Document and Entity Information
Document and Entity Information Document - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 22, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-15373 | ||
Entity Registrant Name | ENTERPRISE FINANCIAL SERVICES CORP | ||
Entity Central Index Key | 0001025835 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 43-1706259 | ||
Entity Address, Address Line One | 150 North Meramec Avenue | ||
Entity Address, City or Town | Clayton | ||
Entity Address, State or Province | MO | ||
Entity Address, Postal Zip Code | 63105 | ||
City Area Code | 314 | ||
Local Phone Number | 725-5500 | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | ||
Trading Symbol | EFSC | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,609,153 | ||
Entity Common Stock, Shares Outstanding | 37,278,741 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 are incorporated by reference into Item 7 of this Annual Report on Form 10-K. Additionally, the information required by Items 10, 11, 12, 13 and 14 of Part III of this Annual Report on Form 10-K is incorporated by reference to the Registrant’s Definitive Proxy Statement for its 2023 Annual Meeting of Shareholders, which will be filed pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended. | ||
ICFR Auditor Attestation Flag | true |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 34 |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | St. Louis, Missouri |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 229,580 | $ 209,177 |
Federal funds sold | 1,753 | 1,356 |
Interest-earning deposits (including $— and $14,595 pledged as collateral, respectively) | 60,026 | 1,811,156 |
Total cash and cash equivalents | 291,359 | 2,021,689 |
Interest-earning deposits greater than 90 days | 8,029 | 6,996 |
Securities available-for-sale | 1,535,807 | 1,366,006 |
debt securities, held to maturity, net of alloawance for credit losses | 709,915 | 429,681 |
Trade and Loans Receivables Held-for-sale, Net, Not Part of Disposal Group | 1,228 | 6,389 |
Loans | 9,737,138 | 9,017,642 |
Allowance for credit losses on loans | (136,932) | (145,041) |
Total loans, net | 9,600,206 | 8,872,601 |
Other investments | 63,790 | 59,896 |
Fixed assets, net | 42,985 | 47,915 |
Goodwill | 365,164 | 365,164 |
Intangible assets, net | 16,919 | 22,286 |
Other assets | 418,770 | 338,735 |
Total assets | 13,054,172 | 13,537,358 |
Liabilities and Shareholders' equity | ||
Noninterest-bearing demand accounts | 4,642,732 | 4,578,436 |
Interest-bearing demand accounts | 2,256,295 | 2,465,884 |
Money market accounts | 2,655,159 | 2,890,976 |
Savings accounts | 744,256 | 800,210 |
Certificates of deposit: | ||
Brokered | 118,968 | 128,970 |
Other | 411,740 | 479,323 |
Total deposits | 10,829,150 | 11,343,799 |
Subordinated debentures and notes | 155,433 | 154,899 |
FHLB advances | 100,000 | 50,000 |
Other borrowings | 324,119 | 353,863 |
Other liabilities | 123,207 | 105,681 |
Total liabilities | 11,531,909 | 12,008,242 |
Shareholders' equity: | ||
Preferred stock, $0.01 par value; 5,000,000 shares authorized; 75,000 shares issued and outstanding, respectively ($1,000 per share liquidation preference) | 71,988 | 71,988 |
Common stock, $0.01 par value; 75,000,000 shares authorized; 37,253,292 shares issued and outstanding and 39,799,615 shares issued, respectively | 373 | 398 |
Treasury stock, at cost; — and 1,980,093 shares, respectively | 0 | (73,528) |
Additional paid-in capital | 982,660 | 1,018,799 |
Retained earnings | 597,574 | 492,682 |
Accumulated other comprehensive (loss) income, net | (130,332) | 18,777 |
Total shareholders' equity | 1,522,263 | 1,529,116 |
Total liabilities and shareholders' equity | $ 13,054,172 | $ 13,537,358 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Collateral pledged | $ 0 | $ 14,595 |
Shareholders' equity: | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 75,000 | 75,000 |
Preferred stock, shares outstanding | 75,000 | 75,000 |
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 37,253,292 | 39,799,615 |
Common stock, shares outstanding | 37,253,292 | 39,799,615 |
Treasury stock, shares | 0 | 1,980,093 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest income: | |||
Loans | $ 456,007 | $ 348,615 | $ 270,238 |
Debt securities: | |||
Taxable | 28,267 | 18,030 | 24,629 |
Nontaxable | 18,838 | 13,814 | 8,397 |
Interest-earning deposits | 10,599 | 1,496 | 620 |
Dividends on equity securities | 1,371 | 1,275 | 895 |
Total interest income | 515,082 | 383,230 | 304,779 |
Interest expense: | |||
Interest Expense, Deposits | 30,158 | 10,668 | 21,049 |
Subordinated debentures and notes | 9,166 | 10,960 | 9,885 |
FHLB advances | 599 | 803 | 2,673 |
Other borrowings | 1,256 | 605 | 1,171 |
Total interest expense | 41,179 | 23,036 | 34,778 |
Net interest income | 473,903 | 360,194 | 270,001 |
Provision (benefit) for credit losses | (611) | 13,385 | 65,398 |
Net interest income after provision (benefit) for credit losses | 474,514 | 346,809 | 204,603 |
Noninterest income: | |||
Total noninterest income | 59,162 | 67,743 | 54,503 |
Noninterest expense: | |||
Employee compensation and benefits | 147,029 | 124,904 | 92,288 |
Occupancy | 17,640 | 16,286 | 13,457 |
Data processing | 13,513 | 12,242 | 9,050 |
Professional fees | 7,079 | 4,289 | 3,940 |
Branch-closure expenses | 0 | 3,441 | 0 |
Merger-related expenses | 0 | 22,082 | 4,174 |
Other expenses | 88,955 | 62,675 | 44,250 |
Noninterest expense | 274,216 | 245,919 | 167,159 |
Income before income tax expense | 259,460 | 168,633 | 91,947 |
Income tax expense | 56,417 | 35,578 | 17,563 |
Net income | 203,043 | 133,055 | 74,384 |
Dividends on preferred stock | 4,041 | 0 | 0 |
Net income available to common shareholders | $ 199,002 | $ 133,055 | $ 74,384 |
Earnings per common share | |||
Basic (usd per share) | $ 5.32 | $ 3.86 | $ 2.76 |
Diluted (usd per share) | $ 5.31 | $ 3.86 | $ 2.76 |
Deposit Account [Member] | |||
Noninterest income: | |||
Total noninterest income | $ 18,326 | $ 15,428 | $ 11,717 |
Fiduciary and Trust [Member] | |||
Noninterest income: | |||
Total noninterest income | 10,010 | 10,259 | 9,732 |
Card Services Revenue [Member] | |||
Noninterest income: | |||
Total noninterest income | 11,551 | 11,880 | 9,481 |
Tax credit activity, net [Member] | |||
Noninterest income: | |||
Total noninterest income | 2,558 | 8,028 | 6,611 |
Total other noninterest income | |||
Noninterest income: | |||
Total noninterest income | $ 16,717 | $ 22,148 | $ 16,962 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 203,043 | $ 133,055 | $ 74,384 |
Other comprehensive income (loss), net of tax: | |||
Change in unrealized gain (loss) on available-for-sale securities | (149,623) | (17,049) | 23,944 |
Reclassification of gain on the sale of available-for-sale securities | 0 | 0 | (317) |
Other Comprehensive Income (Loss), Reclassification of (gain) loss on held to maturity securities, net of tax | (2,696) | (3,624) | (1,910) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | 2,798 | 1,161 | (5,947) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | 412 | 1,169 | 3,601 |
Total other comprehensive income (loss), net | (149,109) | (18,343) | 19,371 |
Total comprehensive income | $ 53,934 | $ 114,712 | $ 93,755 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred | Common | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Preferred Shares, Beginning Balance (in shares) at Dec. 31, 2019 | 0 | ||||||
Common Shares, Beginning Balance (in shares) at Dec. 31, 2019 | 26,543,000 | ||||||
Shareholders' Equity, Beginning Balance at Dec. 31, 2019 | $ 867,185 | $ 0 | $ 281 | $ (58,181) | $ 526,599 | $ 380,737 | $ 17,749 |
Net income | 74,384 | 74,384 | |||||
Other comprehensive income (loss) | 19,371 | 19,371 | |||||
Cash dividends paid on common shares | (19,795) | (19,795) | |||||
Repurchase of common stock (in shares) | (456,000) | ||||||
Repurchase of common stock | (15,347) | (15,347) | |||||
Issuance under equity compensation plans, net (in shares) | 146,000 | ||||||
Issuance under equity compensation plans, net | $ 78 | $ 1 | 77 | ||||
Shares issued in connection with acquisition (in shares) | 167,035,000 | 4,977,000 | |||||
Shares issued in connection with acquisition | $ 167,035 | $ 50 | 166,985 | ||||
Share-based compensation | 4,178 | 4,178 | |||||
Reclassification for the adoption of ASU 2016-13 (CECL) | (18,114) | (18,114) | |||||
Preferred Shares, Ending Balance (in shares) at Dec. 31, 2020 | 0 | ||||||
Common Shares, Ending Balance (in shares) at Dec. 31, 2020 | 31,210,000 | ||||||
Shareholders' Equity, Ending Balance at Dec. 31, 2020 | 1,078,975 | $ 0 | $ 332 | (73,528) | 697,839 | 417,212 | 37,120 |
Net income | 133,055 | 133,055 | |||||
Other comprehensive income (loss) | (18,343) | (18,343) | |||||
Cash dividends paid on common shares | (26,153) | (26,153) | |||||
Repurchase of common stock (in shares) | (1,300,000) | ||||||
Repurchase of common stock | (60,589) | $ (12) | (30,518) | (30,059) | |||
Issuance under equity compensation plans, net (in shares) | 132,000 | ||||||
Issuance under equity compensation plans, net | $ 1,886 | 2,549 | (663) | ||||
Shares issued in connection with acquisition (in shares) | 343,650,000 | 7,777,000 | |||||
Shares issued in connection with acquisition | $ 342,280 | $ 78 | 342,912 | (710) | |||
Preferred stock issuance, net (in shares) | 75,000 | ||||||
Preferred stock issuance, net of $3,012 issuance cost | 71,988 | $ 71,988 | |||||
Share-based compensation | $ 6,017 | 6,017 | |||||
Preferred Shares, Ending Balance (in shares) at Dec. 31, 2021 | 75,000 | 75,000 | |||||
Common Shares, Ending Balance (in shares) at Dec. 31, 2021 | 39,799,615 | 37,819,000 | |||||
Shareholders' Equity, Ending Balance at Dec. 31, 2021 | $ 1,529,116 | $ 71,988 | $ 398 | (73,528) | 1,018,799 | 492,682 | 18,777 |
Net income | 203,043 | 203,043 | |||||
Other comprehensive income (loss) | (149,109) | (149,109) | |||||
Cash dividends paid on common shares | (33,602) | (33,602) | |||||
Preferred stock dividends ($53.889 per share) | (4,041) | (4,041) | |||||
Repurchase of common stock (in shares) | (700,000) | ||||||
Repurchase of common stock | (32,923) | $ (7) | (18,867) | (14,049) | |||
Issuance under equity compensation plans, net (in shares) | 134,000 | ||||||
Issuance under equity compensation plans, net | $ 1,773 | $ 2 | 2,460 | (689) | |||
Shares issued in connection with acquisition (in shares) | 0 | ||||||
Share-based compensation | $ 8,006 | 8,006 | |||||
Retirement of treasury stock (1,980 shares) | $ (20) | 73,528 | (27,738) | (45,770) | |||
Preferred Shares, Ending Balance (in shares) at Dec. 31, 2022 | 75,000 | 75,000 | |||||
Common Shares, Ending Balance (in shares) at Dec. 31, 2022 | 37,253,292 | 37,253,000 | |||||
Shareholders' Equity, Ending Balance at Dec. 31, 2022 | $ 1,522,263 | $ 71,988 | $ 373 | $ 0 | $ 982,660 | $ 597,574 | $ (130,332) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash dividends paid on common shares, per share | $ 0.90 | $ 0.75 | $ 0.72 |
Gross shares issued in connection with acquisition of First Choice Bancopro (in shares) | 7,808 | ||
Issuance cost | $ 3,012 | ||
Preferred stock cash dividends paid (in dollars per share) | $ 53.889 | ||
Retirement of treasury stock (in hares) | 1,980 | ||
Net income | $ 203,043 | 133,055 | $ 74,384 |
Retained Earnings | |||
Net income | $ 203,043 | $ 133,055 | $ 74,384 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 203,043 | $ 133,055 | $ 74,384 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 5,573 | 6,147 | 6,152 |
Provision (benefit) for credit losses | (611) | 13,385 | 65,398 |
Deferred income taxes | 2,194 | 545 | (12,578) |
Net amortization of debt securities | 5,639 | 7,343 | 6,745 |
Net amortization (accretion) on loans | 266 | (1,140) | (7,767) |
Amortization of intangible assets | 5,367 | 5,690 | 5,673 |
Amortization of servicing assets | 3,066 | 2,311 | 37 |
Mortgage loans originated-for-sale | (67,470) | (159,670) | (223,094) |
Proceeds from mortgage loans sold | 73,014 | 163,864 | 217,934 |
Investment securities | 0 | 0 | (421) |
Other real estate | 93 | (931) | 13 |
Fixed assets | (54) | 0 | 0 |
State tax credits | (1,506) | (2,220) | (2,016) |
Asset impairment | 0 | 3,441 | 0 |
Share-based compensation | 8,006 | 6,017 | 4,178 |
Changes in other assets and liabilities, net | (19,980) | (17,262) | 876 |
Net cash provided by operating activities | 216,640 | 160,575 | 135,514 |
Cash flows from investing activities: | |||
Net cash paid for acquisitions and dispositions | 0 | 212,642 | 62,114 |
Net (increase) decrease in loans | (722,677) | 138,455 | (700,096) |
Sale of debt securities, available-for-sale | 0 | 27,135 | 20,221 |
Paydown or maturity of debt securities, available-for-sale | 238,909 | 306,360 | 329,350 |
Paydown or maturity of debt securities, held-to-maturity | 11,913 | 49,947 | 41,377 |
Redemption of other investments | 12,989 | 18,159 | 43,555 |
Sale of state tax credits held-for-sale | 20,645 | 18,507 | 14,252 |
Sale of other real estate | 2,517 | 5,915 | 652 |
Sale of fixed assets | 1,699 | 0 | 0 |
Settlement of bank-owned life insurance policies | 534 | 0 | 1,993 |
Payments for the purchase of: | |||
Available-for-sale debt securities | (728,247) | (779,481) | (452,541) |
Held-to-maturity debt securities | (182,004) | 0 | 0 |
Other investments | (19,286) | (9,564) | (50,421) |
State tax credits held-for-sale | (18,846) | (8,689) | (11,026) |
Fixed assets | (1,930) | (2,500) | (2,259) |
Net cash used in investing activities | (1,383,784) | (23,114) | (702,829) |
Cash flows from financing activities: | |||
Net increase in noninterest-bearing deposit accounts | 64,296 | 869,203 | 627,756 |
Net (decrease) increase in interest-bearing deposit accounts | (578,945) | 648,778 | 505,604 |
Proceeds from the issuance of subordinated notes | 0 | 0 | 61,953 |
Payments for the redemption of subordinated notes | 0 | (50,000) | 0 |
Net increase (decrease) in short term FHLB advances, net | 100,000 | (160,000) | (172,300) |
Repayments of long-term FHLB advances | (50,000) | 0 | 0 |
Repayment of PPPLF advances | 0 | 0 | (86,096) |
Repayments of notes payable | (5,714) | (7,143) | (4,286) |
Net (decrease) increase in other borrowings | (24,030) | 59,925 | 40,195 |
Dividends paid on common stock | (33,602) | (26,153) | (19,795) |
Repurchase of common stock | (32,923) | (60,589) | (15,347) |
Dividends paid on preferred stock | (4,041) | 0 | 0 |
Proceeds from issuance of preferred stock, net | 0 | 71,988 | 0 |
Other, net | 1,773 | 516 | 78 |
Net cash (used in) provided by financing activities | (563,186) | 1,346,525 | 937,762 |
Net (decrease) increase in cash and cash equivalents | (1,730,330) | 1,483,986 | 370,447 |
Cash and cash equivalents, beginning of period | 2,021,689 | 537,703 | 167,256 |
Cash and cash equivalents, end of period | 291,359 | 2,021,689 | 537,703 |
Supplemental disclosures of cash flow information: | |||
Cash paid during the period for interest | 40,736 | 23,957 | 35,423 |
Cash paid during the period for income taxes | 46,009 | 56,845 | 7,514 |
Noncash investing and financing transactions: | |||
Real Estate Owned, Transfer to Real Estate Owned | 0 | 3,227 | 798 |
Sales of other real estate financed | 0 | 228 | 48 |
Transfer of securities from available-for-sale to held-to-maturity | 116,927 | 0 | 352,665 |
Transfer from fixed assets to loans | 0 | 0 | 3,336 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 9,512 | $ 5,658 | $ 1,623 |
Shares issued in connection with acquisition (in shares) | 0 | 343,650 | 167,035 |
Parent Company Only Condensed F
Parent Company Only Condensed Financial Statements (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Collateral pledged | $ 0 | $ 14,595 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies used by the Company in the preparation of the consolidated financial statements are summarized below. Business and Consolidation Enterprise is a financial holding company that provides a full range of banking and wealth management services to individuals and corporate customers primarily located in the Arizona, California, Kansas, Missouri, Nevada, and New Mexico markets through its banking subsidiary, Enterprise Bank & Trust. All intercompany accounts and transactions have been eliminated. The Company and its banking subsidiary are subject to the regulations of various federal and state agencies and undergo periodic examinations by those regulatory agencies. The Company has one operating segment. Use of Estimates The consolidated financial statements of the Company have been prepared in conformity with GAAP. In preparing the consolidated financial statements, management is required to make estimates and assumptions, which significantly affect the reported amounts in the consolidated financial statements. Such estimates include the valuation of loans, goodwill, intangible assets, and other long-lived assets, along with assumptions used in the calculation of income taxes, among others. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. Management adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. Cash Flow Information For purposes of reporting cash flows, the Company considers cash and due from banks, interest-bearing deposits and federal funds sold that mature within 90 days of the balance sheet date to be cash and cash equivalents. The balances at December 31, 2022 and 2021 were not subject to reserve requirements from the Federal Reserve. Recent Accounting Pronouncements FASB ASU 2021-01, Reference Rate Reform (Topic 848): Scope (ASU 2021-01) . ASU 2021-01 was issued in January 2021 and provides optional expedients and exceptions in ASC 848 to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendment only applies to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments will not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in this update were effective immediately upon issuance and did not have a material effect on the consolidated financial statements. In December 2022, ASU 2022-06 Reference Rate Reform (Topic 848): Deferral of the Sunset date of Topic 848 was issued, which extends the sunset date from December 31, 2022 to December 31, 2024. FASB ASU 2022-02, Financial Instruments–Credit Losses (Topic 326); Troubled Debt Restructurings and Vintage Disclosures. ASU 2022-02 was issued in March 2022 and eliminates the accounting guidance on troubled debt restructurings for creditors in ASC 310-40 and amends the guidance on “vintage disclosures” to require disclosure of current-period gross write-offs by year of origination. The ASU also updates the requirements related to accounting for credit losses under ASC 326 and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. The amendments in this update will be effective for fiscal years beginning after December 15, 2022 for entities that have adopted the amendments in ASU 2016-13, Financial Instruments–Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments . The Company is evaluating the accounting and disclosure requirements of ASU 2022-02 and does not expect them to have a material effect on the consolidated financial statements. FASB ASU 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions . ASU 2022-03 was issued in June 2022 to (1) clarify the guidance in Topic 820, Fair Value Measurement , when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, (2) amend a related illustrative example, and (3) introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The Company has evaluated the accounting and disclosure requirements of ASU 2022-03 and does not expect them to have a material effect on the consolidated financial statements. Investments The Company has classified all investments in debt securities as available-for-sale or held-to-maturity. Securities classified as available-for-sale are carried at fair value. Unrealized holding gains and losses for available-for-sale securities are excluded from earnings and reported as a net amount as a separate component of shareholders’ equity until realized. All previous fair value adjustments included in the separate component of shareholders’ equity are reversed upon sale. Securities classified as held-to-maturity are carried at amortized cost and adjusted for amortization of premiums and accretion of discounts. An ACL on held-to-maturity securities is deducted from the amortized cost basis of the securities to reflect the expected amount to be collected. When it is determined a security will not be collected, the balance is written-off through the allowance. In evaluating the need for an ACL, securities with similar risk characteristics are grouped and an estimate of expected cash flows is determined using loss experience, adjusted for current and reasonable and supportable forecasts of economic conditions. For available-for-sale securities in a loss position, the Company evaluates whether the decline in fair value below amortized cost resulted from a credit loss or other factors. Losses attributed to credit are recognized through an ACL on available-for-sale securities, limited to the amount that the fair value of securities is less than the amortized cost basis. In assessing credit loss, the Company considers, among other things, (1) the extent to which fair value is less than the amortized cost basis, (2) adverse conditions specific to the security or industry, (3) historical payment patterns, (4) the likelihood of future payments, and (5) changes to the rating of a security by a rating agency. The Company has elected to exclude accrued interest receivable balances from the estimate of the ACL as these amounts are timely written off as a credit loss expense. Adjustments to the ACL on held-to-maturity and available-for-sale securities are recognized as a component of the provision for credit losses in the Consolidated Statements of Income. Premiums and discounts are amortized or accreted over the expected lives of the respective securities as an adjustment to yield using the interest method. Dividend and interest income is recognized when earned. Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of securities sold. Loans Held-for-Sale and Servicing Assets The Company provides long-term financing of 1-4 family residential real estate by originating fixed and variable rate loans. Long-term fixed and variable rate loans are usually sold into the secondary market with limited recourse. Upon receipt of an application for a real estate loan, the Company determines whether the loan will be sold into the secondary market or retained in the Company’s loan portfolio. The interest rates on the loans sold are locked with the buyer and the Company bears no interest rate risk related to these loans. Mortgage loans held-for-sale are carried at the lower of cost or fair value, which is determined on a specific identification method. The Company does not retain servicing on these loans. The Company also originates SBA 7(a) loans that generally provide for a guarantee of 75% of the loan, up to a maximum amount. The guaranteed portion of the loan can be sold in an active secondary market. For the years ended December 31, 2022 and 2021, all SBA7(a) loans are considered held-for-investment; however, as the Company makes the determination to sell the loans, they will be moved into the held-for-sale category. Sales of SBA guaranteed loans are executed on a servicing retained basis, and the Company retains the rights and obligations to service the loans. At December 31, 2022, the Company was servicing SBA loans that had been sold and has recorded a related servicing asset of $3.6 million. The servicing asset is accounted for under the amortization method and is evaluated for impairment. Amortization of the servicing asset is recorded as a reduction to servicing income. Gains on the sale of held-for-sale loans are reported net of direct origination fees and costs in the Company’s Consolidated Statements of Income. Loans Loans are reported at the principal balance outstanding, net of unearned fees, costs, and premiums or discounts on acquired loans. Loan origination fees, direct origination costs, and premiums or discounts resulting from acquired loans are deferred and recognized over the lives of the related loans as a yield adjustment using the interest method. Interest on loans is accrued to income based on the principal balance outstanding. The recognition of interest income is discontinued when a loan becomes 90 days past due or a significant deterioration in the borrower’s credit has occurred which, in management’s judgment, negatively impacts the collectibility of the loan. Unpaid interest on such loans is reversed at the time the loan becomes uncollectible and subsequent interest payments received are generally applied to principal if any doubt exists as to the collectibility of such principal. Loans that have not been restructured are returned to accrual status when management believes full collectibility of principal and interest is expected. Non-accrual loans that have been restructured will remain in a non-accrual status until the borrower has made at least six months of consecutive contractual payments. The Company has elected to present the accrued interest receivable balance separate from amortized cost basis, to exclude accrued interest receivable balances from the tabular disclosures, and not to estimate an ACL on accrued interest receivable as these amounts are timely written off as a credit loss expense. Accrued interest receivable totaled $48.1 million and $30.6 million at December 31, 2022 and 2021, respectively, and were reported in Other Assets on the consolidated balance sheets. Acquired Loans Acquired loans are separated into two categories based on the credit risk characteristics of the underlying borrowers as either PCD, for loans which have experienced more than insignificant credit deterioration since origination, or loans with no credit deterioration (non-PCD). At the date of acquisition, an ACL on PCD loans is determined and added to the amortized cost basis of the individual loans. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. The ACL on PCD loans is recorded in the acquisition accounting and no provision for credit losses is recognized at the acquisition date. Subsequent changes to the ACL are recorded through provision expense. For non-PCD loans, an ACL is established immediately after the acquisition through a charge to the provision for credit losses. The ACL for both PCD and non-PCD is determined by pooling loans with similar risk characteristics and using the approach described below under “Allowance for Credit Losses on Loans”. Non-accrual Loans Loans are generally placed on non-accrual status when contractually past due 90 days or more as to interest or principal payments. Additionally, whenever management becomes aware of facts or circumstances that may adversely impact the collectability of principal or interest on loans, it is management’s practice to place such loans on non-accrual status immediately, rather than delaying such action until the loans become 90 days past due. Previously accrued and uncollected interest on such loans is reversed. Income is recorded only to the extent a determination has been made that the principal balance of the loan is collectible and the interest payments are subsequently received in cash, or for a restructured loan, the borrower has made six consecutive contractual payments. If collectibility of the principal is in doubt, payments received are applied to loan principal. Loans past due 90 days or more but still accruing interest are also generally included in nonperforming loans. Loans past due 90 days or more but still accruing are classified as such where the underlying loans are both well secured (the collateral value covers principal and accrued interest) and in the process of collection. Allowance for Credit Losses on Loans The ACL on loans is a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected. Loans are charged-off against the allowance when management deems the loan uncollectible. Management estimates the allowance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors. The ACL on loans is measured on a collective basis when similar risk characteristics exist. The Company has identified the following portfolio segments: C&I – C&I loans consist of loans to small and medium-sized businesses in a wide variety of industries. These loans are generally collateralized by inventory, accounts receivable, equipment, real estate and other commercial assets, and may be supported by other credit enhancements such as personal guarantees. Risk arises primarily due to a difference between expected and actual cash flows of the borrower. However, the recoverability of these loans is also dependent on other factors primarily dictated by the type of collateral securing these loans. The fair value of the collateral securing these loans may fluctuate as market conditions change. Included within C&I are revolving loans supported by borrowing bases that fluctuate depending on the amount of underlying collateral. A portion of C&I loans consists of sponsor finance, which are loans with senior debt exposure to private equity backed companies. CRE – CRE loans include various types of loans for which the Company holds real property as collateral. Commercial real estate lending activity is typically restricted to owner-occupied properties or to investor properties that are owned by customers with a current banking relationship. The primary risks of CRE loans include the borrower’s inability to pay, material decreases in the value of the real estate being held as collateral and significant increases in interest rates, which may make the real estate mortgage loan unprofitable. Real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. Construction and Land Development – The Company originates loans to finance construction projects including 1-4 family residences, multifamily residences, commercial office, and industrial projects. Construction loans are generally collateralized by first liens on the real estate and have floating interest rates. Construction loans are considered to have higher risks due to construction completion and timing risk, and the ultimate repayment being sensitive to interest rate changes, governmental regulation of real property and the availability of long-term financing. Additionally, economic conditions may impact the Company’s ability to recover its investment in construction loans. Adverse economic conditions may negatively impact the real estate market which could affect the borrowers’ ability to complete and sell the project. Additionally, the fair value of the underlying collateral may fluctuate as market conditions change. Residential Real Estate – The Company originates loans to finance one- to four-family residences, secured by both first and second liens. Repayment of these loans is dependent on the borrowers’ ability to pay and the fair value of the underlying collateral. Residential loans with a second lien are inherently riskier due to the junior lien position. Agricultural – Agricultural loans are generally secured with equipment, livestock, crops or other non-real property and at times the underlying real property. Agricultural loans are primarily included as a component of CRE and C&I loans. Consumer – The Company provides a broad range of consumer loans to customers, including personal lines of credit, credit cards, recreational vehicles, yachts and automobile loans. Repayment of these loans is dependent on the borrowers’ ability to pay and the fair value of the underlying collateral. Consumer loans are included as a component of Other loans. The Company utilizes a DCF method to measure the ACL on loans collectively evaluated that are sub-segmented by credit risk levels. The DCF method incorporates assumptions for probability of default, loss given default, prepayments and curtailments over the contractual term of the loans. In determining the probability of default, the Company utilized regression analysis to determine certain economic factors that are relevant loss drivers in the portfolio segments based on historical or peer evaluations. National unemployment is a loss driver used in all portfolios. The annual percentage change in gross domestic product is used in Construction, Agricultural, and Consumer portfolios. The annual percentage change in a commercial real estate index, national house price index and national retail sales are used in the CRE, Residential Real Estate and C&I portfolios, respectively. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower, or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. The Company uses a one-year reasonable and supportable forecast that considers baseline, upside and downside economic scenarios. For periods beyond the forecast period, the Company reverts to historical loss rates on a straight-line basis over a one-year period. Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in the collective evaluation. When management determines foreclosure is probable, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs. Other individually-evaluated loans may be remeasured using a discounted cash flow method if appropriate. Non-accrual loans, loans past due greater than 90 days and still accruing, unless adequately secured and in the process of collection, and restructured loans are evaluated individually. Loan Charge-Offs Loans are charged-off when the primary and secondary sources of repayment (cash flow, collateral, guarantors, etc.) are less than their carrying value and the amounts are deemed uncollectible. Other Real Estate Other real estate represents property acquired through foreclosure or deeded to the Company in lieu of foreclosure on loans on which the borrowers have defaulted on the payment of principal or interest. Other real estate is initially recorded at fair value less cost to sell and subsequently at the lower of cost or fair value less estimated costs to sell. The fair value of other real estate is based upon estimates of future cash flows, market value of similar assets, if available, or independent appraisals. These estimates involve significant uncertainties and judgments. As a result, fair value estimates may not be realizable in a current sale or settlement of the other real estate. Gains, losses and writedowns resulting from the writedown or sale of other real estate are credited or charged to earnings. Gains and losses resulting from the sale of other real estate are credited or charged to current period earnings. Costs of maintaining and operating other real estate are expensed as incurred, and expenditures to complete or improve other real estate properties are capitalized if the expenditures are expected to be recovered upon ultimate sale of the property. Fixed Assets Buildings, leasehold improvements, furniture, fixtures, and equipment are stated at cost less accumulated depreciation. All categories are computed using the straight-line method over their respective estimated useful lives. Furniture, fixtures and equipment is depreciated over three ten State Tax Credits The Company has purchased the rights to receive 10-year streams of state tax credits at agreed upon discount rates and sells such tax credits to its clients and others. State tax credits are accounted for at cost. The Company is also a minority partner in a joint venture, accounted for as an equity method investment, that purchases state income tax credits for resale to customers. Income from both the sale of state tax credits and earnings from the joint venture are reported as tax credit income in the Consolidated Statements of Income. Cash Surrender Value of Life Insurance The Company has purchased bank-owned life insurance policies on certain bank officers. Bank-owned life insurance is recorded at its cash surrender value. Changes in the cash surrender values, including death benefits in excess of the carrying amount, are included in noninterest income. Federal Home Loan Bank Stock The Bank, as a member of the FHLB, is required to maintain an investment in the capital stock of the FHLB. The stock is redeemable at par by the FHLB, and is, therefore, carried at cost and periodically evaluated for impairment. The Company records FHLB dividends in interest income. Goodwill and Other Intangible Assets The Company tests goodwill for impairment on an annual basis and whenever events or changes in circumstances indicate the Company may not be able to recover the respective asset’s carrying amount. The Company’s annual test for impairment was performed in the fourth quarter of 2022. Such tests involve the use of estimates and assumptions. Potential impairments to goodwill must first be identified by performing a qualitative assessment which evaluates relevant events or circumstances to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If this test indicates it is more likely than not that goodwill has been impaired, then a quantitative impairment test is completed. The quantitative impairment test calculates the fair value of the reporting unit and compares it with its carrying amount, including goodwill. If the carrying amount of goodwill exceeds its implied fair market value, an impairment loss is recognized. That loss is equal to the carrying amount of goodwill that is in excess of its implied fair market value. Core deposit intangibles are amortized using an accelerated method over an estimated useful life of approximately 10 years. Impairment of Long-Lived Assets Long-lived assets, such as fixed assets and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposal group classified as held-for-sale are presented separately in the appropriate asset and liability sections of the balance sheet. Derivative Financial Instruments and Hedging Activities The Company uses derivative financial instruments to assist in managing interest rate sensitivity and to modify the repricing, maturity and option characteristics of certain assets and liabilities. In addition, the Company also offers an interest rate hedge program that includes interest rate swaps to assist its customers in managing their interest rate risk profile. In order to eliminate the interest rate risk associated with offering these products, the Company enters into derivative contracts with third parties to offset the customer contracts. The Company does not enter into derivative financial instruments for trading purposes. Derivative instruments are required to be measured at fair value and recognized as either assets or liabilities in the consolidated financial statements. Fair value represents the payment the Company would receive or pay if the item were sold or bought in a current transaction. The accounting for changes in fair value (gains or losses) of a hedged item is dependent on whether the related derivative is designated and qualifies for “hedge accounting.” The Company assigns derivatives to one of these categories at the purchase date: cash flow hedge, fair value hedge, or non-designated hedges as part of a customer interest-rate swap product. An assessment of the expected and ongoing hedge effectiveness of any derivative designated a fair value hedge or cash flow hedge is performed as required by the applicable accounting standards. Derivatives are included in other assets and other liabilities in the consolidated balance sheets. The fair value amounts recognized for derivative instruments and the fair value amounts recognized for the right to reclaim or obligation to return cash collateral are not offset when represented under a master netting arrangement. Generally, the only derivative instruments used by the Company have been interest rate swaps, collars, forward currency contracts, and interest rate caps. Certain derivative financial instruments are not designated as cash flow or as fair value hedges for accounting purposes. These non-designated derivatives are intended to provide interest rate protection on net interest income or noninterest income but do not meet hedge accounting treatment. Customer accommodation interest rate swap contracts are not designated as hedging instruments. Changes in the fair value of these instruments are recorded in interest income or noninterest income in the consolidated statements of income depending on the underlying hedged item. Income Taxes The Company and its subsidiaries file a consolidated federal income tax return. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The need for deferred tax asset valuation allowances is based on a more-likely-than-not standard. The ability to realize deferred tax assets depends on the ability to generate sufficient positive taxable income within the carryback or carryforward periods provided for in the laws for each applicable taxing jurisdiction. The following possible sources of taxable income are considered: future reversal patterns of existing taxable temporary differences, future taxable income exclusive of reversing temporary differences, taxable income in prior carryback years and the availability of qualified tax planning strategies. The assessment regarding whether a valuation allowance is required or should be adjusted depends on all available positive and negative factors including, but not limited to, nature, frequency, and severity of recent losses, duration of available carryforward periods, experience with tax attributes expiring unused and near and medium term financial outlook. Because of the complexity of tax laws and regulations, interpretation can be difficult and subject to legal judgment given specific facts and circumstances. It is possible that others, given the same information, may at any point in time reach different reasonable conclusions regarding the estimated amounts of accrued taxes. Stock-Based Compensation Stock-based compensation is recognized as an expense for stock options, restricted stock awards, performance stock units, and restricted stock units granted to employees, directors, and advisors in return for service. Equity classified awards are measured at the grant date fair value using either an observable market value or a valuation methodology, and are recognized over the requisite service period on a straight-line basis. Forfeitures are recorded as they occur. A description of the Company’s stock-based employee compensation plan is included in “Note 15 - Shareholders’ Equity and Compensation Plans.” Acquisitions and Divestitures Acquisitions and business combinations are accounted for using the acquisition method of accounting. The assets and liabilities of the acquired entities have been recorded at their estimated fair values at the date of acquisition. Goodwill represents the excess of the purchase price over the fair value of net assets acquired, including the amount assigned to identifiable intangible assets. The purchase price allocation process requires an estimation of the fair values of the assets acquired and the liabilities assumed. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the Company includes an estimate of the acquisition-date fair value as part of the cost of the combination. To determine the fair values, the Company relies on third party valuations, such as appraisals, or internal valuations based on discounted cash flow analyses or other valuation techniques. The results of operations of the acquired business are included in the Company’s consolidated financial statements from the date of acquisition. Merger-related expenses include costs directly related to merger or acquisition activity and include legal and professional fees, system consolidation and conversion costs, and compensation costs such as severance and retention incentives for employees impacted by acquisition activity. The Company accounts for merger-related expenses in the periods in which the costs are incurred and the services are received. For divestitures, the Company measures an asset (disposal group) classified as held-for-sale at the lower of its carrying value at the date the asset is initially classified as held-for-sale or its fair value less costs to sell. The Company reports the results of operations of an entity or group of components that either has been disposed of or held-for-sal |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table presents a summary of earnings per common share data and amounts for the periods indicated. Year ended December 31, ($ in thousands, except per share data) 2022 2021 2020 Net income available to common shareholders $ 199,002 $ 133,055 $ 74,384 Weighted average common shares outstanding 37,381 34,436 26,954 Additional dilutive common stock equivalents 119 60 35 Weighted average diluted common shares outstanding 37,500 34,496 26,989 Basic earnings per common share $ 5.32 $ 3.86 $ 2.76 Diluted earnings per common share $ 5.31 $ 3.86 $ 2.76 For 2022, 2021 and 2020, common stock equivalents of approximately 224,000, 158,000 and 156,000, respectively, were excluded from the earnings per share calculation because their effect would have been anti-dilutive. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | INVESTMENTS The following table presents the amortized cost, gross unrealized gains and losses and fair value of securities available-for-sale and held-to-maturity: December 31, 2022 ($ in thousands) Amortized Cost Gross Gross Fair Value Available-for-sale securities: Obligations of U.S. Government-sponsored enterprises $ 266,090 $ — $ (28,305) $ 237,785 Obligations of states and political subdivisions 507,842 27 (90,425) 417,444 Agency mortgage-backed securities 727,931 453 (68,980) 659,404 Corporate debt securities 13,750 — (1,110) 12,640 U.S. Treasury Bills 213,441 1 (4,908) 208,534 Total securities available-for-sale $ 1,729,054 $ 481 $ (193,728) $ 1,535,807 Held-to-maturity securities: Obligations of states and political subdivisions $ 529,012 $ 2,321 $ (65,347) $ 465,986 Agency mortgage-backed securities 57,018 — (6,416) 50,602 Corporate debt securities 124,620 163 (12,854) 111,929 Total securities held-to-maturity $ 710,650 $ 2,484 $ (84,617) $ 628,517 Allowance for credit losses (735) Total securities held-to-maturity, net $ 709,915 December 31, 2021 ($ in thousands) Amortized Cost Gross Gross Fair Value Available-for-sale securities: Obligations of U.S. Government-sponsored enterprises $ 175,409 $ 3 $ (1,901) $ 173,511 Obligations of states and political subdivisions 571,587 5,907 (2,410) 575,084 Agency mortgage-backed securities 509,243 8,485 (3,869) 513,859 Corporate debt securities 11,750 632 — 12,382 U.S. Treasury Bills 90,971 220 (21) 91,170 Total securities available-for-sale $ 1,358,960 $ 15,247 $ (8,201) $ 1,366,006 Held-to-maturity securities: Obligations of states and political subdivisions $ 236,379 $ 1,794 $ (730) $ 237,443 Agency mortgage-backed securities 68,105 940 (666) 68,379 Corporate debt securities 125,811 3,039 — 128,850 Total securities held-to-maturity $ 430,295 $ 5,773 $ (1,396) $ 434,672 Allowance for credit losses (614) Total securities held-to-maturity, net $ 429,681 During 2022, the Company transferred $116.7 million of securities from available-for-sale to held-to-maturity. The Company believes the held-to-maturity category is consistent with the Company’s intent for these securities. The transfer of securities was made at fair value at the time of transfer. The unamortized portion of the unrealized holding gain at the time of transfer is retained in accumulated other comprehensive income and in the carrying value of held-to-maturity securities. The balance of held-to-maturity securities in the “Amortized Cost” column in the table above includes a cumulative net unamortized, unrealized gain of $17.6 million and $21.0 million at December 31, 2022 and 2021, respectively. Such amounts are amortized over the remaining life of the securities. At December 31, 2022, and 2021, there were no holdings of securities of any one issuer in an amount greater than 10% of shareholders’ equity, other than the U.S. Government agencies and sponsored enterprises. The agency mortgage-backed securities are all issued by U.S. Government-sponsored enterprises. Securities having a fair value of $734.5 million and $752.7 million at December 31, 2022, and December 31, 2021, respectively, were pledged as collateral to secure deposits of public institutions and for other purposes as required by law or contract provisions. The amortized cost and estimated fair value of debt securities at December 31, 2022, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The weighted average life of the mortgage-backed securities is approximately 5 years. Available-for-sale Held-to-maturity ($ in thousands) Amortized Cost Estimated Amortized Cost Estimated Due in one year or less $ 104,362 $ 104,000 $ 950 $ 949 Due after one year through five years 345,957 318,556 41,312 38,210 Due after five years through ten years 67,667 60,425 179,013 165,304 Due after ten years 483,137 393,422 432,357 373,452 Agency mortgage-backed securities 727,931 659,404 57,018 50,602 $ 1,729,054 $ 1,535,807 $ 710,650 $ 628,517 There were approximately 740 available-for-sale securities and 290 available-for-sale securities in an unrealized loss position as of December 31, 2022 and December 31, 2021, respectively, included in the following tables: December 31, 2022 Less than 12 months 12 months or more Total ($ in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Obligations of U.S. Government-sponsored enterprises $ 73,738 $ 6,249 $ 163,047 $ 22,056 $ 236,785 $ 28,305 Obligations of states and political subdivisions 103,179 13,501 311,634 76,924 414,813 90,425 Agency mortgage-backed securities 334,431 20,038 281,321 48,942 615,752 68,980 Corporate debt securities 12,640 1,110 — — 12,640 1,110 U.S. Treasury Bills 198,688 4,908 — — 198,688 4,908 $ 722,676 $ 45,806 $ 756,002 $ 147,922 $ 1,478,678 $ 193,728 December 31, 2021 Less than 12 months 12 months or more Total ($ in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Obligations of U.S. Government-sponsored enterprises $ 163,634 $ 1,775 $ 4,874 $ 126 $ 168,508 $ 1,901 Obligations of states and political subdivisions 242,188 2,361 1,776 49 243,964 2,410 Agency mortgage-backed securities 259,047 3,685 6,467 184 265,514 3,869 U.S. Treasury Bills 60,961 21 — — 60,961 21 $ 725,830 $ 7,842 $ 13,117 $ 359 $ 738,947 $ 8,201 The unrealized losses at both December 31, 2022, and 2021, were primarily attributable to changes in market interest rates since the securities were purchased. At both December 31, 2022 and 2021, the Company had not recorded an ACL on available-for-sale securities. Accrued interest receivable on held-to-maturity debt securities totaled $5.8 million and $3.4 million at December 31, 2022 and 2021, respectively, and is excluded from the estimate of expected credit losses. The estimate of expected credit losses considers historical credit loss information adjusted for current conditions and reasonable and supportable forecasts. At December 31, 2022 and 2021, the ACL on held-to-maturity securities was $0.7 million and $0.6 million, respectively. The proceeds, gross gains and losses realized from sales of available-for-sale investment securities were as follows: December 31, ($ in thousands) 2022 2021 2020 Gross gains realized $ — $ — $ 421 Proceeds from sales — 27,135 20,221 The Company sold $28.4 million of available-for-sale securities in January 2023 for a gain of $0.4 million. Other Investments At December 31, 2022, and 2021, other investments totaled $63.8 million and $59.9 million, respectively. As a member of the FHLB, the Bank is required to maintain a minimum investment in capital stock with the FHLB consisting of membership stock and activity-based stock. The FHLB capital stock of $14.0 million, and $12.1 million at December 31, 2022, and 2021, respectively, is recorded at cost, which represents redemption value, and is included in other investments in the consolidated balance sheets. The remaining amounts in other investments primarily include various investments in SBICs, CDFIs, and the Company’s investment in unconsolidated trusts used to issue preferred securities to third parties, see “Note 10 – Subordinated Debentures.” |
Portfolio Loans
Portfolio Loans | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Portfolio Loans | LOANS Below is a summary of loans by category: ($ in thousands) December 31, 2022 December 31, 2021 Commercial and industrial $ 3,859,964 $ 3,396,590 Real estate loans: Commercial - investor owned 2,357,820 2,141,143 Commercial - owner occupied 2,270,551 2,035,785 Construction and land development 611,565 734,073 Residential 395,537 454,052 Total real estate loans 5,635,473 5,365,053 Other 248,990 265,137 Loans, before unearned loan fees 9,744,427 9,026,780 Unearned loan fees, net (7,289) (9,138) Loans, including unearned loan fees $ 9,737,138 $ 9,017,642 PPP loans totaled $7.4 million at December 31, 2022, or $7.3 million net of unearned fees of $0.1 million. PPP loans totaled $276.2 million at December 31, 2021, or $272.0 million net of unearned fees of $4.2 million. The loan balance includes a net premium on acquired loans of $11.9 million at both December 31, 2022 and 2021. At December 31, 2022 loans of $2.8 billion were pledged to the FHLB and the Federal Reserve. Loans to executive officers and directors, or to entities in which such individuals had beneficial interests as a shareholder, officer, or director totaled $0.1 million and $5.7 million for the year ended December 31, 2022 and 2021, respectively. Such loans were made in the normal course of business on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other customers and did not involve more than the normal risk of collectibility. A summary of the activity, by loan category, in the allowance for credit losses on loans for 2020, 2021, and 2022 is as follows: ($ in thousands) Commercial and industrial CRE - investor owned CRE - owner occupied Construction and land development Residential real estate Other Total Balance at December 31, 2020 Allowance for loan losses: Balance, beginning of year $ 33,949 $ 16,656 $ 7,414 $ 7,577 $ 3,349 $ 1,050 $ 69,995 Provision for loan losses 28,373 11,037 7,845 13,438 674 2,012 63,379 Initial allowance on acquired PCD loans 23 2,026 1,427 45 3 — 3,524 Charge-offs (5,381) (498) (30) (31) (408) (391) (6,739) Recoveries 1,848 2,841 356 384 967 116 6,512 Balance, end of year $ 58,812 $ 32,062 $ 17,012 $ 21,413 $ 4,585 $ 2,787 $ 136,671 Balance at December 31, 2021 Allowance for loan losses: Balance, beginning of year $ 58,812 $ 32,062 $ 17,012 $ 21,413 $ 4,585 $ 2,787 $ 136,671 Provision (benefit) for loan losses 14,361 568 (550) (7,365) 3,900 2,079 12,993 Initial allowance on acquired PCD loans 1,077 3,651 1,504 37 — 737 7,006 Charge-offs (12,113) (2,487) (602) (3) (1,521) (459) (17,185) Recoveries 1,688 2,083 196 454 963 172 5,556 Balance, end of year $ 63,825 $ 35,877 $ 17,560 $ 14,536 $ 7,927 $ 5,316 $ 145,041 Balance at December 31, 2022 Allowance for credit losses: Balance, beginning of year $ 63,825 $ 35,877 $ 17,560 $ 14,536 $ 7,927 $ 5,316 $ 145,041 Provision (benefit) for loan losses (6,121) 46 4,867 (3,145) 540 (397) (4,210) Charge-offs (6,082) (478) (395) — (2,068) (370) (9,393) Recoveries 2,213 746 720 53 1,529 233 5,494 Balance, end of year $ 53,835 $ 36,191 $ 22,752 $ 11,444 $ 7,928 $ 4,782 $ 136,932 The Company recorded a provision benefit of $4.2 million and a provision for credit losses on loans of $13.0 million for the years ended December 31, 2022 and 2021, respectively. An additional provision for credit losses of $3.6 million and $0.4 million was recorded in 2022 and 2021, respectively, for HTM securities, unfunded commitments and the recapture of accrued interest on nonaccrual loans. Acquisition-related provision expense of $25.4 million in 2021 was included in the provision for credit losses. This expense, commonly referred to as the “CECL double-count”, is recognized when a loan portfolio is acquired. The CECL methodology incorporates various economic scenarios. The Company utilizes three forecasts in the model; Moody’s baseline, a stronger near-term growth upside and a moderate recession downside forecast. The Company weights these scenarios at 40%, 30%, and 30%, respectively, which added approximately $12.3 million to the ACL over the baseline model at December 31, 2022. These forecasts at the end of 2022 incorporate an expectation that the Federal Reserve will continue quantitative tightening and raise the federal funds rate further into 2023, and that the pandemic will continue to recede and be less disruptive to global supply chains and labor markets. The Company has also recognized various risks posed by loans in certain segments, including the hospitality and commercial office sectors, by allocating additional reserves to those segments. Some of the key risks to the forecasts that could result in future provision for credit losses are market reactions to the Federal Reserve policy actions that could push the economy into a recession, persistently higher inflation, continued or worsening supply-chain issues, labor supply and job growth worsens, or financial market conditions tighten more than expected. In addition to the CECL methodology, the Company incorporates qualitative adjustments into the ACL on loans to capture credit risks inherent within the loan portfolio that are not captured in the DCF model. Included in these risks are 1) changes in lending policies and procedures, 2) actual and expected changes in business and economic conditions, 3) changes in the nature and volume of the portfolio, 4) changes in lending management, 5) changes in volume and the severity of past due loans, 6) changes in the quality of the loan review system, 7) changes in the value of underlying collateral, 8) the existence and effect of concentrations of credit and 9) other factors such as the regulatory, legal and competitive environments and events such as natural disasters and pandemics. At December 31, 2022, the ACL on loans included a qualitative adjustment of approximately $41.1 million. Of this amount, approximately $9.4 million was allocated to Sponsor Finance loans due to their unsecured nature. The recorded investment in nonperforming loans by category at December 31, 2022 and 2021 is as follows: December 31, 2022 ($ in thousands) Non-accrual Restructured, accruing Loans over 90 days past due and still accruing interest Total nonperforming loans Nonaccrual loans with no allowance Commercial and industrial $ 4,373 $ — $ 70 $ 4,443 $ 1,047 Real estate: Commercial - investor owned 3,023 — — 3,023 — Commercial - owner occupied 1,177 — — 1,177 — Construction and land development 1,192 — — 1,192 1,192 Residential — 73 — 73 — Other 1 — 72 73 — Total $ 9,766 $ 73 $ 142 $ 9,981 $ 2,239 December 31, 2021 ($ in thousands) Non-accrual Restructured, accruing Loans over 90 days past due and still accruing interest Total nonperforming loans Nonaccrual loans with no allowance Commercial and industrial $ 17,052 $ 2,783 $ 1,703 $ 21,538 $ 5,685 Real estate: Commercial - investor owned 1,575 — — 1,575 168 Commercial - owner occupied 2,839 — — 2,839 2,550 Residential 1,971 76 1 2,048 1,348 Other 12 — 12 24 — Total $ 23,449 $ 2,859 $ 1,716 $ 28,024 $ 9,751 Interest income recognized on nonaccrual loans was immaterial in the years ending December 31, 2020, 2021 and 2022. The amortized cost basis of collateral-dependent nonperforming loans by class of loan is presented for the periods indicated: December 31, 2022 Type of Collateral (in thousands) Commercial Real Estate Residential Real Estate Blanket Lien Commercial and industrial $ — $ — $ 1,047 Real estate: Commercial - investor owned 2,238 785 — Commercial - owner occupied 1,177 — — Construction and land development — 1,192 — Residential — 73 — Total $ 3,415 $ 2,050 $ 1,047 December 31, 2021 Type of Collateral (in thousands) Commercial Real Estate Residential Real Estate Blanket Lien Commercial and industrial $ 4,271 $ 209 $ 9,312 Real estate: Commercial - investor owned 169 1,200 — Commercial - owner occupied 2,807 32 — Residential — 2,048 — Other — — — Total $ 7,247 $ 3,489 $ 9,312 No loans were restructured during the year ended 2022. The recorded investment by category for loans restructured during the year ended December 31, 2021 is as follows: Year ended December 31, 2021 ($ in thousands, except for number of loans) Number of Loans Pre-Modification Outstanding Post-Modification Outstanding Real Estate: Residential 1 221 221 Restructured loans primarily resulted from interest rate concessions. As of December 31, 2022, the Company allocated an immaterial amount in specific reserves to loans that have been restructured. No restructured loans subsequently defaulted during the year ended December 31, 2022. Loans restructured that subsequently defaulted during the year ended December 31, 2021 are as follows: Year ended December 31, 2021 ($ in thousands, except for number of loans) Number of Loans Recorded Balance Real Estate: Residential 1 $ 148 The aging of the recorded investment in past due loans by class and category is shown below: December 31, 2022 ($ in thousands) 30-89 Days 90 or More Total Current Total Commercial and industrial $ 555 $ 2,373 $ 2,928 $ 3,857,036 $ 3,859,964 Real estate: Commercial - investor owned — 1,135 1,135 2,356,685 2,357,820 Commercial - owner occupied 8,628 164 8,792 2,261,759 2,270,551 Construction and land development 9 1,192 1,201 610,364 611,565 Residential 1,227 — 1,227 394,310 395,537 Other 18 72 90 248,900 248,990 Loans, before unearned loan fees 10,437 4,936 15,373 9,729,054 9,744,427 Unearned loan fees, net — — — (7,289) (7,289) Total $ 10,437 $ 4,936 $ 15,373 $ 9,721,765 $ 9,737,138 December 31, 2021 ($ in thousands) 30-89 Days 90 or More Total Current Total Commercial and industrial $ 24,447 $ 14,158 $ 38,605 $ 3,357,985 $ 3,396,590 Real estate: Commercial - investor owned 3,880 — 3,880 2,137,263 2,141,143 Commercial - owner occupied 10,070 289 10,359 2,025,426 2,035,785 Construction and land development 24 — 24 734,049 734,073 Residential 3,181 1,305 4,486 449,566 454,052 Other 37 11 48 265,089 265,137 Loans, before unearned loan fees 41,639 15,763 57,402 8,969,378 9,026,780 Unearned loan fees, net — — — (9,138) (9,138) Total $ 41,639 $ 15,763 $ 57,402 $ 8,960,240 $ 9,017,642 The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, payment experience, credit documentation, and current economic factors among other factors. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: • Grades 1, 2, and 3 – Includes loans to borrowers with a continuous record of strong earnings, sound balance sheet condition and capitalization, ample liquidity with solid cash flow, and whose management team has experience and depth within their industry. • Grade 4 – Includes loans to borrowers with positive trends in profitability, satisfactory capitalization and balance sheet condition, and sufficient liquidity and cash flow. • Grade 5 – Includes loans to borrowers that may display fluctuating trends in sales, profitability, capitalization, liquidity, and cash flow. • Grade 6 – Includes loans to borrowers where an adverse change or perceived weakness has occurred, but may be correctable in the near future. Alternatively, this rating category may also include circumstances where the borrower is starting to reverse a negative trend or condition, or has recently been upgraded from a 7, 8, or 9 rating. • Grade 7 – Special Mention credits are borrowers that have experienced financial setback of a nature that is not determined to be severe or influence ‘ongoing concern’ expectations. Although possible, no loss is anticipated, due to strong collateral and/or guarantor support. • Grade 8 – Substandard credits include those borrowers characterized by significant losses and sustained downward trends in balance sheet condition, liquidity, and cash flow. Repayment reliance may have shifted to secondary sources. Collateral exposure may exist and additional reserves may be warranted. • Grade 9 – Doubtful credits include borrowers that may show deteriorating trends that are unlikely to be corrected. Collateral values may appear insufficient for full recovery, therefore requiring a partial charge-off, or debt renegotiation with the borrower. The borrower may have declared bankruptcy or bankruptcy is likely in the near term. All doubtful rated credits will be on non-accrual. The recorded investment by risk category of the loans by class and year of origination is presented in the following tables as of the dates indicated: December 31, 2022 Term Loans by Origination Year (in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Converted to Term Loans Revolving Loans Total Commercial and industrial Pass (1-6) $ 1,403,381 $ 635,275 $ 332,740 $ 172,127 $ 62,729 $ 66,152 $ 8,388 $ 964,592 $ 3,645,384 Special Mention (7) 37,048 10,836 13,858 423 7,995 4,102 — 72,944 147,206 Classified (8-9) 16,176 4,457 1,627 24 166 183 — 21,349 43,982 Total Commercial and industrial $ 1,456,605 $ 650,568 $ 348,225 $ 172,574 $ 70,890 $ 70,437 $ 8,388 $ 1,058,885 $ 3,836,572 Commercial real estate-investor owned Pass (1-6) $ 667,107 $ 584,644 $ 392,402 $ 240,033 $ 115,530 $ 202,661 $ 1,457 $ 53,051 $ 2,256,885 Special Mention (7) 18,844 5,751 23,502 11,605 — 13,063 — — 72,765 Classified (8-9) 1,823 — 465 953 193 6,092 49 — 9,575 Total Commercial real estate-investor owned $ 687,774 $ 590,395 $ 416,369 $ 252,591 $ 115,723 $ 221,816 $ 1,506 $ 53,051 $ 2,339,225 Commercial real estate-owner occupied Pass (1-6) $ 539,610 $ 555,690 $ 362,150 $ 232,335 $ 123,095 $ 270,613 $ — $ 57,308 $ 2,140,801 Special Mention (7) 11,164 3,801 16,856 4,455 13,043 9,009 — 800 59,128 Classified (8-9) — 1,572 3,483 8,910 15,873 11,387 — — 41,225 Total Commercial real estate-owner occupied $ 550,774 $ 561,063 $ 382,489 $ 245,700 $ 152,011 $ 291,009 $ — $ 58,108 $ 2,241,154 Construction real estate Pass (1-6) $ 290,146 $ 232,998 $ 53,129 $ 2,909 $ 2,061 $ 8,480 $ — $ 1,769 $ 591,492 Special Mention (7) 17,331 — 681 146 111 106 — — 18,375 Classified (8-9) 1,192 — — 14 471 21 — — 1,698 Total Construction real estate $ 308,669 $ 232,998 $ 53,810 $ 3,069 $ 2,643 $ 8,607 $ — $ 1,769 $ 611,565 Residential real estate Pass (1-6) $ 63,317 $ 60,910 $ 48,796 $ 20,943 $ 11,259 $ 88,795 $ 579 $ 96,304 $ 390,903 Special Mention (7) 331 — — 79 352 781 — — 1,543 Classified (8-9) 121 73 — 53 1,102 994 — 5 2,348 Total residential real estate $ 63,769 $ 60,983 $ 48,796 $ 21,075 $ 12,713 $ 90,570 $ 579 $ 96,309 $ 394,794 Other Pass (1-6) $ 38,753 $ 88,613 $ 56,252 $ 10,556 $ 20,508 $ 10,796 $ — $ 9,536 $ 235,014 Special Mention (7) — — — — — — — — — Classified (8-9) — — — 4 3 11 3 4 25 Total Other $ 38,753 $ 88,613 $ 56,252 $ 10,560 $ 20,511 $ 10,807 $ 3 $ 9,540 $ 235,039 Total loans classified by risk category $ 3,106,344 $ 2,184,620 $ 1,305,941 $ 705,569 $ 374,491 $ 693,246 $ 10,476 $ 1,277,662 $ 9,658,349 Total loans classified by performing status 78,789 Total loans $ 9,737,138 December 31, 2021 Term Loans by Origination Year (in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Converted to Term Loans Revolving Loans Total Commercial and industrial Pass (1-6) $ 1,180,601 $ 477,374 $ 317,869 $ 132,851 $ 116,738 $ 82,846 $ 11,648 $ 854,102 $ 3,174,029 Special Mention (7) 35,005 17,502 9,404 9,880 12,217 10,979 4,037 53,595 152,619 Classified (8-9) 14,917 3,530 3,840 1,689 2,988 813 787 10,996 39,560 Total Commercial and industrial $ 1,230,523 $ 498,406 $ 331,113 $ 144,420 $ 131,943 $ 94,638 $ 16,472 $ 918,693 $ 3,366,208 Commercial real estate-investor owned Pass (1-6) $ 651,740 $ 476,946 $ 346,245 $ 146,107 $ 112,043 $ 217,808 $ 3,625 $ 68,236 $ 2,022,750 Special Mention (7) 16,871 35,908 32,755 1,003 502 17,478 300 2,062 106,879 Classified (8-9) 1,376 3,135 835 817 1,159 4,141 — 50 11,513 Total Commercial real estate-investor owned $ 669,987 $ 515,989 $ 379,835 $ 147,927 $ 113,704 $ 239,427 $ 3,925 $ 70,348 $ 2,141,142 Commercial real estate-owner occupied Pass (1-6) $ 604,975 $ 423,263 $ 278,830 $ 164,210 $ 140,515 $ 235,973 $ 250 $ 48,349 $ 1,896,365 Special Mention (7) 12,825 13,585 4,301 16,774 10,274 15,764 — 300 73,823 Classified (8-9) 2,048 556 9,181 17,016 6,432 6,959 — — 42,192 Total Commercial real estate-owner occupied $ 619,848 $ 437,404 $ 292,312 $ 198,000 $ 157,221 $ 258,696 $ 250 $ 48,649 $ 2,012,380 Construction real estate Pass (1-6) $ 310,140 $ 229,396 $ 70,531 $ 35,936 $ 14,860 $ 7,180 $ 568 $ 2,992 $ 671,603 Special Mention (7) 28,947 15,348 60 1,199 11,068 2,330 — — 58,952 Classified (8-9) — — 387 419 — 22 — — 828 Total Construction real estate $ 339,087 $ 244,744 $ 70,978 $ 37,554 $ 25,928 $ 9,532 $ 568 $ 2,992 $ 731,383 Residential real estate Pass (1-6) $ 116,352 $ 66,481 $ 21,356 $ 14,841 $ 24,778 $ 103,840 $ 9,980 $ 87,146 $ 444,774 Special Mention (7) 2,425 2 622 1,157 248 1,305 — 79 5,838 Classified (8-9) 414 169 554 — 12 2,024 — — 3,173 Total residential real estate $ 119,191 $ 66,652 $ 22,532 $ 15,998 $ 25,038 $ 107,169 $ 9,980 $ 87,225 $ 453,785 Other Pass (1-6) $ 108,209 $ 68,806 $ 22,684 $ 23,145 $ 6,924 $ 13,832 $ 1,500 $ 9,166 $ 254,266 Special Mention (7) — — — 4 — 2,440 — 1 2,445 Classified (8-9) — — 10 10 — 16 — 2 38 Total Other $ 108,209 $ 68,806 $ 22,694 $ 23,159 $ 6,924 $ 16,288 $ 1,500 $ 9,169 $ 256,749 Total loans classified by risk category $ 3,086,845 $ 1,832,001 $ 1,119,464 $ 567,058 $ 460,758 $ 725,750 $ 32,695 $ 1,137,076 $ 8,961,647 Total loans classified by performing status 55,995 Total loans $ 9,017,642 In the tables above, loan originations in 2022 and 2021 with a classification of “special mention” or “classified” primarily represent renewals or modifications initially underwritten and originated in prior years. For certain loans the Company evaluates credit quality based on the aging status. December 31, 2022 (in thousands) Performing Non Performing Total Commercial and industrial $ 23,240 $ 70 $ 23,310 Real estate: Commercial - investor owned 18,595 — 18,595 Commercial - owner occupied 29,397 — 29,397 Construction and land development — — — Residential 743 — 743 Other 6,672 72 6,744 Total $ 78,647 $ 142 $ 78,789 December 31, 2021 (in thousands) Performing Non Performing Total Commercial and industrial $ 26,166 $ 1 $ 26,167 Real estate: Commercial - investor owned 1 — 1 Commercial - owner occupied 23,405 — 23,405 Construction and land development 2,690 — 2,690 Residential 267 — 267 Other 3,453 12 3,465 Total $ 55,982 $ 13 $ 55,995 |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | LEASES The Company has banking and limited-service facilities, data centers, and certain equipment under lease agreements. Most of the leases expire between 2023 and 2028 and include one or more renewal options for up to 5 years. One lease expires in 2030 and another in 2031. All leases are classified as operating leases. For the year ended December 31, ($ in thousands) 2022 2021 Operating lease cost $ 5,868 $ 4,877 Short-term lease cost 814 833 Total lease cost $ 6,682 $ 5,710 Payments on operating leases included in the measurement of lease liabilities during the twelve months ended December 31, 2022 and 2021 totaled $5.8 million and $5.2 million, respectively. Right-of-use assets obtained in exchange for lease obligations totaled $9.5 million and $5.7 million during the twelve months ended December 31, 2022 and 2021, respectively. The additions in 2022 were primarily from lease renewals. The additions in 2021 were primarily from the First Choice acquisition. In 2021, an impairment of $1.1 million was recognized on right-of-use assets concurrent with the announced closure of certain leased locations. For further discussion see “Note 7 – Fixed Assets.” Supplemental balance sheet information related to leases is as follows: ($ in thousands) December 31, 2022 December 31, 2021 Operating lease right-of-use assets, included in other assets $ 17,355 $ 13,483 Operating lease liabilities, included in other liabilities 18,038 14,865 Operating leases Weighted average remaining lease term 5 years 4 years Weighted average discount rate 2.5 % 2.0 % Maturities of operating lease liabilities are as follows: ($ in thousands) Year Amount 2023 $ 5,352 2024 4,402 2025 3,096 2026 3,148 2027 1,891 Thereafter 1,182 Total operating lease liabilities, payments 19,071 Less: present value adjustment 1,033 Operating lease liabilities $ 18,038 Lessor income was $1.9 million for each of the twelve months en |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS Risk Management Objective of Using Derivatives The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest income and expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy to fix certain variable cash flows without exchange of the underlying notional amount. For hedges of the Company’s variable-rate loans, interest rate swaps designated as cash flow hedges involve the receipt of fixed amounts and the Company making variable rate payments. In the fourth quarter 2022, the Company executed a cash flow hedge to reduce a portion of variability in cash flows on the Company’s prime based loan portfolio. The interest rate swap has a notional value of $100.0 million, that effectively fixes the interest rate at 6.63% for the notional amount and has a maturity date of January 1, 2028. In January 2023, the Company entered into another hedge on the prime based loan portfolio with a notional value of $50.0 million, that effectively fixes the interest rate at 6.56% for the notional amount and has a maturity date of February 1, 2027. In addition, the Company executed a prime based interest rate collar in the fourth quarter 2022 with a notional amount of $100.0 million. The collar includes a cap of 8.14% and a floor of 5.25%. This transaction, commonly referred to as a zero cost collar, involves the Company selling an interest rate cap where payments will be made when the index exceeds the cap rate, and the purchase of a floor where payments will be received if the index falls below the floor. The collar matures on October 1, 2029. Interest rate swaps designated as cash flow hedges of variable rate debt involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements. The Company has executed a series of cash flow hedges to fix the effective interest rate for payments due on $62.0 million of LIBOR-based junior subordinated debentures to a weighted-average-fixed rate of 2.62%. Select terms of the hedges are as follows: $ in thousands Notional Fixed Rate Maturity Date $15,465 2.60% March 15, 2024 $14,433 2.60% March 30, 2024 $18,558 2.64% March 15, 2026 $13,506 2.64% March 17, 2026 For derivatives designated and qualified as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income and subsequently reclassified into interest income or expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest income or expense as interest payments are paid on the hedged items. During the next twelve months, the Company estimates an additional $1.5 million will be reclassified as a decrease to interest expense and $1.3 million will be reclassified as a decrease to interest income. Non-designated Hedges Derivatives not designated as hedges are not considered speculative and result from a service the Company provides to certain customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting derivatives the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings as a component of other noninterest income. The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheet. Notional Amount Derivative Assets Derivative Liabilities ($ in thousands) December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Derivatives designated as hedging instruments Interest rate swaps $ 161,962 $ 61,962 $ 2,348 $ — $ 921 $ 2,911 Interest rate collar 100,000 — — — 48 — Total $ 2,348 $ — $ 969 $ 2,911 Derivatives not designated as hedging instruments Interest rate swaps $ 687,902 $ 918,698 $ 20,610 $ 12,869 $ 20,612 $ 12,883 The tables below present a gross presentation, the effects of offsetting, and a net presentation of the Company’s financial instruments subject to offsetting. The gross amounts of assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that financial assets and liabilities are presented on the Balance Sheet. As of December 31, 2022 Gross Amounts Not Offset in the Statement of Financial Position ($ in thousands) Gross Amounts Recognized Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets presented in the Statement of Financial Position Financial Instruments Fair Value Collateral Posted Net Amount Assets: Interest rate swaps $ 22,958 $ — $ 22,958 $ — $ 9,010 $ 13,948 Liabilities: Interest rate swaps $ 21,533 $ — $ 21,533 $ — $ — $ 21,533 Interest rate collar 48 — 48 — — 48 Securities sold under agreements to repurchase 270,773 — 270,773 — 270,773 — As of December 31, 2021 Gross Amounts Not Offset in the Statement of Financial Position ($ in thousands) Gross Amounts Recognized Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets presented in the Statement of Financial Position Financial Instruments Fair Value Collateral Posted Net Amount Assets: Interest rate swaps $ 12,869 $ — $ 12,869 $ 1,033 $ — $ 11,836 Liabilities: Interest rate swaps $ 15,794 $ — $ 15,794 $ 1,033 $ 14,031 $ 730 Securities sold under agreements to repurchase 331,006 — 331,006 — 331,006 — As of December 31, 2022, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $20.7 million. The company has minimum collateral posting thresholds with certain of its derivative counterparties and posts collateral related to derivatives in a net liability position. The Company has received cash collateral from counterparties on derivatives that were in a net asset position as noted in the tables above. |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | FIXED ASSETS A summary of fixed assets is as follows: December 31, ($ in thousands) 2022 2021 Land $ 12,362 $ 12,849 Buildings and leasehold improvements 50,243 52,012 Furniture, fixtures and equipment 19,569 18,821 82,174 83,682 Less accumulated depreciation and amortization 39,189 35,767 Total fixed assets $ 42,985 $ 47,915 Depreciation and amortization of fixed assets included in noninterest expense amounted to $5.6 million, $6.1 million, and $6.2 million in 2022, 2021, and 2020, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS The table below presents a summary of goodwill: ($ in thousands) Years ended December 31, 2022 2021 Goodwill, beginning of year $ 365,164 $ 260,567 Additions from acquisition — 104,597 Goodwill, end of year $ 365,164 $ 365,164 The table below presents a summary of intangible assets: ($ in thousands) Years ended December 31, 2022 2021 Core deposit intangible, net, beginning of year $ 22,286 $ 23,084 Additions from acquisition — 4,892 Amortization (5,367) (5,690) Core deposit intangible, net, end of year $ 16,919 $ 22,286 Amortization expense on the core deposit intangibles was $5.4 million for the year ended December 31, 2022 and $5.7 million for each of the years ended December 31, 2021 and 2020. The core deposit intangibles are being amortized over a 10-year period. The following table reflects the amortization schedule for the core deposit intangible at December 31, 2022. Year Core Deposit Intangible ($ in thousands) 2023 $ 4,601 2024 3,834 2025 3,068 2026 2,301 2027 1,535 After 2027 1,580 $ 16,919 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2022 | |
Maturities of Time Deposits [Abstract] | |
Deposits | DEPOSITS Following is a summary of certificates of deposit maturities at December 31, 2022: ($ in thousands) Brokered Customer Total Less than 1 year $ 61,173 $ 316,364 $ 377,537 Greater than 1 year and less than 2 years 37,869 72,172 110,041 Greater than 2 years and less than 3 years 19,926 9,408 29,334 Greater than 3 years and less than 4 years — 7,275 7,275 Greater than 4 years and less than 5 years — 2,037 2,037 Greater than 5 years — 4,484 4,484 $ 118,968 $ 411,740 $ 530,708 Certificates of deposit balances over the FDIC insurance limit of $250,000 were $124.6 million as of December 31, 2022. At December 31, 2022, deposit accounts of executive officers and directors, or to entities in which such individuals had beneficial interests as a shareholder, officer, or director totaled $1.1 million. The Company is a participant in certain networks that offer deposit placement services on a reciprocal basis that qualify large deposits for FDIC insurance. At December 31, 2022, the Company had $10.6 million of certificates of deposits and $195.1 million of demand deposits in these reciprocal accounts. At December 31, 2022 and 2021, overdraft deposits of $3.2 million and $1.3 million, respectively, were reclassified to loans. |
Subordinated Debentures
Subordinated Debentures | 12 Months Ended |
Dec. 31, 2022 | |
Subordinated Borrowings [Abstract] | |
Subordinated Debentures | SUBORDINATED DEBENTURES AND NOTES The following table summarizes the Company’s subordinated debentures at December 31: Amount Maturity Date Initial Call Date (1) Interest Rate ($ in thousands) 2022 2021 EFSC Clayco Statutory Trust I $ 3,196 $ 3,196 December 17, 2033 December 17, 2008 Floats 3MO LIBOR + 2.85% EFSC Capital Trust II 5,155 5,155 June 17, 2034 June 17, 2009 Floats 3MO LIBOR + 2.65% EFSC Statutory Trust III 11,341 11,341 December 15, 2034 December 15, 2009 Floats 3MO LIBOR + 1.97% EFSC Clayco Statutory Trust II 4,124 4,124 September 15, 2035 September 15, 2010 Floats 3MO LIBOR + 1.83% EFSC Statutory Trust IV 10,310 10,310 December 15, 2035 December 15, 2010 Floats 3MO LIBOR + 1.44% EFSC Statutory Trust V 4,124 4,124 September 15, 2036 September 15, 2011 Floats 3MO LIBOR + 1.60% EFSC Capital Trust VI 14,433 14,433 March 30, 2037 March 30, 2012 Floats 3MO LIBOR + 1.60% EFSC Capital Trust VII 4,124 4,124 December 15, 2037 December 15, 2012 Floats 3MO LIBOR + 2.25% JEFFCO Stat Trust I 7,732 7,732 February 22, 2031 February 22, 2011 Fixed 10.20% JEFFCO Stat Trust II (2) 4,550 4,496 March 17, 2034 March 17, 2009 Floats 3MO LIBOR + 2.75% Trinity Capital Trust III (2) 5,406 5,339 September 8, 2034 September 8, 2009 Floats 3MO LIBOR + 2.70% Trinity Capital Trust IV 10,310 10,310 November 23, 2035 August 23, 2010 Fixed 6.88% Trinity Capital Trust V (2) 8,032 7,869 December 15, 2036 September 15, 2011 Floats 3MO LIBOR + 1.65% Total junior subordinated debentures 92,837 92,553 5.75% Fixed-to-floating rate subordinated notes 63,250 63,250 June 1, 2030 June 1, 2025 Fixed 5.75% until June 1, 2025, then floats Benchmark rate (3 month term SOFR) + 5.66% Debt issuance costs (654) (904) Total fixed-to-floating rate subordinated notes 62,596 62,346 Total subordinated debentures and notes $ 155,433 $ 154,899 (1) Callable each quarter after initial call date. (2) Purchase accounting adjustments are reflected in the balance and also impact the effective interest rate. The Company has 13 unconsolidated statutory business trusts. These trusts issued preferred securities that were sold to third parties. The sole purpose of the trusts was to invest the proceeds in junior subordinated debentures of the Company that have terms identical to the trust preferred securities. The subordinated debentures, which are the sole assets of the trusts, are subordinate and junior in right of payment to all present and future senior and subordinated indebtedness and certain other financial conditions of the Company. The Company fully and unconditionally guarantees each trust’s securities obligations. Under current regulations, the trust preferred securities are included in tier 1 capital for regulatory capital purposes, subject to certain limitations. The trust preferred securities are redeemable in whole or in part on or after their respective call dates. Mandatory redemption dates may be shortened if certain conditions are met. The securities are classified as subordinated debentures in the Company’s consolidated balance sheets. Interest on the subordinated debentures held by the trusts is recorded as interest expense in the Company’s Consolidated Statements of Income. The Company’s investment of $2.9 million at December 31, 2022, in these trusts is included in other investments in the consolidated balance sheets. The Company has fixed the interest rate on a portion of its junior subordinated debentures through a series of interest rate swaps. For further discussion of the interest rate swaps and the corresponding terms, see “Note 6 – Derivative Financial Instruments.” On November 1, 2016, the Company issued $50 million of fixed-to-floating rate subordinated notes. The notes initially bore a fixed annual interest rate of 4.75%, with interest payable semiannually in arrears on May 1 and November 1 of each year, commencing May 1, 2017. On November 1, 2021, the Company redeemed the |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances | 12 Months Ended |
Dec. 31, 2022 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Federal Home Loan Bank Advances | FEDERAL HOME LOAN BANK ADVANCES FHLB advances are collateralized by 1-4 family residential real estate loans, business loans, and certain commercial real estate loans. At December 31, 2022 and 2021, the carrying value of the loans pledged to the FHLB of Des Moines was $1.4 billion. The secured line of credit had availability of approximately $752.1 million at December 31, 2022. The following table summarizes the Company’s FHLB advances at December 31: 2022 2021 ($ in thousands) Outstanding Balance Weighted Rate Outstanding Balance Weighted Rate Non-amortizing fixed advance $ 100,000 4.57 % $ 50,000 1.56 % |
Other Borrowings and Notes Paya
Other Borrowings and Notes Payable | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Other Borrowings and Notes Payable | OTHER BORROWINGS Securities Sold Under Agreement to Repurchase The Company enters into sales of securities under agreements to repurchase. The agreements are transacted with deposit customers and are utilized as an overnight investment product. The amounts received under these agreements represent short-term borrowings and are reflected as a liability in the consolidated balance sheets. The securities underlying these agreements are included in investment securities in the Consolidated Balance Sheets. The Company has no control over the market value of the securities, which fluctuates due to market conditions. However, the Company is obligated to promptly transfer additional securities if the market value of the securities falls below the repurchase agreement price. The Company manages this risk by maintaining an unpledged securities portfolio that it believes is sufficient to cover a decline in the market value of the securities sold under agreements to repurchase. A summary of securities sold under agreements to repurchase is as follows: December 31, ($ in thousands) 2022 2021 Securities sold under agreement to repurchase $ 270,773 $ 331,006 Average balance during the year 211,039 225,895 Maximum balance outstanding at any month-end 284,269 331,006 Average interest rate during the year 0.24 % 0.10 % Average interest rate at December 31 1.44 % 0.06 % Federal Reserve Line The Bank also has a line with the Federal Reserve Bank of St. Louis which provides additional liquidity to the Company. As of December 31, 2022, $1.4 billion was available under this line. This line is secured by a pledge of certain eligible loans aggregating $1.6 billion. There were no amounts drawn on the Federal Reserve line of credit as of December 31, 2022. Other Borrowings The Bank has $36.2 million of borrowings from various entities related to New Market Tax Credit investments. These notes have varying terms that range from 26-31 years. These notes have an interest rate of 1.0% and are generally interest only for the first 7 years. Revolving Credit Line In February 2016, the Company entered into a senior unsecured revolving credit agreement (the “Revolving Agreement”) with another bank. The Revolving Agreement has a one-year term, maturing on February 22, 2023, allows for borrowings up to $25 million, and had an interest rate of one-month LIBOR plus 125 basis points until February 2022. In February 2022, the Revolving Agreement was renewed for a one-year term and the interest rate was amended to one-month Term SOFR plus 136 basis points. The proceeds can be used for general corporate purposes. The Revolving Agreement is subject to ongoing compliance with a number of customary affirmative and negative covenants as well as specified financial covenants. The revolving credit line was not accessed in 2022 or 2021. Term Loan In February 2019, the Company entered into a five year, $40.0 million unsecured term loan agreement (the “Term Loan”) with another bank with the proceeds primarily used to fund the company’s cash portion of an acquisition in 2019. The interest rate was one-month LIBOR plus 125 basis points until February 2022. In February 2022, the interest rate on the Term Loan was amended to one-month Term SOFR plus 136 basis points. A summary of the Term Loan is as follows: December 31, ($ in thousands) 2022 2021 Term Loan $ 17,143 $ 22,857 Average balance during the year 20,681 26,427 Maximum balance outstanding at any month-end 22,857 28,571 Weighted average interest rate during the year 2.94 % 1.40 % Average interest rate at December 31 5.48 % 1.38 % |
Litigation and Other Contingenc
Litigation and Other Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Litigation and Other Contingencies | LITIGATION AND OTHER CONTINGENCIES The Company and its subsidiaries are, from time to time, parties to various legal proceedings arising out of their businesses. Management believes there are no such legal proceedings pending or threatened against the Company or its subsidiaries in the ordinary course of business, directly, indirectly, or in the aggregate that, if determined adversely, would have a material adverse effect on the business, consolidated financial condition, results of operations or cash flows of the Company or any of its subsidiaries. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2022 | |
Regulated Operations [Abstract] | |
Regulatory Matters | REGULATORY CAPITAL Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum ratios (set forth in the following table) of total, tier 1, and common equity tier 1 capital to risk-weighted assets, and of tier 1 capital to average assets. Management believes, as of December 31, 2022 and 2021, that the Company met all capital adequacy requirements to which it is subject. As of December 31, 2022 and 2021, the Bank was categorized as “well-capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well-capitalized” the Bank must maintain minimum total risk-based capital, tier 1 risk-based capital, common equity tier 1 risk-based capital, and tier 1 leverage ratios as set forth in the following table. In addition, the Company must maintain an additional CCB above the regulatory minimum ratio requirements. The CCB is designed to insulate banks from periods of stress and impose constraints on dividends, share repurchases and discretionary bonus payments when capital levels fall below prescribed levels. The capital ratios are presented in the following table: December 31, 2022 December 31, 2021 EFSC Bank EFSC Bank To Be Well-Capitalized Minimum Ratio Common Equity Tier 1 Capital to Risk Weighted Assets 11.1 % 12.1 % 11.3 % 12.5 % 6.5 % 7.0 % Tier 1 Capital to Risk Weighted Assets 12.6 % 12.1 % 13.0 % 12.5 % 8.0 % 8.5 % Total Capital to Risk Weighted Assets 14.2 % 13.1 % 14.7 % 13.5 % 10.0 % 10.5 % Leverage Ratio (Tier 1 Capital to Average Assets) 10.9 % 10.5 % 9.7 % 9.3 % 5.0 % 4.0 % |
Compensation Plans
Compensation Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Compensation Plans | SHAREHOLDERS’ EQUITY AND COMPENSATION PLANS Shareholders’ Equity Common Stock At December 31, 2022 and 2021, the Company has reserved the following shares of its authorized but unissued common stock for possible future issuance in connection with the following: December 31, 2022 December 31, 2021 Outstanding performance units (maximum issuance) 209,702 169,244 Outstanding RSU’s 269,868 181,657 Outstanding options 222,032 112,927 2018 Stock Incentive Plan 342,157 670,326 Non-Management Director Plan 55,878 73,618 2018 Employee Stock Purchase Plan 515,941 571,064 Total 1,615,578 1,778,836 Common Stock Repurchase Plan In April 2021, the Company’s board of directors authorized the repurchase of up to two million shares of the Company’s common stock. As of May 2022, this plan was depleted. In May 2022, the Company’s board of directors authorized the repurchase of up to two million shares of the Company’s common stock. The repurchases may be made in open market or privately negotiated transactions and the stock repurchase program will remain in effect until fully utilized or until modified, superseded or terminated. At December 31, 2022, there were two million shares available for repurchase under the plan. Preferred Stock The Company has 5,000,000 shares of authorized preferred stock with a par value of $0.01 with 75,000 shares issued and outstanding at the end of 2022. The Board of Directors has the right to set for each series of preferred stock, subject to the laws of the State of Delaware, the dividend rate, conversion and redemption terms, voting rights and liquidation preferences, among others. In the fourth quarter 2021, the Company issued and sold 3,000,000 depositary shares, each representing 1/40th interest in a share of the Company’s 5% Noncumulative, Perpetual Preferred Stock, Series A (“Series A Preferred Stock”), totaling $72.0 million, net of issuance costs. The depositary shares trade under the ticker “EFSCP”. The Series A Preferred Stock may be redeemed at the Company’s option, subject to prior regulatory approval, in whole or in part on any dividend payment date on or after December 15, 2026 or within 90 days following a regulatory capital event, as defined in the offering documents. If any Series A Preferred Stock are redeemed, a proportionate number of depositary shares will also be redeemed. Dividends The Company’s ability to pay dividends to its shareholders is generally dependent upon the payment of dividends by the Bank to the parent company. The Bank cannot pay dividends to the extent it would be deemed undercapitalized by the FDIC after making such dividend. Preferred stock dividends, when and if declared by the board of directors, are payable, quarterly in arrears, on March 15, June 15, September 15 and December 15 of each year. If dividends on the Series A Preferred stock have not been declared or paid in six quarterly periods, whether or not consecutive, the number of directors on the board will automatically be increased by two and the holders of the Series A preferred stock will be entitled to vote for the additional directors. Dividends on the Company’s capital stock are prohibited under the terms of the junior subordinated debenture agreements, see “Note 10 – Subordinated Debentures,” if the Company is in continuous default on its payment obligations to the capital trusts, has elected to defer interest payments on the debentures or extends the interest payment period. Furthermore, unless dividends on all outstanding shares of the Series A Preferred Stock for the most recently completed dividend period have been paid or declared, dividends on, and repurchases of, common stock is prohibited. At December 31, 2022, the Company was not in default on any of the junior subordinated debenture issuances or preferred stock. Accumulated Other Comprehensive Income (Loss) The following table presents the changes in accumulated other comprehensive income (loss) after-tax by component: ($ in thousands) Net Unrealized Gain (Loss) on Available-for-Sale Debt Securities Unamortized Gain (Loss) on Held-to-Maturity Securities Net Unrealized Gain (Loss) on Cash Flow Hedges Total Balance, December 31, 2019 $ 14,977 $ 4,934 $ (2,162) $ 17,749 Net change 23,627 (1,910) (2,346) 19,371 Transfer from available-for-sale to held-to-maturity (16,284) 16,284 — — Balance, December 31, 2020 $ 22,320 $ 19,308 $ (4,508) $ 37,120 Net change (17,049) (3,624) 2,330 (18,343) Balance, December 31, 2021 $ 5,271 $ 15,684 $ (2,178) $ 18,777 Net change (149,623) (2,696) 3,210 (149,109) Transfer from available-for-sale to held-to-maturity (197) $ 197 $ — $ — Balance, December 31, 2022 $ (144,549) $ 13,185 $ 1,032 $ (130,332) The following table presents the pre-tax and after-tax changes in the components of other comprehensive income: 2022 2021 2020 ($ in thousands) Pre-tax Tax effect After-tax Pre-tax Tax effect After-tax Pre-tax Tax effect After-tax Change in unrealized gain (loss) on available-for-sale securities $ (200,030) $ (50,407) $ (149,623) $ (22,701) $ (5,652) $ (17,049) $ 31,798 $ 7,854 $ 23,944 Reclassification of gain on sale of available-for-sale securities(a) — — — — — — (421) (104) (317) Reclassification of gain on held-to-maturity securities(b) (3,605) (909) (2,696) (4,672) (1,048) (3,624) (2,537) (627) (1,910) Change in unrealized gain (loss) on cash flow hedges 3,741 943 2,798 1,533 372 1,161 (7,898) (1,951) (5,947) Reclassification of loss on cash flow hedges(b) 551 139 412 1,543 374 1,169 4,782 1,181 3,601 Total other comprehensive income (loss) $ (199,343) $ (50,234) $ (149,109) $ (24,297) $ (5,954) $ (18,343) $ 25,724 $ 6,353 $ 19,371 (a) The pre-tax amount is reported in noninterest income/expense in the Consolidated Statements of Income. (b) The pre-tax amount is reported in interest income/expense in the Consolidated Statements of Income, except for a $3.2 million termination fee in 2020 recognized in noninterest expense. Compensation Plans The Company has adopted share-based compensation plans to reward and provide long-term incentive for directors and key employees of the Company including its subsidiaries. These plans provide for the granting of stock, stock options, stock-settled stock appreciation rights, and restricted stock units (“RSUs”), and may contain performance terms for key employees as designated by the Company’s Board of Directors upon the recommendation of the Compensation Committee of the Board. The Company uses authorized and unissued shares to satisfy share award exercises. The total excess income tax benefit (expense) for share-based compensation arrangements was $0.1 million, $(0.1) million, and $0.2 million for the years ended December 31, 2022, 2021, and 2020, respectively. At December 31, 2022, there was $13.9 million of total unrecognized compensation cost related to unvested share-based compensation awards. The cost is expected to be recognized over a weighted-average term of 2 years. The following table summarizes share-based compensation expense: ($ in thousands) 2022 2021 2020 Performance stock units $ 2,391 $ 1,777 $ 1,097 Restricted stock units 4,156 3,109 2,613 Stock options 916 396 — Employee stock purchase plan 543 735 468 Total share-based compensation expense $ 8,006 $ 6,017 $ 4,178 Performance Units The Company has entered into long-term incentive agreements with certain key employees. These awards are conditioned on certain performance criteria and market criteria measured against a group of peer banks over a three-year period for each grant. The awards contain minimum (threshold), target, and maximum (exceptional) performance levels. In the event of a change in control, as defined in the plan, the awards will vest at a minimum of the target level. The amount of the awards is determined at the end of the three-year vesting and performance period. The fair value of performance units vesting in 2022, 2021, and 2020 were $0.5 million, $0.9 million, and $2.8 million, respectively. Information related to the outstanding grants at December 31, 2022 is shown below: ($ in thousands) 2020 - 2022 Cycle 2021 - 2023 Cycle 2022 - 2024 Cycle Shares issuable at target 24,674 38,412 41,765 Maximum shares issuable 49,348 76,824 83,530 Unrecognized compensation cost $ 42 $ 981 $ 2,301 Weighted average grant date fair value $ 38.09 $ 47.16 $ 51.91 Maximum Shares Issuable Outstanding at December 31, 2021 169,244 Granted 86,978 Vested (issued 11,275 shares) (39,152) Forfeited (7,368) Outstanding at December 31, 2022 209,702 Restricted Stock Units The Company awards nonvested stock, in the form of RSUs to employees. RSUs generally are subject to continued employment and generally vest ratably over three Various information related to the RSUs is shown below. ($ in thousands) 2022 2021 2020 Total fair value at vesting date $ 3,888 $ 2,855 $ 1,702 Unrecognized compensation cost 8,507 4,622 3,899 Expected years to recognize unearned compensation 2.0 years 1.9 years 1.9 years Weighted average grant date fair value $ 47.96 $ 44.01 $ 39.63 A summary of the status of the Company’s RSU awards as of December 31, 2022 and changes during the year then ended is presented below. Shares Weighted Average Outstanding at December 31, 2021 181,657 $ 42.71 Granted 180,400 47.96 Vested (79,617) 43.02 Forfeited (12,572) 34.99 Outstanding at December 31, 2022 269,868 $ 46.49 Stock Options In determining compensation cost for stock options, the Black-Scholes option-pricing model is used to estimate the fair value on date of grant. The model utilizes several assumptions in its calculations. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield in effect at the time of the grant. The expected term of options granted is based on the option's vesting schedule and expected exercise patterns and represent the period of time options granted are expected to be outstanding. The expected volatility is based on the historical volatility of the Company's stock and expected term of the option. The dividend yield is determined by annualizing the dividend rate as a percentage of the Company's stock price. The following weighted average assumptions were used for grants issued during the year ended December 31, 2022. Weighted Average Risk Free Interest Rate 1.95% Expected Dividend Yield 1.74% Expected Volatility 34.54% Expected Term (years) 6.2 Non-qualified stock options have been granted to key employees with exercise prices equal to the market price of the Company’s common stock at the date of grant and 10-year contractual terms. Stock options have a vesting schedule of three Following is a summary of stock option activity for 2022. ($ in thousands, except per share data) Shares Weighted Weighted Outstanding at December 31, 2021 112,927 $ 43.80 Granted 120,707 48.24 Exercised (1,445) 43.81 Forfeited (10,157) 45.81 Outstanding at December 31, 2022 222,032 $ 46.12 8.7 years Exercisable at December 31, 2022 18,196 $ 43.80 8.2 years The intrinsic value of options exercised totaled $0.1 million in 2022. There were no options exercised in 2021 or 2020. Employee Stock Purchase Plan The Company’s Employee Stock Purchase Plan (“ESPP”) provides its eligible employees with an opportunity to purchase common stock through accumulated payroll contributions. The ESPP provides for shares to be purchased at 85% of the lesser of the stock price at the enrollment date or the exercise date. The maximum number of shares of common stock available for sale under the ESPP is 750,000. In 2022, 2021, and 2020, employees purchased 55,123, 64,826, and 58,195 shares, respectively, and there are 515,941 remaining shares available under the ESPP at December 31, 2022. Stock Plan for Non-Management Directors The Company has adopted a Stock Plan for Non-Management Directors, which provides for issuing up to 200,000 shares of common stock to non-management directors as compensation. At December 31, 2022, there were 35,909 shares of stock available for grant under the Stock Plan for Non-Management Directors, exclusive of 19,969 shares to be issued upon deferral release. Various information related to the Director Plan is shown below. 2022 2021 2020 Shares granted 23,343 12,998 15,901 Weighted average grant date fair value $ 42.17 $ 46.05 $ 30.28 401(k) Plan The Company has a 401(k) savings plan which covers substantially all full-time employees over the age of 21 and matches 100% of the first 6% of employee contributions. The amount charged to expense for the Company’s contributions to the plan was $5.8 million, $4.9 million and $3.8 million for 2022, 2021, and 2020, respectively. Deferred Compensation Plan The Company has a nonqualified deferred compensation plan that permits certain executives to participate and defer up to 25% of their base salary and/or up to 100% of their eligible bonus for a plan year. Participants make an irrevocable election when they elect to participate for a plan year to receive the vested account balance following their retirement date, or at a future date not less than five years after the beginning of the plan year. At December 31, 2022, the Company had a liability of $3.5 million related to the deferred compensation plan. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The components of income tax expense (benefit) for the years ended December 31, are as follows: Year ended December 31, ($ in thousands) 2022 2021 2020 Current: Federal $ 42,718 $ 29,835 $ 25,132 State and local 11,505 5,198 5,009 Total current 54,223 35,033 30,141 Deferred: Federal 1,853 870 (10,651) State and local 341 (325) (1,927) Total deferred 2,194 545 (12,578) Total income tax expense $ 56,417 $ 35,578 $ 17,563 A reconciliation of expected income tax expense, computed by applying the statutory federal income tax rate to income before income taxes reflected in the Consolidated Statements of Income is as follows: Year ended December 31, ($ in thousands) 2022 2021 2020 Income tax expense at statutory rate $ 54,487 $ 35,413 $ 19,309 Increase (reduction) in income tax resulting from: Tax-exempt interest income, net (4,351) (3,198) (2,010) State and local income taxes, net 9,767 4,936 3,254 Bank-owned life insurance (545) (713) (778) Non-deductible expenses 926 1,090 637 Tax benefit of low-income housing tax credit ("LIHTC") investments, net (195) (132) (444) Excess tax benefits (68) 146 (175) Federal tax credits (3,661) (1,136) (1,327) Non-taxable donation to charitable foundation — (263) — Other, net 57 (565) (903) Total income tax expense $ 56,417 $ 35,578 $ 17,563 The net amount recognized as a component of tax expense for tax credits, other tax benefits, and amortization from LIHTC investments recognized per the table above was $0.2 million, $0.1 million and $0.4 million for the years ended December 31, 2022, 2021, and 2020 respectively. As of December 31, 2022 and 2021, the carrying value of the investments related to low-income housing tax credits was $7.3 million and $7.6 million, respectively. No impairment losses have been recognized from forfeiture or ineligibility of tax credits or other circumstances during the life of any of the investments. A net deferred income tax asset of $89.0 million and $40.9 million is included in other assets in the consolidated balance sheets at December 31, 2022 and 2021, respectively. The tax effect of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities is as follows: Year ended December 31, ($ in thousands) 2022 2021 Deferred tax assets: Allowance for loan losses $ 34,507 $ 36,550 Loans held-for-sale 5,917 6,971 Other real estate 179 305 Deferred compensation 3,527 2,704 Accrued compensation 6,294 5,881 Unrealized losses on securities, net 44,094 — Net operating losses and tax credits 5,829 6,061 Lease liability accrual 4,545 3,747 Other investments 4,293 3,169 Other deferred tax assets 6,463 5,594 Total deferred tax assets 115,648 70,982 Deferred tax liabilities: Acquired loans 2,212 1,709 Unrealized gains on securities, net — 6,171 Intangible assets 8,676 8,789 Right of use asset 4,374 3,670 Other investments 7,530 5,646 Other deferred tax liabilities 1,065 1,277 Total deferred tax liabilities 23,857 27,262 Net deferred tax asset before valuation allowance 91,791 43,720 Less: valuation allowance 2,830 2,830 Net deferred tax asset $ 88,961 $ 40,890 As part of an acquisition in 2019, the company acquired net operating loss, tax credit, and capital loss deferred tax assets. Net operating losses originated in the years 2012, 2014-2017, and 2019 and will expire in the years between 2032-2037. Tax credit carryforwards originated in years 2010-2015 and will expire in the years between 2030-2035. A valuation allowance is provided on deferred tax assets when it is more likely than not that some portion of the assets will not be realized. The company determined it was more likely than not that some of the acquired note operating loss and tax credit assets would not be realized and has recognized a valuation allowance of $2.8 million at both December 31, 2022 and 2021, respectively. The Company and its subsidiaries file income tax returns in the federal jurisdiction and in thirty-one states. The Company is no longer subject to federal, state or local income tax audits by tax authorities for years before 2017, with the exception of 2016 being an open year by one state taxing authority. Net operating losses generated prior to 2016 that are utilized going forward would still be subject to examination. As of December 31, 2022, the gross amount of unrecognized tax benefits was $2.7 million and the total amount of net unrecognized tax benefits that would impact the effective tax rate, if recognized, was $2.2 million. As of December 31, 2021 and 2020, the total amount of the net unrecognized tax benefits that would impact the effective tax rate, if recognized, was $2.5 million and $3.1 million, respectively. The Company believes it is reasonably possible the gross amount of unrecognized benefits will be reduced by approximately $0.4 million as a result of a lapse of statute of limitations in the next 12 months. The Company is under audit by the state of Missouri, and while the Company has concluded it has adequately provided for uncertain tax positions, the outcome of such audits are always uncertain and could result in additional tax expense, though immaterial. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense and classifies such interest and penalties in the liability for unrecognized tax benefits. The amount accrued for interest and penalties was $0.6 million as of December 31, 2022, $0.5 million for 2021, and $0.9 million for 2020. The activity in the gross liability for unrecognized tax benefits was as follows: ($ in thousands) 2022 2021 2020 Balance at beginning of year $ 2,697 $ 3,157 $ 1,497 Additions based on tax positions related to the current year 683 563 395 Additions for tax positions of prior years 47 436 1,556 Settlements for tax positions of prior years (82) (1,289) — Settlements or lapse of statute of limitations (621) (170) (291) Balance at end of year $ 2,724 $ 2,697 $ 3,157 |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | COMMITMENTS Long-term Lease Commitments See “Note 5 – Leases” in this report for information regarding the Company’s long-term lease commitments. Off-balance-Sheet Commitments The Company issues financial instruments in the normal course of the business of meeting the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments may involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The Company’s extent of involvement and maximum potential exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is not more than the contractual amount of these instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for financial instruments included on its consolidated balance sheets. The contractual amounts of off-balance-sheet financial instruments as of December 31, 2022, and December 31, 2021, are as follows: (in thousands) December 31, 2022 December 31, 2021 Commitments to extend credit $ 3,113,966 $ 2,481,173 Letters of credit 68,544 77,314 Tax credits 4,075 18,118 Limited partnership commitments 35,090 21,553 There was an insignificant amount of unadvanced commitments on impaired loans at December 31, 2022 and December 31, 2021. Other liabilities include approximately $12.1 million for an allowance for credit losses attributable to unadvanced commitments at December 31, 2022. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments usually have fixed expiration dates or other termination clauses, may have significant usage restrictions, and may require payment of a fee. Of the total commitments to extend credit at December 31, 2022, and December 31, 2021, $246.5 million and $238.7 million, respectively, represent fixed rate loan commitments. Since certain of the commitments may expire without being drawn upon or may be revoked, the total commitment amounts do not necessarily represent future cash obligations. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral held varies, but may include accounts receivable, inventory, premises and equipment, and real estate. Letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. These letters of credit are issued to support contractual obligations of the Company’s customers. The credit risk involved in issuing letters of credit is essentially the same as the risk involved in extending loans to customers. The approximate remaining term of letters of credit range from one month to 11 years at December 31, 2022. The Company also has off-balance sheet commitments for purchases of tax credits and commitments for various capital raises for limited partnership investments . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The fair value of an asset or liability is the exchange price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. ASC Topic 820, Fair Value Measurements and Disclosures, establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: • Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. • Level 2 Inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. • Level 3 Inputs - Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. Fair value on a recurring basis The following table summarizes financial instruments measured at fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value. December 31, 2022 ($ in thousands) Quoted Prices in Significant Significant Total Fair Assets Securities available-for-sale Obligations of U.S. Government-sponsored enterprises $ — $ 237,785 $ — $ 237,785 Obligations of states and political subdivisions — 417,444 — 417,444 Residential mortgage-backed securities — 659,404 — 659,404 Corporate debt securities — 12,640 — 12,640 U.S. Treasury Bills — 208,534 — 208,534 Total securities available-for-sale — 1,535,807 — 1,535,807 Other investments — 2,667 — 2,667 Derivative financial instruments — 22,958 — 22,958 Total assets $ — $ 1,561,432 $ — $ 1,561,432 Liabilities Derivative financial instruments $ — $ 21,581 $ — $ 21,581 Total liabilities $ — $ 21,581 $ — $ 21,581 December 31, 2021 ($ in thousands) Quoted Prices in Significant Significant Total Fair Assets Securities available-for-sale Obligations of U.S. Government-sponsored enterprises $ — $ 173,511 $ — $ 173,511 Obligations of states and political subdivisions — 575,084 — 575,084 Residential mortgage-backed securities — 513,859 — 513,859 Corporate debt securities — 12,382 — 12,382 U.S. Treasury Bills — 91,170 — 91,170 Total securities available-for-sale — 1,366,006 — 1,366,006 Other investments — 3,012 — 3,012 Derivative financial instruments — 12,869 — 12,869 Total assets $ — $ 1,381,887 $ — $ 1,381,887 Liabilities Derivative financial instruments $ — $ 15,794 $ — $ 15,794 Total liabilities $ — $ 15,794 $ — $ 15,794 • Securities available-for-sale . Securities classified as available-for-sale are reported at fair value utilizing Level 2 inputs. Fair values for Level 2 securities are based upon dealer quotes, market spreads, the U.S. Treasury yield curve, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions at the security level. Changes in fair value are recognized through accumulated other comprehensive income. • Derivatives . Derivatives are reported at fair value utilizing Level 2 inputs. The Company obtains counterparty quotations to value its interest rate swaps and caps. In addition, the Company validates the counterparty quotations with third-party valuation sources. Derivatives with negative fair values are included in Other liabilities in the consolidated balance sheets. Derivatives with positive fair value are included in Other assets in the consolidated balance sheets. Changes in the fair value of client-related derivative instruments are recognized through net income. For the years ended December 31, 2022 and 2021, the gains and losses substantially offset each other due to the Company’s hedging of the client swaps with other bank counterparties. Fair value on a non-recurring basis Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). • Individually-evaluated loans . On a quarterly basis, fair value adjustments are recorded as necessary on loans that no longer exhibit risk characteristics similar to other loans to account for (1) partial write-downs based on the current appraised or market-quoted value of the underlying collateral or (2) the full charge-off of the loan carrying value. In some cases, the properties for which market quotes or appraised values have been obtained are located in areas where comparable sales data is limited, outdated, or unavailable. In addition, the Company may adjust the valuations based on other relevant market conditions or information. Accordingly, fair value estimates, including those obtained from real estate brokers or other third-party consultants, for collateral-dependent loans are classified in Level 3 of the valuation hierarchy. Fair value estimates on individually-evaluated loans utilizing a discounted cash flow approach are also classified as Level 3. • Other real estate. These assets are reported at the lower of the loan carrying amount at foreclosure or fair value. Fair value is based on third party appraisals of each property and the Company’s judgment of other relevant market conditions. These are considered Level 3 inputs. • Loan servicing asset . The loan servicing asset is included in Other assets on the Company’s consolidated balance sheets and assessed for impairment on a quarterly basis. Market-based cash flow modeling and discounting models specific to the SBA industry are provided by a third-party valuation service and are considered Level 2 inputs. The following tables present financial instruments and non-financial assets measured at fair value on a non-recurring basis. December 31, 2022 (1) (1) (1) (1) ($ in thousands) Total Fair Value Quoted Prices in Active Significant Significant Other real estate 269 — — 269 Loan servicing asset 1,027 $ 1,027 $ — Total $ 1,296 $ — $ 1,027 $ 269 December 31, 2021 (1) (1) (1) (1) ($ in thousands) Total Fair Value Quoted Prices in Active Significant Significant Impaired loans $ 6,406 $ — $ — $ 6,406 Other real estate 632 — — 632 Loan servicing asset 3,146 3,146 — Total $ 10,184 $ — $ 3,146 $ 7,038 (1) The amounts represent balances measured at fair value during the period and still held as of the reporting date. Carrying amount and fair value at December 31, 2022 and 2021 Following is a summary of the carrying amounts and fair values of the Company’s financial instruments on the consolidated balance sheets at December 31, 2022 and 2021. This summary excludes certain financial assets and liabilities for which carrying value approximates fair value and financial instruments that are recorded at fair value on a recurring basis disclosed above. Financial instruments for which carrying values approximate fair value include cash and due from banks, federal funds sold, interest bearing deposits, accrued interest receivable/payable, demand, savings and money market deposits. December 31, 2022 December 31, 2021 ($ in thousands) Carrying Amount Estimated fair value Level Carrying Amount Estimated fair value Level Balance sheet assets Securities held-to-maturity $ 709,915 $ 628,517 Level 2 $ 429,681 $ 434,672 Level 2 Other investments 61,123 61,123 Level 2 56,884 56,884 Level 2 Loans held-for-sale 1,228 1,228 Level 2 6,389 6,389 Level 2 Loans, net 9,600,206 9,328,844 Level 3 8,872,601 8,869,891 Level 3 State tax credits, held-for-sale 27,700 28,880 Level 3 27,994 30,686 Level 3 Servicing asset 3,648 3,905 Level 2 6,714 6,714 Level 2 Balance sheet liabilities Certificates of deposit $ 530,708 $ 512,229 Level 3 $ 608,293 $ 606,177 Level 3 Subordinated debentures and notes 155,433 152,679 Level 2 154,899 155,972 Level 2 FHLB advances 100,000 100,004 Level 2 50,000 51,527 Level 2 Other borrowings 324,119 324,119 Level 2 353,863 353,863 Level 2 Limitations Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment, and therefore, cannot be determined with precision. Such estimates include the valuation of loans, goodwill, intangible assets, and other long-lived assets, along with assumptions used in the calculation of income taxes, among others. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using experience and other factors, including the current economic environment. Such estimates and assumptions are adjusted when facts and circumstances dictate. Changing real estate values, illiquid credit markets, volatile equity markets, and changes in consumer spending have combined to increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. In addition, these estimates do not reflect any premium or discount that could result from offering for sale the Company’s entire holdings of a particular financial instrument at one time. Fair value estimates are based on existing on-balance and off-balance-sheet financial instruments without |
Parent Company Only Condensed_2
Parent Company Only Condensed Financial Statements | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Only Condensed Financial Statements | PARENT COMPANY ONLY CONDENSED FINANCIAL STATEMENTS Condensed Balance Sheets December 31, ($ in thousands) 2022 2021 Assets Cash $ 99,018 $ 94,760 Investment in Bank 1,553,657 1,568,796 Investment in nonbank subsidiaries 16,476 14,302 Other assets 30,312 33,847 Total assets $ 1,699,463 $ 1,711,705 Liabilities and Shareholders’ Equity Subordinated debentures and notes $ 155,433 $ 154,899 Notes payable 17,143 22,857 Accounts payable and other liabilities 4,624 4,833 Shareholders' equity 1,522,263 1,529,116 Total liabilities and shareholders' equity $ 1,699,463 $ 1,711,705 Condensed Statements of Income Year ended December 31, ($ in thousands) 2022 2021 2020 Income: Dividends from Bank $ 75,000 $ 95,000 $ 37,000 Dividends from nonbank subsidiaries 1,700 2,000 1,400 Other 1,086 3,600 483 Total income 77,786 100,600 38,883 Expenses: Interest expense 9,825 11,406 10,590 Other expenses 8,580 11,037 6,946 Total expenses 18,405 22,443 17,536 Income before taxes and equity in undistributed earnings of subsidiaries 59,381 78,157 21,347 Income tax benefit 3,585 3,710 3,448 Net income before equity in undistributed earnings of subsidiaries 62,966 81,867 24,795 Equity in undistributed earnings of subsidiaries 140,077 51,188 49,589 Net income $ 203,043 $ 133,055 $ 74,384 Condensed Statements of Cash Flows Year ended December 31, ($ in thousands) 2022 2021 2020 Cash flows from operating activities: Net income $ 203,043 $ 133,055 $ 74,384 Adjustments to reconcile net income to net cash provided by operating activities: Share-based compensation 8,006 6,017 4,178 Net income of subsidiaries (216,777) (148,188) (87,989) Dividends from subsidiaries 76,700 97,000 38,400 Other, net 6,102 (16) 3,588 Net cash provided by operating activities 77,074 87,868 32,561 Cash flows from investing activities: Proceeds (cash paid) for acquisitions, net of cash acquired — 2,346 (1,243) Purchases of other investments (2,187) (2,204) (1,166) Proceeds from distributions on other investments 3,878 2,656 765 Net cash provided by (used in) investing activities 1,691 2,798 (1,644) Cash flows from financing activities: Proceeds from issuance of subordinated notes — — 61,953 Payments for the redemption of subordinated notes — (50,000) — Repayment of long-term debt (5,714) (7,143) (4,286) Dividends paid on common stock (33,602) (26,153) (19,795) Payments for the repurchase of common stock (32,923) (60,589) (15,347) Proceeds from issuance of preferred stock — 71,988 — Dividends paid on preferred stock (4,041) — — Other 1,773 516 78 Net cash provided by (used in) financing activities (74,507) (71,381) 22,603 Net increase in cash and cash equivalents 4,258 19,285 53,520 Cash and cash equivalents, beginning of year 94,760 75,475 21,955 Cash and cash equivalents, end of year $ 99,018 $ 94,760 $ 75,475 Supplemental disclosures of cash flow information: Noncash transactions: Common shares issued in connection with acquisitions $ — $ 343,650 $ 167,035 |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information | SUPPLEMENTAL FINANCIAL INFORMATION The following table presents other income and other expense components that primarily exceed one percent of the aggregate of total interest income and noninterest income in one or more of the periods indicated: Year ended December 31, ($ in thousands) 2022 2021 2020 Other income: Community development fees $ 5,304 $ 5,491 $ 3,353 Bank-owned life insurance 3,324 2,938 3,194 Other income 8,089 13,719 10,415 Total other noninterest income $ 16,717 $ 22,148 $ 16,962 Other expense: Amortization of intangibles $ 5,367 $ 5,691 $ 5,673 Banking expenses 7,212 6,123 4,921 Deposit costs 31,082 14,211 1,410 FDIC and other insurance 7,098 5,789 3,897 Loan, legal expenses 6,943 7,130 4,003 Outside services 5,399 4,992 4,961 Other expenses 25,854 18,739 19,385 Total other noninterest expenses $ 88,955 $ 62,675 $ 44,250 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Business and Consolidation | Enterprise is a financial holding company that provides a full range of banking and wealth management services to individuals and corporate customers primarily located in the Arizona, California, Kansas, Missouri, Nevada, and New Mexico markets through its banking subsidiary, Enterprise Bank & Trust. All intercompany accounts and transactions have been eliminated.The Company and its banking subsidiary are subject to the regulations of various federal and state agencies and undergo periodic examinations by those regulatory agencies. The Company has one operating segment. |
Use of Estimates | The consolidated financial statements of the Company have been prepared in conformity with GAAP. In preparing the consolidated financial statements, management is required to make estimates and assumptions, which significantly affect the reported amounts in the consolidated financial statements. Such estimates include the valuation of loans, goodwill, intangible assets, and other long-lived assets, along with assumptions used in the calculation of income taxes, among others. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. Management adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. |
Cash Flow Information | For purposes of reporting cash flows, the Company considers cash and due from banks, interest-bearing deposits and federal funds sold that mature within 90 days of the balance sheet date to be cash and cash equivalents. The balances at December 31, 2022 and 2021 were not subject to reserve requirements from the Federal Reserve. |
Investments | The Company has classified all investments in debt securities as available-for-sale or held-to-maturity. Securities classified as available-for-sale are carried at fair value. Unrealized holding gains and losses for available-for-sale securities are excluded from earnings and reported as a net amount as a separate component of shareholders’ equity until realized. All previous fair value adjustments included in the separate component of shareholders’ equity are reversed upon sale. Securities classified as held-to-maturity are carried at amortized cost and adjusted for amortization of premiums and accretion of discounts. An ACL on held-to-maturity securities is deducted from the amortized cost basis of the securities to reflect the expected amount to be collected. When it is determined a security will not be collected, the balance is written-off through the allowance. In evaluating the need for an ACL, securities with similar risk characteristics are grouped and an estimate of expected cash flows is determined using loss experience, adjusted for current and reasonable and supportable forecasts of economic conditions. For available-for-sale securities in a loss position, the Company evaluates whether the decline in fair value below amortized cost resulted from a credit loss or other factors. Losses attributed to credit are recognized through an ACL on available-for-sale securities, limited to the amount that the fair value of securities is less than the amortized cost basis. In assessing credit loss, the Company considers, among other things, (1) the extent to which fair value is less than the amortized cost basis, (2) adverse conditions specific to the security or industry, (3) historical payment patterns, (4) the likelihood of future payments, and (5) changes to the rating of a security by a rating agency. The Company has elected to exclude accrued interest receivable balances from the estimate of the ACL as these amounts are timely written off as a credit loss expense. Adjustments to the ACL on held-to-maturity and available-for-sale securities are recognized as a component of the provision for credit losses in the Consolidated Statements of Income. Premiums and discounts are amortized or accreted over the expected lives of the respective securities as an adjustment to yield using the interest method. Dividend and interest income is recognized when earned. Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of securities sold. |
Loans Receivable | The Company provides long-term financing of 1-4 family residential real estate by originating fixed and variable rate loans. Long-term fixed and variable rate loans are usually sold into the secondary market with limited recourse. Upon receipt of an application for a real estate loan, the Company determines whether the loan will be sold into the secondary market or retained in the Company’s loan portfolio. The interest rates on the loans sold are locked with the buyer and the Company bears no interest rate risk related to these loans. Mortgage loans held-for-sale are carried at the lower of cost or fair value, which is determined on a specific identification method. The Company does not retain servicing on these loans. The Company also originates SBA 7(a) loans that generally provide for a guarantee of 75% of the loan, up to a maximum amount. The guaranteed portion of the loan can be sold in an active secondary market. For the years ended December 31, 2022 and 2021, all SBA7(a) loans are considered held-for-investment; however, as the Company makes the determination to sell the loans, they will be moved into the held-for-sale category. Sales of SBA guaranteed loans are executed on a servicing retained basis, and the Company retains the rights and obligations to service the loans. At December 31, 2022, the Company was servicing SBA loans that had been sold and has recorded a related servicing asset of $3.6 million. The servicing asset is accounted for under the amortization method and is evaluated for impairment. Amortization of the servicing asset is recorded as a reduction to servicing income. Gains on the sale of held-for-sale loans are reported net of direct origination fees and costs in the Company’s Consolidated Statements of Income. Loans Loans are reported at the principal balance outstanding, net of unearned fees, costs, and premiums or discounts on acquired loans. Loan origination fees, direct origination costs, and premiums or discounts resulting from acquired loans are deferred and recognized over the lives of the related loans as a yield adjustment using the interest method. Interest on loans is accrued to income based on the principal balance outstanding. The recognition of interest income is discontinued when a loan becomes 90 days past due or a significant deterioration in the borrower’s credit has occurred which, in management’s judgment, negatively impacts the collectibility of the loan. Unpaid interest on such loans is reversed at the time the loan becomes uncollectible and subsequent interest payments received are generally applied to principal if any doubt exists as to the collectibility of such principal. Loans that have not been restructured are returned to accrual status when management believes full collectibility of principal and interest is expected. Non-accrual loans that have been restructured will remain in a non-accrual status until the borrower has made at least six months of consecutive contractual payments. The Company has elected to present the accrued interest receivable balance separate from amortized cost basis, to exclude accrued interest receivable balances from the tabular disclosures, and not to estimate an ACL on accrued interest receivable as these amounts are timely written off as a credit loss expense. Accrued interest receivable totaled $48.1 million and $30.6 million at December 31, 2022 and 2021, respectively, and were reported in Other Assets on the consolidated balance sheets. Acquired Loans Acquired loans are separated into two categories based on the credit risk characteristics of the underlying borrowers as either PCD, for loans which have experienced more than insignificant credit deterioration since origination, or loans with no credit deterioration (non-PCD). At the date of acquisition, an ACL on PCD loans is determined and added to the amortized cost basis of the individual loans. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. The ACL on PCD loans is recorded in the acquisition accounting and no provision for credit losses is recognized at the acquisition date. Subsequent changes to the ACL are recorded through provision expense. For non-PCD loans, an ACL is established immediately after the acquisition through a charge to the provision for credit losses. The ACL for both PCD and non-PCD is determined by pooling loans with similar risk characteristics and using the approach described below under “Allowance for Credit Losses on Loans”. Non-accrual Loans Loans are generally placed on non-accrual status when contractually past due 90 days or more as to interest or principal payments. Additionally, whenever management becomes aware of facts or circumstances that may adversely impact the collectability of principal or interest on loans, it is management’s practice to place such loans on non-accrual status immediately, rather than delaying such action until the loans become 90 days past due. Previously accrued and uncollected interest on such loans is reversed. Income is recorded only to the extent a determination has been made that the principal balance of the loan is collectible and the interest payments are subsequently received in cash, or for a restructured loan, the borrower has made six consecutive contractual payments. If collectibility of the principal is in doubt, payments received are applied to loan principal. Loans past due 90 days or more but still accruing interest are also generally included in nonperforming loans. Loans past due 90 days or more but still accruing are classified as such where the underlying loans are both well secured (the collateral value covers principal and accrued interest) and in the process of collection. Allowance for Credit Losses on Loans The ACL on loans is a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected. Loans are charged-off against the allowance when management deems the loan uncollectible. Management estimates the allowance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors. The ACL on loans is measured on a collective basis when similar risk characteristics exist. The Company has identified the following portfolio segments: C&I – C&I loans consist of loans to small and medium-sized businesses in a wide variety of industries. These loans are generally collateralized by inventory, accounts receivable, equipment, real estate and other commercial assets, and may be supported by other credit enhancements such as personal guarantees. Risk arises primarily due to a difference between expected and actual cash flows of the borrower. However, the recoverability of these loans is also dependent on other factors primarily dictated by the type of collateral securing these loans. The fair value of the collateral securing these loans may fluctuate as market conditions change. Included within C&I are revolving loans supported by borrowing bases that fluctuate depending on the amount of underlying collateral. A portion of C&I loans consists of sponsor finance, which are loans with senior debt exposure to private equity backed companies. CRE – CRE loans include various types of loans for which the Company holds real property as collateral. Commercial real estate lending activity is typically restricted to owner-occupied properties or to investor properties that are owned by customers with a current banking relationship. The primary risks of CRE loans include the borrower’s inability to pay, material decreases in the value of the real estate being held as collateral and significant increases in interest rates, which may make the real estate mortgage loan unprofitable. Real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. Construction and Land Development – The Company originates loans to finance construction projects including 1-4 family residences, multifamily residences, commercial office, and industrial projects. Construction loans are generally collateralized by first liens on the real estate and have floating interest rates. Construction loans are considered to have higher risks due to construction completion and timing risk, and the ultimate repayment being sensitive to interest rate changes, governmental regulation of real property and the availability of long-term financing. Additionally, economic conditions may impact the Company’s ability to recover its investment in construction loans. Adverse economic conditions may negatively impact the real estate market which could affect the borrowers’ ability to complete and sell the project. Additionally, the fair value of the underlying collateral may fluctuate as market conditions change. Residential Real Estate – The Company originates loans to finance one- to four-family residences, secured by both first and second liens. Repayment of these loans is dependent on the borrowers’ ability to pay and the fair value of the underlying collateral. Residential loans with a second lien are inherently riskier due to the junior lien position. Agricultural – Agricultural loans are generally secured with equipment, livestock, crops or other non-real property and at times the underlying real property. Agricultural loans are primarily included as a component of CRE and C&I loans. Consumer – The Company provides a broad range of consumer loans to customers, including personal lines of credit, credit cards, recreational vehicles, yachts and automobile loans. Repayment of these loans is dependent on the borrowers’ ability to pay and the fair value of the underlying collateral. Consumer loans are included as a component of Other loans. The Company utilizes a DCF method to measure the ACL on loans collectively evaluated that are sub-segmented by credit risk levels. The DCF method incorporates assumptions for probability of default, loss given default, prepayments and curtailments over the contractual term of the loans. In determining the probability of default, the Company utilized regression analysis to determine certain economic factors that are relevant loss drivers in the portfolio segments based on historical or peer evaluations. National unemployment is a loss driver used in all portfolios. The annual percentage change in gross domestic product is used in Construction, Agricultural, and Consumer portfolios. The annual percentage change in a commercial real estate index, national house price index and national retail sales are used in the CRE, Residential Real Estate and C&I portfolios, respectively. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower, or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. The Company uses a one-year reasonable and supportable forecast that considers baseline, upside and downside economic scenarios. For periods beyond the forecast period, the Company reverts to historical loss rates on a straight-line basis over a one-year period. Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in the collective evaluation. When management determines foreclosure is probable, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs. Other individually-evaluated loans may be remeasured using a discounted cash flow method if appropriate. Non-accrual loans, loans past due greater than 90 days and still accruing, unless adequately secured and in the process of collection, and restructured loans are evaluated individually. Loan Charge-Offs |
Other Real Estate | Other real estate represents property acquired through foreclosure or deeded to the Company in lieu of foreclosure on loans on which the borrowers have defaulted on the payment of principal or interest. Other real estate is initially recorded at fair value less cost to sell and subsequently at the lower of cost or fair value less estimated costs to sell. The fair value of other real estate is based upon estimates of future cash flows, market value of similar assets, if available, or independent appraisals. These estimates involve significant uncertainties and judgments. As a result, fair value estimates may not be realizable in a current sale or settlement of the other real estate. Gains, losses and writedowns resulting from the writedown or sale of other real estate are credited or charged to earnings. Gains and losses resulting from the sale of other real estate are credited or charged to current period earnings. Costs of maintaining and operating other real estate are expensed as incurred, and expenditures to complete or improve |
Fixed Assets | Buildings, leasehold improvements, furniture, fixtures, and equipment are stated at cost less accumulated depreciation. All categories are computed using the straight-line method over their respective estimated useful lives. Furniture, fixtures and equipment is depreciated over three ten |
State Tax Credits Held for Sale | The Company has purchased the rights to receive 10-year streams of state tax credits at agreed upon discount rates and sells such tax credits to its clients and others. State tax credits are accounted for at cost. The Company is also a minority partner in a joint venture, accounted for as an equity method investment, that purchases state income tax credits for resale to customers. Income from both the sale of state tax credits and earnings from the joint venture are reported as tax credit income in the Consolidated Statements of Income. |
Cash Surrender Value of Life Insurance | The Company has purchased bank-owned life insurance policies on certain bank officers. Bank-owned life insurance is recorded at its cash surrender value. Changes in the cash surrender values, including death benefits in excess of the carrying amount, are included in noninterest income. |
Federal Home Loan Bank Stock | The Bank, as a member of the FHLB, is required to maintain an investment in the capital stock of the FHLB. The stock is redeemable at par by the FHLB, and is, therefore, carried at cost and periodically evaluated for impairment. The Company records FHLB dividends in interest income. |
Goodwill and Other Intangible Assets | The Company tests goodwill for impairment on an annual basis and whenever events or changes in circumstances indicate the Company may not be able to recover the respective asset’s carrying amount. The Company’s annual test for impairment was performed in the fourth quarter of 2022. Such tests involve the use of estimates and assumptions. Potential impairments to goodwill must first be identified by performing a qualitative assessment which evaluates relevant events or circumstances to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If this test indicates it is more likely than not that goodwill has been impaired, then a quantitative impairment test is completed. The quantitative impairment test calculates the fair value of the reporting unit and compares it with its carrying amount, including goodwill. If the carrying amount of goodwill exceeds its implied fair market value, an impairment loss is recognized. That loss is equal to the carrying amount of goodwill that is in excess of its implied fair market value. Core deposit intangibles are amortized using an accelerated method over an estimated useful life of approximately 10 years. |
Impairment of Long-Lived Assets | Long-lived assets, such as fixed assets and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposal group classified as held-for-sale are presented separately in the appropriate asset and liability sections of the balance sheet. |
Derivative Financial Instruments and Hedging Activities | The Company uses derivative financial instruments to assist in managing interest rate sensitivity and to modify the repricing, maturity and option characteristics of certain assets and liabilities. In addition, the Company also offers an interest rate hedge program that includes interest rate swaps to assist its customers in managing their interest rate risk profile. In order to eliminate the interest rate risk associated with offering these products, the Company enters into derivative contracts with third parties to offset the customer contracts. The Company does not enter into derivative financial instruments for trading purposes. Derivative instruments are required to be measured at fair value and recognized as either assets or liabilities in the consolidated financial statements. Fair value represents the payment the Company would receive or pay if the item were sold or bought in a current transaction. The accounting for changes in fair value (gains or losses) of a hedged item is dependent on whether the related derivative is designated and qualifies for “hedge accounting.” The Company assigns derivatives to one of these categories at the purchase date: cash flow hedge, fair value hedge, or non-designated hedges as part of a customer interest-rate swap product. An assessment of the expected and ongoing hedge effectiveness of any derivative designated a fair value hedge or cash flow hedge is performed as required by the applicable accounting standards. Derivatives are included in other assets and other liabilities in the consolidated balance sheets. The fair value amounts recognized for derivative instruments and the fair value amounts recognized for the right to reclaim or obligation to return cash collateral are not offset when represented under a master netting arrangement. Generally, the only derivative instruments used by the Company have been interest rate swaps, collars, forward currency contracts, and interest rate caps. Certain derivative financial instruments are not designated as cash flow or as fair value hedges for accounting purposes. These non-designated derivatives are intended to provide interest rate protection on net interest income or noninterest income but do not meet hedge accounting treatment. Customer accommodation interest rate swap contracts are not designated as hedging instruments. Changes in the fair value of these instruments are recorded in interest income or noninterest income in the consolidated statements of income depending on the underlying hedged item. |
Income Taxes | The Company and its subsidiaries file a consolidated federal income tax return. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The need for deferred tax asset valuation allowances is based on a more-likely-than-not standard. The ability to realize deferred tax assets depends on the ability to generate sufficient positive taxable income within the carryback or carryforward periods provided for in the laws for each applicable taxing jurisdiction. The following possible sources of taxable income are considered: future reversal patterns of existing taxable temporary differences, future taxable income exclusive of reversing temporary differences, taxable income in prior carryback years and the availability of qualified tax planning strategies. The assessment regarding whether a valuation allowance is required or should be adjusted depends on all available positive and negative factors including, but not limited to, nature, frequency, and severity of recent losses, duration of available carryforward periods, experience with tax attributes expiring unused and near and medium term financial outlook. Because of the complexity of tax laws and regulations, interpretation can be difficult and subject to legal judgment given specific facts and circumstances. It is possible that others, given the same information, may at any point in time reach different reasonable conclusions regarding the estimated amounts of accrued taxes. |
Stock-Based Compensation | Stock-based compensation is recognized as an expense for stock options, restricted stock awards, performance stock units, and restricted stock units granted to employees, directors, and advisors in return for service. Equity classified awards are measured at the grant date fair value using either an observable market value or a valuation methodology, and are recognized over the requisite service period on a straight-line basis. Forfeitures are recorded as they occur. A description of the Company’s stock-based employee compensation plan is included in “Note 15 - Shareholders’ Equity and Compensation Plans.” |
Acquisitions and Divestitures | Acquisitions and business combinations are accounted for using the acquisition method of accounting. The assets and liabilities of the acquired entities have been recorded at their estimated fair values at the date of acquisition. Goodwill represents the excess of the purchase price over the fair value of net assets acquired, including the amount assigned to identifiable intangible assets. The purchase price allocation process requires an estimation of the fair values of the assets acquired and the liabilities assumed. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the Company includes an estimate of the acquisition-date fair value as part of the cost of the combination. To determine the fair values, the Company relies on third party valuations, such as appraisals, or internal valuations based on discounted cash flow analyses or other valuation techniques. The results of operations of the acquired business are included in the Company’s consolidated financial statements from the date of acquisition. Merger-related expenses include costs directly related to merger or acquisition activity and include legal and professional fees, system consolidation and conversion costs, and compensation costs such as severance and retention incentives for employees impacted by acquisition activity. The Company accounts for merger-related expenses in the periods in which the costs are incurred and the services are received. For divestitures, the Company measures an asset (disposal group) classified as held-for-sale at the lower of its carrying value at the date the asset is initially classified as held-for-sale or its fair value less costs to sell. The Company reports the results of operations of an entity or group of components that either has been disposed of or held-for-sale as discontinued operations only if the disposal of that component represents a strategic shift that has or will have a major effect on an entity’s operations and financial results. Any incremental direct costs incurred to transact the sale are allocated against the gain or loss on the sale. These costs include items such as legal fees, title transfer fees, broker fees, etc. Any goodwill and intangible assets associated with the portion of the reporting unit to be disposed of is included in the carrying amount of the business in determining the gain or loss on the sale. |
Basic and Diluted Earnings Per Common Share | Basic earnings per common share data is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Common shares outstanding include common stock and restricted stock awards where recipients have satisfied the vesting terms. Diluted earnings per common share gives effect to all potential dilutive common shares outstanding during the period using the treasury stock method. |
Consolidated Statement of Comprehensive Income | The Consolidated Statement of Comprehensive Income includes the amount and the related tax impact that have been reclassified from accumulated other comprehensive income to net income. The classification adjustment for unrealized loss/gain on sale of securities included in net income has been recorded through the gain on sale of investment securities line item, within noninterest income, in the Company’s Consolidated Statements of Income. |
Available-for-sale Securities | The unrealized losses at both December 31, 2022, and 2021, were primarily attributable to changes in market interest rates since the securities were purchased. At both December 31, 2022 and 2021, the Company had not recorded an ACL on available-for-sale securities. Accrued interest receivable on held-to-maturity debt securities totaled $5.8 million and $3.4 million at December 31, 2022 and 2021, respectively, and is excluded from the estimate of expected credit losses. The estimate of expected credit losses considers historical credit loss information adjusted for current conditions and reasonable and supportable forecasts. At December 31, 2022 and 2021, the ACL on held-to-maturity securities was $0.7 million and $0.6 million, respectively. |
Reclassification, Policy [Policy Text Block] | Certain amounts reported in prior periods have been reclassified to conform to the current presentation. The reclassifications had no effect on net income or shareholders’ equity. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Summary of Per Common Share Data and Amounts | The following table presents a summary of earnings per common share data and amounts for the periods indicated. Year ended December 31, ($ in thousands, except per share data) 2022 2021 2020 Net income available to common shareholders $ 199,002 $ 133,055 $ 74,384 Weighted average common shares outstanding 37,381 34,436 26,954 Additional dilutive common stock equivalents 119 60 35 Weighted average diluted common shares outstanding 37,500 34,496 26,989 Basic earnings per common share $ 5.32 $ 3.86 $ 2.76 Diluted earnings per common share $ 5.31 $ 3.86 $ 2.76 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale and Held-to-Maturity Securities Reconciliation | The following table presents the amortized cost, gross unrealized gains and losses and fair value of securities available-for-sale and held-to-maturity: December 31, 2022 ($ in thousands) Amortized Cost Gross Gross Fair Value Available-for-sale securities: Obligations of U.S. Government-sponsored enterprises $ 266,090 $ — $ (28,305) $ 237,785 Obligations of states and political subdivisions 507,842 27 (90,425) 417,444 Agency mortgage-backed securities 727,931 453 (68,980) 659,404 Corporate debt securities 13,750 — (1,110) 12,640 U.S. Treasury Bills 213,441 1 (4,908) 208,534 Total securities available-for-sale $ 1,729,054 $ 481 $ (193,728) $ 1,535,807 Held-to-maturity securities: Obligations of states and political subdivisions $ 529,012 $ 2,321 $ (65,347) $ 465,986 Agency mortgage-backed securities 57,018 — (6,416) 50,602 Corporate debt securities 124,620 163 (12,854) 111,929 Total securities held-to-maturity $ 710,650 $ 2,484 $ (84,617) $ 628,517 Allowance for credit losses (735) Total securities held-to-maturity, net $ 709,915 December 31, 2021 ($ in thousands) Amortized Cost Gross Gross Fair Value Available-for-sale securities: Obligations of U.S. Government-sponsored enterprises $ 175,409 $ 3 $ (1,901) $ 173,511 Obligations of states and political subdivisions 571,587 5,907 (2,410) 575,084 Agency mortgage-backed securities 509,243 8,485 (3,869) 513,859 Corporate debt securities 11,750 632 — 12,382 U.S. Treasury Bills 90,971 220 (21) 91,170 Total securities available-for-sale $ 1,358,960 $ 15,247 $ (8,201) $ 1,366,006 Held-to-maturity securities: Obligations of states and political subdivisions $ 236,379 $ 1,794 $ (730) $ 237,443 Agency mortgage-backed securities 68,105 940 (666) 68,379 Corporate debt securities 125,811 3,039 — 128,850 Total securities held-to-maturity $ 430,295 $ 5,773 $ (1,396) $ 434,672 Allowance for credit losses (614) Total securities held-to-maturity, net $ 429,681 During 2022, the Company transferred $116.7 million of securities from available-for-sale to held-to-maturity. The Company believes the held-to-maturity category is consistent with the Company’s intent for these securities. The transfer of securities was made at fair value at the time of transfer. The unamortized portion of the unrealized holding gain at the time of transfer is retained in accumulated other comprehensive income and in the carrying value of held-to-maturity securities. The balance of held-to-maturity securities in the “Amortized Cost” column in the table above includes a cumulative net unamortized, unrealized gain of $17.6 million and $21.0 million at December 31, 2022 and 2021, respectively. Such amounts are amortized over the remaining life of the securities. At December 31, 2022, and 2021, there were no holdings of securities of any one issuer in an amount greater than 10% of shareholders’ equity, other than the U.S. Government agencies and sponsored enterprises. The agency mortgage-backed securities are all issued by U.S. Government-sponsored enterprises. Securities having a fair value of $734.5 million and $752.7 million at December 31, 2022, and December 31, 2021, respectively, were pledged as collateral to secure deposits of public institutions and for other purposes as required by law or contract provisions. |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of debt securities at December 31, 2022, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The weighted average life of the mortgage-backed securities is approximately 5 years. Available-for-sale Held-to-maturity ($ in thousands) Amortized Cost Estimated Amortized Cost Estimated Due in one year or less $ 104,362 $ 104,000 $ 950 $ 949 Due after one year through five years 345,957 318,556 41,312 38,210 Due after five years through ten years 67,667 60,425 179,013 165,304 Due after ten years 483,137 393,422 432,357 373,452 Agency mortgage-backed securities 727,931 659,404 57,018 50,602 $ 1,729,054 $ 1,535,807 $ 710,650 $ 628,517 |
Schedule of Unrealized Loss on Investments | There were approximately 740 available-for-sale securities and 290 available-for-sale securities in an unrealized loss position as of December 31, 2022 and December 31, 2021, respectively, included in the following tables: December 31, 2022 Less than 12 months 12 months or more Total ($ in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Obligations of U.S. Government-sponsored enterprises $ 73,738 $ 6,249 $ 163,047 $ 22,056 $ 236,785 $ 28,305 Obligations of states and political subdivisions 103,179 13,501 311,634 76,924 414,813 90,425 Agency mortgage-backed securities 334,431 20,038 281,321 48,942 615,752 68,980 Corporate debt securities 12,640 1,110 — — 12,640 1,110 U.S. Treasury Bills 198,688 4,908 — — 198,688 4,908 $ 722,676 $ 45,806 $ 756,002 $ 147,922 $ 1,478,678 $ 193,728 December 31, 2021 Less than 12 months 12 months or more Total ($ in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Obligations of U.S. Government-sponsored enterprises $ 163,634 $ 1,775 $ 4,874 $ 126 $ 168,508 $ 1,901 Obligations of states and political subdivisions 242,188 2,361 1,776 49 243,964 2,410 Agency mortgage-backed securities 259,047 3,685 6,467 184 265,514 3,869 U.S. Treasury Bills 60,961 21 — — 60,961 21 $ 725,830 $ 7,842 $ 13,117 $ 359 $ 738,947 $ 8,201 |
Schedule of Realized Gain (Loss) | The proceeds, gross gains and losses realized from sales of available-for-sale investment securities were as follows: December 31, ($ in thousands) 2022 2021 2020 Gross gains realized $ — $ — $ 421 Proceeds from sales — 27,135 20,221 |
Debt Securities, Available-for-sale | The following table presents the amortized cost, gross unrealized gains and losses and fair value of securities available-for-sale and held-to-maturity: December 31, 2022 ($ in thousands) Amortized Cost Gross Gross Fair Value Available-for-sale securities: Obligations of U.S. Government-sponsored enterprises $ 266,090 $ — $ (28,305) $ 237,785 Obligations of states and political subdivisions 507,842 27 (90,425) 417,444 Agency mortgage-backed securities 727,931 453 (68,980) 659,404 Corporate debt securities 13,750 — (1,110) 12,640 U.S. Treasury Bills 213,441 1 (4,908) 208,534 Total securities available-for-sale $ 1,729,054 $ 481 $ (193,728) $ 1,535,807 Held-to-maturity securities: Obligations of states and political subdivisions $ 529,012 $ 2,321 $ (65,347) $ 465,986 Agency mortgage-backed securities 57,018 — (6,416) 50,602 Corporate debt securities 124,620 163 (12,854) 111,929 Total securities held-to-maturity $ 710,650 $ 2,484 $ (84,617) $ 628,517 Allowance for credit losses (735) Total securities held-to-maturity, net $ 709,915 December 31, 2021 ($ in thousands) Amortized Cost Gross Gross Fair Value Available-for-sale securities: Obligations of U.S. Government-sponsored enterprises $ 175,409 $ 3 $ (1,901) $ 173,511 Obligations of states and political subdivisions 571,587 5,907 (2,410) 575,084 Agency mortgage-backed securities 509,243 8,485 (3,869) 513,859 Corporate debt securities 11,750 632 — 12,382 U.S. Treasury Bills 90,971 220 (21) 91,170 Total securities available-for-sale $ 1,358,960 $ 15,247 $ (8,201) $ 1,366,006 Held-to-maturity securities: Obligations of states and political subdivisions $ 236,379 $ 1,794 $ (730) $ 237,443 Agency mortgage-backed securities 68,105 940 (666) 68,379 Corporate debt securities 125,811 3,039 — 128,850 Total securities held-to-maturity $ 430,295 $ 5,773 $ (1,396) $ 434,672 Allowance for credit losses (614) Total securities held-to-maturity, net $ 429,681 During 2022, the Company transferred $116.7 million of securities from available-for-sale to held-to-maturity. The Company believes the held-to-maturity category is consistent with the Company’s intent for these securities. The transfer of securities was made at fair value at the time of transfer. The unamortized portion of the unrealized holding gain at the time of transfer is retained in accumulated other comprehensive income and in the carrying value of held-to-maturity securities. The balance of held-to-maturity securities in the “Amortized Cost” column in the table above includes a cumulative net unamortized, unrealized gain of $17.6 million and $21.0 million at December 31, 2022 and 2021, respectively. Such amounts are amortized over the remaining life of the securities. At December 31, 2022, and 2021, there were no holdings of securities of any one issuer in an amount greater than 10% of shareholders’ equity, other than the U.S. Government agencies and sponsored enterprises. The agency mortgage-backed securities are all issued by U.S. Government-sponsored enterprises. Securities having a fair value of $734.5 million and $752.7 million at December 31, 2022, and December 31, 2021, respectively, were pledged as collateral to secure deposits of public institutions and for other purposes as required by law or contract provisions. |
Portfolio Loans (Tables)
Portfolio Loans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Non-covered Loans [Line Items] | |
Schedule of Collateral Dependent Loans | The amortized cost basis of collateral-dependent nonperforming loans by class of loan is presented for the periods indicated: December 31, 2022 Type of Collateral (in thousands) Commercial Real Estate Residential Real Estate Blanket Lien Commercial and industrial $ — $ — $ 1,047 Real estate: Commercial - investor owned 2,238 785 — Commercial - owner occupied 1,177 — — Construction and land development — 1,192 — Residential — 73 — Total $ 3,415 $ 2,050 $ 1,047 December 31, 2021 Type of Collateral (in thousands) Commercial Real Estate Residential Real Estate Blanket Lien Commercial and industrial $ 4,271 $ 209 $ 9,312 Real estate: Commercial - investor owned 169 1,200 — Commercial - owner occupied 2,807 32 — Residential — 2,048 — Other — — — Total $ 7,247 $ 3,489 $ 9,312 |
Acquired PCD Loans | |
Non-Covered Loans | |
Non-covered Loans [Line Items] | |
Summary of Portfolio Loans by Category | Below is a summary of loans by category: ($ in thousands) December 31, 2022 December 31, 2021 Commercial and industrial $ 3,859,964 $ 3,396,590 Real estate loans: Commercial - investor owned 2,357,820 2,141,143 Commercial - owner occupied 2,270,551 2,035,785 Construction and land development 611,565 734,073 Residential 395,537 454,052 Total real estate loans 5,635,473 5,365,053 Other 248,990 265,137 Loans, before unearned loan fees 9,744,427 9,026,780 Unearned loan fees, net (7,289) (9,138) Loans, including unearned loan fees $ 9,737,138 $ 9,017,642 |
Summary of Allowance for Loan Losses and the Recorded Investment in Portfolio Loans by Class and Category Based on Impairment Method | A summary of the activity, by loan category, in the allowance for credit losses on loans for 2020, 2021, and 2022 is as follows: ($ in thousands) Commercial and industrial CRE - investor owned CRE - owner occupied Construction and land development Residential real estate Other Total Balance at December 31, 2020 Allowance for loan losses: Balance, beginning of year $ 33,949 $ 16,656 $ 7,414 $ 7,577 $ 3,349 $ 1,050 $ 69,995 Provision for loan losses 28,373 11,037 7,845 13,438 674 2,012 63,379 Initial allowance on acquired PCD loans 23 2,026 1,427 45 3 — 3,524 Charge-offs (5,381) (498) (30) (31) (408) (391) (6,739) Recoveries 1,848 2,841 356 384 967 116 6,512 Balance, end of year $ 58,812 $ 32,062 $ 17,012 $ 21,413 $ 4,585 $ 2,787 $ 136,671 Balance at December 31, 2021 Allowance for loan losses: Balance, beginning of year $ 58,812 $ 32,062 $ 17,012 $ 21,413 $ 4,585 $ 2,787 $ 136,671 Provision (benefit) for loan losses 14,361 568 (550) (7,365) 3,900 2,079 12,993 Initial allowance on acquired PCD loans 1,077 3,651 1,504 37 — 737 7,006 Charge-offs (12,113) (2,487) (602) (3) (1,521) (459) (17,185) Recoveries 1,688 2,083 196 454 963 172 5,556 Balance, end of year $ 63,825 $ 35,877 $ 17,560 $ 14,536 $ 7,927 $ 5,316 $ 145,041 Balance at December 31, 2022 Allowance for credit losses: Balance, beginning of year $ 63,825 $ 35,877 $ 17,560 $ 14,536 $ 7,927 $ 5,316 $ 145,041 Provision (benefit) for loan losses (6,121) 46 4,867 (3,145) 540 (397) (4,210) Charge-offs (6,082) (478) (395) — (2,068) (370) (9,393) Recoveries 2,213 746 720 53 1,529 233 5,494 Balance, end of year $ 53,835 $ 36,191 $ 22,752 $ 11,444 $ 7,928 $ 4,782 $ 136,932 |
Schedule of Recorded Investment in Impaired Portfolio Loans by Category | The recorded investment in nonperforming loans by category at December 31, 2022 and 2021 is as follows: December 31, 2022 ($ in thousands) Non-accrual Restructured, accruing Loans over 90 days past due and still accruing interest Total nonperforming loans Nonaccrual loans with no allowance Commercial and industrial $ 4,373 $ — $ 70 $ 4,443 $ 1,047 Real estate: Commercial - investor owned 3,023 — — 3,023 — Commercial - owner occupied 1,177 — — 1,177 — Construction and land development 1,192 — — 1,192 1,192 Residential — 73 — 73 — Other 1 — 72 73 — Total $ 9,766 $ 73 $ 142 $ 9,981 $ 2,239 December 31, 2021 ($ in thousands) Non-accrual Restructured, accruing Loans over 90 days past due and still accruing interest Total nonperforming loans Nonaccrual loans with no allowance Commercial and industrial $ 17,052 $ 2,783 $ 1,703 $ 21,538 $ 5,685 Real estate: Commercial - investor owned 1,575 — — 1,575 168 Commercial - owner occupied 2,839 — — 2,839 2,550 Residential 1,971 76 1 2,048 1,348 Other 12 — 12 24 — Total $ 23,449 $ 2,859 $ 1,716 $ 28,024 $ 9,751 |
Summary of Recorded Investment by for Portfolio Loans Restructured | The recorded investment by category for loans restructured during the year ended December 31, 2021 is as follows: Year ended December 31, 2021 ($ in thousands, except for number of loans) Number of Loans Pre-Modification Outstanding Post-Modification Outstanding Real Estate: Residential 1 221 221 |
Summary of Recorded Investment by Category for Portfolio Loans Restructured and Subsequently Defaulted | Loans restructured that subsequently defaulted during the year ended December 31, 2021 are as follows: Year ended December 31, 2021 ($ in thousands, except for number of loans) Number of Loans Recorded Balance Real Estate: Residential 1 $ 148 |
Summary of Aging of Recorded Investment in Past Due Portfolio Loans by Portfolio Class and Category | The aging of the recorded investment in past due loans by class and category is shown below: December 31, 2022 ($ in thousands) 30-89 Days 90 or More Total Current Total Commercial and industrial $ 555 $ 2,373 $ 2,928 $ 3,857,036 $ 3,859,964 Real estate: Commercial - investor owned — 1,135 1,135 2,356,685 2,357,820 Commercial - owner occupied 8,628 164 8,792 2,261,759 2,270,551 Construction and land development 9 1,192 1,201 610,364 611,565 Residential 1,227 — 1,227 394,310 395,537 Other 18 72 90 248,900 248,990 Loans, before unearned loan fees 10,437 4,936 15,373 9,729,054 9,744,427 Unearned loan fees, net — — — (7,289) (7,289) Total $ 10,437 $ 4,936 $ 15,373 $ 9,721,765 $ 9,737,138 December 31, 2021 ($ in thousands) 30-89 Days 90 or More Total Current Total Commercial and industrial $ 24,447 $ 14,158 $ 38,605 $ 3,357,985 $ 3,396,590 Real estate: Commercial - investor owned 3,880 — 3,880 2,137,263 2,141,143 Commercial - owner occupied 10,070 289 10,359 2,025,426 2,035,785 Construction and land development 24 — 24 734,049 734,073 Residential 3,181 1,305 4,486 449,566 454,052 Other 37 11 48 265,089 265,137 Loans, before unearned loan fees 41,639 15,763 57,402 8,969,378 9,026,780 Unearned loan fees, net — — — (9,138) (9,138) Total $ 41,639 $ 15,763 $ 57,402 $ 8,960,240 $ 9,017,642 |
Summary of Recorded Investment by Risk Category of Portfolio Loans by Portfolio Class and Category | The recorded investment by risk category of the loans by class and year of origination is presented in the following tables as of the dates indicated: December 31, 2022 Term Loans by Origination Year (in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Converted to Term Loans Revolving Loans Total Commercial and industrial Pass (1-6) $ 1,403,381 $ 635,275 $ 332,740 $ 172,127 $ 62,729 $ 66,152 $ 8,388 $ 964,592 $ 3,645,384 Special Mention (7) 37,048 10,836 13,858 423 7,995 4,102 — 72,944 147,206 Classified (8-9) 16,176 4,457 1,627 24 166 183 — 21,349 43,982 Total Commercial and industrial $ 1,456,605 $ 650,568 $ 348,225 $ 172,574 $ 70,890 $ 70,437 $ 8,388 $ 1,058,885 $ 3,836,572 Commercial real estate-investor owned Pass (1-6) $ 667,107 $ 584,644 $ 392,402 $ 240,033 $ 115,530 $ 202,661 $ 1,457 $ 53,051 $ 2,256,885 Special Mention (7) 18,844 5,751 23,502 11,605 — 13,063 — — 72,765 Classified (8-9) 1,823 — 465 953 193 6,092 49 — 9,575 Total Commercial real estate-investor owned $ 687,774 $ 590,395 $ 416,369 $ 252,591 $ 115,723 $ 221,816 $ 1,506 $ 53,051 $ 2,339,225 Commercial real estate-owner occupied Pass (1-6) $ 539,610 $ 555,690 $ 362,150 $ 232,335 $ 123,095 $ 270,613 $ — $ 57,308 $ 2,140,801 Special Mention (7) 11,164 3,801 16,856 4,455 13,043 9,009 — 800 59,128 Classified (8-9) — 1,572 3,483 8,910 15,873 11,387 — — 41,225 Total Commercial real estate-owner occupied $ 550,774 $ 561,063 $ 382,489 $ 245,700 $ 152,011 $ 291,009 $ — $ 58,108 $ 2,241,154 Construction real estate Pass (1-6) $ 290,146 $ 232,998 $ 53,129 $ 2,909 $ 2,061 $ 8,480 $ — $ 1,769 $ 591,492 Special Mention (7) 17,331 — 681 146 111 106 — — 18,375 Classified (8-9) 1,192 — — 14 471 21 — — 1,698 Total Construction real estate $ 308,669 $ 232,998 $ 53,810 $ 3,069 $ 2,643 $ 8,607 $ — $ 1,769 $ 611,565 Residential real estate Pass (1-6) $ 63,317 $ 60,910 $ 48,796 $ 20,943 $ 11,259 $ 88,795 $ 579 $ 96,304 $ 390,903 Special Mention (7) 331 — — 79 352 781 — — 1,543 Classified (8-9) 121 73 — 53 1,102 994 — 5 2,348 Total residential real estate $ 63,769 $ 60,983 $ 48,796 $ 21,075 $ 12,713 $ 90,570 $ 579 $ 96,309 $ 394,794 Other Pass (1-6) $ 38,753 $ 88,613 $ 56,252 $ 10,556 $ 20,508 $ 10,796 $ — $ 9,536 $ 235,014 Special Mention (7) — — — — — — — — — Classified (8-9) — — — 4 3 11 3 4 25 Total Other $ 38,753 $ 88,613 $ 56,252 $ 10,560 $ 20,511 $ 10,807 $ 3 $ 9,540 $ 235,039 Total loans classified by risk category $ 3,106,344 $ 2,184,620 $ 1,305,941 $ 705,569 $ 374,491 $ 693,246 $ 10,476 $ 1,277,662 $ 9,658,349 Total loans classified by performing status 78,789 Total loans $ 9,737,138 December 31, 2021 Term Loans by Origination Year (in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Converted to Term Loans Revolving Loans Total Commercial and industrial Pass (1-6) $ 1,180,601 $ 477,374 $ 317,869 $ 132,851 $ 116,738 $ 82,846 $ 11,648 $ 854,102 $ 3,174,029 Special Mention (7) 35,005 17,502 9,404 9,880 12,217 10,979 4,037 53,595 152,619 Classified (8-9) 14,917 3,530 3,840 1,689 2,988 813 787 10,996 39,560 Total Commercial and industrial $ 1,230,523 $ 498,406 $ 331,113 $ 144,420 $ 131,943 $ 94,638 $ 16,472 $ 918,693 $ 3,366,208 Commercial real estate-investor owned Pass (1-6) $ 651,740 $ 476,946 $ 346,245 $ 146,107 $ 112,043 $ 217,808 $ 3,625 $ 68,236 $ 2,022,750 Special Mention (7) 16,871 35,908 32,755 1,003 502 17,478 300 2,062 106,879 Classified (8-9) 1,376 3,135 835 817 1,159 4,141 — 50 11,513 Total Commercial real estate-investor owned $ 669,987 $ 515,989 $ 379,835 $ 147,927 $ 113,704 $ 239,427 $ 3,925 $ 70,348 $ 2,141,142 Commercial real estate-owner occupied Pass (1-6) $ 604,975 $ 423,263 $ 278,830 $ 164,210 $ 140,515 $ 235,973 $ 250 $ 48,349 $ 1,896,365 Special Mention (7) 12,825 13,585 4,301 16,774 10,274 15,764 — 300 73,823 Classified (8-9) 2,048 556 9,181 17,016 6,432 6,959 — — 42,192 Total Commercial real estate-owner occupied $ 619,848 $ 437,404 $ 292,312 $ 198,000 $ 157,221 $ 258,696 $ 250 $ 48,649 $ 2,012,380 Construction real estate Pass (1-6) $ 310,140 $ 229,396 $ 70,531 $ 35,936 $ 14,860 $ 7,180 $ 568 $ 2,992 $ 671,603 Special Mention (7) 28,947 15,348 60 1,199 11,068 2,330 — — 58,952 Classified (8-9) — — 387 419 — 22 — — 828 Total Construction real estate $ 339,087 $ 244,744 $ 70,978 $ 37,554 $ 25,928 $ 9,532 $ 568 $ 2,992 $ 731,383 Residential real estate Pass (1-6) $ 116,352 $ 66,481 $ 21,356 $ 14,841 $ 24,778 $ 103,840 $ 9,980 $ 87,146 $ 444,774 Special Mention (7) 2,425 2 622 1,157 248 1,305 — 79 5,838 Classified (8-9) 414 169 554 — 12 2,024 — — 3,173 Total residential real estate $ 119,191 $ 66,652 $ 22,532 $ 15,998 $ 25,038 $ 107,169 $ 9,980 $ 87,225 $ 453,785 Other Pass (1-6) $ 108,209 $ 68,806 $ 22,684 $ 23,145 $ 6,924 $ 13,832 $ 1,500 $ 9,166 $ 254,266 Special Mention (7) — — — 4 — 2,440 — 1 2,445 Classified (8-9) — — 10 10 — 16 — 2 38 Total Other $ 108,209 $ 68,806 $ 22,694 $ 23,159 $ 6,924 $ 16,288 $ 1,500 $ 9,169 $ 256,749 Total loans classified by risk category $ 3,086,845 $ 1,832,001 $ 1,119,464 $ 567,058 $ 460,758 $ 725,750 $ 32,695 $ 1,137,076 $ 8,961,647 Total loans classified by performing status 55,995 Total loans $ 9,017,642 In the tables above, loan originations in 2022 and 2021 with a classification of “special mention” or “classified” primarily represent renewals or modifications initially underwritten and originated in prior years. For certain loans the Company evaluates credit quality based on the aging status. December 31, 2022 (in thousands) Performing Non Performing Total Commercial and industrial $ 23,240 $ 70 $ 23,310 Real estate: Commercial - investor owned 18,595 — 18,595 Commercial - owner occupied 29,397 — 29,397 Construction and land development — — — Residential 743 — 743 Other 6,672 72 6,744 Total $ 78,647 $ 142 $ 78,789 December 31, 2021 (in thousands) Performing Non Performing Total Commercial and industrial $ 26,166 $ 1 $ 26,167 Real estate: Commercial - investor owned 1 — 1 Commercial - owner occupied 23,405 — 23,405 Construction and land development 2,690 — 2,690 Residential 267 — 267 Other 3,453 12 3,465 Total $ 55,982 $ 13 $ 55,995 |
Leases Lease Cost (Tables)
Leases Lease Cost (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Assets And Liabilities, Lessee [Table Text Block] | Supplemental balance sheet information related to leases is as follows: ($ in thousands) December 31, 2022 December 31, 2021 Operating lease right-of-use assets, included in other assets $ 17,355 $ 13,483 Operating lease liabilities, included in other liabilities 18,038 14,865 Operating leases Weighted average remaining lease term 5 years 4 years Weighted average discount rate 2.5 % 2.0 % |
Lease, Cost [Table Text Block] | For the year ended December 31, ($ in thousands) 2022 2021 Operating lease cost $ 5,868 $ 4,877 Short-term lease cost 814 833 Total lease cost $ 6,682 $ 5,710 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturities of operating lease liabilities are as follows: ($ in thousands) Year Amount 2023 $ 5,352 2024 4,402 2025 3,096 2026 3,148 2027 1,891 Thereafter 1,182 Total operating lease liabilities, payments 19,071 Less: present value adjustment 1,033 Operating lease liabilities $ 18,038 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | Select terms of the hedges are as follows: $ in thousands Notional Fixed Rate Maturity Date $15,465 2.60% March 15, 2024 $14,433 2.60% March 30, 2024 $18,558 2.64% March 15, 2026 $13,506 2.64% March 17, 2026 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheet. Notional Amount Derivative Assets Derivative Liabilities ($ in thousands) December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Derivatives designated as hedging instruments Interest rate swaps $ 161,962 $ 61,962 $ 2,348 $ — $ 921 $ 2,911 Interest rate collar 100,000 — — — 48 — Total $ 2,348 $ — $ 969 $ 2,911 Derivatives not designated as hedging instruments Interest rate swaps $ 687,902 $ 918,698 $ 20,610 $ 12,869 $ 20,612 $ 12,883 The tables below present a gross presentation, the effects of offsetting, and a net presentation of the Company’s financial instruments subject to offsetting. The gross amounts of assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that financial assets and liabilities are presented on the Balance Sheet. As of December 31, 2022 Gross Amounts Not Offset in the Statement of Financial Position ($ in thousands) Gross Amounts Recognized Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets presented in the Statement of Financial Position Financial Instruments Fair Value Collateral Posted Net Amount Assets: Interest rate swaps $ 22,958 $ — $ 22,958 $ — $ 9,010 $ 13,948 Liabilities: Interest rate swaps $ 21,533 $ — $ 21,533 $ — $ — $ 21,533 Interest rate collar 48 — 48 — — 48 Securities sold under agreements to repurchase 270,773 — 270,773 — 270,773 — As of December 31, 2021 Gross Amounts Not Offset in the Statement of Financial Position ($ in thousands) Gross Amounts Recognized Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets presented in the Statement of Financial Position Financial Instruments Fair Value Collateral Posted Net Amount Assets: Interest rate swaps $ 12,869 $ — $ 12,869 $ 1,033 $ — $ 11,836 Liabilities: Interest rate swaps $ 15,794 $ — $ 15,794 $ 1,033 $ 14,031 $ 730 Securities sold under agreements to repurchase 331,006 — 331,006 — 331,006 — |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of Fixed Assets | A summary of fixed assets is as follows: December 31, ($ in thousands) 2022 2021 Land $ 12,362 $ 12,849 Buildings and leasehold improvements 50,243 52,012 Furniture, fixtures and equipment 19,569 18,821 82,174 83,682 Less accumulated depreciation and amortization 39,189 35,767 Total fixed assets $ 42,985 $ 47,915 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | The table below presents a summary of intangible assets: ($ in thousands) Years ended December 31, 2022 2021 Core deposit intangible, net, beginning of year $ 22,286 $ 23,084 Additions from acquisition — 4,892 Amortization (5,367) (5,690) Core deposit intangible, net, end of year $ 16,919 $ 22,286 |
Expected Amortization Schedule for the Core Deposit Intangible | The following table reflects the amortization schedule for the core deposit intangible at December 31, 2022. Year Core Deposit Intangible ($ in thousands) 2023 $ 4,601 2024 3,834 2025 3,068 2026 2,301 2027 1,535 After 2027 1,580 $ 16,919 |
Schedule of Goodwill | The table below presents a summary of goodwill: ($ in thousands) Years ended December 31, 2022 2021 Goodwill, beginning of year $ 365,164 $ 260,567 Additions from acquisition — 104,597 Goodwill, end of year $ 365,164 $ 365,164 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Maturities of Time Deposits [Abstract] | |
Summary of Certificates of Deposit Maturities | Following is a summary of certificates of deposit maturities at December 31, 2022: ($ in thousands) Brokered Customer Total Less than 1 year $ 61,173 $ 316,364 $ 377,537 Greater than 1 year and less than 2 years 37,869 72,172 110,041 Greater than 2 years and less than 3 years 19,926 9,408 29,334 Greater than 3 years and less than 4 years — 7,275 7,275 Greater than 4 years and less than 5 years — 2,037 2,037 Greater than 5 years — 4,484 4,484 $ 118,968 $ 411,740 $ 530,708 |
Subordinated Debentures (Tables
Subordinated Debentures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Subordinated Borrowings [Abstract] | |
Schedule of Subordinated Debentures | The following table summarizes the Company’s subordinated debentures at December 31: Amount Maturity Date Initial Call Date (1) Interest Rate ($ in thousands) 2022 2021 EFSC Clayco Statutory Trust I $ 3,196 $ 3,196 December 17, 2033 December 17, 2008 Floats 3MO LIBOR + 2.85% EFSC Capital Trust II 5,155 5,155 June 17, 2034 June 17, 2009 Floats 3MO LIBOR + 2.65% EFSC Statutory Trust III 11,341 11,341 December 15, 2034 December 15, 2009 Floats 3MO LIBOR + 1.97% EFSC Clayco Statutory Trust II 4,124 4,124 September 15, 2035 September 15, 2010 Floats 3MO LIBOR + 1.83% EFSC Statutory Trust IV 10,310 10,310 December 15, 2035 December 15, 2010 Floats 3MO LIBOR + 1.44% EFSC Statutory Trust V 4,124 4,124 September 15, 2036 September 15, 2011 Floats 3MO LIBOR + 1.60% EFSC Capital Trust VI 14,433 14,433 March 30, 2037 March 30, 2012 Floats 3MO LIBOR + 1.60% EFSC Capital Trust VII 4,124 4,124 December 15, 2037 December 15, 2012 Floats 3MO LIBOR + 2.25% JEFFCO Stat Trust I 7,732 7,732 February 22, 2031 February 22, 2011 Fixed 10.20% JEFFCO Stat Trust II (2) 4,550 4,496 March 17, 2034 March 17, 2009 Floats 3MO LIBOR + 2.75% Trinity Capital Trust III (2) 5,406 5,339 September 8, 2034 September 8, 2009 Floats 3MO LIBOR + 2.70% Trinity Capital Trust IV 10,310 10,310 November 23, 2035 August 23, 2010 Fixed 6.88% Trinity Capital Trust V (2) 8,032 7,869 December 15, 2036 September 15, 2011 Floats 3MO LIBOR + 1.65% Total junior subordinated debentures 92,837 92,553 5.75% Fixed-to-floating rate subordinated notes 63,250 63,250 June 1, 2030 June 1, 2025 Fixed 5.75% until June 1, 2025, then floats Benchmark rate (3 month term SOFR) + 5.66% Debt issuance costs (654) (904) Total fixed-to-floating rate subordinated notes 62,596 62,346 Total subordinated debentures and notes $ 155,433 $ 154,899 (1) Callable each quarter after initial call date. (2) Purchase accounting adjustments are reflected in the balance and also impact the effective interest rate. |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Federal Home Loan Bank, Advances [Table Text Block] | The following table summarizes the Company’s FHLB advances at December 31: 2022 2021 ($ in thousands) Outstanding Balance Weighted Rate Outstanding Balance Weighted Rate Non-amortizing fixed advance $ 100,000 4.57 % $ 50,000 1.56 % |
Other Borrowings and Notes Pa_2
Other Borrowings and Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Instrument [Line Items] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Term Loan In February 2019, the Company entered into a five year, $40.0 million unsecured term loan agreement (the “Term Loan”) with another bank with the proceeds primarily used to fund the company’s cash portion of an acquisition in 2019. The interest rate was one-month LIBOR plus 125 basis points until February 2022. In February 2022, the interest rate on the Term Loan was amended to one-month Term SOFR plus 136 basis points. A summary of the Term Loan is as follows: December 31, ($ in thousands) 2022 2021 Term Loan $ 17,143 $ 22,857 Average balance during the year 20,681 26,427 Maximum balance outstanding at any month-end 22,857 28,571 Weighted average interest rate during the year 2.94 % 1.40 % Average interest rate at December 31 5.48 % 1.38 % |
Schedule of Line of Credit Facilities [Table Text Block] | Revolving Credit Line In February 2016, the Company entered into a senior unsecured revolving credit agreement (the “Revolving Agreement”) with another bank. The Revolving Agreement has a one-year term, maturing on February 22, 2023, allows for borrowings up to $25 million, and had an interest rate of one-month LIBOR plus 125 basis points until February 2022. In February 2022, the Revolving Agreement was renewed for a one-year term and the interest rate was amended to one-month Term SOFR plus 136 basis points. The proceeds can be used for general corporate purposes. The Revolving Agreement is subject to ongoing compliance with a number of customary affirmative and negative covenants as well as specified financial covenants. The revolving credit line was not accessed in 2022 or 2021. |
Other Borrowings | |
Debt Instrument [Line Items] | |
Summary of Other Borrowings | A summary of securities sold under agreements to repurchase is as follows: December 31, ($ in thousands) 2022 2021 Securities sold under agreement to repurchase $ 270,773 $ 331,006 Average balance during the year 211,039 225,895 Maximum balance outstanding at any month-end 284,269 331,006 Average interest rate during the year 0.24 % 0.10 % Average interest rate at December 31 1.44 % 0.06 % |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Regulated Operations [Abstract] | |
Schedule of Actual Capital Amounts and Ratios | The capital ratios are presented in the following table: December 31, 2022 December 31, 2021 EFSC Bank EFSC Bank To Be Well-Capitalized Minimum Ratio Common Equity Tier 1 Capital to Risk Weighted Assets 11.1 % 12.1 % 11.3 % 12.5 % 6.5 % 7.0 % Tier 1 Capital to Risk Weighted Assets 12.6 % 12.1 % 13.0 % 12.5 % 8.0 % 8.5 % Total Capital to Risk Weighted Assets 14.2 % 13.1 % 14.7 % 13.5 % 10.0 % 10.5 % Leverage Ratio (Tier 1 Capital to Average Assets) 10.9 % 10.5 % 9.7 % 9.3 % 5.0 % 4.0 % |
Compensation Plans (Tables)
Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Payment Arrangement, Cost by Plan [Table Text Block] | The following table summarizes share-based compensation expense: ($ in thousands) 2022 2021 2020 Performance stock units $ 2,391 $ 1,777 $ 1,097 Restricted stock units 4,156 3,109 2,613 Stock options 916 396 — Employee stock purchase plan 543 735 468 Total share-based compensation expense $ 8,006 $ 6,017 $ 4,178 |
Outstanding Long Term Incentive Awards [Table Text Block] | Information related to the outstanding grants at December 31, 2022 is shown below: ($ in thousands) 2020 - 2022 Cycle 2021 - 2023 Cycle 2022 - 2024 Cycle Shares issuable at target 24,674 38,412 41,765 Maximum shares issuable 49,348 76,824 83,530 Unrecognized compensation cost $ 42 $ 981 $ 2,301 Weighted average grant date fair value $ 38.09 $ 47.16 $ 51.91 |
Schedule of Various Information | At December 31, 2022 and 2021, the Company has reserved the following shares of its authorized but unissued common stock for possible future issuance in connection with the following: December 31, 2022 December 31, 2021 Outstanding performance units (maximum issuance) 209,702 169,244 Outstanding RSU’s 269,868 181,657 Outstanding options 222,032 112,927 2018 Stock Incentive Plan 342,157 670,326 Non-Management Director Plan 55,878 73,618 2018 Employee Stock Purchase Plan 515,941 571,064 Total 1,615,578 1,778,836 |
Summary of Employee Stock Option and SSARs Activity | Following is a summary of stock option activity for 2022. ($ in thousands, except per share data) Shares Weighted Weighted Outstanding at December 31, 2021 112,927 $ 43.80 Granted 120,707 48.24 Exercised (1,445) 43.81 Forfeited (10,157) 45.81 Outstanding at December 31, 2022 222,032 $ 46.12 8.7 years Exercisable at December 31, 2022 18,196 $ 43.80 8.2 years |
Summary of Restricted Stock Units Activity | A summary of the status of the Company’s RSU awards as of December 31, 2022 and changes during the year then ended is presented below. Shares Weighted Average Outstanding at December 31, 2021 181,657 $ 42.71 Granted 180,400 47.96 Vested (79,617) 43.02 Forfeited (12,572) 34.99 Outstanding at December 31, 2022 269,868 $ 46.49 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table presents the changes in accumulated other comprehensive income (loss) after-tax by component: ($ in thousands) Net Unrealized Gain (Loss) on Available-for-Sale Debt Securities Unamortized Gain (Loss) on Held-to-Maturity Securities Net Unrealized Gain (Loss) on Cash Flow Hedges Total Balance, December 31, 2019 $ 14,977 $ 4,934 $ (2,162) $ 17,749 Net change 23,627 (1,910) (2,346) 19,371 Transfer from available-for-sale to held-to-maturity (16,284) 16,284 — — Balance, December 31, 2020 $ 22,320 $ 19,308 $ (4,508) $ 37,120 Net change (17,049) (3,624) 2,330 (18,343) Balance, December 31, 2021 $ 5,271 $ 15,684 $ (2,178) $ 18,777 Net change (149,623) (2,696) 3,210 (149,109) Transfer from available-for-sale to held-to-maturity (197) $ 197 $ — $ — Balance, December 31, 2022 $ (144,549) $ 13,185 $ 1,032 $ (130,332) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | The following table presents the pre-tax and after-tax changes in the components of other comprehensive income: 2022 2021 2020 ($ in thousands) Pre-tax Tax effect After-tax Pre-tax Tax effect After-tax Pre-tax Tax effect After-tax Change in unrealized gain (loss) on available-for-sale securities $ (200,030) $ (50,407) $ (149,623) $ (22,701) $ (5,652) $ (17,049) $ 31,798 $ 7,854 $ 23,944 Reclassification of gain on sale of available-for-sale securities(a) — — — — — — (421) (104) (317) Reclassification of gain on held-to-maturity securities(b) (3,605) (909) (2,696) (4,672) (1,048) (3,624) (2,537) (627) (1,910) Change in unrealized gain (loss) on cash flow hedges 3,741 943 2,798 1,533 372 1,161 (7,898) (1,951) (5,947) Reclassification of loss on cash flow hedges(b) 551 139 412 1,543 374 1,169 4,782 1,181 3,601 Total other comprehensive income (loss) $ (199,343) $ (50,234) $ (149,109) $ (24,297) $ (5,954) $ (18,343) $ 25,724 $ 6,353 $ 19,371 (a) The pre-tax amount is reported in noninterest income/expense in the Consolidated Statements of Income. (b) The pre-tax amount is reported in interest income/expense in the Consolidated Statements of Income, except for a $3.2 million termination fee in 2020 recognized in noninterest expense. |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following weighted average assumptions were used for grants issued during the year ended December 31, 2022. Weighted Average Risk Free Interest Rate 1.95% Expected Dividend Yield 1.74% Expected Volatility 34.54% Expected Term (years) 6.2 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Various Information | Various information related to the RSUs is shown below. ($ in thousands) 2022 2021 2020 Total fair value at vesting date $ 3,888 $ 2,855 $ 1,702 Unrecognized compensation cost 8,507 4,622 3,899 Expected years to recognize unearned compensation 2.0 years 1.9 years 1.9 years Weighted average grant date fair value $ 47.96 $ 44.01 $ 39.63 |
Stock Plan for Non-Management Directors | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Various Information | Various information related to the Director Plan is shown below. 2022 2021 2020 Shares granted 23,343 12,998 15,901 Weighted average grant date fair value $ 42.17 $ 46.05 $ 30.28 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) for the years ended December 31, are as follows: Year ended December 31, ($ in thousands) 2022 2021 2020 Current: Federal $ 42,718 $ 29,835 $ 25,132 State and local 11,505 5,198 5,009 Total current 54,223 35,033 30,141 Deferred: Federal 1,853 870 (10,651) State and local 341 (325) (1,927) Total deferred 2,194 545 (12,578) Total income tax expense $ 56,417 $ 35,578 $ 17,563 |
Schedule of Income Tax Rate Reconciliation | A reconciliation of expected income tax expense, computed by applying the statutory federal income tax rate to income before income taxes reflected in the Consolidated Statements of Income is as follows: Year ended December 31, ($ in thousands) 2022 2021 2020 Income tax expense at statutory rate $ 54,487 $ 35,413 $ 19,309 Increase (reduction) in income tax resulting from: Tax-exempt interest income, net (4,351) (3,198) (2,010) State and local income taxes, net 9,767 4,936 3,254 Bank-owned life insurance (545) (713) (778) Non-deductible expenses 926 1,090 637 Tax benefit of low-income housing tax credit ("LIHTC") investments, net (195) (132) (444) Excess tax benefits (68) 146 (175) Federal tax credits (3,661) (1,136) (1,327) Non-taxable donation to charitable foundation — (263) — Other, net 57 (565) (903) Total income tax expense $ 56,417 $ 35,578 $ 17,563 |
Schedule of Deferred Tax Assets and Deferred Tax Liabilities | The tax effect of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities is as follows: Year ended December 31, ($ in thousands) 2022 2021 Deferred tax assets: Allowance for loan losses $ 34,507 $ 36,550 Loans held-for-sale 5,917 6,971 Other real estate 179 305 Deferred compensation 3,527 2,704 Accrued compensation 6,294 5,881 Unrealized losses on securities, net 44,094 — Net operating losses and tax credits 5,829 6,061 Lease liability accrual 4,545 3,747 Other investments 4,293 3,169 Other deferred tax assets 6,463 5,594 Total deferred tax assets 115,648 70,982 Deferred tax liabilities: Acquired loans 2,212 1,709 Unrealized gains on securities, net — 6,171 Intangible assets 8,676 8,789 Right of use asset 4,374 3,670 Other investments 7,530 5,646 Other deferred tax liabilities 1,065 1,277 Total deferred tax liabilities 23,857 27,262 Net deferred tax asset before valuation allowance 91,791 43,720 Less: valuation allowance 2,830 2,830 Net deferred tax asset $ 88,961 $ 40,890 |
Schedule of Unrecognized Tax Benefits | The activity in the gross liability for unrecognized tax benefits was as follows: ($ in thousands) 2022 2021 2020 Balance at beginning of year $ 2,697 $ 3,157 $ 1,497 Additions based on tax positions related to the current year 683 563 395 Additions for tax positions of prior years 47 436 1,556 Settlements for tax positions of prior years (82) (1,289) — Settlements or lapse of statute of limitations (621) (170) (291) Balance at end of year $ 2,724 $ 2,697 $ 3,157 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments | The contractual amounts of off-balance-sheet financial instruments as of December 31, 2022, and December 31, 2021, are as follows: (in thousands) December 31, 2022 December 31, 2021 Commitments to extend credit $ 3,113,966 $ 2,481,173 Letters of credit 68,544 77,314 Tax credits 4,075 18,118 Limited partnership commitments 35,090 21,553 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Instruments Measured at Fair Value on a Recurring Basis | The following table summarizes financial instruments measured at fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value. December 31, 2022 ($ in thousands) Quoted Prices in Significant Significant Total Fair Assets Securities available-for-sale Obligations of U.S. Government-sponsored enterprises $ — $ 237,785 $ — $ 237,785 Obligations of states and political subdivisions — 417,444 — 417,444 Residential mortgage-backed securities — 659,404 — 659,404 Corporate debt securities — 12,640 — 12,640 U.S. Treasury Bills — 208,534 — 208,534 Total securities available-for-sale — 1,535,807 — 1,535,807 Other investments — 2,667 — 2,667 Derivative financial instruments — 22,958 — 22,958 Total assets $ — $ 1,561,432 $ — $ 1,561,432 Liabilities Derivative financial instruments $ — $ 21,581 $ — $ 21,581 Total liabilities $ — $ 21,581 $ — $ 21,581 December 31, 2021 ($ in thousands) Quoted Prices in Significant Significant Total Fair Assets Securities available-for-sale Obligations of U.S. Government-sponsored enterprises $ — $ 173,511 $ — $ 173,511 Obligations of states and political subdivisions — 575,084 — 575,084 Residential mortgage-backed securities — 513,859 — 513,859 Corporate debt securities — 12,382 — 12,382 U.S. Treasury Bills — 91,170 — 91,170 Total securities available-for-sale — 1,366,006 — 1,366,006 Other investments — 3,012 — 3,012 Derivative financial instruments — 12,869 — 12,869 Total assets $ — $ 1,381,887 $ — $ 1,381,887 Liabilities Derivative financial instruments $ — $ 15,794 $ — $ 15,794 Total liabilities $ — $ 15,794 $ — $ 15,794 |
Summary of Financial Instruments and Non-Financial Assets Measured at Fair Value on a Non-Recurring Basis | The following tables present financial instruments and non-financial assets measured at fair value on a non-recurring basis. December 31, 2022 (1) (1) (1) (1) ($ in thousands) Total Fair Value Quoted Prices in Active Significant Significant Other real estate 269 — — 269 Loan servicing asset 1,027 $ 1,027 $ — Total $ 1,296 $ — $ 1,027 $ 269 December 31, 2021 (1) (1) (1) (1) ($ in thousands) Total Fair Value Quoted Prices in Active Significant Significant Impaired loans $ 6,406 $ — $ — $ 6,406 Other real estate 632 — — 632 Loan servicing asset 3,146 3,146 — Total $ 10,184 $ — $ 3,146 $ 7,038 |
Summary of Carrying Amount and Fair Values of Financial Instruments Reported on the Balance Sheets | Following is a summary of the carrying amounts and fair values of the Company’s financial instruments on the consolidated balance sheets at December 31, 2022 and 2021. This summary excludes certain financial assets and liabilities for which carrying value approximates fair value and financial instruments that are recorded at fair value on a recurring basis disclosed above. Financial instruments for which carrying values approximate fair value include cash and due from banks, federal funds sold, interest bearing deposits, accrued interest receivable/payable, demand, savings and money market deposits. December 31, 2022 December 31, 2021 ($ in thousands) Carrying Amount Estimated fair value Level Carrying Amount Estimated fair value Level Balance sheet assets Securities held-to-maturity $ 709,915 $ 628,517 Level 2 $ 429,681 $ 434,672 Level 2 Other investments 61,123 61,123 Level 2 56,884 56,884 Level 2 Loans held-for-sale 1,228 1,228 Level 2 6,389 6,389 Level 2 Loans, net 9,600,206 9,328,844 Level 3 8,872,601 8,869,891 Level 3 State tax credits, held-for-sale 27,700 28,880 Level 3 27,994 30,686 Level 3 Servicing asset 3,648 3,905 Level 2 6,714 6,714 Level 2 Balance sheet liabilities Certificates of deposit $ 530,708 $ 512,229 Level 3 $ 608,293 $ 606,177 Level 3 Subordinated debentures and notes 155,433 152,679 Level 2 154,899 155,972 Level 2 FHLB advances 100,000 100,004 Level 2 50,000 51,527 Level 2 Other borrowings 324,119 324,119 Level 2 353,863 353,863 Level 2 |
Schedule of Estimated Fair Values of Financial Instruments Not Recorded at Fair Value on Balance Sheet |
Parent Company Only Condensed_3
Parent Company Only Condensed Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheet Of Parent Company Only Disclosure | Condensed Balance Sheets December 31, ($ in thousands) 2022 2021 Assets Cash $ 99,018 $ 94,760 Investment in Bank 1,553,657 1,568,796 Investment in nonbank subsidiaries 16,476 14,302 Other assets 30,312 33,847 Total assets $ 1,699,463 $ 1,711,705 Liabilities and Shareholders’ Equity Subordinated debentures and notes $ 155,433 $ 154,899 Notes payable 17,143 22,857 Accounts payable and other liabilities 4,624 4,833 Shareholders' equity 1,522,263 1,529,116 Total liabilities and shareholders' equity $ 1,699,463 $ 1,711,705 |
Condensed Income Statement Of Parent Company Only Disclosure | Condensed Statements of Income Year ended December 31, ($ in thousands) 2022 2021 2020 Income: Dividends from Bank $ 75,000 $ 95,000 $ 37,000 Dividends from nonbank subsidiaries 1,700 2,000 1,400 Other 1,086 3,600 483 Total income 77,786 100,600 38,883 Expenses: Interest expense 9,825 11,406 10,590 Other expenses 8,580 11,037 6,946 Total expenses 18,405 22,443 17,536 Income before taxes and equity in undistributed earnings of subsidiaries 59,381 78,157 21,347 Income tax benefit 3,585 3,710 3,448 Net income before equity in undistributed earnings of subsidiaries 62,966 81,867 24,795 Equity in undistributed earnings of subsidiaries 140,077 51,188 49,589 Net income $ 203,043 $ 133,055 $ 74,384 |
Condensed Cash Flow Statment Of Parent Company Only Disclosure | Condensed Statements of Cash Flows Year ended December 31, ($ in thousands) 2022 2021 2020 Cash flows from operating activities: Net income $ 203,043 $ 133,055 $ 74,384 Adjustments to reconcile net income to net cash provided by operating activities: Share-based compensation 8,006 6,017 4,178 Net income of subsidiaries (216,777) (148,188) (87,989) Dividends from subsidiaries 76,700 97,000 38,400 Other, net 6,102 (16) 3,588 Net cash provided by operating activities 77,074 87,868 32,561 Cash flows from investing activities: Proceeds (cash paid) for acquisitions, net of cash acquired — 2,346 (1,243) Purchases of other investments (2,187) (2,204) (1,166) Proceeds from distributions on other investments 3,878 2,656 765 Net cash provided by (used in) investing activities 1,691 2,798 (1,644) Cash flows from financing activities: Proceeds from issuance of subordinated notes — — 61,953 Payments for the redemption of subordinated notes — (50,000) — Repayment of long-term debt (5,714) (7,143) (4,286) Dividends paid on common stock (33,602) (26,153) (19,795) Payments for the repurchase of common stock (32,923) (60,589) (15,347) Proceeds from issuance of preferred stock — 71,988 — Dividends paid on preferred stock (4,041) — — Other 1,773 516 78 Net cash provided by (used in) financing activities (74,507) (71,381) 22,603 Net increase in cash and cash equivalents 4,258 19,285 53,520 Cash and cash equivalents, beginning of year 94,760 75,475 21,955 Cash and cash equivalents, end of year $ 99,018 $ 94,760 $ 75,475 Supplemental disclosures of cash flow information: Noncash transactions: Common shares issued in connection with acquisitions $ — $ 343,650 $ 167,035 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information | The following table presents other income and other expense components that primarily exceed one percent of the aggregate of total interest income and noninterest income in one or more of the periods indicated: Year ended December 31, ($ in thousands) 2022 2021 2020 Other income: Community development fees $ 5,304 $ 5,491 $ 3,353 Bank-owned life insurance 3,324 2,938 3,194 Other income 8,089 13,719 10,415 Total other noninterest income $ 16,717 $ 22,148 $ 16,962 Other expense: Amortization of intangibles $ 5,367 $ 5,691 $ 5,673 Banking expenses 7,212 6,123 4,921 Deposit costs 31,082 14,211 1,410 FDIC and other insurance 7,098 5,789 3,897 Loan, legal expenses 6,943 7,130 4,003 Outside services 5,399 4,992 4,961 Other expenses 25,854 18,739 19,385 Total other noninterest expenses $ 88,955 $ 62,675 $ 44,250 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 17,355 | $ 13,483 | |
Number of reportable segments | segment | 1 | ||
Operating Lease, Liability | $ 18,038 | 14,865 | |
Servicing Asset | 3,600 | ||
Accrued interest receivable | $ 48,100 | $ 30,600 | |
Furniture, Fixtures and Equipment [Member] | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment useful life | 3 years | ||
Furniture, Fixtures and Equipment [Member] | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment useful life | 10 years | ||
Building and Leasehold Improvements [Member] | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment useful life | 10 years | ||
Building and Leasehold Improvements [Member] | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment useful life | 40 years | ||
Core Deposits [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Finite-lived intangible assets useful life | 10 years | 10 years | |
State and Local Jurisdiction [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Right to receive state tax credit at agreed upon rates | 10 years |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net income available to common shareholders | $ 199,002 | $ 133,055 | $ 74,384 |
Weighted average common shares outstanding (in shares) | 37,381,000 | 34,436,000 | 26,954,000 |
Additional dilutive common stock equivalents (in shares) | 119,000 | 60,000 | 35,000 |
Weighted average diluted common shares outstanding (in shares) | 37,500,000 | 34,496,000 | 26,989,000 |
Basic earnings per common share (in dollars per share) | $ 5.32 | $ 3.86 | $ 2.76 |
Diluted earnings per common share (in dollars per share) | $ 5.31 | $ 3.86 | $ 2.76 |
Common stock equivalents excluded from earnings per share calculations due to anti-dilutive effect (in shares) | 224,000 | 158,000 | 156,000 |
Investments - Schedule of Avail
Investments - Schedule of Available-for-sale and Held-to-Maturity Securities Reconciliation (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | $ 1,729,054 | $ 1,358,960 |
Gross Unrealized Gains | 481 | 15,247 |
Gross Unrealized Losses | (193,728) | (8,201) |
Securities available-for-sale | 1,535,807 | 1,366,006 |
Debt Securities, Held-to-maturity [Abstract] | ||
Amortized Cost | 710,650 | 430,295 |
Gross Unrealized Gains | 2,484 | 5,773 |
Gross Unrealized Losses | (84,617) | (1,396) |
Allowance for Credit Losses | (735) | (614) |
Debt Securities, Held-to-maturity, Fair Value | 628,517 | 434,672 |
debt securities, held to maturity, net of alloawance for credit losses | 709,915 | 429,681 |
Obligations of U.S. Government-sponsored enterprises | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 266,090 | 175,409 |
Gross Unrealized Gains | 0 | 3 |
Gross Unrealized Losses | (28,305) | (1,901) |
Securities available-for-sale | 237,785 | 173,511 |
Obligations of states and political subdivisions | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 507,842 | 571,587 |
Gross Unrealized Gains | 27 | 5,907 |
Gross Unrealized Losses | (90,425) | (2,410) |
Securities available-for-sale | 417,444 | 575,084 |
Debt Securities, Held-to-maturity [Abstract] | ||
Amortized Cost | 529,012 | 236,379 |
Gross Unrealized Gains | 2,321 | 1,794 |
Gross Unrealized Losses | (65,347) | (730) |
Debt Securities, Held-to-maturity, Fair Value | 465,986 | 237,443 |
Agency mortgage-backed securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 727,931 | 509,243 |
Gross Unrealized Gains | 453 | 8,485 |
Gross Unrealized Losses | (68,980) | (3,869) |
Securities available-for-sale | 659,404 | 513,859 |
Debt Securities, Held-to-maturity [Abstract] | ||
Amortized Cost | 57,018 | 68,105 |
Gross Unrealized Gains | 0 | 940 |
Gross Unrealized Losses | (6,416) | (666) |
Debt Securities, Held-to-maturity, Fair Value | 50,602 | 68,379 |
US Treasury Bill Securities [Member] | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 13,750 | 11,750 |
Gross Unrealized Gains | 0 | 632 |
Gross Unrealized Losses | (1,110) | 0 |
Securities available-for-sale | 12,640 | 12,382 |
Corporate Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost | 213,441 | 90,971 |
Gross Unrealized Gains | 1 | 220 |
Gross Unrealized Losses | (4,908) | (21) |
Securities available-for-sale | 208,534 | 91,170 |
Debt Securities, Held-to-maturity [Abstract] | ||
Amortized Cost | 124,620 | 125,811 |
Gross Unrealized Gains | 163 | 3,039 |
Gross Unrealized Losses | (12,854) | 0 |
Debt Securities, Held-to-maturity, Fair Value | $ 111,929 | $ 128,850 |
Investments - Investments Class
Investments - Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Available for sale, Amortized Cost | ||
Due in one year or less | $ 104,362 | |
Due after one year through five years | 345,957 | |
Due after five years through ten years | 67,667 | |
Due after ten years | 483,137 | |
Agency mortgage-backed securities | 727,931 | |
Amortized Cost | 1,729,054 | $ 1,358,960 |
Available for sale, Estimated Fair Value | ||
Due in one year or less | 104,000 | |
Due after one year through five years | 318,556 | |
Due after five years through ten years | 60,425 | |
Due after ten years | 393,422 | |
Agency mortgage-backed securities | 659,404 | |
Securities available-for-sale | 1,535,807 | 1,366,006 |
Held to maturity, Amortized Cost | ||
Due in one year or less | 950 | |
Due after one year through five years | 41,312 | |
Due after five years through ten years | 179,013 | |
Due after ten years | 432,357 | |
Agency mortgage-backed securities | 57,018 | |
Amortized Cost | 710,650 | 430,295 |
Held to maturity, Estimated Fair Value | ||
Due in one year or less | 949 | |
Due after one year through five years | 38,210 | |
Due after five years through ten years | 165,304 | |
Due after ten years | 373,452 | |
Agency mortgage-backed securities | 50,602 | |
Held to maturity, fair value | $ 628,517 | $ 434,672 |
Investments - Schedule of Unrea
Investments - Schedule of Unrealized Loss on Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 722,676 | $ 725,830 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 45,806 | 7,842 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 756,002 | 13,117 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 147,922 | 359 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 1,478,678 | 738,947 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 193,728 | 8,201 |
Obligations of U.S. Government-sponsored enterprises | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 73,738 | 163,634 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 6,249 | 1,775 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 163,047 | 4,874 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 22,056 | 126 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 236,785 | 168,508 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 28,305 | 1,901 |
Obligations of states and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 103,179 | 242,188 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 13,501 | 2,361 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 311,634 | 1,776 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 76,924 | 49 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 414,813 | 243,964 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 90,425 | 2,410 |
Agency mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 334,431 | 259,047 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 20,038 | 3,685 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 281,321 | 6,467 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 48,942 | 184 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 615,752 | 265,514 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 68,980 | 3,869 |
US Treasury Bill Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 198,688 | 60,961 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 4,908 | 21 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 198,688 | 60,961 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 4,908 | $ 21 |
Corporate Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 12,640 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 1,110 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 0 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Debt Securities, Available-for-sale, Unrealized Loss Position | 12,640 | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | $ 1,110 |
Investments - Schedule of Reali
Investments - Schedule of Realized Gain (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||
Gross gains realized | $ 0 | $ 0 | $ 421 |
Proceeds from sales | $ 0 | $ 27,135 | $ 20,221 |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) number_of_securities | Dec. 31, 2021 USD ($) number_of_securities | Dec. 31, 2020 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||||
Debt Securities, Available-for-sale, Amortized Cost | $ 1,729,054 | $ 1,358,960 | ||
Other investments | $ 63,790 | $ 59,896 | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | number_of_securities | 740 | 290 | ||
Gross Unrealized Gains | $ 481 | $ 15,247 | ||
Maximum percentage of shareholders' equity security holdings held of one issuer | 10% | |||
Available-for-sale securities pledged as collateral, fair value | $ 734,500 | 752,700 | ||
Weighted average life (in years) | 5 years | |||
accrued interest receivable, held to maturity securities | $ 5,800 | 3,400 | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss | 735 | 614 | ||
Sale of debt securities, available-for-sale | 0 | 27,135 | $ 20,221 | |
Gross gains realized | 0 | 0 | $ 421 | |
Securities available-for-sale | 1,535,807 | 1,366,006 | ||
Subsequent Event | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Sale of debt securities, available-for-sale | $ 28,400 | |||
Gross gains realized | $ 400 | |||
Des Moines | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Other investments | 14,000 | 12,100 | ||
Reclassified to Held to Maturity [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt Securities, Available-for-sale, Amortized Cost | 116,700 | |||
Gross Unrealized Gains | $ 17,600 | $ 21,000 |
Portfolio Loans - Summary of Po
Portfolio Loans - Summary of Portfolio Loans by Category (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, before unearned loan fees | $ 9,737,138 | $ 9,017,642 |
Non-Covered Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, before unearned loan fees | 9,744,427 | 9,026,780 |
Unearned loan fees, net | (7,289) | (9,138) |
Loans, including unearned loan fees | 9,737,138 | 9,017,642 |
Non-Covered Loans | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, before unearned loan fees | 3,859,964 | 3,396,590 |
Non-Covered Loans | Commercial - investor owned | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, before unearned loan fees | 2,357,820 | 2,141,143 |
Non-Covered Loans | CRE - owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, before unearned loan fees | 2,270,551 | 2,035,785 |
Non-Covered Loans | Construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, before unearned loan fees | 611,565 | 734,073 |
Non-Covered Loans | Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, before unearned loan fees | 395,537 | 454,052 |
Non-Covered Loans | Total real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, before unearned loan fees | 5,635,473 | 5,365,053 |
Non-Covered Loans | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, before unearned loan fees | $ 248,990 | $ 265,137 |
Portfolio Loans - Summary of Al
Portfolio Loans - Summary of Allowance for Loan Losses by Portfolio Class and Category (Details) - Non-Covered Loans - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for Loan Losses [Roll Forward] | |||
Balance, beginning of year | $ 145,041 | $ 136,671 | $ 69,995 |
Provision (benefit) for loan losses | (4,210) | 12,993 | 63,379 |
Initial Allowance on Acquired PCD Loans | 7,006 | 3,524 | |
Charge-offs | (9,393) | (17,185) | (6,739) |
Recoveries | 5,494 | 5,556 | 6,512 |
Balance, end of year | 136,932 | 145,041 | 136,671 |
Commercial and industrial | |||
Allowance for Loan Losses [Roll Forward] | |||
Balance, beginning of year | 63,825 | 58,812 | 33,949 |
Provision (benefit) for loan losses | (6,121) | 14,361 | 28,373 |
Initial Allowance on Acquired PCD Loans | 1,077 | 23 | |
Charge-offs | (6,082) | (12,113) | (5,381) |
Recoveries | 2,213 | 1,688 | 1,848 |
Balance, end of year | 53,835 | 63,825 | 58,812 |
Commercial - investor owned | |||
Allowance for Loan Losses [Roll Forward] | |||
Balance, beginning of year | 35,877 | 32,062 | 16,656 |
Provision (benefit) for loan losses | 46 | 568 | 11,037 |
Initial Allowance on Acquired PCD Loans | 3,651 | 2,026 | |
Charge-offs | (478) | (2,487) | (498) |
Recoveries | 746 | 2,083 | 2,841 |
Balance, end of year | 36,191 | 35,877 | 32,062 |
CRE - owner occupied | |||
Allowance for Loan Losses [Roll Forward] | |||
Balance, beginning of year | 17,560 | 17,012 | 7,414 |
Provision (benefit) for loan losses | 4,867 | (550) | 7,845 |
Initial Allowance on Acquired PCD Loans | 1,504 | 1,427 | |
Charge-offs | (395) | (602) | (30) |
Recoveries | 720 | 196 | 356 |
Balance, end of year | 22,752 | 17,560 | 17,012 |
Construction and land development | |||
Allowance for Loan Losses [Roll Forward] | |||
Balance, beginning of year | 14,536 | 21,413 | 7,577 |
Provision (benefit) for loan losses | (3,145) | (7,365) | 13,438 |
Initial Allowance on Acquired PCD Loans | 37 | 45 | |
Charge-offs | 0 | (3) | (31) |
Recoveries | 53 | 454 | 384 |
Balance, end of year | 11,444 | 14,536 | 21,413 |
Residential real estate | |||
Allowance for Loan Losses [Roll Forward] | |||
Balance, beginning of year | 7,927 | 4,585 | 3,349 |
Provision (benefit) for loan losses | 540 | 3,900 | 674 |
Initial Allowance on Acquired PCD Loans | 0 | 3 | |
Charge-offs | (2,068) | (1,521) | (408) |
Recoveries | 1,529 | 963 | 967 |
Balance, end of year | 7,928 | 7,927 | 4,585 |
Other | |||
Allowance for Loan Losses [Roll Forward] | |||
Balance, beginning of year | 5,316 | 2,787 | 1,050 |
Provision (benefit) for loan losses | (397) | 2,079 | 2,012 |
Initial Allowance on Acquired PCD Loans | 737 | 0 | |
Charge-offs | (370) | (459) | (391) |
Recoveries | 233 | 172 | 116 |
Balance, end of year | $ 4,782 | $ 5,316 | $ 2,787 |
Portfolio Loans - Collateral De
Portfolio Loans - Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Commercial Real Estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | $ 3,415 | $ 7,247 |
Commercial Real Estate | Commercial and industrial | Commercial and industrial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | 4,271 |
Commercial Real Estate | Commercial Portfolio Segment | Commercial - investor owned | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 2,238 | 169 |
Commercial Real Estate | Commercial Portfolio Segment | Commercial - owner occupied | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 1,177 | 2,807 |
Commercial Real Estate | Commercial Portfolio Segment | Construction and land development | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | |
Commercial Real Estate | Residential | Residential real estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | 0 |
Commercial Real Estate | Other | Other | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | |
Residential | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 2,050 | 3,489 |
Residential | Commercial and industrial | Commercial and industrial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | 209 |
Residential | Commercial Portfolio Segment | Commercial - investor owned | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 785 | 1,200 |
Residential | Commercial Portfolio Segment | Commercial - owner occupied | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | 32 |
Residential | Commercial Portfolio Segment | Construction and land development | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 1,192 | |
Residential | Residential | Residential real estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 73 | 2,048 |
Residential | Other | Other | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | |
Blanket Lien | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 1,047 | 9,312 |
Blanket Lien | Commercial and industrial | Commercial and industrial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 1,047 | 9,312 |
Blanket Lien | Commercial Portfolio Segment | Commercial - investor owned | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | 0 |
Blanket Lien | Commercial Portfolio Segment | Commercial - owner occupied | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | 0 |
Blanket Lien | Commercial Portfolio Segment | Construction and land development | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | |
Blanket Lien | Residential | Residential real estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | $ 0 | 0 |
Blanket Lien | Other | Other | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | $ 0 |
Portfolio Loans - Narrative (De
Portfolio Loans - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
financing receivable, paycheck protection program | $ 7,400 | $ 276,200 | ||
financing receivable, paycheck protection program, net of deferred fees | 7,300 | 272,000 | ||
financing recievable, paycheck protection program, unearned fees | 100 | 4,200 | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Maximum Amount Available | 2,800,000 | |||
net premium, acquired loans | 11,900 | 11,900 | ||
Allowance for Credit Losses, Qualitative Adjustment | 41,100 | |||
Notes Receivable, Related Parties | 100 | 5,700 | ||
Financing Receivable, Credit Loss, Expense (Reversal), Additional Provision | $ 3,600 | 400 | ||
Financing Receivable, Credit Loss, Expense (Reversal), Acquisition Related Expense | 25,400 | |||
Portfolio Loans | LOANS Below is a summary of loans by category: ($ in thousands) December 31, 2022 December 31, 2021 Commercial and industrial $ 3,859,964 $ 3,396,590 Real estate loans: Commercial - investor owned 2,357,820 2,141,143 Commercial - owner occupied 2,270,551 2,035,785 Construction and land development 611,565 734,073 Residential 395,537 454,052 Total real estate loans 5,635,473 5,365,053 Other 248,990 265,137 Loans, before unearned loan fees 9,744,427 9,026,780 Unearned loan fees, net (7,289) (9,138) Loans, including unearned loan fees $ 9,737,138 $ 9,017,642 PPP loans totaled $7.4 million at December 31, 2022, or $7.3 million net of unearned fees of $0.1 million. PPP loans totaled $276.2 million at December 31, 2021, or $272.0 million net of unearned fees of $4.2 million. The loan balance includes a net premium on acquired loans of $11.9 million at both December 31, 2022 and 2021. At December 31, 2022 loans of $2.8 billion were pledged to the FHLB and the Federal Reserve. Loans to executive officers and directors, or to entities in which such individuals had beneficial interests as a shareholder, officer, or director totaled $0.1 million and $5.7 million for the year ended December 31, 2022 and 2021, respectively. Such loans were made in the normal course of business on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other customers and did not involve more than the normal risk of collectibility. A summary of the activity, by loan category, in the allowance for credit losses on loans for 2020, 2021, and 2022 is as follows: ($ in thousands) Commercial and industrial CRE - investor owned CRE - owner occupied Construction and land development Residential real estate Other Total Balance at December 31, 2020 Allowance for loan losses: Balance, beginning of year $ 33,949 $ 16,656 $ 7,414 $ 7,577 $ 3,349 $ 1,050 $ 69,995 Provision for loan losses 28,373 11,037 7,845 13,438 674 2,012 63,379 Initial allowance on acquired PCD loans 23 2,026 1,427 45 3 — 3,524 Charge-offs (5,381) (498) (30) (31) (408) (391) (6,739) Recoveries 1,848 2,841 356 384 967 116 6,512 Balance, end of year $ 58,812 $ 32,062 $ 17,012 $ 21,413 $ 4,585 $ 2,787 $ 136,671 Balance at December 31, 2021 Allowance for loan losses: Balance, beginning of year $ 58,812 $ 32,062 $ 17,012 $ 21,413 $ 4,585 $ 2,787 $ 136,671 Provision (benefit) for loan losses 14,361 568 (550) (7,365) 3,900 2,079 12,993 Initial allowance on acquired PCD loans 1,077 3,651 1,504 37 — 737 7,006 Charge-offs (12,113) (2,487) (602) (3) (1,521) (459) (17,185) Recoveries 1,688 2,083 196 454 963 172 5,556 Balance, end of year $ 63,825 $ 35,877 $ 17,560 $ 14,536 $ 7,927 $ 5,316 $ 145,041 Balance at December 31, 2022 Allowance for credit losses: Balance, beginning of year $ 63,825 $ 35,877 $ 17,560 $ 14,536 $ 7,927 $ 5,316 $ 145,041 Provision (benefit) for loan losses (6,121) 46 4,867 (3,145) 540 (397) (4,210) Charge-offs (6,082) (478) (395) — (2,068) (370) (9,393) Recoveries 2,213 746 720 53 1,529 233 5,494 Balance, end of year $ 53,835 $ 36,191 $ 22,752 $ 11,444 $ 7,928 $ 4,782 $ 136,932 The Company recorded a provision benefit of $4.2 million and a provision for credit losses on loans of $13.0 million for the years ended December 31, 2022 and 2021, respectively. An additional provision for credit losses of $3.6 million and $0.4 million was recorded in 2022 and 2021, respectively, for HTM securities, unfunded commitments and the recapture of accrued interest on nonaccrual loans. Acquisition-related provision expense of $25.4 million in 2021 was included in the provision for credit losses. This expense, commonly referred to as the “CECL double-count”, is recognized when a loan portfolio is acquired. The CECL methodology incorporates various economic scenarios. The Company utilizes three forecasts in the model; Moody’s baseline, a stronger near-term growth upside and a moderate recession downside forecast. The Company weights these scenarios at 40%, 30%, and 30%, respectively, which added approximately $12.3 million to the ACL over the baseline model at December 31, 2022. These forecasts at the end of 2022 incorporate an expectation that the Federal Reserve will continue quantitative tightening and raise the federal funds rate further into 2023, and that the pandemic will continue to recede and be less disruptive to global supply chains and labor markets. The Company has also recognized various risks posed by loans in certain segments, including the hospitality and commercial office sectors, by allocating additional reserves to those segments. Some of the key risks to the forecasts that could result in future provision for credit losses are market reactions to the Federal Reserve policy actions that could push the economy into a recession, persistently higher inflation, continued or worsening supply-chain issues, labor supply and job growth worsens, or financial market conditions tighten more than expected. In addition to the CECL methodology, the Company incorporates qualitative adjustments into the ACL on loans to capture credit risks inherent within the loan portfolio that are not captured in the DCF model. Included in these risks are 1) changes in lending policies and procedures, 2) actual and expected changes in business and economic conditions, 3) changes in the nature and volume of the portfolio, 4) changes in lending management, 5) changes in volume and the severity of past due loans, 6) changes in the quality of the loan review system, 7) changes in the value of underlying collateral, 8) the existence and effect of concentrations of credit and 9) other factors such as the regulatory, legal and competitive environments and events such as natural disasters and pandemics. At December 31, 2022, the ACL on loans included a qualitative adjustment of approximately $41.1 million. Of this amount, approximately $9.4 million was allocated to Sponsor Finance loans due to their unsecured nature. The recorded investment in nonperforming loans by category at December 31, 2022 and 2021 is as follows: December 31, 2022 ($ in thousands) Non-accrual Restructured, accruing Loans over 90 days past due and still accruing interest Total nonperforming loans Nonaccrual loans with no allowance Commercial and industrial $ 4,373 $ — $ 70 $ 4,443 $ 1,047 Real estate: Commercial - investor owned 3,023 — — 3,023 — Commercial - owner occupied 1,177 — — 1,177 — Construction and land development 1,192 — — 1,192 1,192 Residential — 73 — 73 — Other 1 — 72 73 — Total $ 9,766 $ 73 $ 142 $ 9,981 $ 2,239 December 31, 2021 ($ in thousands) Non-accrual Restructured, accruing Loans over 90 days past due and still accruing interest Total nonperforming loans Nonaccrual loans with no allowance Commercial and industrial $ 17,052 $ 2,783 $ 1,703 $ 21,538 $ 5,685 Real estate: Commercial - investor owned 1,575 — — 1,575 168 Commercial - owner occupied 2,839 — — 2,839 2,550 Residential 1,971 76 1 2,048 1,348 Other 12 — 12 24 — Total $ 23,449 $ 2,859 $ 1,716 $ 28,024 $ 9,751 Interest income recognized on nonaccrual loans was immaterial in the years ending December 31, 2020, 2021 and 2022. The amortized cost basis of collateral-dependent nonperforming loans by class of loan is presented for the periods indicated: December 31, 2022 Type of Collateral (in thousands) Commercial Real Estate Residential Real Estate Blanket Lien Commercial and industrial $ — $ — $ 1,047 Real estate: Commercial - investor owned 2,238 785 — Commercial - owner occupied 1,177 — — Construction and land development — 1,192 — Residential — 73 — Total $ 3,415 $ 2,050 $ 1,047 December 31, 2021 Type of Collateral (in thousands) Commercial Real Estate Residential Real Estate Blanket Lien Commercial and industrial $ 4,271 $ 209 $ 9,312 Real estate: Commercial - investor owned 169 1,200 — Commercial - owner occupied 2,807 32 — Residential — 2,048 — Other — — — Total $ 7,247 $ 3,489 $ 9,312 No loans were restructured during the year ended 2022. The recorded investment by category for loans restructured during the year ended December 31, 2021 is as follows: Year ended December 31, 2021 ($ in thousands, except for number of loans) Number of Loans Pre-Modification Outstanding Post-Modification Outstanding Real Estate: Residential 1 221 221 Restructured loans primarily resulted from interest rate concessions. As of December 31, 2022, the Company allocated an immaterial amount in specific reserves to loans that have been restructured. No restructured loans subsequently defaulted during the year ended December 31, 2022. Loans restructured that subsequently defaulted during the year ended December 31, 2021 are as follows: Year ended December 31, 2021 ($ in thousands, except for number of loans) Number of Loans Recorded Balance Real Estate: Residential 1 $ 148 The aging of the recorded investment in past due loans by class and category is shown below: December 31, 2022 ($ in thousands) 30-89 Days 90 or More Total Current Total Commercial and industrial $ 555 $ 2,373 $ 2,928 $ 3,857,036 $ 3,859,964 Real estate: Commercial - investor owned — 1,135 1,135 2,356,685 2,357,820 Commercial - owner occupied 8,628 164 8,792 2,261,759 2,270,551 Construction and land development 9 1,192 1,201 610,364 611,565 Residential 1,227 — 1,227 394,310 395,537 Other 18 72 90 248,900 248,990 Loans, before unearned loan fees 10,437 4,936 15,373 9,729,054 9,744,427 Unearned loan fees, net — — — (7,289) (7,289) Total $ 10,437 $ 4,936 $ 15,373 $ 9,721,765 $ 9,737,138 December 31, 2021 ($ in thousands) 30-89 Days 90 or More Total Current Total Commercial and industrial $ 24,447 $ 14,158 $ 38,605 $ 3,357,985 $ 3,396,590 Real estate: Commercial - investor owned 3,880 — 3,880 2,137,263 2,141,143 Commercial - owner occupied 10,070 289 10,359 2,025,426 2,035,785 Construction and land development 24 — 24 734,049 734,073 Residential 3,181 1,305 4,486 449,566 454,052 Other 37 11 48 265,089 265,137 Loans, before unearned loan fees 41,639 15,763 57,402 8,969,378 9,026,780 Unearned loan fees, net — — — (9,138) (9,138) Total $ 41,639 $ 15,763 $ 57,402 $ 8,960,240 $ 9,017,642 The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, payment experience, credit documentation, and current economic factors among other factors. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: • Grades 1, 2, and 3 – Includes loans to borrowers with a continuous record of strong earnings, sound balance sheet condition and capitalization, ample liquidity with solid cash flow, and whose management team has experience and depth within their industry. • Grade 4 – Includes loans to borrowers with positive trends in profitability, satisfactory capitalization and balance sheet condition, and sufficient liquidity and cash flow. • Grade 5 – Includes loans to borrowers that may display fluctuating trends in sales, profitability, capitalization, liquidity, and cash flow. • Grade 6 – Includes loans to borrowers where an adverse change or perceived weakness has occurred, but may be correctable in the near future. Alternatively, this rating category may also include circumstances where the borrower is starting to reverse a negative trend or condition, or has recently been upgraded from a 7, 8, or 9 rating. • Grade 7 – Special Mention credits are borrowers that have experienced financial setback of a nature that is not determined to be severe or influence ‘ongoing concern’ expectations. Although possible, no loss is anticipated, due to strong collateral and/or guarantor support. • Grade 8 – Substandard credits include those borrowers characterized by significant losses and sustained downward trends in balance sheet condition, liquidity, and cash flow. Repayment reliance may have shifted to secondary sources. Collateral exposure may exist and additional reserves may be warranted. • Grade 9 – Doubtful credits include borrowers that may show deteriorating trends that are unlikely to be corrected. Collateral values may appear insufficient for full recovery, therefore requiring a partial charge-off, or debt renegotiation with the borrower. The borrower may have declared bankruptcy or bankruptcy is likely in the near term. All doubtful rated credits will be on non-accrual. The recorded investment by risk category of the loans by class and year of origination is presented in the following tables as of the dates indicated: December 31, 2022 Term Loans by Origination Year (in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Converted to Term Loans Revolving Loans Total Commercial and industrial Pass (1-6) $ 1,403,381 $ 635,275 $ 332,740 $ 172,127 $ 62,729 $ 66,152 $ 8,388 $ 964,592 $ 3,645,384 Special Mention (7) 37,048 10,836 13,858 423 7,995 4,102 — 72,944 147,206 Classified (8-9) 16,176 4,457 1,627 24 166 183 — 21,349 43,982 Total Commercial and industrial $ 1,456,605 $ 650,568 $ 348,225 $ 172,574 $ 70,890 $ 70,437 $ 8,388 $ 1,058,885 $ 3,836,572 Commercial real estate-investor owned Pass (1-6) $ 667,107 $ 584,644 $ 392,402 $ 240,033 $ 115,530 $ 202,661 $ 1,457 $ 53,051 $ 2,256,885 Special Mention (7) 18,844 5,751 23,502 11,605 — 13,063 — — 72,765 Classified (8-9) 1,823 — 465 953 193 6,092 49 — 9,575 Total Commercial real estate-investor owned $ 687,774 $ 590,395 $ 416,369 $ 252,591 $ 115,723 $ 221,816 $ 1,506 $ 53,051 $ 2,339,225 Commercial real estate-owner occupied Pass (1-6) $ 539,610 $ 555,690 $ 362,150 $ 232,335 $ 123,095 $ 270,613 $ — $ 57,308 $ 2,140,801 Special Mention (7) 11,164 3,801 16,856 4,455 13,043 9,009 — 800 59,128 Classified (8-9) — 1,572 3,483 8,910 15,873 11,387 — — 41,225 Total Commercial real estate-owner occupied $ 550,774 $ 561,063 $ 382,489 $ 245,700 $ 152,011 $ 291,009 $ — $ 58,108 $ 2,241,154 Construction real estate Pass (1-6) $ 290,146 $ 232,998 $ 53,129 $ 2,909 $ 2,061 $ 8,480 $ — $ 1,769 $ 591,492 Special Mention (7) 17,331 — 681 146 111 106 — — 18,375 Classified (8-9) 1,192 — — 14 471 21 — — 1,698 Total Construction real estate $ 308,669 $ 232,998 $ 53,810 $ 3,069 $ 2,643 $ 8,607 $ — $ 1,769 $ 611,565 Residential real estate Pass (1-6) $ 63,317 $ 60,910 $ 48,796 $ 20,943 $ 11,259 $ 88,795 $ 579 $ 96,304 $ 390,903 Special Mention (7) 331 — — 79 352 781 — — 1,543 Classified (8-9) 121 73 — 53 1,102 994 — 5 2,348 Total residential real estate $ 63,769 $ 60,983 $ 48,796 $ 21,075 $ 12,713 $ 90,570 $ 579 $ 96,309 $ 394,794 Other Pass (1-6) $ 38,753 $ 88,613 $ 56,252 $ 10,556 $ 20,508 $ 10,796 $ — $ 9,536 $ 235,014 Special Mention (7) — — — — — — — — — Classified (8-9) — — — 4 3 11 3 4 25 Total Other $ 38,753 $ 88,613 $ 56,252 $ 10,560 $ 20,511 $ 10,807 $ 3 $ 9,540 $ 235,039 Total loans classified by risk category $ 3,106,344 $ 2,184,620 $ 1,305,941 $ 705,569 $ 374,491 $ 693,246 $ 10,476 $ 1,277,662 $ 9,658,349 Total loans classified by performing status 78,789 Total loans $ 9,737,138 December 31, 2021 Term Loans by Origination Year (in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Converted to Term Loans Revolving Loans Total Commercial and industrial Pass (1-6) $ 1,180,601 $ 477,374 $ 317,869 $ 132,851 $ 116,738 $ 82,846 $ 11,648 $ 854,102 $ 3,174,029 Special Mention (7) 35,005 17,502 9,404 9,880 12,217 10,979 4,037 53,595 152,619 Classified (8-9) 14,917 3,530 3,840 1,689 2,988 813 787 10,996 39,560 Total Commercial and industrial $ 1,230,523 $ 498,406 $ 331,113 $ 144,420 $ 131,943 $ 94,638 $ 16,472 $ 918,693 $ 3,366,208 Commercial real estate-investor owned Pass (1-6) $ 651,740 $ 476,946 $ 346,245 $ 146,107 $ 112,043 $ 217,808 $ 3,625 $ 68,236 $ 2,022,750 Special Mention (7) 16,871 35,908 32,755 1,003 502 17,478 300 2,062 106,879 Classified (8-9) 1,376 3,135 835 817 1,159 4,141 — 50 11,513 Total Commercial real estate-investor owned $ 669,987 $ 515,989 $ 379,835 $ 147,927 $ 113,704 $ 239,427 $ 3,925 $ 70,348 $ 2,141,142 Commercial real estate-owner occupied Pass (1-6) $ 604,975 $ 423,263 $ 278,830 $ 164,210 $ 140,515 $ 235,973 $ 250 $ 48,349 $ 1,896,365 Special Mention (7) 12,825 13,585 4,301 16,774 10,274 15,764 — 300 73,823 Classified (8-9) 2,048 556 9,181 17,016 6,432 6,959 — — 42,192 Total Commercial real estate-owner occupied $ 619,848 $ 437,404 $ 292,312 $ 198,000 $ 157,221 $ 258,696 $ 250 $ 48,649 $ 2,012,380 Construction real estate Pass (1-6) $ 310,140 $ 229,396 $ 70,531 $ 35,936 $ 14,860 $ 7,180 $ 568 $ 2,992 $ 671,603 Special Mention (7) 28,947 15,348 60 1,199 11,068 2,330 — — 58,952 Classified (8-9) — — 387 419 — 22 — — 828 Total Construction real estate $ 339,087 $ 244,744 $ 70,978 $ 37,554 $ 25,928 $ 9,532 $ 568 $ 2,992 $ 731,383 Residential real estate Pass (1-6) $ 116,352 $ 66,481 $ 21,356 $ 14,841 $ 24,778 $ 103,840 $ 9,980 $ 87,146 $ 444,774 Special Mention (7) 2,425 2 622 1,157 248 1,305 — 79 5,838 Classified (8-9) 414 169 554 — 12 2,024 — — 3,173 Total residential real estate $ 119,191 $ 66,652 $ 22,532 $ 15,998 $ 25,038 $ 107,169 $ 9,980 $ 87,225 $ 453,785 Other Pass (1-6) $ 108,209 $ 68,806 $ 22,684 $ 23,145 $ 6,924 $ 13,832 $ 1,500 $ 9,166 $ 254,266 Special Mention (7) — — — 4 — 2,440 — 1 2,445 Classified (8-9) — — 10 10 — 16 — 2 38 Total Other $ 108,209 $ 68,806 $ 22,694 $ 23,159 $ 6,924 $ 16,288 $ 1,500 $ 9,169 $ 256,749 Total loans classified by risk category $ 3,086,845 $ 1,832,001 $ 1,119,464 $ 567,058 $ 460,758 $ 725,750 $ 32,695 $ 1,137,076 $ 8,961,647 Total loans classified by performing status 55,995 Total loans $ 9,017,642 In the tables above, loan originations in 2022 and 2021 with a classification of “special mention” or “classified” primarily represent renewals or modifications initially underwritten and originated in prior years. For certain loans the Company evaluates credit quality based on the aging status. December 31, 2022 (in thousands) Performing Non Performing Total Commercial and industrial $ 23,240 $ 70 $ 23,310 Real estate: Commercial - investor owned 18,595 — 18,595 Commercial - owner occupied 29,397 — 29,397 Construction and land development — — — Residential 743 — 743 Other 6,672 72 6,744 Total $ 78,647 $ 142 $ 78,789 December 31, 2021 (in thousands) Performing Non Performing Total Commercial and industrial $ 26,166 $ 1 $ 26,167 Real estate: Commercial - investor owned 1 — 1 Commercial - owner occupied 23,405 — 23,405 Construction and land development 2,690 — 2,690 Residential 267 — 267 Other 3,453 12 3,465 Total $ 55,982 $ 13 $ 55,995 | |||
enterprise value lending portfolio niche segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for Credit Losses, Qualitative Adjustment | $ 9,400 | |||
Non-Covered Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Credit Loss, Expense (Reversal) | $ 4,200 | 13,000 | ||
Number of Loans | loan | 0 | |||
Number of Loans | loan | 0 | |||
Financing Receivable, Allowance for Credit Loss | $ 136,932 | $ 145,041 | $ 136,671 | $ 69,995 |
Non-Covered Loans | Cumulative Effect, Period of Adoption, Adjustment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Allowance for Credit Loss | 12,300 | |||
Unadvanced Commitment on Impaired Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Estimated losses attributable to unadvanced commitments on impaired loans | $ 12,100 |
Portfolio Loans - Summary of Re
Portfolio Loans - Summary of Recorded Investment in Impaired Portfolio Loans by Category (Details) - Non-Covered Loans - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | $ 9,766 | $ 23,449 |
Restructured, accruing | 73 | 2,859 |
Loans over 90 days past due and still accruing interest | 142 | 1,716 |
Total Recorded Investment | 9,981 | 28,024 |
Recorded Investment With No Allowance | 2,239 | 9,751 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 4,373 | 17,052 |
Restructured, accruing | 0 | 2,783 |
Loans over 90 days past due and still accruing interest | 70 | 1,703 |
Total Recorded Investment | 4,443 | 21,538 |
Recorded Investment With No Allowance | 1,047 | 5,685 |
Commercial - investor owned | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 3,023 | 1,575 |
Restructured, accruing | 0 | 0 |
Loans over 90 days past due and still accruing interest | 0 | 0 |
Total Recorded Investment | 3,023 | 1,575 |
Recorded Investment With No Allowance | 0 | 168 |
CRE - owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 1,177 | 2,839 |
Restructured, accruing | 0 | 0 |
Loans over 90 days past due and still accruing interest | 0 | 0 |
Total Recorded Investment | 1,177 | 2,839 |
Recorded Investment With No Allowance | 0 | 2,550 |
Construction and land development | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 1,192 | |
Restructured, accruing | 0 | |
Loans over 90 days past due and still accruing interest | 0 | |
Total Recorded Investment | 1,192 | |
Recorded Investment With No Allowance | 1,192 | |
Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 0 | 1,971 |
Restructured, accruing | 73 | 76 |
Loans over 90 days past due and still accruing interest | 0 | 1 |
Total Recorded Investment | 73 | 2,048 |
Recorded Investment With No Allowance | 0 | 1,348 |
Other | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual | 1 | 12 |
Restructured, accruing | 0 | 0 |
Loans over 90 days past due and still accruing interest | 72 | 12 |
Total Recorded Investment | 73 | 24 |
Recorded Investment With No Allowance | $ 0 | $ 0 |
Portfolio Loans - Summary of _2
Portfolio Loans - Summary of Recorded Investment by Category for Portfolio Loans Restructured (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | |
Commercial Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Nonaccrual | $ 3,415 | $ 7,247 |
Residential | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Nonaccrual | 2,050 | 3,489 |
Blanket Lien | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Nonaccrual | 1,047 | 9,312 |
Commercial and industrial | Commercial Real Estate | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | 4,271 |
Commercial and industrial | Residential | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | 209 |
Commercial and industrial | Blanket Lien | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Nonaccrual | 1,047 | 9,312 |
Commercial - investor owned | Commercial Real Estate | Commercial Portfolio Segment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Nonaccrual | 2,238 | 169 |
Commercial - investor owned | Residential | Commercial Portfolio Segment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Nonaccrual | 785 | 1,200 |
Commercial - investor owned | Blanket Lien | Commercial Portfolio Segment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | 0 |
CRE - owner occupied | Commercial Real Estate | Commercial Portfolio Segment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Nonaccrual | 1,177 | 2,807 |
CRE - owner occupied | Residential | Commercial Portfolio Segment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | 32 |
CRE - owner occupied | Blanket Lien | Commercial Portfolio Segment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | 0 |
Residential real estate | Commercial Real Estate | Residential | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | 0 |
Residential real estate | Residential | Residential | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Nonaccrual | 73 | 2,048 |
Residential real estate | Blanket Lien | Residential | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | 0 |
Other | Commercial Real Estate | Other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | |
Other | Residential | Other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | |
Other | Blanket Lien | Other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | |
Non-Covered Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Nonaccrual | $ 9,766 | 23,449 |
Number of Loans | loan | 0 | |
Non-Covered Loans | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Nonaccrual | $ 4,373 | 17,052 |
Non-Covered Loans | Commercial - investor owned | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Nonaccrual | 3,023 | 1,575 |
Non-Covered Loans | CRE - owner occupied | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Nonaccrual | 1,177 | 2,839 |
Non-Covered Loans | Residential real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | $ 1,971 |
Number of Loans | loan | 1 | |
Pre-Modification Outstanding Recorded Balance | $ 221 | |
Post-Modification Outstanding Recorded Balance | 221 | |
Non-Covered Loans | Other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Financing Receivable, Nonaccrual | $ 1 | $ 12 |
Portfolio Loans - Summary of _3
Portfolio Loans - Summary of Recorded Investment by Category for Portfolio Loans Restructured and Subsequently Defaulted (Details) - Non-Covered Loans $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 loan | Dec. 31, 2021 USD ($) loan | |
Schedule of Financing Receivables, Troubled Debt Restructurings - Suibsequent Defaults [Line Items] | ||
Number of Loans | 0 | |
Residential | ||
Schedule of Financing Receivables, Troubled Debt Restructurings - Suibsequent Defaults [Line Items] | ||
Number of Loans | 1 | |
Recorded Balance | $ | $ 148 |
Portfolio Loans - Summary of Ag
Portfolio Loans - Summary of Aging of Recorded Investment in Past Due Portfolio Loans by Portfolio Class and Category (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | $ 9,737,138 | $ 9,017,642 |
Non-Covered Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 9,744,427 | 9,026,780 |
Financing Receivable, Covered, after Allowance for Credit Loss | 9,737,138 | 9,017,642 |
Financing Receivable, Covered, After Allowance For Credit Loss And Unearned Loan Fees, Net | 9,744,427 | 9,026,780 |
Financing Receivable, Unearned Loan Fees, Net | (7,289) | (9,138) |
Non-Covered Loans | Financial Asset, 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 10,437 | 41,639 |
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process | 10,437 | 41,639 |
Financing Receivable, Unearned Loan Fees, Net | 0 | 0 |
Non-Covered Loans | Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 4,936 | 15,763 |
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process | 4,936 | 15,763 |
Financing Receivable, Unearned Loan Fees, Net | 0 | 0 |
Non-Covered Loans | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 15,373 | 57,402 |
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process | 15,373 | 57,402 |
Financing Receivable, Unearned Loan Fees, Net | 0 | 0 |
Non-Covered Loans | Financial Asset, Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 9,721,765 | 8,960,240 |
Financing Receivable, before Allowance for Credit Loss, Fee and Loan in Process | 9,729,054 | 8,969,378 |
Financing Receivable, Unearned Loan Fees, Net | (7,289) | (9,138) |
Non-Covered Loans | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 3,859,964 | 3,396,590 |
Financing Receivable, Covered, after Allowance for Credit Loss | 3,859,964 | 3,396,590 |
Non-Covered Loans | Commercial and industrial | Financial Asset, 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 555 | 24,447 |
Non-Covered Loans | Commercial and industrial | Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 2,373 | 14,158 |
Non-Covered Loans | Commercial and industrial | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 2,928 | 38,605 |
Non-Covered Loans | Commercial and industrial | Financial Asset, Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 3,857,036 | 3,357,985 |
Non-Covered Loans | Commercial - investor owned | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 2,357,820 | 2,141,143 |
Financing Receivable, Covered, after Allowance for Credit Loss | 2,357,820 | 2,141,143 |
Non-Covered Loans | Commercial - investor owned | Financial Asset, 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 0 | 3,880 |
Non-Covered Loans | Commercial - investor owned | Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 1,135 | 0 |
Non-Covered Loans | Commercial - investor owned | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 1,135 | 3,880 |
Non-Covered Loans | Commercial - investor owned | Financial Asset, Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 2,356,685 | 2,137,263 |
Non-Covered Loans | CRE - owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 2,270,551 | 2,035,785 |
Financing Receivable, Covered, after Allowance for Credit Loss | 2,270,551 | 2,035,785 |
Non-Covered Loans | CRE - owner occupied | Financial Asset, 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 8,628 | 10,070 |
Non-Covered Loans | CRE - owner occupied | Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 164 | 289 |
Non-Covered Loans | CRE - owner occupied | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 8,792 | 10,359 |
Non-Covered Loans | CRE - owner occupied | Financial Asset, Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 2,261,759 | 2,025,426 |
Non-Covered Loans | Construction and land development | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 611,565 | 734,073 |
Financing Receivable, Covered, after Allowance for Credit Loss | 611,565 | 734,073 |
Non-Covered Loans | Construction and land development | Financial Asset, 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 9 | 24 |
Non-Covered Loans | Construction and land development | Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 1,192 | 0 |
Non-Covered Loans | Construction and land development | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 1,201 | 24 |
Non-Covered Loans | Construction and land development | Financial Asset, Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 610,364 | 734,049 |
Non-Covered Loans | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 395,537 | 454,052 |
Financing Receivable, Covered, after Allowance for Credit Loss | 395,537 | 454,052 |
Non-Covered Loans | Residential real estate | Financial Asset, 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 1,227 | 3,181 |
Non-Covered Loans | Residential real estate | Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 0 | 1,305 |
Non-Covered Loans | Residential real estate | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 1,227 | 4,486 |
Non-Covered Loans | Residential real estate | Financial Asset, Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 394,310 | 449,566 |
Non-Covered Loans | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 248,990 | 265,137 |
Financing Receivable, Covered, after Allowance for Credit Loss | 248,990 | 265,137 |
Non-Covered Loans | Other | Financial Asset, 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 18 | 37 |
Non-Covered Loans | Other | Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 72 | 11 |
Non-Covered Loans | Other | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 90 | 48 |
Non-Covered Loans | Other | Financial Asset, Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | $ 248,900 | $ 265,089 |
Portfolio Loans - Summary of Te
Portfolio Loans - Summary of Term Loans by Origination Year (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 9,737,138 | $ 9,017,642 |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year 1 | 1,456,605 | 1,230,523 |
Year 2 | 650,568 | 498,406 |
Year 3 | 348,225 | 331,113 |
Year 4 | 172,574 | 144,420 |
Year 5 | 70,890 | 131,943 |
Prior | 70,437 | 94,638 |
Financing Receivable, Converted | 8,388 | 16,472 |
Revolving Loans | 1,058,885 | 918,693 |
Total | 3,836,572 | 3,366,208 |
Commercial and industrial | Pass (1-6) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year 1 | 1,403,381 | 1,180,601 |
Year 2 | 635,275 | 477,374 |
Year 3 | 332,740 | 317,869 |
Year 4 | 172,127 | 132,851 |
Year 5 | 62,729 | 116,738 |
Prior | 66,152 | 82,846 |
Financing Receivable, Converted | 8,388 | 11,648 |
Revolving Loans | 964,592 | 854,102 |
Total | 3,645,384 | 3,174,029 |
Commercial and industrial | Special Mention (7) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year 1 | 37,048 | 35,005 |
Year 2 | 10,836 | 17,502 |
Year 3 | 13,858 | 9,404 |
Year 4 | 423 | 9,880 |
Year 5 | 7,995 | 12,217 |
Prior | 4,102 | 10,979 |
Financing Receivable, Converted | 0 | 4,037 |
Revolving Loans | 72,944 | 53,595 |
Total | 147,206 | 152,619 |
Commercial and industrial | Classified (8-9) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year 1 | 16,176 | 14,917 |
Year 2 | 4,457 | 3,530 |
Year 3 | 1,627 | 3,840 |
Year 4 | 24 | 1,689 |
Year 5 | 166 | 2,988 |
Prior | 183 | 813 |
Financing Receivable, Converted | 0 | 787 |
Revolving Loans | 21,349 | 10,996 |
Total | 43,982 | 39,560 |
Commercial Real Estate-Investor Owned Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year 1 | 687,774 | 669,987 |
Year 2 | 590,395 | 515,989 |
Year 3 | 416,369 | 379,835 |
Year 4 | 252,591 | 147,927 |
Year 5 | 115,723 | 113,704 |
Prior | 221,816 | 239,427 |
Financing Receivable, Converted | 1,506 | 3,925 |
Revolving Loans | 53,051 | 70,348 |
Total | 2,339,225 | 2,141,142 |
Commercial Real Estate-Investor Owned Portfolio Segment [Member] | Pass (1-6) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year 1 | 667,107 | 651,740 |
Year 2 | 584,644 | 476,946 |
Year 3 | 392,402 | 346,245 |
Year 4 | 240,033 | 146,107 |
Year 5 | 115,530 | 112,043 |
Prior | 202,661 | 217,808 |
Financing Receivable, Converted | 1,457 | 3,625 |
Revolving Loans | 53,051 | 68,236 |
Total | 2,256,885 | 2,022,750 |
Commercial Real Estate-Investor Owned Portfolio Segment [Member] | Special Mention (7) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year 1 | 18,844 | 16,871 |
Year 2 | 5,751 | 35,908 |
Year 3 | 23,502 | 32,755 |
Year 4 | 11,605 | 1,003 |
Year 5 | 0 | 502 |
Prior | 13,063 | 17,478 |
Financing Receivable, Converted | 0 | 300 |
Revolving Loans | 0 | 2,062 |
Total | 72,765 | 106,879 |
Commercial Real Estate-Investor Owned Portfolio Segment [Member] | Classified (8-9) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year 1 | 1,823 | 1,376 |
Year 2 | 0 | 3,135 |
Year 3 | 465 | 835 |
Year 4 | 953 | 817 |
Year 5 | 193 | 1,159 |
Prior | 6,092 | 4,141 |
Financing Receivable, Converted | 49 | 0 |
Revolving Loans | 0 | 50 |
Total | 9,575 | 11,513 |
Commercial Real Estate-Owner Occupied Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year 1 | 550,774 | 619,848 |
Year 2 | 561,063 | 437,404 |
Year 3 | 382,489 | 292,312 |
Year 4 | 245,700 | 198,000 |
Year 5 | 152,011 | 157,221 |
Prior | 291,009 | 258,696 |
Financing Receivable, Converted | 0 | 250 |
Revolving Loans | 58,108 | 48,649 |
Total | 2,241,154 | 2,012,380 |
Commercial Real Estate-Owner Occupied Portfolio Segment [Member] | Pass (1-6) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year 1 | 539,610 | 604,975 |
Year 2 | 555,690 | 423,263 |
Year 3 | 362,150 | 278,830 |
Year 4 | 232,335 | 164,210 |
Year 5 | 123,095 | 140,515 |
Prior | 270,613 | 235,973 |
Financing Receivable, Converted | 0 | 250 |
Revolving Loans | 57,308 | 48,349 |
Total | 2,140,801 | 1,896,365 |
Commercial Real Estate-Owner Occupied Portfolio Segment [Member] | Special Mention (7) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year 1 | 11,164 | 12,825 |
Year 2 | 3,801 | 13,585 |
Year 3 | 16,856 | 4,301 |
Year 4 | 4,455 | 16,774 |
Year 5 | 13,043 | 10,274 |
Prior | 9,009 | 15,764 |
Financing Receivable, Converted | 0 | 0 |
Revolving Loans | 800 | 300 |
Total | 59,128 | 73,823 |
Commercial Real Estate-Owner Occupied Portfolio Segment [Member] | Classified (8-9) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year 1 | 0 | 2,048 |
Year 2 | 1,572 | 556 |
Year 3 | 3,483 | 9,181 |
Year 4 | 8,910 | 17,016 |
Year 5 | 15,873 | 6,432 |
Prior | 11,387 | 6,959 |
Financing Receivable, Converted | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 41,225 | 42,192 |
Construction Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year 1 | 308,669 | 339,087 |
Year 2 | 232,998 | 244,744 |
Year 3 | 53,810 | 70,978 |
Year 4 | 3,069 | 37,554 |
Year 5 | 2,643 | 25,928 |
Prior | 8,607 | 9,532 |
Financing Receivable, Converted | 0 | 568 |
Revolving Loans | 1,769 | 2,992 |
Total | 611,565 | 731,383 |
Construction Real Estate Portfolio Segment [Member] | Pass (1-6) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year 1 | 290,146 | 310,140 |
Year 2 | 232,998 | 229,396 |
Year 3 | 53,129 | 70,531 |
Year 4 | 2,909 | 35,936 |
Year 5 | 2,061 | 14,860 |
Prior | 8,480 | 7,180 |
Financing Receivable, Converted | 0 | 568 |
Revolving Loans | 1,769 | 2,992 |
Total | 591,492 | 671,603 |
Construction Real Estate Portfolio Segment [Member] | Special Mention (7) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year 1 | 17,331 | 28,947 |
Year 2 | 0 | 15,348 |
Year 3 | 681 | 60 |
Year 4 | 146 | 1,199 |
Year 5 | 111 | 11,068 |
Prior | 106 | 2,330 |
Financing Receivable, Converted | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 18,375 | 58,952 |
Construction Real Estate Portfolio Segment [Member] | Classified (8-9) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year 1 | 1,192 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 387 |
Year 4 | 14 | 419 |
Year 5 | 471 | 0 |
Prior | 21 | 22 |
Financing Receivable, Converted | 0 | 0 |
Revolving Loans | 0 | 0 |
Total | 1,698 | 828 |
Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year 1 | 63,769 | 119,191 |
Year 2 | 60,983 | 66,652 |
Year 3 | 48,796 | 22,532 |
Year 4 | 21,075 | 15,998 |
Year 5 | 12,713 | 25,038 |
Prior | 90,570 | 107,169 |
Financing Receivable, Converted | 579 | 9,980 |
Revolving Loans | 96,309 | 87,225 |
Total | 394,794 | 453,785 |
Residential | Pass (1-6) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year 1 | 63,317 | 116,352 |
Year 2 | 60,910 | 66,481 |
Year 3 | 48,796 | 21,356 |
Year 4 | 20,943 | 14,841 |
Year 5 | 11,259 | 24,778 |
Prior | 88,795 | 103,840 |
Financing Receivable, Converted | 579 | 9,980 |
Revolving Loans | 96,304 | 87,146 |
Total | 390,903 | 444,774 |
Residential | Special Mention (7) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year 1 | 331 | 2,425 |
Year 2 | 0 | 2 |
Year 3 | 0 | 622 |
Year 4 | 79 | 1,157 |
Year 5 | 352 | 248 |
Prior | 781 | 1,305 |
Financing Receivable, Converted | 0 | 0 |
Revolving Loans | 0 | 79 |
Total | 1,543 | 5,838 |
Residential | Classified (8-9) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year 1 | 121 | 414 |
Year 2 | 73 | 169 |
Year 3 | 0 | 554 |
Year 4 | 53 | 0 |
Year 5 | 1,102 | 12 |
Prior | 994 | 2,024 |
Financing Receivable, Converted | 0 | 0 |
Revolving Loans | 5 | 0 |
Total | 2,348 | 3,173 |
Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year 1 | 38,753 | 108,209 |
Year 2 | 88,613 | 68,806 |
Year 3 | 56,252 | 22,694 |
Year 4 | 10,560 | 23,159 |
Year 5 | 20,511 | 6,924 |
Prior | 10,807 | 16,288 |
Financing Receivable, Converted | 3 | 1,500 |
Revolving Loans | 9,540 | 9,169 |
Total | 235,039 | 256,749 |
Other | Pass (1-6) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year 1 | 38,753 | 108,209 |
Year 2 | 88,613 | 68,806 |
Year 3 | 56,252 | 22,684 |
Year 4 | 10,556 | 23,145 |
Year 5 | 20,508 | 6,924 |
Prior | 10,796 | 13,832 |
Financing Receivable, Converted | 0 | 1,500 |
Revolving Loans | 9,536 | 9,166 |
Total | 235,014 | 254,266 |
Other | Special Mention (7) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 0 |
Year 4 | 0 | 4 |
Year 5 | 0 | 0 |
Prior | 0 | 2,440 |
Financing Receivable, Converted | 0 | 0 |
Revolving Loans | 0 | 1 |
Total | 0 | 2,445 |
Other | Classified (8-9) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year 1 | 0 | 0 |
Year 2 | 0 | 0 |
Year 3 | 0 | 10 |
Year 4 | 4 | 10 |
Year 5 | 3 | 0 |
Prior | 11 | 16 |
Financing Receivable, Converted | 3 | 0 |
Revolving Loans | 4 | 2 |
Total | 25 | 38 |
Loans Classified By Risk Category | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year 1 | 3,106,344 | 3,086,845 |
Year 2 | 2,184,620 | 1,832,001 |
Year 3 | 1,305,941 | 1,119,464 |
Year 4 | 705,569 | 567,058 |
Year 5 | 374,491 | 460,758 |
Prior | 693,246 | 725,750 |
Financing Receivable, Converted | 10,476 | 32,695 |
Revolving Loans | 1,277,662 | 1,137,076 |
Total | 9,658,349 | 8,961,647 |
Loans Classified by Performing Status | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 78,789 | $ 55,995 |
Portfolio Loans - Credit Qualit
Portfolio Loans - Credit Quality Based on Aging Status (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | $ 9,737,138 | $ 9,017,642 |
Financing Receivable, after Allowance for Credit Loss | 78,789 | 55,995 |
Non-Covered Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 9,744,427 | 9,026,780 |
Non-Covered Loans | Commercial - investor owned | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 2,357,820 | 2,141,143 |
Non-Covered Loans | Commercial - investor owned | Pass (1-6) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 18,595 | 1 |
Non-Covered Loans | Commercial - investor owned | Special Mention (7) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 0 | 0 |
Non-Covered Loans | Commercial - investor owned | Classified (8-9) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 18,595 | 1 |
Non-Covered Loans | Commercial - owner occupied | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 2,270,551 | 2,035,785 |
Non-Covered Loans | Commercial - owner occupied | Pass (1-6) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 29,397 | 23,405 |
Non-Covered Loans | Commercial - owner occupied | Special Mention (7) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 0 | 0 |
Non-Covered Loans | Commercial - owner occupied | Classified (8-9) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 29,397 | 23,405 |
Non-Covered Loans | Construction and land development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 611,565 | 734,073 |
Non-Covered Loans | Construction and land development | Pass (1-6) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 0 | 2,690 |
Non-Covered Loans | Construction and land development | Special Mention (7) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 0 | 0 |
Non-Covered Loans | Construction and land development | Classified (8-9) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 0 | 2,690 |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 3,836,572 | 3,366,208 |
Financing Receivable, after Allowance for Credit Loss | 23,310 | 26,167 |
Commercial and industrial | Pass (1-6) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 3,645,384 | 3,174,029 |
Commercial and industrial | Special Mention (7) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 147,206 | 152,619 |
Commercial and industrial | Classified (8-9) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 43,982 | 39,560 |
Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 394,794 | 453,785 |
Financing Receivable, after Allowance for Credit Loss | 743 | 267 |
Residential | Pass (1-6) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 390,903 | 444,774 |
Residential | Special Mention (7) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 1,543 | 5,838 |
Residential | Classified (8-9) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 2,348 | 3,173 |
Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 235,039 | 256,749 |
Financing Receivable, after Allowance for Credit Loss | 6,744 | 3,465 |
Other | Pass (1-6) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 235,014 | 254,266 |
Other | Special Mention (7) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 0 | 2,445 |
Other | Classified (8-9) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 25 | 38 |
Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, after Allowance for Credit Loss | 78,647 | 55,982 |
Performing | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, after Allowance for Credit Loss | 23,240 | 26,166 |
Performing | Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, after Allowance for Credit Loss | 743 | 267 |
Performing | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, after Allowance for Credit Loss | 6,672 | 3,453 |
Non Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, after Allowance for Credit Loss | 142 | 13 |
Non Performing | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, after Allowance for Credit Loss | 70 | 1 |
Non Performing | Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, after Allowance for Credit Loss | 0 | 0 |
Non Performing | Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, after Allowance for Credit Loss | $ 72 | $ 12 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 5,352 | ||
Operating Lease, Right-of-Use Asset | 17,355 | $ 13,483 | |
Operating Lease, Cost | 5,868 | 4,877 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 9,512 | 5,658 | $ 1,623 |
Short-term Lease, Cost | 814 | 833 | |
Lease, Cost | 6,682 | 5,710 | |
Operating Lease, Liability | $ 18,038 | $ 14,865 | |
Operating Lease, Weighted Average Remaining Lease Term | 5 years | 4 years | |
Operating Lease, Weighted Average Discount Rate, Percent | 2.50% | 2% | |
Lessee, Operating Lease, Liability, Payments, Due Year Two | $ 4,402 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 3,096 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 3,148 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 1,891 | ||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 1,182 | ||
Lessee, Operating Lease, Liability, Payments, Due | 19,071 | ||
Present Value Adjustment | 1,033 | ||
Operating Lease, Lease Income, Lease Payments | 1,900 | $ 1,900 | |
Operating Lease, Payments | $ 5,800 | $ 5,200 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities | |
Operating Lease, Impairment Loss | $ 1,100 | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Renewal Term | 5 years |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Jan. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||||
Derivative, Net Liability Position, Aggregate Fair Value | $ 20,700 | |||
Summary of Derivative Instruments [Abstract] | ||||
Securities Sold under Agreements to Repurchase, Gross | 270,773 | $ 331,006 | ||
Securities Sold under Agreements to Repurchase, Asset | 0 | 0 | ||
Securities sold under agreement to repurchase | 270,773 | 331,006 | ||
Securities Sold under Agreements to Repurchase, Collateral, Right to Reclaim Securities | 0 | 0 | ||
Securities Sold under Agreements to Repurchase, Collateral, Right to Reclaim Cash | 270,773 | 331,006 | ||
Securities Sold under Agreements to Repurchase, Amount Offset Against Collateral | 0 | 0 | ||
Interest rate swap contracts | ||||
Derivative [Line Items] | ||||
Pledged cash as collateral in connection with interest rate swap agreements | 0 | 14,031 | ||
Summary of Derivative Instruments [Abstract] | ||||
Derivative Asset, Fair Value, Gross Asset | 22,958 | 12,869 | ||
Liability derivatives (other liabilities), fair value | 21,533 | 15,794 | ||
Derivative Asset, Fair Value, Gross Liability | 0 | 0 | ||
Derivative financial instruments | 22,958 | 12,869 | ||
Derivative, Collateral, Obligation to Return Securities | 0 | 1,033 | ||
Derivative, Collateral, Obligation to Return Cash | 9,010 | 0 | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 13,948 | 11,836 | ||
Derivative Liability, Fair Value, Gross Asset | 0 | 0 | ||
Derivative financial instruments | 21,533 | 15,794 | ||
Derivative, Collateral, Right to Reclaim Securities | 0 | 1,033 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 21,533 | 730 | ||
Interest rate collar | ||||
Derivative [Line Items] | ||||
Pledged cash as collateral in connection with interest rate swap agreements | 0 | |||
Summary of Derivative Instruments [Abstract] | ||||
Liability derivatives (other liabilities), fair value | 48 | |||
Derivative Liability, Fair Value, Gross Asset | 0 | |||
Derivative financial instruments | 48 | |||
Derivative, Collateral, Right to Reclaim Securities | 0 | |||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 48 | |||
Designated as Hedging Instrument [Member] | ||||
Summary of Derivative Instruments [Abstract] | ||||
Derivative Asset, Fair Value, Gross Asset | 2,348 | 0 | ||
Liability derivatives (other liabilities), fair value | 969 | 2,911 | ||
Designated as Hedging Instrument [Member] | Other Assets | Interest Rate Contract [Member] | ||||
Derivative [Line Items] | ||||
Notional | 161,962 | 61,962 | ||
Summary of Derivative Instruments [Abstract] | ||||
Derivative Asset, Fair Value, Gross Asset | 2,348 | 0 | ||
Designated as Hedging Instrument [Member] | Other Assets | Interest rate collar | ||||
Derivative [Line Items] | ||||
Notional | 100,000 | 0 | ||
Summary of Derivative Instruments [Abstract] | ||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | ||
Designated as Hedging Instrument [Member] | Other Liabilities | Interest Rate Contract [Member] | ||||
Summary of Derivative Instruments [Abstract] | ||||
Liability derivatives (other liabilities), fair value | 921 | 2,911 | ||
Designated as Hedging Instrument [Member] | Other Liabilities | Interest rate collar | ||||
Summary of Derivative Instruments [Abstract] | ||||
Liability derivatives (other liabilities), fair value | 48 | 0 | ||
Non-designated hedging instruments | Other Assets | Interest Rate Contract [Member] | ||||
Derivative [Line Items] | ||||
Notional | 687,902 | 918,698 | ||
Summary of Derivative Instruments [Abstract] | ||||
Derivative Asset, Fair Value, Gross Asset | 20,610 | 12,869 | ||
Non-designated hedging instruments | Other Liabilities | Interest Rate Contract [Member] | ||||
Summary of Derivative Instruments [Abstract] | ||||
Liability derivatives (other liabilities), fair value | 20,612 | $ 12,883 | ||
Cash Flow Hedging | Subordinated debentures and notes | ||||
Derivative [Line Items] | ||||
Notional | $ 62,000 | |||
Derivative, Variable Interest Rate | 2.62% | |||
Cash Flow Hedging | Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Notional | $ 100,000 | |||
Fixed Rate | 6.63% | |||
Cash Flow Hedging | Designated as Hedging Instrument [Member] | Subsequent Event | ||||
Derivative [Line Items] | ||||
Notional | $ 50,000 | |||
Fixed Rate | 6.56% | |||
Cash Flow Hedging | Forecast [Member] | Interest Expense | ||||
Summary of Derivative Instruments [Abstract] | ||||
Decrease to interest expense and decrease to interest income | $ 1,500 | |||
Cash Flow Hedging | Forecast [Member] | Interest Income | ||||
Summary of Derivative Instruments [Abstract] | ||||
Decrease to interest expense and decrease to interest income | $ 1,300 | |||
Prime Based Interest Rate Collar | Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Notional | $ 100,000 | |||
Prime Based Interest Rate Collar | Designated as Hedging Instrument [Member] | Minimum | ||||
Derivative [Line Items] | ||||
Derivative, Variable Interest Rate | 8.14% | |||
Prime Based Interest Rate Collar | Designated as Hedging Instrument [Member] | Maximum | ||||
Derivative [Line Items] | ||||
Derivative, Variable Interest Rate | 5.25% |
Derivative Financial Instrume_4
Derivative Financial Instruments - Cash Flow Hedges (Details) - Cash Flow Hedging $ in Thousands | Dec. 31, 2022 USD ($) |
Cash Flow Hedge Due March 15, 2024 | |
Derivative [Line Items] | |
Notional | $ 15,465 |
Fixed Rate | 2.60% |
Cash Flow Hedge Due March 30, 2024 | |
Derivative [Line Items] | |
Notional | $ 14,433 |
Fixed Rate | 2.60% |
Cash Flow Hedge Due March 15, 2026 | |
Derivative [Line Items] | |
Notional | $ 18,558 |
Fixed Rate | 2.64% |
Cash Flow Hedge Due March 17, 2026 | |
Derivative [Line Items] | |
Notional | $ 13,506 |
Fixed Rate | 2.64% |
Fixed Assets - Summary of Fixed
Fixed Assets - Summary of Fixed Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 12,362 | $ 12,849 |
Buildings and leasehold improvements | 50,243 | 52,012 |
Furniture, fixtures and equipment | 19,569 | 18,821 |
Fixed assets, gross | 82,174 | 83,682 |
Less accumulated depreciation and amortization | 39,189 | 35,767 |
Fixed assets, net | $ 42,985 | $ 47,915 |
Fixed Assets - Narrative (Detai
Fixed Assets - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) branch | Dec. 31, 2020 USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 5,600 | $ 6,100 | $ 6,200 |
Asset impairment | $ 0 | $ 3,441 | $ 0 |
CALIFORNIA | |||
Property, Plant and Equipment [Line Items] | |||
Number Of Branches Closed | branch | 3 | ||
Asset impairment | $ 400 | ||
St. Louis | |||
Property, Plant and Equipment [Line Items] | |||
Number Of Branches Closed | branch | 2 | ||
Asset impairment | $ 3,400 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill | $ 365,164 | $ 365,164 | $ 260,567 | |
Amortization of intangible assets | 5,367 | 5,690 | $ 5,673 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Core deposit intangible, net, end of year | 16,919 | |||
Goodwill | 365,164 | 365,164 | 260,567 | |
Goodwill Acquired Through Acquisition | $ 0 | 104,597 | ||
Core Deposits [Member] | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Finite-lived intangible assets useful life | 10 years | 10 years | ||
Finite-Lived Intangible Assets [Line Items] | ||||
Acquired Finite-lived Intangible Asset, Residual Value | $ 0 | 4,892 | ||
Amortization | (5,367) | (5,690) | ||
Core deposit intangible, net, end of year | $ 16,919 | $ 22,286 | $ 23,084 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Expected Amortization Schedule for the Core Deposit Intangible (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2021 | $ 4,601 |
2022 | 3,834 |
2023 | 3,068 |
2024 | 2,301 |
2025 | 1,535 |
After 2027 | 1,580 |
Core deposit intangible, net, end of year | $ 16,919 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Brokered | ||
Less than 1 year | $ 61,173 | |
Greater than 1 year and less than 2 years | 37,869 | |
Greater than 2 years and less than 3 years | 19,926 | |
Greater than 3 years and less than 4 years | 0 | |
Greater than 4 years and less than 5 years | 0 | |
Greater than 5 years | 0 | |
Brokered | 118,968 | $ 128,970 |
Customer | ||
Less than 1 year | 316,364 | |
Greater than 1 year and less than 2 years | 72,172 | |
Greater than 2 years and less than 3 years | 9,408 | |
Greater than 3 years and less than 4 years | 7,275 | |
Greater than 4 years and less than 5 years | 2,037 | |
Greater than 5 years | 4,484 | |
Other | 411,740 | 479,323 |
Total | ||
Less than 1 year | 377,537 | |
Greater than 1 year and less than 2 years | 110,041 | |
Greater than 2 years and less than 3 years | 29,334 | |
Greater than 3 years and less than 4 years | 7,275 | |
Greater than 4 years and less than 5 years | 2,037 | |
Greater than 5 years | 4,484 | |
Total Time Deposits | 530,708 | |
Time Deposits, $250,000 or More | 124,600 | |
Deposits from related parties | 1,100 | |
CDARS Deposits | 10,600 | |
ICS Deposits | 195,100 | |
Deposit Liabilities Reclassified as Loans Receivable | $ 3,200 | $ 1,300 |
Subordinated Debentures (Detail
Subordinated Debentures (Details) $ in Thousands | 12 Months Ended | |||
Nov. 01, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Nov. 01, 2016 USD ($) | |
Subordinated Borrowing [Line Items] | ||||
Number of Unconsolidated Statutory Business Trusts | 13 | |||
Investments trust preferred securities | $ 2,900 | |||
Subordinated debentures and notes | $ 155,433 | $ 154,899 | ||
5.75% | ||||
Subordinated Borrowing [Line Items] | ||||
Fixed interest rate | 5.75% | |||
Senior Subordinated Notes [Member] | ||||
Subordinated Borrowing [Line Items] | ||||
Senior Subordinated Notes | $ 50,000 | |||
Redeemed value | $ 50,000 | |||
Loss on redemption | $ 700 | |||
Trust preferred securities [Member] | ||||
Subordinated Borrowing [Line Items] | ||||
Subordinated debentures and notes | $ 92,837 | 92,553 | ||
Trust preferred securities [Member] | EFSC Clayco Statutory Trust I | ||||
Subordinated Borrowing [Line Items] | ||||
Subordinated debentures and notes | $ 3,196 | 3,196 | ||
Maturity Date | Dec. 17, 2033 | |||
Initial Call Date (1) | Dec. 17, 2008 | |||
Floating interest rate | 0.0285 | |||
Trust preferred securities [Member] | EFSC Capital Trust II | ||||
Subordinated Borrowing [Line Items] | ||||
Subordinated debentures and notes | $ 5,155 | 5,155 | ||
Maturity Date | Jun. 17, 2034 | |||
Initial Call Date (1) | Jun. 17, 2009 | |||
Floating interest rate | 0.0265 | |||
Trust preferred securities [Member] | EFSC Statutory Trust III | ||||
Subordinated Borrowing [Line Items] | ||||
Subordinated debentures and notes | $ 11,341 | 11,341 | ||
Maturity Date | Dec. 15, 2034 | |||
Initial Call Date (1) | Dec. 15, 2009 | |||
Floating interest rate | 0.0197 | |||
Trust preferred securities [Member] | EFSC Clayco Statutory Trust II | ||||
Subordinated Borrowing [Line Items] | ||||
Subordinated debentures and notes | $ 4,124 | 4,124 | ||
Maturity Date | Sep. 15, 2035 | |||
Initial Call Date (1) | Sep. 15, 2010 | |||
Floating interest rate | 0.0183 | |||
Trust preferred securities [Member] | EFSC Statutory Trust IV | ||||
Subordinated Borrowing [Line Items] | ||||
Subordinated debentures and notes | $ 10,310 | 10,310 | ||
Maturity Date | Dec. 15, 2035 | |||
Initial Call Date (1) | Dec. 15, 2010 | |||
Floating interest rate | 0.0144 | |||
Trust preferred securities [Member] | EFSC Statutory Trust V | ||||
Subordinated Borrowing [Line Items] | ||||
Subordinated debentures and notes | $ 4,124 | 4,124 | ||
Maturity Date | Sep. 15, 2036 | |||
Initial Call Date (1) | Sep. 15, 2011 | |||
Floating interest rate | 0.0160 | |||
Trust preferred securities [Member] | EFSC Capital Trust VI | ||||
Subordinated Borrowing [Line Items] | ||||
Subordinated debentures and notes | $ 14,433 | 14,433 | ||
Maturity Date | Mar. 30, 2037 | |||
Initial Call Date (1) | Mar. 30, 2012 | |||
Floating interest rate | 0.0160 | |||
Trust preferred securities [Member] | EFSC Capital Trust VII | ||||
Subordinated Borrowing [Line Items] | ||||
Subordinated debentures and notes | $ 4,124 | 4,124 | ||
Maturity Date | Dec. 15, 2037 | |||
Initial Call Date (1) | Dec. 15, 2012 | |||
Floating interest rate | 0.0225 | |||
Trust preferred securities [Member] | JEFFCO Stat Trust I [Member] | ||||
Subordinated Borrowing [Line Items] | ||||
Fixed interest rate | 10.20% | |||
Subordinated debentures and notes | $ 7,732 | 7,732 | ||
Maturity Date | Feb. 22, 2031 | |||
Initial Call Date (1) | Feb. 22, 2011 | |||
Trust preferred securities [Member] | JEFFCO Stat Trust II [Member] | ||||
Subordinated Borrowing [Line Items] | ||||
Fixed interest rate | 2.75% | |||
Subordinated debentures and notes | $ 4,550 | 4,496 | ||
Maturity Date | Mar. 17, 2034 | |||
Initial Call Date (1) | Mar. 17, 2009 | |||
Trust preferred securities [Member] | Trinity Capital Trust III [Member] | ||||
Subordinated Borrowing [Line Items] | ||||
Fixed interest rate | 2.70% | |||
Subordinated debentures and notes | $ 5,406 | 5,339 | ||
Maturity Date | Sep. 08, 2034 | |||
Initial Call Date (1) | Sep. 08, 2009 | |||
Trust preferred securities [Member] | Trinity Capital Trust IV [Member] | ||||
Subordinated Borrowing [Line Items] | ||||
Fixed interest rate | 6.88% | |||
Subordinated debentures and notes | $ 10,310 | 10,310 | ||
Maturity Date | Nov. 23, 2035 | |||
Initial Call Date (1) | Aug. 23, 2010 | |||
Trust preferred securities [Member] | Trinity Capital Trust V [Member] | ||||
Subordinated Borrowing [Line Items] | ||||
Fixed interest rate | 1.65% | |||
Subordinated debentures and notes | $ 8,032 | 7,869 | ||
Maturity Date | Dec. 15, 2036 | |||
Initial Call Date (1) | Sep. 15, 2011 | |||
Senior Subordinated Notes [Member] | ||||
Subordinated Borrowing [Line Items] | ||||
Fixed interest rate | 4.75% | |||
Debt issuance costs | $ (654) | (904) | ||
Subordinated notes, net of issuance costs | $ 62,596 | 62,346 | ||
Senior Subordinated Notes [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||
Subordinated Borrowing [Line Items] | ||||
Floating interest rate | 0.05660 | |||
Senior Subordinated Notes [Member] | 5.75% | ||||
Subordinated Borrowing [Line Items] | ||||
Subordinated debentures and notes | $ 63,250 | $ 63,250 | ||
Maturity Date | Jun. 01, 2030 | |||
Initial Call Date (1) | Jun. 01, 2025 |
Federal Home Loan Bank Advanc_3
Federal Home Loan Bank Advances (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Aug. 31, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | |
Federal Home Loan Bank, Advances, Branch of FHLB [Line Items] | |||
Advances with one-week maturity | $ 50,000 | ||
Advances in overnight funds | 50,000 | ||
Convertible Debt | $ 50,000 | ||
Convertible advances weighted average interest rate | 1.56% | ||
Weighted Rate | |||
Federal Home Loan Bank, Advances, Maturities Summary, One to Five Years | $ 100,000 | $ 50,000 | |
Federal Home Loan Bank Advances, Maturities Summary, Average Interest Rate of Amounts Due in One to Five Years of Balance Sheet Date | 4.57% | 1.56% | |
Des Moines | |||
Federal Home Loan Bank, Advances, Branch of FHLB [Line Items] | |||
Carrying value of the loans pledged | $ 1,400,000 | $ 1,400,000 | |
Availability under the secured line of credit | $ 752,100 |
Other Borrowings and Notes Pa_3
Other Borrowings and Notes Payable (Details) - USD ($) | 2 Months Ended | 12 Months Ended | |||
Feb. 28, 2022 | Feb. 28, 2019 | Feb. 29, 2016 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||||
Securities sold under agreement to repurchase | $ 270,773,000 | $ 331,006,000 | |||
Other borrowings | 324,119,000 | 353,863,000 | |||
Loans Payable | 17,143,000 | 22,857,000 | |||
Unsecured Term Loan Agreement ("Term Loan") | |||||
Debt Instrument [Line Items] | |||||
Term (in years) | 5 years | ||||
Unsecured term loan, face amount | $ 40,000,000 | ||||
Unsecured Term Loan Agreement ("Term Loan") | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread | 1.25% | ||||
Unsecured Term Loan Agreement ("Term Loan") | Secured Overnight Financing Rate (SOFR) | |||||
Debt Instrument [Line Items] | |||||
Basis spread | 1.36% | ||||
Other Borrowings | |||||
Debt Instrument [Line Items] | |||||
Average balance during the year | 211,039,000 | 225,895,000 | |||
Maximum balance outstanding at any month-end | $ 284,269,000 | $ 331,006,000 | |||
Average interest rate during the year | 0.24% | 0.10% | |||
Average interest rate at December 31 | 1.44% | 0.06% | |||
Other Borrowings | New Market Tax Credit Investments | |||||
Debt Instrument [Line Items] | |||||
Other borrowings | $ 36,200,000 | ||||
Interest rate | 1% | ||||
Term of interest (in years) | 7 years | ||||
Other Borrowings | New Market Tax Credit Investments | Minimum | |||||
Debt Instrument [Line Items] | |||||
Term (in years) | 26 years | ||||
Other Borrowings | New Market Tax Credit Investments | Maximum | |||||
Debt Instrument [Line Items] | |||||
Term (in years) | 31 years | ||||
Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Remaining borrowing capacity | $ 1,400,000,000 | ||||
Aggregate of pledge secured by certain eligible loans | 1,600,000,000 | ||||
Amount withdrawn | 0 | ||||
Line of Credit | Senior Unsecured Revolving Credit Agreement ("Revolving Agreement") | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Term (in years) | 1 year | 1 year | |||
Line of Credit, Current | $ 25,000,000 | ||||
Line of Credit | Senior Unsecured Revolving Credit Agreement ("Revolving Agreement") | Revolving Credit Facility | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread | 1.25% | ||||
Line of Credit | Senior Unsecured Revolving Credit Agreement ("Revolving Agreement") | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | |||||
Debt Instrument [Line Items] | |||||
Basis spread | 1.36% | ||||
Unsecured Term Loan | |||||
Debt Instrument [Line Items] | |||||
Average balance during the year | 20,681,000 | $ 26,427,000 | |||
Maximum balance outstanding at any month-end | $ 22,857,000 | $ 28,571,000 | |||
Average interest rate during the year | 2.94% | 1.40% | |||
Average interest rate at December 31 | 5.48% | 1.38% |
Regulatory Matters (Details)
Regulatory Matters (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Enterprise Financial Services Corp [Member] | ||
Regulatory Assets [Line Items] | ||
Tier One Common Equity Capital to Risk Weighted Assets | 11.10% | 11.30% |
Actual, Ratio | 0.126 | 0.130 |
Actual, Ratio | 0.142 | 0.147 |
Actual, Ratio | 0.109 | 0.097 |
Enterprise Bank and Trust [Member] | ||
Regulatory Assets [Line Items] | ||
Tier One Common Equity Capital to Risk Weighted Assets | 12.10% | 12.50% |
Tier One Common Equity Capital Required to be Well Capitalized to Risk Weighted Assets | 6.50% | |
Tier One Common Equity Capital CCB Minimum | 7% | |
Actual, Ratio | 0.121 | 0.125 |
To Be Well Capitalized Under Applicable Action Provisions, Ratio | 0.080 | |
Tier One Risk Based Capital CCB Minimum | 8.50% | |
Actual, Ratio | 0.131 | 0.135 |
To Be Well Capitalized Under Applicable Action Provisions, Ratio | 0.100 | |
Capital to Risk Weighted Assets CCB Minimum | 10.50% | |
Actual, Ratio | 0.105 | 0.093 |
To Be Well Capitalized Under Applicable Action Provisions, Ratio | 0.050 | |
Tier One Leverage Capital to Average Assets CCB Minimum | 4% |
Compensation Plans - Narrative
Compensation Plans - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 31, 2022 | Apr. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 2,000,000 | 2,000,000 | 2,000,000 | |||
Share-based compensation expense | $ 8,006 | $ 6,017 | $ 4,178 | |||
Tax benefit from compensation expense | $ 100 | (100) | 200 | |||
Award vesting period | 3 years | |||||
Total unrecognized compensation cost for nonvested stock units | $ 13,900 | |||||
Employee minimum age to participate in plan | 21 years | |||||
Company contributions, amount charged to expense | $ 5,800 | $ 4,900 | 3,800 | |||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | |||
Preferred stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | |||
Preferred stock, shares outstanding | 75,000 | 75,000 | 75,000 | |||
Expected years to recognize unearned compensation | 2 years | |||||
Proceeds from issuance of preferred stock, net | $ 72,000 | $ 0 | $ 71,988 | 0 | ||
Depositary Shares, Issued And Sold | 3,000,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 500 | 900 | 2,800 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 100 | |||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 916 | 396 | 0 | |||
Contractual term | 10 years | |||||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 4,156 | 3,109 | 2,613 | |||
Total unrecognized compensation cost for nonvested stock units | $ 4,622 | $ 8,507 | $ 4,622 | $ 3,899 | ||
Number of shares issued | 180,400 | |||||
Expected years to recognize unearned compensation | 2 years | 1 year 10 months 24 days | 1 year 10 months 24 days | |||
Performance Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 2,391 | $ 1,777 | $ 1,097 | |||
Number of shares issued | 86,978 | |||||
Employee Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 85% | |||||
Share-based compensation expense | $ 543 | $ 735 | $ 468 | |||
Number of shares authorized | 750,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 55,123 | 64,826 | 58,195 | |||
Share-Based Compensation Arrangement By Share-Based Payment Award, Shares Available Under Employee Stock Purchase Plan | 515,941 | |||||
Stock Options and SSARs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement By Share-based Payment Award, Exercises in Period | 1,445 | 0 | 0 | |||
Minimum | Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Minimum | Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Maximum | Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 5 years | |||||
Maximum | Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 5 years | |||||
Stock Plan for Non-Management Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available for grant | 73,618 | 55,878 | 73,618 | |||
Number of shares authorized | 200,000 | |||||
Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant, Excluding Deferred Shares | 35,909 | |||||
Share Based Compensation Arrangement by Shar Based Payment Award Number of Shares Available for Grant, Deferred Shares | 19,969 | |||||
Deferred Compensation Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 25% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate, Bonus | 100% | |||||
Deferred Compensation Liability, Current and Noncurrent | $ 3,500 |
Compensation Plans - Common Sto
Compensation Plans - Common Stock (Details) - shares | Dec. 31, 2022 | Dec. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common Stock, Capital Shares Reserved for Future Issuance | 1,615,578 | 1,778,836 |
2018 Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common Stock, Capital Shares Reserved for Future Issuance | 342,157 | 670,326 |
Stock Plan for Non-Management Directors | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant | 55,878 | 73,618 |
Employee Stock Purchase Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common Stock, Capital Shares Reserved for Future Issuance | 515,941 | 571,064 |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 209,702 | 169,244 |
Common Stock, Capital Shares Reserved for Future Issuance | 209,702 | 169,244 |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 269,868 | 181,657 |
Stock Options and SSARs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement By Share-based Payment Award, Outstanding, Number | 222,032 | 112,927 |
Compensation Plans - Changes in
Compensation Plans - Changes in OCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Shareholders' Equity, Beginning Balance | $ 1,529,116 | $ 1,078,975 | $ 867,185 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (149,109) | (18,343) | 19,371 |
Debt Securities, Held-to-maturity, Transfer, Derivative Hedge, Gain (Loss) | 0 | 0 | |
Shareholders' Equity, Ending Balance | 1,522,263 | 1,529,116 | 1,078,975 |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Shareholders' Equity, Beginning Balance | 18,777 | 37,120 | 17,749 |
Shareholders' Equity, Ending Balance | (130,332) | 18,777 | 37,120 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Shareholders' Equity, Beginning Balance | 5,271 | 22,320 | 14,977 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (149,623) | (17,049) | 23,627 |
Debt Securities, Held-to-maturity, Transfer, Derivative Hedge, Gain (Loss) | (197) | (16,284) | |
Shareholders' Equity, Ending Balance | (144,549) | 5,271 | 22,320 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Shareholders' Equity, Beginning Balance | (2,178) | (4,508) | (2,162) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 3,210 | 2,330 | (2,346) |
Debt Securities, Held-to-maturity, Transfer, Derivative Hedge, Gain (Loss) | 0 | 0 | |
Shareholders' Equity, Ending Balance | 1,032 | (2,178) | (4,508) |
AOCI, Accumulated Gain (Loss), Held To Maturity Securities, Parent | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Shareholders' Equity, Beginning Balance | 15,684 | 19,308 | 4,934 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (2,696) | (3,624) | (1,910) |
Debt Securities, Held-to-maturity, Transfer, Derivative Hedge, Gain (Loss) | 197 | 16,284 | |
Shareholders' Equity, Ending Balance | $ 13,185 | $ 15,684 | $ 19,308 |
Compensation Plans - Components
Compensation Plans - Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |||
Other comprehensive income (loss), securities, available-for-sale, unrealized holding gain (loss) arising during period, before tax | $ (200,030) | $ (22,701) | $ 31,798 |
Unrealized (loss)/gain on investment securities available for sale arising during the period, tax | (50,407) | (5,652) | 7,854 |
Other comprehensive income (loss), securities, available-for-sale, unrealized holding gain (loss) arising during period, net of tax | (149,623) | (17,049) | 23,944 |
Reclassification adjustment for realized gains on sale of securities available for sale included in net income, before tax | 0 | 0 | (421) |
Reclassification adjustment for realized gains on sale of securities available for sale included in net income, tax | 0 | 0 | (104) |
Reclassification adjustment for realized gains on sale of securities available for sale included in net income, net of tax | 0 | 0 | (317) |
Other Comprehensive Income (Loss), Reclassification of (gain) loss on held to maturity securities, before of tax | (3,605) | (4,672) | (2,537) |
Other Comprehensive Income (Loss), Reclassification of (gain) loss on held to maturity securities, tax | (909) | (1,048) | (627) |
Other Comprehensive Income (Loss), Reclassification of (gain) loss on held to maturity securities, net of tax | (2,696) | (3,624) | (1,910) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 3,741 | 1,533 | (7,898) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 943 | 372 | (1,951) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 2,798 | 1,161 | (5,947) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Cash Flow Hedges, before Tax | 551 | 1,543 | 4,782 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Cash Flow Hedges, Tax | 139 | 374 | 1,181 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Cash Flow Hedges, after Tax | 412 | 1,169 | 3,601 |
Other comprehensive income (loss) before tax | (199,343) | (24,297) | 25,724 |
Other comprehensive income (loss) tax | (50,234) | (5,954) | 6,353 |
Other comprehensive income (loss) | $ (149,109) | $ (18,343) | 19,371 |
Termination fee | $ 3,200 |
Compensation Plans - Reclassifi
Compensation Plans - Reclassifications Out of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Noninterest income | $ 59,162 | $ 67,743 | $ 54,503 |
Net interest income | 473,903 | 360,194 | 270,001 |
Income before income tax expense | 259,460 | 168,633 | 91,947 |
Income tax expense | 56,417 | 35,578 | 17,563 |
Net income | $ 203,043 | $ 133,055 | $ 74,384 |
Compensation Plans - Schedule o
Compensation Plans - Schedule of Various Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Expense | $ 8,006 | $ 6,017 | $ 4,178 |
Total unrecognized compensation cost for nonvested stock units | $ 13,900 | ||
Expected years to recognize unearned compensation | 2 years | ||
Weighted average fair value (usd per share) | $ 51,910 | $ 47,160 | $ 38,090 |
Employee Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Expense | $ 543 | $ 735 | $ 468 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Expense | 4,156 | 3,109 | 2,613 |
Total fair value at vesting date | 3,888 | 2,855 | 1,702 |
Total unrecognized compensation cost for nonvested stock units | $ 8,507 | $ 4,622 | $ 3,899 |
Expected years to recognize unearned compensation | 2 years | 1 year 10 months 24 days | 1 year 10 months 24 days |
Stock Plan for Non-Management Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares issued | 23,343,000 | 12,998,000 | 15,901,000 |
Weighted average fair value (usd per share) | $ 42.17 | $ 46.05 | $ 30.28 |
Compensation Plans - Weighted-A
Compensation Plans - Weighted-Average Assumptions (Details) - Stock Options | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk Free Interest Rate | 1.95% |
Expected Dividend Yield | 1.74% |
Expected Volatility | 34.54% |
Expected Term (years) | 6 years 2 months 12 days |
Compensation Plans - Schedule_2
Compensation Plans - Schedule of Employee Stock Options and SSARs Activity (Details) - Stock Options and SSARs - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shares | |||
Outstanding at beginning of period (in shares) | 112,927 | ||
Granted (in shares) | 120,707 | ||
Exercised (in shares) | (1,445) | 0 | 0 |
Forfeited (in shares) | (10,157) | ||
Outstanding at end of period (in shares) | 222,032 | 112,927 | |
Exercisable (in shares) | 18,196 | ||
Weighted Average Exercise Price | |||
Outstanding at beginning of period (usd per share) | $ 43.80 | ||
Granted (usd per share) | 48.24 | ||
Exercised (usd per share) | 43.81 | ||
Forfeited (usd per share) | 45.81 | ||
Outstanding at end of period (usd per share) | 46.12 | $ 43.80 | |
Exercisable (usd per share) | $ 43.80 | ||
Additional Disclosures | |||
Outstanding, weighted average remaining contractual term | 8 years 8 months 12 days | ||
Exercisable, weighted average remaining contractual term | 8 years 2 months 12 days |
Compensation Plans - Summary of
Compensation Plans - Summary of Restricted Stock Units Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted Average Grant Date Fair Value | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 13,900 | ||
Expected years to recognize unearned compensation | 2 years | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 3,888 | $ 2,855 | $ 1,702 |
Shares | |||
Outstanding, beginning of period (in shares) | 181,657 | ||
Granted (in shares) | 180,400 | ||
Vested (in shares) | 79,617 | ||
Forfeited (in shares) | 12,572 | ||
Outstanding, end of period (in shares) | 269,868 | 181,657 | |
Weighted Average Grant Date Fair Value | |||
Outstanding, beginning of period (usd per share) | $ 42.71 | ||
Granted (usd per share) | 47.96 | ||
Vested (usd per share) | 43.02 | ||
Forfeited (usd per share) | 34.99 | ||
Outstanding, end of period (usd per share) | $ 46.49 | $ 42.71 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 8,507 | $ 4,622 | $ 3,899 |
Expected years to recognize unearned compensation | 2 years | 1 year 10 months 24 days | 1 year 10 months 24 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 47.96 | $ 44.01 | $ 39.63 |
Performance Shares [Member] | |||
Shares | |||
Outstanding, beginning of period (in shares) | 169,244 | ||
Granted (in shares) | 86,978 | ||
Vested (in shares) | 39,152 | ||
Forfeited (in shares) | 7,368 | ||
Outstanding, end of period (in shares) | 209,702 | 169,244 |
Compensation Plans Outstanding
Compensation Plans Outstanding Longer Term Incentive Awards (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Target Shares Issuable as Long Term Incentive Awards | $ 41,765 | $ 38,412 | $ 24,674 |
Maximum Shares Issuable as Long Term Incentive Awards | 83,530 | 76,824 | 49,348 |
Unrecognized Compensation Cost - Long Term Incentives | $ 2,301,000 | $ 981,000 | $ 42,000 |
Share-based Compensation Arrangement By Share-based Payment Award, Grants In Period, Weighted Average Grant Date Fair Value | $ 51,910 | $ 47,160 | $ 38,090 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 42,718 | $ 29,835 | $ 25,132 |
State and local | 11,505 | 5,198 | 5,009 |
Current Federal, State and Local, Tax Expense (Benefit) | 54,223 | 35,033 | 30,141 |
Deferred: | 2,194 | 545 | (12,578) |
Deferred Federal Income Tax Expense (Benefit) | 1,853 | 870 | (10,651) |
Deferred State and Local Income Tax Expense (Benefit) | 341 | (325) | (1,927) |
Deferred Federal, State and Local, Tax Expense (Benefit) | 2,194 | 545 | (12,578) |
Total income tax expense | $ 56,417 | $ 35,578 | $ 17,563 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2022 USD ($) state | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Tax Credit Carryforward [Line Items] | ||||
Amount recognized as a component of income tax expense related low-income housing tax credit | $ 200,000 | $ 100,000 | $ 400,000 | |
Investments related to low-income housing tax credits | 7,300,000 | 7,600,000 | ||
Impairment losses recognized from forfeiture or ineligibility | 0 | |||
Deferred Tax Assets, Net | 88,961,000 | 40,890,000 | ||
Deferred Tax Assets, Valuation Allowance | $ 2,830,000 | 2,830,000 | ||
Number of states the company files income tax returns in | state | 31 | |||
Unrecognized tax benefits | $ 2,724,000 | 2,697,000 | 3,157,000 | $ 1,497,000 |
Unrecognized tax benefits that would impact effective tax rate | 2,200,000 | 2,500,000 | 3,100,000 | |
Reduction in unrecognized tax benefit that is reasonably possible due to a lapse of statute of limitations | $ 400,000 | |||
Duration of unrecognized tax benefits | 12 months | |||
Income Tax Examination, Penalties and Interest Accrued | $ 600,000 | 500,000 | $ 900,000 | |
Other Assets | ||||
Tax Credit Carryforward [Line Items] | ||||
Deferred Tax Assets, Net | $ 89,000,000 | $ 40,900,000 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Increase (reduction) in income tax resulting from: | |||
Income tax expense at statutory rate | $ 54,487 | $ 35,413 | $ 19,309 |
Tax-exempt interest income, net | (4,351) | (3,198) | (2,010) |
State and local income taxes, net | 9,767 | 4,936 | 3,254 |
Bank-owned life insurance | (545) | (713) | (778) |
Non-deductible expenses | 926 | 1,090 | 637 |
Tax benefit of low-income housing tax credit ("LIHTC") investments, net | (195) | (132) | (444) |
Effective Income Tax Rate Reconciliation, Tax Credit, Amount | (68) | 146 | (175) |
Effective Income Tax Rate Reconciliation, Tax Credit, Other, Amount | (3,661) | (1,136) | (1,327) |
Non-taxable donation to charitable foundation | 0 | (263) | 0 |
Other, net | 57 | (565) | (903) |
Total income tax expense | $ 56,417 | $ 35,578 | $ 17,563 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Allowance for loan losses | $ 34,507 | $ 36,550 |
Loans held-for-sale | 5,917 | 6,971 |
Other real estate | 179 | 305 |
Deferred compensation | 3,527 | 2,704 |
Accrued compensation | 6,294 | 5,881 |
Unrealized losses on securities, net | 44,094 | 0 |
Net operating losses and tax credits | 5,829 | 6,061 |
Lease liability accrual | 4,545 | 3,747 |
Other investments | 4,293 | 3,169 |
Other deferred tax assets | 6,463 | 5,594 |
Total deferred tax assets | 115,648 | 70,982 |
Deferred tax liabilities: | ||
Acquired loans | 2,212 | 1,709 |
Unrealized gains on securities, net | 0 | 6,171 |
Intangible assets | 8,676 | 8,789 |
Right of use asset | 4,374 | 3,670 |
Other investments | 7,530 | 5,646 |
Other deferred tax liabilities | 1,065 | 1,277 |
Total deferred tax liabilities | 23,857 | 27,262 |
Deferred Tax Assets, Gross | 91,791 | 43,720 |
Deferred Tax Assets, Valuation Allowance | 2,830 | 2,830 |
Deferred Tax Assets, Net | $ 88,961 | $ 40,890 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Balance at beginning of year | $ 2,697 | $ 3,157 | $ 1,497 |
Additions based on tax positions related to the current year | 683 | 563 | 395 |
Additions for tax positions of prior years | 47 | 436 | 1,556 |
Settlements for tax positions of prior years | (82) | (1,289) | 0 |
Settlements or lapse of statute of limitations | (621) | (170) | (291) |
Balance at end of year | $ 2,724 | $ 2,697 | $ 3,157 |
Commitments (Details)
Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments to extend credit | ||
Schedule of Commitments [Line Items] | ||
Off-balance sheet financial instruments, contractual amounts | $ 3,113,966 | $ 2,481,173 |
Letters of credit | ||
Schedule of Commitments [Line Items] | ||
Off-balance sheet financial instruments, contractual amounts | $ 68,544 | 77,314 |
Letters of credit | Minimum | ||
Schedule of Commitments [Line Items] | ||
Remaining term | 1 month | |
Letters of credit | Maximum | ||
Schedule of Commitments [Line Items] | ||
Remaining term | 11 years | |
State tax credits, held for sale | ||
Schedule of Commitments [Line Items] | ||
Off-balance sheet financial instruments, contractual amounts | $ 4,075 | 18,118 |
SBIC Capital Commitments [Domain] | ||
Schedule of Commitments [Line Items] | ||
Off-balance sheet financial instruments, contractual amounts | 35,090 | 21,553 |
Unadvanced Commitment on Impaired Loan | ||
Schedule of Commitments [Line Items] | ||
Estimated losses attributable to unadvanced commitments on impaired loans | 12,100 | |
Fixed Rate Loan Commitment | Commitments to extend credit | ||
Schedule of Commitments [Line Items] | ||
Off-balance sheet financial instruments, contractual amounts | $ 246,500 | $ 238,700 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Instruments Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Securities available-for-sale | $ 1,535,807 | $ 1,366,006 |
Obligations of U.S. Government-sponsored enterprises | ||
Assets | ||
Securities available-for-sale | 237,785 | 173,511 |
Obligations of states and political subdivisions | ||
Assets | ||
Securities available-for-sale | 417,444 | 575,084 |
Residential mortgage-backed securities | ||
Assets | ||
Securities available-for-sale | 659,404 | 513,859 |
Corporate Debt Securities [Member] | ||
Assets | ||
Securities available-for-sale | 208,534 | 91,170 |
US Treasury Bill Securities [Member] | ||
Assets | ||
Securities available-for-sale | 12,640 | 12,382 |
Recurring basis | Total Fair Value | ||
Assets | ||
Securities available-for-sale | 1,535,807 | 1,366,006 |
Other investments | 2,667 | 3,012 |
Derivative financial instruments | 22,958 | 12,869 |
Total assets | 1,561,432 | 1,381,887 |
Liabilities | ||
Derivative financial instruments | 21,581 | 15,794 |
Total liabilities | 21,581 | 15,794 |
Recurring basis | Obligations of U.S. Government-sponsored enterprises | Total Fair Value | ||
Assets | ||
Securities available-for-sale | 237,785 | 173,511 |
Recurring basis | Obligations of states and political subdivisions | Total Fair Value | ||
Assets | ||
Securities available-for-sale | 417,444 | 575,084 |
Recurring basis | Residential mortgage-backed securities | Total Fair Value | ||
Assets | ||
Securities available-for-sale | 659,404 | 513,859 |
Recurring basis | Corporate Debt Securities [Member] | Total Fair Value | ||
Assets | ||
Securities available-for-sale | 12,640 | 12,382 |
Recurring basis | US Treasury Bill Securities [Member] | Total Fair Value | ||
Assets | ||
Securities available-for-sale | 208,534 | 91,170 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Securities available-for-sale | 0 | 0 |
Other investments | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | ||
Derivative financial instruments | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of U.S. Government-sponsored enterprises | ||
Assets | ||
Securities available-for-sale | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of states and political subdivisions | ||
Assets | ||
Securities available-for-sale | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential mortgage-backed securities | ||
Assets | ||
Securities available-for-sale | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate Debt Securities [Member] | ||
Assets | ||
Securities available-for-sale | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | US Treasury Bill Securities [Member] | ||
Assets | ||
Securities available-for-sale | 0 | 0 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Securities available-for-sale | 1,535,807 | 1,366,006 |
Other investments | 2,667 | 3,012 |
Derivative financial instruments | 22,958 | 12,869 |
Total assets | 1,561,432 | 1,381,887 |
Liabilities | ||
Derivative financial instruments | 21,581 | 15,794 |
Total liabilities | 21,581 | 15,794 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Obligations of U.S. Government-sponsored enterprises | ||
Assets | ||
Securities available-for-sale | 237,785 | 173,511 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Obligations of states and political subdivisions | ||
Assets | ||
Securities available-for-sale | 417,444 | 575,084 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Residential mortgage-backed securities | ||
Assets | ||
Securities available-for-sale | 659,404 | 513,859 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate Debt Securities [Member] | ||
Assets | ||
Securities available-for-sale | 12,640 | 12,382 |
Recurring basis | Significant Other Observable Inputs (Level 2) | US Treasury Bill Securities [Member] | ||
Assets | ||
Securities available-for-sale | 208,534 | 91,170 |
Recurring basis | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Securities available-for-sale | 0 | 0 |
Other investments | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | ||
Derivative financial instruments | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Obligations of U.S. Government-sponsored enterprises | ||
Assets | ||
Securities available-for-sale | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Obligations of states and political subdivisions | ||
Assets | ||
Securities available-for-sale | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Residential mortgage-backed securities | ||
Assets | ||
Securities available-for-sale | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Corporate Debt Securities [Member] | ||
Assets | ||
Securities available-for-sale | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | US Treasury Bill Securities [Member] | ||
Assets | ||
Securities available-for-sale | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Estimated fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
State Tax Credits Held For Sale, Fair Value Disclosure | $ 28,880 | $ 30,686 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Financial Instruments and Non-Financial Assets Measured at Fair Value on a Non-Recurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 0 | $ 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Loan servicing asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate | ||
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 1,027 | 3,146 |
Significant Other Observable Inputs (Level 2) | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Significant Other Observable Inputs (Level 2) | Other real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Loan servicing asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate | 1,027 | 3,146 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 269 | 7,038 |
Significant Unobservable Inputs (Level 3) | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 6,406 | |
Significant Unobservable Inputs (Level 3) | Other real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate | 269 | 632 |
Significant Unobservable Inputs (Level 3) | Loan servicing asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate | 0 | 0 |
Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 1,296 | 10,184 |
Total Fair Value | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 6,406 | |
Total Fair Value | Other real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate | 269 | 632 |
Total Fair Value | Loan servicing asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate | $ 1,027 | $ 3,146 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Carrying Amount and Fair Values of Financial Instruments Reported on the Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Balance sheet assets | ||
Securities held-to-maturity | $ 710,650 | $ 430,295 |
Carrying Amount | ||
Balance sheet assets | ||
Securities held-to-maturity | 709,915 | 429,681 |
Other investments | 61,123 | 56,884 |
Loans held-for-sale | 1,228 | 6,389 |
Loans, net | 9,600,206 | 8,872,601 |
State tax credits held for sale | 27,700 | 27,994 |
Servicing asset | 3,648 | 6,714 |
Balance sheet liabilities | ||
Certificates of deposit | 530,708 | 608,293 |
Subordinated debentures and notes | 155,433 | 154,899 |
FHLB advances | 100,000 | 50,000 |
Other borrowings | 324,119 | 353,863 |
Estimated fair value | ||
Balance sheet assets | ||
Securities held-to-maturity | 628,517 | 434,672 |
Other investments | 61,123 | 56,884 |
Loans held-for-sale | 1,228 | 6,389 |
Loans, net | 9,328,844 | 8,869,891 |
State tax credits held for sale | 28,880 | 30,686 |
Servicing asset | 3,905 | 6,714 |
Balance sheet liabilities | ||
Certificates of deposit | 512,229 | 606,177 |
Subordinated debentures and notes | 152,679 | 155,972 |
FHLB advances | 100,004 | 51,527 |
Other borrowings | $ 324,119 | $ 353,863 |
Parent Company Only Condensed_4
Parent Company Only Condensed Financial Statements - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Condensed Financial Statements, Captions [Line Items] | ||||
Total assets | $ 13,054,172 | $ 13,537,358 | ||
Subordinated debentures and notes | 155,433 | 154,899 | ||
Shareholders' equity | 1,522,263 | 1,529,116 | $ 1,078,975 | $ 867,185 |
Total liabilities and shareholders' equity | 13,054,172 | 13,537,358 | ||
Parent [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash | 99,018 | 94,760 | $ 75,475 | $ 21,955 |
Other assets | 30,312 | 33,847 | ||
Total assets | 1,699,463 | 1,711,705 | ||
Subordinated debentures and notes | 155,433 | 154,899 | ||
Notes payable | 17,143 | 22,857 | ||
Accounts payable and other liabilities | 4,624 | 4,833 | ||
Shareholders' equity | 1,522,263 | 1,529,116 | ||
Total liabilities and shareholders' equity | 1,699,463 | 1,711,705 | ||
Enterprise Bank and Trust [Member] | Parent [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Investments | 1,553,657 | 1,568,796 | ||
Nonbank Subsidiaries [Member] | Parent [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Investments | $ 16,476 | $ 14,302 |
Parent Company Only Condensed_5
Parent Company Only Condensed Financial Statements - Condensed Statements of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Income [Abstract] | |||
Dividends from Bank | $ 1,371 | $ 1,275 | $ 895 |
Dividends from Other Subsidiaries | 1,700 | 2,000 | 1,400 |
Expenses: | |||
Interest expense | 9,166 | 10,960 | 9,885 |
Income tax benefit | (56,417) | (35,578) | (17,563) |
Net income | 203,043 | 133,055 | 74,384 |
Total comprehensive income | 53,934 | 114,712 | 93,755 |
Parent [Member] | |||
Operating Income [Abstract] | |||
Dividends from Bank | 75,000 | 95,000 | 37,000 |
Other | 1,086 | 3,600 | 483 |
Total income | 77,786 | 100,600 | 38,883 |
Expenses: | |||
Interest expense | 9,825 | 11,406 | 10,590 |
Other expenses | 8,580 | 11,037 | 6,946 |
Total expenses | 18,405 | 22,443 | 17,536 |
Income before taxes and equity in undistributed earnings of subsidiaries | 59,381 | 78,157 | 21,347 |
Income tax benefit | 3,585 | 3,710 | 3,448 |
Net income | 62,966 | 81,867 | 24,795 |
Equity in undistributed earnings of subsidiaries | 140,077 | 51,188 | 49,589 |
Total comprehensive income | $ 203,043 | $ 133,055 | $ 74,384 |
Parent Company Only Condensed_6
Parent Company Only Condensed Financial Statements - Consolidated Statements of Cash Flow (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||||
Net income available to common shareholders | $ 199,002 | $ 133,055 | $ 74,384 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Share-based compensation | 8,006 | 6,017 | 4,178 | |
Net cash provided by operating activities | 216,640 | 160,575 | 135,514 | |
Cash flows from investing activities: | ||||
Net cash paid for acquisitions and dispositions | 0 | 212,642 | 62,114 | |
Net cash used in investing activities | (1,383,784) | (23,114) | (702,829) | |
Cash flows from financing activities: | ||||
Proceeds from the issuance of subordinated notes | 0 | 0 | 61,953 | |
Repayments of Subordinated Debt | 0 | 50,000 | 0 | |
Repayments of Notes Payable | 5,714 | 7,143 | 4,286 | |
Dividends paid on common stock | (33,602) | (26,153) | (19,795) | |
Payments for Repurchase of Common Stock | 32,923 | 60,589 | 15,347 | |
Proceeds from issuance of preferred stock, net | $ 72,000 | 0 | 71,988 | 0 |
Dividends paid on preferred stock | (4,041) | 0 | 0 | |
Net cash provided by financing activities | $ (563,186) | $ 1,346,525 | $ 937,762 | |
Noncash investing and financing transactions: | ||||
Shares issued in connection with acquisition (in shares) | 0 | 343,650 | 167,035 | |
Parent [Member] | ||||
Cash flows from operating activities: | ||||
Net income available to common shareholders | $ 203,043 | $ 133,055 | $ 74,384 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Share-based compensation | 8,006 | 6,017 | 4,178 | |
Net income of subsidiaries | (216,777) | (148,188) | (87,989) | |
Dividends from subsidiaries | 76,700 | 97,000 | 38,400 | |
Other, net | 6,102 | (16) | 3,588 | |
Net cash provided by operating activities | 77,074 | 87,868 | 32,561 | |
Cash flows from investing activities: | ||||
Net cash paid for acquisitions and dispositions | 0 | 2,346 | (1,243) | |
Purchases of other investments | (2,187) | (2,204) | (1,166) | |
Proceeds from distributions on other investments | 3,878 | 2,656 | 765 | |
Net cash used in investing activities | 1,691 | 2,798 | (1,644) | |
Cash flows from financing activities: | ||||
Proceeds from the issuance of subordinated notes | 0 | 0 | 61,953 | |
Repayments of Subordinated Debt | 0 | (50,000) | 0 | |
Dividends paid on common stock | (33,602) | (26,153) | (19,795) | |
Payments for Repurchase of Common Stock | 32,923 | 60,589 | 15,347 | |
Proceeds from issuance of preferred stock, net | 0 | 71,988 | 0 | |
Dividends paid on preferred stock | (4,041) | 0 | 0 | |
Payments for the repurchase of equity instruments, net | 1,773 | 516 | 78 | |
Net cash provided by financing activities | (74,507) | (71,381) | 22,603 | |
Net increase in cash and cash equivalents | 4,258 | 19,285 | 53,520 | |
Cash and cash equivalents, beginning of period | 94,760 | 75,475 | 21,955 | |
Cash and cash equivalents, end of period | $ 94,760 | $ 99,018 | $ 94,760 | $ 75,475 |
Noncash investing and financing transactions: | ||||
Shares issued in connection with acquisition (in shares) | 0 | 343,650 | 167,035 | |
Payments for the redemption of subordinated notes | $ (5,714) | $ (7,143) | $ (4,286) |
Supplemental Financial Inform_3
Supplemental Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interim Period, Costs Not Allocable [Line Items] | |||
Noninterest income | $ 59,162 | $ 67,743 | $ 54,503 |
Other expenses | 88,955 | 62,675 | 44,250 |
Amortization Expense | |||
Interim Period, Costs Not Allocable [Line Items] | |||
Other expenses | 5,367 | 5,691 | 5,673 |
Banking Expenses | |||
Interim Period, Costs Not Allocable [Line Items] | |||
Other expenses | 7,212 | 6,123 | 4,921 |
Customer Analysis Expense | |||
Interim Period, Costs Not Allocable [Line Items] | |||
Other expenses | 31,082 | 14,211 | 1,410 |
FDIC And Other Insurnace | |||
Interim Period, Costs Not Allocable [Line Items] | |||
Other expenses | 7,098 | 5,789 | 3,897 |
Loan, Legal Expenses | |||
Interim Period, Costs Not Allocable [Line Items] | |||
Other expenses | 6,943 | 7,130 | 4,003 |
Outside Services | |||
Interim Period, Costs Not Allocable [Line Items] | |||
Other expenses | 5,399 | 4,992 | 4,961 |
Other Expenses | |||
Interim Period, Costs Not Allocable [Line Items] | |||
Other expenses | 25,854 | 18,739 | 19,385 |
Community Development Fees | |||
Interim Period, Costs Not Allocable [Line Items] | |||
Noninterest income | 5,304 | 5,491 | 3,353 |
Bank-owned life insurance | |||
Interim Period, Costs Not Allocable [Line Items] | |||
Noninterest income | 3,324 | 2,938 | 3,194 |
Other income | |||
Interim Period, Costs Not Allocable [Line Items] | |||
Noninterest income | 8,089 | 13,719 | 10,415 |
Total other noninterest income | |||
Interim Period, Costs Not Allocable [Line Items] | |||
Noninterest income | $ 16,717 | $ 22,148 | $ 16,962 |