Delaware | 94-3327828 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
111 W. Pine Street, Lodi, California | 95240 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
None | Not Applicable | Not Applicable |
Large accelerated filer ☐ | Accelerated filer ☒ |
Non-accelerated filer ☐ | Smaller reporting company ☐ |
Emerging growth company ☐ |
PART I. - FINANCIAL INFORMATION | Page | ||
Item 1 - Financial Statements | |||
28 | |||
PART II. - OTHER INFORMATION | |||
Item 1. | Financial Statements |
(Dollars in thousands, except share and per share amounts) | September 30, 2022 | December 31, 2021 | March 31, 2023 | December 31, 2022 | ||||||||||||
ASSETS | ||||||||||||||||
Cash and due from banks | $ | 82,932 | $ | 52,499 | $ | 68,278 | $ | 73,358 | ||||||||
Interest bearing deposits with banks | 799,951 | 662,961 | 461,315 | 514,899 | ||||||||||||
Total cash and cash equivalents | 882,883 | 715,460 | 529,593 | 588,257 | ||||||||||||
Securities available-for-sale, at fair value | 177,454 | 270,454 | 118,437 | 152,864 | ||||||||||||
Securities held-to-maturity, fair value $690,922 and $725,841, respectively | 852,665 | 737,052 | ||||||||||||||
Allowance for credit losses | (393 | ) | - | |||||||||||||
Securities held-to-maturity, fair value $705,909 and $688,393 respectively | 850,387 | 845,346 | ||||||||||||||
Allowance for credit losses - securities held-to-maturity | (393 | ) | (393 | ) | ||||||||||||
Total investment securities | 1,029,726 | 1,007,506 | 968,431 | 997,817 | ||||||||||||
Non-marketable securities | 15,549 | 15,549 | 15,549 | 15,549 | ||||||||||||
Loans and leases held for investment | 3,323,862 | 3,237,177 | ||||||||||||||
Allowance for credit losses | (63,617 | ) | (61,007 | ) | ||||||||||||
Loans held for investment, net | 3,260,245 | 3,176,170 | ||||||||||||||
Loans and leases held-for-investment | 3,427,133 | 3,512,361 | ||||||||||||||
Allowance for credit losses - loans and leases | (68,573 | ) | (66,885 | ) | ||||||||||||
Loans held-for-investment, net | 3,358,560 | 3,445,476 | ||||||||||||||
Bank-owned life insurance | 72,566 | 71,411 | 66,076 | 73,038 | ||||||||||||
Premises and equipment, net | 49,183 | 47,730 | 50,423 | 49,476 | ||||||||||||
Deferred income tax assets | 34,411 | 25,542 | 29,427 | 31,507 | ||||||||||||
Accrued interest receivable | 20,069 | 18,098 | 16,818 | 21,602 | ||||||||||||
Goodwill | 11,183 | 11,183 | 11,183 | 11,183 | ||||||||||||
Other intangibles | 2,957 | 3,402 | 2,666 | 2,809 | ||||||||||||
Other real estate owned | 873 | 873 | 873 | 873 | ||||||||||||
Other assets | 87,136 | 84,796 | 84,172 | 89,812 | ||||||||||||
TOTAL ASSETS | $ | 5,466,781 | $ | 5,177,720 | $ | 5,133,771 | $ | 5,327,399 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||
Deposits: | ||||||||||||||||
Non-interest bearing | $ | 1,802,623 | $ | 1,750,330 | $ | 1,551,906 | $ | 1,758,793 | ||||||||
Interest bearing: | ||||||||||||||||
Demand | 1,158,588 | 1,097,337 | 985,088 | 1,125,014 | ||||||||||||
Savings and money market | 1,587,662 | 1,400,000 | 1,616,038 | 1,544,062 | ||||||||||||
Certificates of deposit | 360,384 | 392,485 | 386,130 | 331,400 | ||||||||||||
Total interest bearing | 3,106,634 | 2,889,822 | 2,987,256 | 3,000,476 | ||||||||||||
Total deposits | 4,909,257 | 4,640,152 | 4,539,162 | 4,759,269 | ||||||||||||
Subordinated debentures | 10,310 | 10,310 | 10,310 | 10,310 | ||||||||||||
Interest payable and other liabilities | 79,036 | 64,122 | 75,397 | 72,512 | ||||||||||||
TOTAL LIABILITIES | 4,998,603 | 4,714,584 | 4,624,869 | 4,842,091 | ||||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||||||
Preferred shares, no par value, 1,000,000 shares authorized and, none issued or outstanding | - | - | - | - | ||||||||||||
Common shares, $0.01 par value, 7,500,000 authorized 770,822 and 789,646 outstanding at September 30, 2022 and December 31, 2021, respectively | 8 | 8 | ||||||||||||||
Additional paid-in capital | 59,611 | 77,516 | ||||||||||||||
Common shares, $0.01 par value, 7,500,000 authorized 762,931 and 768,337 outstanding at March 31, 2023 and December 31, 2022, respectively | 8 | 8 | ||||||||||||||
Additional paid in capital | 51,615 | 57,206 | ||||||||||||||
Retained earnings | 436,258 | 387,331 | 473,479 | 449,932 | ||||||||||||
Accumulated other comprehensive (loss) / income, net of taxes | (27,699 | ) | (1,719 | ) | ||||||||||||
Accumulated other comprehensive (loss), net of taxes | (16,200 | ) | (21,838 | ) | ||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | 468,178 | 463,136 | 508,902 | 485,308 | ||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 5,466,781 | $ | 5,177,720 | $ | 5,133,771 | $ | 5,327,399 |
Three Months Ended March 31, | ||||||||
(Dollars in thousands, except share and per share amounts) | 2023 | 2022 | ||||||
Interest income | ||||||||
Interest and fees on loans and leases | $ | 48,008 | $ | 37,433 | ||||
Interest and dividends on investment securities | 5,663 | 5,295 | ||||||
Interest on deposits with others | 5,961 | 366 | ||||||
Total interest income | 59,632 | 43,094 | ||||||
Interest expense | ||||||||
Deposits | 3,714 | 803 | ||||||
Subordinated debentures | 196 | 82 | ||||||
Total interest expense | 3,910 | 885 | ||||||
Net interest income | 55,722 | 42,209 | ||||||
Provision for credit losses | 1,500 | - | ||||||
Net interest income after provision for credit losses | 54,222 | 42,209 | ||||||
Non-interest income | ||||||||
Card processing | 1,591 | 1,737 | ||||||
Service charges on deposit accounts | 634 | 850 | ||||||
Increase in cash surrender value of BOLI | 444 | 542 | ||||||
Gain on BOLI death benefit | 4,346 | - | ||||||
Net loss on sale of securities available-for-sale | (5,686 | ) | - | |||||
Net gain on deferred compensation benefits | 896 | 412 | ||||||
Other | 1,235 | 771 | ||||||
Total non-interest income | 3,460 | 4,312 | ||||||
Non-interest expense | ||||||||
Salaries and employee benefits | 19,584 | 16,784 | ||||||
Net gain on deferred compensation benefits | 896 | 412 | ||||||
Occupancy | 1,180 | 1,154 | ||||||
Data processing | 1,260 | 1,215 | ||||||
FDIC insurance | 611 | 349 | ||||||
Marketing | 470 | 316 | ||||||
Legal | 260 | 279 | ||||||
Other | 3,922 | 3,279 | ||||||
Total non-interest expense | 28,183 | 23,788 | ||||||
INCOME BEFORE INCOME TAXES | 29,499 | 22,733 | ||||||
Income tax expense | 5,952 | 5,675 | ||||||
NET INCOME | $ | 23,547 | $ | 17,058 | ||||
Earnings per common share: | ||||||||
Basic | $ | 30.80 | $ | 21.70 | ||||
Diluted | $ | 30.80 | $ | 21.70 | ||||
Weighted average number of common shares | ||||||||
Basic | 764,603 | 786,096 | ||||||
Diluted | 764,603 | 786,096 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(Dollars in thousands, except share and per share amounts) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Interest income | ||||||||||||||||
Interest and fees on loans and leases | $ | 41,868 | $ | 36,088 | $ | 117,871 | $ | 109,839 | ||||||||
Interest and dividends on investments | 5,686 | 3,925 | 16,697 | 12,664 | ||||||||||||
Interest on deposits with others | 4,159 | 328 | 5,934 | 595 | ||||||||||||
Total interest income | 51,713 | 40,341 | 140,502 | 123,098 | ||||||||||||
Interest expense | ||||||||||||||||
Deposits | 1,122 | 929 | 2,798 | 3,200 | ||||||||||||
Subordinated debentures | 134 | 78 | 319 | 236 | ||||||||||||
Total interest expense | 1,256 | 1,007 | 3,117 | 3,436 | ||||||||||||
Net interest income | 50,457 | 39,334 | 137,385 | 119,662 | ||||||||||||
Provision for credit losses | 1,500 | - | 3,000 | 1,250 | ||||||||||||
Net interest income after provision for credit losses | 48,957 | 39,334 | 134,385 | 118,412 | ||||||||||||
Non-interest income | ||||||||||||||||
Card processing | 1,791 | 1,788 | 5,375 | 5,173 | ||||||||||||
Service charges on deposit accounts | 638 | 808 | 2,318 | 2,125 | ||||||||||||
Increase in cash surrender value of BOLI | 566 | 549 | 1,668 | 1,616 | ||||||||||||
Net (loss)/gain on sale of investment securities available-for-sale | (2,987 | ) | - | (2,985 | ) | 2,554 | ||||||||||
Net gain/(loss) on deferred compensation benefits | 352 | 615 | (227 | ) | 1,828 | |||||||||||
Other | 1,199 | 857 | 3,234 | 2,996 | ||||||||||||
Total non-interest income | 1,559 | 4,617 | 9,383 | 16,292 | ||||||||||||
Non-interest expense | ||||||||||||||||
Salaries and employee benefits | 15,994 | 14,453 | 49,181 | 47,375 | ||||||||||||
Net gain/(loss) on deferred compensation benefits | 352 | 615 | (227 | ) | 1,828 | |||||||||||
Occupancy | 1,196 | 1,145 | 3,500 | 3,554 | ||||||||||||
Data Processing | 1,250 | 1,251 | 3,698 | 3,688 | ||||||||||||
FDIC insurance | 366 | 317 | 1,076 | 902 | ||||||||||||
Marketing | 303 | 63 | 959 | 669 | ||||||||||||
Legal | 49 | 85 | 733 | 485 | ||||||||||||
Other | 4,865 | 2,656 | 12,274 | 9,231 | ||||||||||||
Total non-interest expense | 24,375 | 20,585 | 71,194 | 67,732 | ||||||||||||
INCOME BEFORE INCOME TAXES | 26,141 | 23,366 | 72,574 | 66,972 | ||||||||||||
Income tax expense | 6,605 | 5,864 | 17,537 | 16,604 | ||||||||||||
NET INCOME | $ | 19,536 | $ | 17,502 | $ | 55,037 | $ | 50,368 | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 25.20 | $ | 22.16 | $ | 70.47 | $ | 63.79 | ||||||||
Diluted | $ | 25.20 | $ | 22.16 | $ | 70.47 | $ | 63.79 | ||||||||
Weighted average number of common shares | ||||||||||||||||
Basic | 775,109 | 789,646 | 780,988 | 789,646 | ||||||||||||
Diluted | 775,109 | 789,646 | 780,988 | 789,646 |
Three Months Ended March 31, | ||||||||
(Dollars in thousands) | 2023 | 2022 | ||||||
Net income | $ | 23,547 | $ | 17,058 | ||||
Other comprehensive income | ||||||||
Unrealized holding gains/(losses) on available-for-sale securities | 2,362 | (15,865 | ) | |||||
Reclassification adjustment for losses on available-for-sale securities | 5,685 | - | ||||||
Amortization of unrealized loss on securities transferred to held-to-maturity | (30 | ) | (77 | ) | ||||
Net unrealized holding gains/(losses) on available-for-sale securities | 8,017 | (15,942 | ) | |||||
Income tax (expense)/benefit | (2,379 | ) | 4,713 | |||||
Other comprehensive income/(loss), net of tax | 5,638 | (11,229 | ) | |||||
Total comprehensive income | $ | 29,185 | $ | 5,829 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Net income | $ | 19,536 | $ | 17,502 | $ | 55,037 | $ | 50,368 | ||||||||
Other comprehensive income | ||||||||||||||||
Unrealized holding (losses)/gains on securities available-for-sale | (12,378 | ) | (2,237 | ) | (39,677 | ) | (16,846 | ) | ||||||||
Reclassification adjustment for (gains)/losses on available-for-sale securities | 2,987 | - | 2,985 | (2,554 | ) | |||||||||||
Amortization of unrealized loss on securities transferred to held-to-maturity | (52 | ) | (135 | ) | (193 | ) | (373 | ) | ||||||||
Net unrealized holding (losses)/gains on securities available-for-sale | (9,443 | ) | (2,372 | ) | (36,885 | ) | (19,773 | ) | ||||||||
Income tax benefit/(expense) | 2,792 | 702 | 10,905 | 5,846 | ||||||||||||
Other comprehensive (loss)/income, net of tax | (6,651 | ) | (1,670 | ) | (25,980 | ) | (13,927 | ) | ||||||||
Total comprehensive income | $ | 12,885 | $ | 15,832 | $ | 29,057 | $ | 36,441 |
For the three months ended March 31, 2023 and 2022 | ||||||||||||||||||||||||
(Dollars in thousands, except share amounts) | Common Shares | Amount | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Total | ||||||||||||||||||
Balance as of December 31, 2021 | 789,646 | $ | 8 | $ | 77,516 | $ | 387,331 | $ | (1,719 | ) | $ | 463,136 | ||||||||||||
Net income | - | - | - | 17,058 | - | 17,058 | ||||||||||||||||||
Other comprehensive (loss), net of tax | - | - | - | - | (11,229 | ) | (11,229 | ) | ||||||||||||||||
Repurchase of common stock | (4,500 | ) | - | (4,252 | ) | - | - | (4,252 | ) | |||||||||||||||
Balance as of March 31, 2022 | 785,146 | $ | 8 | $ | 73,264 | $ | 404,389 | $ | (12,948 | ) | $ | 464,713 | ||||||||||||
Balance as of December 31, 2022 | 768,337 | $ | 8 | $ | 57,206 | $ | 449,932 | $ | (21,838 | ) | $ | 485,308 | ||||||||||||
Net income | - | - | - | 23,547 | - | 23,547 | ||||||||||||||||||
Other comprehensive income, net of tax | - | - | - | - | 5,638 | 5,638 | ||||||||||||||||||
Repurchase of common stock | (5,406 | ) | - | (5,591 | ) | - | - | (5,591 | ) | |||||||||||||||
Balance as of March 31, 2023 | 762,931 | $ | 8 | $ | 51,615 | $ | 473,479 | $ | (16,200 | ) | $ | 508,902 |
(Dollars in thousands, except share and per share amounts) | Common Shares | Amount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss)/Income | Total | ||||||||||||||||||
Balance as of July 1, 2022 | 777,190 | $ | 8 | $ | 65,671 | $ | 416,722 | $ | (21,048 | ) | $ | 461,353 | ||||||||||||
Net income | - | - | - | 19,536 | - | 19,536 | ||||||||||||||||||
Other comprehensive loss, net of tax | - | - | - | - | (6,651 | ) | (6,651 | ) | ||||||||||||||||
Repurchase of common stock | (6,368 | ) | - | (6,060 | ) | - | - | (6,060 | ) | |||||||||||||||
Balance as of September 30, 2022 | 770,822 | $ | 8 | $ | 59,611 | $ | 436,258 | $ | (27,699 | ) | $ | 468,178 | ||||||||||||
Balance as of July 1, 2021 | 789,646 | $ | 8 | $ | 77,516 | $ | 360,021 | $ | 814 | $ | 438,359 | |||||||||||||
Net income | - | - | - | 17,502 | - | 17,502 | ||||||||||||||||||
Other comprehensive loss, net of tax | - | - | - | - | (1,670 | ) | (1,670 | ) | ||||||||||||||||
Balance as of September 30, 2021 | 789,646 | $ | 8 | $ | 77,516 | $ | 377,523 | $ | (856 | ) | $ | 454,191 |
(Dollars in thousands, except share and per share amounts) | Common Shares | Amount | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss)/Income | Total | ||||||||||||||||||
Balance as of January 1, 2022 | 789,646 | $ | 8 | $ | 77,516 | $ | 387,331 | $ | (1,719 | ) | $ | 463,136 | ||||||||||||
Net income | - | - | - | 55,037 | - | 55,037 | ||||||||||||||||||
Other comprehensive loss, net of tax | - | - | - | - | (25,980 | ) | (25,980 | ) | ||||||||||||||||
Cash dividends declared ($7.85 per share) | - | - | - | (6,110 | ) | - | (6,110 | ) | ||||||||||||||||
Repurchase of common stock | (18,824 | ) | - | (17,905 | ) | - | - | (17,905 | ) | |||||||||||||||
Balance as of September 30, 2022 | 770,822 | $ | 8 | $ | 59,611 | $ | 436,258 | $ | (27,699 | ) | $ | 468,178 | ||||||||||||
Balance as of January 1, 2021 | 789,646 | $ | 8 | $ | 77,516 | $ | 333,070 | $ | 13,071 | $ | 423,665 | |||||||||||||
Net income | - | - | - | 50,368 | - | 50,368 | ||||||||||||||||||
Other comprehensive loss, net of tax | - | - | - | - | (13,927 | ) | (13,927 | ) | ||||||||||||||||
Cash dividends declared ($7.50 per share) | - | - | - | (5,922 | ) | - | (5,922 | ) | ||||||||||||||||
Cash dividends returned | - | - | - | 7 | - | 7 | ||||||||||||||||||
Balance as of September 30, 2021 | 789,646 | $ | 8 | $ | 77,516 | $ | 377,523 | $ | (856 | ) | $ | 454,191 |
Three Months Ended March 31, | ||||||||
(Dollars in thousands) | 2023 | 2022 | ||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 23,547 | $ | 17,058 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Provision for credit losses | 1,500 | - | ||||||
Depreciation and amortization | 596 | 656 | ||||||
Net amortization of securities premiums and discounts | 33 | 176 | ||||||
Increase in cash surrender value of BOLI | (444 | ) | (542 | ) | ||||
Gain on BOLI death benefit | (4,346 | ) | - | |||||
Decrease /(increase) in deferred income taxes, net | 3,933 | (113 | ) | |||||
Loss on sale of securities available-for-sale | 5,686 | - | ||||||
Net changes in: | ||||||||
Other assets | 6,307 | 4,709 | ||||||
Other liabilities | 4,864 | 6,966 | ||||||
Net cash provided by operating activities | 41,676 | 28,910 | ||||||
Cash flows from investing activities: | ||||||||
Net change in loans held-for-investment | 70,927 | (374 | ) | |||||
Purchase of available-for-sale securities | (3,585 | ) | (10,067 | ) | ||||
Purchase of held-to-maturity securities | (1,350 | ) | (118,162 | ) | ||||
Proceeds from sales, maturities, calls and pay downs of available-for-sale securities | 40,348 | 13,097 | ||||||
Proceeds from maturities, calls and pay downs of held-to-maturity securities | 10,817 | 19,516 | ||||||
Purchase of premises and equipment | (1,543 | ) | (363 | ) | ||||
Purchase of other investments | (2,008 | ) | - | |||||
Proceeds from bank-owned life insurance | 11,752 | - | ||||||
Proceeds from sale of assets | - | 34 | ||||||
Net cash provided (used in) by investing activities | 125,358 | (96,319 | ) | |||||
Cash flows from financing activities: | ||||||||
Net (decrease) increase in deposits | (220,107 | ) | 197,287 | |||||
Net cash used in share repurchase of common stock | (5,591 | ) | (4,252 | ) | ||||
Net cash (used in) provided by financing activities | (225,698 | ) | 193,035 | |||||
Net change in cash and cash equivalents | (58,664 | ) | 125,626 | |||||
Cash and cash equivalents, beginning of period | 588,257 | 715,460 | ||||||
Cash and cash equivalents, end of period | $ | 529,593 | $ | 841,086 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid for interest | $ | 3,389 | $ | 951 | ||||
Income Taxes Paid | $ | 1 | $ | - | ||||
Supplemental disclosures of non-cash transactions: | ||||||||
Security purchases settled in subsequent period | $ | - | $ | (40,626 | ) | |||
Unrealized gain/(losses) on securities available-for-sale | $ | 8,048 | $ | (15,865 | ) |
Nine Months Ended September 30, | ||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 55,037 | $ | 50,368 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Provision for credit losses | 3,000 | 1,250 | ||||||
Depreciation and amortization | 1,849 | 1,971 | ||||||
Net amortization of securities premiums and discounts | 341 | 1,133 | ||||||
Increase in cash surrender value of BOLI | (1,666 | ) | (1,616 | ) | ||||
Decrease /(increase) in deferred income taxes, net | 2,356 | (456 | ) | |||||
Loss/(gains) on sale of securities available-for-sale | 2,985 | (2,554 | ) | |||||
Net changes in: | ||||||||
Other assets | (2,362 | ) | (8,772 | ) | ||||
Other liabilities | 18,134 | 10,738 | ||||||
Net cash provided by operating activities | 79,674 | 52,062 | ||||||
Cash flows from investing activities: | ||||||||
Net change in loans held for investment | (86,401 | ) | (39,956 | ) | ||||
Purchase of available-for-sale securities | (10,135 | ) | (257,228 | ) | ||||
Purchase of held-to-maturity securities | (168,634 | ) | (194,332 | ) | ||||
Proceeds from sales, maturities, calls and pay downs of available-for-sale securities | 62,979 | 397,454 | ||||||
Proceeds from maturities, calls and pay downs of held-to-maturity securities | 52,884 | 29,042 | ||||||
Purchase of premises and equipment | (3,318 | ) | (1,001 | ) | ||||
Purchase of other investments | (5,300 | ) | (4,516 | ) | ||||
Redemption of other investments | - | 2,556 | ||||||
Proceeds from bank-owned life insurance | 511 | - | ||||||
Proceeds from sale of assets | 73 | 635 | ||||||
Net cash used in investing activities | (157,341 | ) | (67,346 | ) | ||||
Cash flows from financing activities: | ||||||||
Net increase in deposits | 269,105 | 508,127 | ||||||
Cash dividends paid | (6,110 | ) | (5,915 | ) | ||||
Net cash used in share repurchase of common stock | (17,905 | ) | - | |||||
Net provided by financing activities | 245,090 | 502,212 | ||||||
Net change in cash and cash equivalents | 167,423 | 486,928 | ||||||
Cash and cash equivalents, beginning of period | 715,460 | 383,837 | ||||||
Cash and cash equivalents, end of period | $ | 882,883 | $ | 870,765 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid for interest | $ | 3,832 | $ | 4,369 | ||||
Income taxes paid | $ | 11,451 | $ | 22,530 | ||||
Supplemental disclosures of non-cash transactions: | ||||||||
Investment securities available-for-sale transferred to held-to-maturity | $ | - | $ | 316,925 | ||||
Lease Liabilities Arising from Obtaining Right-of-Use Assets | $ | - | $ | 302 |
January-2022 | ||||||||||||
(Dollars in thousands) | Reported under ASC 326 | Reported Pre- Adoption | Impact of ASC 326 Adoption | |||||||||
Allowance for credit losses: | ||||||||||||
Real estate: | ||||||||||||
Commercial | $ | (17,379 | ) | $ | (28,536 | ) | $ | 11,157 | ||||
Agricultural | (14,580 | ) | (9,613 | ) | (4,967 | ) | ||||||
Residential and home equity | (5,879 | ) | (2,847 | ) | (3,032 | ) | ||||||
Construction | (3,311 | ) | (1,456 | ) | (1,855 | ) | ||||||
Total real estate | (41,149 | ) | (42,452 | ) | 1,303 | |||||||
Commercial & industrial | (11,417 | ) | (11,489 | ) | 72 | |||||||
Agricultural | (6,363 | ) | (5,465 | ) | (898 | ) | ||||||
Commercial leases | (1,567 | ) | (938 | ) | (629 | ) | ||||||
Consumer and other | (511 | ) | (663 | ) | 152 | |||||||
Total allowance for credit losses | $ | (61,007 | ) | $ | (61,007 | ) | $ | - |
Available-for-Sale Securities | Gross Unrealized | Gross Unrealized | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Gains | Losses | Fair Value | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||||||||||||||
As of September 30, 2022 | ||||||||||||||||||||||||||||||||
U.S. Treasury notes | $ | 4,979 | $ | - | $ | 38 | $ | 4,941 | ||||||||||||||||||||||||
As of March 31, 2023 | ||||||||||||||||||||||||||||||||
U.S. Government-sponsored securities | 4,695 | 27 | 24 | 4,698 | $ | 4,117 | $ | 18 | $ | 23 | $ | 4,112 | ||||||||||||||||||||
Mortgage-backed securities (1) | 194,600 | 16 | 38,163 | 156,453 | 125,610 | 41 | 21,954 | 103,697 | ||||||||||||||||||||||||
Collateralized mortgage obligations (1) | 1,499 | - | 41 | 1,458 | 620 | - | 13 | 607 | ||||||||||||||||||||||||
Corporate securities | 10,046 | - | 452 | 9,594 | 10,041 | - | 330 | 9,711 | ||||||||||||||||||||||||
Other | 310 | - | - | 310 | 310 | - | - | 310 | ||||||||||||||||||||||||
Total available-for-sale securities | $ | 216,129 | $ | 43 | $ | 38,718 | $ | 177,454 | $ | 140,698 | $ | 59 | $ | 22,320 | $ | 118,437 |
Gross Unrealized | ||||||||||||||||||||||||||||||||
Available-for-Sale Securities | Gross Unrealized | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Gains | Losses | Fair Value | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||||||||||||||
As of December 31, 2021 | ||||||||||||||||||||||||||||||||
As of December 31, 2022 | ||||||||||||||||||||||||||||||||
U.S. Treasury notes | $ | 9,938 | $ | 151 | $ | - | $ | 10,089 | $ | 4,989 | $ | - | $ | 25 | $ | 4,964 | ||||||||||||||||
U.S. Government-sponsored securities | 6,351 | 62 | 39 | 6,374 | 4,430 | | 21 | | 24 | 4,427 | ||||||||||||||||||||||
Mortgage-backed securities (1) | 253,300 | 3,200 | 5,380 | 251,120 | 162,314 | 9 | 29,795 | 132,528 | ||||||||||||||||||||||||
Collateralized mortgage obligations (1) | 2,412 | 24 | - | 2,436 | 1,085 | - | 31 | 1,054 | ||||||||||||||||||||||||
Corporate securities | 10,043 | - | 462 | 9,581 | ||||||||||||||||||||||||||||
Other | 435 | - | - | 435 | 310 | - | - | 310 | ||||||||||||||||||||||||
Total available-for-sale securities | $ | 272,436 | $ | 3,437 | $ | 5,419 | $ | 270,454 | $ | 183,171 | $ | 30 | $ | 30,337 | $ | 152,864 |
Held-to-Maturity Securities | Gross Unrealized | |||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Gains | Losses | Fair Value | Allowance for Credit Losses | |||||||||||||||
As of September 30, 2022 | ||||||||||||||||||||
Municipal securities | $ | 60,827 | $ | - | $ | 735 | $ | 60,092 | $ | 393 | ||||||||||
Mortgage-backed securities (1) | 709,541 | - | 145,836 | 563,705 | - | |||||||||||||||
Collateralized mortgage obligations (1) | 82,297 | - | 15,172 | 67,125 | - | |||||||||||||||
Total held-to-maturity securities | $ | 852,665 | $ | - | $ | 161,743 | $ | 690,922 | $ | 393 |
Held-to-Maturity Securities | Gross Unrealized | |||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Gains | Losses | Fair Value | Allowance for Credit Losses | |||||||||||||||
As of March 31, 2023 | ||||||||||||||||||||
Municipal securities | $ | 76,260 | $ | 98 | $ | 96 | $ | 76,262 | $ | 393 | ||||||||||
Mortgage-backed securities (1) | 695,083 | 59 | 130,405 | 564,737 | - | |||||||||||||||
Collateralized mortgage obligations (1) | 79,044 | - | 14,134 | 64,910 | - | |||||||||||||||
Total held-to-maturity securities | $ | 850,387 | $ | 157 | $ | 144,635 | $ | 705,909 | $ | 393 |
Held-to-Maturity Securities | Gross Unrealized | |||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Gains | Losses | Fair Value | Allowance for Credit Losses | |||||||||||||||
As of December 31, 2022 | ||||||||||||||||||||
Municipal securities | $ | 62,302 | $ | 49 | $ | 209 | $ | 62,142 | $ | 393 | ||||||||||
Mortgage-backed securities (1) | 702,858 | 29 | 141,121 | 561,766 | - | |||||||||||||||
Collateralized mortgage obligations (1) | 80,186 | - | 15,701 | 64,485 | - | |||||||||||||||
Total held-to-maturity securities | $ | 845,346 | $ | 78 | $ | 157,031 | $ | 688,393 | $ | 393 |
Gross Unrealized | ||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Gains | Losses | Fair Value | Allowance for Credit Losses | |||||||||||||||
As of December 31, 2021 | ||||||||||||||||||||
Municipal securities | $ | 66,496 | $ | 701 | $ | - | $ | 67,197 | $ | - | ||||||||||
Mortgage-backed securities(1) | 596,775 | 45 | 11,764 | 585,056 | - | |||||||||||||||
Collateralized mortgage obligations(1) | 73,781 | 36 | 229 | 73,588 | - | |||||||||||||||
Total held-to-maturity securities | $ | 737,052 | $ | 782 | $ | 11,993 | $ | 725,841 | $ | - |
Available-for-Sale Securities | As of September 30, 2022 | |||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
As of September 30, 2022 | ||||||||||||||||||||||||
U.S. Treasury notes | $ | 4,941 | $ | 38 | $ | - | $ | - | $ | 4,941 | $ | 38 | ||||||||||||
U.S. Government-sponsored securities | 128 | 1 | 1,409 | 23 | 1,537 | 24 | ||||||||||||||||||
Mortgage-backed securities (1) | 37,141 | 1,928 | 117,680 | 36,235 | 154,821 | 38,163 | ||||||||||||||||||
Collateralized mortgage obligations (1) | 1,458 | 41 | - | - | 1,458 | 41 | ||||||||||||||||||
Corporate securities | 9,594 | 452 | - | - | 9,594 | 452 | ||||||||||||||||||
Total available-for-sale securities | $ | 53,262 | $ | 2,460 | $ | 119,089 | $ | 36,258 | $ | 172,351 | $ | 38,718 |
Available-for-Sale Securities | March 31, 2023 | |||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
As of March 31, 2023 | ||||||||||||||||||||||||
U.S. Government-sponsored securities | $ | 330 | $ | 1 | $ | 1,246 | $ | 22 | $ | 1,576 | $ | 23 | ||||||||||||
Mortgage-backed securities(1) | 12,450 | 343 | 86,844 | 21,611 | 99,294 | 21,954 | ||||||||||||||||||
Collateralized mortgage obligations(1) | - | - | 607 | 13 | 607 | 13 | ||||||||||||||||||
Corporate securities | - | - | 9,711 | 330 | 9,711 | 330 | ||||||||||||||||||
Total available-for-sale securities | $ | 12,780 | $ | 344 | $ | 98,408 | $ | 21,976 | $ | 111,188 | $ | 22,320 |
As of December 31, 2021 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
As of December 31, 2021 | ||||||||||||||||||||||||
U.S. Government-sponsored securities | $ | 183 | $ | - | $ | 2,007 | $ | 39 | $ | 2,190 | $ | 39 | ||||||||||||
Mortgage-backed securities (1) | 61,469 | 1,192 | 104,489 | 4,188 | 165,958 | 5,380 | ||||||||||||||||||
Total available-for-sale securities | $ | 61,652 | $ | 1,192 | $ | 106,496 | $ | 4,227 | $ | 168,148 | $ | 5,419 |
Available-for-Sale Securities | December 31, 2022 | |||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
As of December 31, 2022 | ||||||||||||||||||||||||
U.S. Treasury notes | $ | 4,964 | $ | 25 | $ | - | $ | - | $ | 4,964 | $ | 25 | ||||||||||||
U.S. Government-sponsored securities | 378 | 1 | 1,326 | 23 | 1,704 | 24 | ||||||||||||||||||
Mortgage-backed securities(1) | 35,117 | 1,639 | 96,589 | 28,156 | 131,706 | 29,795 | ||||||||||||||||||
Collateralized Mortgage Obligations(1) | 1,054 | 31 | - | - | 1,054 | 31 | ||||||||||||||||||
Corporate securities | - | - | 9,581 | 462 | 9,581 | 462 | ||||||||||||||||||
Total available-for-sale securities | $ | 41,513 | $ | 1,696 | $ | 107,496 | $ | 28,641 | $ | 149,009 | $ | 30,337 |
March 31, 2023 | ||||||||||||||||
(Dollars in thousands) | Municipal securities | Mortgage- backed securities | Collateralized Mortgage obligations | Total | ||||||||||||
Allowance for credit losses - securities | ||||||||||||||||
Beginning Balance | $ | 393 | $ | - | $ | - | $ | 393 | ||||||||
Provision for credit losses | - | - | - | - | ||||||||||||
Ending Balance | $ | 393 | $ | - | $ | - | $ | 393 |
For the Nine Months Ended September 30, 2022 | ||||||||||||||||
(Dollars in thousands) | Municipal securities | Mortgage-backed securities | Collateralized Mortgage obligations | Total | ||||||||||||
Allowance for credit losses - securities | ||||||||||||||||
Beginning Balance | $ | - | $ | - | $ | - | $ | - | ||||||||
Provision for credit losses | 393 | - | - | 393 | ||||||||||||
Ending Balance | $ | 393 | $ | - | $ | - | $ | 393 |
December 31, 2022 | ||||||||||||||||
(Dollars in thousands) | Municipal securities | Mortgage- backed securities | Collateralized Mortgage obligations | Total | ||||||||||||
Allowance for credit losses - securities | ||||||||||||||||
Beginning Balance | $ | 393 | $ | - | $ | - | $ | 393 | ||||||||
Provision for credit losses | - | - | - | - | ||||||||||||
Ending Balance | $ | 393 | $ | - | $ | - | $ | 393 |
Available-for-Sale | Held-to-Maturity | |||||||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
Securities maturing in: | ||||||||||||||||
One year or less | $ | 335 | $ | 335 | $ | 283 | $ | 283 | ||||||||
After one year through five years | 19,386 | 18,756 | 11,174 | 11,155 | ||||||||||||
After five years through ten years | 6,114 | 5,913 | 30,348 | 28,835 | ||||||||||||
After ten years | 114,863 | 93,433 | 808,582 | 665,636 | ||||||||||||
Total | $ | 140,698 | $ | 118,437 | $ | 850,387 | $ | 705,909 |
Available-for-Sale | Held-to-Maturity | |||||||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
Securities maturing in: | ||||||||||||||||
One year or less | $ | 5,312 | $ | 5,274 | $ | 883 | $ | 883 | ||||||||
After one year through five years | 21,418 | 20,600 | 7,484 | 7,324 | ||||||||||||
After five years through ten years | 25,492 | 23,196 | 28,907 | 26,852 | ||||||||||||
After ten years | 163,907 | 128,384 | 815,391 | 655,863 | ||||||||||||
Total | $ | 216,129 | $ | 177,454 | $ | 852,665 | $ | 690,922 |
Held-to-Maturity | ||||||||||||||||
Amortized Cost | ||||||||||||||||
(Dollars in thousands) | AAA/AA/A | BBB/BB/B | Not Rated | Total | ||||||||||||
March 31, 2023 | ||||||||||||||||
Municipal securities | $ | 19,380 | $ | 390 | $ | 56,490 | $ | 76,260 | ||||||||
Total | $ | 19,380 | $ | 390 | $ | 56,490 | $ | 76,260 |
Available-for-Sale | Held-to-Maturity | |||||||||||||||||||||||
Fair Value | Amortized Cost | |||||||||||||||||||||||
(Dollars in thousands) | AAA/AA/A | BBB/BB/B | Not Rated | AAA/AA/A | BBB/BB/B | Not Rated | ||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||
Breakdown by Category: | ||||||||||||||||||||||||
U.S. Treasury notes | $ | 4,941 | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
U.S. Government-sponsored securities | - | - | 4,698 | - | - | - | ||||||||||||||||||
Mortgage-backed securities (1) | - | - | 156,453 | - | - | 709,541 | ||||||||||||||||||
Collateralized mortgage obligations (1) | - | - | 1,458 | - | - | 82,297 | ||||||||||||||||||
Municipal securities | - | - | - | 18,025 | 386 | 42,416 | ||||||||||||||||||
Corporate securities | 4,795 | 4,799 | - | - | - | - | ||||||||||||||||||
Other | - | - | 310 | - | - | - | ||||||||||||||||||
Total Investment Grade | $ | 9,736 | $ | 4,799 | $ | 162,919 | $ | 18,025 | $ | 386 | $ | 834,254 |
(Dollars in thousands) | Gross Proceeds | Gross Gains | Gross Losses | |||||||||
Nine months ended September 30, 2022 | $ | 31,394 | $ | 2 | $ | 2,987 | ||||||
Nine months ended September 30, 2021 | $ | 301,320 | $ | 5,570 | $ | 3,016 |
(Dollars in thousands) | Gross Proceeds | Gross Gains | Gross Losses | |||||||||
Three months ended March 31, 2023 | $ | 30,482 | $ | - | $ | 5,686 | ||||||
Three months ended March 31, 2022 | $ | 2,190 | $ | - | $ | - |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | March 31, 2023 | December 31, 2022 | ||||||||||||
Loans and leases held for investment, net | ||||||||||||||||
Loans and leases held-for-investment, net | ||||||||||||||||
Real estate: | ||||||||||||||||
Commercial | $ | 1,246,805 | $ | 1,167,516 | $ | 1,312,745 | $ | 1,328,691 | ||||||||
Agricultural | 722,448 | 672,830 | 707,412 | 726,938 | ||||||||||||
Residential and home equity | 377,249 | 350,581 | 387,370 | 387,753 | ||||||||||||
Construction | 169,624 | 177,163 | 153,394 | 166,538 | ||||||||||||
Total real estate | 2,516,126 | 2,368,090 | 2,560,921 | 2,609,920 | ||||||||||||
Commercial & industrial | 454,185 | 427,799 | 472,189 | 478,758 | ||||||||||||
Agricultural | 260,296 | 276,684 | 275,785 | 314,525 | ||||||||||||
Commercial leases | 94,089 | 96,971 | 123,314 | 112,629 | ||||||||||||
Consumer and other | 7,776 | 78,367 | 5,382 | 5,886 | ||||||||||||
Total gross loans and leases | 3,332,472 | 3,247,911 | 3,437,591 | 3,521,718 | ||||||||||||
Unearned income | (8,610 | ) | (10,734 | ) | (10,458 | ) | (9,357 | ) | ||||||||
Total net loans and leases | 3,323,862 | 3,237,177 | 3,427,133 | 3,512,361 | ||||||||||||
Allowance for credit losses | (63,617 | ) | (61,007 | ) | (68,573 | ) | (66,885 | ) | ||||||||
Total loans and leases held for investment, net | $ | 3,260,245 | $ | 3,176,170 | ||||||||||||
Total loans and leases held-for-investment, net | $ | 3,358,560 | $ | 3,445,476 |
September 30, 2022 | March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Current | 30-89 Days Past Due | 90+ Days Past Due | Non- accrual | Total Past Due | Total | Current | 30-89 Days Past Due | 90+ Days Past Due | Non-accrual | Total Past Due | Total | ||||||||||||||||||||||||||||||||||||
Loans and leases held for investment, net | ||||||||||||||||||||||||||||||||||||||||||||||||
Loans and leases held-for-investment, net | ||||||||||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 1,238,110 | $ | 170 | $ | - | $ | 411 | $ | 581 | $ | 1,238,691 | $ | 1,304,052 | $ | - | $ | - | $ | 387 | $ | 387 | $ | 1,304,439 | ||||||||||||||||||||||||
Agricultural | 722,448 | - | - | - | - | 722,448 | 707,412 | - | - | - | - | 707,412 | ||||||||||||||||||||||||||||||||||||
Residential and home equity | 377,224 | 25 | - | - | 25 | 377,249 | 387,370 | - | - | - | - | 387,370 | ||||||||||||||||||||||||||||||||||||
Construction | 169,624 | - | - | - | - | 169,624 | 153,394 | - | - | - | - | 153,394 | ||||||||||||||||||||||||||||||||||||
Total real estate | 2,507,406 | 195 | - | 411 | 606 | 2,508,012 | 2,552,228 | - | - | 387 | 387 | 2,552,615 | ||||||||||||||||||||||||||||||||||||
Commercial & industrial | 454,185 | - | - | - | - | 454,185 | 472,189 | - | - | - | - | 472,189 | ||||||||||||||||||||||||||||||||||||
Agricultural | 260,296 | - | - | - | - | 260,296 | 275,785 | - | - | - | - | 275,785 | ||||||||||||||||||||||||||||||||||||
Commercial leases | 93,593 | - | - | - | - | 93,593 | 121,162 | - | - | - | - | 121,162 | ||||||||||||||||||||||||||||||||||||
Consumer and other | 7,766 | 10 | - | - | 10 | 7,776 | 5,357 | 25 | - | - | 25 | 5,382 | ||||||||||||||||||||||||||||||||||||
Total loans and leases, net | $ | 3,323,246 | $ | 205 | $ | - | $ | 411 | $ | 616 | $ | 3,323,862 | $ | 3,426,721 | $ | 25 | $ | - | $ | 387 | $ | 412 | $ | 3,427,133 |
December 31, 2021 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Current | 30-89 Days Past Due | 90+ Days Past Due | Non- accrual | Total Past Due | Total | Current | 30-89 Days Past Due | 90+ Days Past Due | Non-accrual | Total Past Due | Total | ||||||||||||||||||||||||||||||||||||
Loans and leases held for investment, net | ||||||||||||||||||||||||||||||||||||||||||||||||
Loans and leases held-for-investment, net | ||||||||||||||||||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 1,156,879 | $ | 459 | $ | - | $ | - | $ | 459 | $ | 1,157,338 | $ | 1,319,911 | $ | - | $ | - | $ | 403 | $ | 403 | $ | 1,320,314 | ||||||||||||||||||||||||
Agricultural | 672,812 | - | - | 18 | 18 | 672,830 | 726,938 | - | - | - | - | 726,938 | ||||||||||||||||||||||||||||||||||||
Residential and home equity | 350,492 | 89 | - | - | 89 | 350,581 | 387,753 | - | - | - | - | 387,753 | ||||||||||||||||||||||||||||||||||||
Construction | 177,163 | - | - | - | - | 177,163 | 166,370 | - | - | 168 | 168 | 166,538 | ||||||||||||||||||||||||||||||||||||
Total real estate | 2,357,346 | 548 | - | 18 | 566 | 2,357,912 | 2,600,972 | - | - | 571 | 571 | 2,601,543 | ||||||||||||||||||||||||||||||||||||
Commercial & industrial | 427,799 | - | - | - | - | 427,799 | 478,758 | - | - | - | - | 478,758 | ||||||||||||||||||||||||||||||||||||
Agricultural | 276,186 | - | - | 498 | 498 | 276,684 | 314,525 | - | - | - | - | 314,525 | ||||||||||||||||||||||||||||||||||||
Commercial leases | 96,415 | - | - | - | - | 96,415 | 111,649 | - | - | - | - | 111,649 | ||||||||||||||||||||||||||||||||||||
Consumer and other | 78,363 | 4 | - | - | 4 | 78,367 | 5,789 | 97 | - | - | 97 | 5,886 | ||||||||||||||||||||||||||||||||||||
Total loans and leases, net | $ | 3,236,109 | $ | 552 | $ | - | $ | 516 | $ | 1,068 | $ | 3,237,177 | $ | 3,511,693 | $ | 97 | $ | - | $ | 571 | $ | 668 | $ | 3,512,361 |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | March 31, 2023 | December 31, 2022 | ||||||||||||
Non-accrual loans and leases: | ||||||||||||||||
Non-accrual loans and leases, not TDRs | ||||||||||||||||
Non-accrual loans and leases | ||||||||||||||||
Real estate: | ||||||||||||||||
Commercial | $ | 411 | $ | - | $ | 387 | $ | 403 | ||||||||
Agricultural | - | 18 | - | - | ||||||||||||
Residential and home equity | - | - | - | - | ||||||||||||
Construction | - | - | - | 168 | ||||||||||||
Total real estate | 411 | 18 | 387 | 571 | ||||||||||||
Commercial & industrial | - | - | ||||||||||||||
Commercial & Industrial | - | - | ||||||||||||||
Agricultural | - | - | - | - | ||||||||||||
Commercial leases | - | - | - | - | ||||||||||||
Consumer and other | - | - | - | - | ||||||||||||
Subtotal | 411 | 18 | ||||||||||||||
Non-accrual loans and leases, are TDRs | ||||||||||||||||
Real estate: | ||||||||||||||||
Commercial | $ | - | $ | - | ||||||||||||
Agricultural | - | - | ||||||||||||||
Residential and home equity | - | - | ||||||||||||||
Construction | - | - | ||||||||||||||
Total real estate | - | - | ||||||||||||||
Commercial & industrial | - | - | ||||||||||||||
Agricultural | - | 498 | ||||||||||||||
Commercial leases | - | - | ||||||||||||||
Consumer and other | - | - | ||||||||||||||
Subtotal | - | 498 | ||||||||||||||
Total non-accrual loans and leases | $ | 411 | $ | 516 | $ | 387 | $ | 571 |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | ||||||
Troubled debt restructured loans and leases: | ||||||||
Accruing TDR loans and leases | ||||||||
Real estate: | ||||||||
Commercial | $ | - | $ | 41 | ||||
Agricultural | - | - | ||||||
Residential and home equity | 1,319 | 1,522 | ||||||
Construction | - | - | ||||||
Total real estate | 1,319 | 1,563 | ||||||
Commercial & industrial | 6 | 260 | ||||||
Agricultural | - | - | ||||||
Commercial leases | - | - | ||||||
Consumer and other | - | 1 | ||||||
Subtotal | 1,325 | 1,824 | ||||||
Non-accruing TDR loans and leases | ||||||||
Real estate: | ||||||||
Commercial | $ | - | $ | - | ||||
Agricultural | - | - | ||||||
Residential and home equity | - | - | ||||||
Construction | - | - | ||||||
Total real estate | - | - | ||||||
Commercial & industrial | - | - | ||||||
Agricultural | - | 498 | ||||||
Commercial leases | - | - | ||||||
Consumer and other | - | - | ||||||
Subtotal | - | 498 | ||||||
Total TDR loans and leases | $ | 1,325 | $ | 2,322 |
September 30, 2022 | ||||||||||||||||||||||||
(Dollars in thousands) | # of Accruing TDR | $ of Accruing TDR | # of Non- Accruing TDR | $ of Non- Accruing TDR | # of Total TDR | $ of Total TDR | ||||||||||||||||||
Loan and lease TDRs | ||||||||||||||||||||||||
2022 | - | $ | - | - | $ | - | - | $ | - | |||||||||||||||
2021 | - | - | - | - | - | - | ||||||||||||||||||
2020 | 4 | 260 | - | - | 4 | 260 | ||||||||||||||||||
2019 | - | - | - | - | - | - | ||||||||||||||||||
Prior | 8 | 1,065 | - | - | 8 | 1,065 | ||||||||||||||||||
Total | 12 | $ | 1,325 | - | $ | - | 12 | $ | 1,325 |
September 30, 2022 | ||||||||||||||||||||||||
(Dollars in thousands) | Pass | Special Mention | Sub- standard | Doubtful | Total Loans & Leases | Total Allowance for Credit Losses | ||||||||||||||||||
Loans and leases held for investment, net | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | $ | 1,229,837 | $ | 7,320 | $ | 1,534 | $ | - | $ | 1,238,691 | $ | 16,540 | ||||||||||||
Agricultural | 705,404 | 10,891 | 6,153 | - | 722,448 | 16,560 | ||||||||||||||||||
Residential and home equity | 377,021 | - | 228 | - | 377,249 | 6,865 | ||||||||||||||||||
Construction | 169,624 | - | - | - | 169,624 | 2,995 | ||||||||||||||||||
Total real estate | 2,481,886 | 18,211 | 7,915 | - | 2,508,012 | 42,960 | ||||||||||||||||||
Commercial & industrial | 453,832 | 70 | 283 | - | 454,185 | 10,392 | ||||||||||||||||||
Agricultural | 253,554 | 6,726 | 16 | - | 260,296 | 8,523 | ||||||||||||||||||
Commercial leases | 93,493 | 100 | - | - | 93,593 | 1,588 | ||||||||||||||||||
Consumer and other | 7,583 | - | 193 | - | 7,776 | 154 | ||||||||||||||||||
Total loans and leases, net | $ | 3,290,348 | $ | 25,107 | $ | 8,407 | $ | - | $ | 3,323,862 | $ | 63,617 |
December 31, 2021 | ||||||||||||||||||||||||
(Dollars in thousands) | Pass | Special Mention | Sub- standard | Doubtful | Total Loans & Leases | Total Allowance for Credit Losses | ||||||||||||||||||
Loans and leases held for investment, net | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | $ | 1,142,175 | $ | 6,903 | $ | 8,260 | $ | - | $ | 1,157,338 | $ | 28,536 | ||||||||||||
Agricultural | 663,157 | 3,292 | 6,381 | - | 672,830 | 9,613 | ||||||||||||||||||
Residential and home equity | 350,148 | - | 433 | - | 350,581 | 2,847 | ||||||||||||||||||
Construction | 177,163 | - | - | - | 177,163 | 1,456 | ||||||||||||||||||
Total real estate | 2,332,643 | 10,195 | 15,074 | - | 2,357,912 | 42,452 | ||||||||||||||||||
Commercial & industrial | 417,806 | 9,321 | 672 | - | 427,799 | 11,489 | ||||||||||||||||||
Agricultural | 275,206 | 958 | 520 | - | 276,684 | 5,465 | ||||||||||||||||||
Commercial leases | 96,415 | - | - | - | 96,415 | 938 | ||||||||||||||||||
Consumer and other | 78,181 | - | 186 | - | 78,367 | 663 | ||||||||||||||||||
Total loans and leases, net | $ | 3,200,251 | $ | 20,474 | $ | 16,452 | $ | - | $ | 3,237,177 | $ | 61,007 |
March 31, 2023 | ||||||||||||||||||||||||
(Dollars in thousands) | Pass | Special Mention | Sub- standard | Doubtful | Total Loans & Leases | Total Allowance for Credit Losses | ||||||||||||||||||
Loans and leases held-for-investment, net | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | $ | 1,301,094 | $ | 2,958 | $ | 387 | $ | - | $ | 1,304,439 | $ | 24,253 | ||||||||||||
Agricultural | 688,406 | 12,875 | 6,131 | - | 707,412 | 8,441 | ||||||||||||||||||
Residential and home equity | 387,006 | - | 364 | - | 387,370 | 7,334 | ||||||||||||||||||
Construction | 153,394 | - | - | - | 153,394 | 2,785 | ||||||||||||||||||
Total real estate | 2,529,900 | 15,833 | 6,882 | - | 2,552,615 | 42,813 | ||||||||||||||||||
Commercial & industrial | 471,348 | 594 | 247 | - | 472,189 | 11,346 | ||||||||||||||||||
Agricultural | 271,307 | 4,467 | 11 | - | 275,785 | 12,542 | ||||||||||||||||||
Commercial leases | 121,099 | 63 | - | - | 121,162 | 1,720 | ||||||||||||||||||
Consumer and other | 5,251 | - | 131 | - | 5,382 | 152 | ||||||||||||||||||
Total loans and leases, net | $ | 3,398,905 | $ | 20,957 | $ | 7,271 | $ | - | $ | 3,427,133 | $ | 68,573 |
December 31, 2022 | ||||||||||||||||||||||||
(Dollars in thousands) | Pass | Special Mention | Sub- standard | Doubtful | Total Loans & Leases | Total Allowance for Credit Losses | ||||||||||||||||||
Loans and leases held-for-investment, net | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | $ | 1,314,377 | $ | 5,535 | $ | 402 | $ | - | $ | 1,320,314 | $ | 18,055 | ||||||||||||
Agricultural | 709,927 | 10,891 | 6,120 | - | 726,938 | 14,496 | ||||||||||||||||||
Residential and home equity | 387,371 | - | 382 | - | 387,753 | 7,508 | ||||||||||||||||||
Construction | 166,370 | - | 168 | - | 166,538 | 3,026 | ||||||||||||||||||
Total real estate | 2,578,045 | 16,426 | 7,072 | - | 2,601,543 | 43,085 | ||||||||||||||||||
Commercial & industrial | 478,437 | 63 | 258 | - | 478,758 | 11,503 | ||||||||||||||||||
Agricultural | 308,830 | 5,682 | 13 | - | 314,525 | 10,202 | ||||||||||||||||||
Commercial leases | 111,568 | 81 | - | - | 111,649 | 1,924 | ||||||||||||||||||
Consumer and other | 5,650 | - | 236 | - | 5,886 | 171 | ||||||||||||||||||
Total loans and leases, net | $ | 3,482,530 | $ | 22,252 | $ | 7,579 | $ | - | $ | 3,512,361 | $ | 66,885 |
September 30, 2022 | ||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans Amortized Cost | Total | ||||||||||||||||||||||||
Net loans and leases held for investment | ||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Pass | $ | 140,036 | $ | 236,947 | $ | 153,480 | $ | 72,167 | $ | 86,063 | $ | 227,146 | $ | 313,998 | $ | 1,229,837 | ||||||||||||||||
Special mention | - | - | - | - | 3,844 | - | 3,476 | 7,320 | ||||||||||||||||||||||||
Substandard | - | - | - | - | - | 1,534 | - | 1,534 | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Commercial | $ | 140,036 | $ | 236,947 | $ | 153,480 | $ | 72,167 | $ | 89,907 | $ | 228,680 | $ | 317,474 | $ | 1,238,691 | ||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||||||
Pass | $ | 54,480 | $ | 43,117 | $ | 56,965 | $ | 15,297 | $ | 51,194 | $ | 151,470 | $ | 332,881 | $ | 705,404 | ||||||||||||||||
Special mention | - | - | - | 2,636 | - | - | 8,255 | 10,891 | ||||||||||||||||||||||||
Substandard | - | - | - | - | 119 | 6,034 | - | 6,153 | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Agricultural | $ | 54,480 | $ | 43,117 | $ | 56,965 | $ | 17,933 | $ | 51,313 | $ | 157,504 | $ | 341,136 | $ | 722,448 | ||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Residential and home equity | ||||||||||||||||||||||||||||||||
Pass | $ | 51,888 | $ | 97,973 | $ | 88,214 | $ | 14,851 | $ | 6,910 | $ | 78,458 | $ | 38,727 | $ | 377,021 | ||||||||||||||||
Special mention | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Substandard | - | - | - | - | - | 144 | 84 | 228 | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Residential and home equity | $ | 51,888 | $ | 97,973 | $ | 88,214 | $ | 14,851 | $ | 6,910 | $ | 78,602 | $ | 38,811 | $ | 377,249 | ||||||||||||||||
Residential and home equity | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||
Pass | $ | - | $ | - | $ | - | $ | 1,575 | $ | - | $ | 62 | $ | 167,987 | $ | 169,624 | ||||||||||||||||
Special mention | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Substandard | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total construction | $ | - | $ | - | $ | - | $ | 1,575 | $ | - | $ | 62 | $ | 167,987 | $ | 169,624 | ||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Total Real estate | $ | 246,404 | $ | 378,037 | $ | 298,659 | $ | 106,526 | $ | 148,130 | $ | 464,848 | $ | 865,408 | $ | 2,508,012 | ||||||||||||||||
Commercial & industrial | ||||||||||||||||||||||||||||||||
Pass | $ | 24,852 | $ | 41,476 | $ | 13,975 | $ | 10,646 | $ | 8,774 | $ | 6,386 | $ | 347,723 | $ | 453,832 | ||||||||||||||||
Special mention | - | 69 | - | - | - | 1 | - | 70 | ||||||||||||||||||||||||
Substandard | - | - | - | - | 6 | 6 | 271 | 283 | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Commercial & industrial | $ | 24,852 | $ | 41,545 | $ | 13,975 | $ | 10,646 | $ | 8,780 | $ | 6,393 | $ | 347,994 | $ | 454,185 | ||||||||||||||||
Commercial & industrial | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | 246 | $ | 78 | $ | - | $ | - | $ | 324 | ||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||||||
Pass | $ | 4,387 | $ | 3,789 | $ | 1,082 | $ | 1,617 | $ | 731 | $ | 2,211 | $ | 239,737 | $ | 253,554 | ||||||||||||||||
Special mention | - | - | - | - | - | 7 | 6,719 | 6,726 | ||||||||||||||||||||||||
Substandard | - | - | - | 13 | 3 | - | - | 16 | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Agricultural | $ | 4,387 | $ | 3,789 | $ | 1,082 | $ | 1,630 | $ | 734 | $ | 2,218 | $ | 246,456 | $ | 260,296 | ||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Commercial leases | ||||||||||||||||||||||||||||||||
Pass | $ | 11,541 | $ | 16,541 | $ | 13,664 | $ | 7,643 | $ | 21,387 | $ | 22,717 | $ | - | $ | 93,493 | ||||||||||||||||
Special mention | - | - | - | 100 | - | - | - | 100 | ||||||||||||||||||||||||
Substandard | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Commercial leases | $ | 11,541 | $ | 16,541 | $ | 13,664 | $ | 7,743 | $ | 21,387 | $ | 22,717 | $ | - | $ | 93,593 | ||||||||||||||||
Commercial leases | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Consumer and other | ||||||||||||||||||||||||||||||||
Pass | $ | 965 | $ | 2,463 | $ | 359 | $ | 235 | $ | 386 | $ | 2,481 | $ | 694 | $ | 7,583 | ||||||||||||||||
Special mention | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Substandard | 193 | - | - | - | - | - | - | 193 | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Consumer and other | $ | 1,158 | $ | 2,463 | $ | 359 | $ | 235 | $ | 386 | $ | 2,481 | $ | 694 | $ | 7,776 | ||||||||||||||||
Consumer and other | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | 25 | $ | 5 | $ | 4 | $ | 1 | $ | 3 | $ | - | $ | - | $ | 38 | ||||||||||||||||
Total net loans and leases | $ | 288,342 | $ | 442,375 | $ | 327,739 | $ | 126,780 | $ | 179,417 | $ | 498,657 | $ | 1,460,552 | $ | 3,323,862 |
March 31, 2023 | ||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Loans Amortized Cost | Total | ||||||||||||||||||||||||
Net loans and leases held-for-investment | ||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Pass | $ | 51,123 | $ | 176,639 | $ | 227,251 | $ | 149,007 | $ | 69,798 | $ | 301,459 | $ | 325,817 | $ | 1,301,094 | ||||||||||||||||
Special mention | - | - | - | - | - | 2,358 | 600 | 2,958 | ||||||||||||||||||||||||
Substandard | - | - | - | - | - | 387 | - | 387 | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Commercial | $ | 51,123 | $ | 176,639 | $ | 227,251 | $ | 149,007 | $ | 69,798 | $ | 304,204 | $ | 326,417 | $ | 1,304,439 | ||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||||||
Pass | $ | 14,274 | $ | 75,313 | $ | 41,782 | $ | 53,027 | $ | 14,264 | $ | 176,639 | $ | 313,107 | $ | 688,406 | ||||||||||||||||
Special mention | - | - | - | - | - | - | 12,875 | 12,875 | ||||||||||||||||||||||||
Substandard | - | - | - | - | - | 6,131 | - | 6,131 | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Agricultural | $ | 14,274 | $ | 75,313 | $ | 41,782 | $ | 53,027 | $ | 14,264 | $ | 182,770 | $ | 325,982 | $ | 707,412 | ||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Residential and home equity | ||||||||||||||||||||||||||||||||
Pass | $ | 7,062 | $ | 65,050 | $ | 94,458 | $ | 85,239 | $ | 14,222 | $ | 79,905 | $ | 41,070 | $ | 387,006 | ||||||||||||||||
Special mention | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Substandard | - | - | - | - | - | 284 | 80 | 364 | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Residential and home equity | $ | 7,062 | $ | 65,050 | $ | 94,458 | $ | 85,239 | $ | 14,222 | $ | 80,189 | $ | 41,150 | $ | 387,370 | ||||||||||||||||
Residential and home equity | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 14 | $ | - | $ | 14 | ||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||
Pass | $ | - | $ | 2,003 | $ | - | $ | - | $ | 1,575 | $ | - | $ | 149,816 | $ | 153,394 | ||||||||||||||||
Special mention | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Substandard | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total construction | $ | - | $ | 2,003 | $ | - | $ | - | $ | 1,575 | $ | - | $ | 149,816 | $ | 153,394 | ||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Total Real estate | $ | 72,459 | $ | 319,005 | $ | 363,491 | $ | 287,273 | $ | 99,859 | $ | 567,163 | $ | 843,365 | $ | 2,552,615 | ||||||||||||||||
Commercial & industrial | ||||||||||||||||||||||||||||||||
Pass | $ | 11,960 | $ | 30,234 | $ | 35,318 | $ | 11,131 | $ | 7,195 | $ | 10,318 | $ | 365,192 | $ | 471,348 | ||||||||||||||||
Special mention | - | - | 55 | - | - | 539 | - | 594 | ||||||||||||||||||||||||
Substandard | - | - | - | - | - | 6 | 241 | 247 | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Commercial & industrial | $ | 11,960 | $ | 30,234 | $ | 35,373 | $ | 11,131 | $ | 7,195 | $ | 10,863 | $ | 365,433 | $ | 472,189 | ||||||||||||||||
Commercial & industrial | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - |
March 31, 2023 | ||||||||||||||||||||||||||||||||
Term Loans Amortized Cost Basis by Origination Year | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Loans Amortized Cost | Total | ||||||||||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||||||
Pass | $ | 170 | $ | 5,179 | $ | 2,755 | $ | 918 | $ | 1,135 | $ | 2,448 | $ | 258,702 | $ | 271,307 | ||||||||||||||||
Special mention | - | - | - | - | - | - | 4,467 | 4,467 | ||||||||||||||||||||||||
Substandard | - | - | - | - | 10 | 1 | - | 11 | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Agricultural | $ | 170 | $ | 5,179 | $ | 2,755 | $ | 918 | $ | 1,145 | $ | 2,449 | $ | 263,169 | $ | 275,785 | ||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Commercial leases | ||||||||||||||||||||||||||||||||
Pass | $ | 33,959 | $ | 15,132 | $ | 12,359 | $ | 5,537 | $ | 33,433 | $ | 20,679 | $ | - | $ | 121,099 | ||||||||||||||||
Special mention | - | - | - | - | 63 | - | - | 63 | ||||||||||||||||||||||||
Substandard | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Commercial leases | $ | 33,959 | $ | 15,132 | $ | 12,359 | $ | 5,537 | $ | 33,496 | $ | 20,679 | $ | - | $ | 121,162 | ||||||||||||||||
Commercial leases | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Consumer and other | ||||||||||||||||||||||||||||||||
Pass | $ | 318 | $ | 1,476 | $ | 575 | $ | 213 | $ | 121 | $ | 1,922 | $ | 626 | $ | 5,251 | ||||||||||||||||
Special mention | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Substandard | 131 | - | - | - | - | - | - | 131 | ||||||||||||||||||||||||
Doubtful | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total Consumer and other | $ | 449 | $ | 1,476 | $ | 575 | $ | 213 | $ | 121 | $ | 1,922 | $ | 626 | $ | 5,382 | ||||||||||||||||
Consumer and other | ||||||||||||||||||||||||||||||||
Current-period gross charge-offs | $ | 8 | $ | 1 | $ | - | $ | - | $ | - | $ | 1 | $ | - | $ | 10 | ||||||||||||||||
Total net loans and leases | $ | 118,997 | $ | 371,026 | $ | 414,553 | $ | 305,072 | $ | 141,816 | $ | 603,076 | $ | 1,472,593 | $ | 3,427,133 |
March 31, | December 31, | |||||||
(Dollars in thousands) | 2023 | 2022 | ||||||
Balance at beginning of the period | $ | 17,521 | $ | 18,128 | ||||
New loans or advances during year | 130 | 523 | ||||||
Repayments | (372 | ) | (1,130 | ) | ||||
Balance at end of period | $ | 17,279 | $ | 17,521 |
September 30, 2022 | ||||||||||||
(Dollars in thousands) | Real Estate | Vehicles and Equipment | Total | |||||||||
Collateral dependent loans and leases | ||||||||||||
Real estate: | ||||||||||||
Commercial | $ | 1,124 | $ | - | $ | 1,124 | ||||||
Agricultural | 11,944 | - | 11,944 | |||||||||
Residential and home equity | 2,002 | - | 2,002 | |||||||||
Construction | - | - | - | |||||||||
Total Real estate | 15,070 | - | 15,070 | |||||||||
Commercial & industrial | - | - | - | |||||||||
Agricultural | - | 16 | 16 | |||||||||
Commercial leases | - | - | - | |||||||||
Consumer and other | - | 161 | 161 | |||||||||
Total gross loans and leases | $ | 15,070 | $ | 177 | $ | 15,247 |
December 31, 2021 | ||||||||||||
(Dollars in thousands) | Real Estate | Vehicles and Equipment | Total | |||||||||
Collateral dependent loans and leases | ||||||||||||
Real estate: | ||||||||||||
Commercial | $ | 5 | $ | - | $ | 5 | ||||||
Agricultural | 5,587 | - | 5,587 | |||||||||
Residential and home equity | 330 | - | 330 | |||||||||
Construction | - | - | - | |||||||||
Total Real estate | 5,922 | - | 5,922 | |||||||||
Commercial & industrial | - | - | - | |||||||||
Agricultural | - | - | - | |||||||||
Commercial leases | - | - | - | |||||||||
Consumer and other | - | 173 | 173 | |||||||||
Total gross loans and leases | $ | 5,922 | $ | 173 | $ | 6,095 |
March 31, 2023 | ||||||||||||
(Dollars in thousands) | Real Estate | Vehicles and Equipment | Total | |||||||||
Collateral dependent loans and leases | ||||||||||||
Real estate: | ||||||||||||
Commercial | $ | 1,492 | $ | - | $ | 1,492 | ||||||
Agricultural | 10,751 | - | 10,751 | |||||||||
Residential and home equity | 1,658 | - | 1,658 | |||||||||
Construction | - | - | - | |||||||||
Total real estate | 13,901 | - | 13,901 | |||||||||
Commercial & industrial | - | - | - | |||||||||
Agricultural | - | 11 | 11 | |||||||||
Commercial leases | - | - | - | |||||||||
Consumer and other | - | 153 | 153 | |||||||||
Total gross loans and leases | $ | 13,901 | $ | 164 | $ | 14,065 |
December 31, 2022 | ||||||||||||
(Dollars in thousands) | Real Estate | Vehicles and Equipment | Total | |||||||||
Collateral dependent loans and leases | ||||||||||||
Real estate: | ||||||||||||
Commercial | $ | 1,114 | $ | - | $ | 1,114 | ||||||
Agricultural | 11,035 | - | 11,035 | |||||||||
Residential and home equity | 2,153 | - | 2,153 | |||||||||
Construction | - | - | - | |||||||||
Total real estate | 14,302 | - | 14,302 | |||||||||
Commercial & industrial | - | - | - | |||||||||
Agricultural | - | 13 | 13 | |||||||||
Commercial leases | - | - | - | |||||||||
Consumer and other | - | 158 | 158 | |||||||||
Total gross loans and leases | $ | 14,302 | $ | 171 | $ | 14,473 |
For the three Months Ended September 30, 2022 | For the Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial & Agricultural R/E | Construction | Residential & Home Equity | Commercial & Agricultural | Commercial Leases | Consumer & Other | Total | Commercial & Agricultural R/E | Construction | Residential & Home Equity | Commercial & Agricultural | Commercial Leases | Consumer & Other | Total | ||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 34,716 | $ | 2,876 | $ | 6,874 | $ | 15,808 | $ | 1,645 | $ | 161 | $ | 62,080 | ||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 32,551 | $ | 3,026 | $ | 7,508 | $ | 21,705 | $ | 1,924 | $ | 171 | $ | 66,885 | ||||||||||||||||||||||||||||||||||||||||||
Provision / (recapture) for credit losses | (1,616 | ) | 119 | (15 | ) | 3,063 | (57 | ) | 5 | 1,499 | (27 | ) | (241 | ) | (170 | ) | 2,163 | (204 | ) | (21 | ) | 1,500 | ||||||||||||||||||||||||||||||||||
Charge-offs | - | - | - | (48 | ) | - | (20 | ) | (68 | ) | - | - | (14 | ) | - | - | (10 | ) | (24 | ) | ||||||||||||||||||||||||||||||||||||
Recoveries | - | - | 6 | 92 | - | 8 | 106 | 170 | - | 10 | 20 | - | 12 | 212 | ||||||||||||||||||||||||||||||||||||||||||
Net (charge-offs) / recoveries | - | - | 6 | 44 | - | (12 | ) | 38 | 170 | - | (4 | ) | 20 | - | 2 | 188 | ||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 33,100 | $ | 2,995 | $ | 6,865 | $ | 18,915 | $ | 1,588 | $ | 154 | $ | 63,617 | ||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 32,694 | $ | 2,785 | $ | 7,334 | $ | 23,888 | $ | 1,720 | $ | 152 | $ | 68,573 |
For the Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial & Agricultural R/E | Construction | Residential & Home Equity | Commercial & Agricultural | Commercial Leases | Consumer & Other | Total | |||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||
Balance at beginning of period, prior to adoption of ASC 326 | $ | 38,149 | $ | 1,456 | $ | 2,847 | $ | 16,954 | $ | 938 | $ | 663 | $ | 61,007 | ||||||||||||||
Impact of adopting ASC 326 | (6,190 | ) | 1,855 | 3,032 | 826 | 629 | (152 | ) | - | |||||||||||||||||||
Provision / (recapture) for credit losses | 552 | 466 | 866 | (1,700 | ) | (101 | ) | (83 | ) | - | ||||||||||||||||||
Charge-offs | - | - | - | - | - | (9 | ) | (9 | ) | |||||||||||||||||||
Recoveries | - | - | 14 | 18 | - | 2 | 34 | |||||||||||||||||||||
Net (charge-offs) / recoveries | - | - | 14 | 18 | - | (7 | ) | 25 | ||||||||||||||||||||
Balance at end of period | $ | 32,511 | $ | 3,777 | $ | 6,759 | $ | 16,098 | $ | 1,466 | $ | 421 | $ | 61,032 |
For the Nine Months Ended September 30, 2022 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial & Agricultural R/E | Construction | Residential & Home Equity | Commercial & Agricultural | Commercial Leases | Consumer & Other | Total | |||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||
Beginning balance | $ | 38,149 | $ | 1,456 | $ | 2,847 | $ | 16,954 | $ | 938 | $ | 663 | $ | 61,007 | ||||||||||||||
Impact of Adopting ASC 326 | - | - | - | - | - | - | - | |||||||||||||||||||||
Provision / (recapture) for credit losses | (5,049 | ) | 1,539 | 3,893 | 2,058 | 650 | (485 | ) | 2,606 | |||||||||||||||||||
Charge-offs | - | - | - | (324 | ) | - | (38 | ) | (362 | ) | ||||||||||||||||||
Recoveries | - | - | 125 | 227 | - | 14 | 366 | |||||||||||||||||||||
Net (charge-offs) / recoveries | - | - | 125 | (97 | ) | - | (24 | ) | 4 | |||||||||||||||||||
Ending balance | $ | 33,100 | $ | 2,995 | $ | 6,865 | $ | 18,915 | $ | 1,588 | $ | 154 | $ | 63,617 |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | March 31, 2023 | December 31, 2022 | ||||||||||||
Certificates of deposit: | ||||||||||||||||
Certificates of deposit less than or equal to $250,000 | $ | 208,242 | $ | 223,620 | $ | 218,375 | $ | 202,554 | ||||||||
Certificates of deposit greater than $250,000 | 152,142 | 168,865 | 167,755 | 128,846 | ||||||||||||
Total certificates of deposit | $ | 360,384 | $ | 392,485 | $ | 386,130 | $ | 331,400 |
(Dollars in thousands) | Amount | Amount | ||||||
2022 | $ | 107,966 | ||||||
2023 | 224,552 | $ | 237,695 | |||||
2024 | 22,362 | 131,935 | ||||||
2025 | 2,783 | 12,059 | ||||||
2026 and beyond | 2,721 | |||||||
2026 | 3,029 | |||||||
2027 and beyond | 1,412 | |||||||
Total certificates of deposit | $ | 360,384 | $ | 386,130 |
September 30, 2022 | ||||||||||||||||||||||||
Actual | Minimum to be Categorized as “Adequately Capitalized” | Minimum to be Categorized as “Well Capitalized” | ||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||
Farmers & Merchants Bancorp | ||||||||||||||||||||||||
CET1 capital to risk-weighted assets | $ | 482,053 | 11.82 | % | $ | 183,537 | 4.50 | % | N/A | N/A | ||||||||||||||
Tier 1 capital to risk-weighted assets | 492,053 | 12.06 | % | 244,716 | 6.00 | % | N/A | N/A | ||||||||||||||||
Risk-based capital to risk-weighted assets | 543,218 | 13.32 | % | 326,288 | 8.00 | % | N/A | N/A | ||||||||||||||||
Tier 1 leverage capital ratio | 492,053 | 9.12 | % | 215,702 | 4.00 | % | N/A | N/A | ||||||||||||||||
Farmers & Merchants Bank | ||||||||||||||||||||||||
CET1 capital to risk-weighted assets | $ | 491,237 | 12.04 | % | $ | 183,531 | 4.50 | % | $ | 265,101 | 6.50 | % | ||||||||||||
Tier 1 capital to risk-weighted assets | 491,237 | 12.04 | % | 244,708 | 6.00 | % | 326,278 | 8.00 | % | |||||||||||||||
Risk-based capital to risk-weighted assets | 542,400 | 13.30 | % | 326,278 | 8.00 | % | 407,847 | 10.00 | % | |||||||||||||||
Tier 1 leverage capital ratio | 491,237 | 9.12 | % | 215,498 | 4.00 | % | 269,372 | 5.00 | % |
December 31, 2021 | ||||||||||||||||||||||||
Actual | Minimum to be Categorized as “Adequately Capitalized” | Minimum to be Categorized as “Well Capitalized” | ||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||
Farmers & Merchants Bancorp | ||||||||||||||||||||||||
CET1 capital to risk-weighted assets | $ | 450,687 | 11.68 | % | $ | 173,674 | 4.50 | % | N/A | N/A | ||||||||||||||
Tier 1 capital to risk-weighted assets | 460,687 | 11.94 | % | 231,566 | 6.00 | % | N/A | N/A | ||||||||||||||||
Risk-based capital to risk-weighted assets | 509,091 | 13.19 | % | 308,755 | 8.00 | % | N/A | N/A | ||||||||||||||||
Tier 1 leverage capital ratio | 460,687 | 8.92 | % | 206,606 | 4.00 | % | N/A | N/A | ||||||||||||||||
Farmers & Merchants Bank | ||||||||||||||||||||||||
CET1 capital to risk-weighted assets | $ | 459,813 | 11.91 | % | $ | 173,664 | 4.50 | % | $ | 250,847 | 6.50 | % | ||||||||||||
Tier 1 capital to risk-weighted assets | 459,813 | 11.91 | % | 231,551 | 6.00 | % | 308,735 | 8.00 | % | |||||||||||||||
Risk-based capital to risk-weighted assets | 508,215 | 13.17 | % | 308,735 | 8.00 | % | 385,919 | 10.00 | % | |||||||||||||||
Tier 1 leverage capital ratio | 459,813 | 8.91 | % | 206,426 | 4.00 | % | 258,033 | 5.00 | % |
Three Months Ended September 30, | ||||||||
(Dollars in thousands, except share and per share amounts) | 2022 | 2021 | ||||||
Numerator | ||||||||
Net income | $ | 19,536 | $ | 17,502 | ||||
Denominator | ||||||||
Weighted average number of common shares outstanding | 775,109 | 789,646 | ||||||
Weighted average number of dilutive shares outstanding | 775,109 | 789,646 | ||||||
Basic earnings per common share | $ | 25.20 | $ | 22.16 | ||||
Diluted earnings per common share | $ | 25.20 | $ | 22.16 |
Nine Months Ended September 30, | Three Months Ended March 31, | |||||||||||||||
(Dollars in thousands, except share and per share amounts) | 2022 | 2021 | 2023 | 2022 | ||||||||||||
Numerator | ||||||||||||||||
Net income | $ | 55,037 | $ | 50,368 | $ | 23,547 | $ | 17,058 | ||||||||
Denominator | ||||||||||||||||
Weighted average number of common shares outstanding | 780,988 | 789,646 | 764,603 | 786,096 | ||||||||||||
Weighted average number of dilutive shares outstanding | 780,988 | 789,646 | 764,603 | 786,096 | ||||||||||||
Basic earnings per common share | $ | 70.47 | $ | 63.79 | $ | 30.80 | $ | 21.70 | ||||||||
Diluted earnings per common share | $ | 70.47 | $ | 63.79 | ||||||||||||
Diluted earning per common share | $ | 30.80 | $ | 21.70 |
September 30, 2022 | Fair Value | |||||||||||||||||||||||||||||||||||||||
March 31, 2023 | Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 882,883 | $ | 882,883 | $ | - | $ | - | $ | 882,883 | $ | 529,593 | $ | 529,593 | $ | - | $ | - | $ | 529,593 | ||||||||||||||||||||
Investment securities available-for-sale | 177,454 | 4,941 | 172,513 | - | 177,454 | |||||||||||||||||||||||||||||||||||
Investment securities held-to-maturity | 852,272 | - | 663,285 | 42,416 | 705,701 | |||||||||||||||||||||||||||||||||||
Held-to-maturity securities | 849,994 | - | 649,419 | 56,490 | 705,909 | |||||||||||||||||||||||||||||||||||
Non-marketable securities | 15,549 | - | - | 15,549 | 15,549 | 15,549 | - | - | 15,549 | 15,549 | ||||||||||||||||||||||||||||||
Loans and leases, net | 3,260,245 | - | - | 3,203,611 | 3,203,611 | 3,358,560 | - | - | 3,207,754 | 3,207,754 | ||||||||||||||||||||||||||||||
Bank-owned life insurance | 72,566 | 72,566 | - | - | 72,566 | 66,076 | 66,076 | - | - | 66,076 | ||||||||||||||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||||||||||||||||
Total deposits | $ | 4,909,257 | $ | - | $ | 4,548,873 | $ | 352,319 | $ | 4,901,192 | $ | 4,539,162 | $ | - | $ | 4,153,033 | $ | 377,969 | $ | 4,531,002 | ||||||||||||||||||||
Subordinated debentures | 10,310 | - | 9,707 | - | 9,707 | 10,310 | - | 12,830 | - | 12,830 |
December 31, 2021 | Fair Value | |||||||||||||||||||||||||||||||||||||||
December 31, 2022 | Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 715,460 | $ | 715,460 | $ | - | $ | - | $ | 715,460 | $ | 588,257 | $ | 588,257 | $ | - | $ | - | $ | 588,257 | ||||||||||||||||||||
Investment securities available-for-sale | 270,454 | 10,214 | 260,240 | - | 270,454 | |||||||||||||||||||||||||||||||||||
Investment securities held-to-maturity | 737,052 | - | 681,588 | 44,446 | 726,034 | |||||||||||||||||||||||||||||||||||
Held-to-maturity securities | 844,953 | - | 645,859 | 42,534 | 688,393 | |||||||||||||||||||||||||||||||||||
Non-marketable securities | 15,549 | - | - | 15,549 | 15,549 | 15,549 | - | - | 15,549 | 15,549 | ||||||||||||||||||||||||||||||
Loans and leases, net | 3,176,170 | - | - | 3,179,857 | 3,179,857 | 3,445,476 | - | - | 3,335,042 | 3,335,042 | ||||||||||||||||||||||||||||||
Bank-owned life insurance | 71,411 | 71,411 | - | - | 71,411 | 73,038 | 73,038 | - | - | 73,038 | ||||||||||||||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||||||||||||||||
Total deposits | $ | 4,640,152 | $ | - | $ | 4,247,666 | $ | 391,732 | $ | 4,639,398 | $ | 4,759,269 | $ | - | $ | 4,427,869 | $ | 323,572 | $ | 4,751,441 | ||||||||||||||||||||
Subordinated debentures | 10,310 | - | 6,890 | - | 6,890 | 10,310 | - | 12,211 | - | 12,211 |
September 30, 2022 | Fair Value | |||||||||||||||||||||||||||||||||||||||
March 31, 2023 | Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||||||||||||||||||||
Fair valued on a recurring basis: | ||||||||||||||||||||||||||||||||||||||||
Investment securities available-for-sale | ||||||||||||||||||||||||||||||||||||||||
U.S. Treasury notes | $ | 4,941 | $ | 4,941 | $ | - | $ | - | $ | 4,941 | ||||||||||||||||||||||||||||||
Available-for-sale securities | ||||||||||||||||||||||||||||||||||||||||
U.S. Government-sponsored securities | 4,698 | - | 4,698 | - | 4,698 | $ | 4,112 | $ | - | $ | 4,112 | $ | - | $ | 4,112 | |||||||||||||||||||||||||
Mortgage-backed securities | 156,453 | - | 156,453 | - | 156,453 | 103,697 | - | 103,697 | - | 103,697 | ||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 1,458 | - | 1,458 | - | 1,458 | 607 | - | 607 | - | 607 | ||||||||||||||||||||||||||||||
Corporate securities | 9,594 | - | 9,594 | - | 9,594 | 9,711 | - | 9,711 | - | 9,711 | ||||||||||||||||||||||||||||||
Other | 310 | - | 310 | - | 310 | 310 | - | 310 | - | 310 | ||||||||||||||||||||||||||||||
Fair valued on a non-recurring basis: | ||||||||||||||||||||||||||||||||||||||||
Other real estate | $ | 873 | $ | - | $ | - | $ | 873 | $ | 873 | ||||||||||||||||||||||||||||||
Collateral Dependent loans | $ | 14,065 | $ | - | $ | - | $ | 14,065 | $ | 14,065 | ||||||||||||||||||||||||||||||
Other real estate owned | | 873 | | - | | - | | 873 | | 873 |
December 31, 2021 | Fair Value | |||||||||||||||||||||||||||||||||||||||
December 31, 2022 | Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | Carrying Amount | Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||||||||||||||||||||
Fair valued on a recurring basis: | ||||||||||||||||||||||||||||||||||||||||
Investment securities available-for-sale | ||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities | ||||||||||||||||||||||||||||||||||||||||
U.S. Treasury notes | $ | 10,089 | $ | 10,089 | $ | - | $ | - | $ | 10,089 | $ | 4,964 | $ | 4,964 | $ | - | $ | - | $ | 4,964 | ||||||||||||||||||||
U.S. Government-sponsored securities | 6,374 | - | 6,374 | - | 6,374 | 4,427 | - | 4,427 | - | 4,427 | ||||||||||||||||||||||||||||||
Mortgage-backed securities | 251,120 | - | 251,120 | - | 251,120 | 132,528 | - | 132,528 | - | 132,528 | ||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 2,436 | - | 2,436 | - | 2,436 | 1,054 | - | 1,054 | - | 1,054 | ||||||||||||||||||||||||||||||
Corporate securities | 9,581 | - | 9,581 | - | 9,581 | |||||||||||||||||||||||||||||||||||
Other | 435 | 125 | 310 | - | 435 | 310 | - | 310 | - | 310 | ||||||||||||||||||||||||||||||
Fair valued on a non-recurring basis: | ||||||||||||||||||||||||||||||||||||||||
Individually evaluated loans | $ | 2,562 | $ | - | $ | - | $ | 2,562 | $ | 2,562 | ||||||||||||||||||||||||||||||
Other real estate | 873 | - | - | 873 | 873 | |||||||||||||||||||||||||||||||||||
Collateral Dependent loans | $ | 14,473 | $ | - | $ | - | $ | 14,473 | $ | 14,473 | ||||||||||||||||||||||||||||||
Other real estate owned | 873 | - | - | 873 | 873 |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | ||||||
Commitments to extend credit, including unsecured commitments of $20,552 and $21,036 as of September 30, 2022 and December 31, 2021, respectively | $ | 1,128,340 | $ | 937,009 | ||||
Stand-by letters of credit, including unsecured commitments of $7,352 and $9,091 as of September 30, 2022 and December 31, 2021, respectively | 16,629 | 17,880 | ||||||
Performance guarantees under interest rate swap contracts entered into with our clients and third-parties | - | 1,433 |
(Dollars in thousands) | March 31, 2023 | December 31, 2022 | ||||||
Commitments to extend credit, including unsecured commitments of $20,114 and $20,401 as of March 31, 2023 and December 31, 2022, respectively | $ | 1,174,664 | $ | 1,141,036 | ||||
Stand-by letters of credit, including unsecured commitments of $8,059 and $7,954 as of March 31, 2023 and December 31, 2022, respectively | 16,821 | 17,138 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
■ |
changes in general economic conditions, either nationally, in California, or in our local markets; |
■ | inflation, changes in interest rates, securities market volatility and monetary fluctuations; |
■ | increases in competitive pressures among financial institutions and businesses offering similar products and services; |
■ | risks associated with recent negative events in the banking industry, and any legislative and/or bank regulatory actions, that could potentially impact earnings, liquidity and/or the availability of capital; |
■ | higher defaults in our loan and lease portfolio than we expect; |
■ | changes in management’s estimate of the adequacy of the allowance for credit losses; |
■ | risks associated with our growth and expansion strategy and related costs; |
■ | increased lending risks associated with our high concentration of real estate loans; |
■ | legislative or regulatory changes or changes in accounting principles, policies or guidelines; |
■ | technological changes; |
■ | failure to raise the debt limit on U.S. debt; |
■ | regulatory or judicial |
■ | the future impact of the COVID-19 virus or variants thereof; and |
■ | other factors and risks including those described under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this report and the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. |
For the Three Months Ended September 30, | ||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest Income / Expense | Average Yield / Rate | Average Balance | Interest Income / Expense | Average Yield / Rate | ||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Interest earnings deposits in other banks and federal funds sold | $ | 718,794 | $ | 4,159 | 2.30 | % | $ | 856,159 | $ | 328 | 0.15 | % | ||||||||||||
Securities:(1) | ||||||||||||||||||||||||
Taxable securities | 1,063,166 | 5,091 | 1.92 | % | 786,983 | 3,282 | 1.67 | % | ||||||||||||||||
Non-taxable securities(2) | 47,005 | 386 | 3.28 | % | 49,616 | 399 | 3.22 | % | ||||||||||||||||
Total investment securities | 1,110,171 | 5,477 | 1.96 | % | 836,599 | 3,681 | 1.76 | % | ||||||||||||||||
Loans:(3) | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | 1,224,689 | 15,179 | 4.92 | % | 1,046,626 | 11,255 | 4.27 | % | ||||||||||||||||
Agricultural | 715,286 | 9,243 | 5.13 | % | 640,330 | 8,301 | 5.14 | % | ||||||||||||||||
Residential and home equity | 375,699 | 3,836 | 4.05 | % | 338,520 | 3,858 | 4.52 | % | ||||||||||||||||
Construction | 164,664 | 2,468 | 5.95 | % | 175,906 | 2,300 | 5.19 | % | ||||||||||||||||
Total real estate | 2,480,338 | 30,726 | 4.91 | % | 2,201,382 | 25,714 | 4.63 | % | ||||||||||||||||
Commercial & industrial | 438,761 | 5,770 | 5.22 | % | 374,162 | 4,111 | 4.36 | % | ||||||||||||||||
Agricultural | 259,345 | 3,607 | 5.52 | % | 236,071 | 2,637 | 4.43 | % | ||||||||||||||||
Commercial leases | 93,051 | 1,365 | 5.82 | % | 96,690 | 1,363 | 5.59 | % | ||||||||||||||||
Consumer and other | 8,929 | 400 | 17.77 | % | 155,182 | 2,263 | 5.79 | % | ||||||||||||||||
Total loans and leases | 3,280,424 | 41,868 | 5.06 | % | 3,063,487 | 36,088 | 4.67 | % | ||||||||||||||||
Non-marketable securities | 15,549 | 209 | 5.33 | % | 15,549 | 244 | 6.23 | % | ||||||||||||||||
Total interest earning assets | 5,124,938 | 51,713 | 4.00 | % | 4,771,794 | 40,341 | 3.35 | % | ||||||||||||||||
Allowance for credit losses | (63,107 | ) | (60,268 | ) | ||||||||||||||||||||
Non-interest earning assets | 318,078 | 324,057 | ||||||||||||||||||||||
Total average assets | $ | 5,379,909 | $ | 5,035,583 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||
Interest bearing deposits: | ||||||||||||||||||||||||
Demand | $ | 1,101,830 | 445 | 0.16 | % | $ | 1,068,707 | 293 | 0.11 | % | ||||||||||||||
Savings and money market accounts | 1,588,234 | 476 | 0.12 | % | 1,385,430 | 346 | 0.10 | % | ||||||||||||||||
Certificates of deposit greater than $250,000 | 156,110 | 96 | 0.24 | % | 168,714 | 143 | 0.34 | % | ||||||||||||||||
Certificates of deposit less than $250,000 | 212,036 | 105 | 0.20 | % | 230,532 | 147 | 0.25 | % | ||||||||||||||||
Total interest bearing deposits | 3,058,210 | 1,122 | 0.15 | % | 2,853,383 | 929 | 0.13 | % | ||||||||||||||||
Short-term borrowings | - | - | 0.00 | % | - | - | 0.00 | % | ||||||||||||||||
Subordinated debentures | 10,310 | 134 | 5.16 | % | 10,310 | 78 | 3.00 | % | ||||||||||||||||
Total interest bearing liabilities | 3,068,520 | 1,256 | 0.16 | % | 2,863,693 | 1,007 | 0.14 | % | ||||||||||||||||
Non-interest bearing deposits | 1,764,266 | 1,655,738 | ||||||||||||||||||||||
Total funding | 4,832,786 | 1,256 | 0.10 | % | 4,519,431 | 1,007 | 0.09 | % | ||||||||||||||||
Other non-interest bearing liabilities | 77,389 | 68,564 | ||||||||||||||||||||||
Shareholders' equity | 469,734 | 447,588 | ||||||||||||||||||||||
Total average liabilities and shareholders' equity | $ | 5,379,909 | $ | 5,035,583 | ||||||||||||||||||||
Net interest income | $ | 50,457 | $ | 39,334 | ||||||||||||||||||||
Interest rate spread | 3.84 | % | 3.21 | % | ||||||||||||||||||||
Net interest margin(4) | 3.95 | % | 3.26 | % |
Three Months Ended March 31, | ||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest Income / Expense | Average Yield / Rate | Average Balance | Interest Income / Expense | Average Yield / Rate | ||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Interest earnings deposits in other banks and federal funds sold | $ | 521,147 | $ | 5,961 | 4.64 | % | $ | 760,080 | $ | 366 | 0.20 | % | ||||||||||||
Investment Securities:(1) | ||||||||||||||||||||||||
Taxable securities | 967,699 | 4,805 | 2.01 | % | 1,022,457 | 4,588 | 1.82 | % | ||||||||||||||||
Non-taxable securities(2) | 57,513 | 557 | 3.87 | % | 49,997 | 402 | 3.22 | % | ||||||||||||||||
Total investment securities | 1,025,212 | 5,362 | 2.12 | % | 1,072,454 | 4,990 | 1.89 | % | ||||||||||||||||
Loans:(3) | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | 1,280,959 | 16,649 | 5.27 | % | 1,151,611 | 13,276 | 4.68 | % | ||||||||||||||||
Agricultural | 715,756 | 9,614 | 5.45 | % | 680,230 | 7,793 | 4.65 | % | ||||||||||||||||
Residential and home equity | 387,369 | 4,095 | 4.29 | % | 353,371 | 3,301 | 3.79 | % | ||||||||||||||||
Construction | 169,913 | 2,937 | 7.01 | % | 191,684 | 2,072 | 4.38 | % | ||||||||||||||||
Total real estate | 2,553,997 | 33,295 | 5.29 | % | 2,376,896 | 26,442 | 4.51 | % | ||||||||||||||||
Commercial & industrial | 465,383 | 7,624 | 6.64 | % | 424,598 | 4,799 | 4.58 | % | ||||||||||||||||
Agricultural | 280,467 | 5,204 | 7.52 | % | 248,414 | 2,755 | 4.50 | % | ||||||||||||||||
Commercial leases | 116,948 | 1,805 | 6.26 | % | 94,855 | 1,416 | 6.05 | % | ||||||||||||||||
Consumer and other | 5,580 | 80 | 5.81 | % | 52,078 | 2,021 | 15.74 | % | ||||||||||||||||
Total loans and leases | 3,422,375 | 48,008 | 5.69 | % | 3,196,841 | 37,433 | 4.75 | % | ||||||||||||||||
Non-marketable securities | 15,549 | 301 | 7.85 | % | 15,549 | 305 | 7.96 | % | ||||||||||||||||
Total interest earning assets | 4,984,283 | 59,632 | 4.85 | % | 5,044,924 | 43,094 | 3.46 | % | ||||||||||||||||
Allowance for credit losses | (67,691 | ) | (61,022 | ) | ||||||||||||||||||||
Non-interest earning assets | 311,140 | 314,932 | ||||||||||||||||||||||
Total average assets | $ | 5,227,732 | $ | 5,298,834 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Interest bearing deposits: | ||||||||||||||||||||||||
Demand | $ | 1,068,504 | 444 | 0.17 | % | $ | 1,115,578 | 259 | 0.09 | % | ||||||||||||||
Savings and money market accounts | 1,561,684 | 2,503 | 0.65 | % | 1,517,234 | 342 | 0.09 | % | ||||||||||||||||
Certificates of deposit greater than $250,000 | 147,704 | 487 | 1.34 | % | 167,515 | 97 | 0.23 | % | ||||||||||||||||
Certificates of deposit less than $250,000 | 206,214 | 280 | 0.55 | % | 223,842 | 105 | 0.19 | % | ||||||||||||||||
Total interest bearing deposits | 2,984,106 | 3,714 | 0.50 | % | 3,024,169 | 803 | 0.11 | % | ||||||||||||||||
Short-term borrowings | 3 | - | 0.00 | % | 3 | - | 0.00 | % | ||||||||||||||||
Subordinated debentures | 10,310 | 196 | 7.71 | % | 10,310 | 82 | 3.23 | % | ||||||||||||||||
Total interest bearing liabilities | 2,994,419 | 3,910 | 0.53 | % | 3,034,482 | 885 | 0.12 | % | ||||||||||||||||
Non-interest bearing deposits | 1,663,152 | 1,722,597 | ||||||||||||||||||||||
Total funding | 4,657,571 | 3,910 | 0.34 | % | 4,757,079 | 885 | 0.08 | % | ||||||||||||||||
Other non-interest bearing liabilities | 72,710 | 76,061 | ||||||||||||||||||||||
Shareholders’ equity | 497,451 | 465,694 | ||||||||||||||||||||||
Total average liabilities and shareholders’ equity | $ | 5,227,732 | $ | 5,298,834 | ||||||||||||||||||||
Net interest income | $ | 55,722 | $ | 42,209 | ||||||||||||||||||||
Interest rate spread | 4.32 | % | 3.35 | % | ||||||||||||||||||||
Net interest margin(4) | 4.53 | % | 3.39 | % |
For the Nine Months Ended September 30, | ||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest Income / Expense | Average Yield / Rate | Average Balance | Interest Income / Expense | Average Yield / Rate | ||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Interest earnings deposits in other banks and federal funds sold | $ | 720,692 | $ | 5,934 | 1.10 | % | $ | 620,757 | $ | 595 | 0.13 | % | ||||||||||||
Securities:(1) | ||||||||||||||||||||||||
Taxable securities | 1,058,859 | 14,786 | 1.86 | % | 819,747 | 10,780 | 1.75 | % | ||||||||||||||||
Non-taxable securities(2) | 48,436 | 1,179 | 3.25 | % | 52,816 | 1,238 | 3.13 | % | ||||||||||||||||
Total investment securities | 1,107,295 | 15,965 | 1.92 | % | 872,563 | 12,018 | 1.84 | % | ||||||||||||||||
Loans:(3) | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | 1,178,731 | 41,986 | 4.76 | % | 1,005,970 | 36,602 | 4.86 | % | ||||||||||||||||
Agricultural | 699,205 | 25,545 | 4.88 | % | 633,874 | 22,884 | 4.83 | % | ||||||||||||||||
Residential and home equity | 365,062 | 10,728 | 3.93 | % | 337,307 | 10,191 | 4.04 | % | ||||||||||||||||
Construction | 187,181 | 7,075 | 5.05 | % | 186,337 | 6,447 | 4.63 | % | ||||||||||||||||
Total real estate | 2,430,179 | 85,334 | 4.69 | % | 2,163,488 | 76,124 | 4.70 | % | ||||||||||||||||
Commercial & industrial | 434,217 | 15,460 | 4.76 | % | 365,744 | 12,567 | 4.59 | % | ||||||||||||||||
Agricultural | 257,555 | 9,350 | 4.85 | % | 229,862 | 7,758 | 4.51 | % | ||||||||||||||||
Commercial leases | 92,914 | 4,158 | 5.98 | % | 100,347 | 4,135 | 5.51 | % | ||||||||||||||||
Consumer and other | 27,330 | 3,569 | 17.46 | % | 203,683 | 9,255 | 6.08 | % | ||||||||||||||||
Total loans and leases | 3,242,195 | 117,871 | 4.86 | % | 3,063,124 | 109,839 | 4.79 | % | ||||||||||||||||
Non-marketable securities | 15,549 | 732 | 6.29 | % | 14,451 | 646 | 5.98 | % | ||||||||||||||||
Total interest earning assets | 5,085,731 | 140,502 | 3.69 | % | 4,570,895 | 123,098 | 3.60 | % | ||||||||||||||||
Allowance for credit losses | (61,864 | ) | (59,971 | ) | ||||||||||||||||||||
Non-interest earning assets | 314,520 | 315,582 | ||||||||||||||||||||||
Total average assets | $ | 5,338,387 | $ | 4,826,506 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||
Interest bearing deposits: | ||||||||||||||||||||||||
Demand | $ | 1,111,513 | 1,023 | 0.12 | % | $ | 1,002,267 | 869 | 0.12 | % | ||||||||||||||
Savings and money market accounts | 1,550,334 | 1,179 | 0.10 | % | 1,336,826 | 1,136 | 0.11 | % | ||||||||||||||||
Certificates of deposit greater than $250,000 | 163,148 | 299 | 0.25 | % | 169,545 | 587 | 0.46 | % | ||||||||||||||||
Certificates of deposit less than $250,000 | 218,302 | 297 | 0.18 | % | 239,185 | 608 | 0.34 | % | ||||||||||||||||
Total interest bearing deposits | 3,043,297 | 2,798 | 0.12 | % | 2,747,823 | 3,200 | 0.16 | % | ||||||||||||||||
Short-term borrowings | 1 | - | 0.00 | % | - | - | 0.00 | % | ||||||||||||||||
Subordinated debentures | 10,310 | 319 | 4.14 | % | 10,310 | 236 | 3.06 | % | ||||||||||||||||
Total interest bearing liabilities | 3,053,608 | 3,117 | 0.14 | % | 2,758,133 | 3,436 | 0.17 | % | ||||||||||||||||
Non-interest bearing deposits | 1,740,859 | 1,567,089 | ||||||||||||||||||||||
Total funding | 4,794,467 | 3,117 | 0.09 | % | 4,325,222 | 3,436 | 0.11 | % | ||||||||||||||||
Other non-interest bearing liabilities | 77,953 | 64,439 | ||||||||||||||||||||||
Shareholders' equity | 465,967 | 436,845 | ||||||||||||||||||||||
Total average liabilities and shareholders' equity | $ | 5,338,387 | $ | 4,826,506 | ||||||||||||||||||||
Net interest income | $ | 137,385 | $ | 119,662 | ||||||||||||||||||||
Interest rate spread | 3.56 | % | 3.43 | % | ||||||||||||||||||||
Net interest margin(4) | 3.61 | % | 3.50 | % |
Three Months Ended September 30, 2022 compared with 2021 | Nine Months Ended September 30, 2022 compared with 2021 | |||||||||||||||||||||||
Increase (Decrease) Due to: | Increase (Decrease) Due to: | |||||||||||||||||||||||
(Dollars in thousands) | Volume | Rate | Net | Volume | Rate | Net | ||||||||||||||||||
Interest income: | ||||||||||||||||||||||||
Interest earnings deposits in other banks and federal funds sold | $ | (370 | ) | $ | 4,201 | $ | 3,831 | $ | 111 | $ | 5,228 | $ | 5,339 | |||||||||||
Securities: | ||||||||||||||||||||||||
Taxable securities | 1,272 | 537 | 1,809 | 3,305 | 701 | 4,006 | ||||||||||||||||||
Non-taxable securities | (57 | ) | 44 | (13 | ) | (127 | ) | 68 | (59 | ) | ||||||||||||||
Total securities | 1,214 | 582 | 1,796 | 3,178 | 769 | 3,947 | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial | 2,069 | 1,855 | 3,924 | 6,630 | (1,246 | ) | 5,384 | |||||||||||||||||
Agricultural | 1,122 | (180 | ) | 942 | 2,384 | 277 | 2,661 | |||||||||||||||||
Residential and home equity | 1,625 | (1,647 | ) | (22 | ) | 962 | (425 | ) | 537 | |||||||||||||||
Construction | (761 | ) | 929 | 168 | 29 | 599 | 628 | |||||||||||||||||
Total real estate | 4,055 | 957 | 5,012 | 10,006 | (796 | ) | 9,210 | |||||||||||||||||
Commercial & industrial | 775 | 884 | 1,659 | 2,424 | 469 | 2,893 | ||||||||||||||||||
Agricultural | 278 | 692 | 970 | 978 | 614 | 1,592 | ||||||||||||||||||
Commercial leases | (210 | ) | 212 | 2 | (429 | ) | 452 | 23 | ||||||||||||||||
Consumer and other | (12,215 | ) | 10,352 | (1,863 | ) | (16,453 | ) | 10,767 | (5,686 | ) | ||||||||||||||
Total loans | (7,316 | ) | 13,096 | 5,780 | (3,474 | ) | 11,506 | 8,032 | ||||||||||||||||
Non-marketable securities | 0 | (35 | ) | (35 | ) | 51 | 35 | 86 | ||||||||||||||||
Total interest income | (6,472 | ) | 17,844 | 11,372 | (135 | ) | 17,539 | 17,404 | ||||||||||||||||
Interest expense: | ||||||||||||||||||||||||
Interest bearing deposits: | ||||||||||||||||||||||||
Demand | 9 | 143 | 152 | 98 | 56 | 154 | ||||||||||||||||||
Savings and money market accounts | 55 | 75 | 130 | 218 | (175 | ) | 43 | |||||||||||||||||
Certificates of deposit greater than $250,000 | (10 | ) | (37 | ) | (47 | ) | (21 | ) | (267 | ) | (288 | ) | ||||||||||||
Certificates of deposit less than $250,000 | (11 | ) | (31 | ) | (42 | ) | (49 | ) | (262 | ) | (311 | ) | ||||||||||||
Total interest bearing deposits | 43 | 150 | 193 | 246 | (648 | ) | (402 | ) | ||||||||||||||||
Short-term borrowings | - | - | - | - | - | - | ||||||||||||||||||
Subordinated debentures | - | 56 | 56 | - | 83 | 83 | ||||||||||||||||||
Total interest expense | 43 | 206 | 249 | 246 | (565 | ) | (319 | ) | ||||||||||||||||
Net interest income | $ | (6,515 | ) | $ | 17,638 | $ | 11,123 | $ | (381 | ) | $ | 18,104 | $ | 17,723 |
Three Months Ended March 31, 2023 compared with 2022 | ||||||||||||
Increase (Decrease) Due to: | ||||||||||||
(Dollars in thousands) | Volume | Rate | Net | |||||||||
Interest income: | ||||||||||||
Interest earnings deposits in other banks and federal funds sold | $ | (844 | ) | $ | 6,439 | $ | 5,595 | |||||
Investment securities: | ||||||||||||
Taxable securities | (1,254 | ) | 1,471 | 217 | ||||||||
Non-taxable securities | 66 | 89 | 155 | |||||||||
Total investment securities | (1,188 | ) | 1,560 | 372 | ||||||||
Loans: | ||||||||||||
Real estate: | ||||||||||||
Commercial | 1,580 | 1,793 | 3,373 | |||||||||
Agricultural | 423 | 1,398 | 1,821 | |||||||||
Residential and home equity | 335 | 459 | 794 | |||||||||
Construction | (1,467 | ) | 2,332 | 865 | ||||||||
Total real estate | 872 | 5,981 | 6,853 | |||||||||
Commercial & industrial | 497 | 2,328 | 2,825 | |||||||||
Agricultural | 394 | 2,055 | 2,449 | |||||||||
Commercial leases | 340 | 49 | 389 | |||||||||
Consumer and other(1) | (1,138 | ) | (803 | ) | (1,941 | ) | ||||||
Total loans and leases | 965 | 9,610 | 10,575 | |||||||||
Non-marketable securities | - | (4 | ) | (4 | ) | |||||||
Total interest income | (1,067 | ) | 17,605 | 16,538 | ||||||||
Interest expense: | ||||||||||||
Interest bearing deposits: | ||||||||||||
Demand | (75 | ) | 260 | 185 | ||||||||
Savings and money market accounts | 10 | 2,151 | 2,161 | |||||||||
Certificates of deposit greater than $250,000 | (81 | ) | 471 | 390 | ||||||||
Certificates of deposit less than $250,000 | (57 | ) | 232 | 175 | ||||||||
Total interest bearing deposits | (203 | ) | 3,114 | 2,911 | ||||||||
Subordinated debentures | - | 114 | 114 | |||||||||
Total interest expense | (203 | ) | 3,228 | 3,025 | ||||||||
Net interest income | $ | (864 | ) | $ | 14,377 | $ | 13,513 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | $ Better / (Worse) | % Better / (Worse) | 2022 | 2021 | $ Better / (Worse) | % Better / (Worse) | ||||||||||||||||||||||||
Selected Income Statement Information: | ||||||||||||||||||||||||||||||||
Interest income | $ | 51,713 | $ | 40,341 | $ | 11,372 | 28.19 | % | $ | 140,502 | $ | 123,098 | $ | 17,404 | 14.14 | % | ||||||||||||||||
Interest expense | 1,256 | 1,007 | (249 | ) | (24.73 | %) | 3,117 | 3,436 | 319 | 9.28 | % | |||||||||||||||||||||
Net interest income | 50,457 | 39,334 | 11,123 | 28.28 | % | 137,385 | 119,662 | 17,723 | 14.81 | % | ||||||||||||||||||||||
Provision for credit losses | 1,500 | - | (1,500 | ) | N/A | 3,000 | 1,250 | (1,750 | ) | (140.00 | %) | |||||||||||||||||||||
Net interest income after provision for credit losses | 48,957 | 39,334 | 9,623 | 24.46 | % | 134,385 | 118,412 | 15,973 | 13.49 | % | ||||||||||||||||||||||
Non-interest income | 1,559 | 4,617 | (3,058 | ) | (66.23 | %) | 9,383 | 16,292 | (6,909 | ) | (42.41 | %) | ||||||||||||||||||||
Non-interest expense | 24,375 | 20,585 | (3,790 | ) | (18.41 | %) | 71,194 | 67,732 | (3,462 | ) | (5.11 | %) | ||||||||||||||||||||
Income before income tax expense | 26,141 | 23,366 | 2,775 | 11.88 | % | 72,574 | 66,972 | 5,602 | 8.36 | % | ||||||||||||||||||||||
Income tax expense | 6,605 | 5,864 | (741 | ) | (12.64 | %) | 17,537 | 16,604 | (933 | ) | (5.62 | %) | ||||||||||||||||||||
Net income | $ | 19,536 | $ | 17,502 | $ | 2,034 | 11.62 | % | $ | 55,037 | $ | 50,368 | $ | 4,669 | 9.27 | % |
Three Months Ended March 31, | ||||||||||||||||
(Dollars in thousands) | 2023 | 2022 | $ Better / (Worse) | % Better / (Worse) | ||||||||||||
Selected Income Statement Information: | ||||||||||||||||
Interest income | $ | 59,632 | $ | 43,094 | $ | 16,538 | 38.38 | % | ||||||||
Interest expense | 3,910 | 885 | (3,025 | ) | (341.81 | %) | ||||||||||
Net interest income | 55,722 | 42,209 | 13,513 | 32.01 | % | |||||||||||
Provision for credit losses | 1,500 | - | (1,500 | ) | N/A | |||||||||||
Net interest income after provision for credit losses | 54,222 | 42,209 | 12,013 | 28.46 | % | |||||||||||
Non-interest income | 3,460 | 4,312 | (852 | ) | (19.76 | %) | ||||||||||
Non-interest expense | 28,183 | 23,788 | (4,395 | ) | (18.48 | %) | ||||||||||
Income before income tax expense | 29,499 | 22,733 | 6,766 | 29.76 | % | |||||||||||
Income tax expense | 5,952 | 5,675 | (277 | ) | (4.88 | %) | ||||||||||
Net income | $ | 23,547 | $ | 17,058 | $ | 6,489 | 38.04 | % |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | ||||||
Available-for-Sale Securities | ||||||||
U.S. Treasury notes | $ | 4,941 | $ | 10,089 | ||||
U.S. Government-sponsored securities | 4,698 | 6,374 | ||||||
Mortgage-backed securities(1) | 156,453 | 251,120 | ||||||
Collateralized mortgage obligations(1) | 1,458 | 2,436 | ||||||
Corporate securities | 9,594 | - | ||||||
Other | 310 | 435 | ||||||
Total available-for-sale securities | $ | 177,454 | $ | 270,454 |
(Dollars in thousands) | March 31, 2023 | December 31, 2022 | ||||||
Available-for-Sale Securities | ||||||||
U.S. Treasury notes | $ | - | $ | 4,964 | ||||
U.S. Government-sponsored securities | 4,112 | 4,427 | ||||||
Mortgage-backed securities(1) | 103,697 | 132,528 | ||||||
Collateralized mortgage obligations(1) | 607 | 1,054 | ||||||
Corporate securities | 9,711 | 9,581 | ||||||
Other | 310 | 310 | ||||||
Total available-for-sale securities | $ | 118,437 | $ | 152,864 |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | ||||||
Held-to-Maturity Securities | ||||||||
Mortgage-backed securities(1) | $ | 709,541 | $ | 596,775 | ||||
Collateralized mortgage obligations(1) | 82,297 | 73,781 | ||||||
Municipal securities(2) | 60,434 | 66,496 | ||||||
Total held-to-maturity securities | $ | 852,272 | $ | 737,052 |
(Dollars in thousands) | March 31, 2023 | December 31, 2022 | ||||||
Held-to-Maturity Securities | ||||||||
Mortgage-backed securities(1) | $ | 695,083 | $ | 702,858 | ||||
Collateralized mortgage obligations(1) | 79,044 | 80,186 | ||||||
Municipal securities(2) | 75,867 | 61,909 | ||||||
Total held-to-maturity securities | $ | 849,994 | $ | 844,953 |
As of September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||
Within One Year | After One but Within Five Years | After Five but Within Ten Years | After Ten Years | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||
Securities available-for-sale | ||||||||||||||||||||||||||||||||||||||||
U.S. Treasury notes | $ | 4,941 | 2.38 | % | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | 4,941 | 2.38 | % | ||||||||||||||||||||
U.S. Government-sponsored securities | 7 | 1.74 | % | 81 | 3.97 | % | 436 | 3.01 | % | 4,174 | 2.79 | % | 4,698 | 2.83 | % | |||||||||||||||||||||||||
Mortgage-backed securities(1) | 16 | 3.13 | % | 15,725 | 2.27 | % | 17,961 | 2.40 | % | 122,751 | 1.74 | % | 156,453 | 1.87 | % | |||||||||||||||||||||||||
Collateralized mortgage obligations(1) | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 1,458 | 2.35 | % | 1,458 | 2.35 | % | |||||||||||||||||||||||||
Corporate securities | - | 0.00 | % | 4,795 | 1.59 | % | 4,799 | 1.72 | % | - | 0.00 | % | 9,594 | 1.65 | % | |||||||||||||||||||||||||
Other | 310 | 2.99 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 310 | 2.99 | % | |||||||||||||||||||||||||
Total securities available-for-sale | $ | 5,274 | 2.42 | % | $ | 20,601 | 2.12 | % | $ | 23,196 | 2.27 | % | $ | 128,383 | 1.78 | % | $ | 177,454 | 1.90 | % |
As of March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||
Within One Year | After One but Within Five Years | After Five but Within Ten Years | After Ten Years | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||
Securities available-for-sale | ||||||||||||||||||||||||||||||||||||||||
U.S. Government-sponsored securities | $ | 1 | 2.23 | % | $ | 86 | 5.89 | % | $ | 305 | 5.78 | % | $ | 3,720 | 5.44 | % | $ | 4,112 | 5.47 | % | ||||||||||||||||||||
Mortgage-backed securities(1) | 24 | 2.83 | % | 8,959 | 2.49 | % | 5,608 | 3.29 | % | 89,106 | 1.98 | % | 103,697 | 2.09 | % | |||||||||||||||||||||||||
Collateralized mortgage obligations(1) | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 607 | 2.29 | % | 607 | 2.29 | % | |||||||||||||||||||||||||
Corporate securities | - | 0.00 | % | 9,711 | 4.58 | % | - | 0.00 | % | - | 0.00 | % | 9,711 | 4.58 | % | |||||||||||||||||||||||||
Other | 310 | 1.85 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 310 | 1.85 | % | |||||||||||||||||||||||||
Total securities available-for-sale | $ | 335 | 1.92 | % | $ | 18,756 | 3.59 | % | $ | 5,913 | 3.42 | % | $ | 93,433 | 2.12 | % | $ | 118,437 | 2.42 | % |
As of March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||
Within One Year | After One but Within Five Years | After Five but Within Ten Years | After Ten Years | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||
Securities held-to-maturity | ||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities(1) | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | 17,265 | 1.28 | % | $ | 677,818 | 1.90 | % | $ | 695,083 | 1.88 | % | ||||||||||||||||||||
Collateralized mortgage obligations(1) | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 79,044 | 1.73 | % | 79,044 | 1.73 | % | |||||||||||||||||||||||||
Municipal securities | 283 | 0.69 | % | 11,174 | 2.77 | % | 13,083 | 3.56 | % | 51,720 | 1.28 | % | 76,260 | 1.89 | % | |||||||||||||||||||||||||
Total securities held-to-maturity | $ | 283 | 0.69 | % | $ | 11,174 | 2.77 | % | $ | 30,348 | 2.06 | % | $ | 808,582 | 1.84 | % | $ | 850,387 | 1.87 | % |
As of December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||
Within One Year | After One but Within Five Years | After Five but Within Ten Years | After Ten Years | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||
Securities available-for-sale | ||||||||||||||||||||||||||||||||||||||||
U.S. Treasury notes | $ | 4,964 | 2.37 | % | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | 4,964 | 2.37 | % | ||||||||||||||||||||
U.S. Government-sponsored securities | 3 | 2.17 | % | 53 | 2.29 | % | 380 | 4.52 | % | 3,991 | 4.52 | % | 4,427 | 4.29 | % | |||||||||||||||||||||||||
Mortgage-backed securities(1) | 13 | 2.82 | % | 16,460 | 2.31 | % | 15,156 | 2.41 | % | 100,899 | 1.82 | % | 132,528 | 1.95 | % | |||||||||||||||||||||||||
Collateralized mortgage obligations(1) | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 1,054 | 2.35 | % | 1,054 | 2.35 | % | |||||||||||||||||||||||||
Corporate securities | - | 0.00 | % | 9,581 | 3.13 | % | - | 0.00 | % | - | 0.00 | % | 9,581 | 3.13 | % | |||||||||||||||||||||||||
Other | 310 | 4.60 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 310 | 4.60 | % | |||||||||||||||||||||||||
Total securities available-for-sale | $ | 5,290 | 2.50 | % | $ | 26,094 | 2.61 | % | $ | 15,536 | 2.46 | % | $ | 105,944 | 1.93 | % | $ | 152,864 | 2.11 | % |
As of September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||
Within One Year | After One but Within Five Years | After Five but Within Ten Years | After Ten Years | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||
Securities held-to-maturity | ||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities(1) | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | 13,906 | 0.89 | % | $ | 695,635 | 1.88 | % | $ | 709,541 | 1.86 | % | ||||||||||||||||||||
Collateralized Mortgage Obligations(1) | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 82,297 | 1.80 | % | 82,297 | 1.80 | % | |||||||||||||||||||||||||
Municipal securities | 883 | 4.93 | % | 7,484 | 3.40 | % | 15,000 | 3.43 | % | 37,460 | 3.52 | % | 60,827 | 3.50 | % | |||||||||||||||||||||||||
Total securities held-to-maturity | $ | 883 | 4.93 | % | $ | 7,484 | 3.40 | % | $ | 28,906 | 2.06 | % | $ | 815,392 | 1.95 | % | $ | 852,665 | 1.97 | % |
As of December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||
Within One Year | After One but Within Five Years | After Five but Within Ten Years | After Ten Years | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||
Securities held-to-maturity | ||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities(1) | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | 18,197 | 1.22 | % | $ | 684,661 | 1.90 | % | $ | 702,858 | 1.88 | % | ||||||||||||||||||||
Collateralized mortgage obligations(1) | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 80,186 | 1.80 | % | 80,186 | 1.80 | % | |||||||||||||||||||||||||
Municipal securities | 883 | 5.92 | % | 8,058 | 3.98 | % | 15,670 | 3.70 | % | 37,691 | 4.83 | % | 62,302 | 4.45 | % | |||||||||||||||||||||||||
Total securities held-to-maturity | $ | 883 | 5.92 | % | $ | 8,058 | 3.98 | % | $ | 33,867 | 2.37 | % | $ | 802,538 | 2.03 | % | $ | 845,346 | 2.07 | % |
As of December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
Within One Year | After One but Within Five Years | After Five but Within Ten Years | After Ten Years | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||
Securities available-for-sale | ||||||||||||||||||||||||||||||||||||||||
U.S. Treasury notes | $ | 5,028 | 2.33 | % | $ | 5,061 | 2.38 | % | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | 10,089 | 2.36 | % | ||||||||||||||||||||
U.S. Government-sponsored securities | 2 | 1.80 | % | 148 | 2.29 | % | 512 | 1.55 | % | 5,712 | 1.26 | % | 6,374 | 1.30 | % | |||||||||||||||||||||||||
Mortgage-backed securities(1) | 13 | 1.50 | % | 21,155 | 2.36 | % | 50,554 | 2.36 | % | 179,398 | 1.61 | % | 251,120 | 1.83 | % | |||||||||||||||||||||||||
Collateralized mortgage obligations(1) | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 2,436 | 2.30 | % | 2,436 | 2.30 | % | |||||||||||||||||||||||||
Other | 435 | 3.31 | % | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 435 | 3.31 | % | |||||||||||||||||||||||||
Total securities available-for-sale | $ | 5,478 | 2.41 | % | $ | 26,364 | 2.36 | % | $ | 51,066 | 2.35 | % | $ | 187,546 | 1.61 | % | $ | 270,454 | 1.84 | % |
As of December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
Within One Year | After One but Within Five Years | After Five but Within Ten Years | After Ten Years | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||
Securities held-to-maturity | ||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities(1) | $ | - | 0.00 | % | $ | - | 0.00 | % | $ | 10,641 | 0.41 | % | $ | 586,134 | 1.72 | % | $ | 596,775 | 1.70 | % | ||||||||||||||||||||
Collateralized Mortgage Obligations(1) | - | 0.00 | % | - | 0.00 | % | - | 0.00 | % | 73,781 | 1.71 | % | 73,781 | 1.71 | % | |||||||||||||||||||||||||
Municipal securities | 308 | 1.10 | % | 8,487 | 2.19 | % | 18,433 | 3.42 | % | 39,268 | 4.52 | % | 66,496 | 3.90 | % | |||||||||||||||||||||||||
Total securities held-to-maturity | $ | 308 | 1.10 | % | $ | 8,487 | 2.19 | % | $ | 29,074 | 2.32 | % | $ | 699,183 | 1.88 | % | $ | 737,052 | 1.90 | % |
September 30, 2022 | December 31, 2021 | |||||||||||||||
(Dollars in thousands) | Dollars | Percent of Total | Dollars | Percent of Total | ||||||||||||
Gross Loans and Leases | ||||||||||||||||
Real estate: | ||||||||||||||||
Commercial | $ | 1,246,805 | 37.41 | % | $ | 1,167,516 | 35.95 | % | ||||||||
Agricultural | 722,448 | 21.68 | % | 672,830 | 20.72 | % | ||||||||||
Residential and home equity | 377,249 | 11.32 | % | 350,581 | 10.79 | % | ||||||||||
Construction | 169,624 | 5.09 | % | 177,163 | 5.45 | % | ||||||||||
Total real estate | 2,516,126 | 75.50 | % | 2,368,090 | 72.91 | % | ||||||||||
Commercial & industrial | 454,185 | 13.63 | % | 427,799 | 13.17 | % | ||||||||||
Agricultural | 260,296 | 7.81 | % | 276,684 | 8.52 | % | ||||||||||
Commercial leases | 94,089 | 2.83 | % | 96,971 | 2.99 | % | ||||||||||
Consumer and other(1) | 7,776 | 0.23 | % | 78,367 | 2.41 | % | ||||||||||
Total gross loans and leases | $ | 3,332,472 | 100.00 | % | $ | 3,247,911 | 100.00 | % |
March 31, 2023 | December 31, 2022 | |||||||||||||||
(Dollars in thousands) | Dollars | Percent of Total | Dollars | Percent of Total | ||||||||||||
Gross Loans and Leases | ||||||||||||||||
Real estate: | ||||||||||||||||
Commercial | $ | 1,312,745 | 38.19 | % | $ | 1,328,691 | 37.73 | % | ||||||||
Agricultural | 707,412 | 20.58 | % | 726,938 | 20.64 | % | ||||||||||
Residential and home equity | 387,370 | 11.27 | % | 387,753 | 11.01 | % | ||||||||||
Construction | 153,394 | 4.46 | % | 166,538 | 4.73 | % | ||||||||||
Total real estate | 2,560,921 | 74.50 | % | 2,609,920 | 74.11 | % | ||||||||||
Commercial & industrial | 472,189 | 13.74 | % | 478,758 | 13.59 | % | ||||||||||
Agricultural | 275,785 | 8.02 | % | 314,525 | 8.93 | % | ||||||||||
Commercial leases | 123,314 | 3.59 | % | 112,629 | 3.20 | % | ||||||||||
Consumer and other | 5,382 | 0.15 | % | 5,886 | 0.17 | % | ||||||||||
Total gross loans and leases | $ | 3,437,591 | 100.00 | % | $ | 3,521,718 | 100.00 | % |
Loan Contractual Maturity | ||||||||||||||||||||
(Dollars in thousands) | One Year or Less | After One But Within Five Years | After Five Years But Within Fifteen Years | After Fifteen Years | Total | |||||||||||||||
Gross loan and leases: | ||||||||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial | $ | 54,825 | $ | 300,999 | $ | 853,261 | $ | 37,720 | $ | 1,246,805 | ||||||||||
Agricultural | 26,331 | 155,660 | 466,352 | 74,105 | 722,448 | |||||||||||||||
Residential and home equity | 407 | 4,616 | 117,436 | 254,790 | 377,249 | |||||||||||||||
Construction | 105,343 | 64,281 | - | - | 169,624 | |||||||||||||||
Total real estate | 186,906 | 525,556 | 1,437,049 | 366,615 | 2,516,126 | |||||||||||||||
Commercial & industrial | 180,294 | 206,003 | 61,714 | 6,174 | 454,185 | |||||||||||||||
Agricultural | 164,616 | 79,574 | 16,106 | - | 260,296 | |||||||||||||||
Commercial leases | 7,299 | 32,471 | 54,319 | - | 94,089 | |||||||||||||||
Consumer and other(1) | 707 | 5,639 | 1,430 | - | 7,776 | |||||||||||||||
Total gross loans and leases | $ | 539,822 | $ | 849,243 | $ | 1,570,618 | $ | 372,789 | $ | 3,332,472 | ||||||||||
Rate Structure for Loans | ||||||||||||||||||||
Fixed Rate | $ | 87,323 | $ | 354,357 | $ | 1,188,033 | $ | 241,872 | $ | 1,871,585 | ||||||||||
Adjustable Rate | 452,499 | 494,886 | 382,585 | 130,917 | 1,460,887 | |||||||||||||||
Total gross loans and leases | $ | 539,822 | $ | 849,243 | $ | 1,570,618 | $ | 372,789 | $ | 3,332,472 |
Loan Contractual Maturity | ||||||||||||||||||||
(Dollars in thousands) | One Year or Less | After One But Within Five Years | After Five Years But Within Fifteen Years | After Fifteen Years | Total | |||||||||||||||
Gross loan and leases: | ||||||||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial | $ | 49,850 | $ | 360,141 | $ | 866,582 | $ | 36,172 | $ | 1,312,745 | ||||||||||
Agricultural | 21,983 | 188,884 | 420,950 | 75,595 | 707,412 | |||||||||||||||
Residential and home equity | 359 | 4,209 | 117,774 | 265,028 | 387,370 | |||||||||||||||
Construction | 65,460 | 87,934 | - | - | 153,394 | |||||||||||||||
Total real estate | 137,652 | 641,168 | 1,405,306 | 376,795 | 2,560,921 | |||||||||||||||
Commercial & industrial | 184,852 | 211,857 | 69,404 | 6,076 | 472,189 | |||||||||||||||
Agricultural | 158,681 | 97,633 | 19,471 | - | 275,785 | |||||||||||||||
Commercial leases | 6,125 | 45,975 | 71,214 | - | 123,314 | |||||||||||||||
Consumer and other | 865 | 3,457 | 1,060 | - | 5,382 | |||||||||||||||
Total gross loans and leases | $ | 488,175 | $ | 1,000,090 | $ | 1,566,455 | $ | 382,871 | $ | 3,437,591 | ||||||||||
Rate Structure for Loans | ||||||||||||||||||||
Fixed Rate | $ | 230,809 | $ | 506,642 | $ | 840,918 | $ | 188,726 | $ | 1,767,095 | ||||||||||
Adjustable Rate | 257,366 | 493,448 | 725,537 | 194,145 | 1,670,496 | |||||||||||||||
Total gross loans and leases | $ | 488,175 | $ | 1,000,090 | $ | 1,566,455 | $ | 382,871 | $ | 3,437,591 |
(Dollars in thousands) | March 31, 2023 | December 31, 2022 | ||||||
Non-performing assets: | ||||||||
Non-accrual loans and leases | ||||||||
Real estate: | ||||||||
Commercial | $ | 387 | $ | 403 | ||||
Agricultural | - | - | ||||||
Residential and home equity | - | - | ||||||
Construction | - | 168 | ||||||
Total real estate | 387 | 571 | ||||||
Commercial & industrial | - | - | ||||||
Agricultural | - | - | ||||||
Commercial leases | - | - | ||||||
Consumer and other | - | - | ||||||
Total non-performing loans and leases | $ | 387 | $ | 571 | ||||
Other real estate owned (“OREO”) | $ | 873 | $ | 873 | ||||
Total non-performing assets | $ | 1,260 | $ | 1,444 | ||||
Selected ratios: | ||||||||
Non-performing loans to total loans and leases | 0.01 | % | 0.02 | % | ||||
Non-performing assets to total assets | 0.02 | % | 0.03 | % |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | ||||||
Non-performing assets: | ||||||||
Non-accrual loans and leases, not TDRs | ||||||||
Real estate: | ||||||||
Commercial | $ | 411 | $ | - | ||||
Agricultural | - | 18 | ||||||
Residential and home equity | - | - | ||||||
Construction | - | - | ||||||
Total real estate | 411 | 18 | ||||||
Commercial & industrial | - | - | ||||||
Agricultural | - | - | ||||||
Commercial leases | - | - | ||||||
Consumer and other | - | - | ||||||
Subtotal | 411 | 18 | ||||||
Non-accrual loans and leases, are TDRs | ||||||||
Real estate: | ||||||||
Commercial | - | - | ||||||
Agricultural | - | 498 | ||||||
Residential and home equity | - | - | ||||||
Construction | - | - | ||||||
Total real estate | - | 498 | ||||||
Commercial & industrial | - | - | ||||||
Agricultural | - | - | ||||||
Commercial leases | - | - | ||||||
Consumer and other | - | - | ||||||
Subtotal | - | 498 | ||||||
Total non-performing loans and leases | $ | 411 | $ | 516 | ||||
Other real estate owned ("OREO") | $ | 873 | $ | 873 | ||||
Total non-performing assets | $ | 1,284 | $ | 1,389 | ||||
Performing TDRs | $ | 1,325 | $ | 1,824 |
Nine Months Ended September 30, | ||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Allowance for credit losses: | ||||||||
Balance at beginning of year | $ | 61,007 | $ | 58,862 | ||||
Provision / (recapture) for credit losses | 2,606 | 1,250 | ||||||
Charge-offs: | ||||||||
Real estate: | ||||||||
Commercial | - | - | ||||||
Agricultural | - | - | ||||||
Residential and home equity | - | - | ||||||
Construction | - | - | ||||||
Total real estate | - | - | ||||||
Commercial & industrial | (324 | ) | - | |||||
Agricultural | - | - | ||||||
Commercial leases | - | - | ||||||
Consumer and other | (38 | ) | (33 | ) | ||||
Total charge-offs | (362 | ) | (33 | ) | ||||
Recoveries: | ||||||||
Real estate: | ||||||||
Commercial | - | - | ||||||
Agricultural | - | - | ||||||
Residential and home equity | 125 | 91 | ||||||
Construction | - | - | ||||||
Total real estate | 125 | 91 | ||||||
Commercial & industrial | 176 | 83 | ||||||
Agricultural | 51 | 29 | ||||||
Commercial leases | - | - | ||||||
Consumer and other | 14 | 21 | ||||||
Total recoveries | 366 | 224 | ||||||
Net recoveries / charge-offs | 4 | 191 | ||||||
Balance at end of period | $ | 63,617 | $ | 60,303 | ||||
Selected financial information: | ||||||||
Gross loans held for investment | $ | 3,332,472 | $ | 3,151,508 | ||||
Average loans | 3,242,195 | 3,063,124 | ||||||
Non-performing loans | 411 | 516 | ||||||
Allowance for credit losses to non-performing loans | 15478.59 | % | 11686.63 | % | ||||
Net (recoveries)/charge-offs to average loans | 0.00 | % | (0.01 | )% | ||||
Provision for credit losses to average loans | 0.08 | % | 0.04 | % | ||||
Allowance for credit losses to loans held for investment | 1.91 | % | 1.91 | % |
Three Months Ended March 31, | ||||||||
(Dollars in thousands) | 2023 | 2022 | ||||||
Allowance for credit losses: | ||||||||
Balance at beginning of year | $ | 66,885 | $ | 61,007 | ||||
Provision for credit losses | 1,500 | - | ||||||
Charge-offs: | ||||||||
Real estate: | ||||||||
Commercial | - | - | ||||||
Agricultural | - | - | ||||||
Residential and home equity | (14 | ) | - | |||||
Construction | - | - | ||||||
Total real estate | (14 | ) | - | |||||
Commercial & industrial | - | - | ||||||
Agricultural | - | - | ||||||
Commercial leases | - | - | ||||||
Consumer and other | (10 | ) | (9 | ) | ||||
Total charge-offs | (24 | ) | (9 | ) | ||||
Recoveries: | ||||||||
Real estate: | ||||||||
Commercial | 170 | - | ||||||
Agricultural | - | - | ||||||
Residential and home equity | 10 | 14 | ||||||
Construction | - | - | ||||||
Total real estate | 180 | 14 | ||||||
Commercial & industrial | 19 | 16 | ||||||
Agricultural | 1 | 2 | ||||||
Commercial leases | - | - | ||||||
Consumer and other | 12 | 2 | ||||||
Total recoveries | 212 | 34 | ||||||
Net recoveries / (charge-offs) | 188 | 25 | ||||||
Balance at end of year | $ | 68,573 | $ | 61,032 | ||||
Selected financial information: | ||||||||
Net loans and leases held for investment | $ | 3,427,133 | $ | 3,237,619 | ||||
Average loans and leases | 3,422,375 | 3,196,841 | ||||||
Non-performing loans and leases | 387 | 437 | ||||||
Allowance for credit losses to non-performing loans and leases | 17719.12 | % | 13966.13 | % | ||||
Net (recoveries)/charge-offs to average loans and leases | (0.01 | %) | 0.00 | % | ||||
Provision for credit losses to average loans and leases | 0.04 | % | 0.00 | % | ||||
Allowance for credit losses to gross loans and leases held-for-investment | 1.99 | % | 1.88 | % |
September 30, 2022 | December 31, 2021 | |||||||||||||||
(Dollars in thousands) | Dollars | Percent of Total | Dollars | Percent of Total | ||||||||||||
Allowance for credit losses: | ||||||||||||||||
Real estate: | ||||||||||||||||
Commercial | $ | 16,540 | 37.41 | % | $ | 28,536 | 35.95 | % | ||||||||
Agricultural | 16,560 | 21.68 | % | 9,613 | 20.72 | % | ||||||||||
Residential and home equity | 6,865 | 11.32 | % | 2,847 | 10.79 | % | ||||||||||
Construction | 2,995 | 5.09 | % | 1,456 | 5.45 | % | ||||||||||
Total real estate | 42,960 | 75.50 | % | 42,452 | 72.91 | % | ||||||||||
Commercial & Industrial | 10,392 | 13.63 | % | 11,489 | 13.17 | % | ||||||||||
Agricultural | 8,523 | 7.81 | % | 5,465 | 8.52 | % | ||||||||||
Commercial leases | 1,588 | 2.83 | % | 938 | 2.99 | % | ||||||||||
Consumer and other | 154 | 0.23 | % | 663 | 2.41 | % | ||||||||||
Total allowance for credit losses | $ | 63,617 | 100.00 | % | $ | 61,007 | 100.00 | % |
March 31, 2023 | December 31, 2022 | |||||||||||||||
(Dollars in thousands) | Dollars | Percent of Each Loan Type to Total Loans | Dollars | Percent of Each Loan Type to Total Loans | ||||||||||||
Allowance for credit losses: | ||||||||||||||||
Real estate: | ||||||||||||||||
Commercial | $ | 24,253 | 38.19 | % | $ | 18,055 | 37.73 | % | ||||||||
Agricultural | 8,441 | 20.58 | % | 14,496 | 20.64 | % | ||||||||||
Residential and home equity | 7,334 | 11.27 | % | 7,508 | 11.01 | % | ||||||||||
Construction | 2,785 | 4.46 | % | 3,026 | 4.73 | % | ||||||||||
Total real estate | 42,813 | 74.50 | % | 43,085 | 74.11 | % | ||||||||||
Commercial & industrial | 11,346 | 13.74 | % | 11,503 | 13.59 | % | ||||||||||
Agricultural | 12,542 | 8.02 | % | 10,202 | 8.93 | % | ||||||||||
Commercial leases | 1,720 | 3.59 | % | 1,924 | 3.20 | % | ||||||||||
Consumer and other | 152 | 0.15 | % | 171 | 0.17 | % | ||||||||||
Total allowance for credit losses | $ | 68,573 | 100.00 | % | $ | 66,885 | 100.00 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest Expense | Average Rate | Average Balance | Interest Expense | Average Rate | ||||||||||||||||||
Total deposits: | ||||||||||||||||||||||||
Interest bearing deposits: | ||||||||||||||||||||||||
Demand | $ | 1,111,513 | 1,023 | 0.12 | % | $ | 1,002,267 | $ | 869 | 0.12 | % | |||||||||||||
Savings and money market | 1,550,334 | 1,179 | 0.10 | % | 1,336,826 | 1,136 | 0.11 | % | ||||||||||||||||
Certificates of deposit greater than $250,000 | 163,148 | 299 | 0.25 | % | 169,545 | 587 | 0.46 | % | ||||||||||||||||
Certificates of deposit less than $250,000 | 218,302 | 297 | 0.18 | % | 239,185 | 608 | 0.34 | % | ||||||||||||||||
Total interest-bearing deposits | 3,043,297 | 2,798 | 0.12 | % | 2,747,823 | 3,200 | 0.16 | % | ||||||||||||||||
Non-interest bearing deposits | 1,740,859 | 1,567,089 | ||||||||||||||||||||||
Total deposits | $ | 4,784,156 | $ | 2,798 | 0.08 | % | $ | 4,314,912 | $ | 3,200 | 0.10 | % |
Three Months Ended March 31, | ||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest Expense | Average Rate | Average Balance | Interest Expense | Average Rate | ||||||||||||||||||
Total deposits: | ||||||||||||||||||||||||
Interest bearing deposits: | ||||||||||||||||||||||||
Demand | $ | 1,068,504 | $ | 444 | 0.17 | % | $ | 1,115,578 | $ | 259 | 0.09 | % | ||||||||||||
Savings and money market | 1,561,684 | 2,503 | 0.65 | % | 1,517,234 | 342 | 0.09 | % | ||||||||||||||||
Certificates of deposit greater than $250,000 | 147,704 | 487 | 1.34 | % | 167,515 | 97 | 0.23 | % | ||||||||||||||||
Certificates of deposit less than $250,000 | 206,214 | 280 | 0.55 | % | 223,842 | 105 | 0.19 | % | ||||||||||||||||
Total interest bearing deposits | 2,984,106 | 3,714 | 0.50 | % | 3,024,169 | 803 | 0.11 | % | ||||||||||||||||
Non-interest bearing deposits | 1,663,152 | 1,722,597 | ||||||||||||||||||||||
Total deposits | $ | 4,647,258 | $ | 3,714 | 0.32 | % | $ | 4,746,766 | $ | 803 | 0.07 | % |
September 30, | December 31, | |||||||
(Dollars in thousands) | 2022 | 2021 | ||||||
Deposits greater than $250,000 | $ | 2,990,165 | $ | 2,708,576 | ||||
Certificates of deposit greater than $250,000, by maturity: | ||||||||
Less than 3 months | 58,384 | 59,591 | ||||||
3 months to 6 months | 38,722 | 37,182 | ||||||
6 months to 12 months | 43,161 | 59,945 | ||||||
More than 12 months | 11,875 | 12,147 | ||||||
Total certificates of deposit greater than $250,000 | $ | 152,142 | $ | 168,865 | ||||
Total deposits greater than $250,000 | $ | 3,142,307 | $ | 2,877,441 |
March 31, | December 31, | |||||||
(Dollars in thousands) | 2023 | 2022 | ||||||
Non-Maturity Deposits greater than $250,000 | $ | 2,549,674 | $ | 2,872,754 | ||||
Certificates of deposit greater than $250,000, by maturity: | ||||||||
Less than 3 months | 38,866 | 45,078 | ||||||
3 months to 6 months | 30,924 | 30,426 | ||||||
6 months to 12 months | 81,347 | 44,189 | ||||||
More than 12 months | 16,618 | 9,153 | ||||||
Total certificates of deposit greater than $250,000 | $ | 167,755 | $ | 128,846 | ||||
Total deposits greater than $250,000 | $ | 2,717,429 | $ | 3,001,600 |
(Dollars in thousands) | Minimum to be Categorized as "Well Capitalized" | Minimum to be Categorized as "Adequately Capitalized" | September 30, 2022 | December 31, 2021 | ||||||||||||
Farmers & Merchants Bancorp | ||||||||||||||||
CET1 capital to risk-weighted assets | N/A | 4.50 | % | 11.82 | % | 11.68 | % | |||||||||
Tier 1 capital to risk-weighted assets | N/A | 6.00 | % | 12.06 | % | 11.94 | % | |||||||||
Risk-based capital to risk-weighted assets | N/A | 8.00 | % | 13.32 | % | 13.19 | % | |||||||||
Tier 1 leverage capital ratio | N/A | 4.00 | % | 9.12 | % | 8.92 | % | |||||||||
Farmers & Merchants Bank | ||||||||||||||||
CET1 capital to risk-weighted assets | 6.50 | % | 4.50 | % | 12.04 | % | 11.91 | % | ||||||||
Tier 1 capital to risk-weighted assets | 8.00 | % | 6.00 | % | 12.04 | % | 11.91 | % | ||||||||
Risk-based capital to risk-weighted assets | 10.00 | % | 8.00 | % | 13.30 | % | 13.17 | % | ||||||||
Tier 1 leverage capital ratio | 5.00 | % | 4.00 | % | 9.12 | % | 8.91 | % |
March 31, 2023 | ||||||||||||||||||||||||
Actual | Required for Capital Adequacy Purposes | Minimum to be Categorized as “Well Capitalized” Under Prompt Corrective Action Regulation | ||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||
Farmers & Merchants Bancorp | ||||||||||||||||||||||||
CET1 capital to risk-weighted assets | $ | 510,441 | 12.19 | % | $ | 188,435 | 4.50 | % | N/A | N/A | ||||||||||||||
Tier 1 capital to risk-weighted assets | 520,441 | 12.43 | % | 251,247 | 6.00 | % | N/A | N/A | ||||||||||||||||
Risk-based capital to risk-weighted assets | 573,015 | 13.68 | % | 334,996 | 8.00 | % | N/A | N/A | ||||||||||||||||
Tier 1 leverage capital ratio | 520,441 | 9.94 | % | 209,497 | 4.00 | % | N/A | N/A | ||||||||||||||||
Farmers & Merchants Bank | ||||||||||||||||||||||||
CET1 capital to risk-weighted assets | $ | 521,449 | 12.45 | % | $ | 188,432 | 4.50 | % | $ | 272,179 | 6.50 | % | ||||||||||||
Tier 1 capital to risk-weighted assets | 521,449 | 12.45 | % | 251,242 | 6.00 | % | 334,990 | 8.00 | % | |||||||||||||||
Risk-based capital to risk-weighted assets | 574,022 | 13.71 | % | 334,990 | 8.00 | % | 418,737 | 10.00 | % | |||||||||||||||
Tier 1 leverage capital ratio | 521,449 | 9.96 | % | 209,405 | 4.00 | % | 261,756 | 5.00 | % |
December 31, 2022 | ||||||||||||||||||||||||
Actual | Required for Capital Adequacy Purposes | Minimum to be Categorized as “Well Capitalized” Under Prompt Corrective Action Regulation | ||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||
Farmers & Merchants Bancorp | ||||||||||||||||||||||||
CET1 capital to risk-weighted assets | $ | 493,438 | 11.57 | % | $ | 191,984 | 4.50 | % | N/A | N/A | ||||||||||||||
Tier 1 capital to risk-weighted assets | 503,438 | 11.80 | % | 255,978 | 6.00 | % | N/A | N/A | ||||||||||||||||
Risk-based capital to risk-weighted assets | 556,964 | 13.06 | % | 341,305 | 8.00 | % | N/A | N/A | ||||||||||||||||
Tier 1 leverage capital ratio | 503,438 | 9.36 | % | 215,201 | 4.00 | % | N/A | N/A | ||||||||||||||||
Farmers & Merchants Bank | ||||||||||||||||||||||||
CET1 capital to risk-weighted assets | $ | 502,838 | 11.79 | % | $ | 191,970 | 4.50 | % | $ | 277,290 | 6.50 | % | ||||||||||||
Tier 1 capital to risk-weighted assets | 502,838 | 11.79 | % | 255,960 | 6.00 | % | 341,280 | 8.00 | % | |||||||||||||||
Risk-based capital to risk-weighted assets | 556,361 | 13.04 | % | 341,280 | 8.00 | % | 426,600 | 10.00 | % | |||||||||||||||
Tier 1 leverage capital ratio | 502,838 | 9.35 | % | 215,018 | 4.00 | % | 268,772 | 5.00 | % |
Amount of Commitment Expiration per Period | ||||||||||||||||||||
(Dollars in thousands) | Total Committed Amount | Less than One Year | One to Three Years | Three to Five Years | After Five Years | |||||||||||||||
Off-balance sheet commitments | ||||||||||||||||||||
Commitments to extend credit | $ | 1,128,340 | $ | 401,604 | $ | 477,113 | $ | 46,626 | $ | 202,997 | ||||||||||
Standby letters of credit | 16,629 | 10,403 | 4,326 | 1,470 | 430 | |||||||||||||||
Total off-balance sheet commitments | $ | 1,144,969 | $ | 412,007 | $ | 481,439 | $ | 48,096 | $ | 203,427 |
Amount of Commitment Expiration per Period | ||||||||||||||||||||
(Dollars in thousands) | Total Committed Amount | Less than One Year | One to Three Years | Three to Five Years | After Five Years | |||||||||||||||
Off-balance sheet commitments | ||||||||||||||||||||
Commitments to extend credit | $ | 1,174,664 | $ | 410,299 | $ | 202,048 | $ | 521,370 | $ | 40,947 | ||||||||||
Standby letters of credit | 16,821 | 12,317 | 2,604 | 1,470 | 430 | |||||||||||||||
Total off-balance sheet commitments | $ | 1,191,485 | $ | 422,616 | $ | 204,652 | $ | 522,840 | $ | 41,377 |
September 30, 2022 | ||||||||||||||||||||
(Dollars in thousands) | Total Credit Line Limit | Current Credit Line Available | Outstanding Amount | Remaining Credit Line Available | Value of Collateral Pledged | |||||||||||||||
Additional liquidity sources: | ||||||||||||||||||||
Federal Home Loan Bank | $ | 766,011 | $ | 766,011 | $ | - | $ | 766,011 | $ | 1,183,540 | ||||||||||
Federal Reserve BIC | 657,350 | 657,350 | - | 657,350 | 890,564 | |||||||||||||||
FHLB Fed Funds | 18,000 | 18,000 | - | 18,000 | - | |||||||||||||||
US Bank Fed Funds | 35,000 | 35,000 | - | 35,000 | - | |||||||||||||||
MUFG Union Bank Fed Funds | 15,000 | 15,000 | - | 15,000 | - | |||||||||||||||
PCBB Fed Funds | 50,000 | 50,000 | - | 50,000 | - | |||||||||||||||
Total additional liquidity sources | $ | 1,541,361 | $ | 1,541,361 | $ | - | $ | 1,541,361 | $ | 2,074,104 |
March 31, 2023 | ||||||||||||||||||||
(Dollars in thousands) | Total Credit Line Limit | Current Credit Line Available | Outstanding Amount | Remaining Credit Line Available | Value of Collateral Pledged | |||||||||||||||
Additional liquidity sources: | ||||||||||||||||||||
Federal Home Loan Bank | $ | 772,741 | $ | 772,741 | $ | - | $ | 772,741 | $ | 1,234,519 | ||||||||||
Federal Reserve BIC | 656,531 | 656,531 | - | 656,531 | 881,475 | |||||||||||||||
FHLB Fed Funds | 18,000 | 18,000 | - | 18,000 | - | |||||||||||||||
US Bank Fed Funds | 50,000 | 50,000 | - | 50,000 | - | |||||||||||||||
PCBB Fed Funds | 50,000 | 50,000 | - | 50,000 | - | |||||||||||||||
Total additional liquidity sources | $ | 1,547,272 | $ | 1,547,272 | $ | - | $ | 1,547,272 | $ | 2,115,994 |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. | Defaults upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
Exhibit Number | Description |
Employment Agreement effective | |
Employment Agreement effective April 1, 2023, between Farmers & Merchants Bank of Central California and John W. Weubbe, filed on Registrant’s Form 10-Q for the quarter ended March 31, 2023. | |
Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.* | |
Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.* | |
Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* | |
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). |
101.SCH | Inline XBRL Taxonomy Extension Schema Document. |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
FARMERS & MERCHANTS BANCORP | |
Date: | /s/ Kent A. Steinwert |
Kent A. Steinwert | |
Director, Chairman, President and Chief Executive Officer (Principal Executive Officer) |
Date: | /s/ |
Executive Vice President and Chief Financial Officer (Principal Financial Officer) |