Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 01, 2023 | |
Cover [Abstract] | ||
Entity Central Index Key | 0001130144 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 000-33063 | |
Entity Registrant Name | SIERRA BANCORP | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 33-0937517 | |
Entity Address, Address Line One | 86 North Main Street | |
Entity Address, City or Town | Porterville | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 93257 | |
City Area Code | 559 | |
Local Phone Number | 782-4900 | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | BSRR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,701,933 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 84,655 | $ 72,803 |
Interest-bearing deposits in banks | 3,887 | 4,328 |
Total cash & cash equivalents | 88,542 | 77,131 |
Available-for-sale, net of zero allowance for credit losses at September 30, 2023 and December 31, 2022 | 1,010,377 | 934,923 |
Held-to-maturity, (fair value of $290,956 at September 30, 2023 and $328,011 at December 31, 2022) | 323,560 | 336,944 |
Allowance for credit losses on held-to-maturity securities | (16) | (63) |
Net, investment securities held-to-maturity | 323,544 | 336,881 |
Loans: | ||
Gross loans | 2,100,810 | 2,052,940 |
Deferred loan costs (fees), net | 163 | (123) |
Allowance for credit losses on loans | (23,060) | (23,060) |
Net loans | 2,077,913 | 2,029,757 |
Premises and equipment, net | 21,926 | 22,478 |
Goodwill | 27,357 | 27,357 |
Other intangible assets, net | 1,618 | 2,275 |
Bank-owned life insurance | 51,332 | 52,169 |
Other assets | 136,271 | 125,619 |
Total assets | 3,738,880 | 3,608,590 |
Deposits: | ||
Noninterest-bearing | 1,059,878 | 1,088,199 |
Interest-bearing | 1,809,842 | 1,757,965 |
Total deposits | 2,869,720 | 2,846,164 |
Repurchase agreements | 94,865 | 109,169 |
Other borrowings | 317,000 | 219,000 |
Long-term debt | 49,281 | 49,214 |
Subordinated debentures | 35,615 | 35,481 |
Allowance for credit losses on unfunded loan commitments | 600 | 840 |
Other liabilities | 62,940 | 45,140 |
Total liabilities | 3,430,021 | 3,305,008 |
Commitments and contingent liabilities (Note 7) | ||
Shareholders' equity | ||
Common stock, no par value; 24,000,000 shares authorized; 14,702,079 and 15,170,372 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively | 109,638 | 112,928 |
Additional paid-in capital | 4,934 | 4,148 |
Retained earnings | 256,201 | 243,082 |
Accumulated other comprehensive loss, net | (61,914) | (56,576) |
Total shareholders' equity | 308,859 | 303,582 |
Total liabilities and shareholders' equity | $ 3,738,880 | $ 3,608,590 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Available-for-sale securities, allowance for credit losses | $ 0 | $ 0 |
Held-to-maturity, at amortized cost, fair value | $ 290,956 | $ 328,011 |
Common Stock, No Par Value | $ 0 | $ 0 |
Common Stock, Shares Authorized | 24,000,000 | 24,000,000 |
Common Stock, Shares, Issued | 14,702,079 | 15,170,372 |
Common Stock, Shares, Outstanding | 14,702,079 | 15,170,372 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest and dividend income | ||||
Loans, including fees | $ 24,915 | $ 21,833 | $ 71,736 | $ 64,211 |
Taxable securities | 14,375 | 7,646 | 39,848 | 15,613 |
Tax-exempt securities | 2,679 | 2,346 | 8,233 | 5,926 |
Federal funds sold and other | 415 | 103 | 861 | 466 |
Total interest income | 42,384 | 31,928 | 120,678 | 86,216 |
Interest expense | ||||
Deposits | 8,767 | 1,761 | 22,710 | 3,105 |
Federal funds purchased and repurchase agreements | 817 | 71 | 3,335 | 231 |
Federal Home Loan Bank advances | 3,522 | 319 | 6,692 | 319 |
Long-term debt | 429 | 427 | 1,286 | 1,284 |
Subordinated debentures | 762 | 439 | 2,120 | 1,024 |
Total interest expense | 14,297 | 3,017 | 36,143 | 5,963 |
Net interest income | 28,087 | 28,911 | 84,535 | 80,253 |
(Benefit) provision for credit losses | (33) | 1,259 | 157 | 4,184 |
Net interest income after provision for credit losses | 28,120 | 27,652 | 84,378 | 76,069 |
Noninterest income | ||||
Net gains on sale of securities available-for-sale | 396 | 1,032 | ||
Increase (decrease) in cash surrender value of life insurance | 558 | (23) | 1,388 | (1,252) |
Other income | 1,149 | 627 | 3,444 | 5,870 |
Total noninterest income | 7,762 | 6,612 | 22,355 | 23,114 |
Noninterest expense | ||||
Salaries and employee benefits | 12,623 | 11,521 | 37,567 | 35,070 |
Occupancy and equipment costs | 2,482 | 2,470 | 7,251 | 7,170 |
Other | 7,457 | 7,005 | 23,704 | 21,042 |
Total noninterest expense | 22,562 | 20,996 | 68,522 | 63,282 |
Income before taxes | 13,320 | 13,268 | 38,211 | 35,901 |
Provision for income taxes | 3,435 | 3,333 | 9,656 | 9,355 |
Net income | $ 9,885 | $ 9,935 | $ 28,555 | $ 26,546 |
PER SHARE DATA | ||||
Book value | $ 21.01 | $ 19.56 | $ 21.01 | $ 19.56 |
Cash dividends | 0.23 | 0.23 | 0.69 | 0.69 |
Earnings per share basic | 0.68 | 0.66 | 1.93 | 1.77 |
Earnings per share diluted | $ 0.68 | $ 0.66 | $ 1.93 | $ 1.76 |
Average shares outstanding, basic | 14,583,132 | 14,954,503 | 14,762,231 | 14,968,242 |
Average shares outstanding, diluted | 14,636,477 | 15,014,048 | 14,791,696 | 15,046,883 |
Total shareholders' equity (in thousands) | $ 308,859 | $ 295,072 | $ 308,859 | $ 295,072 |
Shares outstanding | 14,702,079 | 15,085,675 | 14,702,079 | 15,085,675 |
Dividends paid (in thousands) | $ 3,407 | $ 3,471 | $ 10,361 | $ 10,449 |
Deposit Account [Member] | ||||
Noninterest income | ||||
Service charges and fees on deposit accounts | $ 6,055 | $ 6,008 | $ 17,127 | $ 17,464 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Comprehensive Income [Abstract] | ||||
Net income | $ 9,885 | $ 9,935 | $ 28,555 | $ 26,546 |
Unrealized loss on securities: | ||||
Unrealized holding loss arising during period | (7,670) | (14,994) | (7,182) | (101,432) |
Less: reclassification adjustment for gains included in net income (1) | (396) | (1,032) | ||
Other comprehensive loss, before tax | (7,670) | (14,994) | (7,578) | (102,464) |
Income tax benefit related to items of other comprehensive loss, net of tax | 2,267 | 4,433 | 2,240 | 30,292 |
Other comprehensive loss, net of tax: | (5,403) | (10,561) | (5,338) | (72,172) |
Comprehensive income (loss) | $ 4,482 | $ (626) | $ 23,217 | $ (45,626) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Reclassification adjustment for (losses) gains on securities available-for-sale included in net income, tax | $ 0 | $ 0 | $ 0.1 | $ 0.3 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Total |
Balance at Dec. 31, 2021 | $ 113,007 | $ 3,910 | $ 234,410 | $ 11,167 | $ 362,494 | ||
Balance (in shares) at Dec. 31, 2021 | 15,270,010 | ||||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net income | 26,546 | 26,546 | |||||
Other comprehensive income(loss), net of tax | (72,172) | (72,172) | |||||
Stock options exercised; net of shares surrendered for cashless exercises | $ 512 | (398) | 114 | ||||
Stock options exercised; net of shares surrendered for cashless exercises (in shares) | 10,600 | ||||||
Restricted stock surrendered due to employee tax liability | $ (83) | (170) | (253) | ||||
Restricted stock surrendered due to employee tax liability (in shares) | (11,161) | ||||||
Restricted stock forfeited / cancelled (in shares) | (1,212) | ||||||
Stock based compensation - stock options | 66 | 66 | |||||
Stock based compensation - restricted stock | 892 | 892 | |||||
Stock repurchase | $ (1,325) | (3,526) | (4,851) | ||||
Stock repurchase (in shares) | (182,562) | ||||||
Cash dividends | (10,449) | (10,449) | |||||
Balance at Sep. 30, 2022 | $ 112,111 | 4,470 | $ (7,315) | 239,496 | (61,005) | $ (7,315) | 295,072 |
Balance (in shares) at Sep. 30, 2022 | 15,085,675 | ||||||
Balance at Jun. 30, 2022 | $ 111,727 | 4,585 | 233,179 | (50,444) | 299,047 | ||
Balance (in shares) at Jun. 30, 2022 | 15,090,792 | ||||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net income | 9,935 | 9,935 | |||||
Other comprehensive income(loss), net of tax | (10,561) | (10,561) | |||||
Stock options exercised; net of shares surrendered for cashless exercises | $ 458 | (397) | 61 | ||||
Stock options exercised; net of shares surrendered for cashless exercises (in shares) | 5,400 | ||||||
Restricted stock surrendered due to employee tax liability | $ (74) | (147) | (221) | ||||
Restricted stock surrendered due to employee tax liability (in shares) | (9,965) | ||||||
Restricted stock forfeited / cancelled (in shares) | (552) | ||||||
Stock based compensation - stock options | 18 | 18 | |||||
Stock based compensation - restricted stock | 264 | 264 | |||||
Cash dividends | (3,471) | (3,471) | |||||
Balance at Sep. 30, 2022 | $ 112,111 | 4,470 | $ (7,315) | 239,496 | (61,005) | $ (7,315) | 295,072 |
Balance (in shares) at Sep. 30, 2022 | 15,085,675 | ||||||
Balance at Dec. 31, 2022 | $ 112,928 | 4,148 | 243,082 | (56,576) | 303,582 | ||
Balance (in shares) at Dec. 31, 2022 | 15,170,372 | ||||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net income | 28,555 | 28,555 | |||||
Other comprehensive income(loss), net of tax | (5,338) | (5,338) | |||||
Restricted stock granted (in shares) | 29,064 | ||||||
Restricted shares withheld for taxes | $ (89) | (159) | (248) | ||||
Restricted shares withheld for taxes (in shares) | (11,893) | ||||||
Restricted stock forfeited / cancelled (in shares) | (4,370) | ||||||
Restricted stock vested in period | $ 454 | (454) | |||||
Stock based compensation - stock options | 53 | 53 | |||||
Stock based compensation - restricted stock | 1,187 | 1,187 | |||||
Stock repurchase | $ (3,574) | (4,916) | (8,490) | ||||
Stock repurchase (in shares) | (481,094) | ||||||
Excise tax on stock repurchase | $ (81) | (81) | |||||
Cash dividends | (10,361) | (10,361) | |||||
Balance at Sep. 30, 2023 | $ 109,638 | 4,934 | 256,201 | (61,914) | 308,859 | ||
Balance (in shares) at Sep. 30, 2023 | 14,702,079 | ||||||
Balance at Jun. 30, 2023 | $ 110,097 | 4,887 | 251,119 | (56,511) | 309,592 | ||
Balance (in shares) at Jun. 30, 2023 | 14,811,736 | ||||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net income | 9,885 | ||||||
Other comprehensive income(loss), net of tax | (5,403) | (5,403) | |||||
Restricted shares withheld for taxes | $ (76) | (136) | (212) | ||||
Restricted shares withheld for taxes (in shares) | (10,129) | ||||||
Restricted stock vested in period | $ 374 | (374) | |||||
Stock based compensation - stock options | 16 | 16 | |||||
Stock based compensation - restricted stock | 405 | 405 | |||||
Stock repurchase | $ (740) | (1,260) | (2,000) | ||||
Stock repurchase (in shares) | (99,528) | ||||||
Excise tax on stock repurchase | $ (17) | (17) | |||||
Cash dividends | (3,407) | (3,407) | |||||
Balance at Sep. 30, 2023 | $ 109,638 | $ 4,934 | $ 256,201 | $ (61,914) | $ 308,859 | ||
Balance (in shares) at Sep. 30, 2023 | 14,702,079 |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.23 | $ 0.23 | $ 0.69 | $ 0.69 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 28,555 | $ 26,546 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Gain on sales of securities | (396) | (1,032) |
(Gain) loss on disposal of fixed assets | (15) | 6 |
Gain on sale on foreclosed assets | (8) | |
Writedowns on foreclosed assets | 91 | |
Stock based compensation expense | 1,240 | 958 |
Provision for credit losses on loans | 444 | 4,360 |
(Benefit) provision for credit losses on held-to-maturity securities | (47) | 18 |
Depreciation and amortization | 1,787 | 1,910 |
Net amortization on securities premiums and discounts | 2,199 | 2,934 |
Net accretion of premiums/discounts for loans acquired | (232) | (149) |
(Increase) decrease in cash surrender value of life insurance policies | (1,388) | 1,251 |
Amortization of core deposit intangible | 657 | 758 |
Increase in interest receivable and other assets | (1,880) | (18,017) |
Decrease in other liabilities | 17,560 | 15,506 |
Deferred income tax benefit | (347) | (2,397) |
Decrease in value of restricted bank equity securities | 291 | 332 |
Excise tax on stock repurchases | (81) | |
Amortization of debt issuance costs | 67 | 55 |
Net amortization of partnership investment | 453 | 338 |
Net cash provided by operating activities | 48,867 | 33,460 |
Cash flows from investing activities: | ||
Maturities and calls of securities available for sale | 65,581 | 7,663 |
Proceeds from sales of securities available for sale | 25,676 | 26,408 |
Purchases of securities available for sale | (197,153) | (450,984) |
Principal pay downs on securities available for sale | 34,445 | 60,198 |
Net purchases of FHLB stock | (1,929) | (336) |
Loan originations and payments, net | (67,519) | (36,286) |
Purchases of premises and equipment | (1,112) | (899) |
Proceeds from sale of premises and equipment | 26 | |
Proceeds from sales of foreclosed assets | 19,151 | 10 |
Purchase of bank-owned life insurance | (99) | (19) |
Liquidation of bank-owned life insurance | 11 | |
Increase in partnership investment | (5,000) | (7,562) |
Proceeds from BOLI death benefit | 2,324 | 859 |
Net cash used in investing activities | (125,609) | (400,937) |
Cash flows from financing activities: | ||
Increase in deposits | 23,556 | 103,896 |
Increase in Fed funds purchased | 10,000 | |
Increase in short-term Federal Home Loan Bank advances | 8,000 | 103,100 |
Proceeds from long-term Federal Home Loan Bank advances and other debt | 80,000 | |
(Decrease) increase in customer repurchase agreements | (14,304) | 5,075 |
Cash dividends paid | (10,361) | (10,449) |
Repurchases of common stock | (8,738) | (5,108) |
Stock options exercised | 118 | |
Net cash provided by financing activities | 88,153 | 196,632 |
Increase (decrease) in cash and cash equivalents | 11,411 | (170,845) |
Cash and cash equivalents, beginning of period | 77,131 | 257,528 |
Cash and cash equivalents, end of period | 88,542 | 86,683 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 33,993 | 5,958 |
Income taxes paid | 7,455 | $ 8,946 |
Supplemental schedule of noncash investing and financing activities: | ||
Real estate acquired through foreclosure | $ 15,406 |
The Business of Sierra Bancorp
The Business of Sierra Bancorp | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Business of Sierra Bancorp | Note 1 – The Business of Sierra Bancorp Sierra Bancorp (the “Company”) is a California corporation headquartered in Porterville, California, and is a registered bank holding company under federal banking laws. The Company was formed to serve as the holding company for Bank of the Sierra (the “Bank”), and has been the Bank’s sole shareholder since August 2001. The Company exists primarily for the purpose of holding the stock of the Bank and of such other subsidiaries it may acquire or establish. As of September 30, 2023, the Company’s only other subsidiaries were Sierra Statutory Trust II, Sierra Capital Trust III, and Coast Bancorp Statutory Trust II, which were formed solely to facilitate the issuance of capital trust pass-through securities (“TRUPS”). Pursuant to the Financial Accounting Standards Board (“FASB”) standard on the consolidation of variable interest entities, these trusts are not reflected on a consolidated basis in the Company’s financial statements. References herein to the “Company” include Sierra Bancorp and its consolidated subsidiary, the Bank, unless the context indicates otherwise. Bank of the Sierra, a California state-chartered bank headquartered in Porterville, California, offers a wide range of retail and commercial banking services via branch offices located throughout California’s South San Joaquin Valley, the Central Coast, Ventura County, the Sacramento area, and neighboring communities. The Bank was incorporated in September 1977, and opened for business in January 1978 as a one-branch bank with $1.5 million in capital. Our growth in the ensuing years has largely been organic in nature, but includes four whole-bank acquisitions: Sierra National Bank in 2000, Santa Clara Valley Bank in 2014, Coast National Bank in 2016, and Ojai Community Bank in October 2017. As of the filing date of this report the Bank operates 35 full-service branches and an online branch, and maintains ATMs at all but one of our branch locations as well as at seven non-branch locations. Moreover, the Bank has specialized lending units which focus on agricultural borrowers, commercial real estate, and mortgage warehouse lending. In addition, in February 2020 the Bank opened a loan production office which is currently located in Roseville, CA. To support organic growth in the agricultural lending sector the Bank also opened a loan production office in Templeton, CA in April 2022. The Company had total assets of $3.7 billion at September 30, 2023, and for a number of years we have claimed the distinction of being the largest bank headquartered in the South San Joaquin Valley. The Bank’s deposit accounts, which totaled $2.9 billion at September 30, 2023, are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to maximum insurable amounts. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note 2 – Basis of Presentation The accompanying interim unaudited consolidated financial statements have been prepared in a condensed format as allowed under U.S. generally accepted accounting principles (“GAAP”). Therefore, these financial statements do not include all of the information and footnotes required for complete, audited financial statements as presented in the Company’s Annual Report on Form 10-K. The information furnished in these interim statements reflects all adjustments that are, in the opinion of Management, necessary for a fair statement of the results for such periods. Such adjustments can generally be considered as normal and recurring unless otherwise disclosed in this Form 10-Q. In preparing the accompanying financial statements, Management has taken subsequent events into consideration, through November 2, 2023 and recognized them where appropriate. The results of operations in the interim statements are not necessarily indicative of the results that may be expected for any other quarter, or for the full year. Certain amounts reported for 2022 have been reclassified to be consistent with the reporting for 2023, none of which impacted net income or shareholders’ equity. The interim financial information should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission (the “SEC”). |
Share Based Compensation
Share Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-based Payment Arrangement [Abstract] | |
Share Based Compensation | Note 4 – Share Based Compensation On March 17, 2023, the Company’s Board of Directors approved and adopted the 2023 Equity Compensation Plan (the “2023 Plan”), which became effective May 24, 2023, the date approved by the Company’s shareholders. The 2023 Plan replaced the Company’s 2017 Stock Incentive Plan (the “2017 Plan”). Options to purchase 210,800 shares granted under the 2017 Plan and options to purchase 132,649 shares that were granted under the 2007 Plan were still outstanding as of September 30, 2023, and remain unaffected by that plan’s expiration. The 2023 Plan provides for the issuance of various types of equity awards, including options, stock appreciation rights, restricted stock awards, restricted share units, performance share awards, dividend equivalents, or any combination thereof. Such awards may be granted to officers and employees as well as non-employee directors, which awards may be granted on such terms and conditions as are established by the Board of Directors or the Compensation Committee in its discretion. The total number of shares of the Company’s authorized but unissued stock reserved for issuance pursuant to awards under the 2023 Plan was initially 360,000 shares, and the number remaining available for grant as of September 30, 2023 was unchanged. The potential dilutive impact of unexercised stock options is discussed below in Note 5, Earnings per Share. Pursuant to FASB’s standards on stock compensation, the value of each stock option and restricted stock award is reflected in our income statement as employee compensation or directors’ expense by amortizing its grant date fair value over the vesting period of the option or award. The Company utilizes a Black-Scholes model to determine grant date fair values for options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Forfeitures are reflected in compensation costs as they occur for both types of awards. A pre-tax charge of $0.4 million was reflected in the Company’s income statement during the third quarter of 2023 and $0.3 million during the third quarter of 2022, as expense related to stock options and restricted stock awards. For the first nine months of 2023 and 2022, the charges totaled $1.2 million and $1.0 million, respectively. Restricted Stock Grants The Company’s Restricted Stock Awards are awards of either time-vested or performance-based shares. The Restricted Stock Awards are non-transferrable shares of common stock and are available to be granted to the Company’s employees and directors. The vesting period of Restricted Stock Awards is determined at the time the awards are issued, and different awards may have different vesting terms or performance measures; provided, however, that no installment of any Restricted Stock Award shall become vested less than one year from the grant date. Restricted Stock Awards are valued utilizing the fair value of the Company’s stock at the grant date. These awards are expensed on a straight-line basis over the vesting period and consider the probability of meeting the performance criteria. There were 29,064 shares granted to employees of the Company during the first nine months of 2023. As of September 30, 2023, there was The Company’s restricted stock award activity for the nine months ended September 30, 2023 and 2022 is summarized below (unaudited): Nine months ended September 30, 2023 2022 Shares Weighted Average Grant-Date Fair Value Shares Weighted Average Grant-Date Fair Value Unvested shares, January 1, 175,619 $ 21.42 165,131 $ 21.72 Granted 29,064 21.50 — — Vested (23,675) 19.17 (37,748) 19.20 Forfeited (4,370) 22.79 (1,212) 27.16 Unvested shares, September 30, 176,638 $ 21.72 126,171 $ 22.45 Stock Option Grants The Company has issued equity instruments in the form of Incentive Stock Options and Nonqualified Stock Options to certain officers and directors. No options have been granted since 2020, but the Company could elect to issue under the 2023 Plan. The exercise price of each stock option is determined at the time of the grant and may be no less than The Company’s stock option activity during the nine months ended September 30, 2023 and 2022 are summarized below (dollars in thousands, except per share data, unaudited): Nine months ended September 30, 2023 2022 Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (1) Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (1) Outstanding at January 1, 352,249 $ 25.06 $ 348 415,870 $ 24.15 $ 1,338 Exercised — $ — $ — (5,600) $ 11.22 $ 56 Forfeited/Expired (8,800) $ 26.56 $ 3 (32,381) $ 27.32 $ — Outstanding at September 30, 343,449 $ 25.02 4.48 $ 167 377,889 $ 24.07 5.13 $ 470 Exercisable at September 30, 319,649 $ 24.86 4.35 $ 167 336,489 $ 23.69 4.88 $ 470 (1) The aggregate intrinsic value of stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on September 30, 2023. This amount changes based on changes in the market value of the Company's stock. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 5 – Earnings per Share The computation of earnings per share, as presented in the Consolidated Statements of Income, is based on the weighted average number of shares outstanding during each period, excluding unvested restricted stock awards. There were 14,583,132 weighted average shares outstanding during the third quarter of 2023 and 14,954,503 during the third quarter of 2022, while there were 14,762,231 weighted average shares outstanding during the first nine months of 2023 and 14,968,242 during the first nine months of 2022. Diluted earnings per share calculations include the effect of the potential issuance of common shares, which for the Company is limited to shares that would be issued on the exercise of “in-the-money” stock options, and unvested restricted stock awards. For the third quarter of 2023, calculations under the treasury stock method resulted in the equivalent of 53,345 shares being added to basic weighted average shares outstanding for purposes of determining diluted earnings per share, while a weighted average of 278,374 stock options were excluded from the calculation because they were underwater and thus anti-dilutive. For the third quarter of 2022 the equivalent of 59,545 shares were added in calculating diluted earnings per share, while 303,387 anti-dilutive stock options were not factored into the computation. Likewise, for the first nine months of 2023 the equivalent of 29,465 shares were added to basic weighted average shares outstanding in calculating diluted earnings per share and a weighted average of 326,036 options that were anti-dilutive for the period were not included, compared to the addition of the equivalent of 78,641 shares and non-inclusion of 299,404 anti-dilutive options in calculating diluted earnings per share for first nine months of 2022. |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2023 | |
Comprehensive Income [Abstract] | |
Comprehensive Income (Loss) | Note 6 – Comprehensive Income (Loss) As presented in the Consolidated Statements of Comprehensive Income (Loss), comprehensive income (loss) includes net income and other comprehensive income (loss). The Company’s only source of other comprehensive income (loss) is unrealized gains and losses on available-for-sale investment securities. Investment gains or losses that were realized and reflected in net income of the current period, which had previously been included in other comprehensive income (loss) as unrealized holding gains or losses in the period in which they arose, are considered to be reclassification adjustments that are excluded from other comprehensive income (loss) in the current period. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Note 7 – Commitments and Contingent Liabilities The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business. Those financial instruments currently consist of unused commitments to extend credit and standby letters of credit. They involve, to varying degrees, elements of risk in excess of the amount recognized in the balance sheet. The Company’s exposure to credit loss in the event of nonperformance by counterparties for commitments to extend credit and letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and issuing letters of credit as it does for originating loans included on the balance sheet. The following financial instruments represent off-balance-sheet credit risk (dollars in thousands): September 30, 2023 December 31, 2022 Commitments to extend credit $ 543,722 $ 889,517 Standby letters of credit $ 5,124 $ 6,037 Commitments to extend credit consist primarily of the unused or unfunded portions of the following: mortgage warehouse lines, home equity lines of credit, commercial real estate construction loans, where disbursements are made over the course of construction; commercial revolving lines of credit, unsecured personal lines of credit and formalized (disclosed) deposit account overdraft lines. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many commitments are expected to expire without being drawn upon, the unused portions of committed amounts do not necessarily represent future cash requirements. Standby letters of credit are issued by the Company to guarantee the performance of a customer to a third party, and the credit risk involved in issuing letters of credit is essentially the same as the risk involved in extending loans to customers. Included in unused commitments are mortgage warehouse lines which are in the form of repo lines and are unconditionally cancellable. Unused commitments on mortgage warehouse lines were The ACL on unfunded commitments is estimated using the same reserve or coverage rates calculated on collectively evaluated loans following the application of a funding rate to the amount of the unfunded commitment. The funding rate represents management’s estimate of the amount of the current unfunded commitment that will be funded over the remaining contractual life of the commitment and is based on historical data. The ACL on unfunded loan commitments is located in other liabilities while any related provision expense is recorded as a provision for credit losses. At September 30, 2023, the Company was also utilizing a letter of credit in the amount of $127.9 million issued by the Federal Home Loan Bank on the Company’s behalf as security for certain deposits and to facilitate certain credit arrangements with the Company’s customers. That letter of credit is backed by loans which are pledged to the FHLB by the Company. The Company is subject to loss contingencies, including claims and legal actions arising in the ordinary course of business, which are recorded as liabilities when the likelihood of loss is probable, and an amount or range of loss can be reasonably estimated. Management does not believe there are such matters that will have a material effect on the financial statements. |
Fair Value Disclosures and Repo
Fair Value Disclosures and Reporting and Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures and Reporting and Fair Value Measurements | Note 8 – Fair Value Disclosures and Reporting and Fair Value Measurements FASB’s standards on financial instruments, and on fair value measurements and disclosures, require public business entities to disclose in their financial statement footnotes the estimated fair values of financial instruments. In addition to disclosure requirements, FASB’s standard on investments requires that our debt securities that are classified as available for sale and any equity securities which have readily determinable fair values be measured and reported at fair value in our statement of financial position. Certain individually identified loans are also reported at fair value, as explained in greater detail below, and foreclosed assets are carried at the lower of cost or fair value. FASB’s standard on financial instruments permits companies to report certain other financial assets and liabilities at fair value, but the Company has not elected the fair value option for any of those financial instruments. Fair value measurement and disclosure standards also establish a framework for measuring fair values. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants on the measurement date. Further, the standards establish a fair value hierarchy that encourages an entity to maximize the use of observable inputs and limit the use of unobservable inputs when measuring fair values. The standards describe three levels of inputs that may be used to measure fair values: ● Level 1 : Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. ● Level 2 : Significant observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data. ● Level 3 : Significant unobservable inputs that reflect a company’s own assumptions about the factors that market participants would likely consider in pricing an asset or liability. Fair value estimates are made at a specific point in time based on relevant market data and information about the financial instruments. Fair value disclosures for deposits include demand deposits, which are, by definition, equal to the amount payable on demand at the reporting date. Fair value calculations for loans reflect exit pricing, and incorporate our assumptions with regard to the impact of prepayments on future cash flows and credit quality adjustments based on risk characteristics of various financial instruments, among other things. Since the estimates are subjective and involve uncertainties and matters of significant judgment they cannot be determined with precision, and changes in assumptions could significantly alter the fair values presented. Estimated fair values for the Company’s financial instruments are as follows, as of the dates noted: Fair Value of Financial Instruments (dollars in thousands, unaudited) September 30, 2023 Fair Value Measurements Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Financial assets: Cash and cash equivalents $ 88,542 $ 88,542 $ — $ — $ 88,542 Investment securities available-for-sale 1,010,377 — 958,142 52,235 1,010,377 Investment securities held-to-maturity 323,544 — 290,956 — 290,956 Loans, net held for investment 2,077,913 — — 1,933,957 1,933,957 Financial liabilities: Deposits 2,869,720 1,059,878 1,811,832 — 2,871,710 Repurchase agreements 94,865 — 94,865 — 94,865 Other borrowings 317,000 — 314,364 — 314,364 Long-term borrowings 49,281 — 41,122 — 41,122 Subordinated debentures 35,615 — 31,183 — 31,183 December 31, 2022 Fair Value Measurements Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Financial assets: Cash and cash equivalents $ 77,131 $ 77,131 $ — $ — $ 77,131 Investment securities available for sale 934,923 — 877,488 57,435 934,923 Investment securities held-to-maturity 336,881 — 328,011 — 328,011 Loans, net held for investment 2,011,616 — — 1,909,822 1,909,822 Individually evaluated collateral dependent loans 18,141 — 18,141 — 18,141 Financial liabilities: Deposits 2,846,164 1,088,199 1,756,443 — 2,844,642 Repurchase agreements 109,169 — 109,169 — 109,169 Other borrowings 219,000 — 219,000 — 219,000 Long-term borrowings 49,214 — 42,775 — 42,775 Subordinated debentures 35,481 — 37,171 — 37,171 For financial asset categories that were carried on our balance sheet at fair value as of September 30, 2023 and December 31, 2022, the Company used the following methods and significant assumptions: ● Investment securities : Fair values are determined by obtaining quoted prices on nationally recognized securities exchanges or by matrix pricing, which is a mathematical technique used widely in the industry to value debt securities by relying on their relationship to other benchmark quoted securities. ● Collateral-dependent loans : Collateral-dependent loans are carried at fair value when foreclosure is probable or repayment is expected through the sale or operation of collateral and borrower is experiencing financial difficulty. ● Foreclosed assets : Repossessed real estate (known as other real estate owned, or “OREO”) and other foreclosed assets are carried at the lower of cost or fair value. Fair value is the appraised value less expected disposition costs for OREO; fair values for any other foreclosed assets are represented by estimated sales proceeds as determined using reasonably available sources. Foreclosed assets for which appraisals can be feasibly obtained are periodically measured for impairment using updated appraisals. Fair values for other foreclosed assets are adjusted as necessary, subsequent to a periodic reevaluation of expected cash flows and the timing of resolution. If impairment is determined to exist, the book value of a foreclosed asset is immediately written down to its estimated impaired value through the income statement, thus the carrying amount is equal to the fair value and there is no valuation allowance. Assets reported at fair value on a recurring basis are summarized below: Fair Value Measurements – Recurring (dollars in thousands, unaudited) Fair Value Measurements at September 30, 2023, using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Realized Gain/(Loss) (Level 3) Securities: U.S. government agencies $ — $ 107,084 $ — $ 107,084 $ — Mortgage-backed securities — 102,951 — 102,951 — State and political subdivisions — 178,314 — 178,314 — Corporate bonds — — 52,235 52,235 — Collateralized loan obligations — 569,793 — 569,793 — Total available-for-sale securities $ — $ 958,142 $ 52,235 $ 1,010,377 $ — Fair Value Measurements at December 31, 2022, using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Realized Gain/(Loss) (Level 3) Securities: U.S. government agencies $ — $ 50,599 $ — $ 50,599 $ — Mortgage-backed securities — 122,532 — 122,532 — State and political subdivisions — 205,980 — 205,980 — Corporate bonds — — 57,435 57,435 — Collateralized loan obligations — 498,377 — 498,377 — Total available-for-sale securities $ — $ 877,488 $ 57,435 $ 934,923 $ — Fair Value Measurements - Level 3 Recurring (dollars in thousands, unaudited) Collateralized Loan Obligations Corporate Bonds 2023 2022 2023 2022 Balance of recurring Level 3 assets at January 1, $ — $ 195,707 $ 57,435 $ 27,530 Total gains or losses for the period: Included in other comprehensive income — — (5,200) — Purchases — — — 26,806 Transfers out of Level 3 — (195,707) — — Balance of recurring Level 3 assets at September 30, $ — $ — $ 52,235 $ 54,336 All of the Company’s collateralized loan obligations with a fair value of $195.7 million as of January 1, 2022 were transferred from Level 3 to Level 2 during the first quarter of 2022 because observable market data became available due to a significant increase in trading volume for these securities during that time. The Company had no assets reported at fair value on a nonrecurring basis at September 30, 2023. Assets reported at fair value on a nonrecurring basis at September 30, 2022 are summarized in the table below: Fair Value Measurements – Nonrecurring (dollars in thousands, unaudited) Fair Value Measurements at December 31, 2022, using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Individually evaluated collateral dependent loans Real estate: Farmland $ — $ 15,391 $ — $ 15,391 Total real estate — 15,391 — 15,391 Other commercial — 2,750 — 2,750 Consumer loans — — — — Total collateral dependent loans $ — $ 18,141 $ — $ 18,141 Foreclosed assets $ — $ — $ — $ — Total assets measured on a nonrecurring basis $ — $ 18,141 $ — $ 18,141 The table above includes collateral-dependent loan balances for which a specific reserve has been established or on which a write-down has been taken. Information on the Company’s total collateral dependent loan balances and specific loss reserves associated with those balances is included in Note 10 below. The unobservable inputs are based on Management’s best estimates of appropriate discounts in arriving at fair market value. Adjusting any of those inputs could result in a significantly lower or higher fair value measurement. For example, an increase or decrease in actual loss rates would create a directionally opposite change in the fair value of unsecured individually identified loans. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Note 9 – Investments Investment Securities Pursuant to FASB’s guidance on accounting for debt securities, available for sale securities are carried on the Company’s financial statements at their estimated fair market values, with monthly tax-effected “mark-to-market” adjustments made vis-à-vis accumulated other comprehensive income in shareholders’ equity. Held-to-maturity securities are carried on the Company’s financial statements at their amortized cost, net of the allowance for credit losses. The amortized cost, estimated fair value, and allowance for credit losses of available-for-sale and held-to-maturity investment securities are as follows: Amortized Cost And Estimated Fair Value (dollars in thousands, unaudited) September 30, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Estimated Fair Value Available-for-sale U.S. government agencies $ 108,385 $ — $ (1,301) $ — $ 107,084 Mortgage-backed securities 112,464 30 (9,543) — 102,951 State and political subdivisions 209,198 12 (30,896) — 178,314 Corporate bonds 65,244 — (13,009) — 52,235 Collateralized loan obligations 574,051 838 (5,096) — 569,793 Total available-for-sale securities $ 1,069,342 $ 880 $ (59,845) $ — $ 1,010,377 Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Estimated Fair Value Allowance for Credit Losses Held-to-maturity U.S. government agencies $ 5,557 $ — $ (854) $ 4,703 $ — Mortgage-backed securities 145,658 — (17,622) 128,036 — State and political subdivisions 172,345 16 (14,144) 158,217 (16) Total held-to-maturity securities $ 323,560 $ 16 $ (32,620) $ 290,956 $ (16) December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Estimated Fair Value Available-for-sale U.S. government agencies $ 50,625 $ 49 $ (75) $ — $ 50,599 Mortgage-backed securities 129,948 — (7,416) — 122,532 State and political subdivisions 223,810 607 (18,437) — 205,980 Corporate bonds 65,164 10 (7,739) — 57,435 Collateralized loan obligations 515,032 60 (16,715) — 498,377 Total available-for-sale securities $ 984,579 $ 726 $ (50,382) $ — $ 934,923 Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Estimated Fair Value Allowance for Credit Losses Held-to-maturity U.S. government agencies $ 6,047 $ — $ (621) $ 5,426 $ — Mortgage-backed securities 157,473 — (9,915) 147,558 — State and political subdivisions 173,424 1,603 — 175,027 (63) Total held-to-maturity securities $ 336,944 $ 1,603 $ (10,536) $ 328,011 $ (63) The Company reassessed classification of certain investments and effective April 1, 2022 the Company transferred $162.1 million of Agency, Mortgaged-Backed and Municipal securities from the available-for-sale designation to the held-to-maturity designation. On October 1, 2022, a similar transfer of $198.3 million securities from available for sale to held-to-maturity was completed. The securities were transferred at their fair value as of the transfer date, with the related unrealized gain or loss as of the date of transfer included in the amortized cost basis of the transferred security and subject to amortization or accretion over each security’s remaining life. An unrealized loss of $28.9 million, on securities transferred from the available-for-sale to held-to-maturity categorization, remains as of September 30, 2023 and is included in accumulated other comprehensive income, net of tax. The remaining unrealized loss on the securities transferred from available-for-sale to held-to-maturity, will be accreted over the remaining term of the securities, with the amortized-cost basis of these securities and accumulated comprehensive income each increasing over time. Because of the implicit and explicit guarantees of the Federal Government on the Agency and Mortgage-Backed securities there is no expectation of future losses on any of these securities. The Bank’s municipal bonds moved to the held-to-maturity designation all have credit ratings considered investment grade or equivalent. A discounted-cash-flow reserve calculation was performed upon the transfer of these securities into the held-to-maturity designation and is updated on a quarterly basis. The Company elected the practical expedient available under CECL to exclude accrued interest receivable from the amortized cost basis of all categorizations of investment securities, and resultingly did not estimate reserves on accrued interest receivable balances, as any past due interest income is reversed on a timely basis. Accrued interest receivable is included in other assets on the Company’s balance sheet and as of September 30, 2023, measured at $12.1 million and $1.7 million for available-for-sale securities and held-to-maturity securities, respectively. Accrued interest receivable as of December 31, 2022, on these same classes of investment securities measured at $9.3 million and $2.7 million, respectively. During the third quarter and first nine months of 2023, no interest receivable on available-for-sale or held-to-maturity securities was reversed against interest income and the Company did not have any held-to-maturity debt securities past due. As of September 30, 2023, an allowance for credit losses of $0.02 million had been established on the Bank’s held-to-maturity portfolio, which is a decrease of $0.04 million from the December 31, 2022 allowance for credit losses of $0.06 million. The following table summarizes the amortized cost of held-to-maturity municipal bonds aggregated by NRSRO credit rating: Held-To-Maturity by Credit Rating (dollars in thousands, unaudited) Held-To-Maturity September 30, 2023 December 31, 2022 State and political subdivisions AAA/Aaa $ 57,802 $ 57,833 AA/Aa 113,054 115,040 A/A2 544 551 Not rated 946 — Total $ 172,346 $ 173,424 For available-for-sale debt securities in an unrealized loss position for which management has an intent to sell the security or considers it more likely-than-not that the security in question will be sold prior to a recovery of its amortized cost basis, the security will be written down to fair value through a direct charge to income. For the remainder of available sale debt securities in an unrealized loss position, which don’t meet the previously outlined criteria, management evaluates whether the decline in fair value is a reflection of credit deterioration or other factors. In performing this evaluation, management considers the extent which fair value has fallen below amortized cost, changes in ratings by rating agencies, and other information indicating a deterioration in repayment capacity of either the underlying issuer or the borrowers providing repayment capacity in a securitization. If management’s evaluation indicates that a credit loss exists then a present value of the expected cash flows is calculated and compared to the amortized cost basis of the security in question and to the degree that the amortized cost basis exceeds the present value an allowance for credit loss (“ACL”) is established, with the caveat that the maximum amount of the reserve on any individual security is the difference between the fair value and amortized cost balance of the security in question. Any unrealized loss that has not been recorded through an ACL is recognized in other comprehensive income. The following table summarizes available-for-sale debt securities that were in an unrealized loss position for which an ACL has not been recorded, based on the length of time the individual securities have been in an unrealized loss position, including the number of available-for-sale debt securities in an unrealized loss position, as of the dates indicated below. Investment Portfolio - Unrealized Losses (dollars in thousands, unaudited) September 30, 2023 Less than twelve months Twelve months or more Total Number of Securities Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Available-for-sale U.S. government agencies 29 $ (1,180) $ 103,205 $ (121) $ 3,879 $ (1,301) $ 107,084 Mortgage-backed securities 332 — 27 (9,543) 98,911 (9,543) 98,938 State and political subdivisions 303 (2,601) 50,842 (28,295) 119,290 (30,896) 170,132 Corporate bonds 51 (407) 5,089 (12,602) 47,146 (13,009) 52,235 Collateralized loan obligations 53 (77) 53,389 (5,019) 391,724 (5,096) 445,113 Total available-for-sale 768 $ (4,265) $ 212,552 $ (55,580) $ 660,950 $ (59,845) $ 873,502 December 31, 2022 Less than twelve months Twelve months or more Total Number of Securities Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Available-for-sale U.S. government agencies 8 $ (75) $ 27,550 $ — $ — $ (75) $ 27,550 Mortgage-backed securities 340 (7,108) 119,260 (308) 3,227 (7,416) 122,487 State and political subdivisions 252 (15,732) 147,635 (2,705) 9,807 (18,437) 157,442 Corporate bonds 52 (7,644) 54,636 (95) 405 (7,739) 55,041 Collateralized loan obligations 60 (10,152) 309,102 (6,563) 169,743 (16,715) 478,845 Total available-for-sale 712 $ (40,711) $ 658,183 $ (9,671) $ 183,182 $ (50,382) $ 841,365 The table below summarizes the Company’s gross realized gains and losses as well as gross proceeds from the sales of securities, for the periods indicated: Investment Portfolio - Realized Gains/(Losses) (dollars in thousands, unaudited) Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Proceeds from sales, calls and maturities of securities available for sale $ 2,100 $ 3,540 $ 91,257 $ 34,071 Gross gains on sales, calls and maturities of securities available for sale — — 396 1,032 Gross losses on sales, calls and maturities of securities available for sale — — — — Net gains on sale of securities available for sale $ — $ — $ 396 $ 1,032 The amortized cost and estimated fair value of investment securities available-for-sale and held-to-maturity at September 30, 2023, and December 31, 2022 are shown below, grouped by the remaining time to contractual maturity dates. The expected life of investment securities may not be consistent with contractual maturity dates since the issuers of the securities might have the right to call or prepay obligations with or without penalties. Estimated Fair Value of Contractual Maturities (dollars in thousands, unaudited) September 30, 2023 Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturing within one year $ 586 $ 581 $ 145 $ 145 Maturing after one year through five years 39,384 38,576 2,458 2,369 Maturing after five years through ten years 158,089 143,086 19,021 16,780 Maturing after ten years 184,768 155,390 156,278 143,626 Securities not due at a single maturity date: Mortgage-backed securities 112,464 102,951 145,658 128,036 Collateralized loan obligations 574,051 569,793 — — Total $ 1,069,342 $ 1,010,377 $ 323,560 $ 290,956 December 31, 2022 Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturing within one year $ 12,141 $ 12,184 $ 672 $ 666 Maturing after one year through five years 21,013 20,831 2,059 2,032 Maturing after five years through ten years 119,649 111,513 19,048 17,431 Maturing after ten years 186,796 169,486 157,692 160,324 Securities not due at a single maturity date: Mortgage-backed securities 129,948 122,532 157,473 147,558 Collateralized loan obligations 515,032 498,377 — — Total $ 984,579 $ 934,923 $ 336,944 $ 328,011 At September 30, 2023, the Company’s investment portfolio included 485 municipal bonds issued by 395 different government municipalities and agencies located within 36 different states, with an aggregate fair value of $336.5 million. The largest exposure to any single municipality or agency was a combined $4.8 million (fair value) in general obligation bonds issued by the City of New York (NY). In addition, the Company owned At December 31, 2022, the Company’s investment portfolio included 501 municipal bonds issued by 406 different government municipalities and agencies located within 37 states, with an aggregate fair value of $381.0 million. The largest exposure to any single municipality or agency was a combined $5.1 million (fair value) in general obligation bonds issued by the City of New York (NY). In addition, the company owned 51 subordinated debentures issued by bank holding companies totaling $57.4 million (fair value). The Company’s investments in bonds issued by corporations, states, municipalities and political subdivisions are evaluated in accordance with Financial Institution Letter 48-2012, issued by the FDIC, “Revised Standards of Creditworthiness for Investment Securities,” and other regulatory guidance. Credit ratings are considered in our analysis only as a guide to the historical default rate associated with similarly rated bonds. There have been no significant differences in our internal analyses compared with the ratings assigned by the third-party credit rating agencies. The following table summarizes the amortized cost and fair values of general obligation and revenue bonds in the Company’s investment securities portfolio at the indicated dates, identifying the state in which the issuing municipality or agency operates for our largest geographic concentrations: Revenue and General Obligation Bonds by Location (dollars in thousands, unaudited) September 30, 2023 December 31, 2022 Amortized Fair Market Amortized Fair Market General obligation bonds Cost Value Cost Value State of issuance Texas $ 150,035 $ 131,691 $ 153,209 $ 146,667 California 64,661 55,450 65,758 60,701 Washington 20,524 5,622 21,635 21,312 Other (29 & 26 states, respectively) 96,787 100,590 102,336 100,480 Total general obligation bonds 332,007 293,353 342,938 329,160 Revenue bonds State of issuance Texas 9,194 8,051 9,216 8,840 California 3,793 3,539 3,788 3,673 Washington 4,054 3,199 4,083 3,490 Other (29 & 15 states, respectively) 32,495 28,389 37,209 35,844 Total revenue bonds 49,536 43,178 54,296 51,847 Total obligations of states and political subdivisions $ 381,543 $ 336,531 $ 397,234 $ 381,007 The revenue bonds in the Company’s investment securities portfolios were issued by government municipalities and agencies to fund public services such as utilities (water, sewer, and power), educational facilities, and general public and economic improvements. The primary sources of revenue for these bonds are delineated in the table below, which shows the amortized cost and fair market values for the largest revenue concentrations as of the indicated dates. Revenue Bonds by Type (dollars in thousands, unaudited) September 30, 2023 December 31, 2022 Amortized Fair Market Amortized Fair Market Revenue bonds Cost Value Cost Value Revenue source: Water $ 20,183 $ 17,356 $ 21,246 $ 19,977 Lease 6,082 5,608 7,035 7,250 Sewer 6,544 5,883 6,560 6,405 Sales tax revenue 4,105 3,652 4,123 3,934 Local or GTD housing 1,035 775 3,040 2,951 Other (9 and 10 sources, respectively) 11,587 9,904 12,292 11,330 Total revenue bonds $ 49,536 $ 43,178 $ 54,296 $ 51,847 Low-Income Housing Tax Credit (“LIHTC”) Fund Investments The Company has the ability to invest in limited partnerships which own housing projects that qualify for federal and/or California state tax credits, by mandating a specified percentage of low-income tenants for each project. The primary investment return comes from tax credits that flow through to investors. Because rent levels are lower than standard market rents and the projects are generally highly leveraged, each project also typically generates tax-deductible operating losses that are allocated to the limited partners for tax purposes. The Company currently has investments in five different LIHTC fund limited partnerships made in 2014, 2015, two in 2022, and one in 2023, all of which were California-focused funds that help the Company meet its obligations under the Community Reinvestment Act. We utilize the cost method of accounting for our LIHTC fund investments, under which we initially record on our balance sheet an asset that represents the total cash expected to be invested over the life of the partnership. Any commitments or contingent commitments for future investment are reflected as a liability. The income statement reflects tax credits and any other tax benefits from these investments “below the line” within our income tax provision, while the initial book value of the investment is amortized on the proportional amortization method as a “below the line” expense, over the time period in which the tax credits and tax benefits are expected to be received. As of September 30, 2023, our total LIHTC investment book balance was $14.6 million, which includes $11.2 million in remaining commitments for additional capital contributions. There were $0.4 million in tax credits derived from our LIHTC investments that were recognized during the nine months ended September 30, 2023, and “below the line” amortization expense of $0.5 million associated with those investments was recorded for the same time period. Our LIHTC investments are evaluated annually for potential impairment, and we have concluded that the carrying value of the investments is stated fairly and is not impaired. As of December 31, 2022, our total LIHTC investment book balance was $10.1 million, which includes $7.4 million in remaining commitments for additional capital contributions. There were $0.5 million in tax credits derived from our LIHTC investments that were recognized during the year ended December 31, 2022, and amortization expense of $0.5 million associated with those investments was netted against pre-tax noninterest income for the same time period. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Loans and Allowance for Credit Losses | Note 10 – Loans and Allowance for Credit Losses We adopted the new current expected credit loss accounting guidance, CECL, and all related amendments as of January 1, 2022. Similar to practice under legacy GAAP, the ACL on the loan portfolio is a valuation allowance deducted from the recorded balance in loans. However, under CECL the ACL represents principal which is not expected to be collected over the contractual life of the loans, adjusted for expected prepayment, whereas under legacy GAAP the allowance represented only losses already incurred as of the balance sheet date. The ACL is increased by a provision for credit losses charged to expense, and by principal recovered on charged-off balances. It is reduced by principal charge-offs. The amount of the allowance is based on management’s evaluation of the collectability of the loan portfolio, using information from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Adjustments are also made for changes in risk profile, credit concentrations, historical trends, and other economic conditions. The Company elected the practical expedient available under CECL to exclude accrued interest receivable from the amortized cost basis of all categorizations of loans, and resultingly did not estimate reserves on accrued interest receivable balances, as any past due interest income is reversed on a timely basis. Accrued interest receivable on loans of $5.3 million and $6.4 million at September 30, 2023 and December 31, 2022, respectively is included in other assets on the Company’s balance sheet. The following table presents loans by class as of September 30, 2023 and December 31, 2022. The December 31, 2022 balance in residential real estate loans reflects year-to-date 2022 loan purchases of $173.1 million. The majority of the disclosures in this footnote are prepared at the class level which is equivalent to the call report or call code classification. The final table in this section separates a roll forward of the Allowance for Credit Losses at the portfolio segment level. Loan Distribution (dollars in thousands, unaudited) September 30, 2023 December 31, 2022 Real estate: Residential real estate $ 418,734 $ 437,446 Commercial real estate 1,334,663 1,311,158 Other construction/land 7,368 18,412 Farmland 90,993 113,394 Total real estate 1,851,758 1,880,410 Other commercial 137,407 102,967 Mortgage warehouse lines 107,584 65,439 Consumer loans 4,061 4,124 Subtotal 2,100,810 2,052,940 Net deferred loan fees and costs 163 (123) Loans, amortized cost basis 2,100,973 2,052,817 Allowance for credit losses (23,060) (23,060) Net Loans $ 2,077,913 $ 2,029,757 The Company places loans on nonaccrual status when management has determined that the full repayment of principal and collection of contractually agreed upon interest is unlikely or when the loan in question has become delinquent more than 90 days. The Company may decide that it is appropriate to continue to accrue interest on certain loans more than 90 days delinquent if they are well-secured by collateral and collection is in process. When a loan is placed on nonaccrual status, any accrued but uncollected interest for the loan is reversed out of interest income in the period in which the loan’s status changed. For loans with an interest reserve, i.e., where loan proceeds are advanced to the borrower to make interest payments, all interest recognized from the inception of the loan is reversed when the loan is placed on nonaccrual. Once a loan is on nonaccrual status subsequent payments received from the customer are applied to principal, and no further interest income is recognized until the principal has been paid in full or until circumstances have changed such that payments are again consistently received as contractually required. Generally, loans are not restored to accrual status until the obligation is brought current and has performed in accordance with the contractual terms for a reasonable period of time, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The following tables present the amortized cost basis of nonaccrual loans, according to loan class, with and without individually evaluated reserves as of September 30, 2023 and December 31, 2022: Nonaccrual Loans (dollars in thousands, unaudited) September 30, 2023 Nonaccrual Loans With no allowance for credit loss With an allowance for credit loss Total Loans Past Due 90+ Accruing Real estate: Residential real estate $ 446 $ — $ 446 $ — Total real estate 446 — 446 — Other commercial 335 — 335 1,115 Consumer loans — — — — Total $ 781 $ — $ 781 $ 1,115 December 31, 2022 Nonaccrual Loans With no allowance for credit loss With an allowance for credit loss Total Loans Past Due 90+ Accruing Real estate: Residential real estate $ 688 $ — $ 688 $ — Farmland 15,812 — 15,812 — Total real estate 16,500 — 16,500 — Other commercial 2,909 163 3,072 940 Consumer loans — 7 7 — Total $ 19,409 $ 170 $ 19,579 $ 940 The Company did not recognize any interest on nonaccrual loans during the three and nine months ended September 30, 2023, and would have recognized an additional $0.004 million and $0.06 million, respectively, in interest income on nonaccrual loans had those loans not been designated as nonaccrual. Due to loans being placed on nonaccrual status, during the third quarter and first nine months of 2023, $0.001 million and $0.3 million respectively, of interest receivable on loans was reversed against interest income . The following table presents the amortized cost basis of collateral-dependent loans by class as of September 30, 2023, and December 31, 2022: Collateral Dependent Loans (dollars in thousands, unaudited) September 30, 2023 December 31, 2022 Amortized Cost Individual Reserves Amortized Cost Individual Reserves Real estate: Residential real estate $ 152 $ — $ 688 $ — Farmland 67 — 15,812 — Total real estate 219 — 16,500 — Other commercial — — 3,043 39 Total Loans $ 219 $ — $ 19,543 $ 39 During the first nine months of 2023 the amortized cost balance of collateral-dependent loans declined by $19.3 million due to the foreclosure and subsequent sale of Farmland and other Commercial collateral related to a single borrower during the first quarter of 2023, as well as declines resulting from upgrades and payoffs. The weighted average loan-to-value ratio of collateral dependent loans was 12% at September 30, 2023. There were no collateral dependent loans in the process of foreclosure as of September 30, 2023. The following tables presents the aging of the amortized cost basis in past-due loans, according to class, as of September 30, 2023 and December 31, 2022: Past Due Loans (dollars in thousands, unaudited) September 30, 2023 30-59 Days Past Due 60-89 Days Past Due Loans Past Due 90+ Days Total Past Due Loans not Past Due Total Loans Real estate: Residential real estate $ 51 $ — $ 98 $ 149 $ 419,791 $ 419,940 Commercial real estate 208 — — 208 1,331,686 1,331,894 Other construction/land — — — — 7,376 7,376 Farmland — — — — 91,217 91,217 Total real estate 259 — 98 357 1,850,070 1,850,427 Other commercial 469 43 1,325 1,837 136,949 138,786 Mortgage warehouse lines — — — — 107,584 107,584 Consumer loans 35 2 — 37 4,139 4,176 Total Loans $ 763 $ 45 $ 1,423 $ 2,231 $ 2,098,742 $ 2,100,973 December 31, 2022 30-59 Days Past Due 60-89 Days Past Due Loans Past Due 90+ Days Total Past Due Loans not Past Due Total Loans Real estate: Residential real estate $ 1,294 $ 87 $ 179 $ 1,560 $ 437,171 $ 438,731 Commercial real estate — — — — 1,308,328 1,308,328 Other construction/land — — — — 18,358 18,358 Farmland 522 97 15,393 16,012 97,582 113,594 Total real estate 1,816 184 15,572 17,572 1,861,439 1,879,011 Other commercial 19 134 3,718 3,871 100,264 104,135 Mortgage warehouse lines — — — — 65,439 65,439 Consumer loans 15 — — 15 4,217 4,232 Total Loans $ 1,850 $ 318 $ 19,290 $ 21,458 $ 2,031,359 $ 2,052,817 Loan Modifications The Company may agree to different types of concessions when modifying a loan. There were no modifications to borrowers experiencing financial difficulty, including principal forgiveness, rate reductions, payment deferral, or term extension, during the three or nine months ended September 30, 2023. There were no payment defaults on loans previously modified in the preceding 12 months for either of the periods ending September 30, 2023 and 2022. The Company had no additional funds committed on loans which have been modified to borrowers experiencing financial difficulty. For the three and nine months ended September 30, 2022, there were no new Troubled Debt Restructures (TDR) and no modifications of existing TDRs. The Company monitors the credit quality of loans on a continuous basis using the regulatory and accounting classifications of pass, special mention and substandard to characterize and qualify the associated credit risk. Loans classified as “loss” are immediately charged-off. The Company uses the following definitions of risk classifications: Pass – Loans listed as pass include larger non-homogeneous loans not meeting the risk rating definitions below and smaller, homogeneous loans not assessed on an individual basis. Special Mention – Loans classified as special mention have the potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard – Loans classified as substandard are those loans with clear and well-defined weaknesses such as a highly leveraged position, unfavorable financial operating results and/or trends, or uncertain repayment sources or poor financial condition, which may jeopardize ultimate recoverability of the debt. The following tables present the amortized cost of loans by credit quality classification in addition to loan vintage as of September 30, 2023 and December 31, 2022: Loan Credit Quality by Vintage (dollars in thousands, unaudited) September 30, 2023 Term Loans Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Revolving Loans Converted to Term Loans Total Loans Residential real estate Pass $ — $ 106,878 $ 232,300 $ 7,662 $ 1,998 $ 51,555 $ 13,455 $ 2,244 $ 416,092 Special mention — — — — — 2,617 51 340 3,008 Substandard — — — — — 548 124 168 840 Subtotal — 106,878 232,300 7,662 1,998 54,720 13,630 2,752 419,940 Commercial real estate Pass 94,660 276,945 58,990 486,033 51,884 256,619 23,366 — 1,248,497 Special mention 3,368 — — 42,759 3,026 6,606 — — 55,759 Substandard — — — 15,856 — 11,782 — — 27,638 Subtotal 98,028 276,945 58,990 544,648 54,910 275,007 23,366 — 1,331,894 Other construction/land Pass — — — 3,702 648 1,715 1,311 — 7,376 Substandard — — — — — — — — — Subtotal — — — 3,702 648 1,715 1,311 — 7,376 Farmland Pass 2,743 29,650 11,908 3,531 1,683 25,537 3,753 400 79,205 Special mention — — — — — 2,927 — 2,927 Substandard — — — — — 9,085 — 9,085 Subtotal 2,743 29,650 11,908 3,531 1,683 37,549 3,753 400 91,217 Other commercial Pass 29,405 11,894 3,121 6,872 4,768 10,347 62,711 3,888 133,006 Special mention — — 80 2,841 1 39 144 437 3,542 Substandard — — 60 — 33 — 1,809 336 2,238 Subtotal 29,405 11,894 3,261 9,713 4,802 10,386 64,664 4,661 138,786 Mortgage warehouse lines Pass — — — — — — 107,584 — 107,584 Subtotal — — — — — — 107,584 — 107,584 Consumer loans Pass 1,457 271 134 102 77 199 1,831 — 4,071 Special mention — — — 17 7 35 1 — 60 Substandard 43 2 — — — — — — 45 Subtotal 1,500 273 134 119 84 234 1,832 — 4,176 Total $ 131,676 $ 425,640 $ 306,593 $ 569,375 $ 64,125 $ 379,611 $ 216,139 $ 7,813 $ 2,100,973 Gross Charge-Offs 1,376 38 250 — 50 1,305 25 3,044 Loan Credit Quality by Vintage (dollars in thousands, unaudited) December 31, 2022 Term Loans Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Revolving Loans Converted to Term Loans Total Loans Residential real estate Pass $ 107,744 $ 239,044 $ 7,814 $ 2,066 $ 10,723 $ 49,282 $ 15,970 $ 1,825 $ 434,468 Special mention — — — — 89 1,584 36 970 2,679 Substandard — — — — 31 1,201 — 352 1,584 Subtotal 107,744 239,044 7,814 2,066 10,843 52,067 16,006 3,147 438,731 Commercial real estate Pass 276,728 62,764 474,494 56,419 82,595 221,447 22,158 — 1,196,605 Special mention 296 — 73,002 3,068 — 7,299 — — 83,665 Substandard — — 14,733 — 7,144 6,181 — — 28,058 Subtotal 277,024 62,764 562,229 59,487 89,739 234,927 22,158 — 1,308,328 Other construction/land Pass — — 14,896 734 955 1,010 693 — 18,288 Substandard — — 70 — — — — — 70 Subtotal — — 14,966 734 955 1,010 693 — 18,358 Farmland Pass 30,346 12,941 4,504 1,819 9,418 24,175 3,976 420 87,599 Special mention — — — — 7,045 3,042 — — 10,087 Substandard — — — — 3,417 12,491 — — 15,908 Subtotal 30,346 12,941 4,504 1,819 19,880 39,708 3,976 420 113,594 Other commercial Pass 7,478 6,350 7,913 6,028 5,178 10,579 47,998 167 91,691 Special mention — 129 3,067 44 — 1,616 3,773 660 9,289 Substandard 1 2,798 28 — 28 133 — 167 3,155 Subtotal 7,479 9,277 11,008 6,072 5,206 12,328 51,771 994 104,135 Mortgage warehouse lines Pass — — — — — — 65,439 — 65,439 Subtotal — — — — — — 65,439 — 65,439 Consumer loans Pass 1,162 203 138 127 4 375 2,148 — 4,157 Special mention 5 — 35 16 — — 11 — 67 Substandard 8 — — — — — — — 8 Subtotal 1,175 203 173 143 4 375 2,159 — 4,232 Total $ 731,138 $ 399,934 $ 1,182,393 $ 132,361 $ 237,201 $ 616,060 $ 189,029 $ 4,981 $ 2,052,817 CECL replaces the legacy accounting for loans designated as purchased credit impaired (“PCI”) with loans designated as purchased credit deteriorated (“PCD”). PCD loans are loans acquired or purchased, which as of acquisition, had evidence of more than insignificant credit deterioration since origination. Due to the immaterial balance in the Company’s PCI loans as of December 31, 2021 management elected not to transition these loans into the PCD designation. As of September 30, 2023 the Company had loans categorized as PCD. As noted in footnote 3, on January 1, 2022 the Company implemented CECL and increased our ACL, previously the allowance for loan losses, with a $9.5 million cumulative adjustment. The Company’s ACL is calculated quarterly, with any difference in the calculated ACL and the recorded ACL trued-up through an entry to the provision for credit losses. For purposes of estimating the Company’s ACL, Management generally evaluates collectively evaluated loans by Federal Call code in order to group loans with similar risk characteristics together, however management has grouped loans in selected call codes together in determining portfolio segments, due to similar risk characteristics and reserve methodologies used for certain call code classifications. Management calculates the quantitative portion of collectively evaluated reserves for all loan categories, with the exception of Farmland, Agricultural Production and Consumer loans, using a discounted cash flow (“DCF”) methodology. For purposes of calculating the quantitative portion of collectively evaluated reserves on Farmland, Agricultural Production, and Consumer categories a Remaining Life methodology is utilized. The DCF quantitative reserve methodology incorporates the consideration of probability of default (“PD”) and loss given default (“LGD”) estimates to estimate periodic losses. The PD estimates are derived through the application of reasonable and supportable economic forecasts to call code specific regression models, derived from the consideration of historical bank-specific and peer loss-rate data. The loss rate data has been regressed against benchmark economic indicators, for which reasonable and supportable forecasts exist, in the development of the call-code specific regression models. Regression models are generally refreshed on an annual basis, in order to pull in more recent loss rate data. Reasonable and supportable forecasts of the selected economic metric are then input into the regression model to calculate an expected default rate. The expected default rates are then applied to expected monthly loan balances estimated through the consideration of contractual repayment terms and expected prepayments. The Company utilizes a four-quarter forecast period, after which the expected default rates revert to the historical average for each call code, over a four-quarter reversion period, on a straight-line basis. The prepayment assumptions applied to expected cash flow over the contractual life of the loans are estimated based on historical, bank-specific experience, peer data and the consideration of current and expected conditions and circumstances including the level of interest rates. The prepayment assumptions may be updated by Management in the event that changing conditions impact Management’s estimate or additional historical data gathered has resulted in the need for a reevaluation. LGD utilized in the DCF is derived from the application of the Frye-Jacobs theory which relates LGD to PD based on historical peer data, as calculated by a third-party. Economic forecasts are considered over a four-quarter forecast period, with reversion to mean occurring on a straight-line basis over four quarters. The call code regression models utilized upon implementation of CECL on January 1, 2022, and as of September 30, 2023, were identical, and relied upon reasonable and supportable forecasts of the National Unemployment Rate. Management selected the National Unemployment Rate as the driver of quantitative portion of collectively reserves on loan classes reliant upon the DCF methodology, primarily as a result of high correlation coefficients identified in regression modeling, the availability of forecasts including the quarterly FOMC forecast, and given the widespread familiarity of stakeholders with this economic metric. The quantitative reserves for Farmland, Agricultural Production and Consumer loans are calculated using a Remaining Life methodology where average historical bank specific and peer loss rates are applied to expected loan balances over an estimated remaining life of loans in calculation of the quantitative portion of collectively evaluated loans in these classes. The estimated remaining life is calculated using historical bank-specific loan attrition data. For the Farmland, Agricultural Production and Consumer classes of loans, reasonable and supportable forecasts of the National Unemployment rate, real GDP and the housing price index are considered through estimation of qualitative reserves. Management recognizes that there are additional factors impacting risk of loss in the loan portfolio beyond what is captured in the quantitative portion of reserves on collectively evaluated loans. As current and expected conditions, may vary compared with conditions over the historical lookback period, which is utilized in the calculation of quantitative reserves, management considers whether additional or reduced reserve levels on collectively evaluated loans may be warranted given the consideration of a variety of qualitative factors. Several of the following qualitative factors (“Q-factors”) considered by management reflect the legacy regulatory guidance on Q-factors, whereas several others represent factors unique to the Company or unique to the current time period. ● Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices ● Changes in international, regional and local economic and business conditions, and developments that affect the collectability of the portfolio, as reflected in forecasts of the Housing Price Index, Real GDP and the National Unemployment Rate (Farmland & Agricultural Production and Consumer segments only) ● Changes in the nature and volume of the loan portfolio ● Changes in the experience, ability, and depth of lending management and other relevant staff ● Changes in the volume and severity of past due, nonaccruals loans, and adversely classified loans, as reflected in changes of the relative level of loans classified as substandard and special mention ● Changes in the quality of the Bank’s loan review processes ● Changes in the value of underlying collateral for loans not identified as collateral dependent ● Changes in loan categorization concentrations ● Other external factors, which include, the influence of peer data on estimated quantitative reserves, residual COVID-19 related risk, expected impact of current and expected inflationary environment, reliance on the National Unemployment rate as opposed to the California unemployment rate in the calculation of quantitative reserves, the expected impact of current and expected geo-political conditions The qualitative portion of the Company’s reserves on collectively evaluated loans are calculated using a combination of numeric frameworks and management judgement, to determine risk categorizations in each of the Q-factors presented above. The amount of qualitative reserves is also contingent upon the historical peer, life-of-loan-equivalent, loss rate ranges and the relative weighting of Q-factors according to management’s judgement. Although collectively evaluated reserves are generally calculated separately at the call code or loan class level, management has grouped loan classes with similar risk characteristics into the following portfolio segments: Residential Real Estate, Commercial Real Estate, Farmland & Agricultural Production, Commercial & Industrial, Mortgage Warehouse and Consumer loans. Loans secured by Residential Real Estate have a different profile from loans secured by Commercial Real Estate. Generally, the borrowers for Residential Real Estate loans are consumers whereas borrowers for Commercial Real Estate are often businesses. The COVID-19 pandemic illustrated how these different categories of real estate loans were subject to different risks, which was exacerbated by the widespread work-from-home model adopted by many companies during and since the pandemic. Farmland and Agricultural Production loans are included in a single segment as these loans are often times to the same borrowers, facing the same risks relating to commodity prices, water supply and drought conditions in addition to other environmental concerns. Commercial & Industrial loans are separated into a unique segment given the uniqueness of these loans, which are often revolving and secured by other business assets as opposed to real estate. Mortgage warehouse loans are also unique in the Company’s portfolio and warrant separate presentation as an individual portfolio segment, given the specific nature of these constantly revolving lines to mortgage originators and also attributable to a very limited loss history, even after consideration of peer data. Finally, the Company splits out Consumer loans as a separate segment as a result of the small balance, homogeneous terms that characterize these loans. Management individually evaluates loans that do not share risk characteristics with other loans when estimating reserves. As of September 30, 2023, the only loans that Management considered to have different risk characteristics from other loans sharing the same Federal Call Report code were loans designated nonaccrual. The following tables present the activity in the allowance for credit losses by portfolio segment for the quarters ended September 30, 2023 and 2022: Allowance for Credit Losses and Recorded Investment in Financing Receivables (dollars in thousands, unaudited) Residential Real Estate Commercial Real Estate Farmland & Agricultural Production Commercial & Industrial Mortgage Warehouse Consumer Total Allowance for credit losses: Balance, June 30, 2023 $ 3,037 $ 17,373 $ 497 $ 1,676 $ 144 $ 283 $ 23,010 Charge-offs — — — (116) — (425) (541) Recoveries — — 54 170 — 250 474 Provision for credit losses (115) 501 40 (481) (36) 208 117 Ending allowance balance: $ 2,922 $ 17,874 $ 591 $ 1,249 $ 108 $ 316 $ 23,060 Residential Real Estate Commercial Real Estate Farmland & Agricultural Production Commercial & Industrial Mortgage Warehouse Consumer Total Allowance for credit losses: Balance, June 30, 2022 $ 3,593 $ 17,319 $ 376 $ 1,133 $ 41 $ 340 $ 22,802 Charge-offs — — — (85) — (371) (456) Recoveries — — — 36 — 196 232 Provision for credit losses (262) 249 1,034 67 6 118 1,212 Ending allowance balance: $ 3,331 $ 17,568 $ 1,410 $ 1,151 $ 47 $ 283 $ 23,790 There were no significant changes in the Company’s loan portfolio ACL in the third quarter of 2023. The following tables present the activity in the allowance for credit losses by portfolio segment for the nine months ended September 30, 2023 and 2022: Allowance for Credit Losses and Recorded Investment in Financing Receivables (dollars in thousands, unaudited) Residential Real Estate Commercial Real Estate Farmland & Agricultural Production Commercial & Industrial Mortgage Warehouse Consumer Total Allowance for credit losses: Balance, December 31, 2022 $ 3,251 $ 17,732 $ 458 $ 1,233 $ 72 $ 314 $ 23,060 Charge-offs — — (1,277) (476) — (1,292) (3,045) Recoveries 205 17 1,370 239 — 770 2,601 Provision for credit losses (534) 125 40 253 36 524 444 Ending allowance balance: $ 2,922 $ 17,874 $ 591 $ 1,249 $ 108 $ 316 $ 23,060 Residential Real Estate Commercial Real Estate Farmland & Agricultural Production Commercial & Industrial Mortgage Warehouse Consumer Total Allowance for credit losses: Balance, December 31, 2021 $ 1,909 $ 9,052 $ 1,202 $ 1,060 $ 512 $ 521 $ 14,256 Impact of adopting ASC 326 611 9,628 (480) 358 (421) (242) 9,454 Charge-offs — (1,911) (2,170) (244) — (984) (5,309) Recoveries 99 259 — 118 — 553 1,029 Provision for credit losses 712 539 2,858 (141) (44) 436 4,360 Ending allowance balance: $ 3,331 $ 17,567 $ 1,410 $ 1,151 $ 47 $ 284 $ 23,790 There were no significant changes in the Company’s loan portfolio ACL in the first nine months of 2023. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill [Abstract] | |
Goodwill | Note 11 – Goodwill The following table discloses changes in the carrying value of goodwill for the nine months ended September 30, 2023 and 2022 (dollars in thousands, unaudited): Nine months ended September 30, 2023 2022 Net carrying value at beginning of period $ 27,357 $ 27,357 Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. Bank of the Sierra (the “Bank”) is the only subsidiary of the Company that meets the materiality criteria necessary to be deemed an operating segment, and because the Company exists primarily for the purpose of holding the stock of the Bank we have determined that only one unified operating segment or reporting unit (the consolidated Company) exists. The fair value of the consolidated Company is its market capitalization, as determined by quoted prices in active markets, plus a sales control premium, as determined by analyzing recent mergers and acquisitions. If the Company’s market capitalization plus a control premium exceeds recorded shareholders’ equity (the book value), it can be reasonably presumed that no impairment exists. Therefore, it was determined that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment at September 30, 2023. |
Borrowings and Other Arrangemen
Borrowings and Other Arrangements | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings and Other Arrangements | Note 12 – Borrowings and Other Arrangements The following table summarizes the Company’s other borrowings as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Weighted Weighted Average Average Balance Rate Balance Rate Overnight Fed funds purchased (1) $ 135,000 5.12% $ 125,000 4.08% Short-term FHLB advance (2) 102,000 5.35% 94,000 3.44% Long-term FHLB advance (2) 80,000 3.91% — — Total other borrowings $ 317,000 5.00% $ 219,000 3.67% The Company has established secured and unsecured lines of credit under which it may borrow funds from time to time on a term or overnight basis from the FHLB, FRB, and other correspondent banks. Federal Funds Purchased (1) Secured Federal Home Loan Bank Borrowings (2) Federal Reserve Line of Credit Repurchase Agreements – Long-Term Debt Subordinated Debentures |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Note 13 – Revenue Recognition The Company utilizes the guidance found in ASU 2014-09, Revenue from Contracts with Customers (ASC 606), when accounting for certain noninterest income. The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Sufficient information should be provided to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company’s revenue streams that are within the scope of and accounted for under Topic 606 include service charges on deposit accounts, debit card interchange fees, and fees levied for other services the Company provides its customers. The guidance does not apply to revenue associated with financial instruments such as loans and investments, and other noninterest income such as loan servicing fees and earnings on bank-owned life insurance, which are accounted for on an accrual basis under other provisions of GAAP. All of the Company’s revenue from contracts within the scope of ASC 606 is recognized when incurred as noninterest income and gains on the sale of OREO which is classified as noninterest expense. These gains were immaterial for each of the three and nine months ended September 30, 2023 and 2022. The following table presents the Company’s sources of noninterest income for the three and nine month periods ended September 30, 2023 and 2022. Items outside the scope of ASC 606 are noted as such (dollars in thousands, unaudited). For the three months ended September 30, Nine months ended September 30, For the year ended December 31, 2023 2022 2023 2022 2022 Noninterest income Service charges on deposits Returned item and overdraft fees $ 1,375 $ 1,273 $ 3,929 $ 3,973 $ 5,227 Other service charges on deposits 2,642 2,494 7,057 7,033 9,331 Debit card interchange income 2,038 2,241 6,141 6,458 8,533 Gain (loss) on limited partnerships (1) — 64 — (162) 253 Dividends on equity investments (1) 275 189 772 619 843 Unrealized (losses) gains recognized on equity investments (1) — — (291) (332) (332) Net gains on sale of securities (1) — — 396 1,032 1,487 Other (1) 1,432 351 4,351 4,493 5,428 Total noninterest income $ 7,762 $ 6,612 $ 22,355 $ 23,114 $ 30,770 Percentage of noninterest income not within scope of ASC 606. 21.99% 9.13% 23.39% 24.44% 24.96% (1) Not within scope of ASC 606. Revenue streams are not related to contracts with customers and are accounted for under other provisions of GAAP. With regard to noninterest income associated with customer contracts, the Company has determined that transaction prices are fixed, and performance obligations are satisfied as services are rendered, thus there is little or no judgment involved in the timing of revenue recognition under contracts that are within the scope of ASC 606. |
Share Based Compensation (Table
Share Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of restricted stock award activity | Nine months ended September 30, 2023 2022 Shares Weighted Average Grant-Date Fair Value Shares Weighted Average Grant-Date Fair Value Unvested shares, January 1, 175,619 $ 21.42 165,131 $ 21.72 Granted 29,064 21.50 — — Vested (23,675) 19.17 (37,748) 19.20 Forfeited (4,370) 22.79 (1,212) 27.16 Unvested shares, September 30, 176,638 $ 21.72 126,171 $ 22.45 |
Schedule of stock option activity | The Company’s stock option activity during the nine months ended September 30, 2023 and 2022 are summarized below (dollars in thousands, except per share data, unaudited): Nine months ended September 30, 2023 2022 Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (1) Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (1) Outstanding at January 1, 352,249 $ 25.06 $ 348 415,870 $ 24.15 $ 1,338 Exercised — $ — $ — (5,600) $ 11.22 $ 56 Forfeited/Expired (8,800) $ 26.56 $ 3 (32,381) $ 27.32 $ — Outstanding at September 30, 343,449 $ 25.02 4.48 $ 167 377,889 $ 24.07 5.13 $ 470 Exercisable at September 30, 319,649 $ 24.86 4.35 $ 167 336,489 $ 23.69 4.88 $ 470 (1) The aggregate intrinsic value of stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on September 30, 2023. This amount changes based on changes in the market value of the Company's stock. |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of financial instruments represent off balance sheet credit risk | The following financial instruments represent off-balance-sheet credit risk (dollars in thousands): September 30, 2023 December 31, 2022 Commitments to extend credit $ 543,722 $ 889,517 Standby letters of credit $ 5,124 $ 6,037 |
Fair Value Disclosures and Re_2
Fair Value Disclosures and Reporting and Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying amount and estimated fair values of financial instruments | Estimated fair values for the Company’s financial instruments are as follows, as of the dates noted: Fair Value of Financial Instruments (dollars in thousands, unaudited) September 30, 2023 Fair Value Measurements Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Financial assets: Cash and cash equivalents $ 88,542 $ 88,542 $ — $ — $ 88,542 Investment securities available-for-sale 1,010,377 — 958,142 52,235 1,010,377 Investment securities held-to-maturity 323,544 — 290,956 — 290,956 Loans, net held for investment 2,077,913 — — 1,933,957 1,933,957 Financial liabilities: Deposits 2,869,720 1,059,878 1,811,832 — 2,871,710 Repurchase agreements 94,865 — 94,865 — 94,865 Other borrowings 317,000 — 314,364 — 314,364 Long-term borrowings 49,281 — 41,122 — 41,122 Subordinated debentures 35,615 — 31,183 — 31,183 December 31, 2022 Fair Value Measurements Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Financial assets: Cash and cash equivalents $ 77,131 $ 77,131 $ — $ — $ 77,131 Investment securities available for sale 934,923 — 877,488 57,435 934,923 Investment securities held-to-maturity 336,881 — 328,011 — 328,011 Loans, net held for investment 2,011,616 — — 1,909,822 1,909,822 Individually evaluated collateral dependent loans 18,141 — 18,141 — 18,141 Financial liabilities: Deposits 2,846,164 1,088,199 1,756,443 — 2,844,642 Repurchase agreements 109,169 — 109,169 — 109,169 Other borrowings 219,000 — 219,000 — 219,000 Long-term borrowings 49,214 — 42,775 — 42,775 Subordinated debentures 35,481 — 37,171 — 37,171 |
Schedule of assets reported at fair value on a recurring basis | Assets reported at fair value on a recurring basis are summarized below: Fair Value Measurements – Recurring (dollars in thousands, unaudited) Fair Value Measurements at September 30, 2023, using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Realized Gain/(Loss) (Level 3) Securities: U.S. government agencies $ — $ 107,084 $ — $ 107,084 $ — Mortgage-backed securities — 102,951 — 102,951 — State and political subdivisions — 178,314 — 178,314 — Corporate bonds — — 52,235 52,235 — Collateralized loan obligations — 569,793 — 569,793 — Total available-for-sale securities $ — $ 958,142 $ 52,235 $ 1,010,377 $ — Fair Value Measurements at December 31, 2022, using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Realized Gain/(Loss) (Level 3) Securities: U.S. government agencies $ — $ 50,599 $ — $ 50,599 $ — Mortgage-backed securities — 122,532 — 122,532 — State and political subdivisions — 205,980 — 205,980 — Corporate bonds — — 57,435 57,435 — Collateralized loan obligations — 498,377 — 498,377 — Total available-for-sale securities $ — $ 877,488 $ 57,435 $ 934,923 $ — |
Reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | Fair Value Measurements - Level 3 Recurring (dollars in thousands, unaudited) Collateralized Loan Obligations Corporate Bonds 2023 2022 2023 2022 Balance of recurring Level 3 assets at January 1, $ — $ 195,707 $ 57,435 $ 27,530 Total gains or losses for the period: Included in other comprehensive income — — (5,200) — Purchases — — — 26,806 Transfers out of Level 3 — (195,707) — — Balance of recurring Level 3 assets at September 30, $ — $ — $ 52,235 $ 54,336 |
Schedule of assets reported at fair value on a nonrecurring basis | Assets reported at fair value on a nonrecurring basis at September 30, 2022 are summarized in the table below: Fair Value Measurements – Nonrecurring (dollars in thousands, unaudited) Fair Value Measurements at December 31, 2022, using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Individually evaluated collateral dependent loans Real estate: Farmland $ — $ 15,391 $ — $ 15,391 Total real estate — 15,391 — 15,391 Other commercial — 2,750 — 2,750 Consumer loans — — — — Total collateral dependent loans $ — $ 18,141 $ — $ 18,141 Foreclosed assets $ — $ — $ — $ — Total assets measured on a nonrecurring basis $ — $ 18,141 $ — $ 18,141 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost, estimated fair value, and allowance for credit losses of available-for-sale and held-to-maturity investment securities | The amortized cost, estimated fair value, and allowance for credit losses of available-for-sale and held-to-maturity investment securities are as follows: Amortized Cost And Estimated Fair Value (dollars in thousands, unaudited) September 30, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Estimated Fair Value Available-for-sale U.S. government agencies $ 108,385 $ — $ (1,301) $ — $ 107,084 Mortgage-backed securities 112,464 30 (9,543) — 102,951 State and political subdivisions 209,198 12 (30,896) — 178,314 Corporate bonds 65,244 — (13,009) — 52,235 Collateralized loan obligations 574,051 838 (5,096) — 569,793 Total available-for-sale securities $ 1,069,342 $ 880 $ (59,845) $ — $ 1,010,377 Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Estimated Fair Value Allowance for Credit Losses Held-to-maturity U.S. government agencies $ 5,557 $ — $ (854) $ 4,703 $ — Mortgage-backed securities 145,658 — (17,622) 128,036 — State and political subdivisions 172,345 16 (14,144) 158,217 (16) Total held-to-maturity securities $ 323,560 $ 16 $ (32,620) $ 290,956 $ (16) December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Estimated Fair Value Available-for-sale U.S. government agencies $ 50,625 $ 49 $ (75) $ — $ 50,599 Mortgage-backed securities 129,948 — (7,416) — 122,532 State and political subdivisions 223,810 607 (18,437) — 205,980 Corporate bonds 65,164 10 (7,739) — 57,435 Collateralized loan obligations 515,032 60 (16,715) — 498,377 Total available-for-sale securities $ 984,579 $ 726 $ (50,382) $ — $ 934,923 Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Estimated Fair Value Allowance for Credit Losses Held-to-maturity U.S. government agencies $ 6,047 $ — $ (621) $ 5,426 $ — Mortgage-backed securities 157,473 — (9,915) 147,558 — State and political subdivisions 173,424 1,603 — 175,027 (63) Total held-to-maturity securities $ 336,944 $ 1,603 $ (10,536) $ 328,011 $ (63) |
Schedule of amortized cost of held-to-maturity municipal bonds aggregated by NRSRO credit rating | Held-To-Maturity by Credit Rating (dollars in thousands, unaudited) Held-To-Maturity September 30, 2023 December 31, 2022 State and political subdivisions AAA/Aaa $ 57,802 $ 57,833 AA/Aa 113,054 115,040 A/A2 544 551 Not rated 946 — Total $ 172,346 $ 173,424 |
Schedule of available-for-sale debt securities that were in an unrealized loss position | The following table summarizes available-for-sale debt securities that were in an unrealized loss position for which an ACL has not been recorded, based on the length of time the individual securities have been in an unrealized loss position, including the number of available-for-sale debt securities in an unrealized loss position, as of the dates indicated below. Investment Portfolio - Unrealized Losses (dollars in thousands, unaudited) September 30, 2023 Less than twelve months Twelve months or more Total Number of Securities Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Available-for-sale U.S. government agencies 29 $ (1,180) $ 103,205 $ (121) $ 3,879 $ (1,301) $ 107,084 Mortgage-backed securities 332 — 27 (9,543) 98,911 (9,543) 98,938 State and political subdivisions 303 (2,601) 50,842 (28,295) 119,290 (30,896) 170,132 Corporate bonds 51 (407) 5,089 (12,602) 47,146 (13,009) 52,235 Collateralized loan obligations 53 (77) 53,389 (5,019) 391,724 (5,096) 445,113 Total available-for-sale 768 $ (4,265) $ 212,552 $ (55,580) $ 660,950 $ (59,845) $ 873,502 December 31, 2022 Less than twelve months Twelve months or more Total Number of Securities Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Available-for-sale U.S. government agencies 8 $ (75) $ 27,550 $ — $ — $ (75) $ 27,550 Mortgage-backed securities 340 (7,108) 119,260 (308) 3,227 (7,416) 122,487 State and political subdivisions 252 (15,732) 147,635 (2,705) 9,807 (18,437) 157,442 Corporate bonds 52 (7,644) 54,636 (95) 405 (7,739) 55,041 Collateralized loan obligations 60 (10,152) 309,102 (6,563) 169,743 (16,715) 478,845 Total available-for-sale 712 $ (40,711) $ 658,183 $ (9,671) $ 183,182 $ (50,382) $ 841,365 |
Schedule of gross realized gains and losses as well as gross proceeds from the sales of securities | The table below summarizes the Company’s gross realized gains and losses as well as gross proceeds from the sales of securities, for the periods indicated: Investment Portfolio - Realized Gains/(Losses) (dollars in thousands, unaudited) Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Proceeds from sales, calls and maturities of securities available for sale $ 2,100 $ 3,540 $ 91,257 $ 34,071 Gross gains on sales, calls and maturities of securities available for sale — — 396 1,032 Gross losses on sales, calls and maturities of securities available for sale — — — — Net gains on sale of securities available for sale $ — $ — $ 396 $ 1,032 |
Schedule of amortized cost and estimated fair value of investment securities available-for-sale and held-to-maturity grouped by the remaining time to contractual maturity dates | Estimated Fair Value of Contractual Maturities (dollars in thousands, unaudited) September 30, 2023 Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturing within one year $ 586 $ 581 $ 145 $ 145 Maturing after one year through five years 39,384 38,576 2,458 2,369 Maturing after five years through ten years 158,089 143,086 19,021 16,780 Maturing after ten years 184,768 155,390 156,278 143,626 Securities not due at a single maturity date: Mortgage-backed securities 112,464 102,951 145,658 128,036 Collateralized loan obligations 574,051 569,793 — — Total $ 1,069,342 $ 1,010,377 $ 323,560 $ 290,956 December 31, 2022 Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturing within one year $ 12,141 $ 12,184 $ 672 $ 666 Maturing after one year through five years 21,013 20,831 2,059 2,032 Maturing after five years through ten years 119,649 111,513 19,048 17,431 Maturing after ten years 186,796 169,486 157,692 160,324 Securities not due at a single maturity date: Mortgage-backed securities 129,948 122,532 157,473 147,558 Collateralized loan obligations 515,032 498,377 — — Total $ 984,579 $ 934,923 $ 336,944 $ 328,011 |
Schedule of amortized cost and fair values of general obligation and revenue bonds | The following table summarizes the amortized cost and fair values of general obligation and revenue bonds in the Company’s investment securities portfolio at the indicated dates, identifying the state in which the issuing municipality or agency operates for our largest geographic concentrations: Revenue and General Obligation Bonds by Location (dollars in thousands, unaudited) September 30, 2023 December 31, 2022 Amortized Fair Market Amortized Fair Market General obligation bonds Cost Value Cost Value State of issuance Texas $ 150,035 $ 131,691 $ 153,209 $ 146,667 California 64,661 55,450 65,758 60,701 Washington 20,524 5,622 21,635 21,312 Other (29 & 26 states, respectively) 96,787 100,590 102,336 100,480 Total general obligation bonds 332,007 293,353 342,938 329,160 Revenue bonds State of issuance Texas 9,194 8,051 9,216 8,840 California 3,793 3,539 3,788 3,673 Washington 4,054 3,199 4,083 3,490 Other (29 & 15 states, respectively) 32,495 28,389 37,209 35,844 Total revenue bonds 49,536 43,178 54,296 51,847 Total obligations of states and political subdivisions $ 381,543 $ 336,531 $ 397,234 $ 381,007 The revenue bonds in the Company’s investment securities portfolios were issued by government municipalities and agencies to fund public services such as utilities (water, sewer, and power), educational facilities, and general public and economic improvements. The primary sources of revenue for these bonds are delineated in the table below, which shows the amortized cost and fair market values for the largest revenue concentrations as of the indicated dates. Revenue Bonds by Type (dollars in thousands, unaudited) September 30, 2023 December 31, 2022 Amortized Fair Market Amortized Fair Market Revenue bonds Cost Value Cost Value Revenue source: Water $ 20,183 $ 17,356 $ 21,246 $ 19,977 Lease 6,082 5,608 7,035 7,250 Sewer 6,544 5,883 6,560 6,405 Sales tax revenue 4,105 3,652 4,123 3,934 Local or GTD housing 1,035 775 3,040 2,951 Other (9 and 10 sources, respectively) 11,587 9,904 12,292 11,330 Total revenue bonds $ 49,536 $ 43,178 $ 54,296 $ 51,847 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Schedule of loans by class | Loan Distribution (dollars in thousands, unaudited) September 30, 2023 December 31, 2022 Real estate: Residential real estate $ 418,734 $ 437,446 Commercial real estate 1,334,663 1,311,158 Other construction/land 7,368 18,412 Farmland 90,993 113,394 Total real estate 1,851,758 1,880,410 Other commercial 137,407 102,967 Mortgage warehouse lines 107,584 65,439 Consumer loans 4,061 4,124 Subtotal 2,100,810 2,052,940 Net deferred loan fees and costs 163 (123) Loans, amortized cost basis 2,100,973 2,052,817 Allowance for credit losses (23,060) (23,060) Net Loans $ 2,077,913 $ 2,029,757 |
Schedule of amortized cost basis of nonaccrual loans | Nonaccrual Loans (dollars in thousands, unaudited) September 30, 2023 Nonaccrual Loans With no allowance for credit loss With an allowance for credit loss Total Loans Past Due 90+ Accruing Real estate: Residential real estate $ 446 $ — $ 446 $ — Total real estate 446 — 446 — Other commercial 335 — 335 1,115 Consumer loans — — — — Total $ 781 $ — $ 781 $ 1,115 December 31, 2022 Nonaccrual Loans With no allowance for credit loss With an allowance for credit loss Total Loans Past Due 90+ Accruing Real estate: Residential real estate $ 688 $ — $ 688 $ — Farmland 15,812 — 15,812 — Total real estate 16,500 — 16,500 — Other commercial 2,909 163 3,072 940 Consumer loans — 7 7 — Total $ 19,409 $ 170 $ 19,579 $ 940 |
Schedule of amortized cost basis of collateral-dependent loans by class | Collateral Dependent Loans (dollars in thousands, unaudited) September 30, 2023 December 31, 2022 Amortized Cost Individual Reserves Amortized Cost Individual Reserves Real estate: Residential real estate $ 152 $ — $ 688 $ — Farmland 67 — 15,812 — Total real estate 219 — 16,500 — Other commercial — — 3,043 39 Total Loans $ 219 $ — $ 19,543 $ 39 |
Schedule of aging of the amortized cost basis in past-due loans | Past Due Loans (dollars in thousands, unaudited) September 30, 2023 30-59 Days Past Due 60-89 Days Past Due Loans Past Due 90+ Days Total Past Due Loans not Past Due Total Loans Real estate: Residential real estate $ 51 $ — $ 98 $ 149 $ 419,791 $ 419,940 Commercial real estate 208 — — 208 1,331,686 1,331,894 Other construction/land — — — — 7,376 7,376 Farmland — — — — 91,217 91,217 Total real estate 259 — 98 357 1,850,070 1,850,427 Other commercial 469 43 1,325 1,837 136,949 138,786 Mortgage warehouse lines — — — — 107,584 107,584 Consumer loans 35 2 — 37 4,139 4,176 Total Loans $ 763 $ 45 $ 1,423 $ 2,231 $ 2,098,742 $ 2,100,973 December 31, 2022 30-59 Days Past Due 60-89 Days Past Due Loans Past Due 90+ Days Total Past Due Loans not Past Due Total Loans Real estate: Residential real estate $ 1,294 $ 87 $ 179 $ 1,560 $ 437,171 $ 438,731 Commercial real estate — — — — 1,308,328 1,308,328 Other construction/land — — — — 18,358 18,358 Farmland 522 97 15,393 16,012 97,582 113,594 Total real estate 1,816 184 15,572 17,572 1,861,439 1,879,011 Other commercial 19 134 3,718 3,871 100,264 104,135 Mortgage warehouse lines — — — — 65,439 65,439 Consumer loans 15 — — 15 4,217 4,232 Total Loans $ 1,850 $ 318 $ 19,290 $ 21,458 $ 2,031,359 $ 2,052,817 |
Schedule of amortized cost of loans by credit quality classification in addition to loan vintage | Loan Credit Quality by Vintage (dollars in thousands, unaudited) September 30, 2023 Term Loans Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Revolving Loans Converted to Term Loans Total Loans Residential real estate Pass $ — $ 106,878 $ 232,300 $ 7,662 $ 1,998 $ 51,555 $ 13,455 $ 2,244 $ 416,092 Special mention — — — — — 2,617 51 340 3,008 Substandard — — — — — 548 124 168 840 Subtotal — 106,878 232,300 7,662 1,998 54,720 13,630 2,752 419,940 Commercial real estate Pass 94,660 276,945 58,990 486,033 51,884 256,619 23,366 — 1,248,497 Special mention 3,368 — — 42,759 3,026 6,606 — — 55,759 Substandard — — — 15,856 — 11,782 — — 27,638 Subtotal 98,028 276,945 58,990 544,648 54,910 275,007 23,366 — 1,331,894 Other construction/land Pass — — — 3,702 648 1,715 1,311 — 7,376 Substandard — — — — — — — — — Subtotal — — — 3,702 648 1,715 1,311 — 7,376 Farmland Pass 2,743 29,650 11,908 3,531 1,683 25,537 3,753 400 79,205 Special mention — — — — — 2,927 — 2,927 Substandard — — — — — 9,085 — 9,085 Subtotal 2,743 29,650 11,908 3,531 1,683 37,549 3,753 400 91,217 Other commercial Pass 29,405 11,894 3,121 6,872 4,768 10,347 62,711 3,888 133,006 Special mention — — 80 2,841 1 39 144 437 3,542 Substandard — — 60 — 33 — 1,809 336 2,238 Subtotal 29,405 11,894 3,261 9,713 4,802 10,386 64,664 4,661 138,786 Mortgage warehouse lines Pass — — — — — — 107,584 — 107,584 Subtotal — — — — — — 107,584 — 107,584 Consumer loans Pass 1,457 271 134 102 77 199 1,831 — 4,071 Special mention — — — 17 7 35 1 — 60 Substandard 43 2 — — — — — — 45 Subtotal 1,500 273 134 119 84 234 1,832 — 4,176 Total $ 131,676 $ 425,640 $ 306,593 $ 569,375 $ 64,125 $ 379,611 $ 216,139 $ 7,813 $ 2,100,973 Gross Charge-Offs 1,376 38 250 — 50 1,305 25 3,044 Loan Credit Quality by Vintage (dollars in thousands, unaudited) |
Schedule of activity in the allowance for credit losses by portfolio segment | Allowance for Credit Losses and Recorded Investment in Financing Receivables (dollars in thousands, unaudited) Residential Real Estate Commercial Real Estate Farmland & Agricultural Production Commercial & Industrial Mortgage Warehouse Consumer Total Allowance for credit losses: Balance, June 30, 2023 $ 3,037 $ 17,373 $ 497 $ 1,676 $ 144 $ 283 $ 23,010 Charge-offs — — — (116) — (425) (541) Recoveries — — 54 170 — 250 474 Provision for credit losses (115) 501 40 (481) (36) 208 117 Ending allowance balance: $ 2,922 $ 17,874 $ 591 $ 1,249 $ 108 $ 316 $ 23,060 Residential Real Estate Commercial Real Estate Farmland & Agricultural Production Commercial & Industrial Mortgage Warehouse Consumer Total Allowance for credit losses: Balance, June 30, 2022 $ 3,593 $ 17,319 $ 376 $ 1,133 $ 41 $ 340 $ 22,802 Charge-offs — — — (85) — (371) (456) Recoveries — — — 36 — 196 232 Provision for credit losses (262) 249 1,034 67 6 118 1,212 Ending allowance balance: $ 3,331 $ 17,568 $ 1,410 $ 1,151 $ 47 $ 283 $ 23,790 Allowance for Credit Losses and Recorded Investment in Financing Receivables (dollars in thousands, unaudited) Residential Real Estate Commercial Real Estate Farmland & Agricultural Production Commercial & Industrial Mortgage Warehouse Consumer Total Allowance for credit losses: Balance, December 31, 2022 $ 3,251 $ 17,732 $ 458 $ 1,233 $ 72 $ 314 $ 23,060 Charge-offs — — (1,277) (476) — (1,292) (3,045) Recoveries 205 17 1,370 239 — 770 2,601 Provision for credit losses (534) 125 40 253 36 524 444 Ending allowance balance: $ 2,922 $ 17,874 $ 591 $ 1,249 $ 108 $ 316 $ 23,060 Residential Real Estate Commercial Real Estate Farmland & Agricultural Production Commercial & Industrial Mortgage Warehouse Consumer Total Allowance for credit losses: Balance, December 31, 2021 $ 1,909 $ 9,052 $ 1,202 $ 1,060 $ 512 $ 521 $ 14,256 Impact of adopting ASC 326 611 9,628 (480) 358 (421) (242) 9,454 Charge-offs — (1,911) (2,170) (244) — (984) (5,309) Recoveries 99 259 — 118 — 553 1,029 Provision for credit losses 712 539 2,858 (141) (44) 436 4,360 Ending allowance balance: $ 3,331 $ 17,567 $ 1,410 $ 1,151 $ 47 $ 284 $ 23,790 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill [Abstract] | |
Schedule of changes in the carrying value of goodwill | The following table discloses changes in the carrying value of goodwill for the nine months ended September 30, 2023 and 2022 (dollars in thousands, unaudited): Nine months ended September 30, 2023 2022 Net carrying value at beginning of period $ 27,357 $ 27,357 |
Borrowings and Other Arrangem_2
Borrowings and Other Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of other borrowings | September 30, 2023 December 31, 2022 Weighted Weighted Average Average Balance Rate Balance Rate Overnight Fed funds purchased (1) $ 135,000 5.12% $ 125,000 4.08% Short-term FHLB advance (2) 102,000 5.35% 94,000 3.44% Long-term FHLB advance (2) 80,000 3.91% — — Total other borrowings $ 317,000 5.00% $ 219,000 3.67% |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of sources of non-interest income | The following table presents the Company’s sources of noninterest income for the three and nine month periods ended September 30, 2023 and 2022. Items outside the scope of ASC 606 are noted as such (dollars in thousands, unaudited). For the three months ended September 30, Nine months ended September 30, For the year ended December 31, 2023 2022 2023 2022 2022 Noninterest income Service charges on deposits Returned item and overdraft fees $ 1,375 $ 1,273 $ 3,929 $ 3,973 $ 5,227 Other service charges on deposits 2,642 2,494 7,057 7,033 9,331 Debit card interchange income 2,038 2,241 6,141 6,458 8,533 Gain (loss) on limited partnerships (1) — 64 — (162) 253 Dividends on equity investments (1) 275 189 772 619 843 Unrealized (losses) gains recognized on equity investments (1) — — (291) (332) (332) Net gains on sale of securities (1) — — 396 1,032 1,487 Other (1) 1,432 351 4,351 4,493 5,428 Total noninterest income $ 7,762 $ 6,612 $ 22,355 $ 23,114 $ 30,770 Percentage of noninterest income not within scope of ASC 606. 21.99% 9.13% 23.39% 24.44% 24.96% (1) Not within scope of ASC 606. Revenue streams are not related to contracts with customers and are accounted for under other provisions of GAAP. |
The Business of Sierra Bancorp
The Business of Sierra Bancorp (Details) - store | 9 Months Ended | |
Sep. 30, 2023 | Jan. 31, 1978 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of branches | 1 | |
Number of acquired banks | 4 | |
Number of full service branch offices | 35 |
The Business of Sierra Bancor_2
The Business of Sierra Bancorp - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Jan. 31, 1978 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Capital | $ 1,500 | ||
Assets | $ 3,738,880 | $ 3,608,590 | |
Cash, FDIC Insured Amount | $ 2,900,000 |
Current Accounting Developments
Current Accounting Developments - New Accounting Pronouncements (Details) - Accounting Standards Update 2016-13 [Member] | Sep. 30, 2023 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adopted | true |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 01, 2022 |
Current Accounting Developmen_2
Current Accounting Developments - Transition Impact on Allowance for Credit Losses - General Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jan. 01, 2022 | Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Oct. 01, 2022 | Apr. 01, 2022 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reduction in loan | $ 0 | $ 0 | ||||
Retained earnings | 256,201 | 256,201 | $ 243,082 | |||
Investment securities available for sale | $ 1,010,377 | $ 1,010,377 | $ 934,923 | |||
Reassessed classification of investments | $ 198,300 | $ 162,100 | ||||
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reduction in loan | $ 9,500 | |||||
Off balance sheet credit loss | 900 | |||||
Retained earnings | 7,300 | |||||
Investment securities available for sale | $ 0 |
Share Based Compensation - Gene
Share Based Compensation - General Information (Details) - shares | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options to purchase (in shares) | 343,449 | 352,249 | 377,889 | 415,870 |
2007 Stock Option Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options to purchase (in shares) | 132,649 | |||
2017 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options to purchase (in shares) | 210,800 | |||
2023 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 360,000 |
Share Based Compensation - Shar
Share Based Compensation - Share-based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Payment Arrangement, Additional Disclosure [Abstract] | ||||
Pre-tax charge | $ 0.4 | $ 0.3 | $ 1.2 | $ 1 |
Share Based Compensation - Rest
Share Based Compensation - Restricted Stock and Stock Option Grants - General Information (Details) | 9 Months Ended |
Sep. 30, 2023 shares | |
2017 Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options granted (in shares) | 0 |
Percentage of the fair market value | 100% |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 29,064 |
Share Based Compensation - Re_2
Share Based Compensation - Restricted Stock - Unamortized Compensation Cost (Details) - Restricted Stock [Member] $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized [Abstract] | |
Unamortized compensation cost | $ 2.2 |
Weighted average period | 1 year 10 months 24 days |
Share Based Compensation - Re_3
Share Based Compensation - Restricted Stock - Activity (Details) - Restricted Stock [Member] - $ / shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Unvested shares (in shares) | 175,619 | 165,131 |
Granted (in shares) | 29,064 | |
Vested (in shares) | (23,675) | (37,748) |
Forfeited (in shares) | (4,370) | (1,212) |
Unvested shares (in shares) | 176,638 | 126,171 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Unvested shares (in dollars per share) | $ 21.42 | $ 21.72 |
Granted (in dollars per share) | 21.50 | |
Vested (in dollars per share) | 19.17 | 19.20 |
Forfeited (in dollars per share) | 22.79 | 27.16 |
Unvested shares (in dollars per share) | $ 21.72 | $ 22.45 |
Share Based Compensation - Stoc
Share Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding (in shares) | 352,249 | 415,870 | ||
Exercised (in shares) | (5,600) | |||
Forfeited/Expired (in shares) | (8,800) | (32,381) | ||
Outstanding (in shares) | 343,449 | 377,889 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||
Outstanding (in dollars per share) | $ 25.06 | $ 24.15 | ||
Exercised (in dollars per share) | 11.22 | |||
Forfeited/Expired (in dollars per share) | 26.56 | 27.32 | ||
Outstanding (in dollars per share) | $ 25.02 | $ 24.07 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Weighted average remaining contractual term | 4 years 5 months 23 days | 5 years 1 month 17 days | ||
Aggregate intrinsic value | $ 167 | $ 470 | $ 348 | $ 1,338 |
Aggregate intrinsic value, exercised | $ 56 | |||
Aggregate intrinsic value, Forfeited/Expired | $ 3 | |||
Exercisable, shares (in shares) | 319,649 | 336,489 | ||
Exercisable, weighted average exercise price (in dollars per share) | $ 24.86 | $ 23.69 | ||
Exercisable, weighted average remaining contractual term | 4 years 4 months 6 days | 4 years 10 months 17 days | ||
Exercisable, aggregate intrinsic value | $ 167 | $ 470 |
Earnings per Share (Details)
Earnings per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Weighted Average Number of Shares Outstanding, Basic [Abstract] | ||||
Weighted average shares outstanding | 14,583,132 | 14,954,503 | 14,762,231 | 14,968,242 |
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract] | ||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 53,345 | 59,545 | 29,465 | 78,641 |
Earnings Per Share, Diluted, Other Disclosures [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 278,374 | 303,387 | 326,036 | 299,404 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities- Off-Balance-Sheet Risk (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 543,722 | $ 889,517 |
Standby Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 5,124 | $ 6,037 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Unused commitments on mortgage warehouse lines | $ 254.4 | $ 594.6 |
Letter of credit | $ 127.9 |
Fair Value Disclosures and Re_3
Fair Value Disclosures and Reporting and Fair Value Measurements - Carrying Amount and Estimated Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financial Assets: | ||
Investment securities available for sale | $ 1,010,377 | $ 934,923 |
Investment securities held-to-maturity | 290,956 | 328,011 |
Financial liabilities: | ||
Repurchase agreements | 94,865 | 109,169 |
Carrying Amount [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 88,542 | 77,131 |
Investment securities available for sale | 1,010,377 | 934,923 |
Investment securities held-to-maturity | 323,544 | 336,881 |
Loans, net held for investment | 2,077,913 | 2,011,616 |
Individually evaluated collateral dependent loans | 18,141 | |
Financial liabilities: | ||
Deposits | 2,869,720 | 2,846,164 |
Repurchase agreements | 94,865 | 109,169 |
Other borrowings | 317,000 | 219,000 |
Long-term borrowings | 49,281 | 49,214 |
Subordinated debentures | 35,615 | 35,481 |
Fair Value [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 88,542 | 77,131 |
Investment securities available for sale | 1,010,377 | 934,923 |
Investment securities held-to-maturity | 290,956 | 328,011 |
Loans, net held for investment | 1,933,957 | 1,909,822 |
Individually evaluated collateral dependent loans | 18,141 | |
Financial liabilities: | ||
Deposits | 2,871,710 | 2,844,642 |
Repurchase agreements | 94,865 | 109,169 |
Other borrowings | 314,364 | 219,000 |
Long-term borrowings | 41,122 | 42,775 |
Subordinated debentures | 31,183 | 37,171 |
Fair Value [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 88,542 | 77,131 |
Investment securities available for sale | 0 | 0 |
Investment securities held-to-maturity | 0 | 0 |
Loans, net held for investment | 0 | 0 |
Individually evaluated collateral dependent loans | 0 | |
Financial liabilities: | ||
Deposits | 1,059,878 | 1,088,199 |
Repurchase agreements | 0 | 0 |
Other borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Subordinated debentures | 0 | 0 |
Fair Value [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities available for sale | 958,142 | 877,488 |
Investment securities held-to-maturity | 290,956 | 328,011 |
Loans, net held for investment | 0 | 0 |
Individually evaluated collateral dependent loans | 18,141 | |
Financial liabilities: | ||
Deposits | 1,811,832 | 1,756,443 |
Repurchase agreements | 94,865 | 109,169 |
Other borrowings | 314,364 | 219,000 |
Long-term borrowings | 41,122 | 42,775 |
Subordinated debentures | 31,183 | 37,171 |
Fair Value [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities available for sale | 52,235 | 57,435 |
Investment securities held-to-maturity | 0 | 0 |
Loans, net held for investment | 1,933,957 | 1,909,822 |
Individually evaluated collateral dependent loans | 0 | |
Financial liabilities: | ||
Deposits | 0 | 0 |
Repurchase agreements | 0 | 0 |
Other borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Subordinated debentures | $ 0 | $ 0 |
Fair Value Disclosures and Re_4
Fair Value Disclosures and Reporting and Fair Value Measurements- Assets Measured on Recurring Basis, Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest | $ 1,010,377 | $ 934,923 |
U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest | 107,084 | 50,599 |
Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest | 102,951 | 122,532 |
States and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest | 178,314 | 205,980 |
Corporate Bond [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest | 52,235 | 57,435 |
Collateralized Loan Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest | 569,793 | 498,377 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest | 1,010,377 | 934,923 |
Fair Value, Measurements, Recurring [Member] | U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest | 107,084 | 50,599 |
Fair Value, Measurements, Recurring [Member] | Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest | 102,951 | 122,532 |
Fair Value, Measurements, Recurring [Member] | States and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest | 178,314 | 205,980 |
Fair Value, Measurements, Recurring [Member] | Corporate Bond [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest | 52,235 | 57,435 |
Fair Value, Measurements, Recurring [Member] | Collateralized Loan Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest | 569,793 | 498,377 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest | 958,142 | 877,488 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest | 107,084 | 50,599 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest | 102,951 | 122,532 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | States and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest | 178,314 | 205,980 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized Loan Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest | 569,793 | 498,377 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest | 52,235 | 57,435 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate Bond [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest | $ 52,235 | $ 57,435 |
Fair Value Disclosures and Re_5
Fair Value Disclosures and Reporting and Fair Value Measurements - Assets Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Assets, Fair value disclosure | $ 0 | $ 18,141 | |
Collateralized Loan Obligations [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance of recurring Level 3 assets | $ 195,707 | ||
Transfers out of Level 3 | (195,707) | ||
Ending balance of recurring Level 3 assets | 195,700 | ||
Corporate Bond [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance of recurring Level 3 assets | 57,435 | 27,530 | |
Included in other comprehensive income | (5,200) | ||
Purchases | 26,806 | ||
Ending balance of recurring Level 3 assets | $ 52,235 | $ 54,336 |
Fair Value Disclosures and Re_6
Fair Value Disclosures and Reporting and Fair Value Measurements - Assets Measured on Nonrecurring Basis, Fair Value (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets, Fair Value Disclosure [Abstract] | ||
Individually evaluated collateral dependent loans | $ 18,141 | |
Foreclosed assets | 0 | |
Total assets measured on a nonrecurring basis | $ 0 | 18,141 |
Consumer Portfolio Segment [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Individually evaluated collateral dependent loans | 0 | |
Real Estate Sector [Member] | Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Individually evaluated collateral dependent loans | 15,391 | |
Real Estate Sector [Member] | Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Farmland [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Individually evaluated collateral dependent loans | 15,391 | |
Commercial and Industrial Sector [Member] | Commercial Portfolio Segment [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Individually evaluated collateral dependent loans | 2,750 | |
Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Individually evaluated collateral dependent loans | 0 | |
Foreclosed assets | 0 | |
Total assets measured on a nonrecurring basis | 0 | |
Fair Value, Inputs, Level 1 [Member] | Consumer Portfolio Segment [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Individually evaluated collateral dependent loans | 0 | |
Fair Value, Inputs, Level 1 [Member] | Real Estate Sector [Member] | Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Individually evaluated collateral dependent loans | 0 | |
Fair Value, Inputs, Level 1 [Member] | Real Estate Sector [Member] | Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Farmland [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Individually evaluated collateral dependent loans | 0 | |
Fair Value, Inputs, Level 1 [Member] | Commercial and Industrial Sector [Member] | Commercial Portfolio Segment [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Individually evaluated collateral dependent loans | 0 | |
Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Individually evaluated collateral dependent loans | 18,141 | |
Foreclosed assets | 0 | |
Total assets measured on a nonrecurring basis | 18,141 | |
Fair Value, Inputs, Level 2 [Member] | Consumer Portfolio Segment [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Individually evaluated collateral dependent loans | 0 | |
Fair Value, Inputs, Level 2 [Member] | Real Estate Sector [Member] | Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Individually evaluated collateral dependent loans | 15,391 | |
Fair Value, Inputs, Level 2 [Member] | Real Estate Sector [Member] | Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Farmland [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Individually evaluated collateral dependent loans | 15,391 | |
Fair Value, Inputs, Level 2 [Member] | Commercial and Industrial Sector [Member] | Commercial Portfolio Segment [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Individually evaluated collateral dependent loans | 2,750 | |
Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Individually evaluated collateral dependent loans | 0 | |
Foreclosed assets | 0 | |
Total assets measured on a nonrecurring basis | 0 | |
Fair Value, Inputs, Level 3 [Member] | Consumer Portfolio Segment [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Individually evaluated collateral dependent loans | 0 | |
Fair Value, Inputs, Level 3 [Member] | Real Estate Sector [Member] | Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Individually evaluated collateral dependent loans | 0 | |
Fair Value, Inputs, Level 3 [Member] | Real Estate Sector [Member] | Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Farmland [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Individually evaluated collateral dependent loans | 0 | |
Fair Value, Inputs, Level 3 [Member] | Commercial and Industrial Sector [Member] | Commercial Portfolio Segment [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Individually evaluated collateral dependent loans | $ 0 |
Investments - Amortized Cost an
Investments - Amortized Cost and Estimated Fair Value - Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | $ 1,069,342 | $ 984,579 |
Gross Unrealized Gains | 880 | 726 |
Gross Unrealized Losses | (59,845) | (50,382) |
Allowance for Credit Losses | 0 | 0 |
Investment securities available for sale | 1,010,377 | 934,923 |
U.S. Government Agencies [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 108,385 | 50,625 |
Gross Unrealized Gains | 49 | |
Gross Unrealized Losses | (1,301) | (75) |
Investment securities available for sale | 107,084 | 50,599 |
Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 112,464 | 129,948 |
Gross Unrealized Gains | 30 | |
Gross Unrealized Losses | (9,543) | (7,416) |
Investment securities available for sale | 102,951 | 122,532 |
States and Political Subdivisions [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 209,198 | 223,810 |
Gross Unrealized Gains | 12 | 607 |
Gross Unrealized Losses | (30,896) | (18,437) |
Investment securities available for sale | 178,314 | 205,980 |
Corporate Bond [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 65,244 | 65,164 |
Gross Unrealized Gains | 10 | |
Gross Unrealized Losses | (13,009) | (7,739) |
Investment securities available for sale | 52,235 | 57,435 |
Collateralized Loan Obligations [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 574,051 | 515,032 |
Gross Unrealized Gains | 838 | 60 |
Gross Unrealized Losses | (5,096) | (16,715) |
Investment securities available for sale | $ 569,793 | $ 498,377 |
Investments - Amortized Cost _2
Investments - Amortized Cost and Estimated Fair Value - Held-to-Maturity Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Held-to-Maturity, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | $ 323,560 | $ 336,944 |
Gross Unrecognized Gains | 16 | 1,603 |
Gross Unrecognized Losses | (32,620) | (10,536) |
Investment securities held-to-maturity | 290,956 | 328,011 |
Allowance for credit losses on held-to-maturity securities | (16) | (63) |
U.S. Government Agencies [Member] | ||
Debt Securities, Held-to-Maturity, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | 5,557 | 6,047 |
Gross Unrecognized Losses | (854) | (621) |
Investment securities held-to-maturity | 4,703 | 5,426 |
Mortgage-Backed Securities [Member] | ||
Debt Securities, Held-to-Maturity, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | 145,658 | 157,473 |
Gross Unrecognized Losses | (17,622) | (9,915) |
Investment securities held-to-maturity | 128,036 | 147,558 |
States and Political Subdivisions [Member] | ||
Debt Securities, Held-to-Maturity, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | 172,345 | 173,424 |
Gross Unrecognized Gains | 16 | 1,603 |
Gross Unrecognized Losses | (14,144) | |
Investment securities held-to-maturity | 158,217 | 175,027 |
Allowance for credit losses on held-to-maturity securities | $ (16) | $ (63) |
Investments - General Informati
Investments - General Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Oct. 01, 2022 | Apr. 01, 2022 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | |||||
Reassessed classification of investments | $ 198,300,000 | $ 162,100,000 | |||
Unrealized loss | $ 28,900,000 | ||||
Accrued interest on available-for-sale securities | $ 12,100,000 | $ 12,100,000 | $ 9,300,000 | ||
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets | Other Assets | ||
Accrued interest on held-to-maturity securities | $ 1,700,000 | $ 1,700,000 | $ 2,700,000 | ||
Debt Securities, Held-to-Maturity, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets | Other Assets | ||
Allowance for credit losses on held-to-maturity securities | $ 16,000 | $ 16,000 | $ 63,000 | ||
Decrease of allowance for credit losses on held-to-maturity securities | (40,000) | ||||
Available for sale securities reversal of accrued interest income | 0 | 0 | |||
Held-to-maturity securities reversal of accrued interest income | $ 0 | $ 0 |
Investments - Held-To-Maturity
Investments - Held-To-Maturity by Credit Rating (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Total | $ 323,560 | $ 336,944 |
States and Political Subdivisions [Member] | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Total | 172,345 | 173,424 |
States and Political Subdivisions [Member] | Rounding [Member] | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Total | 172,346 | |
States and Political Subdivisions [Member] | Fitch, AAA Rating [Member] | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Total | 57,802 | 57,833 |
States and Political Subdivisions [Member] | Fitch, AA Rating [Member] | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Total | 113,054 | 115,040 |
States and Political Subdivisions [Member] | Fitch, A Rating [Member] | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Total | 544 | $ 551 |
States and Political Subdivisions [Member] | Not Rated [Member] | ||
Debt Securities, Held-to-Maturity, Credit Quality Indicator [Line Items] | ||
Total | $ 946 |
Investments - Gross Unrealized
Investments - Gross Unrealized Losses - Tabular Disclosure (Details) $ in Thousands | Sep. 30, 2023 USD ($) security | Dec. 31, 2022 USD ($) security |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, total | security | 768 | 712 |
Gross Unrealized Losses, Less than twelve months | $ (4,265) | $ (40,711) |
Fair Value, Less than twelve months | 212,552 | 658,183 |
Gross Unrealized Losses, Twelve months or more | (55,580) | (9,671) |
Fair Value, Twelve months or more | 660,950 | 183,182 |
Total, Gross Unrealized Losses | (59,845) | (50,382) |
Total, Fair Value | $ 873,502 | $ 841,365 |
U.S. Government Agencies [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, total | security | 29 | 8 |
Gross Unrealized Losses, Less than twelve months | $ (1,180) | $ (75) |
Fair Value, Less than twelve months | 103,205 | 27,550 |
Gross Unrealized Losses, Twelve months or more | (121) | |
Fair Value, Twelve months or more | 3,879 | |
Total, Gross Unrealized Losses | (1,301) | (75) |
Total, Fair Value | $ 107,084 | $ 27,550 |
Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, total | security | 332 | 340 |
Gross Unrealized Losses, Less than twelve months | $ (7,108) | |
Fair Value, Less than twelve months | $ 27 | 119,260 |
Gross Unrealized Losses, Twelve months or more | (9,543) | (308) |
Fair Value, Twelve months or more | 98,911 | 3,227 |
Total, Gross Unrealized Losses | (9,543) | (7,416) |
Total, Fair Value | $ 98,938 | $ 122,487 |
States and Political Subdivisions [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, total | security | 303 | 252 |
Gross Unrealized Losses, Less than twelve months | $ (2,601) | $ (15,732) |
Fair Value, Less than twelve months | 50,842 | 147,635 |
Gross Unrealized Losses, Twelve months or more | (28,295) | (2,705) |
Fair Value, Twelve months or more | 119,290 | 9,807 |
Total, Gross Unrealized Losses | (30,896) | (18,437) |
Total, Fair Value | $ 170,132 | $ 157,442 |
Corporate Bond [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, total | security | 51 | 52 |
Gross Unrealized Losses, Less than twelve months | $ (407) | $ (7,644) |
Fair Value, Less than twelve months | 5,089 | 54,636 |
Gross Unrealized Losses, Twelve months or more | (12,602) | (95) |
Fair Value, Twelve months or more | 47,146 | 405 |
Total, Gross Unrealized Losses | (13,009) | (7,739) |
Total, Fair Value | $ 52,235 | $ 55,041 |
Collateralized Loan Obligations [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available-for-sale, securities in unrealized loss positions, qualitative disclosure, number of positions, total | security | 53 | 60 |
Gross Unrealized Losses, Less than twelve months | $ (77) | $ (10,152) |
Fair Value, Less than twelve months | 53,389 | 309,102 |
Gross Unrealized Losses, Twelve months or more | (5,019) | (6,563) |
Fair Value, Twelve months or more | 391,724 | 169,743 |
Total, Gross Unrealized Losses | (5,096) | (16,715) |
Total, Fair Value | $ 445,113 | $ 478,845 |
Investments - Realized Gains (L
Investments - Realized Gains (Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Proceeds from Sale and Maturity of Debt Securities, Available-for-sale [Abstract] | |||||
Proceeds from sales, calls and maturities of securities available for sale | $ 2,100 | $ 3,540 | $ 91,257 | $ 34,071 | |
Debt Securities, Available-for-sale, Realized Gain (Loss) [Abstract] | |||||
Gross gains on sales, calls and maturities of securities available for sale | 396 | 1,032 | |||
Net gains on sale of securities available for sale | $ 396 | $ 1,032 | $ 1,487 |
Investments - Estimated Fair Va
Investments - Estimated Fair Value of Contractual Maturities - Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost [Abstract] | ||
Maturing within one year (remainder of year), Amortized Cost | $ 586 | |
Maturing within one year, Amortized Cost | 0 | $ 12,141 |
Maturing after one year through five years, Amortized Cost | 39,384 | 21,013 |
Maturing after five years through ten years, Amortized Cost | 158,089 | 119,649 |
Maturing after ten years, Amortized Cost | 184,768 | 186,796 |
Amortized Cost | 1,069,342 | 984,579 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value [Abstract] | ||
Maturing within one year (remainder of year), Fair Value | 581 | |
Maturing within one year, Fair Value | 0 | 12,184 |
Maturing after one year through five years, Fair Value | 38,576 | 20,831 |
Maturing after five years through ten years, Fair Value | 143,086 | 111,513 |
Maturing after ten years, Fair Value | 155,390 | 169,486 |
Fair Value | 1,010,377 | 934,923 |
Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost [Abstract] | ||
Securities not due at a single maturity date, Amortized Cost | 112,464 | 129,948 |
Amortized Cost | 112,464 | 129,948 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value [Abstract] | ||
Securities not due at a single maturity date, Fair Value | 102,951 | 122,532 |
Fair Value | 102,951 | 122,532 |
Collateralized Loan Obligations [Member] | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost [Abstract] | ||
Securities not due at a single maturity date, Amortized Cost | 574,051 | 515,032 |
Amortized Cost | 574,051 | 515,032 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value [Abstract] | ||
Securities not due at a single maturity date, Fair Value | 569,793 | 498,377 |
Fair Value | $ 569,793 | $ 498,377 |
Investments- Estimated Fair Val
Investments- Estimated Fair Value of Contractual Maturities - Held-to-Maturity Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss, Maturity, Allocated and Single Maturity Date [Abstract] | ||
Maturing within one year (remainder of year), Amortized Cost | $ 145 | |
Maturing within one year | 0 | $ 672 |
Maturing after one year through five years | 2,458 | 2,059 |
Maturing after five years through ten years | 19,021 | 19,048 |
Maturing after ten years | 156,278 | 157,692 |
Amortized Cost | 323,560 | 336,944 |
Debt Securities, Held-to-Maturity, Maturity, Allocated and Single Maturity Date, Fair Value [Abstract] | ||
Maturing within one year (remainder of year), Fair Value | 145 | |
Maturing within one year, Fair Value | 0 | 666 |
Maturing after one year through five years, Fair Value | 2,369 | 2,032 |
Maturing after five years through ten years, Fair Value | 16,780 | 17,431 |
Maturing after ten years, Fair Value | 143,626 | 160,324 |
Estimated Fair Value | 290,956 | 328,011 |
Mortgage-Backed Securities [Member] | ||
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss, Maturity, Allocated and Single Maturity Date [Abstract] | ||
Securities not due at a single maturity date, Amortized Cost | 145,658 | 157,473 |
Amortized Cost | 145,658 | 157,473 |
Debt Securities, Held-to-Maturity, Maturity, Allocated and Single Maturity Date, Fair Value [Abstract] | ||
Securities not due at a single maturity date, Fair Value | 128,036 | 147,558 |
Estimated Fair Value | $ 128,036 | $ 147,558 |
Investments - Revenue and Gener
Investments - Revenue and General Obligation Bonds (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) item state | Dec. 31, 2022 USD ($) state item | |
Debt Securities, Available-for-sale [Line Items] | ||
Number of municipal bond | item | 485 | 501 |
Investment securities available for sale | $ 1,010,377 | $ 934,923 |
States and Political Subdivisions [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of municipalities and agencies | item | 395 | 406 |
Number of states | state | 36 | 37 |
Fair market value (available-for-sale securities and held-to-maturity securities) | $ 336,531 | $ 381,007 |
Investment securities available for sale | 178,314 | 205,980 |
General Obligation Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair market value (available-for-sale securities and held-to-maturity securities) | 293,353 | 329,160 |
General Obligation Bonds [Member] | City of New York [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment securities available for sale | 4,800 | 5,100 |
Subordinate Debenture [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment securities available for sale | $ 52,200 | $ 57,400 |
Number of subordinated debentures owned | item | 51 | 51 |
Investments - Revenue and Gen_2
Investments - Revenue and General Obligation Bonds by Location (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
States and Political Subdivisions [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | $ 381,543 | $ 397,234 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 336,531 | 381,007 |
General Obligation Bonds [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 332,007 | 342,938 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 293,353 | 329,160 |
General Obligation Bonds [Member] | TEXAS | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 150,035 | 153,209 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 131,691 | 146,667 |
General Obligation Bonds [Member] | CALIFORNIA | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 64,661 | 65,758 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 55,450 | 60,701 |
General Obligation Bonds [Member] | WASHINGTON | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 20,524 | 21,635 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 5,622 | 21,312 |
General Obligation Bonds [Member] | Other [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 96,787 | 102,336 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 100,590 | 100,480 |
Revenue Bonds [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 49,536 | 54,296 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 43,178 | 51,847 |
Revenue Bonds [Member] | TEXAS | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 9,194 | 9,216 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 8,051 | 8,840 |
Revenue Bonds [Member] | CALIFORNIA | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 3,793 | 3,788 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 3,539 | 3,673 |
Revenue Bonds [Member] | WASHINGTON | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 4,054 | 4,083 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 3,199 | 3,490 |
Revenue Bonds [Member] | Other [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 32,495 | 37,209 |
Fair market value (available-for-sale securities and held-to-maturity securities) | $ 28,389 | $ 35,844 |
Investments - Revenue Bonds by
Investments - Revenue Bonds by Type (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
States and Political Subdivisions [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | $ 381,543 | $ 397,234 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 336,531 | 381,007 |
Revenue Bonds [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 49,536 | 54,296 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 43,178 | 51,847 |
Revenue Bonds [Member] | Water [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 20,183 | 21,246 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 17,356 | 19,977 |
Revenue Bonds [Member] | Lease [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 6,082 | 7,035 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 5,608 | 7,250 |
Revenue Bonds [Member] | Sewer [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 6,544 | 6,560 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 5,883 | 6,405 |
Revenue Bonds [Member] | Sales Tax [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 4,105 | 4,123 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 3,652 | 3,934 |
Revenue Bonds [Member] | Local Or Guaranteed Housing [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 1,035 | 3,040 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 775 | 2,951 |
Revenue Bonds [Member] | Other Revenue Source [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 11,587 | 12,292 |
Fair market value (available-for-sale securities and held-to-maturity securities) | $ 9,904 | $ 11,330 |
Investments - Low-Income Housin
Investments - Low-Income Housing Tax Credit Fund Investments (Details) $ in Millions | 9 Months Ended | 12 Months Ended | 24 Months Ended |
Sep. 30, 2023 USD ($) item | Dec. 31, 2022 USD ($) item | Dec. 31, 2015 item | |
Investments in Affordable Housing Projects [Abstract] | |||
Number of investments in low income housing tax credit fund | item | 1 | 2 | 5 |
Investment, book balance | $ 14.6 | $ 10.1 | |
Investment, remaining commitments for additional capital contributions | 11.2 | 7.4 | |
Investment, tax credit | 0.4 | 0.5 | |
Investment, amortization expense | $ 0.5 | $ 0.5 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - General Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Jan. 01, 2022 | Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable, Past Due [Line Items] | ||||
Accrued interest receivable, loans | $ 5,300 | $ 5,300 | $ 6,400 | |
Additional interest income | 4 | 60 | ||
Reversal of interest receivable on financing receivable on nonaccrual status | $ 1 | 300 | ||
Amortized cost of collateral-dependent loans, increase (decrease) during the period | $ 19,300 | |||
Weighted average loan-to-value ratio of collateral dependent loans (as a percent) | 12% | 12% | ||
Collateral dependent loans in process of foreclosure | $ 0 | $ 0 | ||
Purchased credit deteriorated loans | 0 | 0 | ||
Reduction in loan | $ 0 | $ 0 | ||
Accounting Standards Update 2016-13 [Member] | Restatement Adjustment [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Reduction in loan | $ 9,500 | |||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loan purchases | $ 173,100 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Loan Distribution (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Loans, net | ||||||
Subtotal | $ 2,100,810 | $ 2,052,940 | ||||
Deferred loan costs (fees), net | 163 | (123) | ||||
Loans, amortized cost basis | 2,100,973 | 2,052,817 | ||||
Allowance for credit losses on loans | (23,060) | $ (23,010) | (23,060) | $ (23,790) | $ (22,802) | $ (14,256) |
Net loans | 2,077,913 | 2,029,757 | ||||
Other Commercial Loans [Member] | ||||||
Loans, net | ||||||
Subtotal | 137,407 | 102,967 | ||||
Loans, amortized cost basis | 138,786 | 104,135 | ||||
Mortgage Warehouse Lines [Member] | ||||||
Loans, net | ||||||
Loans, amortized cost basis | 107,584 | 65,439 | ||||
Commercial and Industrial Sector [Member] | Mortgage Warehouse Lines [Member] | ||||||
Loans, net | ||||||
Loans, amortized cost basis | 107,584 | 65,439 | ||||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | ||||||
Loans, net | ||||||
Subtotal | 1,851,758 | 1,880,410 | ||||
Loans, amortized cost basis | 1,850,427 | 1,879,011 | ||||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Residential Real Estate [Member] | ||||||
Loans, net | ||||||
Subtotal | 418,734 | 437,446 | ||||
Loans, amortized cost basis | 419,940 | 438,731 | ||||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Commercial Real Estate [Member] | ||||||
Loans, net | ||||||
Subtotal | 1,334,663 | 1,311,158 | ||||
Loans, amortized cost basis | 1,331,894 | 1,308,328 | ||||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Other Commercial Loans [Member] | ||||||
Loans, net | ||||||
Loans, amortized cost basis | 138,786 | 104,135 | ||||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Other construction/land [Member] | ||||||
Loans, net | ||||||
Subtotal | 7,368 | 18,412 | ||||
Loans, amortized cost basis | 7,376 | 18,358 | ||||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Farmland [Member] | ||||||
Loans, net | ||||||
Subtotal | 90,993 | 113,394 | ||||
Loans, amortized cost basis | 91,217 | 113,594 | ||||
Allowance for credit losses on loans | (591) | (497) | (458) | (1,410) | (376) | (1,202) |
Commercial Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | ||||||
Loans, net | ||||||
Allowance for credit losses on loans | (17,874) | (17,373) | (17,732) | (17,568) | (17,319) | (9,052) |
Commercial Portfolio Segment [Member] | ||||||
Loans, net | ||||||
Loans, amortized cost basis | 4,176 | |||||
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Commercial and Industrial Loans and Leases [Member] | ||||||
Loans, net | ||||||
Allowance for credit losses on loans | (1,249) | (1,676) | (1,233) | (1,151) | (1,133) | (1,060) |
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Mortgage Warehouse Lines [Member] | ||||||
Loans, net | ||||||
Subtotal | 107,584 | 65,439 | ||||
Allowance for credit losses on loans | (108) | (144) | (72) | (47) | (41) | (512) |
Consumer Portfolio Segment [Member] | ||||||
Loans, net | ||||||
Subtotal | 4,061 | 4,124 | ||||
Loans, amortized cost basis | 4,176 | 4,232 | ||||
Allowance for credit losses on loans | $ (316) | $ (283) | $ (314) | $ (283) | $ (340) | $ (521) |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Nonaccrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Excluding Accrued Interest, Nonaccrual [Abstract] | ||
Nonaccrual loans, with no allowance for credit loss | $ 781 | $ 19,409 |
Nonaccrual loans, with an allowance for credit loss | 170 | |
Nonaccrual loans, total | 781 | 19,579 |
Loans past due 90+ accruing | 1,115 | 940 |
Other Commercial Loans [Member] | ||
Financing Receivable, Excluding Accrued Interest, Nonaccrual [Abstract] | ||
Nonaccrual loans, with no allowance for credit loss | 335 | 2,909 |
Nonaccrual loans, with an allowance for credit loss | 163 | |
Nonaccrual loans, total | 335 | 3,072 |
Loans past due 90+ accruing | 1,115 | 940 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Excluding Accrued Interest, Nonaccrual [Abstract] | ||
Nonaccrual loans, with no allowance for credit loss | 446 | 16,500 |
Nonaccrual loans, total | 446 | 16,500 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Real Estate [Member] | ||
Financing Receivable, Excluding Accrued Interest, Nonaccrual [Abstract] | ||
Nonaccrual loans, with no allowance for credit loss | 446 | 688 |
Nonaccrual loans, total | $ 446 | 688 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Farmland [Member] | ||
Financing Receivable, Excluding Accrued Interest, Nonaccrual [Abstract] | ||
Nonaccrual loans, with no allowance for credit loss | 15,812 | |
Nonaccrual loans, total | 15,812 | |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Excluding Accrued Interest, Nonaccrual [Abstract] | ||
Nonaccrual loans, with an allowance for credit loss | 7 | |
Nonaccrual loans, total | $ 7 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable Recorded Investment [Line Items] | ||
Amortized cost | $ 219 | $ 19,543 |
Individual reserves | 39 | |
Other Commercial Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Amortized cost | 3,043 | |
Individual reserves | 39 | |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Amortized cost | 219 | 16,500 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Residential Real Estate [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Amortized cost | 152 | 688 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Farmland [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Amortized cost | $ 67 | $ 15,812 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Past Due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Total Loans | $ 2,100,973 | $ 2,052,817 |
Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 2,231 | 21,458 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 763 | 1,850 |
60-89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 45 | 318 |
90 Days Or More Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,423 | 19,290 |
Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 2,098,742 | 2,031,359 |
Other Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 138,786 | 104,135 |
Other Commercial Loans [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,837 | 3,871 |
Other Commercial Loans [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 469 | 19 |
Other Commercial Loans [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 43 | 134 |
Other Commercial Loans [Member] | 90 Days Or More Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,325 | 3,718 |
Other Commercial Loans [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 136,949 | 100,264 |
Mortgage Warehouse Lines [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 107,584 | 65,439 |
Mortgage Warehouse Lines [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 107,584 | 65,439 |
Commercial and Industrial Sector [Member] | Mortgage Warehouse Lines [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 107,584 | 65,439 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,850,427 | 1,879,011 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 357 | 17,572 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 259 | 1,816 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 184 | |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | 90 Days Or More Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 98 | 15,572 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,850,070 | 1,861,439 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 419,940 | 438,731 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Residential Real Estate [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 149 | 1,560 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Residential Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 51 | 1,294 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Residential Real Estate [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 87 | |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Residential Real Estate [Member] | 90 Days Or More Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 98 | 179 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Residential Real Estate [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 419,791 | 437,171 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,331,894 | 1,308,328 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Commercial Real Estate [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 208 | |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Commercial Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 208 | |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Commercial Real Estate [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,331,686 | 1,308,328 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Other Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 138,786 | 104,135 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Other construction/land [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 7,376 | 18,358 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Other construction/land [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 7,376 | 18,358 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Farmland [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 91,217 | 113,594 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Farmland [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 16,012 | |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Farmland [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 522 | |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Farmland [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 97 | |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Farmland [Member] | 90 Days Or More Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 15,393 | |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Farmland [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 91,217 | 97,582 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 4,176 | |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 4,176 | 4,232 |
Consumer Portfolio Segment [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 37 | 15 |
Consumer Portfolio Segment [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 35 | 15 |
Consumer Portfolio Segment [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 2 | |
Consumer Portfolio Segment [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | $ 4,139 | $ 4,217 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Loan Modifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Financing Receivable, Past Due [Line Items] | |||
Modifications to borrowers experiencing financial difficulty | $ 0 | $ 0 | |
Payment defaults on loans previously modified in the preceding 12 months | 0 | $ 0 | |
Additional funds committed on loans | $ 0 | $ 0 | |
Modifications of existing TDRs | 0 | ||
Restatement Adjustment [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Modifications of new TDRs | $ 0 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Credit Quality Classifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | $ 131,676 | $ 131,676 | $ 731,138 | ||
2022 | 425,640 | 425,640 | 399,934 | ||
2021 | 306,593 | 306,593 | 1,182,393 | ||
2020 | 569,375 | 569,375 | 132,361 | ||
2019 | 64,125 | 64,125 | 237,201 | ||
Prior | 379,611 | 379,611 | 616,060 | ||
Revolving Loans Amortized Cost | 216,139 | 216,139 | 189,029 | ||
Revolving Loans Converted to Term Loans | 7,813 | 7,813 | 4,981 | ||
Loans, amortized cost basis | 2,100,973 | 2,100,973 | 2,052,817 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||||
Gross Charge-Offs, 2023 | 1,376 | ||||
Gross Charge-Offs, 2022 | 38 | ||||
Gross Charge-Offs, 2021 | 250 | ||||
Gross Charge-Offs, 2019 | 50 | ||||
Gross Charge-Offs, Prior | 1,305 | ||||
Gross Charge-Offs, Revolving Loans Amortized Cost | 25 | ||||
Gross Charge-Offs, Total | 541 | $ 456 | 3,045 | $ 5,309 | |
Gross Charge-Offs, Total | 3,044 | ||||
Other Commercial Loans [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Loans, amortized cost basis | 138,786 | 138,786 | 104,135 | ||
Mortgage Warehouse Lines [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Loans, amortized cost basis | 107,584 | 107,584 | 65,439 | ||
Commercial and Industrial Sector [Member] | Mortgage Warehouse Lines [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Revolving Loans Amortized Cost | 107,584 | 107,584 | 65,439 | ||
Loans, amortized cost basis | 107,584 | 107,584 | 65,439 | ||
Commercial and Industrial Sector [Member] | Mortgage Warehouse Lines [Member] | Pass [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Revolving Loans Amortized Cost | 107,584 | 107,584 | 65,439 | ||
Loans, amortized cost basis | 107,584 | 107,584 | 65,439 | ||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Loans, amortized cost basis | 1,850,427 | 1,850,427 | 1,879,011 | ||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Real Estate [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 107,744 | ||||
2022 | 106,878 | 106,878 | 239,044 | ||
2021 | 232,300 | 232,300 | 7,814 | ||
2020 | 7,662 | 7,662 | 2,066 | ||
2019 | 1,998 | 1,998 | 10,843 | ||
Prior | 54,720 | 54,720 | 52,067 | ||
Revolving Loans Amortized Cost | 13,630 | 13,630 | 16,006 | ||
Revolving Loans Converted to Term Loans | 2,752 | 2,752 | 3,147 | ||
Loans, amortized cost basis | 419,940 | 419,940 | 438,731 | ||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Real Estate [Member] | Pass [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 107,744 | ||||
2022 | 106,878 | 106,878 | 239,044 | ||
2021 | 232,300 | 232,300 | 7,814 | ||
2020 | 7,662 | 7,662 | 2,066 | ||
2019 | 1,998 | 1,998 | 10,723 | ||
Prior | 51,555 | 51,555 | 49,282 | ||
Revolving Loans Amortized Cost | 13,455 | 13,455 | 15,970 | ||
Revolving Loans Converted to Term Loans | 2,244 | 2,244 | 1,825 | ||
Loans, amortized cost basis | 416,092 | 416,092 | 434,468 | ||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Real Estate [Member] | Special Mention [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2019 | 89 | ||||
Prior | 2,617 | 2,617 | 1,584 | ||
Revolving Loans Amortized Cost | 51 | 51 | 36 | ||
Revolving Loans Converted to Term Loans | 340 | 340 | 970 | ||
Loans, amortized cost basis | 3,008 | 3,008 | 2,679 | ||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Real Estate [Member] | Substandard [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2019 | 31 | ||||
Prior | 548 | 548 | 1,201 | ||
Revolving Loans Amortized Cost | 124 | 124 | |||
Revolving Loans Converted to Term Loans | 168 | 168 | 352 | ||
Loans, amortized cost basis | 840 | 840 | 1,584 | ||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Commercial Real Estate [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 98,028 | 98,028 | 277,024 | ||
2022 | 276,945 | 276,945 | 62,764 | ||
2021 | 58,990 | 58,990 | 562,229 | ||
2020 | 544,648 | 544,648 | 59,487 | ||
2019 | 54,910 | 54,910 | 89,739 | ||
Prior | 275,007 | 275,007 | 234,927 | ||
Revolving Loans Amortized Cost | 23,366 | 23,366 | 22,158 | ||
Loans, amortized cost basis | 1,331,894 | 1,331,894 | 1,308,328 | ||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Commercial Real Estate [Member] | Pass [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 94,660 | 94,660 | 276,728 | ||
2022 | 276,945 | 276,945 | 62,764 | ||
2021 | 58,990 | 58,990 | 474,494 | ||
2020 | 486,033 | 486,033 | 56,419 | ||
2019 | 51,884 | 51,884 | 82,595 | ||
Prior | 256,619 | 256,619 | 221,447 | ||
Revolving Loans Amortized Cost | 23,366 | 23,366 | 22,158 | ||
Loans, amortized cost basis | 1,248,497 | 1,248,497 | 1,196,605 | ||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Commercial Real Estate [Member] | Special Mention [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 3,368 | 3,368 | 296 | ||
2021 | 73,002 | ||||
2020 | 42,759 | 42,759 | 3,068 | ||
2019 | 3,026 | 3,026 | |||
Prior | 6,606 | 6,606 | 7,299 | ||
Loans, amortized cost basis | 55,759 | 55,759 | 83,665 | ||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Commercial Real Estate [Member] | Substandard [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2021 | 14,733 | ||||
2020 | 15,856 | 15,856 | |||
2019 | 7,144 | ||||
Prior | 11,782 | 11,782 | 6,181 | ||
Loans, amortized cost basis | 27,638 | 27,638 | 28,058 | ||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Other construction/land [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2021 | 14,966 | ||||
2020 | 3,702 | 3,702 | 734 | ||
2019 | 648 | 648 | 955 | ||
Prior | 1,715 | 1,715 | 1,010 | ||
Revolving Loans Amortized Cost | 1,311 | 1,311 | 693 | ||
Loans, amortized cost basis | 7,376 | 7,376 | 18,358 | ||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Other construction/land [Member] | Pass [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2021 | 14,896 | ||||
2020 | 3,702 | 3,702 | 734 | ||
2019 | 648 | 648 | 955 | ||
Prior | 1,715 | 1,715 | 1,010 | ||
Revolving Loans Amortized Cost | 1,311 | 1,311 | 693 | ||
Loans, amortized cost basis | 7,376 | 7,376 | 18,288 | ||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Other construction/land [Member] | Substandard [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2021 | 70 | ||||
Loans, amortized cost basis | 70 | ||||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Farmland [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 2,743 | 2,743 | 30,346 | ||
2022 | 29,650 | 29,650 | 12,941 | ||
2021 | 11,908 | 11,908 | 4,504 | ||
2020 | 3,531 | 3,531 | 1,819 | ||
2019 | 1,683 | 1,683 | 19,880 | ||
Prior | 37,549 | 37,549 | 39,708 | ||
Revolving Loans Amortized Cost | 3,753 | 3,753 | 3,976 | ||
Revolving Loans Converted to Term Loans | 400 | 400 | 420 | ||
Loans, amortized cost basis | 91,217 | 91,217 | 113,594 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||||
Gross Charge-Offs, Total | 1,277 | 2,170 | |||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Farmland [Member] | Pass [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 2,743 | 2,743 | 30,346 | ||
2022 | 29,650 | 29,650 | 12,941 | ||
2021 | 11,908 | 11,908 | 4,504 | ||
2020 | 3,531 | 3,531 | 1,819 | ||
2019 | 1,683 | 1,683 | 9,418 | ||
Prior | 25,537 | 25,537 | 24,175 | ||
Revolving Loans Amortized Cost | 3,753 | 3,753 | 3,976 | ||
Revolving Loans Converted to Term Loans | 400 | 400 | 420 | ||
Loans, amortized cost basis | 79,205 | 79,205 | 87,599 | ||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Farmland [Member] | Special Mention [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2019 | 7,045 | ||||
Prior | 2,927 | 2,927 | 3,042 | ||
Loans, amortized cost basis | 2,927 | 2,927 | 10,087 | ||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Farmland [Member] | Substandard [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2019 | 3,417 | ||||
Prior | 9,085 | 9,085 | 12,491 | ||
Loans, amortized cost basis | 9,085 | 9,085 | 15,908 | ||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Other Commercial Loans [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 29,405 | 29,405 | 7,479 | ||
2022 | 11,894 | 11,894 | 9,277 | ||
2021 | 3,261 | 3,261 | 11,008 | ||
2020 | 9,713 | 9,713 | 6,072 | ||
2019 | 4,802 | 4,802 | 5,206 | ||
Prior | 10,386 | 10,386 | 12,328 | ||
Revolving Loans Amortized Cost | 64,664 | 64,664 | 51,771 | ||
Revolving Loans Converted to Term Loans | 4,661 | 4,661 | 994 | ||
Loans, amortized cost basis | 138,786 | 138,786 | 104,135 | ||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Other Commercial Loans [Member] | Pass [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 29,405 | 29,405 | 7,478 | ||
2022 | 11,894 | 11,894 | 6,350 | ||
2021 | 3,121 | 3,121 | 7,913 | ||
2020 | 6,872 | 6,872 | 6,028 | ||
2019 | 4,768 | 4,768 | 5,178 | ||
Prior | 10,347 | 10,347 | 10,579 | ||
Revolving Loans Amortized Cost | 62,711 | 62,711 | 47,998 | ||
Revolving Loans Converted to Term Loans | 3,888 | 3,888 | 167 | ||
Loans, amortized cost basis | 133,006 | 133,006 | 91,691 | ||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Other Commercial Loans [Member] | Special Mention [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2022 | 129 | ||||
2021 | 80 | 80 | 3,067 | ||
2020 | 2,841 | 2,841 | 44 | ||
2019 | 1 | 1 | |||
Prior | 39 | 39 | 1,616 | ||
Revolving Loans Amortized Cost | 144 | 144 | 3,773 | ||
Revolving Loans Converted to Term Loans | 437 | 437 | 660 | ||
Loans, amortized cost basis | 3,542 | 3,542 | 9,289 | ||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Other Commercial Loans [Member] | Substandard [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 1 | ||||
2022 | 2,798 | ||||
2021 | 60 | 60 | 28 | ||
2019 | 33 | 33 | 28 | ||
Prior | 133 | ||||
Revolving Loans Amortized Cost | 1,809 | 1,809 | |||
Revolving Loans Converted to Term Loans | 336 | 336 | 167 | ||
Loans, amortized cost basis | 2,238 | 2,238 | 3,155 | ||
Commercial Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||||
Gross Charge-Offs, Total | 1,911 | ||||
Commercial Portfolio Segment [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 1,500 | 1,500 | |||
2022 | 273 | 273 | |||
2021 | 134 | 134 | |||
2020 | 119 | 119 | |||
2019 | 84 | 84 | |||
Prior | 234 | 234 | |||
Revolving Loans Amortized Cost | 1,832 | 1,832 | |||
Loans, amortized cost basis | 4,176 | 4,176 | |||
Commercial Portfolio Segment [Member] | Pass [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 1,457 | 1,457 | |||
2022 | 271 | 271 | |||
2021 | 134 | 134 | |||
2020 | 102 | 102 | |||
2019 | 77 | 77 | |||
Prior | 199 | 199 | |||
Revolving Loans Amortized Cost | 1,831 | 1,831 | |||
Loans, amortized cost basis | 4,071 | 4,071 | |||
Commercial Portfolio Segment [Member] | Special Mention [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2020 | 17 | 17 | |||
2019 | 7 | 7 | |||
Prior | 35 | 35 | |||
Revolving Loans Amortized Cost | 1 | 1 | |||
Loans, amortized cost basis | 60 | 60 | |||
Commercial Portfolio Segment [Member] | Substandard [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 43 | 43 | |||
2022 | 2 | 2 | |||
Loans, amortized cost basis | 45 | 45 | |||
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Commercial and Industrial Loans and Leases [Member] | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||||
Gross Charge-Offs, Total | 116 | 85 | 476 | 244 | |
Consumer Portfolio Segment [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 1,175 | ||||
2022 | 203 | ||||
2021 | 173 | ||||
2020 | 143 | ||||
2019 | 4 | ||||
Prior | 375 | ||||
Revolving Loans Amortized Cost | 2,159 | ||||
Loans, amortized cost basis | 4,176 | 4,176 | 4,232 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||||
Gross Charge-Offs, Total | $ 425 | $ 371 | $ 1,292 | $ 984 | |
Consumer Portfolio Segment [Member] | Pass [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 1,162 | ||||
2022 | 203 | ||||
2021 | 138 | ||||
2020 | 127 | ||||
2019 | 4 | ||||
Prior | 375 | ||||
Revolving Loans Amortized Cost | 2,148 | ||||
Loans, amortized cost basis | 4,157 | ||||
Consumer Portfolio Segment [Member] | Special Mention [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 5 | ||||
2021 | 35 | ||||
2020 | 16 | ||||
Revolving Loans Amortized Cost | 11 | ||||
Loans, amortized cost basis | 67 | ||||
Consumer Portfolio Segment [Member] | Substandard [Member] | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023 | 8 | ||||
Loans, amortized cost basis | $ 8 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - Allowance for Credit Losses - Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 23,010 | $ 22,802 | $ 23,060 | $ 14,256 |
Charge-offs | (541) | (456) | (3,045) | (5,309) |
Recoveries | 474 | 232 | 2,601 | 1,029 |
Provision for credit losses | 117 | 1,212 | 444 | 4,360 |
Ending balance | 23,060 | 23,790 | 23,060 | 23,790 |
ASU 2016-13 | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 9,454 | |||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Real Estate [Member] | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 3,037 | 3,593 | 3,251 | 1,909 |
Recoveries | 205 | 99 | ||
Provision for credit losses | (115) | (262) | (534) | 712 |
Ending balance | 2,922 | 3,331 | 2,922 | 3,331 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Real Estate [Member] | ASU 2016-13 | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 611 | |||
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Farmland [Member] | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 497 | 376 | 458 | 1,202 |
Charge-offs | (1,277) | (2,170) | ||
Recoveries | 54 | 1,370 | ||
Provision for credit losses | 40 | 1,034 | 40 | 2,858 |
Ending balance | 591 | 1,410 | 591 | 1,410 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Farmland [Member] | ASU 2016-13 | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | (480) | |||
Commercial Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 17,373 | 17,319 | 17,732 | 9,052 |
Charge-offs | (1,911) | |||
Recoveries | 17 | 259 | ||
Provision for credit losses | 501 | 249 | 125 | 539 |
Ending balance | 17,874 | 17,568 | 17,874 | 17,568 |
Commercial Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Rounding [Member] | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Ending balance | 17,567 | 17,567 | ||
Commercial Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | ASU 2016-13 | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 9,628 | |||
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Commercial and Industrial Loans and Leases [Member] | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 1,676 | 1,133 | 1,233 | 1,060 |
Charge-offs | (116) | (85) | (476) | (244) |
Recoveries | 170 | 36 | 239 | 118 |
Provision for credit losses | (481) | 67 | 253 | (141) |
Ending balance | 1,249 | 1,151 | 1,249 | 1,151 |
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Commercial and Industrial Loans and Leases [Member] | ASU 2016-13 | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 358 | |||
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Mortgage Warehouse Lines [Member] | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 144 | 41 | 72 | 512 |
Provision for credit losses | (36) | 6 | 36 | (44) |
Ending balance | 108 | 47 | 108 | 47 |
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Mortgage Warehouse Lines [Member] | ASU 2016-13 | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | (421) | |||
Consumer Portfolio Segment [Member] | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 283 | 340 | 314 | 521 |
Charge-offs | (425) | (371) | (1,292) | (984) |
Recoveries | 250 | 196 | 770 | 553 |
Provision for credit losses | 208 | 118 | 524 | 436 |
Ending balance | $ 316 | 283 | $ 316 | 283 |
Consumer Portfolio Segment [Member] | Rounding [Member] | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Ending balance | $ 284 | 284 | ||
Consumer Portfolio Segment [Member] | ASU 2016-13 | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ (242) |
Goodwill - Changes in Carrying
Goodwill - Changes in Carrying Value of Goodwill (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Goodwill [Abstract] | ||
Net carrying value at beginning of period | $ 27,357 | $ 27,357 |
Goodwill - Goodwill Impairment
Goodwill - Goodwill Impairment (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) segment | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Number of Operating Segments | segment | 1 |
Goodwill and Intangible Asset Impairment [Abstract] | |
Impairment | $ | $ 0 |
Borrowings and Other Arrangem_3
Borrowings and Other Arrangements - Tabular Disclosure (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Other Borrowings [Member] | ||
Short-term Debt [Line Items] | ||
Balance | $ 317,000 | $ 219,000 |
Weighted average rate | 5% | 3.67% |
Overnight Fed funds purchased [Member] | ||
Short-term Debt [Line Items] | ||
Balance | $ 135,000 | $ 125,000 |
Weighted average rate | 5.12% | 4.08% |
Short-term FHLB advance [Member] | ||
Short-term Debt [Line Items] | ||
Balance | $ 102,000 | $ 94,000 |
Weighted average rate | 5.35% | 3.44% |
Long-term FHLB advance [Member] | ||
Short-term Debt [Line Items] | ||
Balance | $ 80,000 | |
Weighted average rate | 3.91% |
Borrowings and Other Arrangem_4
Borrowings and Other Arrangements - General Information (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Short-term Debt [Line Items] | ||
Federal funds purchased were from the Federal Home Loan Bank | $ 75,000 | |
Repurchase agreements | 94,865 | $ 109,169 |
Unsecured available lines of credit with correspondent banks | ||
Short-term Debt [Line Items] | ||
Available lines of credit | 362,800 | 237,000 |
Federal Home Loan Bank Borrowings | ||
Short-term Debt [Line Items] | ||
Available lines of credit | 657,500 | 718,800 |
Federal Reserve Line of Credit | ||
Short-term Debt [Line Items] | ||
Maximum borrowing capacity | 383,900 | 42,300 |
Borrowings amount | $ 0 | $ 0 |
Borrowings and Other Arrangem_5
Borrowings and Other Arrangements - Long-Term Debt (Details) - Subordinated Debt [Member] - Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Fixed interest rate | 3.25% | |
Debt instrument, basis spread on variable rate | 2.535% | |
Long-term debt, net | $ 49.3 | $ 49.2 |
Borrowings and Other Arrangem_6
Borrowings and Other Arrangements - Subordinated Debentures (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Junior Subordinated Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, net | $ 35.6 | $ 35.5 |
Revenue Recognition - General I
Revenue Recognition - General Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |||||
Percentage of income outside of scope of ASC 606 (as a percent) | 21.99% | 9.13% | 23.39% | 24.44% | 24.96% |
Revenue Recognition - Nonintere
Revenue Recognition - Noninterest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Noninterest income | |||||
Gain (loss) on limited partnerships | $ 64 | $ (162) | $ 253 | ||
Dividends on equity investments | $ 275 | 189 | $ 772 | 619 | 843 |
Unrealized (losses) gains recognized on equity investments | (291) | (332) | (332) | ||
Net gains on sale of securities | 396 | 1,032 | 1,487 | ||
Other | 1,432 | 351 | 4,351 | 4,493 | 5,428 |
Total noninterest income | 7,762 | 6,612 | 22,355 | 23,114 | 30,770 |
Deposit Account [Member] | |||||
Noninterest income | |||||
Service charges and fees on deposit accounts | 6,055 | 6,008 | 17,127 | 17,464 | |
Returned Item and Overdraft Fees [Member] | |||||
Noninterest income | |||||
Service charges and fees on deposit accounts | 1,375 | 1,273 | 3,929 | 3,973 | 5,227 |
Other Service Charges on Deposits [Member] | |||||
Noninterest income | |||||
Service charges and fees on deposit accounts | 2,642 | 2,494 | 7,057 | 7,033 | 9,331 |
Debit Card [Member] | |||||
Noninterest income | |||||
Service charges and fees on deposit accounts | $ 2,038 | $ 2,241 | $ 6,141 | $ 6,458 | $ 8,533 |