Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 01, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Entity Central Index Key | 0001130144 | ||
Document Type | 10-K/A | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 251 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Common Stock, Shares Outstanding | 14,788,121 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Amendment Flag | false | ||
Auditor Name | RSM US LLP | ||
Auditor Firm ID | 49 | ||
Auditor Location | San Francisco, California |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 73,721 | $ 72,803 |
Interest bearing deposits in banks | 4,881 | 4,328 |
Cash and cash equivalents | 78,602 | 77,131 |
Available-for-sale, net of zero allowance for credit losses | 1,019,201 | 934,923 |
Held-to-maturity, net of allowance for credit losses of $16 and $63 | 320,057 | 336,881 |
Total investment securities | 1,339,258 | 1,271,804 |
Loans: | ||
Gross loans | 2,090,075 | 2,052,940 |
Deferred loan costs (fees), net | 309 | (123) |
Allowance for credit losses on loans | (23,500) | (23,060) |
Net loans | 2,066,884 | 2,029,757 |
Premises and equipment, net | 16,907 | 22,478 |
Goodwill | 27,357 | 27,357 |
Other intangible assets, net | 1,399 | 2,275 |
Company owned life insurance | 51,572 | 52,169 |
Other assets | 147,820 | 125,619 |
Total assets | 3,729,799 | 3,608,590 |
Deposits: | ||
Noninterest bearing | 1,020,772 | 1,088,199 |
Interest bearing | 1,740,451 | 1,757,965 |
Total deposits | 2,761,223 | 2,846,164 |
Repurchase agreements | 107,121 | 109,169 |
Other borrowings | 360,500 | 219,000 |
Long-term debt | 49,304 | 49,214 |
Subordinated debentures, net | 35,660 | 35,481 |
Allowance for credit losses on unfunded loan commitments | 510 | 840 |
Other liabilities | 77,384 | 45,140 |
Total liabilities | 3,391,702 | 3,305,008 |
Commitments and contingent liabilities (Note 14) | ||
Shareholders' equity | ||
Serial Preferred stock, no par value; 10,000,000 shares authorized; none issued; Common stock, no par value; 24,000,000 shares authorized; 14,793,832 and 15,170,372 shares issued and outstanding , respectively | 110,446 | 112,928 |
Additional paid-in capital | 4,581 | 4,148 |
Retained earnings | 259,050 | 243,082 |
Accumulated other comprehensive loss, net of taxes of $14,874 and $23,746 | (35,980) | (56,576) |
Total shareholders' equity | 338,097 | 303,582 |
Total liabilities and shareholders' equity | $ 3,729,799 | $ 3,608,590 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Available-for-sale securities, allowance for credit losses | $ 0 | $ 0 |
Allowance for credit losses on held-to-maturity securities | $ 16 | $ 63 |
Preferred Stock, No Par Value | $ 0 | $ 0 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, No Par Value | $ 0 | $ 0 |
Common Stock, Shares Authorized | 24,000,000 | 24,000,000 |
Common Stock, Shares, Issued | 14,793,832 | 15,170,372 |
Common Stock, Shares, Outstanding | 14,793,832 | 15,170,372 |
Accumulated Other Comprehensive Income (Loss), Tax | $ 14,874 | $ 23,746 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest and dividend income | |||
Loans, including fees | $ 96,791 | $ 86,706 | $ 99,249 |
Taxable securities | 54,367 | 25,789 | 7,239 |
Tax-exempt securities | 10,909 | 8,805 | 6,218 |
Federal funds sold and other | 1,054 | 519 | 370 |
Total interest income | 163,121 | 121,819 | 113,076 |
Interest expense | |||
Deposits | 31,554 | 6,819 | 2,390 |
Other borrowings | 14,561 | 2,069 | 213 |
Long-term debt | 1,715 | 1,713 | 468 |
Subordinated debentures | 2,886 | 1,603 | 979 |
Total interest expense | 50,716 | 12,204 | 4,050 |
Net interest income | 112,405 | 109,615 | 109,026 |
Provision (benefit) for credit losses on loans | 4,058 | 10,898 | (3,650) |
Benefit for credit losses on unfunded loan commitments | (330) | (294) | |
(Benefit) provision for credit losses on held-to-maturity securities | (47) | 63 | |
Net interest income after provision for credit losses | 108,724 | 98,948 | 112,676 |
Noninterest income | |||
Gross gains on sales and calls of securities | 396 | 1,487 | 11 |
Net gains (losses) on sale of fixed assets | 15,270 | (8) | 180 |
Increase (decrease) in cash surrender value of life insurance | 1,767 | (996) | 2,648 |
Realized losses on available-for-sale securities | (14,500) | ||
Other income | 4,364 | 7,187 | 2,934 |
Total noninterest income | 30,400 | 30,770 | 28,079 |
Noninterest expense | |||
Salaries and employee benefits | 50,977 | 47,053 | 42,431 |
Occupancy and equipment | 10,160 | 9,718 | 9,837 |
Other | 31,523 | 28,032 | 31,288 |
Total noninterest expense | 92,660 | 84,803 | 83,556 |
Income before income taxes | 46,464 | 44,915 | 57,199 |
Provision for income taxes | 11,620 | 11,256 | 14,187 |
Net income | $ 34,844 | $ 33,659 | $ 43,012 |
PER SHARE DATA | |||
Earnings per share basic | $ 2.37 | $ 2.25 | $ 2.82 |
Earnings per share diluted | $ 2.36 | $ 2.24 | $ 2.80 |
Weighted average shares outstanding, basic | 14,706,141 | 14,955,756 | 15,241,957 |
Weighted average shares outstanding, diluted | 14,737,870 | 15,022,755 | 15,353,445 |
Deposit Account [Member] | |||
Noninterest income | |||
Service charges on deposits | $ 23,103 | $ 23,100 | $ 22,306 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Comprehensive Income [Abstract] | |||
Net Income (Loss) | $ 34,844 | $ 33,659 | $ 43,012 |
Unrealized gain (loss) on securities: | |||
Unrealized holding gain (loss) arising during period | 15,140 | (94,689) | (10,265) |
Reclassification adjustment for losses (gains) included in net income (1) | 14,104 | (1,487) | (11) |
Other comprehensive gain (loss), before tax | 29,244 | (96,176) | (10,276) |
Income tax (expense) benefit related to items of other comprehensive income | (8,648) | 28,433 | 3,038 |
Total other comprehensive gain (loss) , net of tax | 20,596 | (67,743) | (7,238) |
Comprehensive income (loss) | $ 55,440 | $ (34,084) | $ 35,774 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Reclassification adjustment for (losses) gains on securities available-for-sale included in net income, tax | $ 4,200 | $ 400 | $ 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, 2020 | $ 113,384 | $ 3,736 | $ 208,371 | $ 18,405 | $ 343,896 | ||
Balance (in shares) at Dec. 31, 2020 | 15,388,423 | ||||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net Income | 43,012 | 43,012 | |||||
Other comprehensive loss, net of tax | (7,238) | (7,238) | |||||
Stock options exercised; net of shares surrendered for cashless exercises | $ 422 | (141) | 281 | ||||
Stock options exercised; net of shares surrendered for cashless exercises (in shares) | 25,452 | ||||||
Restricted stock granted | $ 680 | (680) | |||||
Restricted stock granted (in shares) | 73,912 | ||||||
Restricted stock surrendered due to employee tax liability | $ (89) | (203) | (292) | ||||
Restricted stock surrendered due to employee tax liability (in shares) | (12,122) | ||||||
Restricted stock forfeited / cancelled (in shares) | (18,217) | ||||||
Stock based compensation - stock options | 118 | 118 | |||||
Stock based compensation - restricted stock | 877 | 877 | |||||
Stock repurchase | $ (1,390) | (3,538) | (4,928) | ||||
Stock repurchase (in shares) | (187,438) | ||||||
Cash dividends | (13,232) | (13,232) | |||||
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 | 33,659 | 33,659 | |||||
Other comprehensive loss, net of tax | (67,743) | (67,743) | |||||
Stock options exercised; net of shares surrendered for cashless exercises | $ 1,360 | (1,046) | 314 | ||||
Stock options exercised; net of shares surrendered for cashless exercises (in shares) | 29,640 | ||||||
Restricted stock granted (in shares) | 70,465 | ||||||
Restricted stock surrendered due to employee tax liability | $ (114) | (227) | (341) | ||||
Restricted stock surrendered due to employee tax liability (in shares) | (15,309) | ||||||
Restricted stock forfeited / cancelled (in shares) | (1,872) | ||||||
Stock based compensation - stock options | 84 | 84 | |||||
Stock based compensation - restricted stock | 1,200 | 1,200 | |||||
Stock repurchase | $ (1,325) | (3,526) | (4,851) | ||||
Stock repurchase (in shares) | (182,562) | ||||||
Cash dividends | (13,919) | (13,919) | |||||
Balance at Dec. 31, 2022 | $ 112,928 | 4,148 | $ (7,315) | 243,082 | (56,576) | $ (7,315) | 303,582 |
Balance (in shares) at Dec. 31, 2022 | 15,170,372 | ||||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net Income | 34,844 | 34,844 | |||||
Other comprehensive loss, net of tax | 20,596 | 20,596 | |||||
Restricted stock granted (in shares) | 129,904 | ||||||
Restricted stock surrendered due to employee tax liability | $ (145) | (246) | (391) | ||||
Restricted stock surrendered due to employee tax liability (in shares) | (19,317) | ||||||
Restricted stock forfeited / cancelled (in shares) | (6,033) | ||||||
Restricted stock vested in period | $ 1,316 | (1,316) | |||||
Stock based compensation - stock options | 69 | 69 | |||||
Stock based compensation - restricted stock | 1,680 | 1,680 | |||||
Stock repurchase | $ (3,574) | (4,916) | (8,490) | ||||
Stock repurchase (in shares) | (481,094) | ||||||
Excise tax on stock repurchase | $ (79) | (79) | |||||
Cash dividends | (13,714) | (13,714) | |||||
Balance at Dec. 31, 2023 | $ 110,446 | $ 4,581 | $ 259,050 | $ (35,980) | $ 338,097 | ||
Balance (in shares) at Dec. 31, 2023 | 14,793,832 |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | |||
Common Stock, Dividends, Per Share, Declared | $ 0.92 | $ 0.92 | $ 0.87 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 34,844 | $ 33,659 | $ 43,012 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Gain on sales of securities | (396) | (1,487) | (11) |
Realized losses on available-for-sale securities | 14,500 | ||
Loss (gain) on disposal of fixed assets | (15,270) | 8 | (180) |
Gain on sale on foreclosed assets | (8) | (153) | |
Writedowns on foreclosed assets | 91 | 174 | |
Stock based compensation expense | 1,749 | 1,284 | 995 |
Provision (benefit) for credit losses on loans | 4,058 | 10,898 | (3,650) |
(Benefit) provision for credit losses on held-to-maturity securities | (47) | 63 | |
Depreciation and amortization | 2,356 | 2,536 | 3,237 |
Net amortization on securities premiums and discounts | 2,872 | 3,519 | 4,914 |
Accretion of discounts for loans acquired and net deferred loan fees | (311) | (279) | (411) |
(Increase) decrease in cash surrender value of life insurance policies | (1,905) | 996 | (2,648) |
Amortization of core deposit intangible | 876 | 1,000 | 1,032 |
(Increase) decrease in interest receivable and other assets | (20,525) | (29,283) | 6,435 |
Increase in other liabilities | 31,835 | 9,481 | 1,602 |
Deferred income tax (benefit) provision | (2,343) | 311 | 85 |
Decrease (increase) in equity securities | 291 | 332 | (2,523) |
Net amortization of partnership investment | 661 | 451 | 746 |
Net cash provided by operating activities | 53,245 | 33,572 | 52,656 |
Cash flows from investing activities: | |||
Maturities and calls of securities available for sale | 71,065 | 11,003 | 10,390 |
Proceeds from sales of securities available for sale | 25,676 | 45,903 | 148 |
Purchases of securities available for sale | (197,153) | (526,498) | (568,174) |
Principal pay downs on securities available for sale | 45,269 | 72,831 | 113,117 |
Net purchases of FHLB stock | (1,929) | (336) | |
Loan (payments) and originations, net | (60,025) | (76,225) | 472,589 |
Purchases of premises and equipment, net | (1,415) | (1,272) | (371) |
Proceeds from sales of fixed assets | 20,079 | 1,426 | |
Proceeds from sales of foreclosed assets | 19,151 | 10 | 950 |
Purchase of bank owned life insurance | (125) | (24) | (39) |
Liquidation of bank-owned life insurance | 165 | 23 | |
Proceeds from BOLI death benefit | 2,462 | 1,078 | 984 |
Amortization of debt issuance costs | 90 | 73 | |
Net increase in partnership investment | (7,000) | (7,562) | (10,400) |
Net cash used in investing activities | (83,690) | (480,996) | 20,620 |
Cash flows from financing activities: | |||
(Decrease) increase in deposits | (84,941) | 64,592 | 156,966 |
Increase (decrease) in borrowed funds | 56,500 | 94,000 | (42,900) |
(Decrease) increase in repurchase agreements | (2,048) | 2,232 | 67,799 |
Increase (decrease) in fed funds purchased | 5,000 | 125,000 | (100,000) |
Cash dividends paid | (13,714) | (13,919) | (13,232) |
Repurchases of common stock | (8,881) | (5,192) | (5,220) |
Stock options exercised | 314 | 281 | |
Proceeds from issuance of subordinated debt | 49,141 | ||
Net cash provided by financing activities | 31,916 | 267,027 | 112,835 |
Proceeds from long-term Federal Home Loan Bank advances and other debt | 80,000 | ||
(Decrease) increase in cash and due from banks | 1,471 | (180,397) | 186,111 |
Cash and cash equivalents, beginning of year | 77,131 | 257,528 | 71,417 |
Cash and cash equivalents, end of year | 78,602 | 77,131 | 257,528 |
Cash paid during the year for: | |||
Interest | 48,545 | 10,777 | 3,649 |
Income taxes | 10,355 | 13,165 | 13,554 |
Supplemental disclosure of noncash investing and financing activities: | |||
Real estate acquired through foreclosure | 15,406 | 0 | $ 93 |
Operating right-of-use asset from branch facilities sale leaseback transaction | 17,859 | 0 | |
Operating lease liability from branch facilities sale leaseback transaction | $ 13,755 | $ 0 |
The Business of Sierra Bancorp
The Business of Sierra Bancorp | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
THE BUSINESS OF SIERRA BANCORP | 1. THE BUSINESS OF SIERRA BANCORP Sierra Bancorp (the “Company”) is a California corporation registered as a bank holding company under the Bank Holding Company Act of 1956, as amended, and is headquartered in Porterville, California. The Company was incorporated in November 2000 and acquired all of the outstanding shares of Bank of the Sierra (the “Bank”) in August 2001. The Company’s principal subsidiary is the Bank, and the Company exists primarily for the purpose of holding the stock of the Bank and its subsidiaries, two special purpose entities organized to facilitate repossessed assets, and of such other subsidiaries it may acquire or establish. The Company’s only other direct subsidiaries are 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. At December 31, 2023, the Bank operated 35 full service branch offices and an online branch and provides specialized lending services through a dedicated agricultural credit office, Mortgage Warehouse lending divisions, a dedicated loan production office in Roseville, California and an agricultural production office in Templeton, California. The Bank’s deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to applicable legal limits. The Bank maintains a diversified loan portfolio comprised of agricultural, commercial, consumer, real estate, construction and mortgage loans. Loans are made in California within the market area of the South Central San Joaquin Valley, the Central Coast, Ventura County and neighboring communities. These areas have diverse economies with principal industries being agriculture, real estate and light manufacturing. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company and the consolidated accounts of its wholly owned subsidiary, Bank of the Sierra. All significant intercompany balances and transactions have been eliminated. Certain reclassifications have been made to prior years’ balances to conform to classifications used in 2023. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (U.S. GAAP) and prevailing practices within the banking industry. In accordance with U.S. GAAP, the Company’s investments in Sierra Statutory Trust II, Sierra Capital Trust III and Coast Bancorp Statutory Trust II are not consolidated and are accounted for under the equity method and included in other assets on the consolidated balance sheet. The subordinated debentures issued and guaranteed by the Company and held by the trusts are reflected on the Company’s consolidated balance sheet. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. Material estimates that are particularly susceptible to significant changes in the near-term relate to the determination of the allowance for credit losses, income taxes and deferred tax assets and liabilities, and goodwill. In connection with the determination of the allowances for credit losses and other real estate, management obtains independent appraisals for significant properties, evaluates the overall loan portfolio characteristics and delinquencies, and monitors economic conditions. Reclassifications Certain amounts in the Consolidated Income Statements for the prior periods have been reclassified to conform to the current presentation. The reclassifications had no effect on net income or stockholders’ equity as previously reported. Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash and deposits with other financial institutions with original maturities within 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions, and fed funds purchased and repurchase agreements. Securities Debt securities may be classified as held to maturity and carried at amortized cost when management has the positive ability and intent to hold them to maturity. Debt securities are classified as available for sale when they might be sold before maturity. Equity securities with readily determinable fair values are classified as available for sale. Debt securities classified as available for sale are carried at fair value with unrealized holding gains and losses reported in other comprehensive income, net of tax. Securities designated as held-to-maturity, are carried at the amortized cost basis of the securities in question, which includes purchase premium or discount in addition to any unamortized premium or discount representing the unrealized gain or loss on any individual security at the time it was transferred from the available for sale designation. Notably, the Company has elected the practical expedient under GAAP to exclude accrued interest from the amortized-cost-basis of held-to-maturity securities and does not evaluate accrued interest receivable for an allowance for credit losses because any past due interest receivable on its held-to-maturity portfolio is reversed from income timely. Accrued interest on held-to-maturity securities and available-for-sale other assets Interest income includes amortization of purchase premium or discount. Premiums or discounts on securities are amortized on the level-yield method without anticipating prepayments. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management determines the appropriate classification of its investments at the time of purchase and may only change the classification in certain limited circumstances. All transfers between categories are accounted for at fair value. 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. At December 31, 2023, the Company had no recorded Allowance for Credit Losses on its securities designated as available-for-sale. Under CECL, held-to-maturity debt securities are evaluated for reserves in the same manner as loans. On April 1, 2022, the Company transferred $162.1 million of Agency, Mortgaged-Backed and Municipal securities from available-for-sale to held-to maturity. 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 $28.4 million, on securities transferred from the available-for-sale to held-to-maturity categorization, remains as of December 31, 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 and no allowance for credit losses has been established for 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. As of December 31, 2023, an allowance for credit losses of $0.02 million had been established on the Bank’s held-to-maturity portfolio, a slight decrease from the allowance for credit losses of $0.06 million at December 31, 2022. FHLB Stock and Other Investments The Bank is a member of the Federal Home Loan Bank ("FHLB") system. Members are required to own a certain amount of stock based on the level of borrowings and other factors and may invest in additional amounts. FHLB stock is carried at cost in other assets, and periodically evaluated for impairment based on the ultimate recovery of par value. Both cash and stock dividends are reported as income. The Bank’s investment in FHLB stock was approximately $14.7 million at December 31, 2023, and $12.7 million at December 31, 2022. Loans (Financing Receivables) Our credit quality classifications of Loans include Pass, Special Mention and Substandard. These classifications are defined in Note 4 to the consolidated financial statements. Loans are reported on the amortized cost basis. The amortized cost basis of the Company’s loans is comprised of the principal balance outstanding, net of remaining deferred loan fees and costs, purchase premiums and discounts, and also net of any write-downs. Notably, 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 the Company’s Loans continues to be included in other assets on the Company’s balance sheet and as of December 31, 2023, measured $5.6 million. Loan origination fees, net of certain deferred origination costs, and purchase premiums and discounts are recognized in interest income as an adjustment to yield of the related loans over the contractual life of the loan using both the effective interest and straight-line methods without anticipating prepayments. Interest income for all performing loans, regardless of classification (Pass, Special Mention, Substandard), is recognized on an accrual basis, with interest accrued daily. Costs associated with successful loan originations are netted from loan origination fees, with the net amount (net deferred loan fees) amortized over the contractual life of the loan in interest income. If a loan has scheduled periodic payments, the amortization of the net deferred loan fee is calculated using the effective interest method over the contractual life of the loan. If the loan does not have scheduled payments, such as a line of credit, the net deferred loan fee is recognized as interest income on a straight-line basis over the contractual life of the loan. Fees received for loan commitments are recognized as interest income over the term of the commitment. When loans are repaid, any remaining unamortized balances of deferred fees and costs are accounted for through interest income. Generally, the Company places a loan or lease on nonaccrual status and ceases recognizing interest income when it has become delinquent more than 90 days and/or when Management determines that the repayment of principal and collection of interest is unlikely. 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 non-accrual. Once a loan is on non-accrual 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. Due to loans being placed on nonaccrual status, $0.4 million of interest receivable on loans was reversed from interest income for the year ended December 31, 2023. Allowance for Credit Losses - Loans The Allowance for Credit Losses (“ACL”) on the loan portfolio is a valuation allowance deducted from the recorded balance in loans. 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 ACL for loans is separated between a collective reserve evaluation, for loans where similar risk characteristics exist and an individual reserve evaluation for loans without similar risk characteristics. The collective evaluation of loans is performed at the portfolio segment level, using call code as the primary segmentation key but also considering similarity in quantitative reserve methodology. The Company’s ACL is categorized according to the following portfolio segments: 1-4 Family Real Estate, Commercial Real Estate, Farmland & Agricultural Production, Commercial & Industrial, Mortgage Warehouse, and Consumer. Loans secured by 1-4 family residences have a different profile from loans secured by Commercial Real Estate. Generally, the borrowers for 1-4 Family 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 utilizes a discounted cash flow methodology to estimate the quantitative portion of collectively evaluated reserves for the 1-4 Family Real Estate, Commercial Real Estate, Commercial & Industrial and Mortgage Warehouse portfolio segments. Management utilizes a Remaining Life Quantitative Reserve Methodology for the Farmland & Agricultural Production, and Consumer portfolio segments. Within the portfolio segments utilizing the DCF quantitative reserve methodology, management has made the election to adjust the effective interest rate to consider the impact of expected prepayments. Loans where similar risk characteristics exist are evaluated for the ACL in the collective reserve evaluation. The Company’s policy is that loans designated as nonaccrual no longer share risk characteristics similar to other loans evaluated collectively and as such, all nonaccrual loans are individually evaluated for reserves. As of December 31, 2023, the Bank’s nonaccrual loans comprised the entire population of loans individually evaluated. The Company’s policy is that nonaccrual loans also represent the subset of loans where borrowers are experiencing financial difficulty where an evaluation of the source of repayment is required to determine if the nonaccrual loan should be categorized as collateral dependent. It is the Company’s policy that the only loans where the credit quality has deteriorated to the point where foreclosure is probable are the Company’s nonaccrual loans. Most of the Company’s business activity is with customers located in California within the Southern Central San Joaquin Valley; in the corridor stretching between Santa Paula and Santa Clarita in Southern California, and on the Central Coast. Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy in those regions. The Company considers this concentration of credit risk when assessing and assigning qualitative factors in the allowance for credit. Though management believes the allowance for credit losses to be adequate, ultimate losses may vary from their estimates. However, estimates are reviewed periodically, and as adjustments become necessary, they are reported in earnings during the periods they become known. In addition, the FDIC and the California Department of Financial Protection and Innovation, as an integral part of their examination processes, review the allowance for credit losses. These agencies may require additions to the allowance for credit losses based on their judgment about information available at the time of their examinations. Allowance for Credit Losses - Off-Balance Sheet Commitments In addition to the exposure to credit loss from outstanding loans, the Company is also exposed to credit loss from certain off-balance sheet commitments such as unused commitments from revolving lines of credit, certain mortgage warehouse lines of credit, construction loans and commercial and standby letters of credit. Because the available funds have not yet been disbursed on these commitments the estimated losses are not included in the calculation of the allowance for credit losses on the loan portfolio. The implementation of CECL also impacted the Company’s ACL on unfunded loan commitments, as this ACL now represents expected credit losses over the contractual life of commitments not identified as unconditionally cancellable by the Company. The Reserve for 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. Under CECL the ACL on unfunded loan commitments remains in Other Liabilities while any related provision expense has been moved to provision for credit loss expense from its prior presentation in noninterest expense. Prior period expense have not been reclassified for comparative purposes. Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The useful lives of premises range between twenty-five three Impairment of long-lived assets is evaluated by management based upon an event or changes in circumstances surrounding the underlying assets which indicate long-lived assets may be impaired. Leases Leases are classified as operating or finance leases at the lease commencement date. The Company leases certain locations classified as operating leases. The Company records leases on the balance sheet in the form of a lease liability for the present value of future minimum payments under the lease terms and a right-of-use asset equal to the lease liability adjusted for items such as deferred or prepaid rent, lease incentives, and any impairment of the right-of-use asset. The discount rate used in determining the lease liability is based upon incremental borrowing rates the Company could obtain for similar loans as of the date of commencement or renewal. The Company does not record short term leases with an initial lease term of one year or less on the consolidated balance sheets. At lease inception, the Company determines the lease term by considering the noncancelable lease term and all optional renewal periods that the Company is reasonably certain to renew. The lease term is also used to calculate straight-line lease expense. Leasehold improvements are amortized over the shorter of the useful life and the estimated lease term. The Company’s leases do not contain residual value guarantees or material variable lease payments that will impact the Company's ability to pay dividends or cause the Company to incur additional expenses. Operating lease expense consists of a single lease cost allocated over the remaining lease term on a straight-line basis and variable lease expense. Lease expense is included in occupancy and equipment expense on the Company's consolidated statements of income. The Company's variable lease expense includes rent escalators that are based on market conditions and include items such as common area maintenance, utilities, parking, property taxes, insurance and other costs associated with the lease. The amortization of the right-of-use asset arising from finance leases is expensed through occupancy and equipment expense. Foreclosed Assets Foreclosed assets include real estate and other property acquired in full or partial settlement of loan obligations. Upon acquisition, any excess of the recorded investment in the loan balance over the appraised fair market value, net of estimated selling costs, is charged against the allowance for credit losses on loans. A valuation allowance for losses on foreclosed assets is maintained to provide for subsequent declines in value. The allowance is established through a provision for losses on foreclosed assets which is included in other noninterest expense. Subsequent gains or losses on sales or write-downs resulting from permanent impairments are recorded in other noninterest expense as incurred. Operating costs after acquisition are expensed. The Company had no foreclosed residential real estate properties recorded at December 31, 2023. At December 31, 2023, there were no consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceeds were in process. Goodwill and Other Intangible Assets The Company acquired Sierra National Bank in 2000, Santa Clara Valley Bank in 2014, Coast National Bank in 2016, and Ojai Community Bank and the Woodlake Branch of Citizen’s Business Bank in 2017. Goodwill resulting from business combinations after January 1, 2009, is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized but are tested for impairment at least annually or more frequently if events and circumstances exist which indicate that an impairment test should be performed. The Company selected October 1, 2023, as the date to perform the annual impairment test for 2023. Goodwill is the only intangible asset with an indefinite life on our balance sheet. There was no impairment recognized for the years ended December 31, 2023, 2022, and 2021. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. The Company’s other intangible assets consist solely of core deposit intangible assets (CDI’s) arising from the acquisitions of Santa Clara Valley Bank, Coast National Bank, Ojai Community Bank, the Woodlake Branch of Citizen’s Business Bank and the Lompoc branch of Santa Maria Community Bank. All of the CDI’s are being amortized on a straight-line basis over eight years. Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Details regarding these commitments and financial instruments are discussed in detail in Note 14 to the consolidated financial statements. Income Taxes The Company files its income taxes on a consolidated basis with its subsidiary. The allocation of income tax expense represents each entity’s proportionate share of the consolidated provision for income taxes. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely to be realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. We have determined that as of December 31, 2023, all tax positions taken to date are highly certain and, accordingly, no accounting adjustment has been made to the financial statements. The Company recognizes interest and penalties related to uncertain tax positions as part of income tax expense. Salary Continuation Agreements and Directors’ Retirement Plan The Company has entered into agreements to provide members of the Board of Directors and certain key executives, or their designated beneficiaries, with annual benefits for up to fifteen years after retirement or death. The Company accrues for these future benefits from the effective date of the plan until the director’s or executive’s expected retirement date in a systematic and rational manner. At the consolidated balance sheet date, the amount of accrued benefits equals the then present value of the benefits expected to be provided to the director or employee, any beneficiaries, and covered dependents in exchange for the director’s or employee’s services to that date. Comprehensive Income Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes fluctuations in unrealized gains and losses on securities available for sale, net of an adjustment for the effects of realized gains and losses and any applicable tax. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of other comprehensive income that historically has not been recognized in the calculation of net income. Unrealized gains and losses on the Company’s available for sale securities, net of tax, are included in other comprehensive income after adjusting for the effects of realized gains and losses. Total comprehensive income and the components of accumulated other comprehensive income (loss) are presented in the consolidated statements of comprehensive income. Stock-Based Compensation At December 31, 2023, the Company had one active stock-based compensation plan, the Sierra Bancorp 2023 Equity Compensation Plan (the “2023 Plan”), which was adopted by the Company’s Board of Directors on March 17, 2023 and approved by the Company’s shareholders on May 24, 2023. The 2023 Plan replaced the Company’s 2017 Stock Incentive Plan (the “2017” Plan), which expired by its own terms on March 16, 2023. Unvested restricted stock and options to purchase shares granted under the 2017 Plan and its predecessor the 2007 Stock Incentive Plan (the “2007” Plan) that remained outstanding were unaffected by that plan’s termination. The 2023 Plan covers 360,000 shares of the Company’s authorized but unissued common stock, subject to adjustment for stock splits and dividends, and provides for the issuance of both “incentive” and “nonqualified” stock options to salaried officers and employees, and of “nonqualified” stock options to non-employee directors. The 2023 Plan also provides for the issuance of restricted stock awards to these same classes of eligible participants. Compensation cost and director’s expense is recognized for stock options and restricted stock awards issued to employees and directors and is recognized over the required service period, generally defined as the vesting period. The Company is using the Black-Scholes model to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. The “multiple option” approach for stock options is used to allocate the resulting valuation to actual expense for current period. Expected volatility is based on historical volatility of the Company’s common stock. The Company uses historical data to estimate stock option exercise and post-vesting termination behavior. The expected term of stock options granted is based on historical data and represents the period of time that options granted are expected to be outstanding subsequent to vesting, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the stock option is based on the U.S. Treasury yield curve in effect at the time of the grant. No stock options were granted during the years ended December 31, 2023, 2022 and 2021. Revenue Recognition Revenue from contracts with customers subject to ASC 606 comprises the noninterest income earned by the Company in exchange for services provided to customers. Income associated with customer contracts generally involve transaction prices that are fixed and performance obligations which are satisfied as services are rendered. In most cases recognition occurs within a single financial reporting period as there is little or no judgement involved in the timing of revenues. We generally act in a principal capacity, on our own behalf, in most of our contracts with customers. In such transactions, we recognize revenue and the related costs to provide our services on a gross basis in our financial statements. Service Charges on Deposit Accounts comprise charges on retail and business accounts. Business customers can earn credits depending on account type and deposit balances maintained with the Company, which may be used to offset fees. Fees and credits are based on predetermined, agreed-upon rates. In some cases, we act in an agent capacity, deriving revenue through assisting other entities in transactions with our customers. In such transactions, we recognize revenue and those related costs to provide services on a gross basis in our financial statements. Debit card interchange income is derived from our customers’ use of various interchange and ATM/debit card networks which are the primary sources of revenue generated in an agent capacity. Recent Accounting Pronouncements In September 2016 the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which eliminates the probable initial recognition threshold for credit losses in current U.S. GAAP, and instead requires an organization to record an estimate of expected credit losses over the contractual term for financial assets carried at amortized cost (generally loans and held-to-maturity investment securities) in addition to certain off balance-sheet credit exposure. Under the current expected credit losses (“CECL”) methodology expected credit losses for financial assets are estimated over the contractual life of the financial asset, adjus |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | 3. 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 and fair value of the securities available-for-sale and held-to-maturity are as follows (dollars in thousands): December 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Estimated Fair Value Available-for-sale U.S. government agencies $ 102,823 $ 23 $ (97) $ — $ 102,749 Mortgage-backed securities 100,745 21 (1,222) — 99,544 State and political subdivisions 200,057 572 (6,423) — 194,206 Corporate bonds 65,273 — (13,233) — 52,040 Collateralized loan obligations 573,027 1,113 (3,478) — 570,662 Total available-for-sale securities $ 1,041,925 $ 1,729 $ (24,453) $ — $ 1,019,201 Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Estimated Fair Value Allowance for Credit Losses Held-to-maturity U.S. government agencies $ 5,522 $ — $ (617) $ 4,905 $ — Mortgage-backed securities 142,295 — (10,441) 131,854 — State and political subdivisions 172,256 5,909 — 178,165 (16) Total held-to-maturity securities $ 320,073 $ 5,909 $ (11,058) $ 314,924 $ (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 173,424 585 1,018 175,027 (63) Total held-to-maturity securities $ 336,944 $ 585 $ (9,518) $ 328,011 $ (63) The Company did not record an ACL on the available-for-sale portfolio at December 31, 2023 or upon the implementation of CECL on January 1, 2022. As of both dates the Company considers the unrealized loss across the classes of major security-type to be related to fluctuations in market conditions, primarily interest rates, and not reflective of a deterioration in credit value. The Company maintains that it has intent and ability to hold these securities until the amortized cost basis of each security is recovered and likewise concluded as of both January 1, 2022 and December 31, 2023 that it was not more likely than not that any of the securities in an unrealized loss position would be required to be sold. For the years ended December 31, 2023, 2022, and 2021, proceeds from sales of securities available-for-sale were $25.7 million, $45.9 million, and $0.1 million, respectively. Gains and losses on the sale of investment securities are recorded on the trade date and are determined using the specific identification method. Gross gains and losses from the sales and calls of securities for the years ended were as follows (dollars in thousands): December 31, 2023 2022 2021 Gross gains on sales and calls of securities $ 396 $ 1,487 $ 11 Gross losses on sales and calls of securities — — — Net gains (losses) on sales and calls of securities $ 396 $ 1,487 $ 11 The Company has reviewed all sectors and securities in the portfolio for impairment. During the year ended December 31, 2023 the Company realized gains through earnings from the sale and call of 37 debt securities for $0.4 million. There were no securities sold during 2023 for which a loss was realized. During the year ended December 31, 2022, the Company realized gains through earnings from the sale and call of 54 debt securities for $1.5 million. There were no securities sold during 2022 for which a loss was realized. During the year ended December 31, 2021 the Company realized gains through earnings from the sale and call of 21 debt securities for $0.01 million. There were no securities sold during 2021 for which a loss was realized. The Company recognized a $14.5 million loss for the year ending December 31, 2023 on investment securities intended for sale and subsequently sold in January 2024. Included in this sale were $4.0 million in U.S. government agencies, $74.8 million in mortgage-backed securities, and $117.9 million in state and political subdivisions. 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 (dollars in thousands): December 31, 2023 Less than twelve months Twelve months or longer 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 14 $ (97) $ 46,823 $ — $ 3,929 $ (97) $ 50,752 Mortgage-backed securities 321 — 20 (1,222) 94,505 (1,222) 94,525 State and political subdivisions 201 (33) 6,950 (6,390) 125,283 (6,423) 132,233 Corporate bonds 51 (118) 2,316 (13,115) 49,724 (13,233) 52,040 Collateralized loan obligations 47 — — (3,478) 393,258 (3,478) 393,258 Total available-for-sale 634 $ (248) $ 56,109 $ (24,205) $ 666,699 $ (24,453) $ 722,808 December 31, 2022 Less than twelve months Twelve months or longer 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 amortized cost and estimated fair value of investment securities available-for-sale and held-to-maturity at December 31, 2023 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without penalties (dollars in thousands): December 31, 2023 Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturing within one year $ 583 $ 582 $ 145 $ 145 Maturing after one year through five years 40,187 39,916 2,413 2,384 Maturing after five years through ten years 156,541 143,516 19,895 18,350 Maturing after ten years 170,842 164,981 155,325 162,191 Securities not due at a single maturity date: Mortgage-backed securities 100,745 99,544 142,295 131,854 Collateralized loan obligations 573,027 570,662 — — $ 1,041,925 $ 1,019,201 $ 320,073 $ 314,924 Securities with amortized costs totaling $570.4 million and carrying values totaling $551.5 million were pledged to secure other contractual obligations and short-term borrowing arrangements at December 31, 2023 (see Note 10). Securities available-for-sale with amortized costs totaling $186.7 million and estimated fair values totaling $183.5 million were pledged to secure other contractual obligations and short-term borrowing arrangements at December 31, 2022 (see Note 10). At December 31, 2023, the Company’s investment portfolio included securities issued by 398 different government municipalities and agencies located within 36 states with a fair value of $372.4 million. The largest exposure to any single municipality or agency was $5.3 million (fair value) in four 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 $52.0 million (fair value). The Company’s investments in bonds issued by states, municipalities and political subdivisions are evaluated in accordance with Supervision and Regulation Letter 12-15 (SR 12-15) issued by the Board of Governors of the Federal Reserve System, “Investing in Securities without Reliance on Nationally Recognized Statistical Rating Organization Ratings”, 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 (dollars in thousands): December 31, 2023 December 31, 2022 General obligation bonds Amortized Cost Fair Value Amortized Cost Fair Value State of Issuance: Texas $ 146,215 $ 146,589 $ 153,209 $ 146,667 California 63,316 61,048 65,758 60,701 Washington 20,212 20,400 21,635 21,312 Other (29 and 29 states, respectively) 94,936 96,606 102,336 100,480 Total general obligation bonds 324,679 324,643 342,938 329,160 Revenue bonds State of Issuance: Texas 8,850 8,899 9,216 8,840 California 3,794 3,735 3,788 3,673 Washington 4,035 3,591 4,083 3,490 Other (20 and 20 states, respectively) 30,955 31,503 37,209 35,844 Total revenue bonds 47,634 47,728 54,296 51,847 Total obligations of states and political subdivisions $ 372,313 $ 372,371 $ 397,234 $ 381,007 The following table summarizes the amortized cost and fair value of revenue bonds in the Company’s investment securities portfolio at the indicated dates, identifying the revenue source of repayment for our largest source concentrations (dollars in thousands): December 31, 2023 December 31, 2022 Revenue bonds Amortized Cost Fair Value Amortized Cost Fair Value Revenue Source: Water $ 19,113 $ 19,158 $ 21,246 $ 19,977 Sewer 6,323 6,380 6,560 6,405 Lease 6,070 6,312 7,035 7,250 Sales tax 4,349 4,010 4,123 3,934 Other (10 and 10 sources, respectively) 11,779 11,868 15,332 14,281 Total revenue bonds $ 47,634 $ 47,728 $ 54,296 $ 51,847 |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Loans and Allowance for Credit Losses | 4. 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. Certain prior period credit quality disclosures related to impaired loans and individually and collectively evaluated loans were superseded with the current guidance and have not been included below as of December 31, 2023. Under CECL, disclosures are required on the amortized cost basis, whereas legacy GAAP required presentation on the recorded investment basis, with the primary difference being net deferred fees and costs. Unless specifically noted otherwise, December 31, 2023 and 2022 disclosures are prepared on the amortized cost basis and December 31, 2021 disclosures present information according to the recorded investment basis. Accrued interest receivable on loans of $5.6 million and $6.4 million at December 31, 2023 and December 31, 2022 respectively is not included in the loans included in the table below but is included in other assets on the Company’s balance sheet. 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 combines certain related 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. December 31, 2023 2022 Real estate: Residential real estate 412,063 437,446 Commercial real estate 1,328,224 1,311,158 Other construction/land 6,256 18,412 Farmland 67,276 113,394 Total real estate 1,813,819 1,880,410 Other commercial 156,272 102,967 Mortgage warehouse lines 116,000 65,439 Consumer loans 3,984 4,124 Subtotal 2,090,075 2,052,940 Plus (less) net deferred loan fees and costs 309 (123) Allowance for credit losses on loans (23,500) (23,060) Net loans $ 2,066,884 $ 2,029,757 The following tables present the amortized cost basis of nonaccrual loans, according to loan class, with and without individually evaluated reserves as of December 31, 2023 and 2022 (dollars in thousands): December 31, 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 414 — 414 — Commercial real estate — 7,457 7,457 — Farmland — — — — Total real estate 414 7,457 7,871 — Other commercial 114 — 114 14 Consumer loans — — — — Total $ 528 $ 7,457 $ 7,985 $ 14 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 2023, 2022, or 2021 and would have recognized an additional $0.1 million, $1.0 million, and $0.4 million in interest income on nonaccrual loans for the same periods, respectively, had those loans not been designated as nonaccrual. The following tables present the amortized cost basis of collateral-dependent loans by class as of December 31, 2022 and 2023 (dollars in thousands): December 31, 2023 Amortized Cost Individual Reserves Real estate: Residential real estate 414 — Commercial real estate 7,457 1,600 Other construction/land $ — $ — Farmland — — Total real estate 7,871 1,600 Other commercial 114 — Mortgage warehouse lines — — Consumer loans — — Total $ 7,985 $ 1,600 December 31, 2022 Amortized Cost Individual Reserves Real estate: Residential real estate 688 — Commercial real estate — — Other construction/land — — Farmland 15,812 — Total real estate 16,500 — Other commercial 3,043 39 Mortgage warehouse lines — — Consumer loans — — Total $ 19,543 $ 39 The weighted average loan-to-value ratio of collateral dependent loans was 54% at December 31, 2023 and 67% at December 31, 2022. There were no collateral dependent loans in the process of foreclosure as of December 31, 2023 and four collateral dependent loans in the process of foreclosure as of December 31, 2022. The following tables present the aging of the amortized cost basis in past-due loans, according to class, as of December 31, 2023 and 2022 (dollars in thousands): December 31, 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 1,768 — — 1,768 411,494 413,262 Commercial real estate — — — — 1,325,494 1,325,494 Other construction/land $ — $ — $ — $ — $ 6,268 $ 6,268 Farmland — — — — 67,510 67,510 Total real estate 1,768 — — 1,768 1,810,766 1,812,534 Other commercial 158 171 14 343 157,417 157,760 Mortgage warehouse lines — — — — 116,000 116,000 Consumer loans 47 — — 47 4,043 4,090 Total loans $ 1,973 $ 171 $ 14 $ 2,158 $ 2,088,226 $ 2,090,384 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 Occasionally, the Company modifies loans to borrowers in financial distress by providing principal forgiveness, rate reductions, payment deferral, or term extension. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses. In some cases, the Company provides multiple types on concessions on one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. For the loans included in the “combination” columns below, multiple types of modifications have been made on the same loan within the current reporting period. The combination is at least two of the following: principal forgiveness, rate reductions, payment deferral, and/or term extension. The following table presents the amortized cost basis of loans at December 31, 2023 that were both experiencing financial difficulty and modified during the year ended December 31, 2023, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below (dollars in thousands): December 31, 2023 Principal Forgiveness Term Extension Combination Term Extension Interest Rate Reduction Total Class of Financing Receivable Real estate: Residential real estate $ — $ — $ 26 0.01% Commercial real estate — — 148 0.01% Total real estate — — 174 0.01% Other commercial — 277 — 0.18% Consumer loans — 25 — 0.61% Total $ — $ 302 $ 174 0.02% The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the year ended December 31, 2023: December 31, 2023 Principal Forgiveness Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (years) Real estate: Residential real estate $ — 1.25% 14.30 Commercial real estate $ — 5.31% 15.67 Other commercial $ — — 4.76 Consumer loans $ — — 7.11 During the year ending December 31, 2023, there were no payment defaults, within a twelve month period of the modification date on loans identified as modifications made to borrowers experiencing financial difficulty. For purposes of this disclosure the Company defines a payment default as 90 days past due. In estimating the allowance for credit losses, the Company considers the performance of accruing loans which have been identified as modifications made to borrower’s experiencing financial difficulty in the same way it considers the performance of other collectively evaluated accruing loans. Loan modifications made to borrowers experiencing financial difficulty which have been placed on nonaccrual status are subject to an individual reserve evaluation. For the year ended December 31, 2022, under the legacy troubled debt restructuring (TDR) guidance, there were no new TDRs and no modifications of existing TDRs. The tables below summarize TDRs which were modified during the year ended December 31, 2021, by type of concession. Troubled Debt Restructurings, by Type of Loan Modification ( dollars in thousands) December 31, 2021 Rate Term Interest Only Rate & Term Term & Interest Modification Modification Modification Modification Modification Total Troubled debt restructurings Real estate: Other construction/land $ — $ — $ — $ — $ — $ — 1-4 family - closed-end — — — — — — Equity lines — — — — — — Multi-family residential — 1,000 — 83 — 1,083 Commercial real estate owner occupied — — — — — — Commercial real estate non-owner occupied — 136 — — — 136 Farmland — — — — — — Total real estate loans — 1,136 — 83 — 1,219 Agricultural — 118 — — — 118 Commercial and industrial — 185 — — — 185 Consumer loans — 44 — — 23 67 Small Business Administration Loans — — — — — — Total $ — $ 1,483 $ — $ 83 $ 23 $ 1,589 Troubled Debt Restructurings (dollars in thousand) Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Reserve December 31, 2021 Loans Investment Investment Difference (1) Real estate: Other construction/land — $ — $ — $ — 1-4 family - closed-end — — — — Equity lines — — — — Multi-family residential 2 1,083 1,083 — Commercial real estate - owner occupied — — — — Commercial real estate - non-owner occupied 1 137 136 (1) Farmland — — — — Total real estate loans 1,220 1,219 (1) Agricultural 1 118 118 116 Commercial and industrial 1 185 185 (1) Consumer loans 3 67 67 2 Total $ 1,590 $ 1,589 $ 116 The Company had no finance receivables modified as TDRs within the previous twelve months that defaulted or were charged off during years ending December 31, 2022 and 2021. Credit Quality 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 December 31, 2023 and 2022 (dollars in thousands): December 31, 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 $ - $ 104,141 $ 228,849 $ 7,611 $ 1,979 $ 50,295 $ 12,797 $ 2,302 $ 407,974 Special mention - - 1,241 - - 2,942 20 284 4,487 Substandard - - - - - 494 115 192 801 Subtotal - 104,141 230,090 7,611 1,979 53,731 12,932 2,778 413,262 Commercial real estate Pass 112,254 275,626 58,310 475,353 51,100 251,163 22,929 - 1,246,735 Special mention 148 - - 39,654 3,010 8,489 - - 51,301 Substandard - - - 21,872 - 5,586 - - 27,458 Subtotal 112,402 275,626 58,310 536,879 54,110 265,238 22,929 - 1,325,494 Other construction/land Pass 352 - - 3,646 638 1,632 - - 6,268 Substandard - - - - - - - - - Subtotal 352 - - 3,646 638 1,632 - - 6,268 Farmland Pass 6,731 11,645 11,793 2,650 1,652 11,608 2,750 394 49,223 Special mention - - - 840 - 10,471 - - 11,311 Substandard - - - - - 6,976 - - 6,976 Subtotal 6,731 11,645 11,793 3,490 1,652 29,055 2,750 394 67,510 Other commercial Pass 18,319 6,501 2,666 6,622 4,534 9,354 101,163 1,171 150,330 Special mention - - 273 2,783 - 128 143 3,748 7,075 Substandard - - 55 - - - 208 92 355 Subtotal 18,319 6,501 2,994 9,405 4,534 9,482 101,514 5,011 157,760 Mortgage warehouse lines Pass - - - - - - 116,000 - 116,000 Subtotal - - - - - - 116,000 - 116,000 Consumer loans Pass 1,366 229 102 82 67 177 1,949 - 3,972 Special mention - - - 15 - 35 13 - 63 Substandard 55 - - - - - - - 55 Subtotal 1,421 229 102 97 67 212 1,962 - 4,090 Total $ 139,225 $ 398,142 $ 303,289 $ 561,128 $ 62,980 $ 359,350 $ 258,087 $ 8,183 $ 2,090,384 Gross charge-offs 2,145 45 250 2,266 81 1,345 489 6,621 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 December 31, 2023 the Company had no loans categorized as PCD. As noted in footnote 2, 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. 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. 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. 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 December 31, 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, non-accruals 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, 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. The following table presents the activity in the allowance for credit losses by portfolio segment for the year ended December 31, 2023 and 2022 (dollars in thousands): 1-4 Family 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) (9,205) (322) — (1,396) (12,834) Recoveries 99 260 — 163 — 764 1,286 Provision for credit losses 632 703 8,941 (26) (19) 667 10,898 Balance, December 31, 2022 $ 3,251 $ 17,732 $ 458 $ 1,233 $ 72 $ 314 $ 23,060 Charge-offs (30) (2,266) (1,277) (1,320) — (1,728) (6,621) Recoveries 205 17 1,370 425 — 986 3,003 Provision for credit losses (699) 3,071 35 810 102 739 4,058 Balance, December 31, 2023 $ 2,727 $ 18,554 $ 586 $ 1,148 $ 174 $ 311 $ 23,500 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | 5. PREMISES AND EQUIPMENT Premises and equipment at cost consisted of the following (dollars in thousands): December 31, 2023 2022 Land $ 2,694 $ 4,823 Buildings and improvements 11,919 21,170 Furniture, fixtures and equipment 17,857 18,948 Leasehold improvements 14,699 14,732 Total premises and equipment, gross 47,169 59,673 Less accumulated depreciation and amortization 30,262 37,195 Total premises and equipment, net $ 16,907 $ 22,478 Depreciation and amortization included in occupancy and equipment expense totaled $2.2 million, $2.4 million, and $3.1 million, for the years ended December 31, 2023, 2022, and 2021, respectively. |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Operating Leases | 6. OPERATING LEASES The Company leases space under non-cancelable operating leases for 28 branch locations, four off-site ATM locations, one administrative building, three loan production offices and a warehouse. Many of our leases include both lease (e.g., fixed payments including rent, taxes, and insurance costs) and non-lease components (e.g., common-area or other maintenance costs). Payments for taxes and insurance as well as non-lease components are not included in the accounting of the lease component, but are separately accounted for in occupancy expense. The Company recognized lease expense of $2.3 million for the year ended December 31, 2023 and $2.2 million for the years ended December 31, 2022 and 2021. Most leases include one or more renewal options available to exercise. The exercise of lease renewal options is typically at the Company’s sole discretion; therefore, the majority of renewals to extend the lease terms are not included in our right-of-use assets and lease liabilities as they are not reasonably certain of exercise. We regularly evaluate the renewal options and when they are reasonably certain of exercise, we include the renewal period in our lease term. As most of our leases do not provide an implicit rate, we used our incremental borrowing rate in determining the present value of the lease payments. There were no leveraged leases or lease transactions with related parties during the years ending December 31, 2023 and 2022. In December 2023 the Company completed a sale and leaseback transaction on 11 branch buildings with a book value of $4.8 million, for a gain on sale of $15.3 million. These branch buildings were subsequently leased back to the Company and are reflected in the tables in this footnote. This sale and leaseback transaction resulted in additions to the Company’s right of use asset and operating lease liability of $18.0 million and $13.8 million, respectively at the year ended December 31, 2023. The new leases have an average life of 18 years. There were no sale and leaseback transactions during the year ended December 31, 2022. At December 31, 2023, the Company’s right-of-use assets and operating lease liabilities were $25.8 million and $21.9 million, respectively. The weighted average remaining lease term for the lease liabilities was 13.3 years, and the weighted average discount rate of remaining payments was 8.4 percent. At December 31, 2022, the Company’s right-of-use assets and operating lease liabilities were $6.9 million and $7.3 million, respectively. The weighted average remaining lease term for the lease liabilities was 5.8 years, and the weighted average discount rate of remaining payments was 4.7 percent for the year ended December 31, 2022. Lease liabilities from new right-of-use assets obtained during the year ending December 31, 2023 and December 31, 2022 were $20.7 million and $3.3 million, respectively. There was $0.2 million, $0.03 million, and $0.008 million in variable lease costs for the years ending December 31, 2023, 2022, and 2021, respectively. Cash paid on operating leases was $2.3 million for both of the years ending December 31, 2023 and 2022, respectively. Future undiscounted lease payments for operating leases with initial terms of one year or more as of December 31, 2023 are as follows (dollars in thousands): Year Ending December 31, 2024 $ 3,625 2025 3,330 2026 3,019 2027 2,907 2028 2,375 Thereafter 24,283 Total undiscounted lease payments $ 39,539 Less: imputed interest (17,593) Net lease liabilities $ 21,946 The Company generally has options to renew its facilities leases after the initial leases expire. The renewal options range from one |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets | 7. GOODWILL AND INTANGIBLE ASSETS Goodwill The balance of goodwill at the years beginning and ended December 31, 2023, 2022 and 2021 was $27.4 million. There was no acquired goodwill or impairment for the years ended December 31, 2023, 2022 and 2021. The Company performs its annual goodwill impairment tests annually, or more often if events or circumstances indicate the carrying value may not be recoverable. The annual assessment date was changed to October 1 in 2023 as it was December 31 in 2022, to allow more time for evaluation of impairment. The Company performed a Step 1 goodwill impairment assessment as of October 1, 2023 using a market approach. Based on the results of the Company’s goodwill impairment assessment, the Company determined that the fair value of its reporting unit, which was at the consolidated level, exceeded the carrying value. Therefore, goodwill was not impaired as of December 31, 2023 and there was no impairment charges related to the Company’s goodwill recorded during the year ended December 31, 2023. Acquired Intangible Assets Acquired intangible assets were as follows at year-end (dollars in thousands): Years Ended December 31, 2023 2022 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Core deposit intangibles $ 8,401 $ 7,002 $ 8,401 $ 6,126 Aggregate amortization expense was $0.9 million, $1.0 million, and $1.0 million for 2023, 2022, and 2021. Estimated amortization expense for each of the next five years and thereafter (dollars in thousands): 2024 $ 781 2025 566 2026 52 2027 — 2028 — Thereafter — Total $ 1,399 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2023 | |
Other Assets [Abstract] | |
Other Assets | 8. OTHER ASSETS Other assets consisted of the following (dollars in thousands): December 31, 2023 2022 Accrued interest receivable $ 20,347 $ 18,354 Deferred tax assets 28,682 34,984 Investment in qualified affordable housing projects 14,390 10,051 Investment in limited partnerships 4,359 4,359 Investment in SBA loan fund 25,000 25,000 Federal Home Loan Bank stock, at cost 14,657 12,729 Other 40,385 20,142 Total $ 147,820 $ 125,619 The Company holds ownership interests in limited partnerships and limited liability companies that invest in affordable housing, and small business investment companies which are included in other assets. These investments are designed to generate a return primarily through the realization of federal tax credits and deductions, which may be subject to recapture by taxing authorities if compliance requirements are not met, or for CRA credits. The Company accounts for its low income housing investments using the proportional amortization method and management analyzes these investments annually for potential impairment. The Company evaluates its interests in these entities to determine whether it has a variable interest and whether it is required to consolidate these entities. A variable interest is an investment or other interest that will absorb portions of an entity's expected losses or receive portions of the entity's expected residual returns. If the Company determines it has a variable interest in an entity, it evaluates whether such interest is in a Variable Interest Entity (“VIE”). A VIE is broadly defined as an entity where either: 1) The equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity's economic performance; 2) The equity investment at risk is insufficient to finance that entity's activities without additional subordinated financial support. The Company is required to consolidate any VIE when it is determined to be the primary beneficiary of the VIE's operations. A variable interest holder is considered to be the primary beneficiary of a VIE if it has both the power to direct the activities of a VIE that most significantly impact the entity's economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The Company’s assessment of whether it is the primary beneficiary of a VIE includes consideration of various factors such as: 1) The Company's ability to direct the activities that most significantly impact the entity's economic performance; 2) its form of ownership interest; 3) its representation on the entity's governing body; 4) the size and seniority of its investment, the maximum of which is four percent; 5) its ability and the rights of other investors to participate in policy making decisions and to replace the manager of and/or liquidate the entity. The Company is required to evaluate whether to consolidate a VIE both at inception and on an ongoing basis as changes in circumstances require reconsideration. The Company’s investments in qualified affordable housing projects, and small business investment companies meet the definition of a VIE as the entities are structured such that the limited partner investors lack substantive voting rights. The Company, as a limited partner, is liable only to make the payments due on its subscription and is not liable for the debts, liabilities, contracts or other obligations of the Partnership. The Company had $10.5 million in remaining capital commitments to these partnerships at December 31, 2023. The general partner or managing member has both the power to direct the activities that most significantly impact the economic performance of the entities and the obligation to absorb losses or the right to receive benefits that could be significant to the entities. Accordingly, as a limited partner, the Company is not the primary beneficiary and is not required to consolidate these entities. The Company accounts for its investment in limited partnerships which invest in small business investment companies under the cost method. Under this method, the investments are initially recorded at their historical cost. Dividends received from these investments is recorded in Other Income in the Income Statement. Management analyzes these investments annually for potential impairment. The Company holds certain equity investments that are not readily marketable securities and thus are classified as “other assets” on the Company’s balance sheet. These include investments in Pacific Coast Bankers Bancshares, California Economic Development Lending Initiative, and the Federal Home Loan Bank (“FHLB”). The largest of these is the Company’s $14.7 million investment in FHLB stock, carried at cost. Quarterly, the FHLB evaluates and adjusts the Company’s minimum stock requirement based on the Company’s borrowing activity and membership requirements. Any stock deemed in excess is automatically repurchased by the FHLB at cost. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
Deposits | 9. DEPOSITS Time deposits that meet or exceed the FDIC Insurance limit of $250,000 at year-ends 2023 and 2022 were $162.2 million and $97.8 million, respectively. Aggregate annual maturities of time deposits were as follows (dollars in thousands): Year Ending December 31, 2024 $ 568,685 2025 17,738 2026 35,897 2027 41,101 2028 25,678 Thereafter 1,008 Total $ 690,107 Interest expense recognized on interest-bearing deposits consisted of the following (dollars in thousands): Year Ended December 31, 2023 2022 2021 Interest bearing demand deposits $ 1,429 $ 485 $ 331 NOW 289 322 444 Savings 269 278 240 Money market 710 95 111 Time deposits 23,214 4,914 1,039 Brokered Deposits 5,643 725 225 Total $ 31,554 $ 6,819 $ 2,390 |
Other Borrowing Arrangements
Other Borrowing Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Other Borrowing Arrangements | 10. OTHER BORROWING ARRANGEMENTS At year end, short-term borrowings consisted of the following (dollars in thousands): 2023 Average balance outstanding Amount Average interest rate during the year Maximum month-end balance during the year Weighted average interest rate at year-end As of December 31: Repurchase agreements $ 90,294 $ 107,121 0.27% $ 107,121 0.27% Short term borrowings 225,437 280,500 5.34% 219,000 5.34% Total $ 315,731 $ 387,621 $ 326,121 2022 Average balance outstanding Amount Average interest rate during the year Maximum month-end balance during the year Weighted average interest rate at year-end As of December 31: Repurchase agreements $ 110,387 $ 109,169 0.29% $ 118,014 0.29% Short term borrowings 47,708 219,000 3.67% 219,000 3.67% Total $ 158,095 $ 328,169 $ 337,014 At year end, long-term advances from FHLB consisted of the following (dollars in thousands): 2023 2022 Amount Fixed rate Weighted average interest rate Amount Fixed rate Weighted average interest rate As of December 31: Federal Home Loan Bank advances, maturing 2026 $ 25,000 3.96% 3.96% $ — — — Federal Home Loan Bank advances, maturing 2028 15,000 3.78% 3.78% — Federal Home Loan Bank advances, maturing 2026 20,000 4.04% 4.04% — — — Federal Home Loan Bank advances, maturing 2028 20,000 3.81% 3.81% Total $ 80,000 $ — — Included in short term borrowings was $25.5 million outstanding in fixed-rate overnight FHLB advances and $125.0 million in fixed-rate short term FHLB advances at December 31, 2023. At December 31, 2022 there were $94.0 million outstanding in fixed-rate overnight FHLB advances and no fixed-rate short term FHLB advances. Each FHLB advance is payable at its maturity date, with a prepayment penalty for fixed rate advances. The advances were collateralized by $1.3 billion of first mortgage loans under a blanket lien arrangement at year end 2023. Based on this collateral and the Company’s holdings of FHLB stock, the Company was eligible to borrow up to the total of $930.1 million at year-end 2023, with a remaining borrowing capacity of $485.6 million if sufficient additional collateral was pledged. The Company had no borrowings at December 31, 2023 and 2022 from the FRB. The Company was eligible to borrow up to $392.0 million from FRB at year end 2023, which was collateralized by $204.4 million in first mortgage loans under a blanket lien arrangement. The Company had unsecured lines of credit with its correspondent banks which, in the aggregate, amounted to $382.0 million and $362.0 million at December 31, 2023 and 2022, respectively, at fixed interest rates which vary with market conditions. Included in short term borrowings above there was $130.0 million outstanding overnight under these lines of credit at December 31, 2023 and $125.0 million outstanding overnight at December 31, 2022. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 11. LONG-TERM DEBT At year-end, long-term debt was as follows (dollars in thousands): 2023 2022 Principal Unamortized Debt Issuance Costs Principal Unamortized Debt Issuance Costs Fixed - floating rate subordinated debentures, due 2031 (1) $ 50,000 $ 696 $ 50,000 $ 786 $ 50,000 $ 696 $ 50,000 $ 786 (1) 3.25% fixed rate for five years then floating rate at 253.5 bps over 3-month term SOFR . |
Subordinated Debentures
Subordinated Debentures | 12 Months Ended |
Dec. 31, 2023 | |
Subordinated Borrowings [Abstract] | |
Subordinated Debentures | 12. SUBORDINATED DEBENTURES Sierra Statutory Trust II (“Trust II”), Sierra Capital Trust III (“Trust III”), and Coast Bancorp Statutory Trust II (“Trust IV”), (collectively, the “Trusts”) exist solely for the purpose of issuing trust preferred securities fully and unconditionally guaranteed by the Company. For financial reporting purposes, the Trusts are not consolidated and the Floating Rate Junior Subordinated Deferrable Interest Debentures (the “Subordinated Debentures”) held by the Trusts and issued and guaranteed by the Company are reflected in the Company’s consolidated balance sheet in accordance with provisions of ASC Topic 810. Under applicable regulatory guidance, the amount of trust preferred securities that is eligible as Tier 1 capital is limited to twenty-five percent of the Company’s Tier 1 capital on a pro forma basis. At December 31, 2023, all $35.7 million of the Company’s trust preferred securities qualified as Tier 1 capital. During the first quarter of 2004, Sierra Statutory Trust II issued 15,000 Floating Rate Capital Trust Pass-Through Securities (TRUPS II), with a liquidation value of $1,000 per security, for gross proceeds of $15,000,000. The entire proceeds of the issuance were invested by Trust II in $15,464,000 of Subordinated Debentures issued by the Company, with identical maturity, re-pricing and payment terms as the TRUPS II. The Subordinated Debentures, purchased by Trust II, represent the sole assets of the Trust II. Those Subordinated Debentures mature on March 17, 2034, bear a current interest rate of 8.39% (based on 3-month CME Term SOFR plus tenor spread adjustment of 0.26161% plus 2.75%), with re-pricing and payments due quarterly. Those Subordinated Debentures are currently redeemable by the Company, subject to receipt by the Company of prior approval from the Federal Reserve Bank, on any March 17 th th th th The TRUPS II are subject to mandatory redemption to the extent of any early redemption of the related Subordinated Debentures and upon maturity of the Subordinated Debentures on March 17, 2034. Trust II has the option to defer payment of the distributions for a period of up to five years During the second quarter of 2006, Sierra Capital Trust III issued 15,000 Floating Rate Capital Trust Pass-Through Securities (TRUPS III), with a liquidation value of $1,000 per security, for gross proceeds of $15,000,000. The entire proceeds of the issuance were invested by Trust III in $15,464,000 of Subordinated Debentures issued by the Company, with identical maturity, repricing and payment terms as the TRUPS III. The Subordinated Debentures, purchased by Trust III, represent the sole assets of the Trust III. Those Subordinated Debentures mature on September 23, 2036, bear a current interest rate of 7.02% (based on 3-month CME Term SOFR plus tenor spread adjustment of 0.26261% plus 1.40%), with repricing and payments due quarterly. Those Subordinated Debentures are redeemable by the Company, subject to receipt by the Company of prior approval from the Federal Reserve Bank, on any March 23 rd rd rd rd Trust III has the option to defer payment of the distributions for a period of up to five years During the third quarter of 2016, the Company acquired Coast Bancorp Statutory Trust II, which had issued 7,000 Floating Rate Capital Trust Pass-Through Securities (TRUPS IV), with a liquidation value of $1,000 per security, for gross proceeds of $7,000,000. The entire proceeds of the issuance were invested by Trust IV in $7,217,000 of Subordinated Debentures issued by Coast Bancorp with identical maturity, re-pricing and payment terms as the TRUPS IV. The Subordinated Debentures, purchased by Trust IV, represent the sole assets of the Trust IV. Those Subordinated Debentures mature on December 15, 2037, bear a current interest rate of 7.15% (based on 3-month CME Term SOFR plus tenor spread adjustment of 0.26161% plus 1.50%), with re-pricing and payments due quarterly. Those Subordinated Debentures are currently redeemable by the Company, subject to receipt by the Company of prior approval from the Federal Reserve Bank, on any March 15 th th th th The TRUPS IV are subject to mandatory redemption to the extent of any early redemption of the related Subordinated Debentures and upon maturity of the Subordinated Debentures on December 15, 2037. Coast Bancorp Statutory Trust II has the option to defer payment of the distributions for a period of up to five years |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. INCOME TAXES The provision for income taxes follows (dollars in thousands): Year Ended December 31, 2023 2022 2021 Federal: Current $ 8,470 $ 6,071 $ 8,186 Deferred (1,531) 233 135 Total federal 6,939 6,304 8,321 State: Current 5,493 4,874 5,916 Deferred (812) 78 (50) Total state 4,681 4,952 5,866 Total tax provision $ 11,620 $ 11,256 $ 14,187 The components of the net deferred tax asset, included in other assets, are as follows (dollars in thousands): December 31, 2023 2022 Deferred tax assets: Allowance for credit losses on loans $ 6,947 $ 6,817 Deferred compensation 4,440 4,158 Accrued reserves 1,131 1,022 Non-accrual loans 76 241 Lease liability 6,488 2,147 Loan fair value adjustment 172 245 Net operating losses 1,178 1,370 State income tax deduction 1,176 1,005 Other 4,982 1,211 Unrealized losses on securities available-for-sale 15,101 23,746 Total deferred tax assets 41,691 41,962 Deferred tax liabilities: Deferred loan costs (1,304) (1,070) Right-of-use asset (7,604) (2,034) TRUPS accretion (735) (788) FMV equity securities (620) (706) Prepaids (791) (639) Other (689) (517) Intangibles (130) (337) Premises and equipment (1,136) (887) Total deferred tax liabilities (13,009) (6,978) Net deferred tax assets $ 28,682 $ 34,984 The Company believes that the deferred tax assets will be fully realized, therefore no valuation allowance has been recorded. The expense for income taxes differs from amounts computed by applying the statutory Federal income tax rates to income before income taxes. The significant items comprising these differences consisted of the following (dollars in thousands): Year Ended December 31, 2023 2022 2021 Income tax expense at federal statutory rate $ 9,758 $ 9,432 $ 12,012 Increase (decrease) resulting from: State franchise tax expense, net of federal tax effect 3,698 3,912 4,634 Tax exempt municipal income (2,291) (1,849) (1,306) Affordable housing tax credits 16 (530) (524) Excess tax benefit of stock-based compensation 22 (50) (109) Cash surrender value - life insurance (371) 209 (556) Other 788 132 36 Total $ 11,620 $ 11,256 $ 14,187 Effective tax rate 25.01% 25.06% 24.80% The Company is subject to federal income tax and income tax of various states. Our federal income tax returns for the years ended December 31, 2020, 2021 and 2022 2019, 2020, 2021 and 2022 At December 31, 2023, the Company has net federal net operating loss carry forwards of approximately $3.4 million which expire at various dates from 2031 to 2034. The Company also had California Franchise tax net operating loss carry forwards of approximately $5.4 million which expire at various dates from 2032 to 2036. Net operating loss carry forwards available from acquisitions are substantially limited by Section 382 of the Internal Revenue Code and benefits not expected to be realized due to the limitation have been excluded from the deferred tax asset and net operating loss carry forward amounts noted above. There were no recorded interest or penalties related to uncertain tax positions as part of income tax for the years ended December 31, 2023, 2022, and 2021, respectively. We do not expect the total amount of unrecognized tax benefits to significantly increase or decrease within the next twelve months. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. COMMITMENTS AND CONTINGENCIES Letter of Credit The Company holds two letters of credit with the Federal Home Loan Bank of San Francisco totaling $127.9 million. A $125.0 million letter of credit is pledged to secure public deposits at December 31, 2023 and a $2.9 million standby letter of credit was obtained on behalf of one of our customers to guarantee financial performance. Should the standby letter of credit be drawn upon, the customer would reimburse the Company from an existing line of credit. Federal Reserve Requirements Historically banks were required to maintain reserves with the Federal Reserve Bank equal to a specified percentage of their reservable deposits less vault cash. Effective March 26, 2020 the Federal Reserve Board reduced the reserve requirement to zero percent indefinitely. Financial Instruments with Off-Balance-Sheet Risk The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business. These financial instruments consist of commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheet. The Company’s exposure to credit loss in the event of nonperformance by the other party 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 letters of credit as it does for loans included on the balance sheet. The following financial instruments represent off-balance-sheet credit risk (dollars in thousands): December 31, 2023 2022 Fixed-rate commitments to extend credit $ 84,646 $ 94,248 Variable-rate commitments to extend credit $ 397,408 $ 795,269 Standby letters of credit $ 5,040 $ 6,036 Commitments to extend credit consist primarily of the unused or unfunded portions of the following: home equity lines of credit; commercial real estate construction loans, where disbursements are made over the course of construction; commercial revolving lines of credit; mortgage warehouse 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 of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Commitments to extend credit are made at both fixed and variable rates of interest as stated in the table above. Standby letters of credit are generally unsecured and are issued by the Company to guarantee the performance of a customer to a third party, while commercial letters of credit represent the Company’s commitment to pay a third party on behalf of a customer upon fulfillment of contractual requirements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. Concentration in Real Estate Lending At December 31, 2023, in management’s judgment the Company had a concentration of loans secured by real estate. At that date, approximately 87% of the Company’s loans were real estate related. Balances secured by commercial buildings and construction and development loans represented 74% of all real estate loans, while loans secured by non-construction residential properties accounted for 23%, and loans secured by farmland were 4% of real estate loans. Although management believes the loans within these concentrations have no more than the normal risk of collectability, a decline in the performance of the economy in general or a decline in real estate values in the Company’s primary market areas, in particular, could have an adverse impact on collectability. Concentration by Geographic Location The Company extends commercial, real estate mortgage, real estate construction and consumer loans to customers primarily in the South Central San Joaquin Valley of California, specifically Tulare, Fresno, Kern, Kings and Madera counties; and the Coastal counties of San Luis Obispo, Ventura and Santa Barbara. The ability of a substantial portion of the Company’s customers to honor their contracts is dependent on the economy in these areas. Although the Company’s loan portfolio is diversified, there is a relationship in those regions between the local agricultural economy and the economic performance of loans made to non-agricultural customers. Legal Matters In the ordinary course of our business, the Company is subject to legal proceedings and claims which we believe are incidental to the operation of our business. The outcome of such legal actions and the timing of ultimate resolution are inherently difficult to predict. Upon consultation with legal counsel and based on information currently available to us, management does not expect the amount of any resulting liability, in addition to amounts already accrued and taking into consideration insurance which may be applicable, to have a material adverse effect on the consolidated financial position or results of operations of the Company. Given the nature, scope and complexity of the extensive legal and regulatory landscape applicable to banking (including laws and regulations governing consumer protection, fair lending, privacy, information security and anti-money laundering and anti-terrorism laws), we like all banking organizations, are subject to heightened legal and regulatory compliance and litigation risk. The Company will establish litigation and legal reserves, where appropriate, in accordance with FASB guidance over loss contingencies (ASC 450). The outcome of litigation and other legal and regulatory matters is inherently uncertain, however, and it is possible that one or more of the legal or regulatory matters currently pending or threatened could have a material adverse effect on our liquidity, consolidated financial position, and/or results of operations. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | 15. SHAREHOLDERS’ EQUITY Share Repurchase Plan At December 31, 2023, the Company had a 2023 Share Repurchase Plan with an expiration date of October 31, 2024. This share repurchase plan replaced the 2022 Share Repurchase Plan which expired on October 31, 2023. During the year ended December 31, 2023, the Company repurchased 481,094 shares under the 2022 Share Repurchase Plan and no shares under the 2023 Share Repurchase Plan. The total number of shares available for repurchase at December 31, 2023 was 1,000,000. Repurchases are generally made in the open market at market prices. Earnings Per Share A reconciliation of the numerators and denominators of the basic and diluted earnings per share computations is as follows (dollars in thousands, except per share data): For the Years Ended December 31, 2023 2022 2021 Basic Earnings Per Share Net income (dollars in thousands) $ 34,844 $ 33,659 $ 43,012 Weighted average shares outstanding 14,706,141 14,955,756 15,241,957 Basic earnings per share $ 2.37 $ 2.25 $ 2.82 Diluted Earnings Per Share Net income (dollars in thousands) $ 34,844 $ 33,659 $ 43,012 Weighted average shares outstanding 14,706,141 14,955,756 15,241,957 Effect of dilutive equity awards 31,729 66,999 111,488 Weighted average shares outstanding 14,737,870 15,022,755 15,353,445 Diluted earnings per share $ 2.36 $ 2.24 $ 2.80 Stock options and unvested restricted stock awards for 298,986, 293,586, and 337,004 shares of common stock were not considered in computing diluted earnings per common share for 2023, 2022, and 2021, respectively, because they were antidilutive. Stock Options 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 59,800 shares that were granted under the 2007 Plan were still outstanding as of December 31, 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 December 31, 2023 was 292,581. All options granted under the 2023, 2017 A summary of the Company’s stock option activity follows (shares in thousands, except exercise price): 2023 2022 2021 Shares Weighted Average Exercise Price Aggregate Intrinsic Value (1) Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding, Beginning of year 352 $ 25.06 416 $ 24.15 495 $ 23.67 Exercised or released — $ — (30) $ 10.59 (33) $ 14.64 Granted — $ — — $ — — $ — Canceled (9) $ 26.56 (32) $ 27.32 (45) $ 26.36 Expired — $ — (2) $ 10.21 (1) $ 10.58 Outstanding, end of year 343 $ 25.02 $ 447 352 $ 25.06 416 $ 24.15 Exercisable, end of year (2) 343 $ 25.02 $ 447 311 $ 24.78 355 $ 23.62 (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 December 31, 2023. This amount changes based on changes in the market value of the Company’s stock. (2) The weighted average remaining contractual life of stock options outstanding and exercisable on December 31, 2023 was 5.2 years and 5.0 years, respectively. Information related to stock options during each year follows (dollars in thousands, except per share data): 2023 2022 2021 Weighted-average grant-date fair value per share $ — $ — $ — Total intrinsic value of stock options exercised $ — $ 329 $ 346 Total fair value of stock options vested $ — $ 103 $ 418 No shares were exercised during the year ended December 31, 2023. $0.3 million in cash was received from the exercise of 29,640 shares during the year ended December 31, 2022, with a related tax benefit of $0.1 million. $0.3 million in cash was received from the exercise of 25,452 shares during the period ended December 31, 2021, with a related tax benefit of $0.1 million. The Company is using the Black-Scholes model to value stock options. In accordance with U.S. GAAP, charges of $0.1 million, $0.1 million, and $0.1 million are reflected in the Company’s income statements for the years ended December 31, 2023, 2022, and 2021, respectively, as pre-tax compensation and directors’ expense related to stock options. The related tax benefit of these options is $0.02 million for the year ended December 31, 2023 and $.03 million for the years ended December 31, 2022 and December 31, 2021. Unamortized compensation expense associated with unvested stock options outstanding at December 31, 2023 was $0.1 million, which will be recognized over a weighted average period of 1.0 years. Restricted Stock Grants The Company’s restricted stock awards granted under the 2017 Plan and 2023 Plan 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; 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. During the year ending 2023, 129,904 shares were granted to employees and directors of the Company (29,064 under the 2017 Plan and 100,840 under the 2023 Plan). These awards are expensed on a straight-line basis over the vesting period. Compensation expense related to restricted stock units for the years ended December 31, 2023, 2022 and 2021 was $1.7 million, $1.2 million, and $0.9 million respectively, and the recognized income tax benefit related to this expense was $0.4 million, $0.4 million, and $0.3 million, respectively. As of December 31, 2023, there was $3.3 million of unamortized compensation and directors’ cost related to unvested restricted stock awards granted under the 2023 and 2017 plans. That cost is expected to be amortized over a weighted average period of 2.3 years. The total fair value of shares vested during the year ended December 31, 2023, 2022 and 2021 was $1.2 million, $1.3 million and $0.7 million, respectively. A summary of the Company’s nonvested shares for the year follows (shares in thousands, except grant date fair value): Nonvested Shares Shares Weighted Average Grant-Date Fair Value Nonvested at January 1, 2023 187 $ 21.42 Granted 118 19.51 Vested (61) 21.46 Forfeited (6) 23.02 Nonvested at December 31, 2023 238 $ 20.30 |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2023 | |
Banking And Thrift [Abstract] | |
Regulatory Matters | 16. REGULATORY MATTERS The Company and the Bank are subject to regulatory capital requirements administered by the Board of Governors of the Federal Reserve System and the FDIC. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes as of December 31, 2023, the Company and Bank meet all capital adequacy requirements to which they are subject. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized , significantly undercapitalized , and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At year-end December 31, 2023 and 2022, notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank's categorization. In 2019, the federal banking agencies jointly issued a final rule that provides for an optional, simplified measure of capital adequacy, the community bank leverage ratio framework (CBLR framework), for qualifying community banking organizations, consistent with Section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act. The final rule became effective on January 1, 2020 and was elected by the Bank at that time. The community bank leverage ratio removes the requirement for qualifying banking organizations to calculate and report risk-based capital but rather only requires a Tier 1 to average assets (leverage) ratio. Qualifying banking organizations that elect to use the community bank leverage ratio framework and that maintain a leverage ratio of greater than required minimums will be considered to have satisfied the generally applicable risk based and leverage capital requirements in the agencies' capital rules (generally applicable rule) and, if applicable, will be considered to have met the well capitalized ratio requirements for purposes of section 38 of the Federal Deposit Insurance Act. Under the interim final rules the community bank leverage ratio minimum requirement is 8% as of December 31, 2020, 8.5% for calendar year 2021, and 9% for calendar year 2022 and beyond. The interim rule allows for a two-quarter grace period to correct a ratio that falls below the required amount, provided that the bank maintains a leverage ratio of 7% as of December 31, 2020, 7.5% for calendar year 2021, and 8% for calendar year 2022 and beyond. Under the final rule, an eligible banking organization can opt out of the CBLR framework and revert back to the risk-weighting framework without restriction. As of December 31, 2023, both the Company and Bank were qualifying community banking organizations as defined by the federal banking agencies and elected to measure capital adequacy under the CBLR framework. Actual and required capital amounts (dollars in thousands) and ratios are presented below at year end. Actual To Be Well Capitalized Under Prompt Corrective Action Regulations (CBLR Framework) 2023 Capital Amount Ratio Capital Amount Ratio Tier 1 (Core) Capital to average total assets Sierra Bancorp and subsidiary $ 384,936 10.32% $ 335,700 9.00% Bank of the Sierra $ 421,041 11.29% $ 335,639 9.00% Actual To Be Well Capitalized Under Prompt Corrective Action Regulations 2022 Capital Amount Ratio Capital Amount Ratio Tier 1 (Core) Capital to average total assets Sierra Bancorp and subsidiary $ 371,980 10.30% $ 325,031 9.00% Bank of the Sierra $ 396,856 10.99% $ 324,996 9.00% Dividend Restrictions The Company’s ability to pay cash dividends is dependent on dividends paid to it by the Bank, and is also limited by state corporation law. California law allows a California corporation to pay dividends if the company’s retained earnings equal at least the amount of the proposed dividend plus any preferred dividend arrears amount. If a California corporation does not have sufficient retained earnings available for the proposed dividend, it may still pay a dividend to its shareholders if immediately after the dividend the value of the company’s assets would equal or exceed the sum of its total liabilities plus any preferred dividend arrears amount. Dividends from the Bank to the Company are restricted under California law to the lesser of the Bank’s retained earnings or the Bank’s net income for the latest three fiscal years, less dividends previously declared during that period, or, with the approval of the Department of Financial Protection and Innovation, to the greater of the retained earnings of the Bank, the net income of the Bank for its last fiscal year, or the net income of the Bank for its current fiscal year. As of December 31, 2023, the maximum amount available for dividend distribution under this restriction was approximately $75.5 million. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Compensation And Retirement Disclosure [Abstract] | |
Benefit Plans | 17. BENEFIT PLANS Salary Continuation Agreements, Directors’ Retirement and Officer Supplemental Life Insurance Plans The Company has entered into salary continuation agreements with its executive officers, and has established retirement plans for qualifying members of the Board of Directors. The plans provide for annual benefits for up to fifteen years after retirement or death. The benefit obligation under these plans totaled $4.7 million and $4.9 million for the years ended December 31, 2023 and 2022 and was fully accrued for both years. The expense recognized under these arrangements totaled $0.3 million, $0.3 million and $0.4 million for the years ended December 31, 2023, 2022 and 2021, respectively. Salary continuation benefits paid to former directors or executives of the Company or their beneficiaries totaled $0.5 million, $0.4 million and $0.4 million for the years ended December 31, 2023, 2022 and 2021. Certain officers of the Company have supplemental life insurance policies with death benefits available to the officers’ beneficiaries. In connection with these plans the Company has purchased, or acquired through merger, single premium life insurance policies with cash surrender values totaling $41.7 million and $43.2 million at December 31, 2023 and 2022. Officer and Director Deferred Compensation Plan The Company has established a non-qualified deferred compensation plan for certain members of the management group and a deferred fee plan for directors for the purpose of providing the opportunity for participants to defer compensation. The Company bears the costs and the liability for the plan’s administration and the changes to income earned on participant deferrals. The related administrative expense was not material for the years ended December 31, 2023, 2022 and 2021. Although there is no requirement to fund this plan, the Company has purchased life insurance policies with cash surrender values totaling $10.0 million and $9.0 million at December 31, 2023 and 2022, respectively, which are specific account policies with underlying investments similar to the hypothetical investments elected inside the participant deferred compensation accounts. 401(k) Savings Plan The 401(k) savings plan (the “Plan”) allows participants to defer, on a pre-tax basis, up to 15% of their salary (subject to Internal Revenue Service limitations) and accumulate tax-deferred earnings as a retirement fund. The Bank may make a discretionary contribution to match a specified percentage of the first 6% of the participants’ contributions annually. The amount of the matching contribution was 80%, 80% and 95% for the years ended December 31, 2023, 2022 and 2021, respectively. The matching contribution is discretionary, vests over a period of five years from the participants’ hire date, and is subject to the approval of the Board of Directors. The Company contributed $1.2 million to the Plan in each of the years ended 2022 and 2021 and contributed $1.3 million to the Plan in 2023. Starting in 2024, the Company has adopted a safe-harbor plan and will match 100% of the first 1% and 50% of the next 5% of employee contributions each pay period. |
Noninterest Income
Noninterest Income | 12 Months Ended |
Dec. 31, 2023 | |
Non-Interest Revenue [Abstract] | |
Non-interest Income | 18. NONINTEREST INCOME The major grouping of noninterest revenue on the consolidated income statements includes several specific items: service charges on deposit accounts, gains on the sale of loans, credit card fees, check card fees, the net gain (loss) on sales and calls of investment securities available for sale, and the net increase (decrease) in the cash surrender value of life insurance. Noninterest income also includes one general category of “other income” of which the following are major components (dollars in thousands): Year Ended December 31, 2023 2022 2021 Included in other income: Amortization of limited partnerships $ — $ 253 $ (524) Dividends on equity investments 1,076 843 737 Unrealized gains recognized on equity investments (291) (332) 857 Other 3,579 6,423 1,864 Total other noninterest income $ 4,364 $ 7,187 $ 2,934 |
Other Noninterest Expense
Other Noninterest Expense | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other Non-interest Expense | 19. OTHER NONINTEREST EXPENSE Other noninterest expense consisted of the following (dollars in thousands): Year Ended December 31, 2023 2022 2021 Legal, audit, professional, and director's fees $ 5,293 $ 3,061 $ 7,652 Data processing 5,831 6,202 5,890 Advertising and promotional 2,215 1,728 1,521 Deposit services 8,775 9,492 9,049 Stationery and supplies 531 486 345 Telephone and data communication 1,452 1,563 2,013 Loan and credit card processing 597 550 501 Foreclosed assets expense (income), net 665 84 72 Postage 219 373 308 Other 4,003 3,415 2,780 Assessments 1,942 1,078 1,157 Total other noninterest expense $ 31,523 $ 28,032 $ 31,288 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 20. RELATED PARTY TRANSACTIONS During the normal course of business, the Bank may enter into loans with related parties, including executive officers and directors. These loans are made with substantially the same terms, including rates and collateral, as loans to unrelated parties. The following is a summary of the aggregate activity involving related party borrowers (dollars in thousands): Year Ended December 31, 2023 2022 2021 Balance, beginning of year $ — $ 1,067 $ 1,794 Disbursements — 4,059 1,983 Amounts repaid — (5,150) (2,548) Effect of changes in composition of related parties — 24 (162) Balance, end of year $ — $ — $ 1,067 Undisbursed commitments to related parties $ 6 $ 6 $ 2,156 Deposits from related parties held by the Bank at December 31, 2023 and 2022 amounted to $4.2 million and $8.1 million, respectively. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 21. FAIR VALUE Fair value is defined by U.S. GAAP 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. U.S. GAAP also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: ● 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 use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate fair values for each category of financial asset noted below: Securities Collateral-dependent loans Foreclosed assets Assets and liabilities measured at fair value on a recurring basis are summarized below (dollars in thousands): Fair Value Measurements at December 31, 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) Securities: U.S. government agencies $ — $ 102,749 $ — $ 102,749 $ — Mortgage-backed securities — 99,544 — 99,544 — State and political subdivisions — 194,206 — 194,206 — Corporate bonds — — 52,040 52,040 — Collateralized loan obligations — 570,662 — 570,662 — Total available-for-sale securities $ — $ 967,161 $ 52,040 $ 1,019,201 $ — 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) 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 $ — The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2023 and 2022 (dollars in thousands): 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 — — (5,395) — Purchases — — — 29,905 Transfers out of Level 3 — (195,707) — — Balance of recurring Level 3 assets at December 31, $ — $ — $ 52,040 $ 57,435 The following table present quantitative information about recurring level 3 fair value measurements at December 31, 2023 (dollars in thousands): Range Fair Value Valuation Technique(s) Unobservable Input(s) Min Max Weighted Average Corporate Bonds $ 52,040 New issue pricing Risk appetite N/A N/A N/A Secondary market pricing Market volatility Credit quality of issuer Credit spread The following table presents quantitative information about recurring level 3 fair value measurements at December 31, 2022 (dollars in thousands): Range Fair Value Valuation Technique(s) Unobservable Input(s) Min Max Weighted Average Corporate Bonds $ 57,435 New issue pricing Risk appetite N/A N/A N/A Secondary market pricing Market volatility Credit quality of issuer Credit spread Assets and liabilities measured at fair market value on a non-recurring basis are summarized below (dollars in thousands): Year Ended December 31, 2023 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Collateral dependent loans $ — $ 5,889 $ — $ 5,889 Year Ended December 31, 2022 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Collateral dependent impaired loans $ — $ 18,141 $ — $ 18,141 There were no assets measured at fair value on a non-recurring basis with level 3 fair value measurements at December 31, 2022. |
Disclosures about Fair Value of
Disclosures about Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Investments All Other Investments [Abstract] | |
Disclosures about Fair Value of Financial Instruments | 22. DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS Disclosures include estimated fair values for financial instruments for which it is practicable to estimate fair value. These estimates are made as of the respective balance sheet dates based on relevant market data and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time, nor do they attempt to estimate the value of anticipated future business related to the instruments. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of these estimates. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the fair values presented. The following methods and assumptions were used by the Company to estimate the fair value of its financial instruments at December 31, 2023 and 2022: Cash and cash equivalents, and fed funds sold Securities Loans Mortgage loans Collateral-dependent loans Deposits Short-term borrowings: Long-term borrowings: Subordinated debentures Carrying amount and estimated fair values of financial instruments not carried at fair value were as follows (dollars in thousands): December 31, 2023 Estimated Fair Value 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 $ 78,602 $ 78,602 $ — $ — $ 78,602 Securities held-to-maturity 320,057 — 314,924 — 314,924 Loans held for investment 2,066,884 — 5,889 1,918,654 1,924,543 Financial Liabilities: Time deposits $ 690,107 $ — $ 688,222 $ — $ 688,222 Repurchase agreements 107,121 — 107,121 — 107,121 Other borrowings 360,500 — 360,500 — 360,500 Long-term borrowings 49,304 — 44,097 — 44,097 Subordinated debentures 35,660 — 35,423 — 35,423 Notional Amount Off-balance-sheet financial instruments: Commitments to extend credit $ 482,054 Standby letters of credit 5,040 December 31, 2022 Estimated Fair Value 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 Securities held-to-maturity 336,881 — 328,011 — 328,011 Loans held for investment 2,029,757 — 18,141 1,909,822 1,927,963 Financial Liabilities: Time deposits $ 519,608 $ — $ 517,967 $ — $ 517,967 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 Notional Amount Off-balance-sheet financial instruments: Commitments to extend credit $ 889,517 Standby letters of credit 6,036 |
Qualified Affordable Housing Pr
Qualified Affordable Housing Project Investments | 12 Months Ended |
Dec. 31, 2023 | |
Investments in Affordable Housing Projects [Abstract] | |
Qualified Affordable Housing Project Investments | 23. QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS T During the years ended December 31, 2023, 2021 and 2021, the Company recognized amortization expense on these investments of $0.7 million, $0.5 million, and $0.5 million, respectively which was included within the tax provision using the proportional amortization method on the consolidated statements of income. Additionally, during the year ended December 31, 2023, the Company recognized $0.6 million in tax credits and other benefits from its investment in affordable housing tax credits and $0.5 million for each of the years ended December 31, 2022 and 2021. The Company had no impairment losses during the years ended December 31, 2023, 2022 and 2021. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 24. REVENUE FROM CONTRACTS WITH CUSTOMERS All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within Noninterest Income. The following table presents the Company’s sources of Noninterest Income for the twelve months ended December 31, 2023 and 2022. Items outside the scope of ASC 606 are noted as such (dollars in thousands). Year Ended December 31, 2023 2022 2021 Noninterest income Service charges on deposits Returned item and overdraft fees $ 5,261 $ 5,227 $ 4,924 Other service charges on deposits 9,790 7,308 6,922 Debit card interchange income 8,052 8,533 8,485 Gain (loss) on limited partnerships (1) — 253 (524) Dividends on equity investments (1) 1,076 843 737 Unrealized (losses) gains recognized on equity investments (1) (291) (332) 857 Net gains on sale of securities (1) 396 1,487 11 Other (1) 6,116 7,451 6,667 Total noninterest income $ 30,400 $ 30,770 $ 28,079 (1) Not within the scope of ASC 606. Revenue streams are not related to contracts with customers and are accounted for on an accrual basis under other provisions of GAAP. |
Parent Only Condensed Financial
Parent Only Condensed Financial Statements | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Only Condensed Financial Statements | 25. PARENT ONLY CONDENSED FINANCIAL STATEMENTS BALANCE SHEETS Years Ended December 31, 2023 and 2022 (dollars in thousands) 2023 2022 ASSETS Cash and due from banks $ 10,437 $ 26,099 Investments in bank subsidiary 409,862 363,507 Investment in trust subsidiaries 1,145 1,145 Other assets 4,410 4,162 Total assets $ 425,854 $ 394,913 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Other liabilities $ 2,793 $ 6,636 Long-term debt 49,304 49,214 Subordinated debentures 35,660 35,481 Total liabilities 87,757 91,331 Shareholders' equity: Common stock 115,027 117,076 Retained earnings 259,050 243,082 Accumulated other comprehensive gain, net of taxes (35,980) (56,576) Total shareholders' equity 338,097 303,582 Total liabilities and shareholders' equity $ 425,854 $ 394,913 STATEMENTS OF INCOME Years Ended December 31, 2023, 2022 and 2021 (dollars in thousands) 2023 2022 2021 Income: Dividend from subsidiary $ 16,800 $ 28,000 $ 3,200 Other operating income — — — Total income 16,800 28,000 3,200 Expense Salaries and employee benefits 1,741 1,129 779 Other expenses 6,117 4,550 2,728 Total expenses 7,858 5,679 3,507 Income before income taxes 8,942 22,321 (307) Income tax benefit (2,323) (1,679) (1,037) Income before equity in undistributed income of subsidiary 11,265 24,000 730 Equity in undistributed income of subsidiary 23,579 9,659 42,282 Net income $ 34,844 $ 33,659 $ 43,012 STATEMENTS OF CASH FLOWS Years Ended December 31, 2023, 2022 and 2021 (dollars in thousands) 2023 2022 2021 Cash flows from operating activities: Net income $ 34,844 $ 33,659 $ 43,012 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed net income of subsidiary (23,579) (9,659) (42,282) Gain on sale of securities — — — (Increase) decrease in other assets 1,863 (3,459) 179 Increase (decrease) in other liabilities (6,117) 4,212 1,263 Net cash provided by operating activities 7,011 24,753 2,172 Cash flows from investing activities: Investment in subsidiary — — (25,000) Net cash used by investing activities — — (25,000) Cash flows from financing activities: Stock options exercised — 314 282 Repurchase of common stock (8,959) (5,192) (5,220) Dividends paid (13,714) (13,919) (13,232) Issuance of debentures, net — — 49,141 Net cash (used) in provided by financing activities (22,673) (18,797) 30,971 Net increase in cash and cash equivalents (15,662) 5,956 8,143 Cash and cash equivalents, beginning of year 26,099 20,143 12,000 Cash and cash equivalents, end of year $ 10,437 $ 26,099 $ 20,143 |
Condensed Quarterly Results of
Condensed Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Condensed Quarterly Results of Operations | 26. CONDENSED QUARTERLY RESULTS OF OPERATIONS The following table sets forth the Company’s unaudited results of operations for the four quarters of 2022 and 2021. In management’s opinion, the results of operations reflect all adjustments (which include only recurring adjustments) necessary to present fairly the condensed results for such periods (dollars in thousands, except per share data). c 2023 Quarter Ended December 31, September 30, June 30, March 31, Interest income $ 42,444 $ 42,384 $ 40,875 $ 37,419 Interest expense 14,574 14,297 12,558 9,287 Net interest income 27,870 28,087 28,317 28,132 Provision (benefit) for credit losses 3,525 (33) (70) 260 Noninterest income 8,045 7,762 8,013 6,579 Noninterest expense 24,136 22,562 22,968 22,992 Net income before taxes 8,254 13,320 13,432 11,459 Provision for taxes 1,964 3,435 3,513 2,709 Net income $ 6,290 $ 9,885 $ 9,919 $ 8,750 Diluted earnings per share $ 0.43 $ 0.68 $ 0.67 $ 0.58 Cash dividend per share $ 0.23 $ 0.23 $ 0.23 $ 0.23 2022 Quarter Ended December 31, September 30, June 30, March 31, Interest income $ 35,603 $ 31,929 $ 28,206 $ 26,081 Interest expense 6,240 3,017 1,621 1,325 Net interest income 29,363 28,912 26,585 24,756 Provision for credit losses 6,483 1,259 2,419 600 Noninterest income 7,656 6,612 10,539 6,063 Noninterest expense 21,522 20,996 22,213 20,079 Net income before taxes 9,014 13,269 12,492 10,140 Provision for taxes 1,901 3,334 3,288 2,733 Net income $ 7,113 $ 9,935 $ 9,204 $ 7,407 Diluted earnings per share $ 0.47 $ 0.66 $ 0.62 $ 0.49 Cash dividend per share $ 0.23 $ 0.23 $ 0.23 $ 0.23 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 27. SUBSEQUENT EVENTS Subsequent to year end, $196.7 million of bonds were sold. The bonds had a weighted average book yield of 2.61%. The proceeds from the bond sale were used to pay down short-term borrowings at an average rate of 5.52%. The loss on this transaction of $14.5 million was recognized in 2023 as management had the intent to sell such bonds at December 31, 2023. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Consolidation and Basis of Presentation | Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company and the consolidated accounts of its wholly owned subsidiary, Bank of the Sierra. All significant intercompany balances and transactions have been eliminated. Certain reclassifications have been made to prior years’ balances to conform to classifications used in 2023. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (U.S. GAAP) and prevailing practices within the banking industry. In accordance with U.S. GAAP, the Company’s investments in Sierra Statutory Trust II, Sierra Capital Trust III and Coast Bancorp Statutory Trust II are not consolidated and are accounted for under the equity method and included in other assets on the consolidated balance sheet. The subordinated debentures issued and guaranteed by the Company and held by the trusts are reflected on the Company’s consolidated balance sheet. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. Material estimates that are particularly susceptible to significant changes in the near-term relate to the determination of the allowance for credit losses, income taxes and deferred tax assets and liabilities, and goodwill. In connection with the determination of the allowances for credit losses and other real estate, management obtains independent appraisals for significant properties, evaluates the overall loan portfolio characteristics and delinquencies, and monitors economic conditions. |
Reclassifications | Reclassifications Certain amounts in the Consolidated Income Statements for the prior periods have been reclassified to conform to the current presentation. The reclassifications had no effect on net income or stockholders’ equity as previously reported. |
Cash Flows | Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash and deposits with other financial institutions with original maturities within 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions, and fed funds purchased and repurchase agreements. |
Securities | Securities Debt securities may be classified as held to maturity and carried at amortized cost when management has the positive ability and intent to hold them to maturity. Debt securities are classified as available for sale when they might be sold before maturity. Equity securities with readily determinable fair values are classified as available for sale. Debt securities classified as available for sale are carried at fair value with unrealized holding gains and losses reported in other comprehensive income, net of tax. Securities designated as held-to-maturity, are carried at the amortized cost basis of the securities in question, which includes purchase premium or discount in addition to any unamortized premium or discount representing the unrealized gain or loss on any individual security at the time it was transferred from the available for sale designation. Notably, the Company has elected the practical expedient under GAAP to exclude accrued interest from the amortized-cost-basis of held-to-maturity securities and does not evaluate accrued interest receivable for an allowance for credit losses because any past due interest receivable on its held-to-maturity portfolio is reversed from income timely. Accrued interest on held-to-maturity securities and available-for-sale other assets Interest income includes amortization of purchase premium or discount. Premiums or discounts on securities are amortized on the level-yield method without anticipating prepayments. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management determines the appropriate classification of its investments at the time of purchase and may only change the classification in certain limited circumstances. All transfers between categories are accounted for at fair value. 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. At December 31, 2023, the Company had no recorded Allowance for Credit Losses on its securities designated as available-for-sale. Under CECL, held-to-maturity debt securities are evaluated for reserves in the same manner as loans. On April 1, 2022, the Company transferred $162.1 million of Agency, Mortgaged-Backed and Municipal securities from available-for-sale to held-to maturity. 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 $28.4 million, on securities transferred from the available-for-sale to held-to-maturity categorization, remains as of December 31, 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 and no allowance for credit losses has been established for 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. As of December 31, 2023, an allowance for credit losses of $0.02 million had been established on the Bank’s held-to-maturity portfolio, a slight decrease from the allowance for credit losses of $0.06 million at December 31, 2022. |
FHLB Stock and Other Investments | FHLB Stock and Other Investments The Bank is a member of the Federal Home Loan Bank ("FHLB") system. Members are required to own a certain amount of stock based on the level of borrowings and other factors and may invest in additional amounts. FHLB stock is carried at cost in other assets, and periodically evaluated for impairment based on the ultimate recovery of par value. Both cash and stock dividends are reported as income. The Bank’s investment in FHLB stock was approximately $14.7 million at December 31, 2023, and $12.7 million at December 31, 2022. |
Loans and Leases (Financing Receivables) | Loans (Financing Receivables) Our credit quality classifications of Loans include Pass, Special Mention and Substandard. These classifications are defined in Note 4 to the consolidated financial statements. Loans are reported on the amortized cost basis. The amortized cost basis of the Company’s loans is comprised of the principal balance outstanding, net of remaining deferred loan fees and costs, purchase premiums and discounts, and also net of any write-downs. Notably, 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 the Company’s Loans continues to be included in other assets on the Company’s balance sheet and as of December 31, 2023, measured $5.6 million. Loan origination fees, net of certain deferred origination costs, and purchase premiums and discounts are recognized in interest income as an adjustment to yield of the related loans over the contractual life of the loan using both the effective interest and straight-line methods without anticipating prepayments. Interest income for all performing loans, regardless of classification (Pass, Special Mention, Substandard), is recognized on an accrual basis, with interest accrued daily. Costs associated with successful loan originations are netted from loan origination fees, with the net amount (net deferred loan fees) amortized over the contractual life of the loan in interest income. If a loan has scheduled periodic payments, the amortization of the net deferred loan fee is calculated using the effective interest method over the contractual life of the loan. If the loan does not have scheduled payments, such as a line of credit, the net deferred loan fee is recognized as interest income on a straight-line basis over the contractual life of the loan. Fees received for loan commitments are recognized as interest income over the term of the commitment. When loans are repaid, any remaining unamortized balances of deferred fees and costs are accounted for through interest income. Generally, the Company places a loan or lease on nonaccrual status and ceases recognizing interest income when it has become delinquent more than 90 days and/or when Management determines that the repayment of principal and collection of interest is unlikely. 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 non-accrual. Once a loan is on non-accrual 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. Due to loans being placed on nonaccrual status, $0.4 million of interest receivable on loans was reversed from interest income for the year ended December 31, 2023. |
Allowance for Credit Losses - Loans and Leases | Allowance for Credit Losses - Loans The Allowance for Credit Losses (“ACL”) on the loan portfolio is a valuation allowance deducted from the recorded balance in loans. 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 ACL for loans is separated between a collective reserve evaluation, for loans where similar risk characteristics exist and an individual reserve evaluation for loans without similar risk characteristics. The collective evaluation of loans is performed at the portfolio segment level, using call code as the primary segmentation key but also considering similarity in quantitative reserve methodology. The Company’s ACL is categorized according to the following portfolio segments: 1-4 Family Real Estate, Commercial Real Estate, Farmland & Agricultural Production, Commercial & Industrial, Mortgage Warehouse, and Consumer. Loans secured by 1-4 family residences have a different profile from loans secured by Commercial Real Estate. Generally, the borrowers for 1-4 Family 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 utilizes a discounted cash flow methodology to estimate the quantitative portion of collectively evaluated reserves for the 1-4 Family Real Estate, Commercial Real Estate, Commercial & Industrial and Mortgage Warehouse portfolio segments. Management utilizes a Remaining Life Quantitative Reserve Methodology for the Farmland & Agricultural Production, and Consumer portfolio segments. Within the portfolio segments utilizing the DCF quantitative reserve methodology, management has made the election to adjust the effective interest rate to consider the impact of expected prepayments. Loans where similar risk characteristics exist are evaluated for the ACL in the collective reserve evaluation. The Company’s policy is that loans designated as nonaccrual no longer share risk characteristics similar to other loans evaluated collectively and as such, all nonaccrual loans are individually evaluated for reserves. As of December 31, 2023, the Bank’s nonaccrual loans comprised the entire population of loans individually evaluated. The Company’s policy is that nonaccrual loans also represent the subset of loans where borrowers are experiencing financial difficulty where an evaluation of the source of repayment is required to determine if the nonaccrual loan should be categorized as collateral dependent. It is the Company’s policy that the only loans where the credit quality has deteriorated to the point where foreclosure is probable are the Company’s nonaccrual loans. Most of the Company’s business activity is with customers located in California within the Southern Central San Joaquin Valley; in the corridor stretching between Santa Paula and Santa Clarita in Southern California, and on the Central Coast. Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy in those regions. The Company considers this concentration of credit risk when assessing and assigning qualitative factors in the allowance for credit. Though management believes the allowance for credit losses to be adequate, ultimate losses may vary from their estimates. However, estimates are reviewed periodically, and as adjustments become necessary, they are reported in earnings during the periods they become known. In addition, the FDIC and the California Department of Financial Protection and Innovation, as an integral part of their examination processes, review the allowance for credit losses. These agencies may require additions to the allowance for credit losses based on their judgment about information available at the time of their examinations. |
Allowance for Credit Losses - Off-Balance Sheet Commitments | Allowance for Credit Losses - Off-Balance Sheet Commitments In addition to the exposure to credit loss from outstanding loans, the Company is also exposed to credit loss from certain off-balance sheet commitments such as unused commitments from revolving lines of credit, certain mortgage warehouse lines of credit, construction loans and commercial and standby letters of credit. Because the available funds have not yet been disbursed on these commitments the estimated losses are not included in the calculation of the allowance for credit losses on the loan portfolio. The implementation of CECL also impacted the Company’s ACL on unfunded loan commitments, as this ACL now represents expected credit losses over the contractual life of commitments not identified as unconditionally cancellable by the Company. The Reserve for 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. Under CECL the ACL on unfunded loan commitments remains in Other Liabilities while any related provision expense has been moved to provision for credit loss expense from its prior presentation in noninterest expense. Prior period expense have not been reclassified for comparative purposes. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The useful lives of premises range between twenty-five three Impairment of long-lived assets is evaluated by management based upon an event or changes in circumstances surrounding the underlying assets which indicate long-lived assets may be impaired. |
Leases | Leases Leases are classified as operating or finance leases at the lease commencement date. The Company leases certain locations classified as operating leases. The Company records leases on the balance sheet in the form of a lease liability for the present value of future minimum payments under the lease terms and a right-of-use asset equal to the lease liability adjusted for items such as deferred or prepaid rent, lease incentives, and any impairment of the right-of-use asset. The discount rate used in determining the lease liability is based upon incremental borrowing rates the Company could obtain for similar loans as of the date of commencement or renewal. The Company does not record short term leases with an initial lease term of one year or less on the consolidated balance sheets. At lease inception, the Company determines the lease term by considering the noncancelable lease term and all optional renewal periods that the Company is reasonably certain to renew. The lease term is also used to calculate straight-line lease expense. Leasehold improvements are amortized over the shorter of the useful life and the estimated lease term. The Company’s leases do not contain residual value guarantees or material variable lease payments that will impact the Company's ability to pay dividends or cause the Company to incur additional expenses. Operating lease expense consists of a single lease cost allocated over the remaining lease term on a straight-line basis and variable lease expense. Lease expense is included in occupancy and equipment expense on the Company's consolidated statements of income. The Company's variable lease expense includes rent escalators that are based on market conditions and include items such as common area maintenance, utilities, parking, property taxes, insurance and other costs associated with the lease. The amortization of the right-of-use asset arising from finance leases is expensed through occupancy and equipment expense. |
Foreclosed Assets | Foreclosed Assets Foreclosed assets include real estate and other property acquired in full or partial settlement of loan obligations. Upon acquisition, any excess of the recorded investment in the loan balance over the appraised fair market value, net of estimated selling costs, is charged against the allowance for credit losses on loans. A valuation allowance for losses on foreclosed assets is maintained to provide for subsequent declines in value. The allowance is established through a provision for losses on foreclosed assets which is included in other noninterest expense. Subsequent gains or losses on sales or write-downs resulting from permanent impairments are recorded in other noninterest expense as incurred. Operating costs after acquisition are expensed. The Company had no foreclosed residential real estate properties recorded at December 31, 2023. At December 31, 2023, there were no consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceeds were in process. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company acquired Sierra National Bank in 2000, Santa Clara Valley Bank in 2014, Coast National Bank in 2016, and Ojai Community Bank and the Woodlake Branch of Citizen’s Business Bank in 2017. Goodwill resulting from business combinations after January 1, 2009, is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized but are tested for impairment at least annually or more frequently if events and circumstances exist which indicate that an impairment test should be performed. The Company selected October 1, 2023, as the date to perform the annual impairment test for 2023. Goodwill is the only intangible asset with an indefinite life on our balance sheet. There was no impairment recognized for the years ended December 31, 2023, 2022, and 2021. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. The Company’s other intangible assets consist solely of core deposit intangible assets (CDI’s) arising from the acquisitions of Santa Clara Valley Bank, Coast National Bank, Ojai Community Bank, the Woodlake Branch of Citizen’s Business Bank and the Lompoc branch of Santa Maria Community Bank. All of the CDI’s are being amortized on a straight-line basis over eight years. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Details regarding these commitments and financial instruments are discussed in detail in Note 14 to the consolidated financial statements. |
Income Taxes | Income Taxes The Company files its income taxes on a consolidated basis with its subsidiary. The allocation of income tax expense represents each entity’s proportionate share of the consolidated provision for income taxes. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely to be realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. We have determined that as of December 31, 2023, all tax positions taken to date are highly certain and, accordingly, no accounting adjustment has been made to the financial statements. The Company recognizes interest and penalties related to uncertain tax positions as part of income tax expense. |
Salary Continuation Agreements and Directors' Retirement Plan | Salary Continuation Agreements and Directors’ Retirement Plan The Company has entered into agreements to provide members of the Board of Directors and certain key executives, or their designated beneficiaries, with annual benefits for up to fifteen years after retirement or death. The Company accrues for these future benefits from the effective date of the plan until the director’s or executive’s expected retirement date in a systematic and rational manner. At the consolidated balance sheet date, the amount of accrued benefits equals the then present value of the benefits expected to be provided to the director or employee, any beneficiaries, and covered dependents in exchange for the director’s or employee’s services to that date. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes fluctuations in unrealized gains and losses on securities available for sale, net of an adjustment for the effects of realized gains and losses and any applicable tax. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of other comprehensive income that historically has not been recognized in the calculation of net income. Unrealized gains and losses on the Company’s available for sale securities, net of tax, are included in other comprehensive income after adjusting for the effects of realized gains and losses. Total comprehensive income and the components of accumulated other comprehensive income (loss) are presented in the consolidated statements of comprehensive income. |
Stock-Based Compensation | Stock-Based Compensation At December 31, 2023, the Company had one active stock-based compensation plan, the Sierra Bancorp 2023 Equity Compensation Plan (the “2023 Plan”), which was adopted by the Company’s Board of Directors on March 17, 2023 and approved by the Company’s shareholders on May 24, 2023. The 2023 Plan replaced the Company’s 2017 Stock Incentive Plan (the “2017” Plan), which expired by its own terms on March 16, 2023. Unvested restricted stock and options to purchase shares granted under the 2017 Plan and its predecessor the 2007 Stock Incentive Plan (the “2007” Plan) that remained outstanding were unaffected by that plan’s termination. The 2023 Plan covers 360,000 shares of the Company’s authorized but unissued common stock, subject to adjustment for stock splits and dividends, and provides for the issuance of both “incentive” and “nonqualified” stock options to salaried officers and employees, and of “nonqualified” stock options to non-employee directors. The 2023 Plan also provides for the issuance of restricted stock awards to these same classes of eligible participants. Compensation cost and director’s expense is recognized for stock options and restricted stock awards issued to employees and directors and is recognized over the required service period, generally defined as the vesting period. The Company is using the Black-Scholes model to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. The “multiple option” approach for stock options is used to allocate the resulting valuation to actual expense for current period. Expected volatility is based on historical volatility of the Company’s common stock. The Company uses historical data to estimate stock option exercise and post-vesting termination behavior. The expected term of stock options granted is based on historical data and represents the period of time that options granted are expected to be outstanding subsequent to vesting, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the stock option is based on the U.S. Treasury yield curve in effect at the time of the grant. No stock options were granted during the years ended December 31, 2023, 2022 and 2021. |
Revenue Recognition | Revenue Recognition Revenue from contracts with customers subject to ASC 606 comprises the noninterest income earned by the Company in exchange for services provided to customers. Income associated with customer contracts generally involve transaction prices that are fixed and performance obligations which are satisfied as services are rendered. In most cases recognition occurs within a single financial reporting period as there is little or no judgement involved in the timing of revenues. We generally act in a principal capacity, on our own behalf, in most of our contracts with customers. In such transactions, we recognize revenue and the related costs to provide our services on a gross basis in our financial statements. Service Charges on Deposit Accounts comprise charges on retail and business accounts. Business customers can earn credits depending on account type and deposit balances maintained with the Company, which may be used to offset fees. Fees and credits are based on predetermined, agreed-upon rates. In some cases, we act in an agent capacity, deriving revenue through assisting other entities in transactions with our customers. In such transactions, we recognize revenue and those related costs to provide services on a gross basis in our financial statements. Debit card interchange income is derived from our customers’ use of various interchange and ATM/debit card networks which are the primary sources of revenue generated in an agent capacity. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In September 2016 the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which eliminates the probable initial recognition threshold for credit losses in current U.S. GAAP, and instead requires an organization to record an estimate of expected credit losses over the contractual term for financial assets carried at amortized cost (generally loans and held-to-maturity investment securities) in addition to certain off balance-sheet credit exposure. Under the current expected credit losses (“CECL”) methodology expected credit losses for financial assets are estimated over the contractual life of the financial asset, adjusted for expected prepayments, considering historical experience, current conditions, and reasonable and supportable forecasts. Additionally, under CECL the accounting for credit losses on available-for-sale debt securities is addressed through an allowance for credit losses which is a change from legacy GAAP which previously required the direct write-down of securities through the other-than-temporary impairment approach. The Company implemented CECL on January 1, 2022, using the modified retrospective approach to estimate lifetime expected losses on financial assets measured at amortized cost in addition to certain off balance sheet credit exposures. The January 1, 2022, increase in the Company’s allowance for credit losses, of $9.5 million on loans and $0.9 million in off balance sheet credit exposures, net of the impact of deferred taxes, was reflected in a transition adjustment of $7.3 million to retained earnings. There was no cumulative effect adjustment related to our available-for-sale investment portfolio upon adoption and the company had no securities designated as held-to-maturity as of January 1, 2022. Results for reporting periods beginning after December 31, 2021, are presented under CECL whereas prior comparative periods are presented under legacy GAAP. In March 2023 the FASB issued, ASU No. 2023-02, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” ASU 2023-02 is intended to improve the accounting and disclosures for investments in tax credit structures. ASU 2023-02 allows entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. Previously, this method was only available for qualifying tax equity investments in low-income housing tax credit structures. ASU 2023-02 was adopted by the Company on January 1, 2023, and its adoption did not have a significant effect on the Company’s financial statements. On October 9, 2023, the FASB issued ASU 2023-06, “Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification of Initiative.” ASU 2023-06 amends the disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification (the “Codification”). The ASU was issued in response to the SEC’s August 2018 final rule that updated and simplified disclosure requirements that the SEC believed were “redundant, duplicative, overlapping, outdated, or superseded.” The new guidance is intended to align U.S. GAAP requirements with those of the SEC and to facilitate the application of U.S. GAAP for all entities. ASU 2023-06 applies to all reporting entities within the scope of the amended subtopics. Note that some of the amendments introduced by the ASU are technical corrections or clarifications of the FASB’s current disclosure or presentation requirements. The effective date for each amendment of ASU 2023-06 will be the date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The Company will apply the amendments in ASU 2023-06 prospectively after the effective dates. The adoption of this standard is not expected to have a significant effect on the Company’s financial statements. In November 2023 the FASB issued, ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” ASU 2023-07 expands segment disclosure requirements for public entities to require disclosure of significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. ASU 2023-07 is not expected to have a significant impact on our financial statements. In December 2023 the FASB issued, ASU 2023-09,“Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” ASU 2023-09 requires public business entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if items meet a quantitative threshold. ASU 2023-09 also requires all entities to disclose income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold, among other things. ASU 2023-09 is effective for us on January 1, 2025, though early adoption is permitted. ASU 2023-09 is not expected to have a significant impact on our financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Standards Update 2016-13 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of Transition Impact on Allowance for Credit Losses | In March 2023 the FASB issued, ASU No. 2023-02, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” ASU 2023-02 is intended to improve the accounting and disclosures for investments in tax credit structures. ASU 2023-02 allows entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. Previously, this method was only available for qualifying tax equity investments in low-income housing tax credit structures. ASU 2023-02 was adopted by the Company on January 1, 2023, and its adoption did not have a significant effect on the Company’s financial statements. On October 9, 2023, the FASB issued ASU 2023-06, “Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification of Initiative.” ASU 2023-06 amends the disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification (the “Codification”). The ASU was issued in response to the SEC’s August 2018 final rule that updated and simplified disclosure requirements that the SEC believed were “redundant, duplicative, overlapping, outdated, or superseded.” The new guidance is intended to align U.S. GAAP requirements with those of the SEC and to facilitate the application of U.S. GAAP for all entities. ASU 2023-06 applies to all reporting entities within the scope of the amended subtopics. Note that some of the amendments introduced by the ASU are technical corrections or clarifications of the FASB’s current disclosure or presentation requirements. The effective date for each amendment of ASU 2023-06 will be the date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The Company will apply the amendments in ASU 2023-06 prospectively after the effective dates. The adoption of this standard is not expected to have a significant effect on the Company’s financial statements. In November 2023 the FASB issued, ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” ASU 2023-07 expands segment disclosure requirements for public entities to require disclosure of significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. ASU 2023-07 is not expected to have a significant impact on our financial statements. In December 2023 the FASB issued, ASU 2023-09,“Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” ASU 2023-09 requires public business entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if items meet a quantitative threshold. ASU 2023-09 also requires all entities to disclose income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold, among other things. ASU 2023-09 is effective for us on January 1, 2025, though early adoption is permitted. ASU 2023-09 is not expected to have a significant impact on our financial statements. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost And Estimated Fair Value | The amortized cost and fair value of the securities available-for-sale and held-to-maturity are as follows (dollars in thousands): December 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Estimated Fair Value Available-for-sale U.S. government agencies $ 102,823 $ 23 $ (97) $ — $ 102,749 Mortgage-backed securities 100,745 21 (1,222) — 99,544 State and political subdivisions 200,057 572 (6,423) — 194,206 Corporate bonds 65,273 — (13,233) — 52,040 Collateralized loan obligations 573,027 1,113 (3,478) — 570,662 Total available-for-sale securities $ 1,041,925 $ 1,729 $ (24,453) $ — $ 1,019,201 Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Estimated Fair Value Allowance for Credit Losses Held-to-maturity U.S. government agencies $ 5,522 $ — $ (617) $ 4,905 $ — Mortgage-backed securities 142,295 — (10,441) 131,854 — State and political subdivisions 172,256 5,909 — 178,165 (16) Total held-to-maturity securities $ 320,073 $ 5,909 $ (11,058) $ 314,924 $ (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 173,424 585 1,018 175,027 (63) Total held-to-maturity securities $ 336,944 $ 585 $ (9,518) $ 328,011 $ (63) |
Information Pertaining to Investment Securities Aggregated by Investment Category and Length of Time that Individual Securities in a Continuous 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 (dollars in thousands): December 31, 2023 Less than twelve months Twelve months or longer 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 14 $ (97) $ 46,823 $ — $ 3,929 $ (97) $ 50,752 Mortgage-backed securities 321 — 20 (1,222) 94,505 (1,222) 94,525 State and political subdivisions 201 (33) 6,950 (6,390) 125,283 (6,423) 132,233 Corporate bonds 51 (118) 2,316 (13,115) 49,724 (13,233) 52,040 Collateralized loan obligations 47 — — (3,478) 393,258 (3,478) 393,258 Total available-for-sale 634 $ (248) $ 56,109 $ (24,205) $ 666,699 $ (24,453) $ 722,808 December 31, 2022 Less than twelve months Twelve months or longer 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 |
Realized Gain (Loss) on Investments | Gross gains and losses from the sales and calls of securities for the years ended were as follows (dollars in thousands): December 31, 2023 2022 2021 Gross gains on sales and calls of securities $ 396 $ 1,487 $ 11 Gross losses on sales and calls of securities — — — Net gains (losses) on sales and calls of securities $ 396 $ 1,487 $ 11 |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of investment securities available-for-sale and held-to-maturity at December 31, 2023 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without penalties (dollars in thousands): December 31, 2023 Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturing within one year $ 583 $ 582 $ 145 $ 145 Maturing after one year through five years 40,187 39,916 2,413 2,384 Maturing after five years through ten years 156,541 143,516 19,895 18,350 Maturing after ten years 170,842 164,981 155,325 162,191 Securities not due at a single maturity date: Mortgage-backed securities 100,745 99,544 142,295 131,854 Collateralized loan obligations 573,027 570,662 — — $ 1,041,925 $ 1,019,201 $ 320,073 $ 314,924 |
Summary 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 (dollars in thousands): December 31, 2023 December 31, 2022 General obligation bonds Amortized Cost Fair Value Amortized Cost Fair Value State of Issuance: Texas $ 146,215 $ 146,589 $ 153,209 $ 146,667 California 63,316 61,048 65,758 60,701 Washington 20,212 20,400 21,635 21,312 Other (29 and 29 states, respectively) 94,936 96,606 102,336 100,480 Total general obligation bonds 324,679 324,643 342,938 329,160 Revenue bonds State of Issuance: Texas 8,850 8,899 9,216 8,840 California 3,794 3,735 3,788 3,673 Washington 4,035 3,591 4,083 3,490 Other (20 and 20 states, respectively) 30,955 31,503 37,209 35,844 Total revenue bonds 47,634 47,728 54,296 51,847 Total obligations of states and political subdivisions $ 372,313 $ 372,371 $ 397,234 $ 381,007 The following table summarizes the amortized cost and fair value of revenue bonds in the Company’s investment securities portfolio at the indicated dates, identifying the revenue source of repayment for our largest source concentrations (dollars in thousands): December 31, 2023 December 31, 2022 Revenue bonds Amortized Cost Fair Value Amortized Cost Fair Value Revenue Source: Water $ 19,113 $ 19,158 $ 21,246 $ 19,977 Sewer 6,323 6,380 6,560 6,405 Lease 6,070 6,312 7,035 7,250 Sales tax 4,349 4,010 4,123 3,934 Other (10 and 10 sources, respectively) 11,779 11,868 15,332 14,281 Total revenue bonds $ 47,634 $ 47,728 $ 54,296 $ 51,847 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Loans by Class | December 31, 2023 2022 Real estate: Residential real estate 412,063 437,446 Commercial real estate 1,328,224 1,311,158 Other construction/land 6,256 18,412 Farmland 67,276 113,394 Total real estate 1,813,819 1,880,410 Other commercial 156,272 102,967 Mortgage warehouse lines 116,000 65,439 Consumer loans 3,984 4,124 Subtotal 2,090,075 2,052,940 Plus (less) net deferred loan fees and costs 309 (123) Allowance for credit losses on loans (23,500) (23,060) Net loans $ 2,066,884 $ 2,029,757 |
Schedule of Amortized Cost Basis of Nonaccrual Loans | The following tables present the amortized cost basis of nonaccrual loans, according to loan class, with and without individually evaluated reserves as of December 31, 2023 and 2022 (dollars in thousands): December 31, 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 414 — 414 — Commercial real estate — 7,457 7,457 — Farmland — — — — Total real estate 414 7,457 7,871 — Other commercial 114 — 114 14 Consumer loans — — — — Total $ 528 $ 7,457 $ 7,985 $ 14 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 | The following tables present the amortized cost basis of collateral-dependent loans by class as of December 31, 2022 and 2023 (dollars in thousands): December 31, 2023 Amortized Cost Individual Reserves Real estate: Residential real estate 414 — Commercial real estate 7,457 1,600 Other construction/land $ — $ — Farmland — — Total real estate 7,871 1,600 Other commercial 114 — Mortgage warehouse lines — — Consumer loans — — Total $ 7,985 $ 1,600 December 31, 2022 Amortized Cost Individual Reserves Real estate: Residential real estate 688 — Commercial real estate — — Other construction/land — — Farmland 15,812 — Total real estate 16,500 — Other commercial 3,043 39 Mortgage warehouse lines — — Consumer loans — — Total $ 19,543 $ 39 |
Schedule of Aging of the Amortized Cost Basis in Past-Due Loans | The following tables present the aging of the amortized cost basis in past-due loans, according to class, as of December 31, 2023 and 2022 (dollars in thousands): December 31, 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 1,768 — — 1,768 411,494 413,262 Commercial real estate — — — — 1,325,494 1,325,494 Other construction/land $ — $ — $ — $ — $ 6,268 $ 6,268 Farmland — — — — 67,510 67,510 Total real estate 1,768 — — 1,768 1,810,766 1,812,534 Other commercial 158 171 14 343 157,417 157,760 Mortgage warehouse lines — — — — 116,000 116,000 Consumer loans 47 — — 47 4,043 4,090 Total loans $ 1,973 $ 171 $ 14 $ 2,158 $ 2,088,226 $ 2,090,384 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 Basis of Each Class of Financing Receivable | December 31, 2023 Principal Forgiveness Term Extension Combination Term Extension Interest Rate Reduction Total Class of Financing Receivable Real estate: Residential real estate $ — $ — $ 26 0.01% Commercial real estate — — 148 0.01% Total real estate — — 174 0.01% Other commercial — 277 — 0.18% Consumer loans — 25 — 0.61% Total $ — $ 302 $ 174 0.02% |
Schedule of Financial Effect of Loan Modifications | December 31, 2023 Principal Forgiveness Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (years) Real estate: Residential real estate $ — 1.25% 14.30 Commercial real estate $ — 5.31% 15.67 Other commercial $ — — 4.76 Consumer loans $ — — 7.11 |
Troubled Debt Restructurings, by Type of Loan Modification | Troubled Debt Restructurings, by Type of Loan Modification ( dollars in thousands) December 31, 2021 Rate Term Interest Only Rate & Term Term & Interest Modification Modification Modification Modification Modification Total Troubled debt restructurings Real estate: Other construction/land $ — $ — $ — $ — $ — $ — 1-4 family - closed-end — — — — — — Equity lines — — — — — — Multi-family residential — 1,000 — 83 — 1,083 Commercial real estate owner occupied — — — — — — Commercial real estate non-owner occupied — 136 — — — 136 Farmland — — — — — — Total real estate loans — 1,136 — 83 — 1,219 Agricultural — 118 — — — 118 Commercial and industrial — 185 — — — 185 Consumer loans — 44 — — 23 67 Small Business Administration Loans — — — — — — Total $ — $ 1,483 $ — $ 83 $ 23 $ 1,589 Troubled Debt Restructurings (dollars in thousand) |
Schedule of Amortized Cost of Loans by Credit Quality Classification in Addition to Loan Vintage | December 31, 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 $ - $ 104,141 $ 228,849 $ 7,611 $ 1,979 $ 50,295 $ 12,797 $ 2,302 $ 407,974 Special mention - - 1,241 - - 2,942 20 284 4,487 Substandard - - - - - 494 115 192 801 Subtotal - 104,141 230,090 7,611 1,979 53,731 12,932 2,778 413,262 Commercial real estate Pass 112,254 275,626 58,310 475,353 51,100 251,163 22,929 - 1,246,735 Special mention 148 - - 39,654 3,010 8,489 - - 51,301 Substandard - - - 21,872 - 5,586 - - 27,458 Subtotal 112,402 275,626 58,310 536,879 54,110 265,238 22,929 - 1,325,494 Other construction/land Pass 352 - - 3,646 638 1,632 - - 6,268 Substandard - - - - - - - - - Subtotal 352 - - 3,646 638 1,632 - - 6,268 Farmland Pass 6,731 11,645 11,793 2,650 1,652 11,608 2,750 394 49,223 Special mention - - - 840 - 10,471 - - 11,311 Substandard - - - - - 6,976 - - 6,976 Subtotal 6,731 11,645 11,793 3,490 1,652 29,055 2,750 394 67,510 Other commercial Pass 18,319 6,501 2,666 6,622 4,534 9,354 101,163 1,171 150,330 Special mention - - 273 2,783 - 128 143 3,748 7,075 Substandard - - 55 - - - 208 92 355 Subtotal 18,319 6,501 2,994 9,405 4,534 9,482 101,514 5,011 157,760 Mortgage warehouse lines Pass - - - - - - 116,000 - 116,000 Subtotal - - - - - - 116,000 - 116,000 Consumer loans Pass 1,366 229 102 82 67 177 1,949 - 3,972 Special mention - - - 15 - 35 13 - 63 Substandard 55 - - - - - - - 55 Subtotal 1,421 229 102 97 67 212 1,962 - 4,090 Total $ 139,225 $ 398,142 $ 303,289 $ 561,128 $ 62,980 $ 359,350 $ 258,087 $ 8,183 $ 2,090,384 Gross charge-offs 2,145 45 250 2,266 81 1,345 489 6,621 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 |
Schedule of Activity in Allowance for Credit Losses by Portfolio Segment | The following table presents the activity in the allowance for credit losses by portfolio segment for the year ended December 31, 2023 and 2022 (dollars in thousands): 1-4 Family 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) (9,205) (322) — (1,396) (12,834) Recoveries 99 260 — 163 — 764 1,286 Provision for credit losses 632 703 8,941 (26) (19) 667 10,898 Balance, December 31, 2022 $ 3,251 $ 17,732 $ 458 $ 1,233 $ 72 $ 314 $ 23,060 Charge-offs (30) (2,266) (1,277) (1,320) — (1,728) (6,621) Recoveries 205 17 1,370 425 — 986 3,003 Provision for credit losses (699) 3,071 35 810 102 739 4,058 Balance, December 31, 2023 $ 2,727 $ 18,554 $ 586 $ 1,148 $ 174 $ 311 $ 23,500 |
Schedule of Debtor Troubled Debt Restructuring, Subsequent Periods | Troubled Debt Restructurings, by Type of Loan Modification ( dollars in thousands) December 31, 2021 Rate Term Interest Only Rate & Term Term & Interest Modification Modification Modification Modification Modification Total Troubled debt restructurings Real estate: Other construction/land $ — $ — $ — $ — $ — $ — 1-4 family - closed-end — — — — — — Equity lines — — — — — — Multi-family residential — 1,000 — 83 — 1,083 Commercial real estate owner occupied — — — — — — Commercial real estate non-owner occupied — 136 — — — 136 Farmland — — — — — — Total real estate loans — 1,136 — 83 — 1,219 Agricultural — 118 — — — 118 Commercial and industrial — 185 — — — 185 Consumer loans — 44 — — 23 67 Small Business Administration Loans — — — — — — Total $ — $ 1,483 $ — $ 83 $ 23 $ 1,589 Troubled Debt Restructurings (dollars in thousand) Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Reserve December 31, 2021 Loans Investment Investment Difference (1) Real estate: Other construction/land — $ — $ — $ — 1-4 family - closed-end — — — — Equity lines — — — — Multi-family residential 2 1,083 1,083 — Commercial real estate - owner occupied — — — — Commercial real estate - non-owner occupied 1 137 136 (1) Farmland — — — — Total real estate loans 1,220 1,219 (1) Agricultural 1 118 118 116 Commercial and industrial 1 185 185 (1) Consumer loans 3 67 67 2 Total $ 1,590 $ 1,589 $ 116 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | Premises and equipment at cost consisted of the following (dollars in thousands): December 31, 2023 2022 Land $ 2,694 $ 4,823 Buildings and improvements 11,919 21,170 Furniture, fixtures and equipment 17,857 18,948 Leasehold improvements 14,699 14,732 Total premises and equipment, gross 47,169 59,673 Less accumulated depreciation and amortization 30,262 37,195 Total premises and equipment, net $ 16,907 $ 22,478 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Maturities for Operating Lease Liabilities | Future undiscounted lease payments for operating leases with initial terms of one year or more as of December 31, 2023 are as follows (dollars in thousands): Year Ending December 31, 2024 $ 3,625 2025 3,330 2026 3,019 2027 2,907 2028 2,375 Thereafter 24,283 Total undiscounted lease payments $ 39,539 Less: imputed interest (17,593) Net lease liabilities $ 21,946 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Intangible Assets | Acquired intangible assets were as follows at year-end (dollars in thousands): Years Ended December 31, 2023 2022 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Core deposit intangibles $ 8,401 $ 7,002 $ 8,401 $ 6,126 |
Schedule of Estimated Amortization Expense for Each of the Next Five Years and Thereafter | Estimated amortization expense for each of the next five years and thereafter (dollars in thousands): 2024 $ 781 2025 566 2026 52 2027 — 2028 — Thereafter — Total $ 1,399 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Other assets consisted of the following (dollars in thousands): December 31, 2023 2022 Accrued interest receivable $ 20,347 $ 18,354 Deferred tax assets 28,682 34,984 Investment in qualified affordable housing projects 14,390 10,051 Investment in limited partnerships 4,359 4,359 Investment in SBA loan fund 25,000 25,000 Federal Home Loan Bank stock, at cost 14,657 12,729 Other 40,385 20,142 Total $ 147,820 $ 125,619 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
Schedule Of Maturities Of Times Deposit | Aggregate annual maturities of time deposits were as follows (dollars in thousands): Year Ending December 31, 2024 $ 568,685 2025 17,738 2026 35,897 2027 41,101 2028 25,678 Thereafter 1,008 Total $ 690,107 |
Schedule Of Interest Expense Recognized In Interest Bearing Deposit | Interest expense recognized on interest-bearing deposits consisted of the following (dollars in thousands): Year Ended December 31, 2023 2022 2021 Interest bearing demand deposits $ 1,429 $ 485 $ 331 NOW 289 322 444 Savings 269 278 240 Money market 710 95 111 Time deposits 23,214 4,914 1,039 Brokered Deposits 5,643 725 225 Total $ 31,554 $ 6,819 $ 2,390 |
Other Borrowing Arrangements (T
Other Borrowing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Borrowings | At year end, short-term borrowings consisted of the following (dollars in thousands): 2023 Average balance outstanding Amount Average interest rate during the year Maximum month-end balance during the year Weighted average interest rate at year-end As of December 31: Repurchase agreements $ 90,294 $ 107,121 0.27% $ 107,121 0.27% Short term borrowings 225,437 280,500 5.34% 219,000 5.34% Total $ 315,731 $ 387,621 $ 326,121 2022 Average balance outstanding Amount Average interest rate during the year Maximum month-end balance during the year Weighted average interest rate at year-end As of December 31: Repurchase agreements $ 110,387 $ 109,169 0.29% $ 118,014 0.29% Short term borrowings 47,708 219,000 3.67% 219,000 3.67% Total $ 158,095 $ 328,169 $ 337,014 |
Schedule of Long-Term Advances from FHLB | At year end, long-term advances from FHLB consisted of the following (dollars in thousands): 2023 2022 Amount Fixed rate Weighted average interest rate Amount Fixed rate Weighted average interest rate As of December 31: Federal Home Loan Bank advances, maturing 2026 $ 25,000 3.96% 3.96% $ — — — Federal Home Loan Bank advances, maturing 2028 15,000 3.78% 3.78% — Federal Home Loan Bank advances, maturing 2026 20,000 4.04% 4.04% — — — Federal Home Loan Bank advances, maturing 2028 20,000 3.81% 3.81% Total $ 80,000 $ — — |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | At year-end, long-term debt was as follows (dollars in thousands): 2023 2022 Principal Unamortized Debt Issuance Costs Principal Unamortized Debt Issuance Costs Fixed - floating rate subordinated debentures, due 2031 (1) $ 50,000 $ 696 $ 50,000 $ 786 $ 50,000 $ 696 $ 50,000 $ 786 (1) 3.25% fixed rate for five years then floating rate at 253.5 bps over 3-month term SOFR . |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes follows (dollars in thousands): Year Ended December 31, 2023 2022 2021 Federal: Current $ 8,470 $ 6,071 $ 8,186 Deferred (1,531) 233 135 Total federal 6,939 6,304 8,321 State: Current 5,493 4,874 5,916 Deferred (812) 78 (50) Total state 4,681 4,952 5,866 Total tax provision $ 11,620 $ 11,256 $ 14,187 |
Schedule of Deferred Tax Assets and Liabilities | The components of the net deferred tax asset, included in other assets, are as follows (dollars in thousands): December 31, 2023 2022 Deferred tax assets: Allowance for credit losses on loans $ 6,947 $ 6,817 Deferred compensation 4,440 4,158 Accrued reserves 1,131 1,022 Non-accrual loans 76 241 Lease liability 6,488 2,147 Loan fair value adjustment 172 245 Net operating losses 1,178 1,370 State income tax deduction 1,176 1,005 Other 4,982 1,211 Unrealized losses on securities available-for-sale 15,101 23,746 Total deferred tax assets 41,691 41,962 Deferred tax liabilities: Deferred loan costs (1,304) (1,070) Right-of-use asset (7,604) (2,034) TRUPS accretion (735) (788) FMV equity securities (620) (706) Prepaids (791) (639) Other (689) (517) Intangibles (130) (337) Premises and equipment (1,136) (887) Total deferred tax liabilities (13,009) (6,978) Net deferred tax assets $ 28,682 $ 34,984 The Company believes that the deferred tax assets will be fully realized, therefore no valuation allowance has been recorded. |
Schedule of Effective Income Tax Rate Reconciliation | The Company believes that the deferred tax assets will be fully realized, therefore no valuation allowance has been recorded. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Financial Instruments Representing Off-Balance-Sheet Credit Risk | The following financial instruments represent off-balance-sheet credit risk (dollars in thousands): December 31, 2023 2022 Fixed-rate commitments to extend credit $ 84,646 $ 94,248 Variable-rate commitments to extend credit $ 397,408 $ 795,269 Standby letters of credit $ 5,040 $ 6,036 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | A reconciliation of the numerators and denominators of the basic and diluted earnings per share computations is as follows (dollars in thousands, except per share data): For the Years Ended December 31, 2023 2022 2021 Basic Earnings Per Share Net income (dollars in thousands) $ 34,844 $ 33,659 $ 43,012 Weighted average shares outstanding 14,706,141 14,955,756 15,241,957 Basic earnings per share $ 2.37 $ 2.25 $ 2.82 Diluted Earnings Per Share Net income (dollars in thousands) $ 34,844 $ 33,659 $ 43,012 Weighted average shares outstanding 14,706,141 14,955,756 15,241,957 Effect of dilutive equity awards 31,729 66,999 111,488 Weighted average shares outstanding 14,737,870 15,022,755 15,353,445 Diluted earnings per share $ 2.36 $ 2.24 $ 2.80 |
Schedule of Stock Option Activity | A summary of the Company’s stock option activity follows (shares in thousands, except exercise price): 2023 2022 2021 Shares Weighted Average Exercise Price Aggregate Intrinsic Value (1) Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding, Beginning of year 352 $ 25.06 416 $ 24.15 495 $ 23.67 Exercised or released — $ — (30) $ 10.59 (33) $ 14.64 Granted — $ — — $ — — $ — Canceled (9) $ 26.56 (32) $ 27.32 (45) $ 26.36 Expired — $ — (2) $ 10.21 (1) $ 10.58 Outstanding, end of year 343 $ 25.02 $ 447 352 $ 25.06 416 $ 24.15 Exercisable, end of year (2) 343 $ 25.02 $ 447 311 $ 24.78 355 $ 23.62 (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 December 31, 2023. This amount changes based on changes in the market value of the Company’s stock. (2) The weighted average remaining contractual life of stock options outstanding and exercisable on December 31, 2023 was 5.2 years and 5.0 years, respectively. |
Schedule of Options Indexed to Issuer Equity | Information related to stock options during each year follows (dollars in thousands, except per share data): 2023 2022 2021 Weighted-average grant-date fair value per share $ — $ — $ — Total intrinsic value of stock options exercised $ — $ 329 $ 346 Total fair value of stock options vested $ — $ 103 $ 418 |
Summary of Nonvested Restricted Stock Shares | A summary of the Company’s nonvested shares for the year follows (shares in thousands, except grant date fair value): Nonvested Shares Shares Weighted Average Grant-Date Fair Value Nonvested at January 1, 2023 187 $ 21.42 Granted 118 19.51 Vested (61) 21.46 Forfeited (6) 23.02 Nonvested at December 31, 2023 238 $ 20.30 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Banking And Thrift [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | Actual and required capital amounts (dollars in thousands) and ratios are presented below at year end. Actual To Be Well Capitalized Under Prompt Corrective Action Regulations (CBLR Framework) 2023 Capital Amount Ratio Capital Amount Ratio Tier 1 (Core) Capital to average total assets Sierra Bancorp and subsidiary $ 384,936 10.32% $ 335,700 9.00% Bank of the Sierra $ 421,041 11.29% $ 335,639 9.00% Actual To Be Well Capitalized Under Prompt Corrective Action Regulations 2022 Capital Amount Ratio Capital Amount Ratio Tier 1 (Core) Capital to average total assets Sierra Bancorp and subsidiary $ 371,980 10.30% $ 325,031 9.00% Bank of the Sierra $ 396,856 10.99% $ 324,996 9.00% |
Noninterest Income (Tables)
Noninterest Income (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Non-Interest Revenue [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | Noninterest income also includes one general category of “other income” of which the following are major components (dollars in thousands): Year Ended December 31, 2023 2022 2021 Included in other income: Amortization of limited partnerships $ — $ 253 $ (524) Dividends on equity investments 1,076 843 737 Unrealized gains recognized on equity investments (291) (332) 857 Other 3,579 6,423 1,864 Total other noninterest income $ 4,364 $ 7,187 $ 2,934 |
Other Noninterest Expense (Tabl
Other Noninterest Expense (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating Cost and Expense, by Component | Other noninterest expense consisted of the following (dollars in thousands): Year Ended December 31, 2023 2022 2021 Legal, audit, professional, and director's fees $ 5,293 $ 3,061 $ 7,652 Data processing 5,831 6,202 5,890 Advertising and promotional 2,215 1,728 1,521 Deposit services 8,775 9,492 9,049 Stationery and supplies 531 486 345 Telephone and data communication 1,452 1,563 2,013 Loan and credit card processing 597 550 501 Foreclosed assets expense (income), net 665 84 72 Postage 219 373 308 Other 4,003 3,415 2,780 Assessments 1,942 1,078 1,157 Total other noninterest expense $ 31,523 $ 28,032 $ 31,288 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Summary of the Aggregate Activity Involving Related Party Borrowers | During the normal course of business, the Bank may enter into loans with related parties, including executive officers and directors. These loans are made with substantially the same terms, including rates and collateral, as loans to unrelated parties. The following is a summary of the aggregate activity involving related party borrowers (dollars in thousands): Year Ended December 31, 2023 2022 2021 Balance, beginning of year $ — $ 1,067 $ 1,794 Disbursements — 4,059 1,983 Amounts repaid — (5,150) (2,548) Effect of changes in composition of related parties — 24 (162) Balance, end of year $ — $ — $ 1,067 Undisbursed commitments to related parties $ 6 $ 6 $ 2,156 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Reported at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below (dollars in thousands): Fair Value Measurements at December 31, 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) Securities: U.S. government agencies $ — $ 102,749 $ — $ 102,749 $ — Mortgage-backed securities — 99,544 — 99,544 — State and political subdivisions — 194,206 — 194,206 — Corporate bonds — — 52,040 52,040 — Collateralized loan obligations — 570,662 — 570,662 — Total available-for-sale securities $ — $ 967,161 $ 52,040 $ 1,019,201 $ — 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) 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) | The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2023 and 2022 (dollars in thousands): 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 — — (5,395) — Purchases — — — 29,905 Transfers out of Level 3 — (195,707) — — Balance of recurring Level 3 assets at December 31, $ — $ — $ 52,040 $ 57,435 |
Schedule of Assets Reported at Fair Value on a Nonrecurring Basis | Assets and liabilities measured at fair market value on a non-recurring basis are summarized below (dollars in thousands): Year Ended December 31, 2023 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Collateral dependent loans $ — $ 5,889 $ — $ 5,889 Year Ended December 31, 2022 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Collateral dependent impaired loans $ — $ 18,141 $ — $ 18,141 |
Schedule of Quantitative Information About Level 3 Fair Value Measurements | The following table present quantitative information about recurring level 3 fair value measurements at December 31, 2023 (dollars in thousands): Range Fair Value Valuation Technique(s) Unobservable Input(s) Min Max Weighted Average Corporate Bonds $ 52,040 New issue pricing Risk appetite N/A N/A N/A Secondary market pricing Market volatility Credit quality of issuer Credit spread The following table presents quantitative information about recurring level 3 fair value measurements at December 31, 2022 (dollars in thousands): Range Fair Value Valuation Technique(s) Unobservable Input(s) Min Max Weighted Average Corporate Bonds $ 57,435 New issue pricing Risk appetite N/A N/A N/A Secondary market pricing Market volatility Credit quality of issuer Credit spread |
Disclosures about Fair Value _2
Disclosures about Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Amount and Estimated Fair Values of Financial Instruments | Carrying amount and estimated fair values of financial instruments not carried at fair value were as follows (dollars in thousands): December 31, 2023 Estimated Fair Value 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 $ 78,602 $ 78,602 $ — $ — $ 78,602 Securities held-to-maturity 320,057 — 314,924 — 314,924 Loans held for investment 2,066,884 — 5,889 1,918,654 1,924,543 Financial Liabilities: Time deposits $ 690,107 $ — $ 688,222 $ — $ 688,222 Repurchase agreements 107,121 — 107,121 — 107,121 Other borrowings 360,500 — 360,500 — 360,500 Long-term borrowings 49,304 — 44,097 — 44,097 Subordinated debentures 35,660 — 35,423 — 35,423 Notional Amount Off-balance-sheet financial instruments: Commitments to extend credit $ 482,054 Standby letters of credit 5,040 December 31, 2022 Estimated Fair Value 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 Securities held-to-maturity 336,881 — 328,011 — 328,011 Loans held for investment 2,029,757 — 18,141 1,909,822 1,927,963 Financial Liabilities: Time deposits $ 519,608 $ — $ 517,967 $ — $ 517,967 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 Notional Amount Off-balance-sheet financial instruments: Commitments to extend credit $ 889,517 Standby letters of credit 6,036 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Sources of Non-interest Income | Year Ended December 31, 2023 2022 2021 Noninterest income Service charges on deposits Returned item and overdraft fees $ 5,261 $ 5,227 $ 4,924 Other service charges on deposits 9,790 7,308 6,922 Debit card interchange income 8,052 8,533 8,485 Gain (loss) on limited partnerships (1) — 253 (524) Dividends on equity investments (1) 1,076 843 737 Unrealized (losses) gains recognized on equity investments (1) (291) (332) 857 Net gains on sale of securities (1) 396 1,487 11 Other (1) 6,116 7,451 6,667 Total noninterest income $ 30,400 $ 30,770 $ 28,079 (1) Not within the scope of ASC 606. Revenue streams are not related to contracts with customers and are accounted for on an accrual basis under other provisions of GAAP. |
Parent Only Condensed Financi_2
Parent Only Condensed Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet | BALANCE SHEETS Years Ended December 31, 2023 and 2022 (dollars in thousands) 2023 2022 ASSETS Cash and due from banks $ 10,437 $ 26,099 Investments in bank subsidiary 409,862 363,507 Investment in trust subsidiaries 1,145 1,145 Other assets 4,410 4,162 Total assets $ 425,854 $ 394,913 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Other liabilities $ 2,793 $ 6,636 Long-term debt 49,304 49,214 Subordinated debentures 35,660 35,481 Total liabilities 87,757 91,331 Shareholders' equity: Common stock 115,027 117,076 Retained earnings 259,050 243,082 Accumulated other comprehensive gain, net of taxes (35,980) (56,576) Total shareholders' equity 338,097 303,582 Total liabilities and shareholders' equity $ 425,854 $ 394,913 |
Schedule of Condensed Income Statement | STATEMENTS OF INCOME Years Ended December 31, 2023, 2022 and 2021 (dollars in thousands) 2023 2022 2021 Income: Dividend from subsidiary $ 16,800 $ 28,000 $ 3,200 Other operating income — — — Total income 16,800 28,000 3,200 Expense Salaries and employee benefits 1,741 1,129 779 Other expenses 6,117 4,550 2,728 Total expenses 7,858 5,679 3,507 Income before income taxes 8,942 22,321 (307) Income tax benefit (2,323) (1,679) (1,037) Income before equity in undistributed income of subsidiary 11,265 24,000 730 Equity in undistributed income of subsidiary 23,579 9,659 42,282 Net income $ 34,844 $ 33,659 $ 43,012 |
Schedule of Condensed Cash Flow Statement | STATEMENTS OF CASH FLOWS Years Ended December 31, 2023, 2022 and 2021 (dollars in thousands) 2023 2022 2021 Cash flows from operating activities: Net income $ 34,844 $ 33,659 $ 43,012 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed net income of subsidiary (23,579) (9,659) (42,282) Gain on sale of securities — — — (Increase) decrease in other assets 1,863 (3,459) 179 Increase (decrease) in other liabilities (6,117) 4,212 1,263 Net cash provided by operating activities 7,011 24,753 2,172 Cash flows from investing activities: Investment in subsidiary — — (25,000) Net cash used by investing activities — — (25,000) Cash flows from financing activities: Stock options exercised — 314 282 Repurchase of common stock (8,959) (5,192) (5,220) Dividends paid (13,714) (13,919) (13,232) Issuance of debentures, net — — 49,141 Net cash (used) in provided by financing activities (22,673) (18,797) 30,971 Net increase in cash and cash equivalents (15,662) 5,956 8,143 Cash and cash equivalents, beginning of year 26,099 20,143 12,000 Cash and cash equivalents, end of year $ 10,437 $ 26,099 $ 20,143 |
Condensed Quarterly Results o_2
Condensed Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Results of Operations Activities Disclosure | The following table sets forth the Company’s unaudited results of operations for the four quarters of 2022 and 2021. In management’s opinion, the results of operations reflect all adjustments (which include only recurring adjustments) necessary to present fairly the condensed results for such periods (dollars in thousands, except per share data). c 2023 Quarter Ended December 31, September 30, June 30, March 31, Interest income $ 42,444 $ 42,384 $ 40,875 $ 37,419 Interest expense 14,574 14,297 12,558 9,287 Net interest income 27,870 28,087 28,317 28,132 Provision (benefit) for credit losses 3,525 (33) (70) 260 Noninterest income 8,045 7,762 8,013 6,579 Noninterest expense 24,136 22,562 22,968 22,992 Net income before taxes 8,254 13,320 13,432 11,459 Provision for taxes 1,964 3,435 3,513 2,709 Net income $ 6,290 $ 9,885 $ 9,919 $ 8,750 Diluted earnings per share $ 0.43 $ 0.68 $ 0.67 $ 0.58 Cash dividend per share $ 0.23 $ 0.23 $ 0.23 $ 0.23 2022 Quarter Ended December 31, September 30, June 30, March 31, Interest income $ 35,603 $ 31,929 $ 28,206 $ 26,081 Interest expense 6,240 3,017 1,621 1,325 Net interest income 29,363 28,912 26,585 24,756 Provision for credit losses 6,483 1,259 2,419 600 Noninterest income 7,656 6,612 10,539 6,063 Noninterest expense 21,522 20,996 22,213 20,079 Net income before taxes 9,014 13,269 12,492 10,140 Provision for taxes 1,901 3,334 3,288 2,733 Net income $ 7,113 $ 9,935 $ 9,204 $ 7,407 Diluted earnings per share $ 0.47 $ 0.66 $ 0.62 $ 0.49 Cash dividend per share $ 0.23 $ 0.23 $ 0.23 $ 0.23 |
The Business of Sierra Bancorp
The Business of Sierra Bancorp (Details) | Dec. 31, 2023 store |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of full service branch offices | 35 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Oct. 01, 2022 | Apr. 01, 2022 | |
Accounting Policies [Abstract] | ||||
Accrued interest on held-to-maturity securities | $ 2,400 | |||
Reassessed classification of investments | $ 198,300 | $ 162,100 | ||
Debt Securities, Held-to-Maturity, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Other Assets | |||
Accrued interest on available-for-sale securities | $ 12,300 | |||
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Other Assets | |||
Unrealized loss on securities transferred | $ 28,400 | |||
Allowance for credit losses on held-to-maturity securities | 16 | $ 63 | ||
(Benefit) provision for credit losses on held-to-maturity securities | $ (47) | $ 63 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - FHLB Stock and Other Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Federal Home Loan Bank stock, at cost | $ 14,657 | $ 12,729 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Loans Held for Sale (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Accounting Policies [Abstract] | |
Loan and lease origination fees | $ 5.6 |
Interest Income | $ 0.4 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Premises and Equipment (Details) | Dec. 31, 2023 |
Building and Building Improvements [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 25 years |
Building and Building Improvements [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 39 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Foreclosed Assets (Details) | Dec. 31, 2023 item |
Accounting Policies [Abstract] | |
Number of foreclosed residential real estate properties | 0 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets - Impairment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Asset Impairment [Abstract] | |||
Goodwill and intangible asset impairment | $ 0 | $ 0 | $ 0 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets - Useful Lives (Details) | Dec. 31, 2023 |
Core Deposits [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 8 years |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Stock-Based Compensation - General Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted (in shares) | 0 | 0 | 0 |
Stock Option Plans 2023 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 360,000 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Dec. 31, 2023 | Dec. 31, 2022 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 259,050 | $ 243,082 | |
Investment securities available for sale | $ 1,019,201 | $ 934,923 | |
Accounting Standards Update 2016-13 [Member] | |||
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 | ||
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 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Estimated Fair Value - Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | $ 1,041,925 | $ 984,579 |
Gross Unrealized Gains | 1,729 | 726 |
Gross Unrealized Losses | (24,453) | (50,382) |
Allowance for Credit Losses | 0 | 0 |
Investment securities available for sale | 1,019,201 | 934,923 |
U.S. Government Agencies [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 102,823 | 50,625 |
Gross Unrealized Gains | 23 | 49 |
Gross Unrealized Losses | (97) | (75) |
Investment securities available for sale | 102,749 | 50,599 |
Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 100,745 | 129,948 |
Gross Unrealized Gains | 21 | |
Gross Unrealized Losses | (1,222) | (7,416) |
Investment securities available for sale | 99,544 | 122,532 |
States and Political Subdivisions [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 200,057 | 223,810 |
Gross Unrealized Gains | 572 | 607 |
Gross Unrealized Losses | (6,423) | (18,437) |
Investment securities available for sale | 194,206 | 205,980 |
Corporate Bond [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 65,273 | 65,164 |
Gross Unrealized Gains | 10 | |
Gross Unrealized Losses | (13,233) | (7,739) |
Investment securities available for sale | 52,040 | 57,435 |
Collateralized Loan Obligations [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 573,027 | 515,032 |
Gross Unrealized Gains | 1,113 | 60 |
Gross Unrealized Losses | (3,478) | (16,715) |
Investment securities available for sale | $ 570,662 | $ 498,377 |
Investment Securities - Amort_2
Investment Securities - Amortized Cost and Estimated Fair Value - Held-to-Maturity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Held-to-Maturity, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | $ 320,073 | $ 336,944 |
Gross Unrecognized Gains | 5,909 | 585 |
Gross Unrecognized Losses | (11,058) | (9,518) |
Securities held-to-maturity | 314,924 | 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 | 5,522 | 6,047 |
Gross Unrecognized Losses | (617) | (621) |
Securities held-to-maturity | 4,905 | 5,426 |
Mortgage-Backed Securities [Member] | ||
Debt Securities, Held-to-Maturity, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | ||
Amortized Cost | 142,295 | 157,473 |
Gross Unrecognized Losses | (10,441) | (9,915) |
Securities held-to-maturity | 131,854 | 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 | 172,256 | 173,424 |
Gross Unrecognized Gains | 5,909 | 585 |
Gross Unrecognized Losses | (1,018) | |
Securities held-to-maturity | 178,165 | 175,027 |
Allowance for credit losses on held-to-maturity securities | $ (16) | $ (63) |
Investment Securities - Realize
Investment Securities - Realized Gains (Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-sale, Realized Gain (Loss) [Abstract] | |||
Gross gains on sales and calls of securities | $ 396 | $ 1,487 | $ 11 |
Gross losses on sales and calls of securities | (14,500) | ||
Net gains (losses) on sales and calls of securities | $ 396 | $ 1,487 | $ 11 |
Investment Securities - Proceed
Investment Securities - Proceeds from Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Proceeds from Sale and Maturity of Debt Securities, Available-for-sale [Abstract] | |||
Proceeds from sales of securities available for sale | $ 25,676 | $ 45,903 | $ 148 |
Investment Securities - Gross U
Investment Securities - Gross Unrealized Losses - Tabular Disclosure (Details) $ in Thousands | Dec. 31, 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 | 634 | 712 |
Gross Unrealized Losses, Less than twelve months | $ (248) | $ (40,711) |
Fair Value, Less than twelve months | 56,109 | 658,183 |
Gross Unrealized Losses, Twelve months or more | (24,205) | (9,671) |
Fair Value, Twelve months or more | 666,699 | 183,182 |
Total, Gross Unrealized Losses | (24,453) | (50,382) |
Total, Fair Value | $ 722,808 | $ 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 | 14 | 8 |
Gross Unrealized Losses, Less than twelve months | $ (97) | $ (75) |
Fair Value, Less than twelve months | 46,823 | 27,550 |
Fair Value, Twelve months or more | 3,929 | |
Total, Gross Unrealized Losses | (97) | (75) |
Total, Fair Value | $ 50,752 | $ 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 | 321 | 340 |
Gross Unrealized Losses, Less than twelve months | $ (7,108) | |
Fair Value, Less than twelve months | $ 20 | 119,260 |
Gross Unrealized Losses, Twelve months or more | (1,222) | (308) |
Fair Value, Twelve months or more | 94,505 | 3,227 |
Total, Gross Unrealized Losses | (1,222) | (7,416) |
Total, Fair Value | $ 94,525 | $ 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 | 201 | 252 |
Gross Unrealized Losses, Less than twelve months | $ (33) | $ (15,732) |
Fair Value, Less than twelve months | 6,950 | 147,635 |
Gross Unrealized Losses, Twelve months or more | (6,390) | (2,705) |
Fair Value, Twelve months or more | 125,283 | 9,807 |
Total, Gross Unrealized Losses | (6,423) | (18,437) |
Total, Fair Value | $ 132,233 | $ 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 | $ (118) | $ (7,644) |
Fair Value, Less than twelve months | 2,316 | 54,636 |
Gross Unrealized Losses, Twelve months or more | (13,115) | (95) |
Fair Value, Twelve months or more | 49,724 | 405 |
Total, Gross Unrealized Losses | (13,233) | (7,739) |
Total, Fair Value | $ 52,040 | $ 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 | 47 | 60 |
Gross Unrealized Losses, Less than twelve months | $ (10,152) | |
Fair Value, Less than twelve months | 309,102 | |
Gross Unrealized Losses, Twelve months or more | $ (3,478) | (6,563) |
Fair Value, Twelve months or more | 393,258 | 169,743 |
Total, Gross Unrealized Losses | (3,478) | (16,715) |
Total, Fair Value | $ 393,258 | $ 478,845 |
Investment Securities - Estimat
Investment Securities - Estimated Fair Value of Contractual Maturities - Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost [Abstract] | ||
Maturing within one year, Amortized Cost | $ 583 | |
Maturing after one year through five years, Amortized Cost | 40,187 | |
Maturing after five years through ten years, Amortized Cost | 156,541 | |
Maturing after ten years, Amortized Cost | 170,842 | |
Securities due at a single maturity date, Amortized Cost | 1,041,925 | |
Amortized Cost | 1,041,925 | $ 984,579 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value [Abstract] | ||
Maturing within one year, Fair Value | 582 | |
Maturing after one year through five years, Fair Value | 39,916 | |
Maturing after five years through ten years, Fair Value | 143,516 | |
Maturing after ten years, Fair Value | 164,981 | |
Fair Value | 1,019,201 | 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 | 100,745 | |
Amortized Cost | 100,745 | 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 | 99,544 | |
Fair Value | 99,544 | 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 | 573,027 | |
Amortized Cost | 573,027 | 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 | 570,662 | |
Fair Value | $ 570,662 | $ 498,377 |
Investment Securities - Estim_2
Investment Securities - Estimated Fair Value of Contractual Maturities - Held-to-Maturity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 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 | $ 145 | |
Maturing after one year through five years | 2,413 | |
Maturing after five years through ten years | 19,895 | |
Maturing after ten years | 155,325 | |
Securities not due at a single maturity date, Amortized Cost | 142,295 | |
Amortized Cost | 320,073 | $ 336,944 |
Debt Securities, Held-to-Maturity, Maturity, Allocated and Single Maturity Date, Fair Value [Abstract] | ||
Maturing within one year, Fair Value | 145 | |
Maturing after one year through five years, Fair Value | 2,384 | |
Maturing after five years through ten years, Fair Value | 18,350 | |
Maturing after ten years, Fair Value | 162,191 | |
Securities not due at a single maturity date, Fair Value | 131,854 | |
Estimated Fair Value | 314,924 | 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] | ||
Amortized Cost | 142,295 | 157,473 |
Debt Securities, Held-to-Maturity, Maturity, Allocated and Single Maturity Date, Fair Value [Abstract] | ||
Estimated Fair Value | $ 131,854 | $ 147,558 |
Investment Securities - Securit
Investment Securities - Securities Pledged (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale, amortized cost, excluding accrued interest, before allowance for credit loss | $ 1,041,925 | $ 984,579 |
Investment securities available for sale | 1,019,201 | 934,923 |
Asset Pledged as Collateral without Right [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale, amortized cost, excluding accrued interest, before allowance for credit loss | 570,400 | 186,700 |
Investment securities available for sale | $ 551,500 | $ 183,500 |
Investment Securities - Revenue
Investment Securities - Revenue and General Obligation Bonds (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) item security state | Dec. 31, 2022 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||
Investment securities available for sale | $ 1,019,201 | $ 934,923 |
States and Political Subdivisions [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of municipalities and agencies | item | 398 | |
Number of states | state | 36 | |
Fair market value (available-for-sale securities and held-to-maturity securities) | $ 372,371 | 381,007 |
Investment securities available for sale | $ 194,206 | 205,980 |
States and Political Subdivisions [Member] | Various Township Facilities, Charter Township of Washington [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment Portfolio, Securities Issued, Bonds, Number | security | 4 | |
General Obligation Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair market value (available-for-sale securities and held-to-maturity securities) | $ 324,643 | $ 329,160 |
General Obligation Bonds [Member] | City of New York [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment securities available for sale | 5,300 | |
Subordinate Debenture [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment securities available for sale | $ 52,000 | |
Number of subordinated debentures owned | item | 51 |
Investment Securities - Reven_2
Investment Securities - Revenue and General Obligation Bonds by Location (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
States and Political Subdivisions [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | $ 372,313 | $ 397,234 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 372,371 | 381,007 |
General Obligation Bonds [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 324,679 | 342,938 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 324,643 | 329,160 |
General Obligation Bonds [Member] | TEXAS | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 146,215 | 153,209 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 146,589 | 146,667 |
General Obligation Bonds [Member] | CALIFORNIA | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 63,316 | 65,758 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 61,048 | 60,701 |
General Obligation Bonds [Member] | WASHINGTON | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 20,212 | 21,635 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 20,400 | 21,312 |
General Obligation Bonds [Member] | Other [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 94,936 | 102,336 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 96,606 | 100,480 |
Revenue Bonds [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 47,634 | 54,296 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 47,728 | 51,847 |
Revenue Bonds [Member] | TEXAS | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 8,850 | 9,216 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 8,899 | 8,840 |
Revenue Bonds [Member] | CALIFORNIA | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 3,794 | 3,788 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 3,735 | 3,673 |
Revenue Bonds [Member] | WASHINGTON | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 4,035 | 4,083 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 3,591 | 3,490 |
Revenue Bonds [Member] | Other [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 30,955 | 37,209 |
Fair market value (available-for-sale securities and held-to-maturity securities) | $ 31,503 | $ 35,844 |
Investment Securities - Reven_3
Investment Securities - Revenue Bonds by Type (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
States and Political Subdivisions [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | $ 372,313 | $ 397,234 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 372,371 | 381,007 |
Revenue Bonds [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 47,634 | 54,296 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 47,728 | 51,847 |
Revenue Bonds [Member] | Water [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 19,113 | 21,246 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 19,158 | 19,977 |
Revenue Bonds [Member] | Sewer [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 6,323 | 6,560 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 6,380 | 6,405 |
Revenue Bonds [Member] | Lease [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 6,070 | 7,035 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 6,312 | 7,250 |
Revenue Bonds [Member] | Sales Tax [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 4,349 | 4,123 |
Fair market value (available-for-sale securities and held-to-maturity securities) | 4,010 | 3,934 |
Revenue Bonds [Member] | Other Revenue Source [Member] | ||
Marketable Securities [Line Items] | ||
Amortized cost (available-for-sale securities and held-to-maturity securities) | 11,779 | 15,332 |
Fair market value (available-for-sale securities and held-to-maturity securities) | $ 11,868 | $ 14,281 |
Investment Securities - Reali_2
Investment Securities - Realized Gains (Losses) - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) security | Dec. 31, 2021 USD ($) security | |
Gross gains on sales and calls of securities | $ 396 | $ 1,487 | $ 11 |
Realized losses on available-for-sale securities | $ 14,500 | ||
U.S. Government Agencies [Member] | |||
Number Of Securities With Realized Gross Gains | security | 37 | 54 | 21 |
Gross gains on sales and calls of securities | $ 400 | $ 1,500 | $ 10 |
Number Of Securities With Unrealized Gross Losses | security | 0 | 0 | 0 |
Sales value | $ 4,000 | ||
States And Political Subdivisions [Member] | |||
Sales value | 117,900 | ||
Mortgage-Backed Securities | |||
Sales value | $ 74,800 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - General Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 01, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Past Due [Line Items] | ||||
Accrued interest receivable, loans | $ 5,600 | $ 6,400 | ||
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets | ||
Additional interest income | $ 100 | $ 1,000 | $ 400 | |
Weighted average loan-to-value ratio of collateral dependent loans (as a percent) | 54% | 67% | ||
Collateral dependent loans in process of foreclosure | $ 0 | $ 4,000 | ||
Purchased credit deteriorated loans | 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 - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Loans, net | |||
Subtotal | $ 2,090,075 | $ 2,052,940 | |
Deferred loan costs (fees), net | 309 | (123) | |
Allowance for credit losses on loans | (23,500) | (23,060) | $ (14,256) |
Net loans | 2,066,884 | 2,029,757 | |
Other Commercial Loans [Member] | |||
Loans, net | |||
Subtotal | 156,272 | 102,967 | |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | |||
Loans, net | |||
Subtotal | 1,813,819 | 1,880,410 | |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Residential Real Estate [Member] | |||
Loans, net | |||
Subtotal | 412,063 | 437,446 | |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Commercial Real Estate [Member] | |||
Loans, net | |||
Subtotal | 1,328,224 | 1,311,158 | |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Other construction/land [Member] | |||
Loans, net | |||
Subtotal | 6,256 | 18,412 | |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Farmland [Member] | |||
Loans, net | |||
Subtotal | 67,276 | 113,394 | |
Allowance for credit losses on loans | (586) | (458) | (1,202) |
Commercial Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | |||
Loans, net | |||
Allowance for credit losses on loans | (18,554) | (17,732) | (9,052) |
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Mortgage Warehouse Lines [Member] | |||
Loans, net | |||
Subtotal | 116,000 | 65,439 | |
Allowance for credit losses on loans | (174) | (72) | (512) |
Consumer Portfolio Segment [Member] | |||
Loans, net | |||
Subtotal | 3,984 | 4,124 | |
Allowance for credit losses on loans | $ (311) | $ (314) | $ (521) |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Nonaccrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Excluding Accrued Interest, Nonaccrual [Abstract] | ||
Nonaccrual loans, with no allowance for credit loss | $ 528 | $ 19,409 |
Nonaccrual loans, with an allowance for credit loss | 7,457 | 170 |
Nonaccrual loans, total | 7,985 | 19,579 |
Loans past due 90+ accruing | 14 | 940 |
Other Commercial Loans [Member] | ||
Financing Receivable, Excluding Accrued Interest, Nonaccrual [Abstract] | ||
Nonaccrual loans, with no allowance for credit loss | 114 | 2,909 |
Nonaccrual loans, with an allowance for credit loss | 163 | |
Nonaccrual loans, total | 114 | 3,072 |
Loans past due 90+ accruing | 14 | 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 | 414 | 16,500 |
Nonaccrual loans, with an allowance for credit loss | 7,457 | |
Nonaccrual loans, total | 7,871 | 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 | 414 | 688 |
Nonaccrual loans, total | 414 | 688 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Excluding Accrued Interest, Nonaccrual [Abstract] | ||
Nonaccrual loans, with an allowance for credit loss | 7,457 | |
Nonaccrual loans, total | $ 7,457 | |
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 | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable Recorded Investment [Line Items] | ||
Amortized cost | $ 7,985 | $ 19,543 |
Individual reserves | 1,600 | 39 |
Other Commercial Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Amortized cost | 114 | 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 | 7,871 | 16,500 |
Individual reserves | 1,600 | |
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 | 414 | 688 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Commercial Real Estate [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Amortized cost | 7,457 | |
Individual reserves | $ 1,600 | |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Farmland [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Amortized cost | $ 15,812 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Past Due Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Total Loans | $ 2,090,384 | $ 2,052,817 |
Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 2,158 | 21,458 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,973 | 1,850 |
60-89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 171 | 318 |
90 Days Or More Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 14 | 19,290 |
Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 2,088,226 | 2,031,359 |
Other Commercial Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 157,760 | 104,135 |
Other Commercial Loans [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 343 | 3,871 |
Other Commercial Loans [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 158 | 19 |
Other Commercial Loans [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 171 | 134 |
Other Commercial Loans [Member] | 90 Days Or More Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 14 | 3,718 |
Other Commercial Loans [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 157,417 | 100,264 |
Mortgage Warehouse Lines [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 116,000 | 65,439 |
Mortgage Warehouse Lines [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 116,000 | 65,439 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 65,439 | |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,812,534 | 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 | 1,768 | 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 | 1,768 | 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 | 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 | 1,810,766 | 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 | 413,262 | 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 | 1,768 | 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 | 1,768 | 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 | 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 | 411,494 | 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 | 1,325,494 | 1,308,328 |
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 | 1,325,494 | 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 | 157,760 | 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 | 6,268 | 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 | 6,268 | 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 | 67,510 | 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 | 67,510 | 97,582 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 4,090 | 4,232 |
Consumer Portfolio Segment [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 47 | 15 |
Consumer Portfolio Segment [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 47 | 15 |
Consumer Portfolio Segment [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | $ 4,043 | $ 4,217 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Loan Modifications (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Financing receivable modifications post modification recorded investment during period | $ 1,589 | ||
Financing receivable, modified in Period, to total financing receivables, percentage | 0.02% | ||
Consumer Portfolio Segment [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Financing receivable modifications post modification recorded investment during period | 67 | ||
Financing receivable, modified in Period, to total financing receivables, percentage | 0.61% | ||
Weighted-Average Term Extension (years) | 7 years 1 month 9 days | ||
Other Commercial Loans [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Financing receivable, modified in Period, to total financing receivables, percentage | 0.18% | ||
Weighted-Average Term Extension (years) | 4 years 9 months 3 days | ||
Real Estate Sector [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Financing receivable modifications post modification recorded investment during period | $ 1,219 | ||
Real Estate Sector [Member] | Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Financing receivable, modified in Period, to total financing receivables, percentage | 0.01% | ||
Real Estate Sector [Member] | Residential Real Estate [Member] | Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Financing receivable, modified in Period, to total financing receivables, percentage | 0.01% | ||
Weighted-Average Interest Rate Reduction | 1.25% | ||
Weighted-Average Term Extension (years) | 14 years 3 months 18 days | ||
Real Estate Sector [Member] | Commercial Real Estate [Member] | Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Financing receivable, modified in Period, to total financing receivables, percentage | 0.01% | ||
Weighted-Average Interest Rate Reduction | 5.31% | ||
Weighted-Average Term Extension (years) | 15 years 8 months 1 day | ||
Term Extension | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Financing receivable modifications post modification recorded investment during period | $ 302 | ||
Term Extension | Consumer Portfolio Segment [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Financing receivable modifications post modification recorded investment during period | 25 | ||
Term Extension | Other Commercial Loans [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Financing receivable modifications post modification recorded investment during period | 277 | ||
Combination Term Extension Interest Rate Reduction | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Financing receivable modifications post modification recorded investment during period | 174 | ||
Combination Term Extension Interest Rate Reduction | Real Estate Sector [Member] | Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Financing receivable modifications post modification recorded investment during period | 174 | ||
Combination Term Extension Interest Rate Reduction | Real Estate Sector [Member] | Residential Real Estate [Member] | Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Financing receivable modifications post modification recorded investment during period | 26 | ||
Combination Term Extension Interest Rate Reduction | Real Estate Sector [Member] | Commercial Real Estate [Member] | Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Financing receivable modifications post modification recorded investment during period | $ 148 | ||
Restatement Adjustment [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Modifications of new TDRs | $ 0 | ||
Modifications of existing TDRs | 0 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Troubled Debt Restructurings, by Type of Loan Modification (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) loan | |
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Outstanding Recorded Investment | $ 1,590 | |
Financing receivable modifications post modification recorded investment during period | 1,589 | |
Finance receivables modified as TDRs within the previous twelve months | $ 0 | 0 |
Reserve Difference | 116 | |
Troubled Debt Restructurings Term Modifications [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing receivable modifications post modification recorded investment during period | 1,483 | |
Troubled Debt Restructurings Rate And Term Modifications [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing receivable modifications post modification recorded investment during period | 83 | |
Troubled Debt Restructurings Term And Interest Modification [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing receivable modifications post modification recorded investment during period | 23 | |
Real Estate Sector [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Outstanding Recorded Investment | 1,220 | |
Financing receivable modifications post modification recorded investment during period | 1,219 | |
Reserve Difference | (1) | |
Real Estate Sector [Member] | Troubled Debt Restructurings Term Modifications [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing receivable modifications post modification recorded investment during period | 1,136 | |
Real Estate Sector [Member] | Troubled Debt Restructurings Rate And Term Modifications [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing receivable modifications post modification recorded investment during period | $ 83 | |
Real Estate Sector [Member] | Multi-Family Residential [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 2 | |
Pre-Modification Outstanding Recorded Investment | $ 1,083 | |
Financing receivable modifications post modification recorded investment during period | $ 1,083 | |
Real Estate Sector [Member] | Commercial Real Estate Non Owner Occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 137 | |
Financing receivable modifications post modification recorded investment during period | 136 | |
Reserve Difference | (1) | |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Multi-Family Residential [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing receivable modifications post modification recorded investment during period | 1,083 | |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Multi-Family Residential [Member] | Troubled Debt Restructurings Term Modifications [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing receivable modifications post modification recorded investment during period | 1,000 | |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Multi-Family Residential [Member] | Troubled Debt Restructurings Rate And Term Modifications [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing receivable modifications post modification recorded investment during period | 83 | |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Commercial Real Estate Non Owner Occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing receivable modifications post modification recorded investment during period | 136 | |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Commercial Real Estate Non Owner Occupied [Member] | Troubled Debt Restructurings Term Modifications [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing receivable modifications post modification recorded investment during period | $ 136 | |
Agricultural Portfolio Segment [Member] | Agricultural Sector [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 118 | |
Financing receivable modifications post modification recorded investment during period | 118 | |
Reserve Difference | 116 | |
Agricultural Portfolio Segment [Member] | Agricultural Sector [Member] | Troubled Debt Restructurings Term Modifications [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing receivable modifications post modification recorded investment during period | $ 118 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 185 | |
Financing receivable modifications post modification recorded investment during period | 185 | |
Reserve Difference | (1) | |
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Troubled Debt Restructurings Term Modifications [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing receivable modifications post modification recorded investment during period | $ 185 | |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 3 | |
Pre-Modification Outstanding Recorded Investment | $ 67 | |
Financing receivable modifications post modification recorded investment during period | 67 | |
Reserve Difference | 2 | |
Consumer Portfolio Segment [Member] | Troubled Debt Restructurings Term Modifications [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing receivable modifications post modification recorded investment during period | 44 | |
Consumer Portfolio Segment [Member] | Troubled Debt Restructurings Term And Interest Modification [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing receivable modifications post modification recorded investment during period | $ 23 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - Credit Quality Classifications (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | $ 139,225 | $ 731,138 |
2022 | 398,142 | 399,934 |
2021 | 303,289 | 1,182,393 |
2020 | 561,128 | 132,361 |
2019 | 62,980 | 237,201 |
Prior | 359,350 | 616,060 |
Revolving Loans Amortized Cost | 258,087 | 189,029 |
Revolving Loans Converted to Term Loans | 8,183 | 4,981 |
Loans, amortized cost basis | 2,090,384 | 2,052,817 |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
Gross Charge-Offs, 2023 | 2,145 | |
Gross Charge-Offs, 2022 | 45 | |
Gross Charge-Offs, 2021 | 250 | |
Gross Charge-Offs, 2020 | 2,266 | |
Gross Charge-Offs, 2019 | 81 | |
Gross Charge-Offs, Prior | 1,345 | |
Gross Charge-Offs, Revolving Loans Amortized Cost | 489 | |
Gross Charge-Offs, Total | 6,621 | 12,834 |
Gross Charge-Offs, Total | 6,621 | |
Other Commercial Loans [Member] | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Loans, amortized cost basis | 157,760 | 104,135 |
Mortgage Warehouse Lines [Member] | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Loans, amortized cost basis | 116,000 | 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 | 116,000 | |
Loans, amortized cost basis | 116,000 | |
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 | 116,000 | |
Loans, amortized cost basis | 116,000 | |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Revolving Loans Amortized Cost | 65,439 | |
Loans, amortized cost basis | 65,439 | |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Revolving Loans Amortized Cost | 65,439 | |
Loans, amortized cost basis | 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 | 1,812,534 | 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] | ||
2022 | 104,141 | |
2021 | 230,090 | |
2020 | 7,611 | |
2019 | 1,979 | |
Prior | 53,731 | |
Revolving Loans Amortized Cost | 12,932 | |
Revolving Loans Converted to Term Loans | 2,778 | |
Loans, amortized cost basis | 413,262 | |
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 | 104,141 | 239,044 |
2021 | 228,849 | 7,814 |
2020 | 7,611 | 2,066 |
2019 | 1,979 | 10,723 |
Prior | 50,295 | 49,282 |
Revolving Loans Amortized Cost | 12,797 | 15,970 |
Revolving Loans Converted to Term Loans | 2,302 | 1,825 |
Loans, amortized cost basis | 407,974 | 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] | ||
2021 | 1,241 | |
2019 | 89 | |
Prior | 2,942 | 1,584 |
Revolving Loans Amortized Cost | 20 | 36 |
Revolving Loans Converted to Term Loans | 284 | 970 |
Loans, amortized cost basis | 4,487 | 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 | 494 | 1,201 |
Revolving Loans Amortized Cost | 115 | |
Revolving Loans Converted to Term Loans | 192 | 352 |
Loans, amortized cost basis | 801 | 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 | 112,402 | 277,024 |
2022 | 275,626 | 62,764 |
2021 | 58,310 | 562,229 |
2020 | 536,879 | 59,487 |
2019 | 54,110 | 89,739 |
Prior | 265,238 | 234,927 |
Revolving Loans Amortized Cost | 22,929 | 22,158 |
Loans, amortized cost basis | 1,325,494 | 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 | 112,254 | 276,728 |
2022 | 275,626 | 62,764 |
2021 | 58,310 | 474,494 |
2020 | 475,353 | 56,419 |
2019 | 51,100 | 82,595 |
Prior | 251,163 | 221,447 |
Revolving Loans Amortized Cost | 22,929 | 22,158 |
Loans, amortized cost basis | 1,246,735 | 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 | 148 | 296 |
2021 | 73,002 | |
2020 | 39,654 | 3,068 |
2019 | 3,010 | |
Prior | 8,489 | 7,299 |
Loans, amortized cost basis | 51,301 | 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 | 21,872 | |
2019 | 7,144 | |
Prior | 5,586 | 6,181 |
Loans, amortized cost basis | 27,458 | 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] | ||
2023 | 352 | |
2021 | 14,966 | |
2020 | 3,646 | 734 |
2019 | 638 | 955 |
Prior | 1,632 | 1,010 |
Revolving Loans Amortized Cost | 693 | |
Loans, amortized cost basis | 6,268 | 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] | ||
2023 | 352 | |
2021 | 14,896 | |
2020 | 3,646 | 734 |
2019 | 638 | 955 |
Prior | 1,632 | 1,010 |
Revolving Loans Amortized Cost | 693 | |
Loans, amortized cost basis | 6,268 | 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 | 6,731 | 30,346 |
2022 | 11,645 | 12,941 |
2021 | 11,793 | 4,504 |
2020 | 3,490 | 1,819 |
2019 | 1,652 | 19,880 |
Prior | 29,055 | 39,708 |
Revolving Loans Amortized Cost | 2,750 | 3,976 |
Revolving Loans Converted to Term Loans | 394 | 420 |
Loans, amortized cost basis | 67,510 | 113,594 |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
Gross Charge-Offs, Total | 1,277 | 9,205 |
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 | 6,731 | 30,346 |
2022 | 11,645 | 12,941 |
2021 | 11,793 | 4,504 |
2020 | 2,650 | 1,819 |
2019 | 1,652 | 9,418 |
Prior | 11,608 | 24,175 |
Revolving Loans Amortized Cost | 2,750 | 3,976 |
Revolving Loans Converted to Term Loans | 394 | 420 |
Loans, amortized cost basis | 49,223 | 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] | ||
2020 | 840 | |
2019 | 7,045 | |
Prior | 10,471 | 3,042 |
Loans, amortized cost basis | 11,311 | 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 | 6,976 | 12,491 |
Loans, amortized cost basis | 6,976 | 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 | 18,319 | 7,479 |
2022 | 6,501 | 9,277 |
2021 | 2,994 | 11,008 |
2020 | 9,405 | 6,072 |
2019 | 4,534 | 5,206 |
Prior | 9,482 | 12,328 |
Revolving Loans Amortized Cost | 101,514 | 51,771 |
Revolving Loans Converted to Term Loans | 5,011 | 994 |
Loans, amortized cost basis | 157,760 | 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 | 18,319 | 7,478 |
2022 | 6,501 | 6,350 |
2021 | 2,666 | 7,913 |
2020 | 6,622 | 6,028 |
2019 | 4,534 | 5,178 |
Prior | 9,354 | 10,579 |
Revolving Loans Amortized Cost | 101,163 | 47,998 |
Revolving Loans Converted to Term Loans | 1,171 | 167 |
Loans, amortized cost basis | 150,330 | 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 | 273 | 3,067 |
2020 | 2,783 | 44 |
Prior | 128 | 1,616 |
Revolving Loans Amortized Cost | 143 | 3,773 |
Revolving Loans Converted to Term Loans | 3,748 | 660 |
Loans, amortized cost basis | 7,075 | 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 | 55 | 28 |
2019 | 28 | |
Prior | 133 | |
Revolving Loans Amortized Cost | 208 | |
Revolving Loans Converted to Term Loans | 92 | 167 |
Loans, amortized cost basis | 355 | 3,155 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Real Estate [Member] | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 107,744 | |
2022 | 239,044 | |
2021 | 7,814 | |
2020 | 2,066 | |
2019 | 10,843 | |
Prior | 52,067 | |
Revolving Loans Amortized Cost | 16,006 | |
Revolving Loans Converted to Term Loans | 3,147 | |
Loans, amortized cost basis | 438,731 | |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 1,421 | 1,175 |
2022 | 229 | 203 |
2021 | 102 | 173 |
2020 | 97 | 143 |
2019 | 67 | 4 |
Prior | 212 | 375 |
Revolving Loans Amortized Cost | 1,962 | 2,159 |
Loans, amortized cost basis | 4,090 | 4,232 |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
Gross Charge-Offs, Total | 1,728 | 1,396 |
Consumer Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 1,366 | 1,162 |
2022 | 229 | 203 |
2021 | 102 | 138 |
2020 | 82 | 127 |
2019 | 67 | 4 |
Prior | 177 | 375 |
Revolving Loans Amortized Cost | 1,949 | 2,148 |
Loans, amortized cost basis | 3,972 | 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 | 15 | 16 |
Prior | 35 | |
Revolving Loans Amortized Cost | 13 | 11 |
Loans, amortized cost basis | 63 | 67 |
Consumer Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
2023 | 55 | 8 |
Loans, amortized cost basis | $ 55 | $ 8 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses - Allowance for Credit Losses - Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 23,060 | $ 14,256 |
Charge-offs | (6,621) | (12,834) |
Recoveries | 3,003 | 1,286 |
Provision for credit losses | 4,058 | 10,898 |
Ending balance | 23,500 | 23,060 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Impact of adopting ASC 326 | 9,454 | |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | 1-4 Family Residential Construction [Member] | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 3,251 | 1,909 |
Charge-offs | (30) | |
Recoveries | 205 | 99 |
Provision for credit losses | (699) | 632 |
Ending balance | 2,727 | 3,251 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | 1-4 Family Residential Construction [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Impact of adopting ASC 326 | 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 | 458 | 1,202 |
Charge-offs | (1,277) | (9,205) |
Recoveries | 1,370 | |
Provision for credit losses | 35 | 8,941 |
Ending balance | 586 | 458 |
Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Farmland [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Impact of adopting ASC 326 | (480) | |
Commercial Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 17,732 | 9,052 |
Charge-offs | (2,266) | (1,911) |
Recoveries | 17 | 260 |
Provision for credit losses | 3,071 | 703 |
Ending balance | 18,554 | 17,732 |
Commercial Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Impact of adopting ASC 326 | 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 | 1,233 | 1,060 |
Charge-offs | (1,320) | (322) |
Recoveries | 425 | 163 |
Provision for credit losses | 810 | (26) |
Ending balance | 1,148 | 1,233 |
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Commercial and Industrial Loans and Leases [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Impact of adopting ASC 326 | 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 | 72 | 512 |
Provision for credit losses | 102 | (19) |
Ending balance | 174 | 72 |
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Mortgage Warehouse Lines [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Impact of adopting ASC 326 | (421) | |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 314 | 521 |
Charge-offs | (1,728) | (1,396) |
Recoveries | 986 | 764 |
Provision for credit losses | 739 | 667 |
Ending balance | $ 311 | 314 |
Consumer Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Impact of adopting ASC 326 | $ (242) |
Premises and Equipment - Premis
Premises and Equipment - Premises and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 47,169 | $ 59,673 |
Less accumulated depreciation and amortization | 30,262 | 37,195 |
Total premises and equipment, net | 16,907 | 22,478 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 2,694 | 4,823 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 11,919 | 21,170 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 17,857 | 18,948 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 14,699 | $ 14,732 |
Premises and Equipment - Deprec
Premises and Equipment - Depreciation and Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Depreciation, Depletion and Amortization [Abstract] | |||
Depreciation and amortization | $ 2.2 | $ 2.4 | $ 3.1 |
Operating Leases - General Info
Operating Leases - General Information (Details) | Dec. 31, 2023 Office store |
Lessee Disclosure [Abstract] | |
Number of branch locations | 28 |
Number of ATM locations | 4 |
Number of administration offices | Office | 1 |
Operating Leases - Lease Expens
Operating Leases - Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income and Expenses, Lessee [Abstract] | |||
Operating lease, expense | $ 2.3 | $ 2.2 | $ 2.2 |
Operating Leases - Assets and L
Operating Leases - Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets and Liabilities, Lessee [Abstract] | ||
Right-of-use assets | $ 25,800 | $ 6,900 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position | Other assets | Other assets |
Net lease liabilities | $ 21,946 | $ 7,300 |
Operating Lease, Liability, Statement of Financial Position | Other liabilities | Other liabilities |
Operating Leases - Lease Cost (
Operating Leases - Lease Cost (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Lessee Disclosure [Abstract] | |||
Number of transactions | item | 11 | ||
Sale leaseback transaction, book value | $ 4,800 | ||
Gain on sale | 15,300 | ||
Operating lease liability, sale leaseback transaction | 13,755 | $ 0 | |
Right of use of assets, sale leaseback transaction | $ 18,000 | ||
Average life | 18 years | ||
Weighted average lease term (in years) | 13 years 3 months 18 days | 5 years 9 months 18 days | |
Weighted average discount rate (as a percent) | 8.40% | 4.70% | |
Lease liabilities from new right-of-use assets obtained during the year | $ 20,700 | $ 3,300 | |
Variable lease costs | 200 | 30 | $ 8 |
Cash paid on operating leases | $ 2,300 | $ 2,300 |
Operating Leases - Schedule of
Operating Leases - Schedule of Future Undiscounted Lease Payments for Operating Leases (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 3,625 |
2025 | 3,330 |
2026 | 3,019 |
2027 | 2,907 |
2028 | 2,375 |
Thereafter | 24,283 |
Total undiscounted lease payments | $ 39,539 |
Operating Leases - Lease Liabil
Operating Leases - Lease Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Lease Liabilities, Gross Difference, Amount [Abstract] | ||
Total undiscounted lease payments | $ 39,539 | |
Less: imputed interest | (17,593) | |
Net lease liabilities | $ 21,946 | $ 7,300 |
Operating Leases - Renewal Term
Operating Leases - Renewal Terms (Details) | Dec. 31, 2023 |
Minimum [Member] | |
Lessee, Operating Lease, Description [Abstract] | |
Renewal term | 1 year |
Maximum [Member] | |
Lessee, Operating Lease, Description [Abstract] | |
Renewal term | 10 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in Carrying Value of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 27,357 | $ 27,357 | $ 27,400 |
Acquired goodwill | 0 | 0 | 0 |
Impairment | $ 0 | $ 0 | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Goodwill Impairment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Asset Impairment [Abstract] | |||
Impairment | $ 0 | $ 0 | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Acquired Intangible Assets (Details) - Core Deposits [Member] - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 8,401 | $ 8,401 |
Accumulated Amortization | $ 7,002 | $ 6,126 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Amortization [Abstract] | |||
Aggregate amortization expenses | $ 876 | $ 1,000 | $ 1,032 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Estimated Amortization Expense (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2024 | $ 781 |
2025 | 566 |
2026 | 52 |
Total | $ 1,399 |
Other Assets - Tabular Disclosu
Other Assets - Tabular Disclosure (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Assets [Abstract] | ||
Accrued interest receivable | $ 20,347 | $ 18,354 |
Deferred tax assets | 28,682 | 34,984 |
Investment in qualified affordable housing projects | 14,390 | 10,051 |
Investment in limited partnerships | 4,359 | 4,359 |
Investment in SBA loan fund | 25,000 | 25,000 |
Federal Home Loan Bank stock, at cost | 14,657 | 12,729 |
Other | 40,385 | 20,142 |
Other Assets, Total | $ 147,820 | $ 125,619 |
Other Assets - Additional Infor
Other Assets - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Assets [Abstract] | ||
Federal Home Loan Bank stock, at cost | $ 14,657 | $ 12,729 |
Deposits - Interest Bearing Dep
Deposits - Interest Bearing Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Interest-bearing Deposit Liabilities, by Component [Abstract] | ||
Time, $250,000 or more | $ 162.2 | $ 97.8 |
Deposits - Maturities of Times
Deposits - Maturities of Times Deposits (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Time Deposits, Fiscal Year Maturity [Abstract] | |
2024 | $ 568,685 |
2025 | 17,738 |
2026 | 35,897 |
2027 | 41,101 |
2028 | 25,678 |
Thereafter | 1,008 |
Total | $ 690,107 |
Deposits - Interest Expense Rec
Deposits - Interest Expense Recognized on Interest Bearing Deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest Expense, Deposits [Abstract] | |||
Interest bearing demand deposits | $ 1,429 | $ 485 | $ 331 |
NOW | 289 | 322 | 444 |
Savings | 269 | 278 | 240 |
Money market | 710 | 95 | 111 |
Time deposits | 23,214 | 4,914 | 1,039 |
Brokered Deposits | 5,643 | 725 | 225 |
Interest Expense, Deposits, Total | $ 31,554 | $ 6,819 | $ 2,390 |
Other Borrowing Arrangements -
Other Borrowing Arrangements - Short-term borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Short-term Debt [Line Items] | ||
Average balance outstanding | $ 315,731 | $ 158,095 |
Amount | 387,621 | 328,169 |
Maximum month-end balance during the year | 326,121 | 337,014 |
Short-term FHLB advance [Member] | ||
Short-term Debt [Line Items] | ||
Amount | 125,000 | |
Long-term FHLB advance [Member] | ||
Short-term Debt [Line Items] | ||
Amount | 80,000 | |
Repurchase Agreements [Member] | ||
Short-term Debt [Line Items] | ||
Average balance outstanding | 90,294 | 110,387 |
Amount | $ 107,121 | $ 109,169 |
Average interest rate during the year | 0.27% | 0.29% |
Maximum month-end balance during the year | $ 107,121 | $ 118,014 |
Weighted average interest rate | 0.27% | 0.29% |
Short-term Debt, Excluding Repurchase Agreements [Member] | ||
Short-term Debt [Line Items] | ||
Average balance outstanding | $ 225,437 | $ 47,708 |
Amount | $ 280,500 | $ 219,000 |
Average interest rate during the year | 5.34% | 3.67% |
Maximum month-end balance during the year | $ 219,000 | $ 219,000 |
Weighted average interest rate | 5.34% | 3.67% |
Other Borrowing Arrangements _2
Other Borrowing Arrangements - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 387,621 | $ 328,169 |
Short-term FHLB advance | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 125,000 | |
Short-term Debt, Excluding Repurchase Agreements [Member] | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 280,500 | 219,000 |
Federal Home Loan Bank Advances [Member] | ||
Short-term Debt [Line Items] | ||
First mortgage loans under a blanket lien arrangement collateralized | 1,300,000 | |
Maximum borrowing capacity | 930,100 | |
Remaining borrowing capacity | 485,600 | |
Short-term borrowings | 25,500 | 94,000 |
Federal Reserve Bank Advances [Member] | ||
Short-term Debt [Line Items] | ||
First mortgage loans under a blanket lien arrangement collateralized | 204,400 | |
Maximum borrowing capacity | 392,000 | |
Short-term borrowings | 0 | 0 |
Unsecured Debt [Member] | Unsecured Lines of Credit, Correspondent Banks [Member] | Line of Credit [Member] | ||
Short-term Debt [Line Items] | ||
Maximum borrowing capacity | 382,000 | 362,000 |
Short-term borrowings | $ 130,000 | $ 125,000 |
Other Borrowing Arrangements _3
Other Borrowing Arrangements - Long-term advances (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Long-term FHLB advance | |
Short-term Debt [Line Items] | |
Amount | $ 80,000 |
Federal Home Loan Bank Advances Maturing 2026, 3.96% Fixed Interest rate | |
Short-term Debt [Line Items] | |
Amount | $ 25,000 |
Fixed rate | 3.96% |
Weighted average interest rate | 3.96% |
Federal Home Loan Bank Advances Maturing 2028, 3.78% Fixed Interest Rate | |
Short-term Debt [Line Items] | |
Amount | $ 15,000 |
Fixed rate | 3.78% |
Weighted average interest rate | 3.78% |
Federal Home Loan Bank Advances Maturing 2026, 4.04% Fixed Interest Rate | |
Short-term Debt [Line Items] | |
Amount | $ 20,000 |
Fixed rate | 4.04% |
Weighted average interest rate | 4.04% |
Federal Home Loan Bank Advances Maturing 2028, 3.81% Fixed Interest Rate | |
Short-term Debt [Line Items] | |
Amount | $ 20,000 |
Fixed rate | 3.81% |
Weighted average interest rate | 3.81% |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Jun. 30, 2006 | Mar. 31, 2004 | Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||||
Principal | $ 50,000 | $ 50,000 | |||
Unamortized Debt Issuance Costs | 696 | 786 | |||
Subordinated Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal | 50,000 | 50,000 | |||
Unamortized Debt Issuance Costs | $ 696 | $ 786 | |||
Fixed interest rate | 3.25% | ||||
Basis Spread | 1.50% | 1.40% | 2.75% | ||
Subordinated Debt [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis Spread | 253.50% |
Subordinated Debentures (Detail
Subordinated Debentures (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Jun. 30, 2006 | Mar. 31, 2004 | Dec. 31, 2023 | Dec. 31, 2021 | |
Subordinated Borrowings [Line Items] | |||||
Proceeds from issuance of subordinated debt | $ 49,141,000 | ||||
Subordinated Debt [Member] | |||||
Subordinated Borrowings [Line Items] | |||||
Proceeds from issuance of subordinated debt | $ 7,217,000 | $ 15,464,000 | $ 15,464,000 | ||
Subordinated Borrowing, Due Date | Dec. 15, 2037 | Sep. 23, 2036 | Mar. 17, 2034 | ||
Subordinated Borrowing, Interest Rate | 7.15% | 7.02% | 8.39% | ||
Debt instrument, basis spread adjustment on variable rate | 0.26161% | 0.26261% | 0.26161% | ||
Debt instrument, basis spread on variable rate | 1.50% | 1.40% | 2.75% | ||
Statutory Trust [Member] | |||||
Subordinated Borrowings [Line Items] | |||||
Trust Preferred Securities Qualified As Tier One Capital | $ 35,700,000 | ||||
Sierra Statutory Trust II [Member] | |||||
Subordinated Borrowings [Line Items] | |||||
Floating Rate Capital Trust Pass Through Securities Issued During Period | 15,000 | 15,000 | |||
Floating rate capital trust pass through securities liquidation value per securities | $ 1,000 | $ 1,000 | |||
Proceeds from Issuance of Mandatory Redeemable Capital Securities | $ 15,000,000 | $ 15,000,000 | |||
Payment Deferral Period, Debt | 5 years | ||||
Coast Bancorp Statutory Trust II [Member] | |||||
Subordinated Borrowings [Line Items] | |||||
Floating Rate Capital Trust Pass Through Securities Issued During Period | 7,000 | ||||
Floating rate capital trust pass through securities liquidation value per securities | $ 1,000 | ||||
Proceeds from Issuance of Mandatory Redeemable Capital Securities | $ 7,000,000 | ||||
Payment Deferral Period, Debt | 5 years |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||||||||||
Federal (Current) | $ 8,470 | $ 6,071 | $ 8,186 | ||||||||
Federal (Deferred) | (1,531) | 233 | 135 | ||||||||
Total federal | 6,939 | 6,304 | 8,321 | ||||||||
State (Current) | 5,493 | 4,874 | 5,916 | ||||||||
State (Deferred) | (812) | 78 | (50) | ||||||||
Total state | 4,681 | 4,952 | 5,866 | ||||||||
Total tax provision | $ 1,964 | $ 3,435 | $ 3,513 | $ 2,709 | $ 1,901 | $ 3,334 | $ 3,288 | $ 2,733 | $ 11,620 | $ 11,256 | $ 14,187 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Allowance for credit losses on loans | $ 6,947 | $ 6,817 |
Deferred compensation | 4,440 | 4,158 |
Accrued reserves | 1,131 | 1,022 |
Non-accrual loans | 76 | 241 |
Lease liability | 6,488 | 2,147 |
Loan fair value adjustment | 172 | 245 |
Net operating losses | 1,178 | 1,370 |
State income tax deduction | 1,176 | 1,005 |
Other | 4,982 | 1,211 |
Unrealized losses on securities available-for-sale | 15,101 | 23,746 |
Total deferred tax assets | 41,691 | 41,962 |
Deferred tax liabilities: | ||
Deferred loan costs | (1,304) | (1,070) |
Right-of-use asset | (7,604) | (2,034) |
TRUPS accretion | (735) | (788) |
FMV equity securities | (620) | (706) |
Prepaids | (791) | (639) |
Other | (689) | (517) |
Intangibles | (130) | (337) |
Premises and equipment | (1,136) | (887) |
Total deferred tax liabilities | (13,009) | (6,978) |
Net deferred tax assets | 28,682 | $ 34,984 |
Deferred tax assets, valuation allowance | $ 0 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income tax expense at federal statutory rate | $ 9,758 | $ 9,432 | $ 12,012 | ||||||||
State franchise tax expense, net of federal tax effect | 3,698 | 3,912 | 4,634 | ||||||||
Tax exempt municipal income | (2,291) | (1,849) | (1,306) | ||||||||
Affordable housing tax credits | (16) | (530) | (524) | ||||||||
Excess tax benefit of stock-based compensation | 22 | (50) | (109) | ||||||||
Cash surrender value - life insurance | (371) | 209 | (556) | ||||||||
Other | 788 | 132 | 36 | ||||||||
Total tax provision | $ 1,964 | $ 3,435 | $ 3,513 | $ 2,709 | $ 1,901 | $ 3,334 | $ 3,288 | $ 2,733 | $ 11,620 | $ 11,256 | $ 14,187 |
Effective tax rate | 25.01% | 25.06% | 24.80% |
Income Taxes - Open Tax Years (
Income Taxes - Open Tax Years (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Domestic Tax Authority [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2022 2021 2020 |
State and Local Jurisdiction [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2022 2021 2020 2019 |
Income Taxes - Net Operating Lo
Income Taxes - Net Operating Loss Carry Forwards (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Domestic Tax Authority [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | $ 3,400 |
State and Local Jurisdiction [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | $ 5,400 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Recorded interest or penalties related to uncertain tax positions | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Letter of Credit (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Loss Contingencies [Line Items] | |
Letter of credit | $ 127.9 |
Commitments to Extend Credit [Member] | |
Loss Contingencies [Line Items] | |
Fair Value Disclosure Off-balance Sheet Risks Amount Asset | 125 |
Standby Letters of Credit [Member] | |
Loss Contingencies [Line Items] | |
Fair Value Disclosure Off-balance Sheet Risks Amount Asset | $ 2.9 |
Commitments and Contingencies_2
Commitments and Contingencies - Financial Instruments Representing Off-balance Sheet Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Standby Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Liability | $ 5,040 | $ 6,036 |
Fixed Rate Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Liability | 84,646 | 94,248 |
Variable Rate Commitments To Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Liability | $ 397,408 | $ 795,269 |
Commitments and Contingencies_3
Commitments and Contingencies - Concentration in Real Estate Lending (Details) - Loans and Leases Receivable [Member] - Credit Concentration Risk [Member] - Commercial, Residential, and Farm Land Real Estate Portfolio Segment [Member] - Real Estate Sector [Member] | 12 Months Ended |
Dec. 31, 2023 | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 87% |
Commercial Real Estate [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 74% |
Residential Real Estate [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 23% |
Farm Land Real Estate [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 4% |
Shareholders' Equity - General
Shareholders' Equity - General Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class Of Stock [Line Items] | ||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 1,000,000 | |||
Options to purchase (in shares) | 343,000 | 352,000 | 416,000 | 495,000 |
Stock Issued During Period Shares Stock Option Exercised | 30,000 | 33,000 | ||
Pre-tax charge | $ 100 | $ 100 | $ 100 | |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 20 | $ 30 | $ 30 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 100 | |||
Weighted average period | 1 year | |||
Employee Stock Option [Member] | ||||
Class Of Stock [Line Items] | ||||
Shares of common stock were not considered in computing diluted earnings per common share | 298,986 | 293,586 | 337,004 | |
2007 Stock Option Plan [Member] | ||||
Class Of Stock [Line Items] | ||||
Options to purchase (in shares) | 59,800 | |||
Percentage of the fair market value | 100% | |||
2017 Plan [Member] | ||||
Class Of Stock [Line Items] | ||||
Options to purchase (in shares) | 210,800 | |||
Percentage of the fair market value | 100% | |||
Stock Issued During Period Shares Stock Option Exercised | 0 | 29,640 | 25,452 | |
Stock Issued During Period, Value, Stock Options Exercised | $ 300 | $ 300 | ||
Deferred Tax Expense from Stock Options Exercised | $ 100 | $ 100 | ||
2022 Plan [Member] | ||||
Class Of Stock [Line Items] | ||||
Stock Repurchased During Period, Shares | 481,094 | |||
2023 Plan [Member] | ||||
Class Of Stock [Line Items] | ||||
Stock Repurchased During Period, Shares | 0 | |||
Number of shares authorized | 360,000 | |||
Number of shares remained available for grant | 292,581 |
Shareholders' Equity - Calculat
Shareholders' Equity - Calculation of Numerator and Denominator in Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basic Earnings Per Share | |||||||||||
Net income | $ 34,844 | $ 33,659 | $ 43,012 | ||||||||
Weighted average shares outstanding | 14,706,141 | 14,955,756 | 15,241,957 | ||||||||
Basic earnings per share (in dollars per share) | $ 2.37 | $ 2.25 | $ 2.82 | ||||||||
Diluted Earnings Per Share | |||||||||||
Net income | $ 34,844 | $ 33,659 | $ 43,012 | ||||||||
Weighted average shares outstanding | 14,706,141 | 14,955,756 | 15,241,957 | ||||||||
Effect of dilutive equity awards | 31,729 | 66,999 | 111,488 | ||||||||
Weighted average shares outstanding | 14,737,870 | 15,022,755 | 15,353,445 | ||||||||
Diluted earnings per share (in dollars per share) | $ 0.43 | $ 0.68 | $ 0.67 | $ 0.58 | $ 0.47 | $ 0.66 | $ 0.62 | $ 0.49 | $ 2.36 | $ 2.24 | $ 2.80 |
Shareholders' Equity - Stock Op
Shareholders' Equity - Stock Options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding (in shares) | 352 | 416 | 495 |
Exercised or released (in shares) | (30) | (33) | |
Canceled (in shares) | (9) | (32) | (45) |
Expired (in shares) | (2) | (1) | |
Outstanding (in shares) | 343 | 352 | 416 |
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 | $ 23.67 |
Exercised or released (in dollars per share) | 10.59 | 14.64 | |
Canceled (in dollars per share) | 26.56 | 27.32 | 26.36 |
Expired (in dollars per share) | 10.21 | 10.58 | |
Outstanding (in dollars per share) | $ 25.02 | $ 25.06 | $ 24.15 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Aggregate intrinsic value | $ 447 | ||
Exercisable, shares (in shares) | 343 | 311 | 355 |
Exercisable, weighted average exercise price (in dollars per share) | $ 25.02 | $ 24.78 | $ 23.62 |
Exercisable, aggregate intrinsic value | $ 447 | ||
Weighted average remaining contractual term | 5 years 2 months 12 days | ||
Exercisable, weighted average remaining contractual term | 5 years |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Options Indexed to Issuer Equity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | ||
Total intrinsic value of stock options exercised | $ 329 | $ 346 |
Total fair value of stock options vested | $ 103 | $ 418 |
Shareholders' Equity - Restrict
Shareholders' Equity - Restricted Stock Grants (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class Of Stock [Line Items] | |||
Compensation expense | $ 100 | $ 100 | $ 100 |
Recognized income tax benefit | $ 20 | 30 | 30 |
Weighted average period of amortized cost | 1 year | ||
Restricted Stock [Member] | |||
Class Of Stock [Line Items] | |||
Compensation expense | $ 1,700 | 1,200 | 900 |
Recognized income tax benefit | 400 | 400 | 300 |
Unamortized compensation and directors' cost | $ 3,300 | ||
Weighted average period of amortized cost | 2 years 3 months 18 days | ||
Total fair value of shares vested | $ 1,200 | $ 1,300 | $ 700 |
Shares | |||
Nonvested shares (in shares) | 187,000 | ||
Granted (in shares) | 118,000 | ||
Vested (in shares) | (61,000) | ||
Forfeited (in shares) | (6,000) | ||
Nonvested shares (in shares) | 238,000 | 187,000 | |
Weighted Average Grant-Date Fair Value | |||
Nonvested shares (in dollars per share) | $ 21.42 | ||
Granted (in dollars per share) | 19.51 | ||
Vested (in dollars per share) | 21.46 | ||
Forfeited (in dollars per share) | 23.02 | ||
Nonvested shares (in dollars per share) | $ 20.30 | $ 21.42 | |
Restricted Stock [Member] | Employees And Directors [Member] | |||
Class Of Stock [Line Items] | |||
Granted (in shares) | 129,904 | ||
Restricted Stock [Member] | Employees And Directors [Member] | 2017 Plan [Member] | |||
Class Of Stock [Line Items] | |||
Granted (in shares) | 29,064 | ||
Restricted Stock [Member] | Employees And Directors [Member] | 2023 Plan [Member] | |||
Class Of Stock [Line Items] | |||
Granted (in shares) | 100,840 |
Regulatory Matters - Tabular Di
Regulatory Matters - Tabular Disclosure (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Tier One Leverage Capital [Abstract] | ||
Capital amount, actual | $ 384,936 | $ 371,980 |
Capital amount, to be well capitalized | $ 335,700 | $ 325,031 |
Banking Regulation, Leverage Ratio [Abstract] | ||
Ratio, actual (as a percent) | 0.1032 | 0.1030 |
Ratio, to be well capitalized (as a percent) | 0.0900 | 0.0900 |
Subsidiaries [Member] | ||
Tier One Leverage Capital [Abstract] | ||
Capital amount, actual | $ 421,041 | $ 396,856 |
Capital amount, to be well capitalized | $ 335,639 | $ 324,996 |
Banking Regulation, Leverage Ratio [Abstract] | ||
Ratio, actual (as a percent) | 0.1129 | 0.1099 |
Ratio, to be well capitalized (as a percent) | 0.0900 | 0.0900 |
Regulatory Matters - Dividend R
Regulatory Matters - Dividend Restrictions (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |
Regulatory Restrictions on Payment of Dividends | If a California corporation does not have sufficient retained earnings available for the proposed dividend, it may still pay a dividend to its shareholders if immediately after the dividend the value of the company’s assets would equal or exceed the sum of its total liabilities plus any preferred dividend arrears amount. |
Amount Available for Dividend Distribution without Affecting Capital Adequacy Requirements | $ 75.5 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 01, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan annual benefit after retirement or death period | 15 years | |||
Pension and other postretirement benefit contributions, Total | $ 4.7 | $ 4.9 | ||
Pension and other postretirement benefit expense, Total | 0.3 | 0.3 | $ 0.4 | |
Defined benefit plan, Benefits paid | $ 0.5 | $ 0.4 | $ 0.4 | |
Percentage Of Salary Deferred For Tax Deferred Savings Plan Maximum | 15% | |||
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 6% | |||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 80% | 80% | 95% | |
Defined contribution plan employer matching contribution vesting period | 5 years | |||
Defined contribution plan, employer discretionary contribution amount | $ 1.3 | $ 1.2 | $ 1.2 | |
Employer Matching Contribution Percent Of Match For First One Percent [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, employer matching contribution, percent of match | 100% | |||
Employer Matching Contribution Percent Of Match For Next Six Percent [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, employer matching contribution, percent of match | 50% | |||
Premium Life Insurance Policies [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Cash Surrender Value of Life Insurance | 41.7 | 43.2 | ||
Deferred Compensation Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Cash Surrender Value of Life Insurance | $ 10 | $ 9 |
Noninterest Income (Details)
Noninterest Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Included in other income: | |||
Amortization of limited partnerships | $ 253 | $ (524) | |
Dividends on equity investments | $ 1,076 | 843 | 737 |
Unrealized gains recognized on equity investments | (291) | (332) | 857 |
Other | 3,579 | 6,423 | 1,864 |
Total other noninterest income | $ 4,364 | $ 7,187 | $ 2,934 |
Other Noninterest Expense (Deta
Other Noninterest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |||
Legal, audit, professional, and director's fees | $ 5,293 | $ 3,061 | $ 7,652 |
Data processing | 5,831 | 6,202 | 5,890 |
Advertising and promotional | 2,215 | 1,728 | 1,521 |
Deposit services | 8,775 | 9,492 | 9,049 |
Stationery and supplies | 531 | 486 | 345 |
Telephone and data communication | 1,452 | 1,563 | 2,013 |
Loan and credit card processing | 597 | 550 | 501 |
Foreclosed assets expense (income), net | 665 | 84 | 72 |
Postage | 219 | 373 | 308 |
Other | 4,003 | 3,415 | 2,780 |
Assessments | 1,942 | 1,078 | 1,157 |
Total other noninterest expense | $ 31,523 | $ 28,032 | $ 31,288 |
Related Party Transactions - Su
Related Party Transactions - Summary of the Aggregate Activity Involving Related Party Borrowers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Loans and Leases Receivable, Related Parties | |||
Balance, beginning of year | $ 1,067 | $ 1,794 | |
Disbursements | 4,059 | 1,983 | |
Amounts repaid | (5,150) | (2,548) | |
Effect of changes in composition of related parties | 24 | (162) | |
Balance, end of year | 1,067 | ||
Undisbursed commitments to related parties | $ 6 | $ 6 | $ 2,156 |
Related Party Transactions - Ge
Related Party Transactions - General Information (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Related Party Transactions [Abstract] | ||
Deposit From Related Party | $ 4.2 | $ 8.1 |
Fair Value - Assets Measured on
Fair Value - Assets Measured on Recurring Basis, Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investment securities available for sale | $ 1,019,201 | $ 934,923 |
U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investment securities available for sale | 102,749 | 50,599 |
Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investment securities available for sale | 99,544 | 122,532 |
States and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investment securities available for sale | 194,206 | 205,980 |
Corporate Bond [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investment securities available for sale | 52,040 | 57,435 |
Collateralized Loan Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investment securities available for sale | 570,662 | 498,377 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investment securities available for sale | 1,019,201 | 934,923 |
Gain on sale of securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investment securities available for sale | 102,749 | 50,599 |
Gain on sale of securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investment securities available for sale | 99,544 | 122,532 |
Gain on sale of securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | States and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investment securities available for sale | 194,206 | 205,980 |
Gain on sale of securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Corporate Bond [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investment securities available for sale | 52,040 | 57,435 |
Gain on sale of securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Collateralized Loan Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investment securities available for sale | 570,662 | 498,377 |
Gain on sale of securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | States and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Corporate Bond [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Collateralized Loan Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investment securities available for sale | 967,161 | 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 | ||
Investment securities available for sale | 102,749 | 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 | ||
Investment securities available for sale | 99,544 | 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 | ||
Investment securities available for sale | 194,206 | 205,980 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Bond [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investment securities available for sale | 0 | 0 |
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 | ||
Investment securities available for sale | 570,662 | 498,377 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investment securities available for sale | 52,040 | 57,435 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | States and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investment securities available for sale | 0 | 0 |
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 | ||
Investment securities available for sale | 52,040 | 57,435 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Collateralized Loan Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investment securities available for sale | $ 0 | $ 0 |
Fair Value - Assets Measured _2
Fair Value - Assets Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Collateralized Loan Obligations [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance of recurring Level 3 assets | $ 0 | $ 195,707 |
Included in other comprehensive income | 0 | 0 |
Purchases | 0 | 0 |
Transfers out of Level 3 | 0 | (195,707) |
Ending balance of recurring Level 3 assets | 0 | 0 |
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 | (5,395) | 0 |
Purchases | 0 | 29,905 |
Transfers out of Level 3 | 0 | 0 |
Ending balance of recurring Level 3 assets | $ 52,040 | $ 57,435 |
Fair Value - Assets Measured _3
Fair Value - Assets Measured on Nonrecurring Basis, Fair Value (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Collateral Pledged [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total impaired loans | $ 18,141 | |
Assets, Fair value disclosure | $ 5,889 | |
Fair Value, Inputs, Level 1 [Member] | Collateral Pledged [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total impaired loans | 0 | |
Assets, Fair value disclosure | 0 | |
Fair Value, Inputs, Level 2 [Member] | Collateral Pledged [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total impaired loans | 18,141 | |
Assets, Fair value disclosure | 5,889 | |
Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair value disclosure | 0 | |
Fair Value, Inputs, Level 3 [Member] | Collateral Pledged [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total impaired loans | $ 0 | |
Assets, Fair value disclosure | $ 0 |
Disclosures about Fair Value _3
Disclosures about Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Assets: | ||
Securities held-to-maturity | $ 314,924 | $ 328,011 |
Financial Liabilities: | ||
Repurchase agreements | 107,121 | 109,169 |
Carrying Amount [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 78,602 | 77,131 |
Securities held-to-maturity | 320,057 | 336,881 |
Loans held for investment | 2,066,884 | 2,029,757 |
Financial Liabilities: | ||
Time deposits | 690,107 | 519,608 |
Repurchase agreements | 107,121 | 109,169 |
Other borrowings | 360,500 | 219,000 |
Long-term borrowings | 49,304 | 49,214 |
Subordinated debentures | 35,660 | 35,481 |
Fair Value [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 78,602 | 77,131 |
Securities held-to-maturity | 314,924 | 328,011 |
Loans held for investment | 1,924,543 | 1,927,963 |
Financial Liabilities: | ||
Time deposits | 688,222 | 517,967 |
Repurchase agreements | 107,121 | 109,169 |
Other borrowings | 360,500 | 219,000 |
Long-term borrowings | 44,097 | 42,775 |
Subordinated debentures | 35,423 | 37,171 |
Fair Value [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 78,602 | 77,131 |
Securities held-to-maturity | 0 | 0 |
Loans held for investment | 0 | 0 |
Financial Liabilities: | ||
Time deposits | 0 | 0 |
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 |
Securities held-to-maturity | 314,924 | 328,011 |
Loans held for investment | 5,889 | 18,141 |
Financial Liabilities: | ||
Time deposits | 688,222 | 517,967 |
Repurchase agreements | 107,121 | 109,169 |
Other borrowings | 360,500 | 219,000 |
Long-term borrowings | 44,097 | 42,775 |
Subordinated debentures | 35,423 | 37,171 |
Fair Value [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities held-to-maturity | 0 | 0 |
Loans held for investment | 1,918,654 | 1,909,822 |
Financial Liabilities: | ||
Time deposits | 0 | 0 |
Repurchase agreements | 0 | 0 |
Other borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Subordinated debentures | $ 0 | $ 0 |
Disclosures about Fair Value _4
Disclosures about Fair Value of Financial Instruments - Off-Balance-Sheet Risk (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
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 | $ 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 | $ 6,036 |
Qualified Affordable Housing _2
Qualified Affordable Housing Project Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments in Affordable Housing Projects [Abstract] | |||
Investment, book balance | $ 14.4 | $ 10.1 | |
Investment, remaining commitments for additional capital contributions | 10.5 | 7 | |
Investment, amortization expense | 0.7 | 0.5 | $ 0.5 |
Investment, tax credit | 0.6 | 0.5 | 0.5 |
Impairment loss | $ 0 | $ 0 | $ 0 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Noninterest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Noninterest income | |||||||
Gain (loss) on limited partnerships | $ 253 | $ (524) | |||||
Dividends on equity investments | $ 1,076 | 843 | 737 | ||||
Unrealized (losses) gains recognized on equity investments | (291) | (332) | 857 | ||||
Net gains on sale of securities | 396 | 1,487 | 11 | ||||
Other | 6,116 | 7,451 | 6,667 | ||||
Total noninterest income | $ 8,045 | $ 7,762 | $ 8,013 | $ 6,579 | 30,400 | 30,770 | 28,079 |
Returned Item and Overdraft Fees [Member] | |||||||
Noninterest income | |||||||
Service charges on deposits | 5,261 | 5,227 | 4,924 | ||||
Other Service Charges on Deposits [Member] | |||||||
Noninterest income | |||||||
Service charges on deposits | 9,790 | 7,308 | 6,922 | ||||
Debit Card [Member] | |||||||
Noninterest income | |||||||
Service charges on deposits | $ 8,052 | $ 8,533 | $ 8,485 |
Parent Only Condensed Financi_3
Parent Only Condensed Financial Statements - Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||||
Cash and due from banks | $ 73,721 | $ 72,803 | ||
Other assets | 147,820 | 125,619 | ||
Total assets | 3,729,799 | 3,608,590 | ||
Liabilities: | ||||
Other liabilities | 77,384 | 45,140 | ||
Long-term debt | 49,304 | 49,214 | ||
Subordinated debentures | 35,660 | 35,481 | ||
Total liabilities | 3,391,702 | 3,305,008 | ||
Shareholders' equity: | ||||
Common stock | 110,446 | 112,928 | ||
Retained earnings | 259,050 | 243,082 | ||
Accumulated other comprehensive gain, net of taxes | (35,980) | (56,576) | ||
Total shareholders' equity | 338,097 | 303,582 | $ 362,494 | $ 343,896 |
Total liabilities and shareholders' equity | 3,729,799 | 3,608,590 | ||
Parent Company [Member] | ||||
ASSETS | ||||
Cash and due from banks | 10,437 | 26,099 | ||
Other assets | 4,410 | 4,162 | ||
Total assets | 425,854 | 394,913 | ||
Liabilities: | ||||
Other liabilities | 2,793 | 6,636 | ||
Long-term debt | 49,304 | 49,214 | ||
Subordinated debentures | 35,660 | 35,481 | ||
Total liabilities | 87,757 | 91,331 | ||
Shareholders' equity: | ||||
Common stock | 115,027 | 117,076 | ||
Retained earnings | 259,050 | 243,082 | ||
Accumulated other comprehensive gain, net of taxes | (35,980) | (56,576) | ||
Total shareholders' equity | 338,097 | 303,582 | ||
Total liabilities and shareholders' equity | 425,854 | 394,913 | ||
Parent Company [Member] | Bank Subsidiaries [Member] | ||||
ASSETS | ||||
Investments in subsidiary | 409,862 | 363,507 | ||
Parent Company [Member] | Trust Subsidiaries [Member] | ||||
ASSETS | ||||
Investments in subsidiary | $ 1,145 | $ 1,145 |
Parent Only Condensed Financi_4
Parent Only Condensed Financial Statements - Condensed Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Expense | |||||||||||
Salaries and employee benefits | $ 50,977 | $ 47,053 | $ 42,431 | ||||||||
Income before income taxes | $ 8,254 | $ 13,320 | $ 13,432 | $ 11,459 | $ 9,014 | $ 13,269 | $ 12,492 | $ 10,140 | 46,464 | 44,915 | 57,199 |
Income tax benefit | 1,964 | 3,435 | 3,513 | 2,709 | 1,901 | 3,334 | 3,288 | 2,733 | 11,620 | 11,256 | 14,187 |
Net income | $ 6,290 | $ 9,885 | $ 9,919 | $ 8,750 | $ 7,113 | $ 9,935 | $ 9,204 | $ 7,407 | 34,844 | 33,659 | 43,012 |
Parent Company [Member] | |||||||||||
Income: | |||||||||||
Dividend from subsidiary | 16,800 | 28,000 | 3,200 | ||||||||
Other operating income | 0 | 0 | 0 | ||||||||
Total income | 16,800 | 28,000 | 3,200 | ||||||||
Expense | |||||||||||
Salaries and employee benefits | 1,741 | 1,129 | 779 | ||||||||
Other expenses | 6,117 | 4,550 | 2,728 | ||||||||
Total expenses | 7,858 | 5,679 | 3,507 | ||||||||
Income before income taxes | 8,942 | 22,321 | (307) | ||||||||
Income tax benefit | (2,323) | (1,679) | (1,037) | ||||||||
Income before equity in undistributed income of subsidiary | 11,265 | 24,000 | 730 | ||||||||
Equity in undistributed income of subsidiary | 23,579 | 9,659 | 42,282 | ||||||||
Net income | $ 34,844 | $ 33,659 | $ 43,012 |
Parent Only Condensed Financi_5
Parent Only Condensed Financial Statements - Condensed Cash Flow Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 34,844 | $ 33,659 | $ 43,012 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Gain on sales of securities | (396) | (1,487) | (11) |
(Increase) decrease in other assets | (20,525) | (29,283) | 6,435 |
Increase (decrease) in other liabilities | 31,835 | 9,481 | 1,602 |
Net cash provided by operating activities | 53,245 | 33,572 | 52,656 |
Cash flows from investing activities: | |||
Net cash used in investing activities | (83,690) | (480,996) | 20,620 |
Cash flows from financing activities: | |||
Stock options exercised | 314 | 281 | |
Repurchases of common stock | (8,881) | (5,192) | (5,220) |
Issuance of debentures, net | 49,141 | ||
Net cash provided by financing activities | 31,916 | 267,027 | 112,835 |
Net increase in cash and cash equivalents | 1,471 | (180,397) | 186,111 |
Cash and cash equivalents, beginning of year | 77,131 | 257,528 | 71,417 |
Cash and cash equivalents, end of year | 78,602 | 77,131 | 257,528 |
Parent Company [Member] | |||
Cash flows from operating activities: | |||
Net income | 34,844 | 33,659 | 43,012 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Undistributed net income of subsidiary | (23,579) | (9,659) | (42,282) |
Gain on sales of securities | 0 | 0 | 0 |
(Increase) decrease in other assets | 1,863 | (3,459) | 179 |
Increase (decrease) in other liabilities | (6,117) | 4,212 | 1,263 |
Net cash provided by operating activities | 7,011 | 24,753 | 2,172 |
Cash flows from investing activities: | |||
Investment in subsidiary | 0 | 0 | (25,000) |
Net cash used in investing activities | 0 | 0 | (25,000) |
Cash flows from financing activities: | |||
Stock options exercised | 0 | 314 | 282 |
Repurchases of common stock | (8,959) | (5,192) | (5,220) |
Dividends paid | (13,714) | (13,919) | (13,232) |
Issuance of debentures, net | 0 | 0 | 49,141 |
Net cash provided by financing activities | (22,673) | (18,797) | 30,971 |
Net increase in cash and cash equivalents | (15,662) | 5,956 | 8,143 |
Cash and cash equivalents, beginning of year | 26,099 | 20,143 | 12,000 |
Cash and cash equivalents, end of year | $ 10,437 | $ 26,099 | $ 20,143 |
Condensed Quarterly Results o_3
Condensed Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Interest income | $ 42,444 | $ 42,384 | $ 40,875 | $ 37,419 | $ 35,603 | $ 31,929 | $ 28,206 | $ 26,081 | $ 163,121 | $ 121,819 | $ 113,076 |
Interest expense | 14,574 | 14,297 | 12,558 | 9,287 | 6,240 | 3,017 | 1,621 | 1,325 | 50,716 | 12,204 | 4,050 |
Net interest income | 27,870 | 28,087 | 28,317 | 28,132 | 29,363 | 28,912 | 26,585 | 24,756 | 112,405 | 109,615 | 109,026 |
Provision (benefit) for credit losses | 4,058 | 10,898 | (3,650) | ||||||||
Noninterest income | 8,045 | 7,762 | 8,013 | 6,579 | 30,400 | 30,770 | 28,079 | ||||
Noninterest expense | 24,136 | 22,562 | 22,968 | 22,992 | 21,522 | 20,996 | 22,213 | 20,079 | 92,660 | 84,803 | 83,556 |
Net income before taxes | 8,254 | 13,320 | 13,432 | 11,459 | 9,014 | 13,269 | 12,492 | 10,140 | 46,464 | 44,915 | 57,199 |
Provision for income taxes | 1,964 | 3,435 | 3,513 | 2,709 | 1,901 | 3,334 | 3,288 | 2,733 | 11,620 | 11,256 | 14,187 |
Net Income | $ 6,290 | $ 9,885 | $ 9,919 | $ 8,750 | $ 7,113 | $ 9,935 | $ 9,204 | $ 7,407 | $ 34,844 | $ 33,659 | $ 43,012 |
Diluted earnings per share (in dollars per share) | $ 0.43 | $ 0.68 | $ 0.67 | $ 0.58 | $ 0.47 | $ 0.66 | $ 0.62 | $ 0.49 | $ 2.36 | $ 2.24 | $ 2.80 |
Cash dividend per share | $ 0.23 | $ 0.23 | $ 0.23 | $ 0.23 | $ 0.23 | $ 0.23 | $ 0.23 | $ 0.23 | |||
Rounded Value | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Provision (benefit) for credit losses | $ 3,525 | $ (33) | $ (70) | $ 260 | $ 6,483 | $ 1,259 | $ 2,419 | $ 600 | |||
Noninterest income | $ 7,656 | $ 6,612 | $ 10,539 | $ 6,063 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 01, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Subsequent Event [Line Items] | ||||
Sale of bonds | $ 25,676 | $ 45,903 | $ 148 | |
Loss on transaction | $ 14,500 | |||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Sale of bonds | $ 196,700 | |||
Percentage of weighted average book yield | 2.61% | |||
Weighted average rate | 5.52% |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||||||||||
Net Income (Loss) | $ 6,290 | $ 9,885 | $ 9,919 | $ 8,750 | $ 7,113 | $ 9,935 | $ 9,204 | $ 7,407 | $ 34,844 | $ 33,659 | $ 43,012 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |