,123 | 1.21 | ||||||||||||||||||||||
Commercial mortgage-backed securities - non-agency | 657,874 | 9.40 | 659,459 | 9.35 | ||||||||||||||||||||||
Asset-backed securities | 435,523 | 6.22 | 416,054 | 5.90 | ||||||||||||||||||||||
Corporate bonds | 57,845 | 0.83 | 57,942 | 0.82 | ||||||||||||||||||||||
Equity securities with a readily determinable fair value | 20,604 | 0.29 | 20,314 | 0.29 | ||||||||||||||||||||||
Other securities | 72,364 | 1.03 | 74,567 | 1.06 | ||||||||||||||||||||||
Total securities | $ | 7,001,119 | 100.00 | % | $ | 7,051,114 | 100.00 | % |
SECURITIES PORTFOLIO COMPOSITION | September 30, 2017 | December 31, 2016 | |||||||||||
Amount | Percent | Amount | Percent | ||||||||||
U.S. government corporations and agencies | $ | 7,415 | 0.31 | % | $ | 4,700 | 0.22 | % | |||||
Mortgage-backed securities | 1,565,400 | 65.97 | 1,290,500 | 60.56 | |||||||||
Obligation of states and political subdivisions | 760,329 | 32.04 | 799,806 | 37.53 | |||||||||
Equity securities | 16,596 | 0.70 | 14,520 | 0.68 | |||||||||
Other securities | 23,176 | 0.98 | 21,560 | 1.01 | |||||||||
Total securities | $ | 2,372,916 | 100.00 | % | $ | 2,131,086 | 100.00 | % |
March 31, 2023 | December 31, 2022 | Change | % Change | ||||||||||||||||||||
Demand-customer | $ | 5,119,554 | $ | 5,701,340 | $ | (581,786) | (10) | % | |||||||||||||||
Savings-customer | 8,647,396 | 8,903,747 | (256,351) | (3) | |||||||||||||||||||
Savings-wholesale | 609,213 | 1,090,644 | (481,431) | (44) | |||||||||||||||||||
Total savings | 9,256,609 | 9,994,391 | (737,782) | (7) | |||||||||||||||||||
Time-customer | 1,071,476 | 851,539 | 219,937 | 26 | |||||||||||||||||||
Time-wholesale | 2,233,707 | 965,739 | 1,267,968 | 131 | |||||||||||||||||||
Total time | 3,305,183 | 1,817,278 | 1,487,905 | 82 | |||||||||||||||||||
Total deposits | $ | 17,681,346 | $ | 17,513,009 | $ | 168,337 | 1 | % | |||||||||||||||
Total customer deposits | $ | 14,838,426 | $ | 15,456,626 | $ | (618,200) | (4) | % | |||||||||||||||
Total wholesale deposits | 2,842,920 | 2,056,383 | 786,537 | 38 | % | ||||||||||||||||||
Total deposits | $ | 17,681,346 | $ | 17,513,009 | $ | 168,337 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Amount | Percent | Amount | Percent | ||||||||||||||||||||
Demand-customer | $ | 5,119,554 | 28.95 | % | $ | 5,701,340 | 32.55 | % | |||||||||||||||
Savings-customer | 8,647,396 | 48.91 | 8,903,747 | 50.85 | |||||||||||||||||||
Savings-wholesale | 609,213 | 3.45 | 1,090,644 | 6.23 | |||||||||||||||||||
Time-customer | 1,071,476 | 6.06 | 851,539 | 4.86 | |||||||||||||||||||
Time-wholesale | 2,233,707 | 12.63 | 965,739 | 5.51 | |||||||||||||||||||
Total | $ | 17,681,346 | 100.00 | % | $ | 17,513,009 | 100.00 | % |
DEPOSITS | September 30, 2017 | December 31, 2016 | |||||||||||
Amount | Percent | Amount | Percent | ||||||||||
Demand | $ | 3,009,940 | 36.56 | % | $ | 2,202,036 | 32.16 | % | |||||
Savings | 4,227,340 | 51.36 | 3,788,089 | 55.32 | |||||||||
Time | 994,604 | 12.08 | 857,286 | 12.52 | |||||||||
Total | $ | 8,231,884 | 100.00 | % | $ | 6,847,411 | 100.00 | % |
March 31, 2023 | December 31, 2022 | Change | % Change | ||||||||||||||||||||
Securities sold under agreement to repurchase | $ | 81,641 | $ | 95,303 | $ | (13,662) | (14) | % | |||||||||||||||
Advances from the FHLB | 1,000 | 50,000 | (49,000) | (98) | |||||||||||||||||||
Advances from the federal discount window | — | 224,000 | (224,000) | (100) | |||||||||||||||||||
Other short-term borrowings | 9,696 | 6,814 | 2,882 | 42 | |||||||||||||||||||
Total | $ | 92,337 | $ | 376,117 | $ | (283,780) | (75) | % |
September 30, 2017 | December 31, 2016 | ||||||
Securities sold under agreement to repurchase | $ | 133,985 | $ | 229,555 | |||
Federal funds purchased | 2,400 | 40,200 | |||||
Advances from the FHLB | 25,000 | 30,367 | |||||
Notes payable to unaffiliated banks | 5,000 | — | |||||
Other short-term borrowings | 5,486 | 6,337 | |||||
Total | $ | 171,871 | $ | 306,459 |
March 31, 2023 | December 31, 2022 | Change | % Change | ||||||||||||||||||||
Advances from the FHLB | $ | 710 | $ | 740 | $ | (30) | (4) | % | |||||||||||||||
Trust preferred securities | 148,565 | 148,284 | 281 | — | |||||||||||||||||||
Contracts payable | 80 | 82 | (2) | (2) | |||||||||||||||||||
Subordinated notes | 222,742 | 222,647 | 95 | — | |||||||||||||||||||
Total | $ | 372,097 | $ | 371,753 | $ | 344 | — | % |
September 30, 2017 | December 31, 2016 | ||||||
Advances from the FHLB | $ | 6,771 | $ | 6,975 | |||
Wholesale repurchase agreements | 30,000 | 30,000 | |||||
Trust preferred securities | 137,222 | 115,232 | |||||
Senior notes | 11,000 | 16,000 | |||||
Note payable to unaffiliated bank | 34,667 | 37,667 | |||||
Contracts payable for purchase of real estate and other assets | 1,965 | 2,339 | |||||
Subordinated notes | 73,964 | 73,857 | |||||
Other borrowings | 5,884 | 6,464 | |||||
Total | $ | 301,473 | $ | 288,534 |
Amount Issued | Issuance Date | Interest Rate | Interest Rate as of 9/30/17(1) | Maturity Date | Callable Date | Amount Issued | Issuance Date | Interest Rate | Interest Rate as of 3/31/2023(1) | Maturity Date | Callable Date | ||||||||||||||||||||||||||||||||||||||||
Heartland Financial Statutory Trust IV | $ | 25,774 | 03/17/2004 | 2.75% over LIBOR | 4.07%(2) | 03/17/2034 | 12/17/2017 | Heartland Financial Statutory Trust IV | $ | 10,310 | 03/17/2004 | 2.75% over LIBOR | 7.66% | 03/17/2034 | 06/17/2023 | ||||||||||||||||||||||||||||||||||||
Heartland Financial Statutory Trust V | 20,619 | 01/27/2006 | 1.33% over LIBOR | 2.63%(3) | 04/07/2036 | 01/07/2018 | Heartland Financial Statutory Trust V | 20,619 | 01/27/2006 | 1.33% over LIBOR | 6.16 | 04/07/2036 | 07/07/2023 | ||||||||||||||||||||||||||||||||||||||
Heartland Financial Statutory Trust VI | 20,619 | 06/21/2007 | 1.48% over LIBOR | 2.80%(4) | 09/15/2037 | 12/15/2017 | Heartland Financial Statutory Trust VI | 20,619 | 06/21/2007 | 1.48% over LIBOR | 6.35 | 09/15/2037 | 06/15/2023 | ||||||||||||||||||||||||||||||||||||||
Heartland Financial Statutory Trust VII | 20,619 | 06/26/2007 | 1.48% over LIBOR | 2.80%(5) | 09/01/2037 | 12/01/2017 | Heartland Financial Statutory Trust VII | 18,042 | 06/26/2007 | 1.48% over LIBOR | 6.44 | 09/01/2037 | 06/01/2023 | ||||||||||||||||||||||||||||||||||||||
Morrill Statutory Trust I | 8,876 | 12/19/2002 | 3.25% over LIBOR | 4.58%(6) | 12/26/2032 | 12/26/2017 | Morrill Statutory Trust I | 9,393 | 12/19/2002 | 3.25% over LIBOR | 8.38 | 12/26/2032 | 06/26/2023 | ||||||||||||||||||||||||||||||||||||||
Morrill Statutory Trust II | 8,503 | 12/17/2003 | 2.85% over LIBOR | 4.17%(7) | 12/17/2033 | 12/17/2017 | Morrill Statutory Trust II | 9,115 | 12/17/2003 | 2.85% over LIBOR | 7.76 | 12/17/2033 | 06/17/2023 | ||||||||||||||||||||||||||||||||||||||
Sheboygan Statutory Trust I | 6,331 | 09/17/2003 | 2.95% over LIBOR | 4.27% | 09/17/2033 | 12/17/2017 | Sheboygan Statutory Trust I | 6,812 | 09/17/2003 | 2.95% over LIBOR | 7.86 | 09/17/2033 | 06/17/2023 | ||||||||||||||||||||||||||||||||||||||
CBNM Capital Trust I | 4,297 | 09/10/2004 | 3.25% over LIBOR | 4.57% | 12/15/2034 | 12/15/2017 | CBNM Capital Trust I | 4,570 | 09/10/2004 | 3.25% over LIBOR | 8.12 | 12/15/2034 | 06/15/2023 | ||||||||||||||||||||||||||||||||||||||
Citywide Capital Trust III | 6,313 | 12/19/2003 | 2.80% over LIBOR | 4.11% | 12/19/2033 | 01/23/2018 | Citywide Capital Trust III | 6,619 | 12/19/2003 | 2.80% over LIBOR | 7.60 | 12/19/2033 | 07/23/2023 | ||||||||||||||||||||||||||||||||||||||
Citywide Capital Trust IV | 4,166 | 09/30/2004 | 2.20% over LIBOR | 3.51% | 09/30/2034 | 02/23/2018 | Citywide Capital Trust IV | 4,483 | 09/30/2004 | 2.20% over LIBOR | 7.12 | 09/30/2034 | 05/23/2023 | ||||||||||||||||||||||||||||||||||||||
Citywide Capital Trust V | 11,241 | 05/31/2006 | 1.54% over LIBOR | 2.86% | 07/25/2036 | 12/15/2017 | Citywide Capital Trust V | 12,480 | 05/31/2006 | 1.54% over LIBOR | 6.41 | 07/25/2036 | 06/15/2023 | ||||||||||||||||||||||||||||||||||||||
OCGI Statutory Trust III | OCGI Statutory Trust III | 3,022 | 06/27/2002 | 3.65% over LIBOR | 8.91 | 09/30/2032 | 06/30/2023 | ||||||||||||||||||||||||||||||||||||||||||||
OCGI Capital Trust IV | OCGI Capital Trust IV | 5,525 | 09/23/2004 | 2.50% over LIBOR | 7.37 | 12/15/2034 | 06/15/2023 | ||||||||||||||||||||||||||||||||||||||||||||
BVBC Capital Trust II | BVBC Capital Trust II | 7,329 | 04/10/2003 | 3.25% over LIBOR | 8.06 | 04/24/2033 | 07/24/2023 | ||||||||||||||||||||||||||||||||||||||||||||
BVBC Capital Trust III | BVBC Capital Trust III | 9,627 | 07/29/2005 | 1.60% over LIBOR | 6.76 | 09/30/2035 | 06/30/2023 | ||||||||||||||||||||||||||||||||||||||||||||
Total trust preferred costs | Total trust preferred costs | 148,565 | |||||||||||||||||||||||||||||||||||||||||||||||||
$ | 137,358 | ||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Effective weighted average interest rate as of September 30, 2017, was 5.08% due to interest rate swap transactions on the variable rate securities as discussed in Note 7 to Heartland's consolidated financial statements included herein. | |||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Effective interest rate as of September 30, 2017, was 5.01% due to an interest rate swap transaction as discussed in Note 7 to Heartland's consolidated financial statements included herein. | |||||||||||||||||||||||||||||||||||||||||||||||||||
(3) Effective interest rate as of September 30, 2017, was 4.69% due to an interest rate swap transaction as discussed in Note 7 to Heartland's consolidated financial statements included herein. | |||||||||||||||||||||||||||||||||||||||||||||||||||
(4) Effective interest rate as of September 30, 2017, was 3.87% due to an interest rate swap transaction as discussed in Note 7 to Heartland's consolidated financial statements included herein. | |||||||||||||||||||||||||||||||||||||||||||||||||||
(5) Effective interest rate as of September 30, 2017, was 3.83% due to an interest rate swap transaction as discussed in Note 7 to Heartland's consolidated financial statements included herein. | |||||||||||||||||||||||||||||||||||||||||||||||||||
(6) Effective interest rate as of September 30, 2017, was 4.92% due to an interest rate swap transaction as discussed in Note 7 to Heartland's consolidated financial statements included herein. | |||||||||||||||||||||||||||||||||||||||||||||||||||
(7) Effective interest rate as of September 30, 2017, was 4.51% due to an interest rate swap transaction as discussed in Note 7 to Heartland's consolidated financial statements included herein. | |||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Effective weighted average interest rate as of March 31, 2023, was 7.60%. | (1) Effective weighted average interest rate as of March 31, 2023, was 7.60%. |
Total Capital (to Risk- Weighted Assets) | Tier 1 Capital (to Risk- Weighted Assets) | Common Equity Tier 1 (to Risk- Weighted Assets) | Tier 1 Capital (to Average Assets) | |||||||||||||||||||||||||||||||||||
Total Capital (to Risk- Weighted Assets) | Tier 1 Capital (to Risk- Weighted Assets) | Common Equity Tier 1 (to Risk- Weighted Assets) | Tier 1 Capital (to Average Assets) | |||||||||||||||||||||||||||||||||||
September 30, 2017 | 13.58 | % | 11.84 | % | 10.01 | % | 9.48 | % | ||||||||||||||||||||||||||||||
March 31, 2023 | March 31, 2023 | 14.98 | % | 12.02 | % | 11.28 | % | 9.25 | % | |||||||||||||||||||||||||||||
Minimum capital requirement | 8.00 | % | 6.00 | % | 4.50 | % | 4.00 | % | Minimum capital requirement | 8.00 | 6.00 | 4.50 | 4.00 | |||||||||||||||||||||||||
Well capitalized requirement | 10.00 | % | 8.00 | % | 6.50 | % | 5.00 | % | Well capitalized requirement | 10.00 | 8.00 | 6.50 | 5.00 | |||||||||||||||||||||||||
Minimum capital requirement, including fully-phased in capital conservation buffer (2019) | 10.50 | % | 8.50 | % | 7.00 | % | N/A | |||||||||||||||||||||||||||||||
Minimum capital requirement, including fully-phased in capital conservation buffer | Minimum capital requirement, including fully-phased in capital conservation buffer | 10.50 | 8.50 | 7.00 | N/A | |||||||||||||||||||||||||||||||||
Risk-weighted assets | $ | 7,517,635 | $ | 7,517,635 | $ | 7,517,635 | N/A | Risk-weighted assets | $ | 15,035,898 | $ | 15,035,898 | $ | 15,035,898 | N/A | |||||||||||||||||||||||
Average Assets | N/A | N/A | N/A | $ | 9,387,922 | |||||||||||||||||||||||||||||||||
Average assets | Average assets | N/A | N/A | N/A | $ | 19,528,724 | ||||||||||||||||||||||||||||||||
December 31, 2016 | 14.01 | % | 11.93 | % | 10.09 | % | 9.28 | % | ||||||||||||||||||||||||||||||
December 31, 2022 | December 31, 2022 | 14.76 | % | 11.81 | % | 11.07 | % | 9.13 | % | |||||||||||||||||||||||||||||
Minimum capital requirement | 8.00 | % | 6.00 | % | 4.50 | % | 4.00 | % | Minimum capital requirement | 8.00 | 6.00 | 4.50 | 4.00 | |||||||||||||||||||||||||
Well capitalized requirement | 10.00 | % | 8.00 | % | 6.50 | % | 5.00 | % | Well capitalized requirement | 10.00 | 8.00 | 6.50 | 5.00 | |||||||||||||||||||||||||
Minimum capital requirement, including fully-phased in capital conservation buffer (2019) | 10.50 | % | 8.50 | % | 7.00 | % | N/A | |||||||||||||||||||||||||||||||
Minimum capital requirement, including fully-phased in capital conservation buffer | Minimum capital requirement, including fully-phased in capital conservation buffer | 10.50 | 8.50 | 7.00 | N/A | |||||||||||||||||||||||||||||||||
Risk-weighted assets | $ | 6,335,807 | $ | 6,335,807 | $ | 6,335,807 | N/A | Risk-weighted assets | $ | 14,937,128 | $ | 14,937,128 | $ | 14,937,128 | N/A | |||||||||||||||||||||||
Average Assets | N/A | N/A | N/A | $ | 8,147,357 | |||||||||||||||||||||||||||||||||
Average assets | Average assets | N/A | N/A | N/A | $ | 19,322,778 |
As of March 31, 2023 | ||||||||||||||
Source | Outstanding | Available | ||||||||||||
Federal Reserve Discount Window | $ | — | $ | 1,604,904 | ||||||||||
Bank Term Funding Program | — | 476,925 | ||||||||||||
Federal Home Loan Bank | 1,711 | 679,588 | ||||||||||||
Federal Funds | — | 247,500 | ||||||||||||
Wholesale deposits/brokered CDs | 2,842,920 | 1,689,420 | ||||||||||||
Total | $ | 2,844,631 | $ | 4,698,337 |
2023 | 2022 | ||||||||||||||||||||||
Net Interest Margin | % Change From Base | Net Interest Margin | % Change From Base | ||||||||||||||||||||
Year 1 | |||||||||||||||||||||||
Down 100 Basis Points | $ | 632,070 | (1.32) | % | $ | 528,585 | (1.79) | % | |||||||||||||||
Base | 640,512 | — | 538,243 | — | |||||||||||||||||||
Up 200 Basis Points | 654,132 | 2.13 | 560,459 | 4.13 | |||||||||||||||||||
Year 2 | |||||||||||||||||||||||
Down 100 Basis Points | $ | 658,497 | 2.81 | % | $ | 517,169 | (3.92) | % | |||||||||||||||
Base | 688,624 | 7.51 | 557,176 | 3.52 | |||||||||||||||||||
Up 200 Basis Points | 713,149 | 11.34 | 610,213 | 13.37 |
2017 | 2016 | ||||||||||||
Net Interest Margin | % Change From Base | Net Interest Margin | % Change From Base | ||||||||||
Year 1 | |||||||||||||
Down 100 Basis Points | $ | 343,033 | (2.69 | )% | $ | 278,279 | (2.74 | )% | |||||
Base | $ | 352,502 | $ | 286,122 | |||||||||
Up 200 Basis Points | $ | 351,265 | (0.35 | )% | $ | 286,325 | 0.07 | % | |||||
Year 2 | |||||||||||||
Down 100 Basis Points | $ | 326,965 | (7.24 | )% | $ | 264,054 | (7.71 | )% | |||||
Base | $ | 354,238 | 0.49 | % | $ | 286,429 | 0.11 | % | |||||
Up 200 Basis Points | $ | 369,712 | 4.88 | % | $ | 298,565 | 4.35 | % |
(1) | ||||||||||||||
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101 | Financial statement formatted in Inline Extensible Business Reporting Language: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Cash Flows, (v) the Consolidated Statements of Changes in Equity, and (vi) the Notes to Consolidated Financial Statements. | |||||||||||||
104 | Cover page formatted in Inline Extensible Business Reporting Language |
HEARTLAND FINANCIAL USA, INC. | ||
(Registrant) | ||
(Principal Executive Officer and Duly Authorized Officer) | ||
/s/ Bryan R. McKeag | ||
By: Bryan R. McKeag | ||
Executive Vice President and Chief Financial Officer | ||
(Principal Financial Officer and Duly Authorized Officer) | ||
/s/ Janet M. Quick | ||
By: Janet M. Quick | ||
Executive Vice President and Deputy Chief Financial Officer | ||
(Principal Accounting Officer and Duly Authorized Officer) | ||
Dated: |