Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 22, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-35272 | |
Entity Registrant Name | MIDLAND STATES BANCORP, INC. | |
Entity Incorporation, State or Country Code | IL | |
Entity Tax Identification Number | 37-1233196 | |
Entity Address, Address Line One | 1201 Network Centre Drive | |
Entity Address, City or Town | Effingham | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 62401 | |
City Area Code | 217 | |
Local Phone Number | 342-7321 | |
Title of 12(b) Security | Common stock, $0.01 par value | |
Trading Symbol | MSBI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 22,067,424 | |
Entity Central Index Key | 0001466026 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 264,173 | $ 673,297 |
Federal funds sold | 5,944 | 7,074 |
Cash and cash equivalents | 270,117 | 680,371 |
Investment securities available for sale, at fair value (allowance for credit losses of $0 and $221 at June 30, 2022 and December 31, 2021, respectively) | 760,540 | 906,603 |
Equity securities, at fair value | 8,738 | 9,529 |
Loans | 5,795,544 | 5,224,801 |
Allowance for credit losses on loans | (54,898) | (51,062) |
Total loans, net | 5,740,646 | 5,173,739 |
Loans held for sale | 5,298 | 32,045 |
Premises and equipment, net | 77,668 | 79,220 |
Other real estate owned | 11,131 | 12,059 |
Nonmarketable equity securities | 35,701 | 36,341 |
Accrued interest receivable | 16,552 | 19,470 |
Loan servicing rights, at lower of cost or fair value | 25,879 | 28,865 |
Goodwill | 161,904 | 161,904 |
Other intangible assets, net | 23,559 | 24,374 |
Company-owned life insurance | 148,900 | 148,378 |
Other assets | 149,179 | 130,907 |
Total assets | 7,435,812 | 7,443,805 |
Deposits: | ||
Noninterest-bearing demand deposits | 1,972,261 | 2,245,701 |
Interest-bearing deposits | 4,212,177 | 3,864,947 |
Total deposits | 6,184,438 | 6,110,648 |
Short-term borrowings | 67,689 | 76,803 |
Federal Home Loan Bank advances and other borrowings | 285,000 | 310,171 |
Subordinated debt | 139,277 | 139,091 |
Trust preferred debentures | 49,674 | 49,374 |
Accrued interest payable and other liabilities | 73,546 | 93,881 |
Total liabilities | 6,799,624 | 6,779,968 |
Shareholders’ Equity: | ||
Common stock, $0.01 par value; 40,000,000 shares authorized; 22,060,255 and 22,050,537 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively | 221 | 221 |
Capital surplus | 446,894 | 445,907 |
Retained earnings | 242,170 | 212,472 |
Accumulated other comprehensive (loss) income, net of tax | (53,097) | 5,237 |
Total shareholders’ equity | 636,188 | 663,837 |
Total liabilities and shareholders’ equity | $ 7,435,812 | $ 7,443,805 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Investment securities, available-for-sale, allowance for credit loss | $ 0 | $ 221 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 22,060,255 | 22,050,537 |
Common stock, shares outstanding (in shares) | 22,060,255 | 22,050,537 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest income: | ||||
Loans: Taxable | $ 62,943 | $ 52,490 | $ 119,529 | $ 107,044 |
Loans: Tax exempt | 514 | 650 | 1,062 | 1,320 |
Loans held for sale | 77 | 261 | 297 | 703 |
Investment securities: | ||||
Taxable | 4,055 | 3,451 | 7,952 | 6,731 |
Tax exempt | 692 | 794 | 1,534 | 1,575 |
Nonmarketable equity securities | 487 | 609 | 971 | 1,289 |
Federal funds sold and cash investments | 468 | 142 | 639 | 238 |
Total interest income | 69,236 | 58,397 | 131,984 | 118,900 |
Interest expense: | ||||
Deposits | 3,810 | 2,992 | 5,971 | 6,175 |
Short-term borrowings | 22 | 20 | 45 | 44 |
Federal Home Loan Bank advances and other borrowings | 1,435 | 2,470 | 2,647 | 5,040 |
Subordinated debt | 2,011 | 2,316 | 4,022 | 4,683 |
Trust preferred debentures | 624 | 489 | 1,138 | 980 |
Total interest expense | 7,902 | 8,287 | 13,823 | 16,922 |
Net interest income | 61,334 | 50,110 | 118,161 | 101,978 |
Provision for credit losses on loans | 4,741 | 0 | 8,873 | 3,950 |
Provision for credit losses on unfunded commitments | 700 | (265) | 956 | (800) |
Recapture of provision for other credit losses | 0 | (190) | (221) | (40) |
Total provision for credit losses | 5,441 | (455) | 9,608 | 3,110 |
Net interest income after provision for credit losses | 55,893 | 50,565 | 108,553 | 98,868 |
Noninterest income: | ||||
Wealth management revenue | 6,143 | 6,529 | 13,282 | 12,460 |
Residential mortgage banking revenue | 384 | 1,562 | 983 | 3,136 |
Service charges on deposit accounts | 2,304 | 1,916 | 4,372 | 3,742 |
Interchange revenue | 3,590 | 3,797 | 6,870 | 7,172 |
(Loss) gain on sales of investment securities, net | (101) | 377 | (101) | 377 |
Impairment on commercial mortgage servicing rights | (869) | (1,148) | (1,263) | (2,423) |
Company-owned life insurance | 840 | 863 | 1,859 | 1,723 |
Other income | 2,322 | 3,521 | 4,224 | 6,046 |
Total noninterest income | 14,613 | 17,417 | 30,226 | 32,233 |
Noninterest expense: | ||||
Salaries and employee benefits | 22,645 | 22,071 | 44,515 | 42,599 |
Occupancy and equipment | 3,489 | 3,796 | 7,244 | 7,736 |
Data processing | 6,082 | 6,288 | 11,955 | 12,281 |
Professional | 1,516 | 5,549 | 3,488 | 7,734 |
Marketing | 733 | 700 | 1,421 | 1,177 |
Communications | 635 | 824 | 1,347 | 1,646 |
Amortization of intangible assets | 1,318 | 1,470 | 2,716 | 2,985 |
Federal Home Loan Bank advances prepayment fees | 0 | 3,669 | 0 | 3,677 |
Other expense | 4,921 | 4,574 | 9,537 | 8,185 |
Total noninterest expense | 41,339 | 48,941 | 82,223 | 88,020 |
Income before income taxes | 29,167 | 19,041 | 56,556 | 43,081 |
Income taxes | 7,284 | (1,083) | 13,924 | 4,419 |
Net income | $ 21,883 | $ 20,124 | $ 42,632 | $ 38,662 |
Per common share data: | ||||
Basic earnings per common share (in dollars per share) | $ 0.97 | $ 0.88 | $ 1.89 | $ 1.70 |
Diluted earnings per common share (in dollars per share) | $ 0.97 | $ 0.88 | $ 1.89 | $ 1.69 |
Weighted average common shares outstanding (in shares) | 22,305,590 | 22,591,127 | 22,290,486 | 22,557,728 |
Weighted average diluted common shares outstanding (in shares) | 22,360,819 | 22,677,515 | 22,355,936 | 22,633,040 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 21,883 | $ 20,124 | $ 42,632 | $ 38,662 |
Investment securities available for sale: | ||||
Unrealized (losses) gains that occurred during the period | (32,659) | 565 | (83,435) | (6,176) |
Recapture of provision for credit loss expense | 0 | (190) | (221) | (40) |
Reclassification adjustment for realized net (gains) losses on sales of investment securities included in net income | 101 | (377) | 101 | (377) |
Income tax effect | 8,953 | 0 | 22,977 | 1,813 |
Change in investment securities available for sale, net of tax | (23,605) | (2) | (60,578) | (4,780) |
Cash flow hedges: | ||||
Net unrealized derivative (losses) gains on cash flow hedges | (2,010) | (2,797) | 3,095 | 4,838 |
Reclassification adjustment for gains realized in net income | 0 | 0 | 0 | (314) |
Income tax effect | 553 | 770 | (851) | (1,417) |
Change in cash flow hedges, net of tax | (1,457) | (2,027) | 2,244 | 3,735 |
Other comprehensive loss, net of tax | (25,062) | (2,029) | (58,334) | (1,045) |
Total comprehensive (loss) income | $ (3,179) | $ 18,095 | $ (15,702) | $ 37,617 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common stock | Capital surplus | Retained earnings | Accumulated other comprehensive (loss) income |
Beginning Balance at Dec. 31, 2020 | $ 621,391 | $ 223 | $ 453,410 | $ 156,327 | $ 11,431 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 38,662 | 38,662 | |||
Other comprehensive loss | (1,045) | (1,045) | |||
Common dividends declared | (12,628) | (12,628) | |||
Common stock repurchased | (1,208) | (1) | (1,207) | ||
Share-based compensation expense | 986 | 986 | |||
Issuance of common stock under employee benefit plans | 2,028 | 2 | 2,026 | ||
Ending Balance at Jun. 30, 2021 | 648,186 | 224 | 455,215 | 182,361 | 10,386 |
Beginning Balance at Mar. 31, 2021 | 635,467 | 224 | 454,264 | 168,564 | 12,415 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 20,124 | 20,124 | |||
Other comprehensive loss | (2,029) | (2,029) | |||
Common dividends declared | (6,327) | (6,327) | |||
Share-based compensation expense | 484 | 484 | |||
Issuance of common stock under employee benefit plans | 467 | 467 | |||
Ending Balance at Jun. 30, 2021 | 648,186 | 224 | 455,215 | 182,361 | 10,386 |
Beginning Balance at Dec. 31, 2021 | 663,837 | 221 | 445,907 | 212,472 | 5,237 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 42,632 | 42,632 | |||
Other comprehensive loss | (58,334) | (58,334) | |||
Common dividends declared | (12,934) | (12,934) | |||
Common stock repurchased | (1,109) | (1) | (1,108) | ||
Share-based compensation expense | 1,046 | 1,046 | |||
Issuance of common stock under employee benefit plans | 1,050 | 1 | 1,049 | ||
Ending Balance at Jun. 30, 2022 | 636,188 | 221 | 446,894 | 242,170 | (53,097) |
Beginning Balance at Mar. 31, 2022 | 644,986 | 220 | 446,044 | 226,757 | (28,035) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 21,883 | 21,883 | |||
Other comprehensive loss | (25,062) | (25,062) | |||
Common dividends declared | (6,470) | (6,470) | |||
Share-based compensation expense | 519 | 519 | |||
Issuance of common stock under employee benefit plans | 332 | 1 | 331 | ||
Ending Balance at Jun. 30, 2022 | $ 636,188 | $ 221 | $ 446,894 | $ 242,170 | $ (53,097) |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common dividend declared, per share (in dollars per share) | $ 0.29 | $ 0.28 | $ 0.58 | $ 0.56 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 42,632 | $ 38,662 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 9,608 | 3,110 |
Depreciation on premises and equipment | 2,445 | 2,851 |
Amortization of intangible assets | 2,716 | 2,985 |
Amortization of operating lease right-of-use asset | 904 | 845 |
Amortization of loan servicing rights | 1,507 | 1,708 |
Share-based compensation expense | 1,046 | 986 |
Increase in cash surrender value of life insurance | (1,671) | (1,723) |
Gain on proceeds from company-owned life insurance | (188) | 0 |
Investment securities amortization, net | 1,440 | 2,148 |
(Loss) gain on sales of investment securities, net | 101 | (377) |
Loss (gain) on sales of other real estate owned | 120 | (450) |
Impairment on other real estate owned | 404 | 417 |
Origination of loans held for sale | (100,806) | (317,350) |
Proceeds from sales of loans held for sale | 203,545 | 494,541 |
Gain on sale of loans held for sale | (799) | (2,728) |
Impairment on commercial mortgage servicing rights | 1,263 | 2,423 |
Net change in operating assets and liabilities: | ||
Accrued interest receivable | 2,954 | 922 |
Other assets | (17,160) | (12,094) |
Accrued expenses and other liabilities | 4,416 | (223) |
Net cash provided by operating activities | 154,477 | 216,653 |
Cash flows from investing activities: | ||
Purchases of investment securities available for sale | (99,882) | (206,033) |
Proceeds from sales of investment securities available for sale | 107,740 | 12,617 |
Maturities and payments on investment securities available for sale | 53,329 | 114,808 |
Purchases of equity securities | (379) | (186) |
Net (increase) decrease in loans | (634,229) | 212,886 |
Purchases of premises and equipment | (928) | (1,000) |
Proceeds from sale of premises and equipment | 143 | 590 |
Purchases of nonmarketable equity securities | (1,860) | 0 |
Proceeds from sales of nonmarketable equity securities | 2,500 | 7,923 |
Proceeds from sales of other real estate owned | 505 | 8,069 |
Purchases of company-owned life insurance | 0 | (550) |
Proceeds from settlements of company-owned life insurance | 1,337 | 0 |
Net cash received (paid) on acquisition | 60,275 | (2,797) |
Net cash (used in) provided by investing activities | (511,449) | 146,327 |
Cash flows from financing activities: | ||
Net (decrease) increase in deposits | (6,004) | 95,335 |
Net (decrease) increase in short-term borrowings | (9,114) | 7,028 |
Proceeds from FHLB borrowings | 700,000 | 300,000 |
Payments made on FHLB borrowings and other borrowings | (725,000) | (639,000) |
Payments made on subordinated debt | 0 | (31,075) |
Redemption of Series G preferred stock | (171) | 0 |
Cash dividends paid on common stock | (12,934) | (12,628) |
Common stock repurchased | (1,109) | (1,208) |
Proceeds from issuance of common stock under employee benefit plans | 1,050 | 2,028 |
Net cash used in financing activities | (53,282) | (279,520) |
Net (decrease) increase in cash and cash equivalents | (410,254) | 83,460 |
Cash and cash equivalents: | ||
Beginning of period | 680,371 | 341,640 |
End of period | 270,117 | 425,100 |
Cash payments for: | ||
Interest paid on deposits and borrowed funds | 13,746 | 17,369 |
Income tax paid, net of refunds | 16,606 | 12,907 |
Supplemental disclosures of noncash investing and financing activities: | ||
Transfer of loans to loans held for sale | 74,997 | 48,494 |
Transfer of loans to other real estate owned | $ 102 | $ 485 |
BUSINESS DESCRIPTION
BUSINESS DESCRIPTION | 6 Months Ended |
Jun. 30, 2022 | |
BUSINESS DESCRIPTION | |
BUSINESS DESCRIPTION | B USINESS D ESCRIPTION Midland States Bancorp, Inc. (the “Company,” “we,” “our,” or “us”) is a diversified financial holding company headquartered in Effingham, Illinois. Our wholly owned banking subsidiary, Midland States Bank (the “Bank”), has branches across Illinois and in Missouri, and provides a full range of commercial and consumer banking products and services, business equipment financing, merchant credit card services, trust and investment management services, and insurance and financial planning services. Our principal business activity has been lending to and accepting deposits from individuals, businesses, municipalities and other entities. We have derived income principally from interest charged on loans and, to a lesser extent, from interest and dividends earned on investment securities. We have also derived income from noninterest sources, such as: fees received in connection with various lending and deposit services; wealth management services; commercial Federal Housing Administration ("FHA") mortgage loan servicing; residential mortgage loan originations, sales and servicing; and, from time to time, gains on sales of assets. Our principal expenses include interest expense on deposits and borrowings, operating expenses, such as salaries and employee benefits, occupancy and equipment expenses, data processing costs, professional fees and other noninterest expenses, provisions for credit losses and income tax expense. |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | B ASIS OF P RESENTATION AND S UMMARY OF S IGNIFICANT A CCOUNTING P OLICIES Basis of Presentation The consolidated financial statements of the Company are unaudited and should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission (the “SEC”) on February 25, 2022. The consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”) and conform to predominant practices within the banking industry. A discussion of these policies can be found in Note 1 – Summary of Significant Accounting Policies included in the Company's 2021 Annual Report on Form 10-K. Certain reclassifications of 2021 amounts have been made to conform to the 2022 presentation. Management has evaluated subsequent events for potential recognition or disclosure. Operating results for the three and six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022 or any other period. Principles of Consolidation The consolidated financial statements include the accounts of the parent company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. Assets held for customers in a fiduciary or agency capacity are not assets of the Company and, accordingly, other than trust cash on deposit with the Bank, are not included in the accompanying unaudited balance sheets. Accounting Guidance Issued But Not Yet Adopted FASB ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting – In March 2020, the FASB issued ASU No. 2020-04 which provides optional expedients and exceptions for accounting related to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. ASU 2020-04 was effective upon issuance and generally can be applied through December 31, 2022. The Company has been monitoring its volume of commercial loans tied to LIBOR. In 2021, the Company began prioritizing SOFR as the preferred alternative reference rate with plans to cease booking LIBOR based commitments after the end of 2021. Loans with a maturity after June 2023 are being reviewed and monitored to ensure there is appropriate fallback language in place when LIBOR is no longer published. Loans with a maturity date before that time should naturally mature and be re-underwritten with the alternative index rate. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, which addresses questions about whether Topic 848 can be applied to derivative instruments that do not reference a rate that is expected to be discontinued but that use an interest rate for margining, discounting, or contract price alignment that is expected to be modified as a result of reference rate reform, commonly referred to as the "discounting transition". The amendments clarify that certain optional expedients and exceptions in Topic 848 do apply to derivatives that are affected by the discounting transition. The amendments in ASU 2021-01 are effective immediately. The Company believes the adoption of this guidance on activities subsequent to December 31, 2021 through December 31, 2022 will not have a material impact on the consolidated financial statements. FASB ASU No. 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures – In March 2022, the FASB issued ASU No. 2022-02, which 1) eliminates the accounting guidance for troubled debt restructurings ("TDRs") by creditors while enhancing the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty; and 2) requires that an entity disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022 and the amendments should be applied prospectively, although the entity has the option to apply a modified retrospective transition method for the recognition and measurement of TDRs, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. The Company is currently evaluating the impact of adopting the new guidance on its consolidated financial statements. |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Jun. 30, 2022 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS FNBC Bank & Trust On June 17, 2022, the Company completed its branch acquisition from FNBC Bank & Trust ("FNBC") whereby we acquired $79.8 million of deposits and $16.6 million of loans as well as other assets and liabilities associated with FNBC's branches in Mokena and Yorkville, Illinois. The acquisition was accounted for under the acquisition method of accounting. Accordingly, the Company recognized amounts for identified tangible and intangible assets acquired and liabilities assumed at their estimated acquisition date fair values, while $0.5 million of transaction and integration costs were expensed as incurred. A summary of the fair value of the assets acquired and liabilities assumed are included in the table below. (dollars in thousands) FNBC Assets acquired: Cash and cash equivalents $ 60,275 Loans 16,632 Premises and equipment, net 950 Accrued interest receivable 36 Intangible assets 1,901 Total assets acquired $ 79,794 Liabilities assumed: Deposits $ 79,794 Total liabilities assumed $ 79,794 Intangible assets: Core deposit intangible $ 1,901 Estimated useful life 10 years ATG Trust Company On June 1, 2021, the Company completed its acquisition of substantially all of the trust assets of ATG Trust Company (“ATG Trust”), a trust company based in Chicago, Illinois, with approximately $399.7 million in assets under management. In aggregate, the Company acquired the assets of ATG Trust for $2.7 million in cash. The acquisition was accounted for under the acquisition method of accounting. Accordingly, the Company recognized amounts for identifiable assets acquired at their estimated acquisition date fair values, while $0.4 million of transaction and integration costs associated with the acquisition have been expensed during 2021. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | I NVESTMENT S ECURITIES Investment Securities Available for Sale Investment securities available for sale at June 30, 2022 and December 31, 2021 were as follows: June 30, 2022 (dollars in thousands) Amortized Gross Gross Allowance for credit losses Fair Investment securities available for sale U.S. Treasury securities $ 68,390 $ — $ 4,394 $ — $ 63,996 U.S. government sponsored entities and U.S. agency securities 33,756 66 3,519 — 30,303 Mortgage-backed securities - agency 480,408 17 56,587 — 423,838 Mortgage-backed securities - non-agency 26,118 — 3,341 — 22,777 State and municipal securities 113,920 525 7,757 — 106,688 Corporate securities 119,374 56 6,492 — 112,938 Total available for sale securities $ 841,966 $ 664 $ 82,090 $ — $ 760,540 December 31, 2021 (dollars in thousands) Amortized Gross Gross Allowance for credit losses Fair Investment securities available for sale U.S. Treasury securities $ 65,347 $ — $ 430 $ — $ 64,917 U.S. government sponsored entities and U.S. agency securities 34,569 79 831 — 33,817 Mortgage-backed securities - agency 444,484 2,687 6,901 — 440,270 Mortgage-backed securities - non-agency 29,037 50 381 — 28,706 State and municipal securities 137,904 5,561 366 — 143,099 Corporate securities 193,354 3,128 467 221 195,794 Total available for sale securities $ 904,695 $ 11,505 $ 9,376 $ 221 $ 906,603 The following is a summary of the amortized cost and fair value of the investment securities available for sale, by maturity, at June 30, 2022. Expected maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be prepaid without penalties. The maturities of all other investment securities available for sale are based on final contractual maturity. (dollars in thousands) Amortized Fair Investment securities available for sale Within one year $ 12,828 $ 12,898 After one year through five years 134,666 127,807 After five years through ten years 156,446 145,497 After ten years 31,500 27,723 Mortgage-backed securities 506,526 446,615 Total available for sale securities $ 841,966 $ 760,540 Proceeds and gross realized gains on sales of investment securities available for sale for the three and six months ended June 30, 2022 and 2021, are summarized as follows: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2022 2021 2022 2021 Investment securities available for sale Proceeds from sales $ 107,740 $ 12,617 $ 107,740 $ 12,617 Gross realized gains on sales 716 377 716 377 Gross realized losses on sales (817) — (817) — The table below presents a rollforward by security type for the three and six months ended June 30, 2022 and 2021 of the allowance for credit losses on investment securities available for sale held at period end: (dollars in thousands) Mortgage-backed securities - non-agency State and municipal securities Corporate securities Total Changes in allowance for credit losses on investment securities available for sale: For the three months ended June 30, 2022 Balance, beginning of period $ — $ — $ — $ — Current-period provision for expected credit losses — — — — Balance, end of period $ — $ — $ — $ — For the six months ended June 30, 2022 Balance, beginning of period $ — $ — $ 221 $ 221 Current-period provision for expected credit losses — — (221) (221) Balance, end of period $ — $ — $ — $ — For the three months ended June 30, 2021 Balance, beginning of period $ 28 $ 28 $ 460 $ 516 Current-period provision for expected credit losses 85 (28) (247) (190) Balance, end of period $ 113 $ — $ 213 $ 326 For the six months ended June 30, 2021 Balance, beginning of period $ — $ 29 $ 337 $ 366 Current-period provision for expected credit losses 113 (29) (124) (40) Balance, end of period $ 113 $ — $ 213 $ 326 Unrealized losses and fair values for investment securities available for sale as of June 30, 2022 and December 31, 2021, for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized as follows: June 30, 2022 Less than 12 Months 12 Months or more Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Investment securities available for sale U.S. Treasury securities $ 63,996 $ 4,394 $ — $ — $ 63,996 $ 4,394 U.S. government sponsored entities and U.S. agency securities 13,042 1,296 12,777 2,223 25,819 3,519 Mortgage-backed securities - agency 319,343 35,977 103,015 20,610 422,358 56,587 Mortgage-backed securities - non-agency 17,947 2,297 4,830 1,044 22,777 3,341 State and municipal securities 58,112 6,667 6,118 1,090 64,230 7,757 Corporate securities 100,250 6,383 2,869 109 103,119 6,492 Total available for sale securities $ 572,690 $ 57,014 $ 129,609 $ 25,076 $ 702,299 $ 82,090 December 31, 2021 Less than 12 Months 12 Months or more Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Investment securities available for sale U.S. Treasury securities $ 64,917 $ 430 $ — $ — $ 64,917 $ 430 U.S. government sponsored entities and U.S. agency securities 17,487 263 9,432 568 26,919 831 Mortgage-backed securities - agency 317,372 6,633 9,051 268 326,423 6,901 Mortgage-backed securities - non-agency 24,095 381 — — 24,095 381 State and municipal securities 27,324 270 2,538 96 29,862 366 Corporate securities — — — — — — Total available for sale securities $ 451,195 $ 7,977 $ 21,021 $ 932 $ 472,216 $ 8,909 For all of the above investment securities, the unrealized losses were generally due to changes in interest rates, and unrealized losses were considered to be temporary as the fair value is expected to recover as the securities approach their respective maturity dates. At June 30, 2022, 326 investment securities available for sale had unrealized losses with aggregate depreciation of 10.47% from their amortized cost basis. The unrealized losses related principally to the fluctuations in the current interest rate environment. In analyzing an issuer’s financial condition, we consider whether the securities are issued by the federal government or its agencies and whether downgrades by bond rating agencies have occurred. The Company does not intend to sell and it is likely that the Company will not be required to sell the securities prior to their anticipated recovery. Equity Securities Equity securities are recorded at fair value and totaled $8.7 million and $9.5 million at June 30, 2022 and December 31, 2021 , respectively. During both the three and six months ended June 30, 2022 and 2021, there were no sales of equity securities. Net unrealized gains and losses on equity securities for the three and six months ended June 30, 2022 and 2021 are summarized below: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2022 2021 2022 2021 Equity securities Net unrealized (losses) gains $ (425) $ 145 $ (947) $ 226 Net unrealized gains and losses on equity securities were recorded in other income in the consolidated statements of income. |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
LOANS | LOANS The following table presents total loans outstanding by portfolio class, as of June 30, 2022 and December 31, 2021: (dollars in thousands) June 30, December 31, Commercial: Commercial $ 747,782 $ 770,670 Commercial other 643,476 679,518 Commercial real estate: Commercial real estate non-owner occupied 1,480,030 1,105,333 Commercial real estate owner occupied 524,587 469,658 Multi-family 265,749 171,875 Farmland 65,289 69,962 Construction and land development 203,955 193,749 Total commercial loans 3,930,868 3,460,765 Residential real estate: Residential first lien 279,628 274,412 Other residential 60,475 63,739 Consumer: Consumer 98,558 106,008 Consumer other 986,813 896,597 Lease financing 439,202 423,280 Total loans, gross $ 5,795,544 $ 5,224,801 Total loans include net deferred loan costs of $3.8 million and $4.6 million at June 30, 2022 and December 31, 2021, respectively, and unearned discounts of $49.7 million and $46.1 million within the lease financing portfolio at June 30, 2022 and December 31, 2021, respectively. At June 30, 2022, the Company had residential real estate loans held for sale totaling $5.3 million compared to commercial real estate and residential real estate loans held for sale totaling $32.0 million at December 31, 2021. The Company sold commercial real estate, residential real estate and consumer loans with proceeds totaling $100.4 million and $203.5 million during the three and six months ended June 30, 2022, respectively, and $161.9 million and $494.5 million during the comparable periods in 2021, respectively. Classifications of Loan Portfolio The Company monitors and assesses the credit risk of its loan portfolio using the classes set forth below. These classes also represent the segments by which the Company monitors the performance of its loan portfolio and estimates its allowance for credit losses on loans. Commercial —Loans to varying types of businesses, including municipalities, school districts and nonprofit organizations, for the purpose of supporting working capital, operational needs and term financing of equipment. Repayment of such loans is generally provided through operating cash flows of the business. Commercial loans are predominately secured by equipment, inventory, accounts receivable, and other sources of repayment. Paycheck Protection Program ("PPP") loans of $6.4 million and $52.5 million as of June 30, 2022 and December 31, 2021, respectively, and commercial FHA warehouse lines of $23.9 million and $91.9 million as of June 30, 2022 and December 31, 2021, respectively, were included in this classification. Commercial real estate —Loans secured by real estate occupied by the borrower for ongoing operations, including loans to borrowers engaged in agricultural production, and non-owner occupied real estate leased to one or more tenants, including commercial office, industrial, special purpose, retail and multi-family residential real estate loans. Construction and land development —Secured loans for the construction of business and residential properties. Real estate construction loans often convert to a real estate commercial loan at the completion of the construction period. Secured development loans are made to borrowers for the purpose of infrastructure improvements to vacant land to create finished marketable residential and commercial lots/land. Most land development loans are originated with the intention that the loans will be paid through the sale of developed lots/land by the developers within twelve months of the completion date. Interest reserves may be established on real estate construction loans. Residential real estate —Loans secured by residential properties that generally do not qualify for secondary market sale; however, the risk to return and/or overall relationship are considered acceptable to the Company. This category also includes loans whereby consumers utilize equity in their personal residence, generally through a second mortgage, as collateral to secure the loan. Consumer —Loans to consumers primarily for the purpose of home improvements or acquiring automobiles, recreational vehicles and boats. Consumer loans consist of relatively small amounts that are spread across many individual borrowers. Lease financing —Our equipment leasing business provides financing leases to varying types of businesses, nationwide, for purchases of business equipment and software. The financing is secured by a first priority interest in the financed assets and generally requires monthly payments. Commercial, commercial real estate, and construction and land development loans are collectively referred to as the Company’s commercial loan portfolio, while residential real estate, consumer loans and lease financing receivables are collectively referred to as the Company’s other loan portfolio. We have extended loans to certain of our directors, executive officers, principal shareholders and their affiliates. These loans were made in the ordinary course of business upon normal terms, including collateralization and interest rates prevailing at the time. The aggregate loans outstanding to the Company's directors, executive officers, principal shareholders and their affiliates totaled $23.1 million and $13.9 million at June 30, 2022 and December 31, 2021, respectively. The new loans, other additions, repayments and other reductions for the three and six months ended June 30, 2022 and 2021, are summarized as follows: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2022 2021 2022 2021 Beginning balance $ 23,374 $ 19,372 $ 13,869 $ 19,693 New loans and other additions — 404 9,805 1,024 Repayments and other reductions (277) (1,014) (577) (1,955) Ending balance $ 23,097 $ 18,762 $ 23,097 $ 18,762 The following table represents, by loan portfolio segment, a summary of changes in the allowance for credit losses on loans for the three and six months ended June 30, 2022 and 2021: Commercial Loan Portfolio Other Loan Portfolio (dollars in thousands) Commercial Commercial Construction Residential Consumer Lease Total Changes in allowance for credit losses on loans for the three months ended June 30, 2022: Balance, beginning of period $ 12,621 $ 26,277 $ 816 $ 3,288 $ 2,672 $ 7,264 $ 52,938 Provision for credit losses on loans (111) 4,284 279 133 415 (259) 4,741 Charge-offs (60) (2,625) — (46) (191) (499) (3,421) Recoveries 298 (62) 6 41 98 259 640 Balance, end of period $ 12,748 $ 27,874 $ 1,101 $ 3,416 $ 2,994 $ 6,765 $ 54,898 Changes in allowance for credit losses on loans for the six months ended June 30, 2022: Balance, beginning of period $ 14,375 $ 22,993 $ 972 $ 2,695 $ 2,558 $ 7,469 $ 51,062 Provision for credit losses on loans 278 7,728 123 717 672 (645) 8,873 Charge-offs (2,214) (2,852) (6) (150) (496) (705) (6,423) Recoveries 309 5 12 154 260 646 1,386 Balance, end of period $ 12,748 $ 27,874 $ 1,101 $ 3,416 $ 2,994 $ 6,765 $ 54,898 Changes in allowance for credit losses on loans for the three months ended June 30, 2021: Balance, beginning of period $ 17,339 $ 31,821 $ 1,239 $ 3,981 $ 2,271 $ 6,036 $ 62,687 Provision for credit losses on loans 5 (168) 414 (177) 84 (158) — Charge-offs (2,634) (946) (1) (141) (218) (516) (4,456) Recoveries 139 11 81 20 155 27 433 Balance, end of period $ 14,849 $ 30,718 $ 1,733 $ 3,683 $ 2,292 $ 5,389 $ 58,664 Changes in allowance for credit losses on loans for the six months ended June 30, 2021: Balance, beginning of period $ 19,851 $ 25,465 $ 1,433 $ 3,929 $ 2,338 $ 7,427 $ 60,443 Provision for credit losses on loans (2,016) 6,959 425 (109) 137 (1,446) 3,950 Charge-offs (3,140) (1,719) (272) (251) (460) (769) (6,611) Recoveries 154 13 147 114 277 177 882 Balance, end of period $ 14,849 $ 30,718 $ 1,733 $ 3,683 $ 2,292 $ 5,389 $ 58,664 The Company utilizes a combination of models which measure probability of default and loss given default methodology in determining expected future credit losses. The probability of default is the risk that the borrower will be unable or unwilling to repay its debt in full or on time. The risk of default is derived by analyzing the obligor’s capacity to repay the debt in accordance with contractual terms. Probability of default is generally associated with financial characteristics such as inadequate cash flow to service debt, declining revenues or operating margins, high leverage, declining or marginal liquidity, and the inability to successfully implement a business plan. In addition to these quantifiable factors, the borrower’s willingness to repay also must be evaluated. The probability of default is forecasted, for most commercial and retail loans, using a regression model that determines the likelihood of default within the twelve month time horizon. The regression model uses forward-looking economic forecasts including variables such as gross domestic product, housing price index, and real disposable income to predict default rates. The forecasting method for the equipment financing portfolio assumes a rolling twelve month average of the through-the-cycle default mean, to predict default rates for the twelve month time horizon. The loss given default component is the percentage of defaulted loan balance that is ultimately charged off. As a method for estimating the allowance, a form of migration analysis is used that combines the estimated probability of loans experiencing default events and the losses ultimately associated with the loans experiencing those defaults. Multiplying one by the other gives the Company its loss rate, which is then applied to the loan portfolio balance to determine expected future losses. Within the model, the loss given default approach produces segmented loss given default estimates using a loss curve methodology, which is based on historical net losses from charge-off and recovery information. The main principle of a loss curve model is that the loss follows a steady timing schedule based on how long the defaulted loan has been on the books. The Company’s expected loss estimate is anchored in historical credit loss experience, with an emphasis on all available portfolio data. The Company’s historical look-back period includes January 2012 through the current period, on a monthly basis. When historical credit loss experience is not sufficient for a specific portfolio, the Company may supplement its own portfolio data with external models or data. Historical data is evaluated in multiple components of the expected credit loss, including the reasonable and supportable forecast and the post-reversion period of each loan segment. The historical experience is used to infer probability of default and loss given default in the reasonable and supportable forecast period. In the post-reversion period, long-term average loss rates are segmented by loan pool. Qualitative reserves reflect management’s overall estimate of the extent to which current expected credit losses on collectively evaluated loans will differ from historical loss experience. The analysis takes into consideration other analytics performed within the organization, such as enterprise and concentration management, along with other credit-related analytics as deemed appropriate. Management attempts to quantify qualitative reserves whenever possible. The Company segments the loan portfolio into pools based on the following risk characteristics: financial asset type, collateral type, loan characteristics, credit characteristics, outstanding loan balances, contractual terms and prepayment assumptions, industry of borrower and concentrations, historical or expected credit loss patterns, and reasonable and supportable forecast periods. Within the probability of default segmentation, credit metrics are identified to further segment the financial assets. The Company utilizes risk ratings for the commercial portfolios and days past due for the consumer and the lease financing portfolios. The Company has defined five transitioning risk states for each asset pool within the expected credit loss model. The below table illustrates the transition matrix: Risk state Commercial loans Consumer loans and 1 0-5 0-14 2 6 15-29 3 7 30-59 4 8 60-89 Default 9+ and nonaccrual 90+ and nonaccrual Expected Credit Losses In calculating expected credit losses, the Company individually evaluates loans on nonaccrual status with a balance greater than $500,000, loans past due 90 days or more and still accruing interest, and loans that do not share risk characteristics with other loans in the pool. The following table presents amortized cost basis of individually evaluated loans on nonaccrual status as of June 30, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 (dollars in thousands) Nonaccrual with allowance Nonaccrual with no allowance Total nonaccrual Nonaccrual with allowance Nonaccrual with no allowance Total nonaccrual Commercial: Commercial $ 4,528 $ 2,275 $ 6,803 $ 4,681 $ 2,275 $ 6,956 Commercial other 2,950 — 2,950 4,467 — 4,467 Commercial real estate: Commercial real estate non-owner occupied 1,848 19,003 20,851 1,914 9,912 11,826 Commercial real estate owner occupied 2,627 1,340 3,967 2,164 1,340 3,504 Multi-family 177 9,056 9,233 201 1,967 2,168 Farmland 150 — 150 155 — 155 Construction and land development 251 — 251 83 — 83 Total commercial loans 12,531 31,674 44,205 13,665 15,494 29,159 Residential real estate: Residential first lien 3,685 639 4,324 3,116 832 3,948 Other residential 933 — 933 836 — 836 Consumer: Consumer 97 — 97 110 — 110 Lease financing 1,399 — 1,399 1,510 — 1,510 Total loans $ 18,645 $ 32,313 $ 50,958 $ 19,237 $ 16,326 $ 35,563 There was no interest income recognized on nonaccrual loans during the three and six months ended June 30, 2022 and 2021 while the loans were in nonaccrual status. Additional interest income that would have been recorded on nonaccrual loans had they been current in accordance with their original terms was $0.5 million and $1.3 million for the three and six months ended June 30, 2022, respectively, and $0.7 million and $1.4 million for the three and six months ended June 30, 2021, respectively. Collateral Dependent Financial Assets A collateral dependent financial loan relies solely on the operation or sale of the collateral for repayment. In evaluating the overall risk associated with a loan, the Company considers character, overall financial condition and resources, and payment record of the borrower; the prospects for support from any financially responsible guarantors; and the nature and degree of protection provided by the cash flow and value of any underlying collateral. However, as other sources of repayment become inadequate over time, the significance of the collateral’s value increases and the loan may become collateral dependent. The table below presents the value of individually evaluated, collateral dependent loans by loan class, for borrowers experiencing financial difficulty, as of June 30, 2022 and December 31, 2021: Type of Collateral (dollars in thousands) Real Estate Blanket Lien Equipment Total June 30, 2022 Commercial Commercial $ — $ 4,890 $ — $ 4,890 Commercial other — — — — Commercial real estate Non-owner occupied 20,062 — — 20,062 Owner occupied 1,336 — — 1,336 Multi-family 1,905 — — 1,905 Total collateral dependent loans $ 23,303 $ 4,890 $ — $ 28,193 December 31, 2021 Commercial Commercial $ — $ 5,402 $ — $ 5,402 Commercial other — — 502 502 Commercial real estate Non-owner occupied 11,604 — — 11,604 Owner occupied 1,336 — — 1,336 Multi-family 1,969 — — 1,969 Total collateral dependent loans $ 14,909 $ 5,402 $ 502 $ 20,813 The aging status of the recorded investment in loans by portfolio as of June 30, 2022 was as follows: Accruing loans (dollars in thousands) 30-59 60-89 days past due Past due Total Nonaccrual Current Total Commercial: Commercial $ 143 $ 92 $ — $ 235 $ 6,803 $ 740,744 $ 747,782 Commercial other 3,136 2,425 — 5,561 2,950 634,965 643,476 Commercial real estate: Commercial real estate non-owner occupied 741 26 — 767 20,851 1,458,412 1,480,030 Commercial real estate owner occupied 76 338 — 414 3,967 520,206 524,587 Multi-family 162 — — 162 9,233 256,354 265,749 Farmland 190 — — 190 150 64,949 65,289 Construction and land development — — — — 251 203,704 203,955 Total commercial loans 4,448 2,881 — 7,329 44,205 3,879,334 3,930,868 Residential real estate: Residential first lien 64 318 — 382 4,324 274,922 279,628 Other residential 109 41 — 150 933 59,392 60,475 Consumer: Consumer 121 6 — 127 97 98,334 98,558 Consumer other 3,711 2,258 — 5,969 — 980,844 986,813 Lease financing 1,654 601 — 2,255 1,399 435,548 439,202 Total loans $ 10,107 $ 6,105 $ — $ 16,212 $ 50,958 $ 5,728,374 $ 5,795,544 The aging status of the recorded investment in loans by portfolio as of December 31, 2021 was as follows: Accruing loans (dollars in thousands) 30-59 60-89 Past due Total Nonaccrual Current Total Commercial: Commercial $ 283 $ 1,082 $ — $ 1,365 $ 6,956 $ 762,349 $ 770,670 Commercial other 2,402 2,110 5 4,517 4,467 670,534 679,518 Commercial real estate: Commercial real estate non-owner occupied 585 243 — 828 11,826 1,092,679 1,105,333 Commercial real estate owner occupied 232 730 — 962 3,504 465,192 469,658 Multi-family — — — — 2,168 169,707 171,875 Farmland — 26 — 26 155 69,781 69,962 Construction and land development 195 195 — 390 83 193,276 193,749 Total commercial loans 3,697 4,386 5 8,088 29,159 3,423,518 3,460,765 Residential real estate: Residential first lien 113 285 — 398 3,948 270,066 274,412 Other residential 456 151 — 607 836 62,296 63,739 Consumer: Consumer 127 20 — 147 110 105,751 106,008 Consumer other 4,423 2,358 1 6,782 — 889,815 896,597 Lease financing 1,253 245 — 1,498 1,510 420,272 423,280 Total loans $ 10,069 $ 7,445 $ 6 $ 17,520 $ 35,563 $ 5,171,718 $ 5,224,801 Troubled Debt Restructurings ("TDRs") Loans modified as TDRs for commercial and commercial real estate loans generally consist of allowing commercial borrowers to defer scheduled principal payments and make interest only payments for a specified period of time at the stated interest rate of the original loan agreement or lower payments due to a modification of the loans’ contractual terms. TDRs are transferred to nonaccrual status when it is probable that any remaining principal and interest payments due on the loan will not be collected in accordance with the contractual terms of the loan. TDRs that subsequently default are individually evaluated for impairment at the time of default. The outstanding balance of modifications made as a result of COVID, that were not considered TDRs under the Cornavirus Aid, Relief, and Economic Security Act, as amended by Section 541 of the Consolidated Appropriations Act, totaled $13.3 million at December 31, 2021. There were no such TDRs at June 30, 2022. The Company’s TDRs are identified on a case-by-case basis in connection with the ongoing loan collection processes. The following table presents TDRs by loan portfolio as of June 30, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 (dollars in thousands) Accruing (1) Non-accrual (2) Total Accruing (1) Non-accrual (2) Total Commercial $ 1,826 $ 550 $ 2,376 $ 833 $ 1,422 $ 2,255 Commercial real estate 115 2,851 2,966 1,522 3,302 4,824 Construction and land development 32 — 32 37 — 37 Residential real estate 2,917 1,188 4,105 3,128 784 3,912 Consumer 157 — 157 98 — 98 Lease financing 878 84 962 1,394 241 1,635 Total loans $ 5,925 $ 4,673 $ 10,598 $ 7,012 $ 5,749 $ 12,761 (1) These loans are still accruing interest. (2) These loans are included in non-accrual loans in the preceding tables. The allowance for credit losses on TDRs totaled $0.5 million and $0.7 million as of June 30, 2022 and December 31, 2021, respectively. The Company had no unfunded commitments in connection with TDRs at June 30, 2022 and December 31, 2021. The following table presents a summary of loans by portfolio that were restructured during the three and six months ended June 30, 2022 and 2021. There were no loans modified as TDRs within the previous twelve months that subsequently defaulted during the three and six months ended June 30, 2022 or 2021: Commercial loan portfolio Other loan portfolio (dollars in thousands) Commercial Commercial Construction Residential Consumer Lease Total For the three months ended June 30, 2022 Troubled debt restructurings: Number of loans 2 1 — 2 1 — 6 Pre-modification outstanding balance $ 705 $ 6 $ — $ 176 $ 66 $ — $ 953 Post-modification outstanding balance 705 6 — 176 66 — 953 For the six months ended June 30, 2022 Troubled debt restructurings: Number of loans 4 1 — 5 3 2 15 Pre-modification outstanding balance $ 1,324 $ 6 $ — $ 204 $ 107 $ 84 $ 1,725 Post-modification outstanding balance 1,324 6 — 204 105 84 1,723 For the three months ended June 30, 2021 Troubled debt restructurings: Number of loans 5 1 — 1 1 1 9 Pre-modification outstanding balance $ 609 $ 1,432 $ — $ 136 $ 19 $ 505 $ 2,701 Post-modification outstanding balance 609 1,432 — 139 19 505 2,704 For the six months ended June 30, 2021 Troubled debt restructurings: Number of loans 5 1 1 3 3 1 14 Pre-modification outstanding balance $ 609 $ 1,432 $ 49 $ 191 $ 50 $ 505 $ 2,836 Post-modification outstanding balance 609 1,432 40 195 50 505 2,831 Credit Quality Monitoring The Company maintains loan policies and credit underwriting standards as part of the process of managing credit risk. These standards include making loans generally within the Company’s four main regions, which include eastern, northern and southern Illinois and the St. Louis metropolitan area. In addition our specialty finance division does nationwide bridge lending for FHA and HUD developments and originates loans for multifamily, assisted and senior living and multi-use properties. Our equipment leasing business provides financing to business customers across the country. The Company has a loan approval process involving underwriting and individual and group loan approval authorities to consider credit quality and loss exposure at loan origination. The loans in the Company’s commercial loan portfolio are risk rated at origination based on the grading system set forth below. All loan authority is based on the aggregate credit to a borrower and its related entities. The Company’s consumer loan portfolio is primarily comprised of both secured and unsecured loans that are relatively small and are evaluated at origination on a centralized basis against standardized underwriting criteria. The ongoing measurement of credit quality of the consumer loan portfolio is largely done on an exception basis. If payments are made on schedule, as agreed, then no further monitoring is performed. However, if delinquency occurs, the delinquent loans are turned over to the Company’s Consumer Collections Group for resolution. Credit quality for the entire consumer loan portfolio is measured by the periodic delinquency rate, nonaccrual amounts and actual losses incurred. Loans in the commercial loan portfolio tend to be larger and more complex than those in the other loan portfolio, and therefore, are subject to more intensive monitoring. All loans in the commercial loan portfolio have an assigned relationship manager, and most borrowers provide periodic financial and operating information that allows the relationship managers to stay abreast of credit quality during the life of the loans. The risk ratings of loans in the commercial loan portfolio are reassessed at least annually, with loans below an acceptable risk rating reassessed more frequently and reviewed by various individuals within the Company at least quarterly. The Company maintains a centralized independent loan review function that monitors the approval process and ongoing asset quality of the loan portfolio, including the accuracy of loan grades. The Company also maintains an independent appraisal review function that participates in the review of all appraisals obtained by the Company. Credit Quality Indicators The Company uses a ten grade risk rating system to monitor the ongoing credit quality of its commercial loan portfolio. These loan grades rank the credit quality of a borrower by measuring liquidity, debt capacity, and coverage and payment behavior as shown in the borrower’s financial statements. The risk grades also measure the quality of the borrower’s management and the repayment support offered by any guarantors. The Company considers all loans with Risk Grades 1 -6 as acceptable credit risks and structures and manages such relationships accordingly. Periodic financial and operating data combined with regular loan officer interactions are deemed adequate to monitor borrower performance. Loans with Risk Grades of 7 are considered "watch credits" categorized as special mention and the frequency of loan officer contact and receipt of financial data is increased to stay abreast of borrower performance. Loans with Risk Grades of 8 - 10 are considered problematic and require special care. Risk Grade 8 is categorized as substandard, 9 as substandard - nonaccrual and 10 as doubtful. Further, loans with Risk Grades of 7 - 10 are managed regularly through a number of processes, procedures and committees, including oversight by a loan administration committee comprised of executive and senior management of the Company, which includes highly structured reporting of financial and operating data, intensive loan officer intervention and strategies to exit, as well as potential management by the Company's Special Assets Group. Loans not graded in the commercial loan portfolio are monitored by aging status and payment activity. The following tables present the recorded investment of the commercial loan portfolio by risk category as of June 30, 2022 and December 31, 2021: June 30, 2022 Term Loans (dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving loans Total Commercial Commercial Acceptable credit quality $ 42,773 $ 104,834 $ 72,395 $ 30,577 $ 19,403 $ 53,815 $ 394,649 $ 718,446 Special mention — 113 — 325 1,279 282 1,887 3,886 Substandard — 364 — 631 1,822 4,260 11,570 18,647 Substandard – nonaccrual — 340 — 370 174 383 5,536 6,803 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 42,773 105,651 72,395 31,903 22,678 58,740 413,642 747,782 Commercial other Acceptable credit quality 132,949 182,457 131,480 77,820 20,303 359 79,421 624,789 Special mention — 210 1,818 9,055 3,185 — — 14,268 Substandard — — — 61 — — 1,408 1,469 Substandard – nonaccrual 422 712 26 1,216 574 — — 2,950 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 133,371 183,379 133,324 88,152 24,062 359 80,829 643,476 Commercial real estate Non-owner occupied Acceptable credit quality 453,041 433,844 143,804 113,828 19,577 187,187 3,203 1,354,484 Special mention 1,439 26 3,476 15,341 313 7,211 — 27,806 Substandard 663 109 — 37,065 1,641 37,161 250 76,889 Substandard – nonaccrual — 744 859 5,879 10,246 3,123 — 20,851 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 455,143 434,723 148,139 172,113 31,777 234,682 3,453 1,480,030 Owner occupied Acceptable credit quality 97,287 138,775 68,158 45,755 34,857 115,714 4,548 505,094 Special mention — 141 — 175 160 1,824 27 2,327 Substandard 47 4,187 585 2,901 — 5,182 297 13,199 Substandard – nonaccrual — 402 320 157 333 2,755 — 3,967 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 97,334 143,505 69,063 48,988 35,350 125,475 4,872 524,587 Multi-family Acceptable credit quality 138,000 52,078 19,800 475 24,927 16,031 1,597 252,908 Special mention — — — — — — — — Substandard — — — — — 3,608 — 3,608 Substandard – nonaccrual — 969 — 114 — 8,150 — 9,233 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 138,000 53,047 19,800 589 24,927 27,789 1,597 265,749 Farmland Acceptable credit quality 3,337 16,384 13,958 4,126 3,158 21,255 1,751 63,969 Special mention — — — — — 162 — 162 Substandard — 15 — 166 13 633 181 1,008 Substandard – nonaccrual — — — — 101 — 49 150 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 3,337 16,399 13,958 4,292 3,272 22,050 1,981 65,289 Construction and land development Acceptable credit quality 49,052 67,643 46,495 8,052 4,102 2,363 24,033 201,740 Special mention — — — — — 220 — 220 Substandard — — — — — — — — Substandard – nonaccrual — — — 222 — 29 — 251 Doubtful — — — — — — — — Not graded 189 1,516 35 — — 4 — 1,744 Subtotal 49,241 69,159 46,530 8,274 4,102 2,616 24,033 203,955 Total Acceptable credit quality 916,439 996,015 496,090 280,633 126,327 396,724 509,202 3,721,430 Special mention 1,439 490 5,294 24,896 4,937 9,699 1,914 48,669 Substandard 710 4,675 585 40,824 3,476 50,844 13,706 114,820 Substandard – nonaccrual 422 3,167 1,205 7,958 11,428 14,440 5,585 44,205 Doubtful — — — — — — — — Not graded 189 1,516 35 — — 4 — 1,744 Total commercial loans $ 919,199 $ 1,005,863 $ 503,209 $ 354,311 $ 146,168 $ 471,711 $ 530,407 $ 3,930,868 December 31, 2021 Term Loans (dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving loans Total Commercial Commercial Acceptable credit quality $ 108,490 $ 78,071 $ 50,458 $ 20,045 $ 27,405 $ 35,856 $ 417,920 $ 738,245 Special mention 186 57 198 6,154 2 316 1,517 8,430 Substandard 380 372 1,934 1,868 64 4,322 8,099 17,039 Substandard – nonaccrual 52 — 612 177 242 169 5,704 6,956 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 109,108 78,500 53,202 28,244 27,713 40,663 433,240 770,670 Commercial other Acceptable credit quality 264,282 167,326 101,083 29,981 303 341 88,198 651,514 Special mention — 1,929 10,676 3,966 — — 3,252 19,823 Substandard 688 — 62 341 — — 2,623 3,714 Substandard – nonaccrual 10 158 3,894 384 — — 21 4,467 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 264,980 169,413 115,715 34,672 303 341 94,094 679,518 Commercial real estate Non-owner occupied Acceptable credit quality 441,483 154,379 134,507 20,524 55,207 182,465 5,258 993,823 Special mention 26 6,341 14,177 2,296 711 2,272 — 25,823 Substandard 6,196 817 8,825 20,572 14,857 22,344 250 73,861 Substandard – nonaccrual 169 992 6,206 — 195 4,264 — 11,826 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 447,874 162,529 163,715 43,392 70,970 211,345 5,508 1,105,333 Owner occupied Acceptable credit quality 141,084 69,415 47,187 35,974 30,583 98,442 1,886 424,571 Special mention 150 24 187 161 13,087 4,540 32 18,181 Substandard 4,192 1,127 10,810 205 297 6,466 305 23,402 Substandard – nonaccrual — 318 129 336 72 2,649 — 3,504 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 145,426 70,884 58,313 36,676 44,039 112,097 2,223 469,658 Multi-family Acceptable credit quality 88,329 20,080 1,973 25,450 1,414 18,642 2,241 158,129 Special mention — 451 — — — — — 451 Substandard 988 — — — — 10,139 — 11,127 Substandard – nonaccrual — — 123 — — 2,045 — 2,168 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 89,317 20,531 2,096 25,450 1,414 30,826 2,241 171,875 Farmland Acceptable credit quality 15,689 14,966 3,931 3,162 7,996 19,305 1,196 66,245 Special mention — 66 1,236 145 153 240 — 1,840 Substandard 371 76 166 211 — 898 — 1,722 Substandard – nonaccrual — — — 105 — — 50 155 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 16,060 15,108 5,333 3,623 8,149 20,443 1,246 69,962 Construction and land development Acceptable credit quality 65,053 65,274 19,269 10,029 2,511 3,841 19,452 185,429 Special mention — — 5,014 — — 221 — 5,235 Substandard — 1,336 — — — — — 1,336 Substandard – nonaccrual — — 43 — — 40 — 83 Doubtful — — — — — — — — Not graded 1,465 37 — — — 164 — 1,666 Subtotal 66,518 66,647 24,326 10,029 2,511 4,266 19,452 193,749 Total Acceptable credit quality 1,124,410 569,511 358,408 145,165 125,419 358,892 536,151 3,217,956 Special mention 362 8,868 31,488 12,722 13,953 7,589 4,801 79,783 Substandard 12,815 3,728 21,797 23,197 15,218 44,169 11,277 132,201 Substandard – nonaccrual 231 1,468 11,007 1,002 509 9,167 5,775 29,159 Doubtful — — — — — — — — Not graded 1,465 37 — — — 164 — 1,666 Total commercial loans $ 1,139,283 $ 583,612 $ 422,700 $ 182,086 $ 155,099 $ 419,981 $ 558,004 $ 3,460,765 The Company evaluates the credit quality of its other loan portfolios, which includes residential real estate, consumer and lease financing loans, based primarily on the aging status of the loan and payment activity. Accordingly, loans on nonaccrual status, loans past due 90 days or more and still accruing interest, and loans modified under troubled debt restructurings are considered to be nonperforming for purposes of credit quality evaluation. The following tables present the recorded investment of our other loan portfolio based on the credit risk profile of loans that are performing and loans that are nonperforming as of Jun |
PREMISES, EQUIPMENT AND LEASES
PREMISES, EQUIPMENT AND LEASES | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
PREMISES, EQUIPMENT AND LEASES | P REMISES, E QUIPMENT A ND L EASES A summary of premises and equipment at June 30, 2022 and December 31, 2021 is as follows: (dollars in thousands) June 30, December 31, Land $ 15,948 $ 15,696 Buildings and improvements 68,625 67,143 Furniture and equipment 33,761 33,545 Lease right-of-use assets 7,670 8,428 Total 126,004 124,812 Accumulated depreciation (48,336) (45,592) Premises and equipment, net $ 77,668 $ 79,220 Depreciation expense for the three and six months ended June 30, 2022 was $1.2 million and $2.4 million, respectively, and $1.4 million and $2.9 million for the three and six months ended June 30, 2021, respectively. The Company has entered into operating leases, primarily for banking offices and operating facilities, which have remaining lease terms of 1 month to 11 years, some of which may include options to extend the lease terms for up to an additional 10 years. The options to extend are included if they are reasonably certain to be exercised. The operating lease liabilities of the Company were $9.7 million and $10.7 million as of June 30, 2022 and December 31, 2021, respectively. Information related to operating leases for the three and six months ended June 30, 2022 and 2021 was as follows: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2022 2021 2022 2021 Operating lease cost $ 532 $ 514 $ 1,040 $ 1,037 Operating cash flows from leases 630 603 1,236 1,386 Right-of-use assets obtained in exchange for lease obligations — 609 121 689 Right-of-use assets derecognized due to terminations or impairment — (88) — (210) Weighted average remaining lease term 7.4 years 7.9 years 7.4 years 7.9 years Weighted average discount rate 2.89 % 2.86 % 2.89 % 2.86 % The projected minimum rental payments under the terms of the leases as of June 30, 2022 were as follows: (dollars in thousands) Amount Year ending December 31: 2022 remaining $ 1,028 2023 2,105 2024 1,799 2025 894 2026 763 Thereafter 4,251 Total future minimum lease payments 10,840 Less imputed interest (1,131) Total operating lease liabilities $ 9,709 |
LOAN SERVICING RIGHTS
LOAN SERVICING RIGHTS | 6 Months Ended |
Jun. 30, 2022 | |
Transfers and Servicing [Abstract] | |
LOAN SERVICING RIGHTS | L OAN S ERVICING R IGHTS A summary of loan servicing rights at June 30, 2022 and December 31, 2021 is as follows: June 30, 2022 December 31, 2021 Serviced Loans Carrying Value Serviced Loans Carrying Value Commercial FHA $ 2,456,760 $ 24,603 $ 2,650,531 $ 27,386 SBA 46,997 660 50,043 774 Residential 275,673 616 302,618 705 Total $ 2,779,430 $ 25,879 $ 3,003,192 $ 28,865 Commercial FHA Mortgage Loan Servicing Changes in our commercial FHA loan servicing rights for the three and six months ended June 30, 2022 and 2021 are summarized as follows: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2022 2021 2022 2021 Loan servicing rights: Balance, beginning of period $ 26,111 $ 35,997 $ 27,386 $ 38,322 Amortization (639) (780) (1,299) (1,563) Refinancing fee received from third party — (337) (221) (604) Permanent impairment (869) (1,148) (1,263) (2,423) Balance, end of period $ 24,603 $ 33,732 $ 24,603 $ 33,732 Fair value: At beginning of period $ 27,941 $ 35,997 $ 28,368 $ 38,322 At end of period 26,865 34,255 26,865 34,255 The fair value of commercial FHA loan servicing rights is determined using key assumptions, representing both general economic and other published information, including the assumed earnings rates related to escrow and replacement reserves, and the weighted average characteristics of the commercial portfolio, including the prepayment rate and discount rate. The prepayment rate considers many factors as appropriate, including lockouts, balloons, prepayment penalties, interest rate ranges, delinquencies and geographic location. The discount rate is based on an average pre-tax internal rate of return utilized by market participants in pricing the servicing portfolio. Significant increases or decreases in any one of these assumptions would result in a significantly lower or higher fair value measurement. The weighted average prepayment rate was 8.21% and 8.24% at June 30, 2022 and December 31, 2021, respectively, while the weighted average discount rate was 11.69% and 11.87% for the same periods, respectively. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | G OODWILL AND I NTANGIBLE A SSETS The carrying amount of goodwill by segment at June 30, 2022 and December 31, 2021 is summarized as follows: (dollars in thousands) June 30, December 31, Banking $ 157,158 $ 157,158 Wealth management 4,746 4,746 Total goodwill $ 161,904 $ 161,904 The Company’s intangible assets, consisting of core deposit and customer relationship intangibles, as of June 30, 2022 and December 31, 2021 are summarized as follows: June 30, 2022 December 31, 2021 (dollars in thousands) Gross Accumulated Total Gross Accumulated Total Core deposit intangibles $ 58,913 $ (42,664) $ 16,249 $ 57,012 $ (40,603) $ 16,409 Customer relationship intangibles 15,918 (8,608) 7,310 15,918 (7,953) 7,965 Total intangible assets $ 74,831 $ (51,272) $ 23,559 $ 72,930 $ (48,556) $ 24,374 In conjunction with the FNBC branch acquisition, the Company recorded $1.9 million of core deposit intangibles, which are being amortized on an accelerated basis over an estimated useful life of 10 years. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | D ERIVATIVE I NSTRUMENTS As part of the Company’s overall management of interest rate sensitivity, the Company utilizes derivative instruments to minimize significant, unanticipated earnings fluctuations caused by interest rate volatility, including interest rate lock commitments, forward commitments to sell mortgage-backed securities, cash flow hedges and interest rate swap contracts. Interest Rate Lock Commitments / Forward Commitments to Sell Mortgage-Backed Securities The Company issues interest rate lock commitments on originated fixed-rate commercial and residential real estate loans to be sold. The interest rate lock commitments and loans held for sale are hedged with forward contracts to sell mortgage-backed securities. The fair value of the interest rate lock commitments and forward contracts to sell mortgage-backed securities are included in other assets or other liabilities in the consolidated balance sheets. Changes in the fair value of derivative financial instruments are recognized in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income. The following table summarizes the interest rate lock commitments and forward commitments to sell mortgage-backed securities held by the Company, their notional amount and estimated fair values at June 30, 2022 and December 31, 2021: Notional amount Fair value gain (dollars in thousands) June 30, December 31, June 30, December 31, Derivative instruments (included in other assets): Interest rate lock commitments $ 22,704 $ 66,216 $ 91 $ 410 Forward commitments to sell mortgage-backed securities 8,213 60,427 — — Total $ 30,917 $ 126,643 $ 91 $ 410 Notional amount Fair value loss (dollars in thousands) June 30, December 31, June 30, December 31, Derivative instruments (included in other liabilities): Forward commitments to sell mortgage-backed securities $ 9,500 $ 18,362 $ 11 $ 19 During the three and six months ended June 30, 2022, the Company recognized net losses of $0.4 million and $0.3 million, respectively, on derivative instruments in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income. During the three and six months ended June 30, 2021, the Company recognized net losses of $0.5 million and $1.0 million, respectively, on derivative instruments in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income. Cash Flow Hedges In the first quarter of 2022, the Company entered into interest rate swap agreements, which qualify as cash flow hedges, to manage the risk of changes in future cash flows due to interest rate fluctuations. The following table summarizes the Company's receive-fixed, pay-variable interest rate swaps on certain pools of loans indexed to prime at June 30, 2022: (dollars in thousands) June 30, Notional Amount $ 200,000 Average remaining life in years 3.79 years Weighted average pay rate 0.64 % Weighted average receive rate 5.48 % Quarterly, the effectiveness evaluation is based on the fluctuation of the variable interest the Company receives from the customers for the loans as compared to the fixed interest rate received from the counterparty. The Company has $140.0 million notional amount of future-starting receive-fixed, pay-variable interest rate swaps on certain FHLB or other fixed-rate advances. These swaps are effective beginning in April 2023. The Company pays or receives the net interest amount quarterly based on the respective hedge agreement and includes the amount as part of FHLB advances interest expense on the consolidated statements of income. At June 30, 2022, the $8.2 million fair value of the cash flow hedges was included in other assets on the consolidated balance sheets. At December 31, 2021, the $5.1 million fair value of cash flow hedges was included in other liabilities on the consolidated balance sheets. The tax effected amounts of $5.9 million and $3.7 million at June 30, 2022 and December 31, 2021, respectively, were included in accumulated other comprehensive (loss) income. There were no amounts recorded in the consolidated statements of income for the three and six months ended June 30, 2022, related to ineffectiveness. Interest Rate Swap Contracts not Designated as Hedges The Company entered into interest rate swap contracts sold to commercial customers who wish to modify their interest rate sensitivity. These swaps are offset by contracts simultaneously purchased by the Company from other financial dealer institutions with mirror-image terms. Because of the mirror-image terms of the offsetting contracts, in addition to collateral provisions which mitigate the impact of non-performance risk, changes in the fair value subsequent to initial recognition have a minimal effect on earnings. These derivative contracts do not qualify for hedge accounting. The notional amounts of the customer derivative instruments and the offsetting counterparty derivative instruments were $7.7 million and $7.9 million at June 30, 2022 and December 31, 2021, respectively. The fair value of the customer derivative instruments and the offsetting counterparty derivative instruments was $0.2 million and $0.4 million at June 30, 2022 and December 31, 2021, respectively, which are included in other assets and other liabilities, respectively, on the consolidated balance sheets. |
DEPOSITS
DEPOSITS | 6 Months Ended |
Jun. 30, 2022 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS The following table summarizes the classification of deposits as of June 30, 2022 and December 31, 2021: (dollars in thousands) June 30, December 31, Noninterest-bearing demand $ 1,972,261 $ 2,245,701 Interest-bearing: Checking 1,808,885 1,663,021 Money market 1,027,547 869,067 Savings 740,364 679,115 Time 635,381 653,744 Total deposits $ 6,184,438 $ 6,110,648 |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BORROWINGS | S HORT -T ERM B ORROWINGS The following table presents the distribution of short-term borrowings and related weighted average interest rates as of June 30, 2022 and December 31, 2021: Repurchase agreements (dollars in thousands) As of and for the Six Months Ended As of and for the Year Ended December 31, 2021 Outstanding at period-end $ 67,689 $ 76,803 Average amount outstanding 64,642 68,986 Maximum amount outstanding at any month end 76,807 77,497 Weighted average interest rate: During period 0.14 % 0.12 % End of period 0.14 % 0.13 % Securities sold under agreements to repurchase, which are classified as secured borrowings, generally mature within one to four days from the transaction date. Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction, which represents the amount of the Bank’s obligation. The Bank may be required to provide additional collateral based on the fair value of the underlying securities. Investment securities with a carrying amount of $63.9 million and $78.3 million at June 30, 2022 and December 31, 2021, respectively, were pledged for securities sold under agreements to repurchase. The Company had available lines of credit of $22.7 million and $55.9 million at June 30, 2022 and December 31, 2021, respectively, from the Federal Reserve Discount Window. The lines are collateralized by a collateral agreement with respect to a pool of commercial real estate loans totaling $25.4 million and $64.8 million at June 30, 2022 and December 31, 2021, respectively. There were no outstanding borrowings under these lines at June 30, 2022 and December 31, 2021. At June 30, 2022, the Company had available federal funds lines of credit totaling $45.0 million. These lines of credit were unused at June 30, 2022. |
FHLB ADVANCES AND OTHER BORROWI
FHLB ADVANCES AND OTHER BORROWINGS | 6 Months Ended |
Jun. 30, 2022 | |
FHLB ADVANCES AND OTHER BORROWINGS | |
FHLB ADVANCES AND OTHER BORROWINGS | FHLB A DVANCES AND O THER B ORROWINGS The following table summarizes our FHLB advances and other borrowings as of June 30, 2022 and December 31, 2021: (dollars in thousands) June 30, December 31, Midland States Bancorp, Inc. Revolving line of credit - variable interest rate equivalent to Daily Simple SOFR plus 1.60% $ — $ — Series G redeemable preferred stock - 171 shares at $1,000 per share — 171 Midland States Bank FHLB advances – putable fixed rate at rates averaging 2.35% and 1.48% at June 30, 2022 and December 31, 2021, respectively – maturing through December 2024 110,000 210,000 FHLB advances –SOFR floater at rates averaging 3.14% and 1.67% at June 30, 2022 and December 31, 2021, respectively – maturing in October 2023 100,000 100,000 FHLB advances – Short term fixed rate at rates averaging 1.63% at June 30, 2022 – maturing in July 2022 75,000 — Total FHLB advances and other borrowings $ 285,000 $ 310,171 The Company’s advances from the FHLB are collateralized by a blanket collateral agreement of qualifying mortgage and home equity line of credit loans and certain commercial real estate loans totaling approximately $2.59 billion and $2.10 billion at June 30, 2022 and December 31, 2021, respectively. On October 12, 2021, the Company entered into a loan agreement with another bank for a revolving line of credit in the original principal amount of up to $15.0 million. The loan matures on October 11, 2022 and has a variable rate of interest equal to the Daily Simple Secured Overnight Financing Rate ("SOFR") plus 1.60%. The Company is required to make quarterly interest payments with the principal balance due at maturity. The loan agreement contains financial covenants that |
SUBORDINATED DEBT
SUBORDINATED DEBT | 6 Months Ended |
Jun. 30, 2022 | |
Subordinated Borrowings [Abstract] | |
SUBORDINATED DEBT | S UBORDINATED D EBT The following table summarizes the Company’s subordinated debt as of June 30, 2022 and December 31, 2021: (dollars in thousands) June 30, December 31, Subordinated debt issued June 2015 – fixed interest rate of 6.50%, $550 - maturing June 18, 2025 $ 547 $ 546 Subordinated debt issued October 2017 – fixed interest rate of 6.25% through October 2022 and a variable interest rate equivalent to three month LIBOR plus 4.23% thereafter, $40,000 - maturing October 15, 2027 39,658 39,626 Subordinated debt issued September 2019 – fixed interest rate of 5.00% through September 2024 and a variable interest rate equivalent to three month SOFR plus 3.61% thereafter, $72,750 - maturing September 30, 2029 72,171 72,042 Subordinated debt issued September 2019 – fixed interest rate of 5.50% through September 2029 and a variable interest rate equivalent to three month SOFR plus 4.05% thereafter, $27,250 - maturing September 30, 2034 26,901 26,877 Total subordinated debt $ 139,277 $ 139,091 The subordinated debentures may be included in Tier 2 capital (with certain limitations applicable) under current regulatory guidelines and interpretations. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | E ARNINGS P ER C OMMON S HARE respective periods. Presented below are the calculations for basic and diluted earnings per common share for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands, except per share data) 2022 2021 2022 2021 Net income $ 21,883 $ 20,124 $ 42,632 $ 38,662 Common shareholder dividends (6,397) (6,265) (12,786) (12,502) Unvested restricted stock award dividends (73) (62) (148) (126) Undistributed earnings to unvested restricted stock awards (171) (134) (334) (259) Undistributed earnings to common shareholders $ 15,242 $ 13,663 $ 29,364 $ 25,775 Basic Distributed earnings to common shareholders $ 6,397 $ 6,265 $ 12,786 $ 12,502 Undistributed earnings to common shareholders 15,242 13,663 29,364 25,775 Total common shareholders earnings, basic $ 21,639 $ 19,928 $ 42,150 $ 38,277 Diluted Distributed earnings to common shareholders $ 6,397 $ 6,265 $ 12,786 $ 12,502 Undistributed earnings to common shareholders 15,242 13,663 29,364 25,775 Total common shareholders earnings 21,639 19,928 42,150 38,277 Add back: Undistributed earnings reallocated from unvested restricted stock awards 1 — 1 1 Total common shareholders earnings, diluted $ 21,640 $ 19,928 $ 42,151 $ 38,278 Weighted average common shares outstanding, basic 22,305,590 22,591,127 22,290,486 22,557,728 Options 55,229 86,388 65,450 75,312 Weighted average common shares outstanding, diluted 22,360,819 22,677,515 22,355,936 22,633,040 Basic earnings per common share $ 0.97 $ 0.88 $ 1.89 $ 1.70 Diluted earnings per common share 0.97 0.88 1.89 1.69 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | F AIR V ALUE OF F INANCIAL I NSTRUMENTS Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date reflecting assumptions that a market participant would use when pricing an asset or liability. The hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows: • Level 1: Unadjusted quoted prices for identical assets or liabilities traded in active markets. • Level 2: Significant other observable inputs other than Level 1, including quoted prices for similar assets and liabilities in active markets, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data. • Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Assets and liabilities measured and recorded at fair value, including financial assets for which the Company has elected the fair value option, on a recurring and nonrecurring basis at June 30, 2022 and December 31, 2021, are summarized below: June 30, 2022 (dollars in thousands) Carrying Quoted prices Significant Significant unobservable Assets and liabilities measured at fair value on a recurring basis: Assets Investment securities available for sale: U.S. Treasury securities $ 63,996 $ 63,996 $ — $ — U.S. government sponsored entities and U.S. agency securities 30,303 — 30,303 — Mortgage-backed securities - agency 423,838 — 423,838 — Mortgage-backed securities - non-agency 22,777 — 22,777 — State and municipal securities 106,688 — 106,688 — Corporate securities 112,938 — 112,938 — Equity securities 8,738 8,738 — — Loans held for sale 5,298 — 5,298 — Derivative assets 8,459 — 8,459 — Total $ 783,035 $ 72,734 $ 710,301 $ — Liabilities Derivative liabilities $ 189 $ — $ 189 $ — Total $ 189 $ — $ 189 $ — Assets measured at fair value on a non-recurring basis: Loan servicing rights $ 25,879 $ — $ — $ 25,879 Nonperforming loans 50,958 — 44,599 6,359 Other real estate owned 11,131 — 11,131 — Assets held for sale 1,231 — 1,231 — December 31, 2021 (dollars in thousands) Carrying Quoted prices Significant Significant unobservable Assets and liabilities measured at fair value on a recurring basis: Assets Investment securities available for sale: U.S. Treasury securities $ 64,917 $ 64,917 $ — $ — U.S. government sponsored entities and U.S. agency securities 33,817 — 33,817 — Mortgage-backed securities - agency 440,270 — 440,270 — Mortgage-backed securities - non-agency 28,706 — 28,706 — State and municipal securities 143,099 — 143,099 — Corporate securities 195,794 — 194,859 935 Equity securities 9,529 9,529 — — Loans held for sale 32,045 — 32,045 — Derivative assets 5,883 — 5,883 — Total $ 954,060 $ 74,446 $ 878,679 $ 935 Liabilities Derivative liabilities $ 397 $ — $ 397 $ — Total $ 397 $ — $ 397 $ — Assets measured at fair value on a non-recurring basis: Loan servicing rights $ 28,865 $ — $ — $ 28,865 Nonperforming loans 36,542 24,358 6,129 6,055 Other real estate owned 12,059 — 12,059 — Assets held for sale 2,284 — 2,284 — The following table provides a reconciliation of activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2022 2021 2022 2021 Balance, beginning of period $ 935 $ 959 $ 935 $ 959 Transferred to level 2 (935) — (935) — Total realized in earnings (1) 6 4 11 6 Total unrealized in other comprehensive income (2) — 49 — 49 Net settlements (principal and interest) (6) (4) (11) (6) Balance, end of period $ — $ 1,008 $ — $ 1,008 (1) Amounts included in interest income from investment securities taxable in the consolidated statements of income. (2) Represents change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period. The following table provides quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured at fair value on a recurring basis at December 31, 2021: (dollars in thousands) Fair value Valuation Unobservable Range (weighted average) (1) December 31, 2021 Corporate securities $ 935 Consensus pricing Net market price 0.0% - 7.0% (4.5)% (1) Unobservable inputs were weighted by the relative fair value of the instruments. The significant unobservable inputs used in the fair value measurement of the Company’s corporate securities is net market price. The corporate securities are not actively traded, and as a result, fair value is determined utilizing third-party valuation services through consensus pricing. Significant changes in any of the inputs in isolation would result in a significant change to the fair value measurement. Generally, net market price increases when market interest rates decline and declines when market interest rates increase. The following table presents losses recognized on assets measured on a nonrecurring basis for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2022 2021 2022 2021 Loan servicing rights $ 869 $ 1,148 $ 1,263 $ 2,423 Mortgage servicing rights held for sale — 143 — 143 Nonperforming loans 10,779 4,295 11,366 6,272 Other real estate owned 67 314 404 417 Assets held for sale — — — — Total losses on assets measured on a nonrecurring basis $ 11,715 $ 5,900 $ 13,033 $ 9,255 The following tables present quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured on a nonrecurring basis at June 30, 2022 and December 31, 2021: (dollars in thousands) Fair value Valuation Unobservable Range (weighted average) (1) June 30, 2022 Loan servicing rights: Commercial MSR $ 26,865 Discounted cash flow Prepayment speed 8.00% - 18.00% (8.21%) Discount rate 10.00% - 27.00% (11.69%) SBA servicing rights 660 Discounted cash flow Prepayment speed 14.06% - 16.58% (16.00%) Discount rate 10.00% - 12.00% (11.00%) Residential servicing rights 616 Discounted cash flow Prepayment speed 7.86% -26.28% (8.58%) Discount rate 9.00% - 11.50% (10.13%) December 31, 2021 Loan servicing rights: Commercial MSR $ 28,368 Discounted cash flow Prepayment speed 8.00% - 18.00% (8.24%) Discount rate 10.00% - 27.00% (11.87%) SBA servicing rights 898 Discounted cash flow Prepayment speed 12.27% - 14.14% (13.88%) Discount rate 10.00% - 12.00% (11.00%) Residential servicing rights 705 Discounted cash flow Prepayment speed 11.94% - 27.48% (14.94%) Discount rate 9.00% - 11.50% (10.25%) (1) Unobservable inputs were weighted by the relative fair value of the instruments. ASC Topic 825, Financial Instruments , requires disclosure of the estimated fair value of certain financial instruments and the methods and significant assumptions used to estimate such fair values. Additionally, certain financial instruments and all nonfinancial instruments are excluded from the applicable disclosure requirements. The Company has elected the fair value option for newly originated commercial and residential loans held for sale. These loans are intended for sale and are hedged with derivative instruments. We have elected the fair value option to mitigate accounting mismatches in cases where hedge accounting is complex and to achieve operational simplification. The following table presents the difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected as of June 30, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 (dollars in thousands) Aggregate Difference Contractual Aggregate Difference Contractual Commercial loans held for sale $ — $ — $ — $ 19,230 $ — $ 19,230 Residential loans held for sale 5,298 212 5,086 12,815 584 12,231 Total loans held for sale $ 5,298 $ 212 $ 5,086 $ 32,045 $ 584 $ 31,461 The following table presents the amount of gains (losses) from fair value changes included in income before income taxes for financial assets carried at fair value for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2022 2021 2022 2021 Commercial loans held for sale $ (18) $ (23) $ — $ (67) Residential loans held for sale 104 320 (277) (63) Total loans held for sale $ 86 $ 297 $ (277) $ (130) The carrying values and estimated fair value of certain financial instruments not carried at fair value at June 30, 2022 and December 31, 2021 were as follows: June 30, 2022 (dollars in thousands) Carrying Fair value Quoted prices Significant Significant Assets Cash and due from banks $ 264,173 $ 264,173 $ 264,173 $ — $ — Federal funds sold 5,944 5,944 5,944 — — Loans, net 5,740,646 5,648,295 — — 5,648,295 Accrued interest receivable 16,552 16,552 — 16,552 — Liabilities Deposits $ 6,184,438 $ 6,171,119 $ — $ 6,171,119 $ — Short-term borrowings 67,689 67,689 — 67,689 — FHLB and other borrowings 285,000 286,309 — 286,309 — Subordinated debt 139,277 139,063 — 139,063 — Trust preferred debentures 49,674 55,348 — 55,348 — December 31, 2021 (dollars in thousands) Carrying Fair value Quoted prices Significant Significant Assets Cash and due from banks $ 673,297 $ 673,297 $ 673,297 $ — $ — Federal funds sold 7,074 7,074 7,074 — — Loans, net 5,173,739 5,221,886 — — 5,221,886 Accrued interest receivable 19,470 19,470 — 19,470 — Liabilities Deposits $ 6,110,648 $ 6,109,077 $ — $ 6,109,077 $ — Short-term borrowings 76,803 76,803 — 76,803 — FHLB and other borrowings 310,171 317,464 — 317,464 — Subordinated debt 139,091 148,386 — 148,386 — Trust preferred debentures 49,374 57,827 — 57,827 — In accordance with our adoption of ASU 2016-1 in 2019, the methods utilized to measure fair value of financial instruments at June 30, 2022 and December 31, 2021 represent an approximation of exit price; however, an actual exit price may differ. |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND CREDIT RISK | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND CREDIT RISK | C OMMITMENTS , C ONTINGENCIES AND C REDIT R ISK The spread of the COVID-19 virus had an impact on our operations as of June 30, 2022 and December 31, 2021, and the Company expects that the virus will continue to have an impact on the business, financial condition, and results of operations of the Company and its customers. The COVID-19 pandemic, and governmental policy responses, caused changes in the behavior of customers, businesses, and their employees, including illness, quarantines, social distancing practices, cancellation of events and travel, business and school shutdowns, reduction in commercial activity and financial transactions, supply chain interruptions, increased unemployment, and overall economic and financial market instability. Future effects, including additional actions taken by federal, state, and local governments to contain COVID-19 or treat its impact, are unknown. If these effects worsen, it may adversely impact several industries within our geographic footprint and impair the ability of our customers to fulfill their contractual obligations to the Company. This could cause the Company to experience a material adverse effect on our business operations, asset valuations, financial condition, and results of operations. Material adverse impacts may include all or a combination of valuation impairments on our intangible assets, investments, loans, loan servicing rights, deferred tax assets, or counter-party risk derivatives. In the normal course of business, there are outstanding various contingent liabilities such as claims and legal actions, which are not reflected in the consolidated financial statements. No material losses are anticipated as a result of these actions or claims. We are a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The contract amounts of those instruments reflect the extent of involvement we have in particular classes of financial instruments. Our exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank used the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The commitments are principally tied to variable rates. Loan commitments as of June 30, 2022 and December 31, 2021 were as follows: (dollars in thousands) June 30, December 31, Commitments to extend credit $ 1,206,523 $ 994,709 Financial guarantees – standby letters of credit 26,553 14,325 The Company establishes a mortgage repurchase liability to reflect management’s estimate of losses on loans for which the Company could have a repurchase obligation based on the volume of loans sold in 2022 and years prior, borrower default expectations, historical investor repurchase demand and appeals success rates, and estimated loss severity. Loans repurchased from investors are initially recorded at fair value, which becomes the Company’s new accounting basis. Any difference between the loan’s fair value and the outstanding principal amount is charged or credited to the mortgage repurchase liability, as appropriate. Subsequent to repurchase, such loans are carried in loans receivable. There were no losses as a result of make-whole requests and loan repurchases for the three and six months ended June 30, 2022 and 2021. The liability for unresolved repurchase demands totaled $0.2 million and $0.2 million at June 30, 2022 and December 31, 2021, respectively. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | S EGMENT I NFORMATION Selected business segment financial information for the three and six months ended June 30, 2022 and 2021 were as follows: (dollars in thousands) Banking Wealth Other Total Three Months Ended June 30, 2022 Net interest income (expense) $ 63,963 $ — $ (2,629) $ 61,334 Provision for credit losses 5,441 — — 5,441 Noninterest income 8,495 6,143 (25) 14,613 Noninterest expense 37,362 4,091 (114) 41,339 Income (loss) before income taxes (benefit) 29,655 2,052 (2,540) 29,167 Income taxes (benefit) 7,545 573 (834) 7,284 Net income (loss) $ 22,110 $ 1,479 $ (1,706) $ 21,883 Total assets $ 7,422,518 $ 29,042 $ (15,748) $ 7,435,812 Six Months Ended June 30, 2022 Net interest income (expense) $ 123,316 $ — $ (5,155) $ 118,161 Provision for credit losses 9,608 — — 9,608 Noninterest income 16,901 13,282 43 30,226 Noninterest expense 73,609 8,766 (152) 82,223 Income (loss) before income taxes (benefit) 57,000 4,516 (4,960) 56,556 Income taxes (benefit) 14,260 1,263 (1,599) 13,924 Net income (loss) $ 42,740 $ 3,253 $ (3,361) $ 42,632 Total assets $ 7,422,518 $ 29,042 $ (15,748) $ 7,435,812 Three Months Ended June 30, 2021 Net interest income (expense) $ 52,908 $ — $ (2,798) $ 50,110 Provision for credit losses (455) — — (455) Noninterest income 10,868 6,529 20 17,417 Noninterest expense 45,084 4,164 (307) 48,941 Income (loss) before income taxes (benefit) 19,147 2,365 (2,471) 19,041 Income taxes (benefit) (913) 663 (833) (1,083) Net income (loss) $ 20,060 $ 1,702 $ (1,638) $ 20,124 Total assets $ 6,642,895 $ 30,913 $ (43,798) $ 6,630,010 Six Months Ended June 30, 2021 Net interest income (expense) $ 107,626 $ — $ (5,648) $ 101,978 Provision for credit losses 3,110 — — 3,110 Noninterest income 19,732 12,460 41 32,233 Noninterest expense 80,600 8,165 (745) 88,020 Income (loss) before income taxes (benefit) 43,648 4,295 (4,862) 43,081 Income taxes (benefit) 4,876 1,203 (1,660) 4,419 Net income (loss) $ 38,772 $ 3,092 $ (3,202) $ 38,662 Total assets $ 6,642,895 $ 30,913 $ (43,798) $ 6,630,010 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | R EVENUE F ROM C ONTRACTS WITH C USTOMERS The Company’s revenue from contracts with customers in the scope of Topic 606 is recognized within noninterest income in the consolidated statements of income. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and six months ended June 30, 2022 and 2021. Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2022 2021 2022 2021 Noninterest income - in-scope of Topic 606 Wealth management revenue: Trust management/administration fees $ 5,139 $ 4,971 $ 11,121 $ 9,430 Investment advisory fees — 423 — 876 Investment brokerage fees 543 485 1,141 886 Other 461 650 1,020 1,268 Service charges on deposit accounts: Nonsufficient fund fees 1,524 1,202 2,856 2,343 Other 780 714 1,516 1,399 Interchange revenues 3,590 3,797 6,870 7,172 Other income: Merchant services revenue 399 396 755 733 Other 671 1,418 1,439 2,209 Noninterest income - out-of-scope of Topic 606 1,506 3,361 3,508 5,917 Total noninterest income $ 14,613 $ 17,417 $ 30,226 $ 32,233 Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and investment securities. In addition, certain noninterest income streams such as commercial FHA revenue, residential mortgage banking revenue and gain on sales of investment securities, net are also not in scope of Topic 606. Topic 606 is applicable to noninterest income streams such as wealth management revenue, service charges on deposit accounts, interchange revenue, gain on sales of other real estate owned, and certain other noninterest income streams. The noninterest income streams considered in-scope by Topic 606 are discussed below. Wealth Management Revenue Wealth management revenue is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company also earns investment advisory fees through its SEC registered investment advisory subsidiary. The Company’s performance obligation in both of these instances is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and contractually determined fee schedules. Payment is generally received a few days after month end through a direct charge to each customer’s account. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. Fees generated from transactions executed by the Company’s third party broker dealer are remitted by them to the Company on a monthly basis for that month’s transactional activity. Service Charges on Deposit Accounts Service charges on deposit accounts consist of fees received under depository agreements with customers to provide access to deposited funds, serve as custodian of deposited funds, and when applicable, pay interest on deposits. These service charges primarily include non-sufficient fund fees and other account related service charges. Non-sufficient fund fees are earned when a depositor presents an item for payment in excess of available funds, and the Company, at its discretion, provides the necessary funds to complete the transaction. The Company generates other account related service charge revenue by providing depositors proper safeguard and remittance of funds as well as by delivering optional services for depositors, such as check imaging or treasury management, that are performed upon the depositor’s request. The Company’s performance obligation for the proper safeguard and remittance of funds, monthly account analysis and any other monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Payment for service charges on deposit accounts is typically received immediately or in the following month through a direct charge to a customer’s account. Interchange Revenue Interchange revenue includes debit / credit card income and ATM user fees. Card income is primarily comprised of interchange fees earned for standing ready to authorize and providing settlement on card transactions processed through the MasterCard interchange network. The levels and structure of interchange rates are set by MasterCard and can vary based on cardholder purchase volumes. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with completion of the Company’s performance obligation, the transaction processing services provided to the cardholder. Payment is typically received immediately or in the following month. ATM fees are primarily generated when a Company cardholder withdraws funds from a non-Company ATM or a non-Company cardholder withdraws funds from a Company ATM. The Company satisfies its performance obligation for each transaction at the point in time when the ATM withdrawal is processed. Other Noninterest Income The other noninterest income revenue streams within the scope of Topic 606 consist of merchant services revenue, safe deposit box rentals, wire transfer fees, paper statement fees, check printing commissions, gain on sales of other real estate owned, and other noninterest related fees. Revenue from the Company’s merchant services business consists principally of transaction and account management fees charged to merchants for the electronic processing of transactions. These fees are net of interchange fees paid to the credit card issuing bank, card company assessments, and revenue sharing amounts. Account management fees are considered earned at the time the merchant’s transactions are processed or other services are performed. Fees related to the other components of other noninterest income within the scope of Topic 606 are largely transactional based, and therefore, the Company’s performance obligation is satisfied and related revenue recognized, at the point in time the customer uses the selected service to execute a transaction. |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements of the Company are unaudited and should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission (the “SEC”) on February 25, 2022. The consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”) and conform to predominant practices within the banking industry. A discussion of these policies can be found in Note 1 – Summary of Significant Accounting Policies included in the Company's 2021 Annual Report on Form 10-K. Certain reclassifications of 2021 amounts have been made to conform to the 2022 presentation. Management has evaluated subsequent events for potential recognition or disclosure. Operating results for the three and six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022 or any other period. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the parent company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. Assets held for customers in a fiduciary or agency capacity are not assets of the Company and, accordingly, other than trust cash on deposit with the Bank, are not included in the accompanying unaudited balance sheets. |
Accounting Guidance Issued But Not Yet Adopted | Accounting Guidance Issued But Not Yet Adopted FASB ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting – In March 2020, the FASB issued ASU No. 2020-04 which provides optional expedients and exceptions for accounting related to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. ASU 2020-04 was effective upon issuance and generally can be applied through December 31, 2022. The Company has been monitoring its volume of commercial loans tied to LIBOR. In 2021, the Company began prioritizing SOFR as the preferred alternative reference rate with plans to cease booking LIBOR based commitments after the end of 2021. Loans with a maturity after June 2023 are being reviewed and monitored to ensure there is appropriate fallback language in place when LIBOR is no longer published. Loans with a maturity date before that time should naturally mature and be re-underwritten with the alternative index rate. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, which addresses questions about whether Topic 848 can be applied to derivative instruments that do not reference a rate that is expected to be discontinued but that use an interest rate for margining, discounting, or contract price alignment that is expected to be modified as a result of reference rate reform, commonly referred to as the "discounting transition". The amendments clarify that certain optional expedients and exceptions in Topic 848 do apply to derivatives that are affected by the discounting transition. The amendments in ASU 2021-01 are effective immediately. The Company believes the adoption of this guidance on activities subsequent to December 31, 2021 through December 31, 2022 will not have a material impact on the consolidated financial statements. FASB ASU No. 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures – In March 2022, the FASB issued ASU No. 2022-02, which 1) eliminates the accounting guidance for troubled debt restructurings ("TDRs") by creditors while enhancing the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty; and 2) requires that an entity disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022 and the amendments should be applied prospectively, although the entity has the option to apply a modified retrospective transition method for the recognition and measurement of TDRs, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. The Company is currently evaluating the impact of adopting the new guidance on its consolidated financial statements. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | A summary of the fair value of the assets acquired and liabilities assumed are included in the table below. (dollars in thousands) FNBC Assets acquired: Cash and cash equivalents $ 60,275 Loans 16,632 Premises and equipment, net 950 Accrued interest receivable 36 Intangible assets 1,901 Total assets acquired $ 79,794 Liabilities assumed: Deposits $ 79,794 Total liabilities assumed $ 79,794 Intangible assets: Core deposit intangible $ 1,901 Estimated useful life 10 years |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment Securities Classified as Available for Sale | Investment securities available for sale at June 30, 2022 and December 31, 2021 were as follows: June 30, 2022 (dollars in thousands) Amortized Gross Gross Allowance for credit losses Fair Investment securities available for sale U.S. Treasury securities $ 68,390 $ — $ 4,394 $ — $ 63,996 U.S. government sponsored entities and U.S. agency securities 33,756 66 3,519 — 30,303 Mortgage-backed securities - agency 480,408 17 56,587 — 423,838 Mortgage-backed securities - non-agency 26,118 — 3,341 — 22,777 State and municipal securities 113,920 525 7,757 — 106,688 Corporate securities 119,374 56 6,492 — 112,938 Total available for sale securities $ 841,966 $ 664 $ 82,090 $ — $ 760,540 December 31, 2021 (dollars in thousands) Amortized Gross Gross Allowance for credit losses Fair Investment securities available for sale U.S. Treasury securities $ 65,347 $ — $ 430 $ — $ 64,917 U.S. government sponsored entities and U.S. agency securities 34,569 79 831 — 33,817 Mortgage-backed securities - agency 444,484 2,687 6,901 — 440,270 Mortgage-backed securities - non-agency 29,037 50 381 — 28,706 State and municipal securities 137,904 5,561 366 — 143,099 Corporate securities 193,354 3,128 467 221 195,794 Total available for sale securities $ 904,695 $ 11,505 $ 9,376 $ 221 $ 906,603 |
Debt Securities, Available-for-sale | The following is a summary of the amortized cost and fair value of the investment securities available for sale, by maturity, at June 30, 2022. Expected maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be prepaid without penalties. The maturities of all other investment securities available for sale are based on final contractual maturity. (dollars in thousands) Amortized Fair Investment securities available for sale Within one year $ 12,828 $ 12,898 After one year through five years 134,666 127,807 After five years through ten years 156,446 145,497 After ten years 31,500 27,723 Mortgage-backed securities 506,526 446,615 Total available for sale securities $ 841,966 $ 760,540 Proceeds and gross realized gains on sales of investment securities available for sale for the three and six months ended June 30, 2022 and 2021, are summarized as follows: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2022 2021 2022 2021 Investment securities available for sale Proceeds from sales $ 107,740 $ 12,617 $ 107,740 $ 12,617 Gross realized gains on sales 716 377 716 377 Gross realized losses on sales (817) — (817) — |
Allowance for Credit Loss Rollforward | The table below presents a rollforward by security type for the three and six months ended June 30, 2022 and 2021 of the allowance for credit losses on investment securities available for sale held at period end: (dollars in thousands) Mortgage-backed securities - non-agency State and municipal securities Corporate securities Total Changes in allowance for credit losses on investment securities available for sale: For the three months ended June 30, 2022 Balance, beginning of period $ — $ — $ — $ — Current-period provision for expected credit losses — — — — Balance, end of period $ — $ — $ — $ — For the six months ended June 30, 2022 Balance, beginning of period $ — $ — $ 221 $ 221 Current-period provision for expected credit losses — — (221) (221) Balance, end of period $ — $ — $ — $ — For the three months ended June 30, 2021 Balance, beginning of period $ 28 $ 28 $ 460 $ 516 Current-period provision for expected credit losses 85 (28) (247) (190) Balance, end of period $ 113 $ — $ 213 $ 326 For the six months ended June 30, 2021 Balance, beginning of period $ — $ 29 $ 337 $ 366 Current-period provision for expected credit losses 113 (29) (124) (40) Balance, end of period $ 113 $ — $ 213 $ 326 |
Schedule of Unrealized Losses and Fair Values for Investment Securities | Unrealized losses and fair values for investment securities available for sale as of June 30, 2022 and December 31, 2021, for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized as follows: June 30, 2022 Less than 12 Months 12 Months or more Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Investment securities available for sale U.S. Treasury securities $ 63,996 $ 4,394 $ — $ — $ 63,996 $ 4,394 U.S. government sponsored entities and U.S. agency securities 13,042 1,296 12,777 2,223 25,819 3,519 Mortgage-backed securities - agency 319,343 35,977 103,015 20,610 422,358 56,587 Mortgage-backed securities - non-agency 17,947 2,297 4,830 1,044 22,777 3,341 State and municipal securities 58,112 6,667 6,118 1,090 64,230 7,757 Corporate securities 100,250 6,383 2,869 109 103,119 6,492 Total available for sale securities $ 572,690 $ 57,014 $ 129,609 $ 25,076 $ 702,299 $ 82,090 December 31, 2021 Less than 12 Months 12 Months or more Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Investment securities available for sale U.S. Treasury securities $ 64,917 $ 430 $ — $ — $ 64,917 $ 430 U.S. government sponsored entities and U.S. agency securities 17,487 263 9,432 568 26,919 831 Mortgage-backed securities - agency 317,372 6,633 9,051 268 326,423 6,901 Mortgage-backed securities - non-agency 24,095 381 — — 24,095 381 State and municipal securities 27,324 270 2,538 96 29,862 366 Corporate securities — — — — — — Total available for sale securities $ 451,195 $ 7,977 $ 21,021 $ 932 $ 472,216 $ 8,909 |
Schedule of Unrealized Gain (Loss) | Net unrealized gains and losses on equity securities for the three and six months ended June 30, 2022 and 2021 are summarized below: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2022 2021 2022 2021 Equity securities Net unrealized (losses) gains $ (425) $ 145 $ (947) $ 226 |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Summary of Loans | The following table presents total loans outstanding by portfolio class, as of June 30, 2022 and December 31, 2021: (dollars in thousands) June 30, December 31, Commercial: Commercial $ 747,782 $ 770,670 Commercial other 643,476 679,518 Commercial real estate: Commercial real estate non-owner occupied 1,480,030 1,105,333 Commercial real estate owner occupied 524,587 469,658 Multi-family 265,749 171,875 Farmland 65,289 69,962 Construction and land development 203,955 193,749 Total commercial loans 3,930,868 3,460,765 Residential real estate: Residential first lien 279,628 274,412 Other residential 60,475 63,739 Consumer: Consumer 98,558 106,008 Consumer other 986,813 896,597 Lease financing 439,202 423,280 Total loans, gross $ 5,795,544 $ 5,224,801 |
Schedule Of Changes In Financing Receivable Related Parties Roll Forward | The new loans, other additions, repayments and other reductions for the three and six months ended June 30, 2022 and 2021, are summarized as follows: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2022 2021 2022 2021 Beginning balance $ 23,374 $ 19,372 $ 13,869 $ 19,693 New loans and other additions — 404 9,805 1,024 Repayments and other reductions (277) (1,014) (577) (1,955) Ending balance $ 23,097 $ 18,762 $ 23,097 $ 18,762 |
Summary of Changes in Allowance for Loan Losses, by Loan Portfolio | The following table represents, by loan portfolio segment, a summary of changes in the allowance for credit losses on loans for the three and six months ended June 30, 2022 and 2021: Commercial Loan Portfolio Other Loan Portfolio (dollars in thousands) Commercial Commercial Construction Residential Consumer Lease Total Changes in allowance for credit losses on loans for the three months ended June 30, 2022: Balance, beginning of period $ 12,621 $ 26,277 $ 816 $ 3,288 $ 2,672 $ 7,264 $ 52,938 Provision for credit losses on loans (111) 4,284 279 133 415 (259) 4,741 Charge-offs (60) (2,625) — (46) (191) (499) (3,421) Recoveries 298 (62) 6 41 98 259 640 Balance, end of period $ 12,748 $ 27,874 $ 1,101 $ 3,416 $ 2,994 $ 6,765 $ 54,898 Changes in allowance for credit losses on loans for the six months ended June 30, 2022: Balance, beginning of period $ 14,375 $ 22,993 $ 972 $ 2,695 $ 2,558 $ 7,469 $ 51,062 Provision for credit losses on loans 278 7,728 123 717 672 (645) 8,873 Charge-offs (2,214) (2,852) (6) (150) (496) (705) (6,423) Recoveries 309 5 12 154 260 646 1,386 Balance, end of period $ 12,748 $ 27,874 $ 1,101 $ 3,416 $ 2,994 $ 6,765 $ 54,898 Changes in allowance for credit losses on loans for the three months ended June 30, 2021: Balance, beginning of period $ 17,339 $ 31,821 $ 1,239 $ 3,981 $ 2,271 $ 6,036 $ 62,687 Provision for credit losses on loans 5 (168) 414 (177) 84 (158) — Charge-offs (2,634) (946) (1) (141) (218) (516) (4,456) Recoveries 139 11 81 20 155 27 433 Balance, end of period $ 14,849 $ 30,718 $ 1,733 $ 3,683 $ 2,292 $ 5,389 $ 58,664 Changes in allowance for credit losses on loans for the six months ended June 30, 2021: Balance, beginning of period $ 19,851 $ 25,465 $ 1,433 $ 3,929 $ 2,338 $ 7,427 $ 60,443 Provision for credit losses on loans (2,016) 6,959 425 (109) 137 (1,446) 3,950 Charge-offs (3,140) (1,719) (272) (251) (460) (769) (6,611) Recoveries 154 13 147 114 277 177 882 Balance, end of period $ 14,849 $ 30,718 $ 1,733 $ 3,683 $ 2,292 $ 5,389 $ 58,664 |
Schedule of Transitioning Risk States for Each Asset Pool within the Expected Credit Loss Model | The below table illustrates the transition matrix: Risk state Commercial loans Consumer loans and 1 0-5 0-14 2 6 15-29 3 7 30-59 4 8 60-89 Default 9+ and nonaccrual 90+ and nonaccrual |
Schedule of Amortized Cost Basis of Individually Evaluated Loans on Nonaccrual Status | The following table presents amortized cost basis of individually evaluated loans on nonaccrual status as of June 30, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 (dollars in thousands) Nonaccrual with allowance Nonaccrual with no allowance Total nonaccrual Nonaccrual with allowance Nonaccrual with no allowance Total nonaccrual Commercial: Commercial $ 4,528 $ 2,275 $ 6,803 $ 4,681 $ 2,275 $ 6,956 Commercial other 2,950 — 2,950 4,467 — 4,467 Commercial real estate: Commercial real estate non-owner occupied 1,848 19,003 20,851 1,914 9,912 11,826 Commercial real estate owner occupied 2,627 1,340 3,967 2,164 1,340 3,504 Multi-family 177 9,056 9,233 201 1,967 2,168 Farmland 150 — 150 155 — 155 Construction and land development 251 — 251 83 — 83 Total commercial loans 12,531 31,674 44,205 13,665 15,494 29,159 Residential real estate: Residential first lien 3,685 639 4,324 3,116 832 3,948 Other residential 933 — 933 836 — 836 Consumer: Consumer 97 — 97 110 — 110 Lease financing 1,399 — 1,399 1,510 — 1,510 Total loans $ 18,645 $ 32,313 $ 50,958 $ 19,237 $ 16,326 $ 35,563 |
Schedule of Collateral Dependent Loans | The table below presents the value of individually evaluated, collateral dependent loans by loan class, for borrowers experiencing financial difficulty, as of June 30, 2022 and December 31, 2021: Type of Collateral (dollars in thousands) Real Estate Blanket Lien Equipment Total June 30, 2022 Commercial Commercial $ — $ 4,890 $ — $ 4,890 Commercial other — — — — Commercial real estate Non-owner occupied 20,062 — — 20,062 Owner occupied 1,336 — — 1,336 Multi-family 1,905 — — 1,905 Total collateral dependent loans $ 23,303 $ 4,890 $ — $ 28,193 December 31, 2021 Commercial Commercial $ — $ 5,402 $ — $ 5,402 Commercial other — — 502 502 Commercial real estate Non-owner occupied 11,604 — — 11,604 Owner occupied 1,336 — — 1,336 Multi-family 1,969 — — 1,969 Total collateral dependent loans $ 14,909 $ 5,402 $ 502 $ 20,813 |
Summary of Aging Status of Recorded Investments in Loans by Portfolio (Excluding PCI Loans) | The aging status of the recorded investment in loans by portfolio as of June 30, 2022 was as follows: Accruing loans (dollars in thousands) 30-59 60-89 days past due Past due Total Nonaccrual Current Total Commercial: Commercial $ 143 $ 92 $ — $ 235 $ 6,803 $ 740,744 $ 747,782 Commercial other 3,136 2,425 — 5,561 2,950 634,965 643,476 Commercial real estate: Commercial real estate non-owner occupied 741 26 — 767 20,851 1,458,412 1,480,030 Commercial real estate owner occupied 76 338 — 414 3,967 520,206 524,587 Multi-family 162 — — 162 9,233 256,354 265,749 Farmland 190 — — 190 150 64,949 65,289 Construction and land development — — — — 251 203,704 203,955 Total commercial loans 4,448 2,881 — 7,329 44,205 3,879,334 3,930,868 Residential real estate: Residential first lien 64 318 — 382 4,324 274,922 279,628 Other residential 109 41 — 150 933 59,392 60,475 Consumer: Consumer 121 6 — 127 97 98,334 98,558 Consumer other 3,711 2,258 — 5,969 — 980,844 986,813 Lease financing 1,654 601 — 2,255 1,399 435,548 439,202 Total loans $ 10,107 $ 6,105 $ — $ 16,212 $ 50,958 $ 5,728,374 $ 5,795,544 The aging status of the recorded investment in loans by portfolio as of December 31, 2021 was as follows: Accruing loans (dollars in thousands) 30-59 60-89 Past due Total Nonaccrual Current Total Commercial: Commercial $ 283 $ 1,082 $ — $ 1,365 $ 6,956 $ 762,349 $ 770,670 Commercial other 2,402 2,110 5 4,517 4,467 670,534 679,518 Commercial real estate: Commercial real estate non-owner occupied 585 243 — 828 11,826 1,092,679 1,105,333 Commercial real estate owner occupied 232 730 — 962 3,504 465,192 469,658 Multi-family — — — — 2,168 169,707 171,875 Farmland — 26 — 26 155 69,781 69,962 Construction and land development 195 195 — 390 83 193,276 193,749 Total commercial loans 3,697 4,386 5 8,088 29,159 3,423,518 3,460,765 Residential real estate: Residential first lien 113 285 — 398 3,948 270,066 274,412 Other residential 456 151 — 607 836 62,296 63,739 Consumer: Consumer 127 20 — 147 110 105,751 106,008 Consumer other 4,423 2,358 1 6,782 — 889,815 896,597 Lease financing 1,253 245 — 1,498 1,510 420,272 423,280 Total loans $ 10,069 $ 7,445 $ 6 $ 17,520 $ 35,563 $ 5,171,718 $ 5,224,801 |
Summary of TDRs Loans | The Company’s TDRs are identified on a case-by-case basis in connection with the ongoing loan collection processes. The following table presents TDRs by loan portfolio as of June 30, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 (dollars in thousands) Accruing (1) Non-accrual (2) Total Accruing (1) Non-accrual (2) Total Commercial $ 1,826 $ 550 $ 2,376 $ 833 $ 1,422 $ 2,255 Commercial real estate 115 2,851 2,966 1,522 3,302 4,824 Construction and land development 32 — 32 37 — 37 Residential real estate 2,917 1,188 4,105 3,128 784 3,912 Consumer 157 — 157 98 — 98 Lease financing 878 84 962 1,394 241 1,635 Total loans $ 5,925 $ 4,673 $ 10,598 $ 7,012 $ 5,749 $ 12,761 (1) These loans are still accruing interest. (2) These loans are included in non-accrual loans in the preceding tables. The following table presents a summary of loans by portfolio that were restructured during the three and six months ended June 30, 2022 and 2021. There were no loans modified as TDRs within the previous twelve months that subsequently defaulted during the three and six months ended June 30, 2022 or 2021: Commercial loan portfolio Other loan portfolio (dollars in thousands) Commercial Commercial Construction Residential Consumer Lease Total For the three months ended June 30, 2022 Troubled debt restructurings: Number of loans 2 1 — 2 1 — 6 Pre-modification outstanding balance $ 705 $ 6 $ — $ 176 $ 66 $ — $ 953 Post-modification outstanding balance 705 6 — 176 66 — 953 For the six months ended June 30, 2022 Troubled debt restructurings: Number of loans 4 1 — 5 3 2 15 Pre-modification outstanding balance $ 1,324 $ 6 $ — $ 204 $ 107 $ 84 $ 1,725 Post-modification outstanding balance 1,324 6 — 204 105 84 1,723 For the three months ended June 30, 2021 Troubled debt restructurings: Number of loans 5 1 — 1 1 1 9 Pre-modification outstanding balance $ 609 $ 1,432 $ — $ 136 $ 19 $ 505 $ 2,701 Post-modification outstanding balance 609 1,432 — 139 19 505 2,704 For the six months ended June 30, 2021 Troubled debt restructurings: Number of loans 5 1 1 3 3 1 14 Pre-modification outstanding balance $ 609 $ 1,432 $ 49 $ 191 $ 50 $ 505 $ 2,836 Post-modification outstanding balance 609 1,432 40 195 50 505 2,831 |
Schedule of Loans Credit Equality Indicators | The following tables present the recorded investment of the commercial loan portfolio by risk category as of June 30, 2022 and December 31, 2021: June 30, 2022 Term Loans (dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving loans Total Commercial Commercial Acceptable credit quality $ 42,773 $ 104,834 $ 72,395 $ 30,577 $ 19,403 $ 53,815 $ 394,649 $ 718,446 Special mention — 113 — 325 1,279 282 1,887 3,886 Substandard — 364 — 631 1,822 4,260 11,570 18,647 Substandard – nonaccrual — 340 — 370 174 383 5,536 6,803 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 42,773 105,651 72,395 31,903 22,678 58,740 413,642 747,782 Commercial other Acceptable credit quality 132,949 182,457 131,480 77,820 20,303 359 79,421 624,789 Special mention — 210 1,818 9,055 3,185 — — 14,268 Substandard — — — 61 — — 1,408 1,469 Substandard – nonaccrual 422 712 26 1,216 574 — — 2,950 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 133,371 183,379 133,324 88,152 24,062 359 80,829 643,476 Commercial real estate Non-owner occupied Acceptable credit quality 453,041 433,844 143,804 113,828 19,577 187,187 3,203 1,354,484 Special mention 1,439 26 3,476 15,341 313 7,211 — 27,806 Substandard 663 109 — 37,065 1,641 37,161 250 76,889 Substandard – nonaccrual — 744 859 5,879 10,246 3,123 — 20,851 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 455,143 434,723 148,139 172,113 31,777 234,682 3,453 1,480,030 Owner occupied Acceptable credit quality 97,287 138,775 68,158 45,755 34,857 115,714 4,548 505,094 Special mention — 141 — 175 160 1,824 27 2,327 Substandard 47 4,187 585 2,901 — 5,182 297 13,199 Substandard – nonaccrual — 402 320 157 333 2,755 — 3,967 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 97,334 143,505 69,063 48,988 35,350 125,475 4,872 524,587 Multi-family Acceptable credit quality 138,000 52,078 19,800 475 24,927 16,031 1,597 252,908 Special mention — — — — — — — — Substandard — — — — — 3,608 — 3,608 Substandard – nonaccrual — 969 — 114 — 8,150 — 9,233 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 138,000 53,047 19,800 589 24,927 27,789 1,597 265,749 Farmland Acceptable credit quality 3,337 16,384 13,958 4,126 3,158 21,255 1,751 63,969 Special mention — — — — — 162 — 162 Substandard — 15 — 166 13 633 181 1,008 Substandard – nonaccrual — — — — 101 — 49 150 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 3,337 16,399 13,958 4,292 3,272 22,050 1,981 65,289 Construction and land development Acceptable credit quality 49,052 67,643 46,495 8,052 4,102 2,363 24,033 201,740 Special mention — — — — — 220 — 220 Substandard — — — — — — — — Substandard – nonaccrual — — — 222 — 29 — 251 Doubtful — — — — — — — — Not graded 189 1,516 35 — — 4 — 1,744 Subtotal 49,241 69,159 46,530 8,274 4,102 2,616 24,033 203,955 Total Acceptable credit quality 916,439 996,015 496,090 280,633 126,327 396,724 509,202 3,721,430 Special mention 1,439 490 5,294 24,896 4,937 9,699 1,914 48,669 Substandard 710 4,675 585 40,824 3,476 50,844 13,706 114,820 Substandard – nonaccrual 422 3,167 1,205 7,958 11,428 14,440 5,585 44,205 Doubtful — — — — — — — — Not graded 189 1,516 35 — — 4 — 1,744 Total commercial loans $ 919,199 $ 1,005,863 $ 503,209 $ 354,311 $ 146,168 $ 471,711 $ 530,407 $ 3,930,868 December 31, 2021 Term Loans (dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving loans Total Commercial Commercial Acceptable credit quality $ 108,490 $ 78,071 $ 50,458 $ 20,045 $ 27,405 $ 35,856 $ 417,920 $ 738,245 Special mention 186 57 198 6,154 2 316 1,517 8,430 Substandard 380 372 1,934 1,868 64 4,322 8,099 17,039 Substandard – nonaccrual 52 — 612 177 242 169 5,704 6,956 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 109,108 78,500 53,202 28,244 27,713 40,663 433,240 770,670 Commercial other Acceptable credit quality 264,282 167,326 101,083 29,981 303 341 88,198 651,514 Special mention — 1,929 10,676 3,966 — — 3,252 19,823 Substandard 688 — 62 341 — — 2,623 3,714 Substandard – nonaccrual 10 158 3,894 384 — — 21 4,467 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 264,980 169,413 115,715 34,672 303 341 94,094 679,518 Commercial real estate Non-owner occupied Acceptable credit quality 441,483 154,379 134,507 20,524 55,207 182,465 5,258 993,823 Special mention 26 6,341 14,177 2,296 711 2,272 — 25,823 Substandard 6,196 817 8,825 20,572 14,857 22,344 250 73,861 Substandard – nonaccrual 169 992 6,206 — 195 4,264 — 11,826 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 447,874 162,529 163,715 43,392 70,970 211,345 5,508 1,105,333 Owner occupied Acceptable credit quality 141,084 69,415 47,187 35,974 30,583 98,442 1,886 424,571 Special mention 150 24 187 161 13,087 4,540 32 18,181 Substandard 4,192 1,127 10,810 205 297 6,466 305 23,402 Substandard – nonaccrual — 318 129 336 72 2,649 — 3,504 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 145,426 70,884 58,313 36,676 44,039 112,097 2,223 469,658 Multi-family Acceptable credit quality 88,329 20,080 1,973 25,450 1,414 18,642 2,241 158,129 Special mention — 451 — — — — — 451 Substandard 988 — — — — 10,139 — 11,127 Substandard – nonaccrual — — 123 — — 2,045 — 2,168 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 89,317 20,531 2,096 25,450 1,414 30,826 2,241 171,875 Farmland Acceptable credit quality 15,689 14,966 3,931 3,162 7,996 19,305 1,196 66,245 Special mention — 66 1,236 145 153 240 — 1,840 Substandard 371 76 166 211 — 898 — 1,722 Substandard – nonaccrual — — — 105 — — 50 155 Doubtful — — — — — — — — Not graded — — — — — — — — Subtotal 16,060 15,108 5,333 3,623 8,149 20,443 1,246 69,962 Construction and land development Acceptable credit quality 65,053 65,274 19,269 10,029 2,511 3,841 19,452 185,429 Special mention — — 5,014 — — 221 — 5,235 Substandard — 1,336 — — — — — 1,336 Substandard – nonaccrual — — 43 — — 40 — 83 Doubtful — — — — — — — — Not graded 1,465 37 — — — 164 — 1,666 Subtotal 66,518 66,647 24,326 10,029 2,511 4,266 19,452 193,749 Total Acceptable credit quality 1,124,410 569,511 358,408 145,165 125,419 358,892 536,151 3,217,956 Special mention 362 8,868 31,488 12,722 13,953 7,589 4,801 79,783 Substandard 12,815 3,728 21,797 23,197 15,218 44,169 11,277 132,201 Substandard – nonaccrual 231 1,468 11,007 1,002 509 9,167 5,775 29,159 Doubtful — — — — — — — — Not graded 1,465 37 — — — 164 — 1,666 Total commercial loans $ 1,139,283 $ 583,612 $ 422,700 $ 182,086 $ 155,099 $ 419,981 $ 558,004 $ 3,460,765 June 30, 2022 Term Loans (dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Total Residential real estate Residential first lien Performing $ 30,586 $ 41,338 $ 32,385 $ 21,765 $ 23,865 $ 122,619 $ 758 $ 273,316 Nonperforming — — 106 260 942 5,004 — 6,312 Subtotal 30,586 41,338 32,491 22,025 24,807 127,623 758 279,628 Other residential Performing 857 549 613 1,209 1,668 1,999 51,718 58,613 Nonperforming — — — 9 10 222 1,621 1,862 Subtotal 857 549 613 1,218 1,678 2,221 53,339 60,475 Consumer Consumer Performing 9,605 44,947 11,083 5,994 6,097 18,226 2,352 98,304 Nonperforming 91 61 12 2 37 51 — 254 Subtotal 9,696 45,008 11,095 5,996 6,134 18,277 2,352 98,558 Consumer other Performing 371,625 369,572 174,852 45,799 8,814 7,050 9,101 986,813 Nonperforming — — — — — — — — Subtotal 371,625 369,572 174,852 45,799 8,814 7,050 9,101 986,813 Leases financing Performing 88,299 127,755 104,682 70,913 31,261 14,015 — 436,925 Nonperforming — 656 797 273 472 79 — 2,277 Subtotal 88,299 128,411 105,479 71,186 31,733 14,094 — 439,202 Total Performing 500,972 584,161 323,615 145,680 71,705 163,909 63,929 1,853,971 Nonperforming 91 717 915 544 1,461 5,356 1,621 10,705 Total other loans $ 501,063 $ 584,878 $ 324,530 $ 146,224 $ 73,166 $ 169,265 $ 65,550 $ 1,864,676 December 31, 2021 Term Loans (dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving loans Total Residential real estate Residential first lien Performing $ 38,508 $ 31,920 $ 24,311 $ 30,842 $ 48,276 $ 93,462 $ 888 $ 268,207 Nonperforming — 108 173 780 764 4,380 — 6,205 Subtotal 38,508 32,028 24,484 31,622 49,040 97,842 888 274,412 Other residential Performing 888 679 1,520 1,950 1,211 1,559 54,225 62,032 Nonperforming — — 10 16 128 100 1,453 1,707 Subtotal 888 679 1,530 1,966 1,339 1,659 55,678 63,739 Consumer Consumer Performing 65,915 14,955 7,874 8,728 3,025 2,582 2,721 105,800 Nonperforming 89 5 3 14 24 71 2 208 Subtotal 66,004 14,960 7,877 8,742 3,049 2,653 2,723 106,008 Consumer other Performing 474,385 323,437 63,463 12,635 3,888 5,447 13,341 896,596 Nonperforming — — — — — — 1 1 Subtotal 474,385 323,437 63,463 12,635 3,888 5,447 13,342 896,597 Leases financing Performing 154,803 124,575 86,402 43,536 9,077 1,983 — 420,376 Nonperforming — 757 1,001 1,012 95 39 — 2,904 Subtotal 154,803 125,332 87,403 44,548 9,172 2,022 — 423,280 Total Performing 734,499 495,566 183,570 97,691 65,477 105,033 71,175 1,753,011 Nonperforming 89 870 1,187 1,822 1,011 4,590 1,456 11,025 Total other loans $ 734,588 $ 496,436 $ 184,757 $ 99,513 $ 66,488 $ 109,623 $ 72,631 $ 1,764,036 |
PREMISES, EQUIPMENT AND LEASES
PREMISES, EQUIPMENT AND LEASES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of Premises and Equipment | A summary of premises and equipment at June 30, 2022 and December 31, 2021 is as follows: (dollars in thousands) June 30, December 31, Land $ 15,948 $ 15,696 Buildings and improvements 68,625 67,143 Furniture and equipment 33,761 33,545 Lease right-of-use assets 7,670 8,428 Total 126,004 124,812 Accumulated depreciation (48,336) (45,592) Premises and equipment, net $ 77,668 $ 79,220 |
Summary of Information Related to Operating Leases | Information related to operating leases for the three and six months ended June 30, 2022 and 2021 was as follows: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2022 2021 2022 2021 Operating lease cost $ 532 $ 514 $ 1,040 $ 1,037 Operating cash flows from leases 630 603 1,236 1,386 Right-of-use assets obtained in exchange for lease obligations — 609 121 689 Right-of-use assets derecognized due to terminations or impairment — (88) — (210) Weighted average remaining lease term 7.4 years 7.9 years 7.4 years 7.9 years Weighted average discount rate 2.89 % 2.86 % 2.89 % 2.86 % |
Summary of Projected Minimum Rental Payments | The projected minimum rental payments under the terms of the leases as of June 30, 2022 were as follows: (dollars in thousands) Amount Year ending December 31: 2022 remaining $ 1,028 2023 2,105 2024 1,799 2025 894 2026 763 Thereafter 4,251 Total future minimum lease payments 10,840 Less imputed interest (1,131) Total operating lease liabilities $ 9,709 |
LOAN SERVICING RIGHTS (Tables)
LOAN SERVICING RIGHTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Transfers and Servicing [Abstract] | |
Schedule of Other Mortgage Notes Serviced and Changes in our Mortgage Servicing Rights | A summary of loan servicing rights at June 30, 2022 and December 31, 2021 is as follows: June 30, 2022 December 31, 2021 Serviced Loans Carrying Value Serviced Loans Carrying Value Commercial FHA $ 2,456,760 $ 24,603 $ 2,650,531 $ 27,386 SBA 46,997 660 50,043 774 Residential 275,673 616 302,618 705 Total $ 2,779,430 $ 25,879 $ 3,003,192 $ 28,865 Changes in our commercial FHA loan servicing rights for the three and six months ended June 30, 2022 and 2021 are summarized as follows: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2022 2021 2022 2021 Loan servicing rights: Balance, beginning of period $ 26,111 $ 35,997 $ 27,386 $ 38,322 Amortization (639) (780) (1,299) (1,563) Refinancing fee received from third party — (337) (221) (604) Permanent impairment (869) (1,148) (1,263) (2,423) Balance, end of period $ 24,603 $ 33,732 $ 24,603 $ 33,732 Fair value: At beginning of period $ 27,941 $ 35,997 $ 28,368 $ 38,322 At end of period 26,865 34,255 26,865 34,255 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The carrying amount of goodwill by segment at June 30, 2022 and December 31, 2021 is summarized as follows: (dollars in thousands) June 30, December 31, Banking $ 157,158 $ 157,158 Wealth management 4,746 4,746 Total goodwill $ 161,904 $ 161,904 The Company’s intangible assets, consisting of core deposit and customer relationship intangibles, as of June 30, 2022 and December 31, 2021 are summarized as follows: June 30, 2022 December 31, 2021 (dollars in thousands) Gross Accumulated Total Gross Accumulated Total Core deposit intangibles $ 58,913 $ (42,664) $ 16,249 $ 57,012 $ (40,603) $ 16,409 Customer relationship intangibles 15,918 (8,608) 7,310 15,918 (7,953) 7,965 Total intangible assets $ 74,831 $ (51,272) $ 23,559 $ 72,930 $ (48,556) $ 24,374 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Fair Value and Notional Amounts | The following table summarizes the interest rate lock commitments and forward commitments to sell mortgage-backed securities held by the Company, their notional amount and estimated fair values at June 30, 2022 and December 31, 2021: Notional amount Fair value gain (dollars in thousands) June 30, December 31, June 30, December 31, Derivative instruments (included in other assets): Interest rate lock commitments $ 22,704 $ 66,216 $ 91 $ 410 Forward commitments to sell mortgage-backed securities 8,213 60,427 — — Total $ 30,917 $ 126,643 $ 91 $ 410 Notional amount Fair value loss (dollars in thousands) June 30, December 31, June 30, December 31, Derivative instruments (included in other liabilities): Forward commitments to sell mortgage-backed securities $ 9,500 $ 18,362 $ 11 $ 19 (dollars in thousands) June 30, Notional Amount $ 200,000 Average remaining life in years 3.79 years Weighted average pay rate 0.64 % Weighted average receive rate 5.48 % |
DEPOSITS (Tables)
DEPOSITS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Deposits [Abstract] | |
Schedule Summarizes the Classification of Deposits | The following table summarizes the classification of deposits as of June 30, 2022 and December 31, 2021: (dollars in thousands) June 30, December 31, Noninterest-bearing demand $ 1,972,261 $ 2,245,701 Interest-bearing: Checking 1,808,885 1,663,021 Money market 1,027,547 869,067 Savings 740,364 679,115 Time 635,381 653,744 Total deposits $ 6,184,438 $ 6,110,648 |
SHORT-TERM BORROWINGS (Tables)
SHORT-TERM BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Short Term Borrowings | The following table presents the distribution of short-term borrowings and related weighted average interest rates as of June 30, 2022 and December 31, 2021: Repurchase agreements (dollars in thousands) As of and for the Six Months Ended As of and for the Year Ended December 31, 2021 Outstanding at period-end $ 67,689 $ 76,803 Average amount outstanding 64,642 68,986 Maximum amount outstanding at any month end 76,807 77,497 Weighted average interest rate: During period 0.14 % 0.12 % End of period 0.14 % 0.13 % |
FHLB ADVANCES AND OTHER BORRO_2
FHLB ADVANCES AND OTHER BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
FHLB ADVANCES AND OTHER BORROWINGS | |
Schedule of Federal Home Loan Bank (FHLB) Advances | The following table summarizes our FHLB advances and other borrowings as of June 30, 2022 and December 31, 2021: (dollars in thousands) June 30, December 31, Midland States Bancorp, Inc. Revolving line of credit - variable interest rate equivalent to Daily Simple SOFR plus 1.60% $ — $ — Series G redeemable preferred stock - 171 shares at $1,000 per share — 171 Midland States Bank FHLB advances – putable fixed rate at rates averaging 2.35% and 1.48% at June 30, 2022 and December 31, 2021, respectively – maturing through December 2024 110,000 210,000 FHLB advances –SOFR floater at rates averaging 3.14% and 1.67% at June 30, 2022 and December 31, 2021, respectively – maturing in October 2023 100,000 100,000 FHLB advances – Short term fixed rate at rates averaging 1.63% at June 30, 2022 – maturing in July 2022 75,000 — Total FHLB advances and other borrowings $ 285,000 $ 310,171 |
SUBORDINATED DEBT (Tables)
SUBORDINATED DEBT (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Subordinated Borrowings [Abstract] | |
Schedule of Summary of Company's Subordinated Debt | The following table summarizes the Company’s subordinated debt as of June 30, 2022 and December 31, 2021: (dollars in thousands) June 30, December 31, Subordinated debt issued June 2015 – fixed interest rate of 6.50%, $550 - maturing June 18, 2025 $ 547 $ 546 Subordinated debt issued October 2017 – fixed interest rate of 6.25% through October 2022 and a variable interest rate equivalent to three month LIBOR plus 4.23% thereafter, $40,000 - maturing October 15, 2027 39,658 39,626 Subordinated debt issued September 2019 – fixed interest rate of 5.00% through September 2024 and a variable interest rate equivalent to three month SOFR plus 3.61% thereafter, $72,750 - maturing September 30, 2029 72,171 72,042 Subordinated debt issued September 2019 – fixed interest rate of 5.50% through September 2029 and a variable interest rate equivalent to three month SOFR plus 4.05% thereafter, $27,250 - maturing September 30, 2034 26,901 26,877 Total subordinated debt $ 139,277 $ 139,091 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings per Common Share | Presented below are the calculations for basic and diluted earnings per common share for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands, except per share data) 2022 2021 2022 2021 Net income $ 21,883 $ 20,124 $ 42,632 $ 38,662 Common shareholder dividends (6,397) (6,265) (12,786) (12,502) Unvested restricted stock award dividends (73) (62) (148) (126) Undistributed earnings to unvested restricted stock awards (171) (134) (334) (259) Undistributed earnings to common shareholders $ 15,242 $ 13,663 $ 29,364 $ 25,775 Basic Distributed earnings to common shareholders $ 6,397 $ 6,265 $ 12,786 $ 12,502 Undistributed earnings to common shareholders 15,242 13,663 29,364 25,775 Total common shareholders earnings, basic $ 21,639 $ 19,928 $ 42,150 $ 38,277 Diluted Distributed earnings to common shareholders $ 6,397 $ 6,265 $ 12,786 $ 12,502 Undistributed earnings to common shareholders 15,242 13,663 29,364 25,775 Total common shareholders earnings 21,639 19,928 42,150 38,277 Add back: Undistributed earnings reallocated from unvested restricted stock awards 1 — 1 1 Total common shareholders earnings, diluted $ 21,640 $ 19,928 $ 42,151 $ 38,278 Weighted average common shares outstanding, basic 22,305,590 22,591,127 22,290,486 22,557,728 Options 55,229 86,388 65,450 75,312 Weighted average common shares outstanding, diluted 22,360,819 22,677,515 22,355,936 22,633,040 Basic earnings per common share $ 0.97 $ 0.88 $ 1.89 $ 1.70 Diluted earnings per common share 0.97 0.88 1.89 1.69 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured and Recorded at Fair Value | Assets and liabilities measured and recorded at fair value, including financial assets for which the Company has elected the fair value option, on a recurring and nonrecurring basis at June 30, 2022 and December 31, 2021, are summarized below: June 30, 2022 (dollars in thousands) Carrying Quoted prices Significant Significant unobservable Assets and liabilities measured at fair value on a recurring basis: Assets Investment securities available for sale: U.S. Treasury securities $ 63,996 $ 63,996 $ — $ — U.S. government sponsored entities and U.S. agency securities 30,303 — 30,303 — Mortgage-backed securities - agency 423,838 — 423,838 — Mortgage-backed securities - non-agency 22,777 — 22,777 — State and municipal securities 106,688 — 106,688 — Corporate securities 112,938 — 112,938 — Equity securities 8,738 8,738 — — Loans held for sale 5,298 — 5,298 — Derivative assets 8,459 — 8,459 — Total $ 783,035 $ 72,734 $ 710,301 $ — Liabilities Derivative liabilities $ 189 $ — $ 189 $ — Total $ 189 $ — $ 189 $ — Assets measured at fair value on a non-recurring basis: Loan servicing rights $ 25,879 $ — $ — $ 25,879 Nonperforming loans 50,958 — 44,599 6,359 Other real estate owned 11,131 — 11,131 — Assets held for sale 1,231 — 1,231 — December 31, 2021 (dollars in thousands) Carrying Quoted prices Significant Significant unobservable Assets and liabilities measured at fair value on a recurring basis: Assets Investment securities available for sale: U.S. Treasury securities $ 64,917 $ 64,917 $ — $ — U.S. government sponsored entities and U.S. agency securities 33,817 — 33,817 — Mortgage-backed securities - agency 440,270 — 440,270 — Mortgage-backed securities - non-agency 28,706 — 28,706 — State and municipal securities 143,099 — 143,099 — Corporate securities 195,794 — 194,859 935 Equity securities 9,529 9,529 — — Loans held for sale 32,045 — 32,045 — Derivative assets 5,883 — 5,883 — Total $ 954,060 $ 74,446 $ 878,679 $ 935 Liabilities Derivative liabilities $ 397 $ — $ 397 $ — Total $ 397 $ — $ 397 $ — Assets measured at fair value on a non-recurring basis: Loan servicing rights $ 28,865 $ — $ — $ 28,865 Nonperforming loans 36,542 24,358 6,129 6,055 Other real estate owned 12,059 — 12,059 — Assets held for sale 2,284 — 2,284 — |
Schedule Presenting Activity for Assets Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs (Level 3) | The following table provides a reconciliation of activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2022 2021 2022 2021 Balance, beginning of period $ 935 $ 959 $ 935 $ 959 Transferred to level 2 (935) — (935) — Total realized in earnings (1) 6 4 11 6 Total unrealized in other comprehensive income (2) — 49 — 49 Net settlements (principal and interest) (6) (4) (11) (6) Balance, end of period $ — $ 1,008 $ — $ 1,008 (1) Amounts included in interest income from investment securities taxable in the consolidated statements of income. (2) Represents change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period. |
Schedule Presents Quantitative Information about Significant Unobservable Inputs | The following table provides quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured at fair value on a recurring basis at December 31, 2021: (dollars in thousands) Fair value Valuation Unobservable Range (weighted average) (1) December 31, 2021 Corporate securities $ 935 Consensus pricing Net market price 0.0% - 7.0% (4.5)% (1) Unobservable inputs were weighted by the relative fair value of the instruments. |
Schedule of Losses Recognized on Assets Measured on a Non-recurring Basis | The following table presents losses recognized on assets measured on a nonrecurring basis for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2022 2021 2022 2021 Loan servicing rights $ 869 $ 1,148 $ 1,263 $ 2,423 Mortgage servicing rights held for sale — 143 — 143 Nonperforming loans 10,779 4,295 11,366 6,272 Other real estate owned 67 314 404 417 Assets held for sale — — — — Total losses on assets measured on a nonrecurring basis $ 11,715 $ 5,900 $ 13,033 $ 9,255 |
Schedule Presents Quantitative Information about Significant Unobservable Inputs used in Fair Value Measurements of Non-recurring Assets (Level 3) | The following tables present quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured on a nonrecurring basis at June 30, 2022 and December 31, 2021: (dollars in thousands) Fair value Valuation Unobservable Range (weighted average) (1) June 30, 2022 Loan servicing rights: Commercial MSR $ 26,865 Discounted cash flow Prepayment speed 8.00% - 18.00% (8.21%) Discount rate 10.00% - 27.00% (11.69%) SBA servicing rights 660 Discounted cash flow Prepayment speed 14.06% - 16.58% (16.00%) Discount rate 10.00% - 12.00% (11.00%) Residential servicing rights 616 Discounted cash flow Prepayment speed 7.86% -26.28% (8.58%) Discount rate 9.00% - 11.50% (10.13%) December 31, 2021 Loan servicing rights: Commercial MSR $ 28,368 Discounted cash flow Prepayment speed 8.00% - 18.00% (8.24%) Discount rate 10.00% - 27.00% (11.87%) SBA servicing rights 898 Discounted cash flow Prepayment speed 12.27% - 14.14% (13.88%) Discount rate 10.00% - 12.00% (11.00%) Residential servicing rights 705 Discounted cash flow Prepayment speed 11.94% - 27.48% (14.94%) Discount rate 9.00% - 11.50% (10.25%) (1) Unobservable inputs were weighted by the relative fair value of the instruments. |
Schedule of the Fair Value Option for Newly Originated Residential and Commercial Loans Held for Sale | The following table presents the difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected as of June 30, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 (dollars in thousands) Aggregate Difference Contractual Aggregate Difference Contractual Commercial loans held for sale $ — $ — $ — $ 19,230 $ — $ 19,230 Residential loans held for sale 5,298 212 5,086 12,815 584 12,231 Total loans held for sale $ 5,298 $ 212 $ 5,086 $ 32,045 $ 584 $ 31,461 The following table presents the amount of gains (losses) from fair value changes included in income before income taxes for financial assets carried at fair value for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2022 2021 2022 2021 Commercial loans held for sale $ (18) $ (23) $ — $ (67) Residential loans held for sale 104 320 (277) (63) Total loans held for sale $ 86 $ 297 $ (277) $ (130) |
Schedule Presentation of Summary of the Carrying Values and Fair Value Estimates of Certain Financial Instruments | The carrying values and estimated fair value of certain financial instruments not carried at fair value at June 30, 2022 and December 31, 2021 were as follows: June 30, 2022 (dollars in thousands) Carrying Fair value Quoted prices Significant Significant Assets Cash and due from banks $ 264,173 $ 264,173 $ 264,173 $ — $ — Federal funds sold 5,944 5,944 5,944 — — Loans, net 5,740,646 5,648,295 — — 5,648,295 Accrued interest receivable 16,552 16,552 — 16,552 — Liabilities Deposits $ 6,184,438 $ 6,171,119 $ — $ 6,171,119 $ — Short-term borrowings 67,689 67,689 — 67,689 — FHLB and other borrowings 285,000 286,309 — 286,309 — Subordinated debt 139,277 139,063 — 139,063 — Trust preferred debentures 49,674 55,348 — 55,348 — December 31, 2021 (dollars in thousands) Carrying Fair value Quoted prices Significant Significant Assets Cash and due from banks $ 673,297 $ 673,297 $ 673,297 $ — $ — Federal funds sold 7,074 7,074 7,074 — — Loans, net 5,173,739 5,221,886 — — 5,221,886 Accrued interest receivable 19,470 19,470 — 19,470 — Liabilities Deposits $ 6,110,648 $ 6,109,077 $ — $ 6,109,077 $ — Short-term borrowings 76,803 76,803 — 76,803 — FHLB and other borrowings 310,171 317,464 — 317,464 — Subordinated debt 139,091 148,386 — 148,386 — Trust preferred debentures 49,374 57,827 — 57,827 — |
COMMITMENTS, CONTINGENCIES AN_2
COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Loan Commitments | The commitments are principally tied to variable rates. Loan commitments as of June 30, 2022 and December 31, 2021 were as follows: (dollars in thousands) June 30, December 31, Commitments to extend credit $ 1,206,523 $ 994,709 Financial guarantees – standby letters of credit 26,553 14,325 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Financial Information | Selected business segment financial information for the three and six months ended June 30, 2022 and 2021 were as follows: (dollars in thousands) Banking Wealth Other Total Three Months Ended June 30, 2022 Net interest income (expense) $ 63,963 $ — $ (2,629) $ 61,334 Provision for credit losses 5,441 — — 5,441 Noninterest income 8,495 6,143 (25) 14,613 Noninterest expense 37,362 4,091 (114) 41,339 Income (loss) before income taxes (benefit) 29,655 2,052 (2,540) 29,167 Income taxes (benefit) 7,545 573 (834) 7,284 Net income (loss) $ 22,110 $ 1,479 $ (1,706) $ 21,883 Total assets $ 7,422,518 $ 29,042 $ (15,748) $ 7,435,812 Six Months Ended June 30, 2022 Net interest income (expense) $ 123,316 $ — $ (5,155) $ 118,161 Provision for credit losses 9,608 — — 9,608 Noninterest income 16,901 13,282 43 30,226 Noninterest expense 73,609 8,766 (152) 82,223 Income (loss) before income taxes (benefit) 57,000 4,516 (4,960) 56,556 Income taxes (benefit) 14,260 1,263 (1,599) 13,924 Net income (loss) $ 42,740 $ 3,253 $ (3,361) $ 42,632 Total assets $ 7,422,518 $ 29,042 $ (15,748) $ 7,435,812 Three Months Ended June 30, 2021 Net interest income (expense) $ 52,908 $ — $ (2,798) $ 50,110 Provision for credit losses (455) — — (455) Noninterest income 10,868 6,529 20 17,417 Noninterest expense 45,084 4,164 (307) 48,941 Income (loss) before income taxes (benefit) 19,147 2,365 (2,471) 19,041 Income taxes (benefit) (913) 663 (833) (1,083) Net income (loss) $ 20,060 $ 1,702 $ (1,638) $ 20,124 Total assets $ 6,642,895 $ 30,913 $ (43,798) $ 6,630,010 Six Months Ended June 30, 2021 Net interest income (expense) $ 107,626 $ — $ (5,648) $ 101,978 Provision for credit losses 3,110 — — 3,110 Noninterest income 19,732 12,460 41 32,233 Noninterest expense 80,600 8,165 (745) 88,020 Income (loss) before income taxes (benefit) 43,648 4,295 (4,862) 43,081 Income taxes (benefit) 4,876 1,203 (1,660) 4,419 Net income (loss) $ 38,772 $ 3,092 $ (3,202) $ 38,662 Total assets $ 6,642,895 $ 30,913 $ (43,798) $ 6,630,010 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Noninterest Income, Segregated by Revenue | The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and six months ended June 30, 2022 and 2021. Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2022 2021 2022 2021 Noninterest income - in-scope of Topic 606 Wealth management revenue: Trust management/administration fees $ 5,139 $ 4,971 $ 11,121 $ 9,430 Investment advisory fees — 423 — 876 Investment brokerage fees 543 485 1,141 886 Other 461 650 1,020 1,268 Service charges on deposit accounts: Nonsufficient fund fees 1,524 1,202 2,856 2,343 Other 780 714 1,516 1,399 Interchange revenues 3,590 3,797 6,870 7,172 Other income: Merchant services revenue 399 396 755 733 Other 671 1,418 1,439 2,209 Noninterest income - out-of-scope of Topic 606 1,506 3,361 3,508 5,917 Total noninterest income $ 14,613 $ 17,417 $ 30,226 $ 32,233 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - USD ($) $ in Thousands | Jun. 01, 2021 | Jun. 17, 2022 |
Business Acquisition | ||
Transaction and integration costs | $ 500 | |
FNBC Bank & Trust | ||
Business Acquisition | ||
Deposits | 79,794 | |
Loans | $ 16,632 | |
ATG Trust | ||
Business Acquisition | ||
Transaction and integration costs | $ 400 | |
Fair value of assets under management | 399,700 | |
Assets acquired | $ 2,700 |
ACQUISITIONS - Assets Acquired
ACQUISITIONS - Assets Acquired and Liabilities Assumed (Details) - FNBC Bank & Trust $ in Thousands | Jun. 17, 2022 USD ($) |
Business Acquisition | |
Cash and cash equivalents | $ 60,275 |
Loans | 16,632 |
Premises and equipment, net | 950 |
Accrued interest receivable | 36 |
Intangible assets | 1,901 |
Total assets acquired | 79,794 |
Deposits | 79,794 |
Total liabilities assumed | 79,794 |
Core deposit intangibles | |
Business Acquisition | |
Intangible assets | $ 1,901 |
Estimated useful life | 10 years |
INVESTMENT SECURITIES - Classif
INVESTMENT SECURITIES - Classified (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Investment securities available for sale | ||||||
Amortized cost | $ 841,966 | $ 904,695 | ||||
Gross unrealized gains | 664 | 11,505 | ||||
Gross unrealized losses | 82,090 | 9,376 | ||||
Allowance for credit losses | 0 | $ 0 | 221 | $ 326 | $ 516 | $ 366 |
Fair value | 760,540 | 906,603 | ||||
U.S. Treasury securities | ||||||
Investment securities available for sale | ||||||
Amortized cost | 68,390 | 65,347 | ||||
Gross unrealized gains | 0 | 0 | ||||
Gross unrealized losses | 4,394 | 430 | ||||
Allowance for credit losses | 0 | 0 | ||||
Fair value | 63,996 | 64,917 | ||||
U.S. government sponsored entities and U.S. agency securities | ||||||
Investment securities available for sale | ||||||
Amortized cost | 33,756 | 34,569 | ||||
Gross unrealized gains | 66 | 79 | ||||
Gross unrealized losses | 3,519 | 831 | ||||
Allowance for credit losses | 0 | 0 | ||||
Fair value | 30,303 | 33,817 | ||||
Mortgage-backed securities - agency | ||||||
Investment securities available for sale | ||||||
Amortized cost | 480,408 | 444,484 | ||||
Gross unrealized gains | 17 | 2,687 | ||||
Gross unrealized losses | 56,587 | 6,901 | ||||
Allowance for credit losses | 0 | 0 | ||||
Fair value | 423,838 | 440,270 | ||||
Mortgage-backed securities - non-agency | ||||||
Investment securities available for sale | ||||||
Amortized cost | 26,118 | 29,037 | ||||
Gross unrealized gains | 0 | 50 | ||||
Gross unrealized losses | 3,341 | 381 | ||||
Allowance for credit losses | 0 | 0 | 0 | 113 | 28 | 0 |
Fair value | 22,777 | 28,706 | ||||
State and municipal securities | ||||||
Investment securities available for sale | ||||||
Amortized cost | 113,920 | 137,904 | ||||
Gross unrealized gains | 525 | 5,561 | ||||
Gross unrealized losses | 7,757 | 366 | ||||
Allowance for credit losses | 0 | 0 | 0 | 0 | 28 | 29 |
Fair value | 106,688 | 143,099 | ||||
Corporate securities | ||||||
Investment securities available for sale | ||||||
Amortized cost | 119,374 | 193,354 | ||||
Gross unrealized gains | 56 | 3,128 | ||||
Gross unrealized losses | 6,492 | 467 | ||||
Allowance for credit losses | 0 | $ 0 | 221 | $ 213 | $ 460 | $ 337 |
Fair value | $ 112,938 | $ 195,794 |
INVESTMENT SECURITIES - Amortiz
INVESTMENT SECURITIES - Amortized cost and fair value (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Amortized cost | |||||
Within one year | $ 12,828 | $ 12,828 | |||
After one year through five years | 134,666 | 134,666 | |||
After five years through ten years | 156,446 | 156,446 | |||
After ten years | 31,500 | 31,500 | |||
Mortgage-backed securities | 506,526 | 506,526 | |||
Total available for sale securities | 841,966 | 841,966 | $ 904,695 | ||
Fair value | |||||
Within one year | 12,898 | 12,898 | |||
After one year through five years | 127,807 | 127,807 | |||
After five years through ten years | 145,497 | 145,497 | |||
After ten years | 27,723 | 27,723 | |||
Mortgage-backed securities | 446,615 | 446,615 | |||
Total available for sale securities | 760,540 | 760,540 | $ 906,603 | ||
Proceeds from sales of investment securities available for sale | 107,740 | $ 12,617 | 107,740 | $ 12,617 | |
Gross realized gains on sales | 716 | 377 | 716 | 377 | |
Gross realized losses on sales | $ (817) | $ 0 | $ (817) | $ 0 |
INVESTMENT SECURITIES - Allowan
INVESTMENT SECURITIES - Allowance for credit loss and unrealized losses and fair values (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Allowance for credit losses on investment securities available-for-sale | |||||
Beginning balance | $ 0 | $ 516 | $ 221 | $ 366 | |
Current-period provision for expected credit losses | 0 | (190) | (221) | (40) | |
Ending balance | 0 | 326 | 0 | 326 | |
Fair value | |||||
Less than 12 Months, Fair value | 572,690 | 572,690 | $ 451,195 | ||
Less than 12 Months, Unrealized loss | 57,014 | 57,014 | 7,977 | ||
12 Months or more, Fair value | 129,609 | 129,609 | 21,021 | ||
12 Months or more, Unrealized loss | 25,076 | 25,076 | 932 | ||
Total, Fair value | 702,299 | 702,299 | 472,216 | ||
Total, Unrealized loss | 82,090 | 82,090 | 8,909 | ||
U.S. Treasury securities | |||||
Allowance for credit losses on investment securities available-for-sale | |||||
Beginning balance | 0 | ||||
Ending balance | 0 | 0 | |||
Fair value | |||||
Less than 12 Months, Fair value | 63,996 | 63,996 | 64,917 | ||
Less than 12 Months, Unrealized loss | 4,394 | 4,394 | 430 | ||
12 Months or more, Fair value | 0 | 0 | 0 | ||
12 Months or more, Unrealized loss | 0 | 0 | 0 | ||
Total, Fair value | 63,996 | 63,996 | 64,917 | ||
Total, Unrealized loss | 4,394 | 4,394 | 430 | ||
U.S. government sponsored entities and U.S. agency securities | |||||
Allowance for credit losses on investment securities available-for-sale | |||||
Beginning balance | 0 | ||||
Ending balance | 0 | 0 | |||
Fair value | |||||
Less than 12 Months, Fair value | 13,042 | 13,042 | 17,487 | ||
Less than 12 Months, Unrealized loss | 1,296 | 1,296 | 263 | ||
12 Months or more, Fair value | 12,777 | 12,777 | 9,432 | ||
12 Months or more, Unrealized loss | 2,223 | 2,223 | 568 | ||
Total, Fair value | 25,819 | 25,819 | 26,919 | ||
Total, Unrealized loss | 3,519 | 3,519 | 831 | ||
Mortgage-backed securities - agency | |||||
Allowance for credit losses on investment securities available-for-sale | |||||
Beginning balance | 0 | ||||
Ending balance | 0 | 0 | |||
Fair value | |||||
Less than 12 Months, Fair value | 319,343 | 319,343 | 317,372 | ||
Less than 12 Months, Unrealized loss | 35,977 | 35,977 | 6,633 | ||
12 Months or more, Fair value | 103,015 | 103,015 | 9,051 | ||
12 Months or more, Unrealized loss | 20,610 | 20,610 | 268 | ||
Total, Fair value | 422,358 | 422,358 | 326,423 | ||
Total, Unrealized loss | 56,587 | 56,587 | 6,901 | ||
Mortgage-backed securities - non-agency | |||||
Allowance for credit losses on investment securities available-for-sale | |||||
Beginning balance | 0 | 28 | 0 | 0 | |
Current-period provision for expected credit losses | 0 | 85 | 0 | 113 | |
Ending balance | 0 | 113 | 0 | 113 | |
Fair value | |||||
Less than 12 Months, Fair value | 17,947 | 17,947 | 24,095 | ||
Less than 12 Months, Unrealized loss | 2,297 | 2,297 | 381 | ||
12 Months or more, Fair value | 4,830 | 4,830 | 0 | ||
12 Months or more, Unrealized loss | 1,044 | 1,044 | 0 | ||
Total, Fair value | 22,777 | 22,777 | 24,095 | ||
Total, Unrealized loss | 3,341 | 3,341 | 381 | ||
State and municipal securities | |||||
Allowance for credit losses on investment securities available-for-sale | |||||
Beginning balance | 0 | 28 | 0 | 29 | |
Current-period provision for expected credit losses | 0 | (28) | 0 | (29) | |
Ending balance | 0 | 0 | 0 | 0 | |
Fair value | |||||
Less than 12 Months, Fair value | 58,112 | 58,112 | 27,324 | ||
Less than 12 Months, Unrealized loss | 6,667 | 6,667 | 270 | ||
12 Months or more, Fair value | 6,118 | 6,118 | 2,538 | ||
12 Months or more, Unrealized loss | 1,090 | 1,090 | 96 | ||
Total, Fair value | 64,230 | 64,230 | 29,862 | ||
Total, Unrealized loss | 7,757 | 7,757 | 366 | ||
Corporate securities | |||||
Allowance for credit losses on investment securities available-for-sale | |||||
Beginning balance | 0 | 460 | 221 | 337 | |
Current-period provision for expected credit losses | 0 | (247) | (221) | (124) | |
Ending balance | 0 | $ 213 | 0 | $ 213 | |
Fair value | |||||
Less than 12 Months, Fair value | 100,250 | 100,250 | 0 | ||
Less than 12 Months, Unrealized loss | 6,383 | 6,383 | 0 | ||
12 Months or more, Fair value | 2,869 | 2,869 | 0 | ||
12 Months or more, Unrealized loss | 109 | 109 | 0 | ||
Total, Fair value | 103,119 | 103,119 | 0 | ||
Total, Unrealized loss | $ 6,492 | $ 6,492 | $ 0 |
INVESTMENT SECURITIES - Narrati
INVESTMENT SECURITIES - Narrative (Details) $ in Thousands | Jun. 30, 2022 USD ($) security | Dec. 31, 2021 USD ($) |
Investments, Debt and Equity Securities [Abstract] | ||
Number of securities in unrealized loss position (in security) | security | 326 | |
Aggregate depreciation percentage | 10.47% | |
Equity securities recorded at fair value | $ | $ 8,738 | $ 9,529 |
INVESTMENT SECURITIES - Equity
INVESTMENT SECURITIES - Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net unrealized (losses) gains | $ (425) | $ 145 | $ (947) | $ 226 |
LOANS - Summary of loans and cr
LOANS - Summary of loans and credit losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Summary of loans | |||||
Loans | $ 5,795,544 | $ 5,795,544 | $ 5,224,801 | ||
Net deferred loan fees | 3,800 | 3,800 | 4,600 | ||
Unearned income | 49,700 | 49,700 | 46,100 | ||
Loans held for sale | 5,298 | 5,298 | 32,045 | ||
Proceeds from sales of loans held for sale | 203,545 | $ 494,541 | |||
Commercial Loan Portfolio | |||||
Summary of loans | |||||
Loans | 3,930,868 | 3,930,868 | 3,460,765 | ||
Lease financing | |||||
Summary of loans | |||||
Loans | 439,202 | 439,202 | 423,280 | ||
Commercial Real Estate, Residential Real Estate And Consumer Loans | |||||
Summary of loans | |||||
Proceeds from sales of loans held for sale | 100,400 | $ 161,900 | 203,500 | $ 494,500 | |
Commercial | Commercial Loan Portfolio | |||||
Summary of loans | |||||
Loans | 747,782 | 747,782 | 770,670 | ||
Commercial other | Commercial Loan Portfolio | |||||
Summary of loans | |||||
Loans | 643,476 | 643,476 | 679,518 | ||
Commercial real estate non-owner occupied | Commercial Loan Portfolio | |||||
Summary of loans | |||||
Loans | 1,480,030 | 1,480,030 | 1,105,333 | ||
Commercial real estate owner occupied | Commercial Loan Portfolio | |||||
Summary of loans | |||||
Loans | 524,587 | 524,587 | 469,658 | ||
Multi-family | Commercial Loan Portfolio | |||||
Summary of loans | |||||
Loans | 265,749 | 265,749 | 171,875 | ||
Farmland | Commercial Loan Portfolio | |||||
Summary of loans | |||||
Loans | 65,289 | 65,289 | 69,962 | ||
Construction and land development | Commercial Loan Portfolio | |||||
Summary of loans | |||||
Loans | 203,955 | 203,955 | 193,749 | ||
Residential first lien | Residential Portfolio Segment | |||||
Summary of loans | |||||
Loans | 279,628 | 279,628 | 274,412 | ||
Other residential | Residential Portfolio Segment | |||||
Summary of loans | |||||
Loans | 60,475 | 60,475 | 63,739 | ||
Consumer | Consumer | |||||
Summary of loans | |||||
Loans | 98,558 | 98,558 | 106,008 | ||
Consumer other | Consumer | |||||
Summary of loans | |||||
Loans | 986,813 | 986,813 | 896,597 | ||
Payroll Protection Program | Commercial Loan Portfolio | |||||
Summary of loans | |||||
Loans | 6,400 | 6,400 | 52,500 | ||
Commercial FHA Warehouse Lines | Commercial Loan Portfolio | |||||
Summary of loans | |||||
Loans | $ 23,900 | $ 23,900 | $ 91,900 |
LOANS - Loans to Directors, Exe
LOANS - Loans to Directors, Executive Officers, Principal Shareholders and Affiliates (Details) - Directors, Executive Officers, Principal Shareholders and Affiliates - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Notes Receivable [Roll Forward] | ||||||||
Beginning balance | $ 23,097 | $ 18,762 | $ 23,097 | $ 18,762 | $ 23,374 | $ 13,869 | $ 19,372 | $ 19,693 |
New loans and other additions | 0 | 404 | 9,805 | 1,024 | ||||
Repayments and other reductions | (277) | (1,014) | (577) | (1,955) | ||||
Ending balance | $ 23,097 | $ 18,762 | $ 23,097 | $ 18,762 |
LOANS - Summary of changes in t
LOANS - Summary of changes in the ACL on loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Financing Receivable, Impaired [Line Items] | ||||
Balance, beginning of period | $ 52,938 | $ 62,687 | $ 51,062 | $ 60,443 |
Provision for credit losses on loans | 4,741 | 0 | 8,873 | 3,950 |
Charge-offs | (3,421) | (4,456) | (6,423) | (6,611) |
Recoveries | 640 | 433 | 1,386 | 882 |
Balance, end of period | 54,898 | 58,664 | 54,898 | 58,664 |
Commercial Loan Portfolio | Commercial | ||||
Financing Receivable, Impaired [Line Items] | ||||
Balance, beginning of period | 12,621 | 17,339 | 14,375 | 19,851 |
Provision for credit losses on loans | (111) | 5 | 278 | (2,016) |
Charge-offs | (60) | (2,634) | (2,214) | (3,140) |
Recoveries | 298 | 139 | 309 | 154 |
Balance, end of period | 12,748 | 14,849 | 12,748 | 14,849 |
Commercial Loan Portfolio | Commercial real estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Balance, beginning of period | 26,277 | 31,821 | 22,993 | 25,465 |
Provision for credit losses on loans | 4,284 | (168) | 7,728 | 6,959 |
Charge-offs | (2,625) | (946) | (2,852) | (1,719) |
Recoveries | (62) | 11 | 5 | 13 |
Balance, end of period | 27,874 | 30,718 | 27,874 | 30,718 |
Commercial Loan Portfolio | Construction and land development | ||||
Financing Receivable, Impaired [Line Items] | ||||
Balance, beginning of period | 816 | 1,239 | 972 | 1,433 |
Provision for credit losses on loans | 279 | 414 | 123 | 425 |
Charge-offs | 0 | (1) | (6) | (272) |
Recoveries | 6 | 81 | 12 | 147 |
Balance, end of period | 1,101 | 1,733 | 1,101 | 1,733 |
Residential Portfolio Segment | Residential real estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Balance, beginning of period | 3,288 | 3,981 | 2,695 | 3,929 |
Provision for credit losses on loans | 133 | (177) | 717 | (109) |
Charge-offs | (46) | (141) | (150) | (251) |
Recoveries | 41 | 20 | 154 | 114 |
Balance, end of period | 3,416 | 3,683 | 3,416 | 3,683 |
Consumer | Consumer | ||||
Financing Receivable, Impaired [Line Items] | ||||
Balance, beginning of period | 2,672 | 2,271 | 2,558 | 2,338 |
Provision for credit losses on loans | 415 | 84 | 672 | 137 |
Charge-offs | (191) | (218) | (496) | (460) |
Recoveries | 98 | 155 | 260 | 277 |
Balance, end of period | 2,994 | 2,292 | 2,994 | 2,292 |
Lease financing | ||||
Financing Receivable, Impaired [Line Items] | ||||
Balance, beginning of period | 7,264 | 6,036 | 7,469 | 7,427 |
Provision for credit losses on loans | (259) | (158) | (645) | (1,446) |
Charge-offs | (499) | (516) | (705) | (769) |
Recoveries | 259 | 27 | 646 | 177 |
Balance, end of period | $ 6,765 | $ 5,389 | $ 6,765 | $ 5,389 |
LOANS - Risk rating (Details)
LOANS - Risk rating (Details) | 6 Months Ended |
Jun. 30, 2022 region | |
Risk category | |
Number of main regions | 4 |
Consumer Loans And Equipment Finance Loans And Leases | Credit Risk State One | Minimum | |
Risk category | |
Consumer loans and equipment finance loans and leases days past due | 0 days |
Consumer Loans And Equipment Finance Loans And Leases | Credit Risk State One | Maximum | |
Risk category | |
Consumer loans and equipment finance loans and leases days past due | 14 days |
Consumer Loans And Equipment Finance Loans And Leases | Credit Risk State Two | Minimum | |
Risk category | |
Consumer loans and equipment finance loans and leases days past due | 15 days |
Consumer Loans And Equipment Finance Loans And Leases | Credit Risk State Two | Maximum | |
Risk category | |
Consumer loans and equipment finance loans and leases days past due | 29 days |
Consumer Loans And Equipment Finance Loans And Leases | Credit Risk State Three | Minimum | |
Risk category | |
Consumer loans and equipment finance loans and leases days past due | 30 days |
Consumer Loans And Equipment Finance Loans And Leases | Credit Risk State Three | Maximum | |
Risk category | |
Consumer loans and equipment finance loans and leases days past due | 59 days |
Consumer Loans And Equipment Finance Loans And Leases | Credit Risk State Four | Minimum | |
Risk category | |
Consumer loans and equipment finance loans and leases days past due | 60 days |
Consumer Loans And Equipment Finance Loans And Leases | Credit Risk State Four | Maximum | |
Risk category | |
Consumer loans and equipment finance loans and leases days past due | 89 days |
Consumer Loans And Equipment Finance Loans And Leases | Credit Risk State Default | Minimum | |
Risk category | |
Consumer loans and equipment finance loans and leases days past due | 90 days |
LOANS - Non-accrual (Details)
LOANS - Non-accrual (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Nonaccrual | ||
Nonaccrual with allowance | $ 18,645 | $ 19,237 |
Nonaccrual with no allowance | 32,313 | 16,326 |
Total nonaccrual | 50,958 | 35,563 |
Threshold amount for non accrual loans | 500 | |
Commercial Loan Portfolio | ||
Nonaccrual | ||
Nonaccrual with allowance | 12,531 | 13,665 |
Nonaccrual with no allowance | 31,674 | 15,494 |
Total nonaccrual | 44,205 | 29,159 |
Commercial Loan Portfolio | Commercial | ||
Nonaccrual | ||
Nonaccrual with allowance | 4,528 | 4,681 |
Nonaccrual with no allowance | 2,275 | 2,275 |
Total nonaccrual | 6,803 | 6,956 |
Commercial Loan Portfolio | Commercial other | ||
Nonaccrual | ||
Nonaccrual with allowance | 2,950 | 4,467 |
Nonaccrual with no allowance | 0 | 0 |
Total nonaccrual | 2,950 | 4,467 |
Commercial Loan Portfolio | Commercial real estate non-owner occupied | ||
Nonaccrual | ||
Nonaccrual with allowance | 1,848 | 1,914 |
Nonaccrual with no allowance | 19,003 | 9,912 |
Total nonaccrual | 20,851 | 11,826 |
Commercial Loan Portfolio | Commercial real estate owner occupied | ||
Nonaccrual | ||
Nonaccrual with allowance | 2,627 | 2,164 |
Nonaccrual with no allowance | 1,340 | 1,340 |
Total nonaccrual | 3,967 | 3,504 |
Commercial Loan Portfolio | Multi-family | ||
Nonaccrual | ||
Nonaccrual with allowance | 177 | 201 |
Nonaccrual with no allowance | 9,056 | 1,967 |
Total nonaccrual | 9,233 | 2,168 |
Commercial Loan Portfolio | Farmland | ||
Nonaccrual | ||
Nonaccrual with allowance | 150 | 155 |
Nonaccrual with no allowance | 0 | 0 |
Total nonaccrual | 150 | 155 |
Commercial Loan Portfolio | Construction and land development | ||
Nonaccrual | ||
Nonaccrual with allowance | 251 | 83 |
Nonaccrual with no allowance | 0 | 0 |
Total nonaccrual | 251 | 83 |
Residential Portfolio Segment | Residential first lien | ||
Nonaccrual | ||
Nonaccrual with allowance | 3,685 | 3,116 |
Nonaccrual with no allowance | 639 | 832 |
Total nonaccrual | 4,324 | 3,948 |
Residential Portfolio Segment | Other residential | ||
Nonaccrual | ||
Nonaccrual with allowance | 933 | 836 |
Nonaccrual with no allowance | 0 | 0 |
Total nonaccrual | 933 | 836 |
Consumer | Consumer | ||
Nonaccrual | ||
Nonaccrual with allowance | 97 | 110 |
Nonaccrual with no allowance | 0 | 0 |
Total nonaccrual | 97 | 110 |
Lease financing | Lease financing | ||
Nonaccrual | ||
Nonaccrual with allowance | 1,399 | 1,510 |
Nonaccrual with no allowance | 0 | 0 |
Total nonaccrual | $ 1,399 | $ 1,510 |
LOANS - Impaired Loans with int
LOANS - Impaired Loans with interest recognized (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest income : | ||||
Interest income recognized on nonaccrual loans | $ 0 | $ 0 | $ 0 | $ 0 |
Additional interest income that would have been recorded had they been current | $ 500,000 | $ 700,000 | $ 1,300,000 | $ 1,400,000 |
LOANS - Collateral dependent lo
LOANS - Collateral dependent loans (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Summary of loans | ||
Collateral dependent loans | $ 28,193 | $ 20,813 |
Real Estate | ||
Summary of loans | ||
Collateral dependent loans | 23,303 | 14,909 |
Blanket Lien | ||
Summary of loans | ||
Collateral dependent loans | 4,890 | 5,402 |
Equipment | ||
Summary of loans | ||
Collateral dependent loans | 0 | 502 |
Commercial | Commercial Loan Portfolio | ||
Summary of loans | ||
Collateral dependent loans | 4,890 | 5,402 |
Commercial | Commercial Loan Portfolio | Real Estate | ||
Summary of loans | ||
Collateral dependent loans | 0 | 0 |
Commercial | Commercial Loan Portfolio | Blanket Lien | ||
Summary of loans | ||
Collateral dependent loans | 4,890 | 5,402 |
Commercial | Commercial Loan Portfolio | Equipment | ||
Summary of loans | ||
Collateral dependent loans | 0 | 0 |
Commercial other | Commercial Loan Portfolio | ||
Summary of loans | ||
Collateral dependent loans | 0 | 502 |
Commercial other | Commercial Loan Portfolio | Real Estate | ||
Summary of loans | ||
Collateral dependent loans | 0 | 0 |
Commercial other | Commercial Loan Portfolio | Blanket Lien | ||
Summary of loans | ||
Collateral dependent loans | 0 | 0 |
Commercial other | Commercial Loan Portfolio | Equipment | ||
Summary of loans | ||
Collateral dependent loans | 0 | 502 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | ||
Summary of loans | ||
Collateral dependent loans | 20,062 | 11,604 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | Real Estate | ||
Summary of loans | ||
Collateral dependent loans | 20,062 | 11,604 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | Blanket Lien | ||
Summary of loans | ||
Collateral dependent loans | 0 | 0 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | Equipment | ||
Summary of loans | ||
Collateral dependent loans | 0 | 0 |
Commercial real estate owner occupied | Commercial Loan Portfolio | ||
Summary of loans | ||
Collateral dependent loans | 1,336 | 1,336 |
Commercial real estate owner occupied | Commercial Loan Portfolio | Real Estate | ||
Summary of loans | ||
Collateral dependent loans | 1,336 | 1,336 |
Commercial real estate owner occupied | Commercial Loan Portfolio | Blanket Lien | ||
Summary of loans | ||
Collateral dependent loans | 0 | 0 |
Commercial real estate owner occupied | Commercial Loan Portfolio | Equipment | ||
Summary of loans | ||
Collateral dependent loans | 0 | 0 |
Multi-family | Commercial Loan Portfolio | ||
Summary of loans | ||
Collateral dependent loans | 1,905 | 1,969 |
Multi-family | Commercial Loan Portfolio | Real Estate | ||
Summary of loans | ||
Collateral dependent loans | 1,905 | 1,969 |
Multi-family | Commercial Loan Portfolio | Blanket Lien | ||
Summary of loans | ||
Collateral dependent loans | 0 | 0 |
Multi-family | Commercial Loan Portfolio | Equipment | ||
Summary of loans | ||
Collateral dependent loans | $ 0 | $ 0 |
LOANS - Aging Status of recorde
LOANS - Aging Status of recorded investment (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Aging Status of recorded investment | ||
Loans | $ 5,795,544 | $ 5,224,801 |
Total nonaccrual | 50,958 | 35,563 |
Nonperforming | ||
Aging Status of recorded investment | ||
Total nonaccrual | 50,958 | 35,563 |
30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 10,107 | 10,069 |
60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 6,105 | 7,445 |
Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 6 |
Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 16,212 | 17,520 |
Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 5,728,374 | 5,171,718 |
Commercial Loan Portfolio | ||
Aging Status of recorded investment | ||
Loans | 3,930,868 | 3,460,765 |
Total nonaccrual | 44,205 | 29,159 |
Commercial Loan Portfolio | Nonperforming | ||
Aging Status of recorded investment | ||
Total nonaccrual | 44,205 | 29,159 |
Commercial Loan Portfolio | 30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 4,448 | 3,697 |
Commercial Loan Portfolio | 60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 2,881 | 4,386 |
Commercial Loan Portfolio | Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 5 |
Commercial Loan Portfolio | Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 7,329 | 8,088 |
Commercial Loan Portfolio | Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 3,879,334 | 3,423,518 |
Lease financing | ||
Aging Status of recorded investment | ||
Loans | 439,202 | 423,280 |
Lease financing | Performing | ||
Aging Status of recorded investment | ||
Loans | 436,925 | 420,376 |
Lease financing | Nonperforming | ||
Aging Status of recorded investment | ||
Loans | 2,277 | 2,904 |
Total nonaccrual | 1,399 | 1,510 |
Lease financing | 30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 1,654 | 1,253 |
Lease financing | 60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 601 | 245 |
Lease financing | Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 0 |
Lease financing | Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 2,255 | 1,498 |
Lease financing | Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 435,548 | 420,272 |
Commercial | Commercial Loan Portfolio | ||
Aging Status of recorded investment | ||
Loans | 747,782 | 770,670 |
Total nonaccrual | 6,803 | 6,956 |
Commercial | Commercial Loan Portfolio | Nonperforming | ||
Aging Status of recorded investment | ||
Total nonaccrual | 6,803 | 6,956 |
Commercial | Commercial Loan Portfolio | 30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 143 | 283 |
Commercial | Commercial Loan Portfolio | 60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 92 | 1,082 |
Commercial | Commercial Loan Portfolio | Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 0 |
Commercial | Commercial Loan Portfolio | Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 235 | 1,365 |
Commercial | Commercial Loan Portfolio | Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 740,744 | 762,349 |
Commercial other | Commercial Loan Portfolio | ||
Aging Status of recorded investment | ||
Loans | 643,476 | 679,518 |
Total nonaccrual | 2,950 | 4,467 |
Commercial other | Commercial Loan Portfolio | Nonperforming | ||
Aging Status of recorded investment | ||
Total nonaccrual | 2,950 | 4,467 |
Commercial other | Commercial Loan Portfolio | 30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 3,136 | 2,402 |
Commercial other | Commercial Loan Portfolio | 60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 2,425 | 2,110 |
Commercial other | Commercial Loan Portfolio | Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 5 |
Commercial other | Commercial Loan Portfolio | Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 5,561 | 4,517 |
Commercial other | Commercial Loan Portfolio | Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 634,965 | 670,534 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | ||
Aging Status of recorded investment | ||
Loans | 1,480,030 | 1,105,333 |
Total nonaccrual | 20,851 | 11,826 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | Nonperforming | ||
Aging Status of recorded investment | ||
Total nonaccrual | 20,851 | 11,826 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | 30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 741 | 585 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | 60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 26 | 243 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 0 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 767 | 828 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 1,458,412 | 1,092,679 |
Commercial real estate owner occupied | Commercial Loan Portfolio | ||
Aging Status of recorded investment | ||
Loans | 524,587 | 469,658 |
Total nonaccrual | 3,967 | 3,504 |
Commercial real estate owner occupied | Commercial Loan Portfolio | Nonperforming | ||
Aging Status of recorded investment | ||
Total nonaccrual | 3,967 | 3,504 |
Commercial real estate owner occupied | Commercial Loan Portfolio | 30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 76 | 232 |
Commercial real estate owner occupied | Commercial Loan Portfolio | 60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 338 | 730 |
Commercial real estate owner occupied | Commercial Loan Portfolio | Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 0 |
Commercial real estate owner occupied | Commercial Loan Portfolio | Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 414 | 962 |
Commercial real estate owner occupied | Commercial Loan Portfolio | Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 520,206 | 465,192 |
Multi-family | Commercial Loan Portfolio | ||
Aging Status of recorded investment | ||
Loans | 265,749 | 171,875 |
Total nonaccrual | 9,233 | 2,168 |
Multi-family | Commercial Loan Portfolio | Nonperforming | ||
Aging Status of recorded investment | ||
Total nonaccrual | 9,233 | 2,168 |
Multi-family | Commercial Loan Portfolio | 30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 162 | 0 |
Multi-family | Commercial Loan Portfolio | 60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 0 |
Multi-family | Commercial Loan Portfolio | Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 0 |
Multi-family | Commercial Loan Portfolio | Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 162 | 0 |
Multi-family | Commercial Loan Portfolio | Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 256,354 | 169,707 |
Farmland | Commercial Loan Portfolio | ||
Aging Status of recorded investment | ||
Loans | 65,289 | 69,962 |
Total nonaccrual | 150 | 155 |
Farmland | Commercial Loan Portfolio | Nonperforming | ||
Aging Status of recorded investment | ||
Total nonaccrual | 150 | 155 |
Farmland | Commercial Loan Portfolio | 30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 190 | 0 |
Farmland | Commercial Loan Portfolio | 60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 26 |
Farmland | Commercial Loan Portfolio | Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 0 |
Farmland | Commercial Loan Portfolio | Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 190 | 26 |
Farmland | Commercial Loan Portfolio | Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 64,949 | 69,781 |
Construction and land development | Commercial Loan Portfolio | ||
Aging Status of recorded investment | ||
Loans | 203,955 | 193,749 |
Total nonaccrual | 251 | 83 |
Construction and land development | Commercial Loan Portfolio | Nonperforming | ||
Aging Status of recorded investment | ||
Total nonaccrual | 251 | 83 |
Construction and land development | Commercial Loan Portfolio | 30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 195 |
Construction and land development | Commercial Loan Portfolio | 60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 195 |
Construction and land development | Commercial Loan Portfolio | Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 0 |
Construction and land development | Commercial Loan Portfolio | Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 390 |
Construction and land development | Commercial Loan Portfolio | Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 203,704 | 193,276 |
Residential first lien | Residential Portfolio Segment | ||
Aging Status of recorded investment | ||
Loans | 279,628 | 274,412 |
Total nonaccrual | 4,324 | 3,948 |
Residential first lien | Residential Portfolio Segment | Performing | ||
Aging Status of recorded investment | ||
Loans | 273,316 | 268,207 |
Residential first lien | Residential Portfolio Segment | Nonperforming | ||
Aging Status of recorded investment | ||
Loans | 6,312 | 6,205 |
Total nonaccrual | 4,324 | 3,948 |
Residential first lien | Residential Portfolio Segment | 30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 64 | 113 |
Residential first lien | Residential Portfolio Segment | 60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 318 | 285 |
Residential first lien | Residential Portfolio Segment | Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 0 |
Residential first lien | Residential Portfolio Segment | Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 382 | 398 |
Residential first lien | Residential Portfolio Segment | Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 274,922 | 270,066 |
Other residential | Residential Portfolio Segment | ||
Aging Status of recorded investment | ||
Loans | 60,475 | 63,739 |
Total nonaccrual | 933 | 836 |
Other residential | Residential Portfolio Segment | Performing | ||
Aging Status of recorded investment | ||
Loans | 58,613 | 62,032 |
Other residential | Residential Portfolio Segment | Nonperforming | ||
Aging Status of recorded investment | ||
Loans | 1,862 | 1,707 |
Total nonaccrual | 933 | 836 |
Other residential | Residential Portfolio Segment | 30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 109 | 456 |
Other residential | Residential Portfolio Segment | 60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 41 | 151 |
Other residential | Residential Portfolio Segment | Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 0 |
Other residential | Residential Portfolio Segment | Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 150 | 607 |
Other residential | Residential Portfolio Segment | Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 59,392 | 62,296 |
Consumer | Consumer | ||
Aging Status of recorded investment | ||
Loans | 98,558 | 106,008 |
Total nonaccrual | 97 | 110 |
Consumer | Consumer | Performing | ||
Aging Status of recorded investment | ||
Loans | 98,304 | 105,800 |
Consumer | Consumer | Nonperforming | ||
Aging Status of recorded investment | ||
Loans | 254 | 208 |
Total nonaccrual | 97 | 110 |
Consumer | Consumer | 30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 121 | 127 |
Consumer | Consumer | 60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 6 | 20 |
Consumer | Consumer | Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 0 |
Consumer | Consumer | Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 127 | 147 |
Consumer | Consumer | Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 98,334 | 105,751 |
Consumer other | Consumer | ||
Aging Status of recorded investment | ||
Loans | 986,813 | 896,597 |
Consumer other | Consumer | Performing | ||
Aging Status of recorded investment | ||
Loans | 986,813 | 896,596 |
Consumer other | Consumer | Nonperforming | ||
Aging Status of recorded investment | ||
Loans | 0 | 1 |
Total nonaccrual | 0 | 0 |
Consumer other | Consumer | 30-59 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 3,711 | 4,423 |
Consumer other | Consumer | 60-89 days past due | Performing | ||
Aging Status of recorded investment | ||
Loans | 2,258 | 2,358 |
Consumer other | Consumer | Past due 90 days or more | Performing | ||
Aging Status of recorded investment | ||
Loans | 0 | 1 |
Consumer other | Consumer | Financial Asset, Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 5,969 | 6,782 |
Consumer other | Consumer | Financial Asset, Not Past Due | Performing | ||
Aging Status of recorded investment | ||
Loans | 980,844 | 889,815 |
Lease financing | Lease financing | ||
Aging Status of recorded investment | ||
Total nonaccrual | $ 1,399 | $ 1,510 |
LOANS - TDRs by portfolio (Deta
LOANS - TDRs by portfolio (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Troubled debt restructuring | ||
Allowance for loan losses on TDRs | $ 500,000 | $ 700,000 |
Unfunded commitments | 0 | 0 |
TDRs by loan portfolio (excluding PCI loans): | ||
TDR's Accruing | 5,925,000 | 7,012,000 |
TDR's Nonaccrual | 4,673,000 | 5,749,000 |
Total | 10,598,000 | 12,761,000 |
COVID-19 | ||
Troubled debt restructuring | ||
Modifications not considered TDRs | 13,300,000 | |
Commercial Loan Portfolio | Commercial | ||
TDRs by loan portfolio (excluding PCI loans): | ||
TDR's Accruing | 1,826,000 | 833,000 |
TDR's Nonaccrual | 550,000 | 1,422,000 |
Total | 2,376,000 | 2,255,000 |
Commercial Loan Portfolio | Commercial real estate | ||
TDRs by loan portfolio (excluding PCI loans): | ||
TDR's Accruing | 115,000 | 1,522,000 |
TDR's Nonaccrual | 2,851,000 | 3,302,000 |
Total | 2,966,000 | 4,824,000 |
Commercial Loan Portfolio | Construction and land development | ||
TDRs by loan portfolio (excluding PCI loans): | ||
TDR's Accruing | 32,000 | 37,000 |
TDR's Nonaccrual | 0 | 0 |
Total | 32,000 | 37,000 |
Residential Portfolio Segment | Residential real estate | ||
TDRs by loan portfolio (excluding PCI loans): | ||
TDR's Accruing | 2,917,000 | 3,128,000 |
TDR's Nonaccrual | 1,188,000 | 784,000 |
Total | 4,105,000 | 3,912,000 |
Consumer | Consumer | ||
TDRs by loan portfolio (excluding PCI loans): | ||
TDR's Accruing | 157,000 | 98,000 |
TDR's Nonaccrual | 0 | 0 |
Total | 157,000 | 98,000 |
Lease financing | ||
TDRs by loan portfolio (excluding PCI loans): | ||
TDR's Accruing | 878,000 | 1,394,000 |
TDR's Nonaccrual | 84,000 | 241,000 |
Total | $ 962,000 | $ 1,635,000 |
LOANS - TDRs by portfolio - res
LOANS - TDRs by portfolio - restructured and subsequently defaulted (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) loan | Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) loan | |
Troubled debt restructurings: | ||||
Number of loans | loan | 6 | 9 | 15 | 14 |
Pre-modification outstanding balance | $ 953 | $ 2,701 | $ 1,725 | $ 2,836 |
Post-modification outstanding balance | $ 953 | $ 2,704 | $ 1,723 | $ 2,831 |
Commercial Loan Portfolio | Commercial | ||||
Troubled debt restructurings: | ||||
Number of loans | loan | 2 | 5 | 4 | 5 |
Pre-modification outstanding balance | $ 705 | $ 609 | $ 1,324 | $ 609 |
Post-modification outstanding balance | $ 705 | $ 609 | $ 1,324 | $ 609 |
Commercial Loan Portfolio | Commercial real estate | ||||
Troubled debt restructurings: | ||||
Number of loans | loan | 1 | 1 | 1 | 1 |
Pre-modification outstanding balance | $ 6 | $ 1,432 | $ 6 | $ 1,432 |
Post-modification outstanding balance | $ 6 | $ 1,432 | $ 6 | $ 1,432 |
Commercial Loan Portfolio | Construction and land development | ||||
Troubled debt restructurings: | ||||
Number of loans | loan | 0 | 0 | 0 | 1 |
Pre-modification outstanding balance | $ 0 | $ 0 | $ 0 | $ 49 |
Post-modification outstanding balance | $ 0 | $ 0 | $ 0 | $ 40 |
Residential Portfolio Segment | Residential real estate | ||||
Troubled debt restructurings: | ||||
Number of loans | loan | 2 | 1 | 5 | 3 |
Pre-modification outstanding balance | $ 176 | $ 136 | $ 204 | $ 191 |
Post-modification outstanding balance | $ 176 | $ 139 | $ 204 | $ 195 |
Consumer | Consumer | ||||
Troubled debt restructurings: | ||||
Number of loans | loan | 1 | 1 | 3 | 3 |
Pre-modification outstanding balance | $ 66 | $ 19 | $ 107 | $ 50 |
Post-modification outstanding balance | $ 66 | $ 19 | $ 105 | $ 50 |
Lease financing | ||||
Troubled debt restructurings: | ||||
Number of loans | loan | 0 | 1 | 2 | 1 |
Pre-modification outstanding balance | $ 0 | $ 505 | $ 84 | $ 505 |
Post-modification outstanding balance | $ 0 | $ 505 | $ 84 | $ 505 |
LOANS - Risk category (Details)
LOANS - Risk category (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Risk category | ||
Total | $ 5,795,544 | $ 5,224,801 |
Commercial Loan Portfolio | ||
Risk category | ||
Originated in Current Fiscal Year | 919,199 | 1,139,283 |
Originated in Fiscal Year before Latest Fiscal Year | 1,005,863 | 583,612 |
Originated Two Years before Latest Fiscal Year | 503,209 | 422,700 |
Originated Three Years before Latest Fiscal Year | 354,311 | 182,086 |
Originated Four Years before Latest Fiscal Year | 146,168 | 155,099 |
Prior | 471,711 | 419,981 |
Revolving loans | 530,407 | 558,004 |
Total | 3,930,868 | 3,460,765 |
Commercial Loan Portfolio | Acceptable credit quality | ||
Risk category | ||
Originated in Current Fiscal Year | 916,439 | 1,124,410 |
Originated in Fiscal Year before Latest Fiscal Year | 996,015 | 569,511 |
Originated Two Years before Latest Fiscal Year | 496,090 | 358,408 |
Originated Three Years before Latest Fiscal Year | 280,633 | 145,165 |
Originated Four Years before Latest Fiscal Year | 126,327 | 125,419 |
Prior | 396,724 | 358,892 |
Revolving loans | 509,202 | 536,151 |
Total | 3,721,430 | 3,217,956 |
Commercial Loan Portfolio | Special mention | ||
Risk category | ||
Originated in Current Fiscal Year | 1,439 | 362 |
Originated in Fiscal Year before Latest Fiscal Year | 490 | 8,868 |
Originated Two Years before Latest Fiscal Year | 5,294 | 31,488 |
Originated Three Years before Latest Fiscal Year | 24,896 | 12,722 |
Originated Four Years before Latest Fiscal Year | 4,937 | 13,953 |
Prior | 9,699 | 7,589 |
Revolving loans | 1,914 | 4,801 |
Total | 48,669 | 79,783 |
Commercial Loan Portfolio | Substandard | ||
Risk category | ||
Originated in Current Fiscal Year | 710 | 12,815 |
Originated in Fiscal Year before Latest Fiscal Year | 4,675 | 3,728 |
Originated Two Years before Latest Fiscal Year | 585 | 21,797 |
Originated Three Years before Latest Fiscal Year | 40,824 | 23,197 |
Originated Four Years before Latest Fiscal Year | 3,476 | 15,218 |
Prior | 50,844 | 44,169 |
Revolving loans | 13,706 | 11,277 |
Total | 114,820 | 132,201 |
Commercial Loan Portfolio | Substandard – nonaccrual | ||
Risk category | ||
Originated in Current Fiscal Year | 422 | 231 |
Originated in Fiscal Year before Latest Fiscal Year | 3,167 | 1,468 |
Originated Two Years before Latest Fiscal Year | 1,205 | 11,007 |
Originated Three Years before Latest Fiscal Year | 7,958 | 1,002 |
Originated Four Years before Latest Fiscal Year | 11,428 | 509 |
Prior | 14,440 | 9,167 |
Revolving loans | 5,585 | 5,775 |
Total | 44,205 | 29,159 |
Commercial Loan Portfolio | Doubtful | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Commercial Loan Portfolio | Not graded | ||
Risk category | ||
Originated in Current Fiscal Year | 189 | 1,465 |
Originated in Fiscal Year before Latest Fiscal Year | 1,516 | 37 |
Originated Two Years before Latest Fiscal Year | 35 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 4 | 164 |
Revolving loans | 0 | 0 |
Total | 1,744 | 1,666 |
Lease financing | ||
Risk category | ||
Originated in Current Fiscal Year | 88,299 | 154,803 |
Originated in Fiscal Year before Latest Fiscal Year | 128,411 | 125,332 |
Originated Two Years before Latest Fiscal Year | 105,479 | 87,403 |
Originated Three Years before Latest Fiscal Year | 71,186 | 44,548 |
Originated Four Years before Latest Fiscal Year | 31,733 | 9,172 |
Prior | 14,094 | 2,022 |
Revolving loans | 0 | 0 |
Total | 439,202 | 423,280 |
Lease financing | Performing | ||
Risk category | ||
Originated in Current Fiscal Year | 88,299 | 154,803 |
Originated in Fiscal Year before Latest Fiscal Year | 127,755 | 124,575 |
Originated Two Years before Latest Fiscal Year | 104,682 | 86,402 |
Originated Three Years before Latest Fiscal Year | 70,913 | 43,536 |
Originated Four Years before Latest Fiscal Year | 31,261 | 9,077 |
Prior | 14,015 | 1,983 |
Revolving loans | 0 | 0 |
Total | 436,925 | 420,376 |
Lease financing | Nonperforming | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 656 | 757 |
Originated Two Years before Latest Fiscal Year | 797 | 1,001 |
Originated Three Years before Latest Fiscal Year | 273 | 1,012 |
Originated Four Years before Latest Fiscal Year | 472 | 95 |
Prior | 79 | 39 |
Revolving loans | 0 | 0 |
Total | 2,277 | 2,904 |
Loan Portfolios, Excluding Commercial | ||
Risk category | ||
Originated in Current Fiscal Year | 501,063 | 734,588 |
Originated in Fiscal Year before Latest Fiscal Year | 584,878 | 496,436 |
Originated Two Years before Latest Fiscal Year | 324,530 | 184,757 |
Originated Three Years before Latest Fiscal Year | 146,224 | 99,513 |
Originated Four Years before Latest Fiscal Year | 73,166 | 66,488 |
Prior | 169,265 | 109,623 |
Revolving loans | 65,550 | 72,631 |
Total | 1,864,676 | 1,764,036 |
Loan Portfolios, Excluding Commercial | Performing | ||
Risk category | ||
Originated in Current Fiscal Year | 500,972 | 734,499 |
Originated in Fiscal Year before Latest Fiscal Year | 584,161 | 495,566 |
Originated Two Years before Latest Fiscal Year | 323,615 | 183,570 |
Originated Three Years before Latest Fiscal Year | 145,680 | 97,691 |
Originated Four Years before Latest Fiscal Year | 71,705 | 65,477 |
Prior | 163,909 | 105,033 |
Revolving loans | 63,929 | 71,175 |
Total | 1,853,971 | 1,753,011 |
Loan Portfolios, Excluding Commercial | Nonperforming | ||
Risk category | ||
Originated in Current Fiscal Year | 91 | 89 |
Originated in Fiscal Year before Latest Fiscal Year | 717 | 870 |
Originated Two Years before Latest Fiscal Year | 915 | 1,187 |
Originated Three Years before Latest Fiscal Year | 544 | 1,822 |
Originated Four Years before Latest Fiscal Year | 1,461 | 1,011 |
Prior | 5,356 | 4,590 |
Revolving loans | 1,621 | 1,456 |
Total | 10,705 | 11,025 |
Commercial | Commercial Loan Portfolio | ||
Risk category | ||
Originated in Current Fiscal Year | 42,773 | 109,108 |
Originated in Fiscal Year before Latest Fiscal Year | 105,651 | 78,500 |
Originated Two Years before Latest Fiscal Year | 72,395 | 53,202 |
Originated Three Years before Latest Fiscal Year | 31,903 | 28,244 |
Originated Four Years before Latest Fiscal Year | 22,678 | 27,713 |
Prior | 58,740 | 40,663 |
Revolving loans | 413,642 | 433,240 |
Total | 747,782 | 770,670 |
Commercial | Commercial Loan Portfolio | Acceptable credit quality | ||
Risk category | ||
Originated in Current Fiscal Year | 42,773 | 108,490 |
Originated in Fiscal Year before Latest Fiscal Year | 104,834 | 78,071 |
Originated Two Years before Latest Fiscal Year | 72,395 | 50,458 |
Originated Three Years before Latest Fiscal Year | 30,577 | 20,045 |
Originated Four Years before Latest Fiscal Year | 19,403 | 27,405 |
Prior | 53,815 | 35,856 |
Revolving loans | 394,649 | 417,920 |
Total | 718,446 | 738,245 |
Commercial | Commercial Loan Portfolio | Special mention | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 186 |
Originated in Fiscal Year before Latest Fiscal Year | 113 | 57 |
Originated Two Years before Latest Fiscal Year | 0 | 198 |
Originated Three Years before Latest Fiscal Year | 325 | 6,154 |
Originated Four Years before Latest Fiscal Year | 1,279 | 2 |
Prior | 282 | 316 |
Revolving loans | 1,887 | 1,517 |
Total | 3,886 | 8,430 |
Commercial | Commercial Loan Portfolio | Substandard | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 380 |
Originated in Fiscal Year before Latest Fiscal Year | 364 | 372 |
Originated Two Years before Latest Fiscal Year | 0 | 1,934 |
Originated Three Years before Latest Fiscal Year | 631 | 1,868 |
Originated Four Years before Latest Fiscal Year | 1,822 | 64 |
Prior | 4,260 | 4,322 |
Revolving loans | 11,570 | 8,099 |
Total | 18,647 | 17,039 |
Commercial | Commercial Loan Portfolio | Substandard – nonaccrual | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 52 |
Originated in Fiscal Year before Latest Fiscal Year | 340 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 612 |
Originated Three Years before Latest Fiscal Year | 370 | 177 |
Originated Four Years before Latest Fiscal Year | 174 | 242 |
Prior | 383 | 169 |
Revolving loans | 5,536 | 5,704 |
Total | 6,803 | 6,956 |
Commercial | Commercial Loan Portfolio | Doubtful | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Commercial | Commercial Loan Portfolio | Not graded | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Commercial other | Commercial Loan Portfolio | ||
Risk category | ||
Originated in Current Fiscal Year | 133,371 | 264,980 |
Originated in Fiscal Year before Latest Fiscal Year | 183,379 | 169,413 |
Originated Two Years before Latest Fiscal Year | 133,324 | 115,715 |
Originated Three Years before Latest Fiscal Year | 88,152 | 34,672 |
Originated Four Years before Latest Fiscal Year | 24,062 | 303 |
Prior | 359 | 341 |
Revolving loans | 80,829 | 94,094 |
Total | 643,476 | 679,518 |
Commercial other | Commercial Loan Portfolio | Acceptable credit quality | ||
Risk category | ||
Originated in Current Fiscal Year | 132,949 | 264,282 |
Originated in Fiscal Year before Latest Fiscal Year | 182,457 | 167,326 |
Originated Two Years before Latest Fiscal Year | 131,480 | 101,083 |
Originated Three Years before Latest Fiscal Year | 77,820 | 29,981 |
Originated Four Years before Latest Fiscal Year | 20,303 | 303 |
Prior | 359 | 341 |
Revolving loans | 79,421 | 88,198 |
Total | 624,789 | 651,514 |
Commercial other | Commercial Loan Portfolio | Special mention | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 210 | 1,929 |
Originated Two Years before Latest Fiscal Year | 1,818 | 10,676 |
Originated Three Years before Latest Fiscal Year | 9,055 | 3,966 |
Originated Four Years before Latest Fiscal Year | 3,185 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 3,252 |
Total | 14,268 | 19,823 |
Commercial other | Commercial Loan Portfolio | Substandard | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 688 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 62 |
Originated Three Years before Latest Fiscal Year | 61 | 341 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 1,408 | 2,623 |
Total | 1,469 | 3,714 |
Commercial other | Commercial Loan Portfolio | Substandard – nonaccrual | ||
Risk category | ||
Originated in Current Fiscal Year | 422 | 10 |
Originated in Fiscal Year before Latest Fiscal Year | 712 | 158 |
Originated Two Years before Latest Fiscal Year | 26 | 3,894 |
Originated Three Years before Latest Fiscal Year | 1,216 | 384 |
Originated Four Years before Latest Fiscal Year | 574 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 21 |
Total | 2,950 | 4,467 |
Commercial other | Commercial Loan Portfolio | Doubtful | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Commercial other | Commercial Loan Portfolio | Not graded | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Construction and land development | Commercial Loan Portfolio | ||
Risk category | ||
Originated in Current Fiscal Year | 49,241 | 66,518 |
Originated in Fiscal Year before Latest Fiscal Year | 69,159 | 66,647 |
Originated Two Years before Latest Fiscal Year | 46,530 | 24,326 |
Originated Three Years before Latest Fiscal Year | 8,274 | 10,029 |
Originated Four Years before Latest Fiscal Year | 4,102 | 2,511 |
Prior | 2,616 | 4,266 |
Revolving loans | 24,033 | 19,452 |
Total | 203,955 | 193,749 |
Construction and land development | Commercial Loan Portfolio | Acceptable credit quality | ||
Risk category | ||
Originated in Current Fiscal Year | 49,052 | 65,053 |
Originated in Fiscal Year before Latest Fiscal Year | 67,643 | 65,274 |
Originated Two Years before Latest Fiscal Year | 46,495 | 19,269 |
Originated Three Years before Latest Fiscal Year | 8,052 | 10,029 |
Originated Four Years before Latest Fiscal Year | 4,102 | 2,511 |
Prior | 2,363 | 3,841 |
Revolving loans | 24,033 | 19,452 |
Total | 201,740 | 185,429 |
Construction and land development | Commercial Loan Portfolio | Special mention | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 5,014 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 220 | 221 |
Revolving loans | 0 | 0 |
Total | 220 | 5,235 |
Construction and land development | Commercial Loan Portfolio | Substandard | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 1,336 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 1,336 |
Construction and land development | Commercial Loan Portfolio | Substandard – nonaccrual | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 43 |
Originated Three Years before Latest Fiscal Year | 222 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 29 | 40 |
Revolving loans | 0 | 0 |
Total | 251 | 83 |
Construction and land development | Commercial Loan Portfolio | Doubtful | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Construction and land development | Commercial Loan Portfolio | Not graded | ||
Risk category | ||
Originated in Current Fiscal Year | 189 | 1,465 |
Originated in Fiscal Year before Latest Fiscal Year | 1,516 | 37 |
Originated Two Years before Latest Fiscal Year | 35 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 4 | 164 |
Revolving loans | 0 | 0 |
Total | 1,744 | 1,666 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | ||
Risk category | ||
Originated in Current Fiscal Year | 455,143 | 447,874 |
Originated in Fiscal Year before Latest Fiscal Year | 434,723 | 162,529 |
Originated Two Years before Latest Fiscal Year | 148,139 | 163,715 |
Originated Three Years before Latest Fiscal Year | 172,113 | 43,392 |
Originated Four Years before Latest Fiscal Year | 31,777 | 70,970 |
Prior | 234,682 | 211,345 |
Revolving loans | 3,453 | 5,508 |
Total | 1,480,030 | 1,105,333 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | Acceptable credit quality | ||
Risk category | ||
Originated in Current Fiscal Year | 453,041 | 441,483 |
Originated in Fiscal Year before Latest Fiscal Year | 433,844 | 154,379 |
Originated Two Years before Latest Fiscal Year | 143,804 | 134,507 |
Originated Three Years before Latest Fiscal Year | 113,828 | 20,524 |
Originated Four Years before Latest Fiscal Year | 19,577 | 55,207 |
Prior | 187,187 | 182,465 |
Revolving loans | 3,203 | 5,258 |
Total | 1,354,484 | 993,823 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | Special mention | ||
Risk category | ||
Originated in Current Fiscal Year | 1,439 | 26 |
Originated in Fiscal Year before Latest Fiscal Year | 26 | 6,341 |
Originated Two Years before Latest Fiscal Year | 3,476 | 14,177 |
Originated Three Years before Latest Fiscal Year | 15,341 | 2,296 |
Originated Four Years before Latest Fiscal Year | 313 | 711 |
Prior | 7,211 | 2,272 |
Revolving loans | 0 | 0 |
Total | 27,806 | 25,823 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | Substandard | ||
Risk category | ||
Originated in Current Fiscal Year | 663 | 6,196 |
Originated in Fiscal Year before Latest Fiscal Year | 109 | 817 |
Originated Two Years before Latest Fiscal Year | 0 | 8,825 |
Originated Three Years before Latest Fiscal Year | 37,065 | 20,572 |
Originated Four Years before Latest Fiscal Year | 1,641 | 14,857 |
Prior | 37,161 | 22,344 |
Revolving loans | 250 | 250 |
Total | 76,889 | 73,861 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | Substandard – nonaccrual | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 169 |
Originated in Fiscal Year before Latest Fiscal Year | 744 | 992 |
Originated Two Years before Latest Fiscal Year | 859 | 6,206 |
Originated Three Years before Latest Fiscal Year | 5,879 | 0 |
Originated Four Years before Latest Fiscal Year | 10,246 | 195 |
Prior | 3,123 | 4,264 |
Revolving loans | 0 | 0 |
Total | 20,851 | 11,826 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | Doubtful | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Commercial real estate non-owner occupied | Commercial Loan Portfolio | Not graded | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Commercial real estate owner occupied | Commercial Loan Portfolio | ||
Risk category | ||
Originated in Current Fiscal Year | 97,334 | 145,426 |
Originated in Fiscal Year before Latest Fiscal Year | 143,505 | 70,884 |
Originated Two Years before Latest Fiscal Year | 69,063 | 58,313 |
Originated Three Years before Latest Fiscal Year | 48,988 | 36,676 |
Originated Four Years before Latest Fiscal Year | 35,350 | 44,039 |
Prior | 125,475 | 112,097 |
Revolving loans | 4,872 | 2,223 |
Total | 524,587 | 469,658 |
Commercial real estate owner occupied | Commercial Loan Portfolio | Acceptable credit quality | ||
Risk category | ||
Originated in Current Fiscal Year | 97,287 | 141,084 |
Originated in Fiscal Year before Latest Fiscal Year | 138,775 | 69,415 |
Originated Two Years before Latest Fiscal Year | 68,158 | 47,187 |
Originated Three Years before Latest Fiscal Year | 45,755 | 35,974 |
Originated Four Years before Latest Fiscal Year | 34,857 | 30,583 |
Prior | 115,714 | 98,442 |
Revolving loans | 4,548 | 1,886 |
Total | 505,094 | 424,571 |
Commercial real estate owner occupied | Commercial Loan Portfolio | Special mention | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 150 |
Originated in Fiscal Year before Latest Fiscal Year | 141 | 24 |
Originated Two Years before Latest Fiscal Year | 0 | 187 |
Originated Three Years before Latest Fiscal Year | 175 | 161 |
Originated Four Years before Latest Fiscal Year | 160 | 13,087 |
Prior | 1,824 | 4,540 |
Revolving loans | 27 | 32 |
Total | 2,327 | 18,181 |
Commercial real estate owner occupied | Commercial Loan Portfolio | Substandard | ||
Risk category | ||
Originated in Current Fiscal Year | 47 | 4,192 |
Originated in Fiscal Year before Latest Fiscal Year | 4,187 | 1,127 |
Originated Two Years before Latest Fiscal Year | 585 | 10,810 |
Originated Three Years before Latest Fiscal Year | 2,901 | 205 |
Originated Four Years before Latest Fiscal Year | 0 | 297 |
Prior | 5,182 | 6,466 |
Revolving loans | 297 | 305 |
Total | 13,199 | 23,402 |
Commercial real estate owner occupied | Commercial Loan Portfolio | Substandard – nonaccrual | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 402 | 318 |
Originated Two Years before Latest Fiscal Year | 320 | 129 |
Originated Three Years before Latest Fiscal Year | 157 | 336 |
Originated Four Years before Latest Fiscal Year | 333 | 72 |
Prior | 2,755 | 2,649 |
Revolving loans | 0 | 0 |
Total | 3,967 | 3,504 |
Commercial real estate owner occupied | Commercial Loan Portfolio | Doubtful | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Commercial real estate owner occupied | Commercial Loan Portfolio | Not graded | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Multi-family | Commercial Loan Portfolio | ||
Risk category | ||
Originated in Current Fiscal Year | 138,000 | 89,317 |
Originated in Fiscal Year before Latest Fiscal Year | 53,047 | 20,531 |
Originated Two Years before Latest Fiscal Year | 19,800 | 2,096 |
Originated Three Years before Latest Fiscal Year | 589 | 25,450 |
Originated Four Years before Latest Fiscal Year | 24,927 | 1,414 |
Prior | 27,789 | 30,826 |
Revolving loans | 1,597 | 2,241 |
Total | 265,749 | 171,875 |
Multi-family | Commercial Loan Portfolio | Acceptable credit quality | ||
Risk category | ||
Originated in Current Fiscal Year | 138,000 | 88,329 |
Originated in Fiscal Year before Latest Fiscal Year | 52,078 | 20,080 |
Originated Two Years before Latest Fiscal Year | 19,800 | 1,973 |
Originated Three Years before Latest Fiscal Year | 475 | 25,450 |
Originated Four Years before Latest Fiscal Year | 24,927 | 1,414 |
Prior | 16,031 | 18,642 |
Revolving loans | 1,597 | 2,241 |
Total | 252,908 | 158,129 |
Multi-family | Commercial Loan Portfolio | Special mention | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 451 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 451 |
Multi-family | Commercial Loan Portfolio | Substandard | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 988 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 3,608 | 10,139 |
Revolving loans | 0 | 0 |
Total | 3,608 | 11,127 |
Multi-family | Commercial Loan Portfolio | Substandard – nonaccrual | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 969 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 123 |
Originated Three Years before Latest Fiscal Year | 114 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 8,150 | 2,045 |
Revolving loans | 0 | 0 |
Total | 9,233 | 2,168 |
Multi-family | Commercial Loan Portfolio | Doubtful | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Multi-family | Commercial Loan Portfolio | Not graded | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Farmland | Commercial Loan Portfolio | ||
Risk category | ||
Originated in Current Fiscal Year | 3,337 | 16,060 |
Originated in Fiscal Year before Latest Fiscal Year | 16,399 | 15,108 |
Originated Two Years before Latest Fiscal Year | 13,958 | 5,333 |
Originated Three Years before Latest Fiscal Year | 4,292 | 3,623 |
Originated Four Years before Latest Fiscal Year | 3,272 | 8,149 |
Prior | 22,050 | 20,443 |
Revolving loans | 1,981 | 1,246 |
Total | 65,289 | 69,962 |
Farmland | Commercial Loan Portfolio | Acceptable credit quality | ||
Risk category | ||
Originated in Current Fiscal Year | 3,337 | 15,689 |
Originated in Fiscal Year before Latest Fiscal Year | 16,384 | 14,966 |
Originated Two Years before Latest Fiscal Year | 13,958 | 3,931 |
Originated Three Years before Latest Fiscal Year | 4,126 | 3,162 |
Originated Four Years before Latest Fiscal Year | 3,158 | 7,996 |
Prior | 21,255 | 19,305 |
Revolving loans | 1,751 | 1,196 |
Total | 63,969 | 66,245 |
Farmland | Commercial Loan Portfolio | Special mention | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 66 |
Originated Two Years before Latest Fiscal Year | 0 | 1,236 |
Originated Three Years before Latest Fiscal Year | 0 | 145 |
Originated Four Years before Latest Fiscal Year | 0 | 153 |
Prior | 162 | 240 |
Revolving loans | 0 | 0 |
Total | 162 | 1,840 |
Farmland | Commercial Loan Portfolio | Substandard | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 371 |
Originated in Fiscal Year before Latest Fiscal Year | 15 | 76 |
Originated Two Years before Latest Fiscal Year | 0 | 166 |
Originated Three Years before Latest Fiscal Year | 166 | 211 |
Originated Four Years before Latest Fiscal Year | 13 | 0 |
Prior | 633 | 898 |
Revolving loans | 181 | 0 |
Total | 1,008 | 1,722 |
Farmland | Commercial Loan Portfolio | Substandard – nonaccrual | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 105 |
Originated Four Years before Latest Fiscal Year | 101 | 0 |
Prior | 0 | 0 |
Revolving loans | 49 | 50 |
Total | 150 | 155 |
Farmland | Commercial Loan Portfolio | Doubtful | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Farmland | Commercial Loan Portfolio | Not graded | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 0 | 0 |
Residential first lien | Residential Portfolio Segment | ||
Risk category | ||
Originated in Current Fiscal Year | 30,586 | 38,508 |
Originated in Fiscal Year before Latest Fiscal Year | 41,338 | 32,028 |
Originated Two Years before Latest Fiscal Year | 32,491 | 24,484 |
Originated Three Years before Latest Fiscal Year | 22,025 | 31,622 |
Originated Four Years before Latest Fiscal Year | 24,807 | 49,040 |
Prior | 127,623 | 97,842 |
Revolving loans | 758 | 888 |
Total | 279,628 | 274,412 |
Residential first lien | Residential Portfolio Segment | Performing | ||
Risk category | ||
Originated in Current Fiscal Year | 30,586 | 38,508 |
Originated in Fiscal Year before Latest Fiscal Year | 41,338 | 31,920 |
Originated Two Years before Latest Fiscal Year | 32,385 | 24,311 |
Originated Three Years before Latest Fiscal Year | 21,765 | 30,842 |
Originated Four Years before Latest Fiscal Year | 23,865 | 48,276 |
Prior | 122,619 | 93,462 |
Revolving loans | 758 | 888 |
Total | 273,316 | 268,207 |
Residential first lien | Residential Portfolio Segment | Nonperforming | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 108 |
Originated Two Years before Latest Fiscal Year | 106 | 173 |
Originated Three Years before Latest Fiscal Year | 260 | 780 |
Originated Four Years before Latest Fiscal Year | 942 | 764 |
Prior | 5,004 | 4,380 |
Revolving loans | 0 | 0 |
Total | 6,312 | 6,205 |
Other residential | Residential Portfolio Segment | ||
Risk category | ||
Originated in Current Fiscal Year | 857 | 888 |
Originated in Fiscal Year before Latest Fiscal Year | 549 | 679 |
Originated Two Years before Latest Fiscal Year | 613 | 1,530 |
Originated Three Years before Latest Fiscal Year | 1,218 | 1,966 |
Originated Four Years before Latest Fiscal Year | 1,678 | 1,339 |
Prior | 2,221 | 1,659 |
Revolving loans | 53,339 | 55,678 |
Total | 60,475 | 63,739 |
Other residential | Residential Portfolio Segment | Performing | ||
Risk category | ||
Originated in Current Fiscal Year | 857 | 888 |
Originated in Fiscal Year before Latest Fiscal Year | 549 | 679 |
Originated Two Years before Latest Fiscal Year | 613 | 1,520 |
Originated Three Years before Latest Fiscal Year | 1,209 | 1,950 |
Originated Four Years before Latest Fiscal Year | 1,668 | 1,211 |
Prior | 1,999 | 1,559 |
Revolving loans | 51,718 | 54,225 |
Total | 58,613 | 62,032 |
Other residential | Residential Portfolio Segment | Nonperforming | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 10 |
Originated Three Years before Latest Fiscal Year | 9 | 16 |
Originated Four Years before Latest Fiscal Year | 10 | 128 |
Prior | 222 | 100 |
Revolving loans | 1,621 | 1,453 |
Total | 1,862 | 1,707 |
Consumer | Consumer | ||
Risk category | ||
Originated in Current Fiscal Year | 9,696 | 66,004 |
Originated in Fiscal Year before Latest Fiscal Year | 45,008 | 14,960 |
Originated Two Years before Latest Fiscal Year | 11,095 | 7,877 |
Originated Three Years before Latest Fiscal Year | 5,996 | 8,742 |
Originated Four Years before Latest Fiscal Year | 6,134 | 3,049 |
Prior | 18,277 | 2,653 |
Revolving loans | 2,352 | 2,723 |
Total | 98,558 | 106,008 |
Consumer | Consumer | Performing | ||
Risk category | ||
Originated in Current Fiscal Year | 9,605 | 65,915 |
Originated in Fiscal Year before Latest Fiscal Year | 44,947 | 14,955 |
Originated Two Years before Latest Fiscal Year | 11,083 | 7,874 |
Originated Three Years before Latest Fiscal Year | 5,994 | 8,728 |
Originated Four Years before Latest Fiscal Year | 6,097 | 3,025 |
Prior | 18,226 | 2,582 |
Revolving loans | 2,352 | 2,721 |
Total | 98,304 | 105,800 |
Consumer | Consumer | Nonperforming | ||
Risk category | ||
Originated in Current Fiscal Year | 91 | 89 |
Originated in Fiscal Year before Latest Fiscal Year | 61 | 5 |
Originated Two Years before Latest Fiscal Year | 12 | 3 |
Originated Three Years before Latest Fiscal Year | 2 | 14 |
Originated Four Years before Latest Fiscal Year | 37 | 24 |
Prior | 51 | 71 |
Revolving loans | 0 | 2 |
Total | 254 | 208 |
Consumer other | Consumer | ||
Risk category | ||
Originated in Current Fiscal Year | 371,625 | 474,385 |
Originated in Fiscal Year before Latest Fiscal Year | 369,572 | 323,437 |
Originated Two Years before Latest Fiscal Year | 174,852 | 63,463 |
Originated Three Years before Latest Fiscal Year | 45,799 | 12,635 |
Originated Four Years before Latest Fiscal Year | 8,814 | 3,888 |
Prior | 7,050 | 5,447 |
Revolving loans | 9,101 | 13,342 |
Total | 986,813 | 896,597 |
Consumer other | Consumer | Performing | ||
Risk category | ||
Originated in Current Fiscal Year | 371,625 | 474,385 |
Originated in Fiscal Year before Latest Fiscal Year | 369,572 | 323,437 |
Originated Two Years before Latest Fiscal Year | 174,852 | 63,463 |
Originated Three Years before Latest Fiscal Year | 45,799 | 12,635 |
Originated Four Years before Latest Fiscal Year | 8,814 | 3,888 |
Prior | 7,050 | 5,447 |
Revolving loans | 9,101 | 13,341 |
Total | 986,813 | 896,596 |
Consumer other | Consumer | Nonperforming | ||
Risk category | ||
Originated in Current Fiscal Year | 0 | 0 |
Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 |
Originated Two Years before Latest Fiscal Year | 0 | 0 |
Originated Three Years before Latest Fiscal Year | 0 | 0 |
Originated Four Years before Latest Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 1 |
Total | $ 0 | $ 1 |
PREMISES, EQUIPMENT AND LEASE_2
PREMISES, EQUIPMENT AND LEASES - Premises and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||||
Premises and equipment gross | $ 126,004 | $ 126,004 | $ 124,812 | ||
Lease right-of-use assets | 7,670 | 7,670 | 8,428 | ||
Accumulated depreciation | (48,336) | (48,336) | (45,592) | ||
Premises and equipment, net | 77,668 | 77,668 | 79,220 | ||
Depreciation on premises and equipment | 1,200 | $ 1,400 | 2,445 | $ 2,851 | |
Land | |||||
Property, Plant and Equipment [Line Items] | |||||
Premises and equipment gross | 15,948 | 15,948 | 15,696 | ||
Buildings and improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Premises and equipment gross | 68,625 | 68,625 | 67,143 | ||
Furniture and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Premises and equipment gross | $ 33,761 | $ 33,761 | $ 33,545 |
PREMISES, EQUIPMENT AND LEASE_3
PREMISES, EQUIPMENT AND LEASES - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Renewal term of lease (in years) | 10 years | |
Operating lease liabilities | $ 9,709 | $ 10,700 |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Remaining lease terms | 1 month | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Remaining lease terms | 11 years |
PREMISES, EQUIPMENT AND LEASE_4
PREMISES, EQUIPMENT AND LEASES - Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||||
Operating lease cost | $ 532 | $ 514 | $ 1,040 | $ 1,037 |
Operating cash flows from leases | 630 | 603 | 1,236 | 1,386 |
Right-of-use assets obtained in exchange for lease obligations | 0 | 609 | 121 | 689 |
Right-of-use assets derecognized due to terminations or impairment | $ 0 | $ (88) | $ 0 | $ (210) |
Weighted average remaining lease term | 7 years 4 months 24 days | 7 years 10 months 24 days | 7 years 4 months 24 days | 7 years 10 months 24 days |
Weighted average discount rate | 2.89% | 2.86% | 2.89% | 2.86% |
PREMISES, EQUIPMENT AND LEASE_5
PREMISES, EQUIPMENT AND LEASES - Projected Minimum Rental Payments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Abstract] | ||
2022 remaining | $ 1,028 | |
2023 | 2,105 | |
2024 | 1,799 | |
2025 | 894 | |
2026 | 763 | |
Thereafter | 4,251 | |
Total future minimum lease payments | 10,840 | |
Less imputed interest | (1,131) | |
Operating lease liabilities | $ 9,709 | $ 10,700 |
LOAN SERVICING RIGHTS - Loan Se
LOAN SERVICING RIGHTS - Loan Servicing Rights and Carrying Value (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Servicing Assets at Fair Value [Line Items] | ||
Serviced Loans | $ 2,779,430 | $ 3,003,192 |
Carrying Value | 25,879 | 28,865 |
Commercial FHA | ||
Servicing Assets at Fair Value [Line Items] | ||
Serviced Loans | 2,456,760 | 2,650,531 |
Carrying Value | 24,603 | 27,386 |
SBA | ||
Servicing Assets at Fair Value [Line Items] | ||
Serviced Loans | 46,997 | 50,043 |
Carrying Value | 660 | 774 |
Residential | ||
Servicing Assets at Fair Value [Line Items] | ||
Serviced Loans | 275,673 | 302,618 |
Carrying Value | $ 616 | $ 705 |
LOAN SERVICING RIGHTS - Narrati
LOAN SERVICING RIGHTS - Narrative (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | ||
Prepayment rate | 8.21% | 8.24% |
Discount rate | 11.69% | 11.87% |
LOAN SERVICING RIGHTS - Changes
LOAN SERVICING RIGHTS - Changes in MSR (Details) - Commercial FHA - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Loan servicing rights: | ||||||||
Loan servicing rights, Beginning balance | $ 26,111 | $ 35,997 | $ 27,386 | $ 38,322 | ||||
Amortization | (639) | (780) | (1,299) | (1,563) | ||||
Refinancing fee received from third party | 0 | (337) | (221) | (604) | ||||
Permanent impairment | (869) | (1,148) | (1,263) | (2,423) | ||||
Loan servicing rights, Ending balance | 24,603 | 33,732 | 24,603 | 33,732 | ||||
Fair value, Beginning of period | 26,865 | 34,255 | 26,865 | 34,255 | $ 27,941 | $ 28,368 | $ 35,997 | $ 38,322 |
Fair value, End of period | $ 26,865 | $ 34,255 | $ 26,865 | $ 34,255 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Goodwill [Line Items] | ||
Goodwill | $ 161,904 | $ 161,904 |
Banking | ||
Goodwill [Line Items] | ||
Goodwill | 157,158 | 157,158 |
Wealth management | ||
Goodwill [Line Items] | ||
Goodwill | $ 4,746 | $ 4,746 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Intangible assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 17, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Finite-lived intangible assets | ||||||
Gross carrying amount | $ 74,831 | $ 74,831 | $ 72,930 | |||
Accumulated amortization | (51,272) | (51,272) | (48,556) | |||
Total | 23,559 | 23,559 | 24,374 | |||
Amortization of intangible assets | 1,318 | $ 1,470 | 2,716 | $ 2,985 | ||
FNBC Bank & Trust | ||||||
Finite-lived intangible assets | ||||||
Intangible assets | $ 1,901 | |||||
Core deposit intangibles | ||||||
Finite-lived intangible assets | ||||||
Gross carrying amount | 58,913 | 58,913 | 57,012 | |||
Accumulated amortization | (42,664) | (42,664) | (40,603) | |||
Total | 16,249 | 16,249 | 16,409 | |||
Core deposit intangibles | FNBC Bank & Trust | ||||||
Finite-lived intangible assets | ||||||
Intangible assets | $ 1,901 | |||||
Estimated useful life | 10 years | |||||
Customer relationship intangibles | ||||||
Finite-lived intangible assets | ||||||
Gross carrying amount | 15,918 | 15,918 | 15,918 | |||
Accumulated amortization | (8,608) | (8,608) | (7,953) | |||
Total | $ 7,310 | $ 7,310 | $ 7,965 |
DERIVATIVE INSTRUMENTS - Intere
DERIVATIVE INSTRUMENTS - Interest Rate Lock Commitments and Forward Commitments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Other assets | ||
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition | ||
Notational amount, asset | $ 30,917 | $ 126,643 |
Fair value gain (loss) | 91 | 410 |
Interest rate lock commitments | Other assets | ||
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition | ||
Notational amount, asset | 22,704 | 66,216 |
Fair value gain (loss) | 91 | 410 |
Forward commitments to sell mortgage-backed securities | Other assets | ||
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition | ||
Notational amount, asset | 8,213 | 60,427 |
Fair value gain (loss) | 0 | 0 |
Forward commitments to sell mortgage-backed securities | Other liabilities | ||
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition | ||
Fair value gain (loss) | (11) | (19) |
Notional amount, liability | $ 9,500 | $ 18,362 |
DERIVATIVE INSTRUMENTS - Narrat
DERIVATIVE INSTRUMENTS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Derivative disclosures | ||||||||
Derivative, gain (loss) on derivative, net | $ (400) | $ (500) | $ (300) | $ (1,000) | ||||
Stockholders' equity | 636,188 | $ 648,186 | 636,188 | $ 648,186 | $ 644,986 | $ 663,837 | $ 635,467 | $ 621,391 |
Accumulated Gain (Loss), Net, Cash Flow Hedges | ||||||||
Derivative disclosures | ||||||||
Stockholders' equity | 5,900 | 5,900 | 3,700 | |||||
Other assets | ||||||||
Derivative disclosures | ||||||||
Notational amount, asset | 30,917 | 30,917 | 126,643 | |||||
Other assets | Cash Flow Hedge | ||||||||
Derivative disclosures | ||||||||
Derivative assets | 8,200 | 8,200 | ||||||
Other liabilities | Cash Flow Hedge | ||||||||
Derivative disclosures | ||||||||
Derivative liability | 5,100 | |||||||
Receive Fixed, Pay Variable Interest Rate Swaps | Cash Flow Hedge | ||||||||
Derivative disclosures | ||||||||
Notational amount, asset | 200,000 | 200,000 | ||||||
Future Starting Receive Fixed, Pay Variable Interest Rate Swaps | Cash Flow Hedge | ||||||||
Derivative disclosures | ||||||||
Notational amount, asset | 140,000 | 140,000 | ||||||
Interest rate swap contracts | ||||||||
Derivative disclosures | ||||||||
Notional amount of interest rate swaps | 7,700 | 7,700 | 7,900 | |||||
Interest rate swap contracts | Other liabilities | ||||||||
Derivative disclosures | ||||||||
Fair value of offsetting counterparty derivative instruments | $ 200 | $ 200 | $ 400 |
DERIVATIVE INSTRUMENTS - Cash F
DERIVATIVE INSTRUMENTS - Cash Flow Hedges (Details) - Cash Flow Hedge - Receive Fixed, Pay Variable Interest Rate Swaps $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Derivative disclosures | |
Notational amount, asset | $ 200 |
Average remaining life in years | 3 years 9 months 14 days |
Long | |
Derivative disclosures | |
Weighted average rate | 0.64% |
Short | |
Derivative disclosures | |
Weighted average rate | 5.48% |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Classification of deposits | ||
Noninterest-bearing demand | $ 1,972,261 | $ 2,245,701 |
Interest-bearing: | ||
Checking | 1,808,885 | 1,663,021 |
Money market | 1,027,547 | 869,067 |
Savings | 740,364 | 679,115 |
Time | 635,381 | 653,744 |
Total deposits | $ 6,184,438 | $ 6,110,648 |
SHORT-TERM BORROWINGS (Details)
SHORT-TERM BORROWINGS (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Short-term Debt [Line Items] | ||
Outstanding at period-end | $ 67,689,000 | $ 76,803,000 |
Average amount outstanding | 64,642,000 | 68,986,000 |
Maximum amount outstanding at any month end | $ 76,807,000 | $ 77,497,000 |
Weighted average interest rate: | ||
During period | 0.14% | 0.12% |
End of period | 0.14% | 0.13% |
Short-Term Borrowings | ||
Investment securities pledged/collateralized for secured borrowings | $ 63,900,000 | $ 78,300,000 |
Line of credit | 0 | 0 |
Loans | 5,795,544,000 | 5,224,801,000 |
Line of credit facility, maximum borrowing capacity | 45,000,000 | |
Commercial real estate | Asset Pledged as Collateral | ||
Short-Term Borrowings | ||
Loans | 25,400,000 | 64,800,000 |
Federal Reserve Discount Window | ||
Short-Term Borrowings | ||
Line of credit | $ 22,700,000 | $ 55,900,000 |
FHLB ADVANCES AND OTHER BORRO_3
FHLB ADVANCES AND OTHER BORROWINGS (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Oct. 12, 2021 |
FHLB ADVANCES AND OTHER BORROWINGS | |||
Total FHLB advances and other borrowings | $ 285,000 | $ 310,171 | |
FHLB advances, collateral for mortgage and home equity line of credit loans | 2,590,000 | 2,100,000 | |
Midland States Bancorp, Inc. | Series G Preferred Stock | |||
FHLB ADVANCES AND OTHER BORROWINGS | |||
Long term debt | $ 0 | $ 171 | |
Preferred stock, shares issued (in shares) | 171 | 171 | |
Preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 | |
Midland States Bancorp, Inc. | Line of Credit | |||
FHLB ADVANCES AND OTHER BORROWINGS | |||
Long term debt | $ 0 | $ 0 | |
Face amount | $ 15,000 | ||
Midland States Bancorp, Inc. | Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
FHLB ADVANCES AND OTHER BORROWINGS | |||
Interest rate | 1.60% | 1.60% | 1.60% |
Midland States Bank | Putable fixed rate maturing through December 2024 | |||
FHLB ADVANCES AND OTHER BORROWINGS | |||
Total FHLB advances and other borrowings | $ 110,000 | $ 210,000 | |
Interest rate | 2.35% | 1.48% | |
Midland States Bank | Floater rate maturing October 2023 | |||
FHLB ADVANCES AND OTHER BORROWINGS | |||
Total FHLB advances and other borrowings | $ 100,000 | $ 100,000 | |
Midland States Bank | Floater rate maturing October 2023 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
FHLB ADVANCES AND OTHER BORROWINGS | |||
Interest rate | 3.14% | 1.67% | |
Midland States Bank | Short term fixed rate maturing through July 2022 | |||
FHLB ADVANCES AND OTHER BORROWINGS | |||
Total FHLB advances and other borrowings | $ 75,000 | $ 0 | |
Interest rate | 1.63% | 1.63% |
SUBORDINATED DEBT (Details)
SUBORDINATED DEBT (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Subordinated Borrowing [Line Items] | ||
Carrying amount | $ 139,277 | $ 139,091 |
6.50% Subordinated Debt | ||
Subordinated Borrowing [Line Items] | ||
Carrying amount | $ 547 | $ 546 |
Fixed interest rate | 6.50% | 6.50% |
Face amount | $ 550 | $ 550 |
6.25% Subordinated Debt | ||
Subordinated Borrowing [Line Items] | ||
Carrying amount | $ 39,658 | $ 39,626 |
Fixed interest rate | 6.25% | 6.25% |
Face amount | $ 40,000 | $ 40,000 |
5.00% Subordinated Debt | ||
Subordinated Borrowing [Line Items] | ||
Carrying amount | $ 72,171 | $ 72,042 |
Fixed interest rate | 5% | 5% |
Face amount | $ 72,750 | $ 72,750 |
5.50% Subordinated Debt | ||
Subordinated Borrowing [Line Items] | ||
Carrying amount | $ 26,901 | $ 26,877 |
Fixed interest rate | 5.50% | 5.50% |
Face amount | $ 27,250 | $ 27,250 |
LIBOR | 6.25% Subordinated Debt | ||
Subordinated Borrowing [Line Items] | ||
Variable interest rate | 4.23% | 4.23% |
Three month SOFR | 5.00% Subordinated Debt | ||
Subordinated Borrowing [Line Items] | ||
Variable interest rate | 3.61% | 3.61% |
Three month SOFR | 5.50% Subordinated Debt | ||
Subordinated Borrowing [Line Items] | ||
Variable interest rate | 4.05% | 4.05% |
EARNINGS PER COMMON SHARE - Nar
EARNINGS PER COMMON SHARE - Narrative (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Stock option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 60,698 | 71,547 | 60,698 | 71,547 |
EARNINGS PER COMMON SHARE - Bas
EARNINGS PER COMMON SHARE - Basic and Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 21,883 | $ 20,124 | $ 42,632 | $ 38,662 |
Common shareholder dividends | (6,397) | (6,265) | (12,786) | (12,502) |
Unvested restricted stock award dividends | (73) | (62) | (148) | (126) |
Undistributed earnings to unvested restricted stock awards | (171) | (134) | (334) | (259) |
Undistributed earnings to common shareholders | 15,242 | 13,663 | 29,364 | 25,775 |
Basic | ||||
Distributed earnings to common shareholders | 6,397 | 6,265 | 12,786 | 12,502 |
Undistributed earnings to common shareholders | 15,242 | 13,663 | 29,364 | 25,775 |
Total common shareholders earnings, basic | 21,639 | 19,928 | 42,150 | 38,277 |
Diluted | ||||
Distributed earnings to common shareholders | 6,397 | 6,265 | 12,786 | 12,502 |
Undistributed earnings to common shareholders | 15,242 | 13,663 | 29,364 | 25,775 |
Total common shareholders earnings, basic | 21,639 | 19,928 | 42,150 | 38,277 |
Add back: | ||||
Undistributed earnings reallocated from unvested restricted stock awards | 1 | 0 | 1 | 1 |
Total common shareholders earnings, diluted | $ 21,640 | $ 19,928 | $ 42,151 | $ 38,278 |
Weighted average common shares outstanding, basic (in shares) | 22,305,590 | 22,591,127 | 22,290,486 | 22,557,728 |
Options (in shares) | 55,229 | 86,388 | 65,450 | 75,312 |
Weighted average common shares outstanding, diluted (in shares) | 22,360,819 | 22,677,515 | 22,355,936 | 22,633,040 |
Basic earnings per common share (in dollars per share) | $ 0.97 | $ 0.88 | $ 1.89 | $ 1.70 |
Diluted earnings per common share (in dollars per share) | $ 0.97 | $ 0.88 | $ 1.89 | $ 1.69 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring and Nonrecurring basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Assets | |||||
Investment securities available for sale | $ 760,540 | $ 760,540 | $ 906,603 | ||
Equity securities recorded at fair value | 8,738 | 8,738 | 9,529 | ||
Loans held for sale | 5,298 | 5,298 | 32,045 | ||
Losses recognized on assets measured on non-recurring basis | |||||
Loan servicing rights | (869) | $ (1,148) | (1,263) | $ (2,423) | |
U.S. Treasury securities | |||||
Assets | |||||
Investment securities available for sale | 63,996 | 63,996 | 64,917 | ||
U.S. government sponsored entities and U.S. agency securities | |||||
Assets | |||||
Investment securities available for sale | 30,303 | 30,303 | 33,817 | ||
Mortgage-backed securities - non-agency | |||||
Assets | |||||
Investment securities available for sale | 22,777 | 22,777 | 28,706 | ||
State and municipal securities | |||||
Assets | |||||
Investment securities available for sale | 106,688 | 106,688 | 143,099 | ||
Corporate securities | |||||
Assets | |||||
Investment securities available for sale | 112,938 | 112,938 | 195,794 | ||
Recurring member | |||||
Assets | |||||
Loans held for sale | 5,298 | 5,298 | 32,045 | ||
Derivative assets | 8,459 | 8,459 | 5,883 | ||
Total | 783,035 | 783,035 | 954,060 | ||
Liabilities | |||||
Derivative liabilities | 189 | 189 | 397 | ||
Total | 189 | 189 | 397 | ||
Recurring member | U.S. Treasury securities | |||||
Assets | |||||
Investment securities available for sale | 63,996 | 63,996 | 64,917 | ||
Recurring member | U.S. government sponsored entities and U.S. agency securities | |||||
Assets | |||||
Investment securities available for sale | 30,303 | 30,303 | 33,817 | ||
Recurring member | Mortgage-backed securities - agency | |||||
Assets | |||||
Investment securities available for sale | 423,838 | 423,838 | 440,270 | ||
Recurring member | Mortgage-backed securities - non-agency | |||||
Assets | |||||
Investment securities available for sale | 22,777 | 22,777 | 28,706 | ||
Recurring member | State and municipal securities | |||||
Assets | |||||
Investment securities available for sale | 106,688 | 106,688 | 143,099 | ||
Recurring member | Corporate securities | |||||
Assets | |||||
Investment securities available for sale | 112,938 | 112,938 | 195,794 | ||
Recurring member | Equity securities | |||||
Assets | |||||
Equity securities recorded at fair value | 8,738 | 8,738 | 9,529 | ||
Recurring member | Level 1 | |||||
Assets | |||||
Loans held for sale | 0 | 0 | 0 | ||
Derivative assets | 0 | 0 | 0 | ||
Total | 72,734 | 72,734 | 74,446 | ||
Liabilities | |||||
Derivative liabilities | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Recurring member | Level 1 | U.S. Treasury securities | |||||
Assets | |||||
Investment securities available for sale | 63,996 | 63,996 | 64,917 | ||
Recurring member | Level 1 | U.S. government sponsored entities and U.S. agency securities | |||||
Assets | |||||
Investment securities available for sale | 0 | 0 | 0 | ||
Recurring member | Level 1 | Mortgage-backed securities - agency | |||||
Assets | |||||
Investment securities available for sale | 0 | 0 | 0 | ||
Recurring member | Level 1 | Mortgage-backed securities - non-agency | |||||
Assets | |||||
Investment securities available for sale | 0 | 0 | 0 | ||
Recurring member | Level 1 | State and municipal securities | |||||
Assets | |||||
Investment securities available for sale | 0 | 0 | 0 | ||
Recurring member | Level 1 | Corporate securities | |||||
Assets | |||||
Investment securities available for sale | 0 | 0 | 0 | ||
Recurring member | Level 1 | Equity securities | |||||
Assets | |||||
Equity securities recorded at fair value | 8,738 | 8,738 | 9,529 | ||
Recurring member | Level 2 | |||||
Assets | |||||
Loans held for sale | 5,298 | 5,298 | 32,045 | ||
Derivative assets | 8,459 | 8,459 | 5,883 | ||
Total | 710,301 | 710,301 | 878,679 | ||
Liabilities | |||||
Derivative liabilities | 189 | 189 | 397 | ||
Total | 189 | 189 | 397 | ||
Recurring member | Level 2 | U.S. Treasury securities | |||||
Assets | |||||
Investment securities available for sale | 0 | 0 | 0 | ||
Recurring member | Level 2 | U.S. government sponsored entities and U.S. agency securities | |||||
Assets | |||||
Investment securities available for sale | 30,303 | 30,303 | 33,817 | ||
Recurring member | Level 2 | Mortgage-backed securities - agency | |||||
Assets | |||||
Investment securities available for sale | 423,838 | 423,838 | 440,270 | ||
Recurring member | Level 2 | Mortgage-backed securities - non-agency | |||||
Assets | |||||
Investment securities available for sale | 22,777 | 22,777 | 28,706 | ||
Recurring member | Level 2 | State and municipal securities | |||||
Assets | |||||
Investment securities available for sale | 106,688 | 106,688 | 143,099 | ||
Recurring member | Level 2 | Corporate securities | |||||
Assets | |||||
Investment securities available for sale | 112,938 | 112,938 | 194,859 | ||
Recurring member | Level 2 | Equity securities | |||||
Assets | |||||
Equity securities recorded at fair value | 0 | 0 | 0 | ||
Recurring member | Level 3 | |||||
Assets | |||||
Loans held for sale | 0 | 0 | 0 | ||
Derivative assets | 0 | 0 | 0 | ||
Total | 0 | 0 | 935 | ||
Liabilities | |||||
Derivative liabilities | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Recurring member | Level 3 | U.S. Treasury securities | |||||
Assets | |||||
Investment securities available for sale | 0 | 0 | 0 | ||
Recurring member | Level 3 | U.S. government sponsored entities and U.S. agency securities | |||||
Assets | |||||
Investment securities available for sale | 0 | 0 | 0 | ||
Recurring member | Level 3 | Mortgage-backed securities - agency | |||||
Assets | |||||
Investment securities available for sale | 0 | 0 | 0 | ||
Recurring member | Level 3 | Mortgage-backed securities - non-agency | |||||
Assets | |||||
Investment securities available for sale | 0 | 0 | 0 | ||
Recurring member | Level 3 | State and municipal securities | |||||
Assets | |||||
Investment securities available for sale | 0 | 0 | 0 | ||
Recurring member | Level 3 | Corporate securities | |||||
Assets | |||||
Investment securities available for sale | 0 | 0 | 935 | ||
Recurring member | Level 3 | Equity securities | |||||
Assets | |||||
Equity securities recorded at fair value | 0 | 0 | 0 | ||
Non recurring member | |||||
Assets measured at fair value on a non-recurring basis: | |||||
Loan servicing rights | 25,879 | 25,879 | 28,865 | ||
Nonperforming loans | 50,958 | 50,958 | 36,542 | ||
Other real estate owned | 11,131 | 11,131 | 12,059 | ||
Assets held for sale | 1,231 | 1,231 | 2,284 | ||
Losses recognized on assets measured on non-recurring basis | |||||
Loan servicing rights | 869 | 1,148 | 1,263 | 2,423 | |
Mortgage servicing rights held for sale | 0 | 143 | 0 | 143 | |
Nonperforming loans | 10,779 | 4,295 | 11,366 | 6,272 | |
Other real estate owned | 67 | 314 | 404 | 417 | |
Assets held for sale | 0 | 0 | 0 | 0 | |
Total loss on assets measured on a nonrecurring basis | 11,715 | $ 5,900 | 13,033 | $ 9,255 | |
Non recurring member | Level 1 | |||||
Assets measured at fair value on a non-recurring basis: | |||||
Loan servicing rights | 0 | 0 | 0 | ||
Nonperforming loans | 0 | 0 | 24,358 | ||
Other real estate owned | 0 | 0 | 0 | ||
Assets held for sale | 0 | 0 | 0 | ||
Non recurring member | Level 2 | |||||
Assets measured at fair value on a non-recurring basis: | |||||
Loan servicing rights | 0 | 0 | 0 | ||
Nonperforming loans | 44,599 | 44,599 | 6,129 | ||
Other real estate owned | 11,131 | 11,131 | 12,059 | ||
Assets held for sale | 1,231 | 1,231 | 2,284 | ||
Non recurring member | Level 3 | |||||
Assets measured at fair value on a non-recurring basis: | |||||
Loan servicing rights | 25,879 | 25,879 | 28,865 | ||
Nonperforming loans | 6,359 | 6,359 | 6,055 | ||
Other real estate owned | 0 | 0 | 0 | ||
Assets held for sale | $ 0 | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - Unobservable inputs (Level 3) (Details) - Corporate securities - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of period | $ 935 | $ 959 | $ 935 | $ 959 |
Transferred to level 2 | (935) | 0 | (935) | 0 |
Total realized in earnings | 6 | 4 | 11 | 6 |
Total unrealized in other comprehensive income | 0 | 49 | 0 | 49 |
Net settlements (principal and interest) | (6) | (4) | (11) | (6) |
Balance, end of period | $ 0 | $ 1,008 | $ 0 | $ 1,008 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS - Quantitative Information (Details) $ in Thousands | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | $ 760,540 | $ 906,603 |
Non recurring member | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loan servicing rights | 25,879 | $ 28,865 |
Level 3 | Net market price | Corporate securities | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale, measurement input | 0 | |
Level 3 | Net market price | Corporate securities | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale, measurement input | 0.070 | |
Level 3 | Net market price | Corporate securities | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale, measurement input | 0.045 | |
Level 3 | Recurring member | Net market price | Corporate securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | $ 935 | |
Level 3 | Non recurring member | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loan servicing rights | 25,879 | 28,865 |
Level 3 | Non recurring member | Discounted cash flow | Commercial MSR | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loan servicing rights | 26,865 | 28,368 |
Level 3 | Non recurring member | Discounted cash flow | SBA servicing rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loan servicing rights | 660 | 898 |
Level 3 | Non recurring member | Discounted cash flow | Residential servicing rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loan servicing rights | $ 616 | $ 705 |
Level 3 | Non recurring member | Discounted cash flow | Prepayment speed | Commercial MSR | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 0.0800 | 0.0800 |
Level 3 | Non recurring member | Discounted cash flow | Prepayment speed | Commercial MSR | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 0.1800 | 0.1800 |
Level 3 | Non recurring member | Discounted cash flow | Prepayment speed | Commercial MSR | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 0.0821 | 0.0824 |
Level 3 | Non recurring member | Discounted cash flow | Prepayment speed | SBA servicing rights | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 0.1406 | 0.1227 |
Level 3 | Non recurring member | Discounted cash flow | Prepayment speed | SBA servicing rights | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 0.1658 | 0.1414 |
Level 3 | Non recurring member | Discounted cash flow | Prepayment speed | SBA servicing rights | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 0.1600 | 0.1388 |
Level 3 | Non recurring member | Discounted cash flow | Prepayment speed | Residential servicing rights | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 0.0786 | 0.1194 |
Level 3 | Non recurring member | Discounted cash flow | Prepayment speed | Residential servicing rights | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 0.2628 | 0.2748 |
Level 3 | Non recurring member | Discounted cash flow | Prepayment speed | Residential servicing rights | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 0.0858 | 0.1494 |
Level 3 | Non recurring member | Discounted cash flow | Discount rate | Commercial MSR | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 0.1000 | 0.1000 |
Level 3 | Non recurring member | Discounted cash flow | Discount rate | Commercial MSR | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 0.2700 | 0.2700 |
Level 3 | Non recurring member | Discounted cash flow | Discount rate | Commercial MSR | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 0.1169 | 0.1187 |
Level 3 | Non recurring member | Discounted cash flow | Discount rate | SBA servicing rights | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 0.1000 | 0.1000 |
Level 3 | Non recurring member | Discounted cash flow | Discount rate | SBA servicing rights | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 0.1200 | 0.1200 |
Level 3 | Non recurring member | Discounted cash flow | Discount rate | SBA servicing rights | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 0.1100 | 0.1100 |
Level 3 | Non recurring member | Discounted cash flow | Discount rate | Residential servicing rights | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 0.0900 | 0.0900 |
Level 3 | Non recurring member | Discounted cash flow | Discount rate | Residential servicing rights | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 0.1150 | 0.1150 |
Level 3 | Non recurring member | Discounted cash flow | Discount rate | Residential servicing rights | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input for servicing asset | 0.1013 | 0.1025 |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair value option and gains and losses from fair value changes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Aggregate fair value | $ 5,298 | $ 5,298 | $ 32,045 | ||
Difference | 212 | 212 | 584 | ||
Contractual principal | 5,086 | 5,086 | 31,461 | ||
Gains and losses from fair value changes | |||||
Gains and losses from fair value changes of loan held for sales | 86 | $ 297 | (277) | $ (130) | |
Commercial Loan Portfolio | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Aggregate fair value | 0 | 0 | 19,230 | ||
Difference | 0 | 0 | 0 | ||
Contractual principal | 0 | 0 | 19,230 | ||
Gains and losses from fair value changes | |||||
Gains and losses from fair value changes of loan held for sales | (18) | (23) | 0 | (67) | |
Residential Portfolio Segment | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Aggregate fair value | 5,298 | 5,298 | 12,815 | ||
Difference | 212 | 212 | 584 | ||
Contractual principal | 5,086 | 5,086 | $ 12,231 | ||
Gains and losses from fair value changes | |||||
Gains and losses from fair value changes of loan held for sales | $ 104 | $ 320 | $ (277) | $ (63) |
FAIR VALUE OF FINANCIAL INSTR_7
FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying values and fair value (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Accrued interest receivable | $ 16,552 | $ 19,470 |
Liabilities | ||
Trust preferred debentures | 49,674 | 49,374 |
Level 1 | ||
Assets | ||
Cash and due from banks | 264,173 | 673,297 |
Federal funds sold | 5,944 | 7,074 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Liabilities | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
FHLB and other borrowings | 0 | 0 |
Subordinated debt | 0 | 0 |
Trust preferred debentures | 0 | 0 |
Level 2 | ||
Assets | ||
Cash and due from banks | 0 | 0 |
Federal funds sold | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 16,552 | 19,470 |
Liabilities | ||
Deposits | 6,171,119 | 6,109,077 |
Short-term borrowings | 67,689 | 76,803 |
FHLB and other borrowings | 286,309 | 317,464 |
Subordinated debt | 139,063 | 148,386 |
Trust preferred debentures | 55,348 | 57,827 |
Level 3 | ||
Assets | ||
Cash and due from banks | 0 | 0 |
Federal funds sold | 0 | 0 |
Loans, net | 5,648,295 | 5,221,886 |
Accrued interest receivable | 0 | 0 |
Liabilities | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
FHLB and other borrowings | 0 | 0 |
Subordinated debt | 0 | 0 |
Trust preferred debentures | 0 | 0 |
Carrying amount | ||
Assets | ||
Cash and due from banks | 264,173 | 673,297 |
Federal funds sold | 5,944 | 7,074 |
Loans, net | 5,740,646 | 5,173,739 |
Accrued interest receivable | 16,552 | 19,470 |
Liabilities | ||
Deposits | 6,184,438 | 6,110,648 |
Short-term borrowings | 67,689 | 76,803 |
FHLB and other borrowings | 285,000 | 310,171 |
Subordinated debt | 139,277 | 139,091 |
Trust preferred debentures | 49,674 | 49,374 |
Fair value | ||
Assets | ||
Cash and due from banks | 264,173 | 673,297 |
Federal funds sold | 5,944 | 7,074 |
Loans, net | 5,648,295 | 5,221,886 |
Accrued interest receivable | 16,552 | 19,470 |
Liabilities | ||
Deposits | 6,171,119 | 6,109,077 |
Short-term borrowings | 67,689 | 76,803 |
FHLB and other borrowings | 286,309 | 317,464 |
Subordinated debt | 139,063 | 148,386 |
Trust preferred debentures | $ 55,348 | $ 57,827 |
COMMITMENTS, CONTINGENCIES AN_3
COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Anticipated material loss | $ 0 | $ 0 | |||
Losses as a result of make whole requests and loan repurchases | 0 | $ 0 | 0 | $ 0 | |
Liability for unresolved repurchase demands | 200,000 | 200,000 | $ 200,000 | ||
Commitments to extend credit | |||||
Loan commitments | 1,206,523,000 | 1,206,523,000 | 994,709,000 | ||
Financial guarantees – standby letters of credit | |||||
Loan commitments | $ 26,553,000 | $ 26,553,000 | $ 14,325,000 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||
Net interest income (expense) | $ 61,334 | $ 50,110 | $ 118,161 | $ 101,978 | |
Provision for credit losses | 5,441 | (455) | 9,608 | 3,110 | |
Noninterest income | 14,613 | 17,417 | 30,226 | 32,233 | |
Noninterest expense | 41,339 | 48,941 | 82,223 | 88,020 | |
Income before income taxes | 29,167 | 19,041 | 56,556 | 43,081 | |
Income taxes (benefit) | 7,284 | (1,083) | 13,924 | 4,419 | |
Net income | 21,883 | 20,124 | 42,632 | 38,662 | |
Total assets | 7,435,812 | 6,630,010 | 7,435,812 | 6,630,010 | $ 7,443,805 |
Banking | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income (expense) | 63,963 | 52,908 | 123,316 | 107,626 | |
Provision for credit losses | 5,441 | (455) | 9,608 | 3,110 | |
Noninterest income | 8,495 | 10,868 | 16,901 | 19,732 | |
Noninterest expense | 37,362 | 45,084 | 73,609 | 80,600 | |
Income before income taxes | 29,655 | 19,147 | 57,000 | 43,648 | |
Income taxes (benefit) | 7,545 | (913) | 14,260 | 4,876 | |
Net income | 22,110 | 20,060 | 42,740 | 38,772 | |
Total assets | 7,422,518 | 6,642,895 | 7,422,518 | 6,642,895 | |
Wealth management | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income (expense) | 0 | 0 | 0 | 0 | |
Provision for credit losses | 0 | 0 | 0 | 0 | |
Noninterest income | 6,143 | 6,529 | 13,282 | 12,460 | |
Noninterest expense | 4,091 | 4,164 | 8,766 | 8,165 | |
Income before income taxes | 2,052 | 2,365 | 4,516 | 4,295 | |
Income taxes (benefit) | 573 | 663 | 1,263 | 1,203 | |
Net income | 1,479 | 1,702 | 3,253 | 3,092 | |
Total assets | 29,042 | 30,913 | 29,042 | 30,913 | |
Other | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income (expense) | (2,629) | (2,798) | (5,155) | (5,648) | |
Provision for credit losses | 0 | 0 | 0 | 0 | |
Noninterest income | (25) | 20 | 43 | 41 | |
Noninterest expense | (114) | (307) | (152) | (745) | |
Income before income taxes | (2,540) | (2,471) | (4,960) | (4,862) | |
Income taxes (benefit) | (834) | (833) | (1,599) | (1,660) | |
Net income | (1,706) | (1,638) | (3,361) | (3,202) | |
Total assets | $ (15,748) | $ (43,798) | $ (15,748) | $ (43,798) |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Noninterest income - out-of-scope of Topic 606 | $ 1,506 | $ 3,361 | $ 3,508 | $ 5,917 |
Total noninterest income | 14,613 | 17,417 | 30,226 | 32,233 |
Trust management/administration fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,139 | 4,971 | 11,121 | 9,430 |
Investment advisory fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 423 | 0 | 876 |
Investment brokerage fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 543 | 485 | 1,141 | 886 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 461 | 650 | 1,020 | 1,268 |
Nonsufficient fund fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,524 | 1,202 | 2,856 | 2,343 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 780 | 714 | 1,516 | 1,399 |
Interchange revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,590 | 3,797 | 6,870 | 7,172 |
Merchant services revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 399 | 396 | 755 | 733 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 671 | $ 1,418 | $ 1,439 | $ 2,209 |