Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 02, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38280 | |
Entity Registrant Name | Stellar Bancorp, Inc. | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 20-8339782 | |
Entity Address, Address Line One | 9 Greenway Plaza | |
Entity Address, Address Line Two | Suite 110 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77046 | |
City Area Code | 713 | |
Local Phone Number | 210-7600 | |
Title of 12(b) Security | Common Stock, par value, $0.01 per share | |
Trading Symbol | STEL | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 53,262,213 | |
Entity Central Index Key | 0001473844 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 94,970 | $ 67,063 |
Interest-bearing deposits at other financial institutions | 207,302 | 304,642 |
Total cash and cash equivalents | 302,272 | 371,705 |
Available for sale securities, at fair value | 1,414,952 | 1,807,586 |
Loans held for investment | 8,004,528 | 7,754,751 |
Less: allowance for credit losses on loans | (93,575) | (93,180) |
Loans, net | 7,910,953 | 7,661,571 |
Accrued interest receivable | 43,536 | 44,743 |
Premises and equipment, net | 119,332 | 126,803 |
Federal Home Loan Bank stock | 29,022 | 15,058 |
Bank-owned life insurance | 104,699 | 103,094 |
Goodwill | 497,318 | 497,260 |
Core deposit intangibles, net | 122,944 | 143,525 |
Other assets | 120,432 | 129,092 |
TOTAL ASSETS | 10,665,460 | 10,900,437 |
Deposits: | ||
Noninterest-bearing | 3,656,288 | 4,230,169 |
Interest-bearing | ||
Demand | 1,397,492 | 1,591,828 |
Money market and savings | 2,128,950 | 2,575,923 |
Certificates and other time | 1,503,891 | 869,712 |
Total interest-bearing deposits | 5,030,333 | 5,037,463 |
Total deposits | 8,686,621 | 9,267,632 |
Accrued interest payable | 7,612 | 2,098 |
Borrowed funds | 323,981 | 63,925 |
Subordinated debt | 109,665 | 109,367 |
Other liabilities | 76,735 | 74,239 |
Total liabilities | 9,204,614 | 9,517,261 |
COMMITMENTS AND CONTINGENCIES (See Note 14) | ||
SHAREHOLDERS’ EQUITY: | ||
Preferred stock, $0.01 par value; 10,000,000 shares authorized; no shares issued or outstanding at September 30, 2023 and December 31, 2022 | 0 | 0 |
Common stock, $0.01 par value; 140,000,000 shares authorized; 53,321,541 shares issued and outstanding at September 30, 2023 and 52,954,985 shares issued and outstanding at December 31, 2022 | 533 | 530 |
Capital surplus | 1,231,686 | 1,222,761 |
Retained earnings | 385,600 | 303,146 |
Accumulated other comprehensive loss | (156,973) | (143,261) |
Total shareholders’ equity | 1,460,846 | 1,383,176 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 10,665,460 | $ 10,900,437 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 140,000,000 | 140,000,000 |
Common stock, shares issued (in shares) | 53,321,541 | 52,954,985 |
Common stock, shares outstanding (in shares) | 53,321,541 | 52,954,985 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
INTEREST INCOME: | ||||
Loans, including fees | $ 138,948 | $ 58,025 | $ 398,608 | $ 164,230 |
Securities: | ||||
Taxable | 9,493 | 6,655 | 28,872 | 17,294 |
Tax-exempt | 437 | 2,594 | 2,135 | 7,676 |
Deposits in other financial institutions | 2,391 | 608 | 9,027 | 1,825 |
Total interest income | 151,269 | 67,882 | 438,642 | 191,025 |
INTEREST EXPENSE: | ||||
Demand, money market and savings deposits | 23,557 | 3,527 | 62,302 | 6,733 |
Certificates and other time deposits | 13,282 | 1,664 | 26,211 | 5,742 |
Borrowed funds | 5,801 | 499 | 13,653 | 799 |
Subordinated debt | 1,908 | 1,502 | 5,647 | 4,407 |
Total interest expense | 44,548 | 7,192 | 107,813 | 17,681 |
NET INTEREST INCOME | 106,721 | 60,690 | 330,829 | 173,344 |
Provision for credit losses | 2,315 | 1,962 | 7,896 | 5,919 |
Net interest income after provision for credit losses | 104,406 | 58,728 | 322,933 | 167,425 |
NONINTEREST INCOME: | ||||
Gain on sale of assets | 0 | 42 | 192 | 25 |
Bank-owned life insurance income | 551 | 135 | 1,605 | 610 |
Debit card and ATM income | 935 | 869 | 4,454 | 2,568 |
Other | 1,589 | 1,277 | 6,881 | 4,513 |
Total noninterest income | 4,695 | 2,995 | 17,676 | 9,717 |
NONINTEREST EXPENSE: | ||||
Salaries and employee benefits | 39,495 | 22,013 | 116,570 | 66,605 |
Net occupancy and equipment | 4,455 | 2,129 | 12,360 | 6,554 |
Depreciation | 1,952 | 1,003 | 5,629 | 3,048 |
Data processing and software amortization | 4,798 | 2,541 | 14,526 | 7,561 |
Professional fees | 997 | 485 | 4,088 | 1,285 |
Regulatory assessments and FDIC insurance | 1,814 | 1,134 | 5,863 | 3,651 |
Amortization of intangibles | 6,876 | 750 | 20,636 | 2,252 |
Communications | 663 | 359 | 2,053 | 1,063 |
Advertising | 877 | 385 | 2,623 | 1,330 |
Acquisition and merger-related expenses | 3,421 | 10,551 | 12,483 | 12,669 |
Other | 5,400 | 2,681 | 15,722 | 10,434 |
Total noninterest expense | 70,748 | 44,031 | 212,553 | 116,452 |
INCOME BEFORE INCOME TAXES | 38,353 | 17,692 | 128,056 | 60,690 |
Provision for income taxes | 7,445 | 3,406 | 24,825 | 11,310 |
NET INCOME | $ 30,908 | $ 14,286 | $ 103,231 | $ 49,380 |
EARNINGS PER SHARE: | ||||
Basic (in dollars per share) | $ 0.58 | $ 0.51 | $ 1.94 | $ 1.72 |
Diluted (in dollars per share) | 0.58 | 0.50 | 1.94 | 1.71 |
DIVIDENDS PER SHARE (in dollars per share) | $ 0.13 | $ 0.10 | $ 0.39 | $ 0.30 |
Nonsufficient funds and overdraft charges | ||||
NONINTEREST INCOME: | ||||
Revenue from contract with customer | $ 291 | $ 145 | $ 1,115 | $ 387 |
Service charges on deposit accounts | ||||
NONINTEREST INCOME: | ||||
Revenue from contract with customer | $ 1,329 | $ 527 | $ 3,429 | $ 1,614 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 30,908 | $ 14,286 | $ 103,231 | $ 49,380 |
Unrealized loss on securities: | ||||
Change in unrealized holding loss on available for sale securities during the period | (31,638) | (60,618) | (17,390) | (229,887) |
Reclassification of gain realized on securities | 0 | (42) | (234) | (25) |
Total other comprehensive loss | (31,638) | (60,660) | (17,624) | (229,912) |
Deferred tax benefit related to other comprehensive loss | 6,669 | 12,739 | 3,912 | 48,282 |
Other comprehensive loss, net of tax | (24,969) | (47,921) | (13,712) | (181,630) |
Comprehensive income (loss) | $ 5,939 | $ (33,635) | $ 89,519 | $ (132,250) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance (in shares) at Dec. 31, 2021 | 28,845,903 | ||||
Balance at Dec. 31, 2021 | $ 816,468 | $ 289 | $ 530,845 | $ 267,092 | $ 18,242 |
Net income | 49,380 | 49,380 | |||
Other comprehensive loss | (181,630) | (181,630) | |||
Cash dividends declared | (8,497) | (8,497) | |||
Common stock issued in connection with the exercise of stock options and restricted stock awards (in shares) | 122,619 | ||||
Common stock issued in connection with the exercise of stock options and restricted stock awards | 1,328 | $ 1 | 1,327 | ||
Repurchase of common stock (in shares) | (831,911) | ||||
Repurchase of common stock | (23,606) | $ (9) | (23,597) | ||
Stock-based compensation expense | 2,859 | 2,859 | |||
Balance (in shares) at Sep. 30, 2022 | 28,136,611 | ||||
Balance at Sep. 30, 2022 | 656,302 | $ 281 | 511,434 | 307,975 | (163,388) |
Balance (in shares) at Jun. 30, 2022 | 28,586,426 | ||||
Balance at Jun. 30, 2022 | 705,329 | $ 286 | 524,033 | 296,477 | (115,467) |
Net income | 14,286 | 14,286 | |||
Other comprehensive loss | (47,921) | (47,921) | |||
Cash dividends declared | (2,788) | (2,788) | |||
Common stock issued in connection with the exercise of stock options and restricted stock awards (in shares) | 31,823 | ||||
Common stock issued in connection with the exercise of stock options and restricted stock awards | 343 | 343 | |||
Repurchase of common stock (in shares) | (481,638) | ||||
Repurchase of common stock | (13,916) | $ (5) | (13,911) | ||
Stock-based compensation expense | 969 | 969 | |||
Balance (in shares) at Sep. 30, 2022 | 28,136,611 | ||||
Balance at Sep. 30, 2022 | 656,302 | $ 281 | 511,434 | 307,975 | (163,388) |
Balance (in shares) at Dec. 31, 2022 | 52,954,985 | ||||
Balance at Dec. 31, 2022 | 1,383,176 | $ 530 | 1,222,761 | 303,146 | (143,261) |
Net income | 103,231 | 103,231 | |||
Other comprehensive loss | (13,712) | (13,712) | |||
Cash dividends declared | (20,777) | (20,777) | |||
Common stock issued in connection with the exercise of stock options and restricted stock awards (in shares) | 366,556 | ||||
Common stock issued in connection with the exercise of stock options and restricted stock awards | 693 | $ 3 | 690 | ||
Stock-based compensation expense | 8,235 | 8,235 | |||
Balance (in shares) at Sep. 30, 2023 | 53,321,541 | ||||
Balance at Sep. 30, 2023 | 1,460,846 | $ 533 | 1,231,686 | 385,600 | (156,973) |
Balance (in shares) at Jun. 30, 2023 | 53,302,734 | ||||
Balance at Jun. 30, 2023 | 1,458,680 | $ 533 | 1,228,532 | 361,619 | (132,004) |
Net income | 30,908 | 30,908 | |||
Other comprehensive loss | (24,969) | (24,969) | |||
Cash dividends declared | (6,927) | (6,927) | |||
Common stock issued in connection with the exercise of stock options and restricted stock awards (in shares) | 18,807 | ||||
Common stock issued in connection with the exercise of stock options and restricted stock awards | 342 | 342 | |||
Stock-based compensation expense | 2,812 | 2,812 | |||
Balance (in shares) at Sep. 30, 2023 | 53,321,541 | ||||
Balance at Sep. 30, 2023 | $ 1,460,846 | $ 533 | $ 1,231,686 | $ 385,600 | $ (156,973) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Per share amount of cash dividends declared (in dollars per share) | $ 0.13 | $ 0.10 | $ 0.39 | $ 0.30 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 103,231 | $ 49,380 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and core deposit intangibles amortization | 26,265 | 5,300 |
Provision for credit losses | 7,896 | 5,919 |
Deferred income tax benefit | 11,617 | (954) |
Net amortization of premium on investments | 5,098 | 7,903 |
Excess tax benefit from stock-based compensation | (70) | (312) |
Bank-owned life insurance income | (1,605) | (610) |
Net accretion of discount on loans | (35,065) | (165) |
Net amortization of discount on subordinated debt | 88 | 87 |
Net accretion of discount on certificates of deposit | (21) | (45) |
Net gain on sale of assets | (192) | (25) |
Federal Home Loan Bank stock dividends | (799) | (64) |
Stock-based compensation expense | 8,235 | 2,859 |
Net change in operating leases | 3,055 | 2,178 |
Increase in accrued interest receivable and other assets | (165) | (1,415) |
Increase in accrued interest payable and other liabilities | 9,319 | 4,082 |
Net cash provided by operating activities | 136,887 | 74,118 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from maturities and principal paydowns of available for sale securities | 685,707 | 2,320,157 |
Proceeds from sales and calls of available for sale securities | 320,691 | 12,056 |
Purchase of available for sale securities | (633,287) | (2,414,630) |
Net change in total loans | (223,256) | (371,904) |
Purchase of bank premises and equipment | (5,621) | (668) |
Proceeds from sale of bank premises, equipment and other real estate | 3,685 | 0 |
Net purchase of Federal Home Loan Bank stock | (13,165) | (7,421) |
Net cash provided by (used in) investing activities | 134,754 | (462,410) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net (decrease) increase in noninterest-bearing deposits | (573,881) | 222,754 |
Net decrease in interest-bearing deposits | (7,109) | (609,629) |
Net change in short-term other borrowed funds | 260,000 | 167,000 |
Dividends paid to common shareholders | (20,777) | (8,497) |
Proceeds from the issuance of common stock and stock option exercises | 693 | 1,328 |
Repurchase of common stock | 0 | (23,606) |
Net cash used in financing activities | (341,074) | (250,650) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (69,433) | (638,942) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 371,705 | 757,509 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 302,272 | 118,567 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Income taxes paid | 7,500 | 10,550 |
Interest paid | 102,299 | 16,761 |
Cash paid for operating lease liabilities | 3,372 | 2,559 |
SUPPLEMENTAL NONCASH DISCLOSURE: | ||
Branch assets transferred to assets held for sale | $ 3,819 | $ 2,137 |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES | NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES Nature of Operations -Stellar Bancorp, Inc. (“Stellar”) through its wholly-owned subsidiary, Stellar Bank, (the “Bank”), and together with Stellar, collectively referred to herein as “we,” “us,” “our” and the “Company”), provides a diversified range of commercial banking services primarily to small- to medium-sized businesses. Stellar derives substantially all of its revenues and income from the operation of the Bank. We refer to the Houston-The Woodlands-Sugar Land metropolitan statistical area (“MSA”), as the Houston region (“Houston region”) and the Beaumont-Port Arthur MSA, as the Beaumont region (“Beaumont region”). The Company is focused on delivering a wide variety of relationship-driven commercial banking products and community-oriented services tailored to meet the needs of small-to medium-sized businesses, professionals and individuals through its 55 banking centers with 38 banking centers in the Houston region, 16 banking centers in the Beaumont region and one banking center in Dallas, Texas, which we collectively refer to as our markets. Basis of Presentation -The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with guidance provided by the Securities and Exchange Commission (“SEC”). Accordingly, the condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows of the Company on a consolidated basis, and all such adjustments are of a normal recurring nature. Transactions between Stellar and the Bank have been eliminated. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. Operating results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. Merger of Equals -The merger of equals (the “Merger”) between Allegiance Bancshares, Inc. (“Allegiance”) and CBTX, Inc. (“CBTX”), was effective on October 1, 2022, with CBTX as the surviving corporation that was renamed Stellar Bancorp, Inc. At the effective time of the Merger, each outstanding share of Allegiance common stock, par value of $1.00 per share, was converted into the right to receive 1.4184 shares of common stock of the Company. Immediately following the Merger, CommunityBank of Texas, N.A. (“CommunityBank”), a national banking association and a wholly-owned subsidiary of CBTX, merged with and into Allegiance Bank, a wholly owned subsidiary of Allegiance, with Allegiance Bank as the surviving bank. Allegiance Bank changed its name to Stellar Bank on February 18, 2023 in connection with the operational conversion. The Merger constituted a business combination and was accounted for as a reverse merger using the acquisition method of accounting. As a result, Allegiance was the accounting acquirer and CBTX was the legal acquirer and the accounting acquiree. Accordingly, the historical financial statements of Allegiance became the historical financial statements of the combined company for all periods prior to October 1, 2022 (the “Merger Date”). In addition, the assets and liabilities of CBTX have been recorded at their estimated fair values and added to those of Allegiance as of October 1, 2022. The determination of fair value required management to make estimates about discount rates, expected future cash flows, market conditions and other future events that are subjective. The Company’s results of operations for the three and nine months ended September 30, 2022 reflect Allegiance's historical results and do not include the historical results of CBTX. The Merger had a significant impact on all aspects of the Company’s financial statements, and financial results for periods after the Merger are not comparable to financial results for periods prior to the Merger. The number of shares issued and outstanding, earnings per share, capital surplus, dividends paid and all references to share quantities of the Company have been retrospectively adjusted to reflect the equivalent number of shares issued to holders of Allegiance common stock in the Merger. See Note 2 – Acquisitions in the accompanying notes to the consolidated financial statements for the impact of the Merger. Significant Accounting and Reporting Policies The Company’s significant accounting and reporting policies can be found in Note 1 of the Company’s annual financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. Adoption of New Accounting Standards |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS Merger of Equals As described in Note 1 – Nature of Operations and Summary of Significant Accounting and Reporting Policies, the Merger was completed on October 1, 2022. Allegiance merged with and into CBTX with the surviving corporation renamed Stellar Bancorp, Inc. At the effective date of the Merger, each outstanding share of Allegiance common stock was converted into the right to receive 1.4184 shares of common stock of the Company. The Company issued 28.1 million shares of its common stock to Allegiance shareholders in connection with the Merger, which represented 54.0% of the voting interests in the Company upon completion of the Merger. In accordance with FASB ASC 805-40-30-2, the purchase price in a reverse acquisition is determined based on the number of equity interests the legal acquiree would have had to issue to give the owners of the legal acquirer the same percentage equity interest in the combined entity that results from the reverse acquisition. The table below summarizes the ownership of the combined company following the Merger, for each shareholder group, using shares of CBTX and Allegiance common stock outstanding at September 30, 2022 and Allegiance’s closing price on September 30, 2022 (shares in thousands). Stellar Bancorp, Inc. Ownership Number of CBTX Outstanding Shares Percentage Ownership CBTX shareholders 24,015 46.0 % Allegiance shareholders 28,137 54.0 % Total 52,152 100.0 % The Merger was accounted for as a reverse merger using the acquisition method of accounting, which means that for accounting and financial reporting purposes, Allegiance was deemed to have acquired CBTX in the Merger, even though CBTX was the legal acquirer. Accordingly, Allegiance's historical financial statements are the historical financial statements of the combined company for all periods prior to October 1, 2022. Total acquisition and merger-related expenses recognized for the three months ended September 30, 2023 and 2022 were $3.4 million and $10.6 million, respectively, and $12.5 million and $12.7 million for the nine months ended September 30, 2023 and 2022, respectively. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Changes in the carrying amount of the Company’s goodwill and core deposit intangible assets were as follows: Goodwill Core Deposit Servicing Assets (In thousands) Balance as of December 31, 2021 $ 223,642 $ 14,658 $ — Acquired intangibles 273,618 138,150 329 Amortization — (9,283) (20) Balance as of December 31, 2022 497,260 143,525 309 Amortization — (20,581) (55) Measurement period adjustment 58 — — Decrease due to payoff of serviced loans — — (27) Balance as of September 30, 2023 $ 497,318 $ 122,944 $ 227 Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired recorded on the acquisition date of an entity. During the measurement period, the Company may record subsequent adjustments to goodwill for provisional amounts recorded at the acquisition date. During the third quarter of 2023, the Company completed the final tax returns related to CBTX's business and operations through September 30, 2022. After completion of these tax returns, the Company increased income tax balances and goodwill in the amount of $58 thousand which finalized all purchase accounting adjustments for the Merger. Goodwill is subject to impairment testing, which must be conducted at least annually or upon the occurrence of a triggering event. Various factors, such as the Company’s results of operations, the trading price of the Company’s common stock relative to the book value per share, macroeconomic conditions and conditions in the banking sector, inform whether a triggering event for an interim goodwill impairment test has occurred. Goodwill is recorded and evaluated for impairment at its reporting unit, the Company. The Company's policy is to test goodwill for impairment annually as of October 1st, or on an interim basis if an event triggering an impairment assessment is determined to have occurred. Testing of goodwill impairment comprises a two-step process. First, the Company performs a qualitative assessment to evaluate relevant events or circumstances to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it is more likely than not that an impairment has occurred, it proceeds to the quantitative impairment test, whereby it calculates the fair value of the reporting unit and compares it with its carrying amount, including goodwill. In its performance of impairment testing, the Company has the unconditional option to proceed directly to the quantitative impairment test, bypassing the qualitative assessment. If the carrying amount of the reporting unit exceeds the fair value, the amount by which the carrying amount exceeds fair value, up to the carrying value of goodwill, is recorded through earnings as an impairment charge. If the results of the qualitative assessment indicate that it is not more likely than not that an impairment has occurred, or if the quantitative impairment test results in a fair value of the reporting unit that is greater than the carrying amount, then no impairment charge is recorded. During the nine months ended September 30, 2023, economic uncertainty and market volatility resulting from the rising interest rate environment and the recent banking crisis resulted in a decrease in the Company's stock price and market capitalization. Management believed such decrease was a triggering event requiring an interim goodwill impairment quantitative analysis for the third quarter 2023. As a result, the Company performed a qualitative assessment and quantitative impairment test on its only reporting unit as of September 30, 2023 and determined that there was no impairment as the fair value exceeded the carrying amount of the Company. If the Company had deemed intangible assets to be impaired, a non-cash charge for the amount of such impairment would be recorded through earnings and would have no impact on tangible capital or our regulatory capital. The estimated aggregate future amortization expense for core deposit intangible assets remaining as of September 30, 2023 is as follows (in thousands): Remaining 2023 $ 6,232 2024 24,166 2025 21,528 2026 18,896 Thereafter 52,122 Total $ 122,944 |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The amortized cost and fair value of investment securities were as follows: September 30, 2023 Amortized Gross Gross Fair (In thousands) Available for Sale U.S. government and agency securities $ 409,152 $ 129 $ (15,873) $ 393,408 Municipal securities 258,901 545 (40,330) 219,116 Agency mortgage-backed pass-through securities 378,573 22 (50,401) 328,194 Agency collateralized mortgage obligations 444,234 — (78,356) 365,878 Corporate bonds and other 122,812 29 (14,485) 108,356 Total $ 1,613,672 $ 725 $ (199,445) $ 1,414,952 December 31, 2022 Amortized Gross Gross Fair (In thousands) Available for Sale U.S. government and agency securities $ 433,417 $ 90 $ (19,227) $ 414,280 Municipal securities 580,076 4,319 (43,826) 540,569 Agency mortgage-backed pass-through securities 370,471 362 (42,032) 328,801 Agency collateralized mortgage obligations 461,760 — (67,630) 394,130 Corporate bonds and other 143,192 2 (13,388) 129,806 Total $ 1,988,916 $ 4,773 $ (186,103) $ 1,807,586 As of September 30, 2023, no allowance for credit losses has been recognized on available for sale securities in an unrealized loss position as management does not believe any of the securities are impaired due to reasons of credit quality. This belief is based upon our analysis of the underlying risk characteristics, including credit ratings, and other qualitative factors related to our available for sale securities and in consideration of our historical credit loss experience and internal forecasts. The issuers of these securities continue to make timely principal and interest payments under the contractual terms of the securities. Furthermore, management does not have the intent to sell any of the securities classified as available for sale in the table above and believes that it is more likely than not that we will not have to sell any such securities before a recovery of cost. The unrealized losses are due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. The amortized cost and fair value of investment securities at September 30, 2023, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations at any time with or without call or prepayment penalties. Amortized Fair (In thousands) Due in one year or less $ 77,562 $ 77,026 Due after one year through five years 185,518 174,016 Due after five years through ten years 141,625 125,892 Due after ten years 386,160 343,946 Subtotal 790,865 720,880 Agency mortgage-backed pass-through securities and collateralized mortgage obligations 822,807 694,072 Total $ 1,613,672 $ 1,414,952 Securities with unrealized losses segregated by length of time such securities have been in a continuous loss position are as follows: September 30, 2023 Less than 12 Months More than 12 Months Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (In thousands) Available for Sale U.S. government and agency securities $ 111,573 $ (3,328) $ 261,872 $ (12,545) $ 373,445 $ (15,873) Municipal securities 18,062 (640) 166,011 (39,690) 184,073 (40,330) Agency mortgage-backed pass-through securities 79,012 (3,829) 248,186 (46,572) 327,197 (50,401) Agency collateralized mortgage obligations 13,881 (168) 351,996 (78,188) 365,878 (78,356) Corporate bonds and other 11,314 (1,249) 81,556 (13,236) 92,870 (14,485) Total $ 233,842 $ (9,214) $ 1,109,621 $ (190,231) $ 1,343,463 $ (199,445) December 31, 2022 Less than 12 Months More than 12 Months Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (In thousands) Available for Sale U.S. government and agency securities $ 99,732 $ (1,427) $ 305,256 $ (17,800) $ 404,988 $ (19,227) Municipal securities 228,192 (14,473) 134,640 (29,353) 362,832 (43,826) Agency mortgage-backed pass-through securities 95,291 (7,612) 199,836 (34,420) 295,127 (42,032) Agency collateralized mortgage obligations 117,147 (14,426) 276,925 (53,204) 394,072 (67,630) Corporate bonds and other 72,913 (5,704) 49,893 (7,684) 122,806 (13,388) Total $ 613,275 $ (43,642) $ 966,550 $ (142,461) $ 1,579,825 $ (186,103) During the nine months ended September 30, 2023, the Company had sales and calls of securities of $320.5 million of securities recording gross gains of $234 thousand. During the nine months ended September 30, 2022, the Company sold $12.1 million of securities recording a gross gain of $42 thousand on the sale of those securities. At September 30, 2023 and December 31, 2022, the Company did not own securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of consolidated shareholders’ equity at such respective dates. |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | LOANS AND ALLOWANCE FOR CREDIT LOSSES The loan portfolio balances, net of unearned income and fees, consist of various types of loans primarily made to borrowers located within Texas and are segregated by class of loan as follows: September 30, 2023 December 31, 2022 (In thousands) Commercial and industrial $ 1,474,600 $ 1,455,795 Paycheck Protection Program (PPP) 5,968 13,226 Real estate: Commercial real estate (including multi-family residential) 4,076,606 3,931,480 Commercial real estate construction and land development 1,078,265 1,037,678 1-4 family residential (including home equity) 1,024,945 1,000,956 Residential construction 289,553 268,150 Consumer and other 54,591 47,466 Total loans 8,004,528 7,754,751 Allowance for credit losses on loans (93,575) (93,180) Loans, net $ 7,910,953 $ 7,661,571 Nonaccrual and Past Due Loans An aging analysis of the recorded investment in past due loans, segregated by class of loans, is included below. The Company defines recorded investment as the outstanding loan balances including net deferred loan fees, and excluding accrued interest receivable of $36.4 million and $34.1 million as of September 30, 2023 and December 31, 2022, respectively, due to immateriality. September 30, 2023 Loans Past Due and Still Accruing Nonaccrual Current Total 30-89 90 or More Total Past (In thousands) Commercial and industrial $ 3,535 $ — $ 3,535 $ 14,971 $ 1,456,094 $ 1,474,600 Paycheck Protection Program (PPP) 85 — 85 20 5,863 5,968 Real estate: Commercial real estate (including multi-family residential) 19,649 — 19,649 13,563 4,043,394 4,076,606 Commercial real estate construction and land development 4,405 — 4,405 170 1,073,690 1,078,265 1-4 family residential (including home equity) 4,742 — 4,742 8,442 1,011,761 1,024,945 Residential construction 3,389 — 3,389 635 285,529 289,553 Consumer and other 215 — 215 490 53,886 54,591 Total loans $ 36,020 $ — $ 36,020 $ 38,291 $ 7,930,217 $ 8,004,528 December 31, 2022 Loans Past Due and Still Accruing Nonaccrual Current Total 30-89 90 or More Total Past (In thousands) Commercial and industrial $ 1,591 $ — $ 1,591 $ 25,297 $ 1,428,907 $ 1,455,795 Paycheck Protection Program (PPP) 517 — 517 105 12,604 13,226 Real estate: Commercial real estate (including multi-family residential) 3,222 — 3,222 9,970 3,918,288 3,931,480 Commercial real estate construction and land development 851 — 851 — 1,036,827 1,037,678 1-4 family residential (including home equity) 3,385 — 3,385 9,404 988,167 1,000,956 Residential construction — — — — 268,150 268,150 Consumer and other 192 — 192 272 47,002 47,466 Total loans $ 9,758 $ — $ 9,758 $ 45,048 $ 7,699,945 $ 7,754,751 Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt. The Company utilizes a risk rating matrix to assign a risk rating to each of its loans. Loans are rated on a scale of 10 to 90. Risk ratings are updated on an ongoing basis and are subject to change by continuous loan monitoring processes including lending management monitoring, executive management and board committee oversight, and independent credit review. As part of the ongoing monitoring of the credit quality of the Company’s loan portfolio and methodology for calculating the allowance for credit losses, management assigns and tracks certain risk ratings to be used as credit quality indicators including trends related to (1) the weighted-average risk grade of loans, (2) the level of classified loans, (3) the delinquency status of loans, (4) nonperforming loans and (5) the general economic conditions in the our markets. Individual bankers, under the oversight of credit administration, review updated financial information for all pass grade commercial loans to reassess the risk grade on at least an annual basis. When a loan reaches a set of internally designated criteria, including Substandard or higher, a special assets officer will be involved in the monitoring of the loan on an on-going basis. The following is a general description of the risk ratings used by the Company: Pass —Credits in this category contain an acceptable amount of risk. Special Mention —Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Substandard —Loans classified as substandard have well-defined weaknesses on a continuing basis and are inadequately protected by the current net worth and paying capacity of the borrower, declining collateral values, or a continuing downturn in their industry which is reducing their profits to below zero and having a significantly negative impact on their cash flow. These loans so classified are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful —Loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loss —Loans classified as loss are to be charged-off or charged-down when payment is acknowledged to be uncertain or when the timing or value of payments cannot be determined. “Loss” is not intended to imply that the loan or some portion of it will never be paid, nor does it in any way imply that there has been a forgiveness of debt. The following table presents risk ratings by category and the gross charge-offs by primary loan type and year of origination or renewal. Generally, current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below. The following summarizes the amortized cost basis of loans by year of origination/renewal and credit quality indicator by class of loan as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Term Loans Amortized Cost Basis by Origination Year Revolving Revolving Loans Total Total 2023 2022 2021 2020 2019 Prior (In thousands) Commercial and industrial Pass $ 249,626 $ 299,874 $ 194,032 $ 47,217 $ 31,150 $ 23,062 $ 528,399 $ 63,180 $ 1,436,540 $ 1,400,191 Special Mention 2,786 403 508 438 861 — 3,054 102 8,152 18,982 Substandard 1,250 3,925 9,303 1,140 12,131 281 1,057 771 29,858 36,568 Doubtful — 50 — — — — — — 50 54 Total commercial and industrial loans $ 253,662 $ 304,252 $ 203,843 $ 48,795 $ 44,142 $ 23,343 $ 532,510 $ 64,053 $ 1,474,600 $ 1,455,795 Current period gross charge-offs $ — $ 130 $ 4,264 $ 456 $ 129 $ — $ 4,143 $ 531 $ 9,653 Paycheck Protection Program (PPP) Pass $ — $ — $ 3,218 $ 2,750 $ — $ — $ — $ — $ 5,968 $ 13,226 Special Mention — — — — — — — — — — Substandard — — — — — — — — — — Doubtful — — — — — — — — — — Total PPP loans $ — $ — $ 3,218 $ 2,750 $ — $ — $ — $ — $ 5,968 $ 13,226 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate (including multi-family residential) Pass $ 366,601 $ 1,327,957 $ 863,078 $ 467,867 $ 348,105 $ 480,980 $ 128,848 $ 11,052 $ 3,994,488 $ 3,844,951 Special Mention 934 508 7,756 8,409 1,716 12,414 305 — 32,042 18,183 Substandard 3,906 5,050 16,003 6,832 5,009 12,890 286 100 50,076 68,346 Doubtful — — — — — — — — — — Total commercial real estate (including multi-family residential) loans $ 371,441 $ 1,333,515 $ 886,837 $ 483,108 354830 $ 506,284 $ 129,439 $ 11,152 $ 4,076,606 $ 3,931,480 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate construction and land development Pass $ 211,096 $ 518,943 $ 227,438 $ 29,351 $ 9,689 $ 6,189 $ 58,463 $ 693 $ 1,061,862 $ 1,025,141 Special Mention — 2,222 2,062 139 — 202 — — 4,625 832 Substandard 22 1,016 10,406 88 80 17 — 149 11,778 11,705 Doubtful — — — — — — — — — — Total commercial real estate construction and land development $ 211,118 $ 522,181 $ 239,906 $ 29,578 $ 9,769 $ 6,408 $ 58,463 $ 842 $ 1,078,265 $ 1,037,678 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — September 30, 2023 December 31, 2022 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Revolving Loans 2023 2022 2021 2020 2019 Prior Total Total (In thousands) 1-4 family residential (including Pass $ 132,680 $ 252,160 $ 224,562 $ 116,514 $ 72,701 $ 90,921 $ 94,320 $ 10,248 $ 994,106 $ 969,396 Special Mention 499 569 — 1,996 333 195 98 — 3,690 3,714 Substandard 1,940 2,399 3,103 1,468 3,893 4,493 7,071 2,782 27,149 27,846 Doubtful — — — — — — — — — — Total 1-4 family residential (including home equity) $ 135,119 $ 255,128 $ 227,665 $ 119,978 $ 76,927 $ 95,609 $ 101,489 $ 13,030 $ 1,024,945 $ 1,000,956 Current period gross charge-offs $ — $ — $ — $ — $ — $ 23 $ — $ — $ 23 Residential construction Pass $ 116,508 $ 136,500 $ 6,341 $ 4,117 $ 658 $ 499 $ 21,710 $ — $ 286,333 $ 266,943 Special Mention — 634 — — — — — — 634 421 Substandard — 635 1,951 — — — — — 2,586 786 Doubtful — — — — — — — — — — Total residential construction $ 116,508 $ 137,769 $ 8,292 $ 4,117 $ 658 $ 499 $ 21,710 $ — $ 289,553 $ 268,150 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer and other Pass $ 23,489 $ 9,146 $ 4,130 $ 2,005 $ 676 $ 465 $ 13,192 $ 901 $ 54,004 $ 47,062 Special Mention — 26 — — — — 45 — 71 43 Substandard — 312 35 — 56 5 4 104 516 361 Doubtful — — — — — — — — — — Total consumer and other $ 23,489 $ 9,484 $ 4,165 $ 2,005 $ 732 $ 470 $ 13,241 $ 1,005 $ 54,591 $ 47,466 Current period gross charge-offs $ — $ 44 $ — $ — $ — $ — $ 1 $ — $ 45 Total loans Pass $ 1,100,000 $ 2,544,580 $ 1,522,799 $ 669,821 $ 462,979 $ 602,116 $ 844,932 $ 86,074 $ 7,833,301 $ 7,566,910 Special Mention 4,219 4,362 10,326 10,982 2,910 12,811 3,502 102 49,214 42,175 Substandard 7,118 13,337 40,801 9,528 21,169 17,686 8,418 3,906 121,963 145,612 Doubtful — 50 — — — — — — 50 54 Total loans $ 1,111,337 $ 2,562,329 $ 1,573,926 $ 690,331 $ 487,058 $ 632,613 $ 856,852 $ 90,082 $ 8,004,528 $ 7,754,751 Current period gross charge-offs $ — $ 174 $ 4,264 $ 456 $ 129 $ 23 $ 4,144 $ 531 $ 9,721 The following table presents the activity in the allowance for credit losses on loans by portfolio type for the three and nine months ended September 30, 2023 and 2022: Commercial and industrial Paycheck Protection Program (PPP) Commercial real estate (including multi-family residential) Commercial real estate construction and land development 1-4 family residential (including home equity) Residential construction Consumer and other Total (In thousands) Allowance for credit losses on loans: Three Months Ended Balance June 30, 2023 $ 38,505 $ — $ 38,963 $ 14,500 $ 4,757 $ 3,080 $ 390 $ 100,195 Provision for credit losses on loans 2,173 — 58 (791) 34 (221) 243 1,496 Charge-offs (8,169) — — — — — (7) (8,176) Recoveries 55 — 2 — — — 3 60 Net charge-offs (8,114) — 2 — — — (4) (8,116) Balance September 30, 2023 $ 32,564 $ — $ 39,023 $ 13,709 $ 4,791 $ 2,859 $ 629 $ 93,575 Nine Months Ended Balance December 31, 2022 $ 41,236 $ — $ 32,970 $ 14,121 $ 2,709 $ 1,796 $ 348 $ 93,180 Provision for credit losses on loans (143) — 6,037 (412) 2,096 1,063 298 8,939 Charge-offs (9,653) — — — (23) — (45) (9,721) Recoveries 1,124 — 16 — 9 — 28 1,177 Net charge-offs (8,529) — 16 — (14) — (17) (8,544) Balance September 30, 2023 $ 32,564 $ — $ 39,023 $ 13,709 $ 4,791 $ 2,859 $ 629 $ 93,575 Three Months Ended Balance June 30, 2022 $ 16,701 $ — $ 24,000 $ 7,399 $ 1,036 $ 1,048 $ 58 $ 50,242 Provision for credit losses on loans (1,091) — 1,606 952 (9) 188 14 1,660 Charge-offs (2) — (56) — — — (17) (75) Recoveries 319 — — — — — 1 320 Net recoveries 317 — (56) — — — (16) 245 Balance September 30, 2022 $ 15,927 $ — $ 25,550 $ 8,351 $ 1,027 $ 1,236 $ 56 $ 52,147 Nine Months Ended Balance December 31, 2021 $ 16,629 $ — $ 23,143 $ 6,263 $ 847 $ 975 $ 83 $ 47,940 Provision for credit losses on loans (464) — 2,740 2,096 180 261 37 4,850 Charge-offs (958) — (383) (63) — — (65) (1,469) Recoveries 720 — 50 55 — — 1 826 Net charge-offs (238) — (333) (8) — — (64) (643) Balance September 30, 2022 $ 15,927 $ — $ 25,550 $ 8,351 $ 1,027 $ 1,236 $ 56 $ 52,147 Allowance for Credit Losses on Unfunded Commitments In addition to the allowance for credit losses on loans, the Company has established an allowance for credit losses on unfunded commitments, classified in other liabilities and adjusted as a provision for credit loss expense. The allowance represents estimates of expected credit losses over the contractual period in which there is exposure to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on the commitments expected to fund. The estimate of commitments expected to fund is informed by historical analysis looking at utilization rates. The expected credit loss rates applied to the commitments expected to fund is informed by the general valuation allowance utilized for outstanding balances with the same underlying assumptions and drivers. The allowance for credit losses on unfunded commitments as of September 30, 2023 and December 31, 2022 was $10.9 million and $12.0 million, respectively. This reserve is maintained at a level management believes to be sufficient to absorb losses arising from unfunded loan commitments. The Company recorded an $818 thousand provision on unfunded commitments during the three months ended September 30, 2023 compared to $302 thousand for the three months ended September 30, 2022 and recorded a $1.0 million reversal of provision on unfunded commitments for the nine months ended September 30, 2023 compared to a provision of $1.1 million for the nine months ended September 30, 2022. Collateral dependent loans are secured by real estate assets, accounts receivable, inventory and equipment. For a collateral dependent loan, the Company’s evaluation process includes a valuation by appraisal or other collateral analysis adjusted for selling costs, when appropriate. This valuation is compared to the remaining outstanding principal balance of the loan. If a loss is determined to be probable, the loss is included in the allowance for credit losses on loans as a specific allocation. The following tables present the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses as of September 30, 2023 and December 31, 2022: September 30, 2023 Real Estate Business Assets Other Total (In thousands) Commercial and industrial $ — $ 7,476 $ — $ 7,476 Real estate: Commercial real estate (including multi-family residential) 3,411 — — 3,411 Commercial real estate construction and land development — — — 1-4 family residential (including home equity) — — — — Residential construction — — — — Consumer and other — — — — Total $ 3,411 $ 7,476 $ — $ 10,887 December 31, 2022 Real Estate Business Assets Other Total (In thousands) Commercial and industrial $ — $ 18,411 $ 30 $ 18,441 Real estate: Commercial real estate (including multi-family residential) 1,612 — — 1,612 Commercial real estate construction and land development — — — — 1-4 family residential (including home equity) 3,478 — — 3,478 Residential construction — — — — Consumer and other — — — — Total $ 5,090 $ 18,411 $ 30 $ 23,531 The following tables present additional information regarding nonaccrual loans. No interest income was recognized on nonaccrual loans as of September 30, 2023 and December 31, 2022. September 30, 2023 Nonaccrual Loans with No Related Allowance Nonaccrual Loans with Related Allowance Total Nonaccrual Loans (In thousands) Commercial and industrial $ 10,337 $ 4,634 $ 14,971 Paycheck Protection Program (PPP) 20 — 20 Real estate: Commercial real estate (including multi-family residential) 10,820 2,743 13,563 Commercial real estate construction and land development 170 — 170 1-4 family residential (including home equity) 6,849 1,593 8,442 Residential construction 635 — 635 Consumer and other 81 409 490 Total loans $ 28,912 $ 9,379 $ 38,291 December 31, 2022 Nonaccrual Loans with No Related Allowance Nonaccrual Loans with Related Allowance Total Nonaccrual Loans (In thousands) Commercial and industrial $ 2,776 $ 22,521 $ 25,297 Paycheck Protection Program (PPP) 105 — 105 Real estate: Commercial real estate (including multi-family residential) 8,704 1,266 9,970 Commercial real estate construction and land development — — — 1-4 family residential (including home equity) 4,856 4,548 9,404 Residential construction — — — Consumer and other 94 178 272 Total loans $ 16,535 $ 28,513 $ 45,048 Loan Modifications and Troubled Debt Restructurings Effective January 1, 2023, under ASU 2022-02, loan modifications are reported if concessions have been granted to borrowers that are experiencing financial difficulty. Information on these loan modifications originated after the effective date is presented according to the new accounting guidance. Reporting periods prior to the adoption of ASU 2022-02 present information on troubled debt restructurings ("TDRs") under the previous disclosure requirements. The percentage of loans modified comprised less than 1% of their respective classes of loan portfolios at September 30, 2023. The following tables present information regarding loans that were modified due to the borrowers experiencing financial difficulty during the three and nine months ended September 30, 2023: Three Months Ended September 30, 2023 Interest Rate Reduction Term Extension Payment Delay Principal forgiveness Combination Term Extension and Principal Forgiveness Combination Term Extension and Payment Delay Total (In thousands) Commercial and industrial $ — $ — $ — $ — $ — $ — $ — Real estate: Commercial real estate (including multi-family residential) — 1,890 — — — — 1,890 Commercial real estate construction and land development — — — — — — 1-4 family residential (including home equity) — 322 99 — — 71 492 Residential construction — — — — — — — Consumer and other — — — — — — — Total $ — $ 2,212 $ — $ — $ — $ 71 $ 2,382 Nine Months Ended September 30, 2023 Interest Rate Reduction Term Extension Payment Delay Principal forgiveness Combination Term Extension and Principal Forgiveness Combination Term Extension and Payment Delay Total (In thousands) Commercial and industrial $ 89 $ 2,185 $ — $ — $ — $ 260 $ 2,534 Real estate: Commercial real estate (including multi-family residential) — 2,670 — — — 1,703 4,373 Commercial real estate construction and land development — 6,850 — — — — 6,850 1-4 family residential (including home equity) — 1,037 99 — — 71 1,207 Residential construction — — — — — — — Consumer and other — 94 — — — — 94 Total $ 89 $ 12,836 $ 99 $ — $ — $ 2,034 $ 15,058 The following table summarizes, by loan portfolio, the financial effect of the Company's loan modifications for the three and nine months ended September 30, 2023: Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Weighted Average Interest Rate Reduction Weighted Average Term Extension Weighted Average Interest Rate Reduction Weighted Average Term Extension (months) (months) Commercial and industrial — % — 2.0 % 12 Real estate: Commercial real estate (including multi-family residential) — % 6 — % 9 Commercial real estate construction and land development — % — — % 12 1-4 family residential (including home equity) 1.5 % 24 1.5 % 16 Residential construction — % — — % — Consumer and other — % — — % 7 The following table summarizes loans that had a payment default within the past twelve months that were modified due to the borrowers experiencing financial difficulty during the three and nine months ended September 30, 2023: Interest Rate Reduction Term Extension Payment Delay Principal forgiveness (In thousands) Commercial and industrial $ 89 $ 670 $ — $ — Real estate: Commercial real estate (including multi-family residential) — — — — Commercial real estate construction and land development — — — — 1-4 family residential (including home equity) — 715 99 — Residential construction — — — — Consumer and other — — — — $ 89 $ 1,385 $ 99 $ — The following table presents information regarding loans modified in a troubled debt restructuring during the three and nine months ended September 30, 2022: Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Number of Contracts Pre-modifications of Outstanding Recorded Investment Post-modifications of Outstanding Recorded Investment Number of Contracts Pre-modifications of Outstanding Recorded Investment Post-modifications of Outstanding Recorded Investment (Dollars in thousands) Troubled Debt Restructurings Commercial and industrial 1 $ 224 $ 224 4 $ 768 $ 768 Real estate: Commercial real estate (including multi-family residential) — — — 4 1,207 1,207 Consumer and other 1 45 45 1 45 45 Total 2 $ 269 $ 269 9 $ 2,020 $ 2,020 Troubled debt restructurings resulted in no charge-offs during the nine months ended September 30, 2022. There were no loans modified under a trouble debt restructuring during the previous twelve-month period that subsequently defaulted during the nine-month period ended September 30, 2022. Default is determined to at 90 or more days past due. The trouble debt restructurings related to extending the amortization periods of the loans. The Company did not grant principal reductions on any restructured loans during the nine months ended September 30, 2022. There were no commitments to lend additional amounts to borrowers with trouble debt restructured loans for the three and nine months ended September 30, 2022. |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
LEASES | LEASES Lease payments over the expected term are discounted using the Company’s incremental borrowing rate for borrowings of similar terms. Generally, the Company cannot be reasonably certain about whether or not it will renew a lease until such time as the lease is within the last two years of the existing lease term. When the Company is reasonably certain that a renewal option will be exercised, it measures/remeasures the right-of-use asset and related lease liability using the lease payments specified for the renewal period or, if such amounts are unspecified, the Company generally assumes an increase (evaluated on a case-by-case basis in light of prevailing market conditions) in the lease payment over the final period of the existing lease term. There were no sale and leaseback transactions, leveraged leases or lease transactions with related parties during the nine months ended September 30, 2023 and 2022. At September 30, 2023, the Company had 31 leases consisting of branch locations and office space. On the September 30, 2023 balance sheet, the right-of-use asset is classified within premises and equipment and the lease liability is included in other liabilities. The Company also owns certain office facilities which it leases to outside parties under operating lessor leases; however, such leases are not significant. All leases were classified as operating leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term. Certain leases include options to renew, with renewal terms that can extend the lease term from one Supplemental lease information at the dates indicated is as follows: September 30, 2023 December 31, 2022 (Dollars in thousands) Balance Sheet: Operating lease right of use asset classified as premises and equipment $ 20,483 $ 23,538 Operating lease liability classified as other liabilities $ 20,225 $ 23,136 Weighted average lease term, in years 7.91 8.18 Weighted average discount rate 4.14 % 4.00 % Lease costs for the dates indicated is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Income Statement: Operating lease cost $ 1,885 $ 836 $ 5,280 $ 2,559 Short-term lease cost 8 — 21 — Total operating lease costs $ 1,893 $ 836 $ 5,301 $ 2,559 A maturity analysis of the Company’s lease liabilities is as follows: September 30, 2023 December 31, 2022 (In thousands) Lease payments due: Within one year $ 1,171 $ 4,634 After one but within two years 4,137 4,121 After two but within three years 3,681 3,684 After three but within four years 3,125 3,132 After four but within five years 2,914 2,918 After five years 9,279 9,303 Total lease payments 24,307 27,792 Less: discount on cash flows 4,082 4,656 Total lease liability $ 20,225 $ 23,136 |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Fair value represents the exchange price that would be received from selling an asset or paid to transfer a liability, otherwise known as an “exit price,” in the principal or most advantageous market available to the entity in an orderly transaction between market participants on the measurement date. Fair Value Hierarchy Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company groups financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: • Level 1—Quoted prices for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. • Level 2—Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3—Significant unobservable inputs that reflect management’s judgment and assumptions that market participants would use in pricing an asset or liability that are supported by little or no market activity. The carrying amounts and estimated fair values of financial instruments that are reported on the balance sheet are as follows: September 30, 2023 Estimated Fair Value Carrying Level 1 Level 2 Level 3 Total (In thousands) Financial assets Cash and cash equivalents $ 302,272 $ 302,272 $ — $ — $ 302,272 Available for sale securities 1,414,952 — 1,414,952 — 1,414,952 Loans held for investment, net of allowance 7,910,953 — — 7,615,073 7,615,073 Accrued interest receivable 43,536 176 6,947 36,413 43,536 Financial liabilities Deposits $ 8,686,621 $ — $ 8,677,026 $ — $ 8,677,026 Accrued interest payable 7,612 — 7,612 — 7,612 Borrowed funds 323,981 — 323,998 — 323,998 Subordinated debt 109,665 — 107,469 — 107,469 December 31, 2022 Estimated Fair Value Carrying Level 1 Level 2 Level 3 Total (In thousands) Financial assets Cash and cash equivalents $ 371,705 $ 371,705 $ — $ — $ 371,705 Available for sale securities 1,807,586 — 1,807,586 — 1,807,586 Loans held for investment, net of allowance 7,661,571 — — 7,555,602 7,555,602 Accrued interest receivable 44,743 25 10,585 34,133 44,743 Financial liabilities Deposits $ 9,267,632 $ — $ 9,256,141 $ — $ 9,256,141 Accrued interest payable 2,098 — 2,098 — 2,098 Borrowed funds 63,925 — 63,999 — 63,999 Subordinated debt 109,367 — 107,910 — 107,910 The following tables present fair values for assets and liabilities measured at fair value on a recurring basis. There were no liabilities measured at fair value on a recurring basis as of September 30, 2023. September 30, 2023 Level 1 Level 2 Level 3 Total (In thousands) Financial assets Available for sale securities: U.S. government and agency securities $ — $ 393,408 $ — $ 393,408 Municipal securities — 219,116 — 219,116 Agency mortgage-backed pass-through securities — 328,194 — 328,194 Agency collateralized mortgage obligations — 365,878 — 365,878 Corporate bonds and other — 108,356 — 108,356 Interest rate swaps — — 10,218 10,218 Credit risk participation agreements — — 10 10 Total fair value of financial assets $ — $ 1,414,952 $ 10,228 $ 1,425,180 Financial liabilities Interest rate swaps $ — $ — $ 10,218 $ 10,218 Total fair value of financial liabilities $ — $ — $ 10,218 $ 10,218 December 31, 2022 Level 1 Level 2 Level 3 Total (In thousands) Financial assets Available for sale securities: U.S. government and agency securities $ — $ 414,280 $ — $ 414,280 Municipal securities — 540,569 — 540,569 Agency mortgage-backed pass-through securities — 328,801 — 328,801 Agency collateralized mortgage obligations — 394,130 — 394,130 Corporate bonds and other — 129,806 — 129,806 Interest rate swaps — — 9,263 9,263 Credit risk participation agreements — — 27 27 Total fair value of financial assets $ — $ 1,807,586 $ 9,290 $ 1,816,876 Financial liabilities Interest rate swaps $ — $ — $ 9,263 $ 9,263 Total fair value of financial liabilities $ — $ — $ 9,263 $ 9,263 There were no transfers between levels during the nine months ended September 30, 2023 or 2022. Assets measured at fair value on a nonrecurring basis are summarized in the table below. There were no liabilities measured at fair value on a nonrecurring basis at September 30, 2023 and December 31, 2022. September 30, 2023 Level 1 Level 2 Level 3 (In thousands) Loans: Commercial and industrial $ — $ — $ 13,830 Commercial real estate (including multi-family residential) — — 7,706 Commercial real estate construction and land development — — 6,654 1-4 family residential (including home equity) — — 2,776 Consumer and other — — 88 Branch assets held for sale 5,852 — — $ 5,852 $ — $ 31,054 December 31, 2022 Level 1 Level 2 Level 3 (In thousands) Loans: Commercial and industrial $ — $ — $ 21,948 Commercial real estate (including multi-family residential) — — 11,566 1-4 family residential (including home equity) — — 2,883 Branch assets held for sale 5,165 — — $ 5,165 $ — $ 36,397 Branch assets held for sale include banking centers that have closed and are for sale. |
DEPOSITS
DEPOSITS | 9 Months Ended |
Sep. 30, 2023 | |
Deposit Liabilities [Abstract] | |
DEPOSITS | DEPOSITS Time deposits that met or exceeded the Federal Deposit Insurance Corporation ("FDIC") insurance limit of $250,000 thousand at September 30, 2023 and December 31, 2022 were $560.2 million and $432.9 million, respectively. Scheduled maturities of time deposits for the next five years are as follows (in thousands): Within one year $ 1,399,265 After one but within two years 85,040 Over three years 19,586 Total $ 1,503,891 The Company had $579.0 million and $72.5 million of brokered deposits as of September 30, 2023 and December 31, 2022, respectively. There were no concentrations of deposits with any one depositor at September 30, 2023 and December 31, 2022. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS Financial derivatives are reported at fair value in other assets or other liabilities. The accounting for changes in the fair value of a derivative depends on whether it has been designated and qualifies as part of a hedging relationship. Derivatives not designated as hedges The Company has outstanding interest rate swap contracts with certain customers and equal and offsetting interest rate swaps with other financial institutions entered into at the same time. These interest rate swap contracts are not designated as hedging instruments for mitigating interest rate risk. The objective of the transactions is to allow customers to effectively convert a variable rate loan to a fixed rate. In connection with each swap transaction, the Company agreed to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on a similar notional amount at a fixed interest rate. At the same time, the Company agreed to pay a third-party financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. Because the Company acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts are designed to offset each other and do not significantly impact the Company’s operating results except in certain situations where there is a significant deterioration in the customer’s credit worthiness or that of the counterparties. At September 30, 2023, management determined there was no such deterioration. At September 30, 2023 and December 31, 2022, the Company had 15 and 14 interest rate swap agreements outstanding with borrowers and financial institutions, respectively. These derivative instruments are not designated as accounting hedges and changes in the net fair value are recognized in other noninterest income. Fair value amounts are included in other assets and other liabilities. At September 30, 2023 and December 31, 2022, the Company had three credit risk participation agreements with another financial institution that are associated with interest rate swaps related to loans for which the Company is the lead agent bank and the other financial institution provides credit protection to the Company should the borrower fail to perform under the terms of the interest rate swap agreements. The fair value of the agreements is determined based on the market value of the underlying interest rate swaps adjusted for credit spreads and recovery rates. Derivative instruments not designated as hedges outstanding as of September 30, 2023 were as follows (dollars in thousands): Weighted Average Notional Fair Maturity Classification Amounts Value Fixed Rate Floating Rate (Years) Interest rate swaps: Financial institutions Other assets $ 110,946 $ 9,758 3.25% - 6.25% SOFR CME 1M + 2.50% - 3.00% 4.74 Financial institutions Other assets 4,940 460 4.99% U.S. Prime 4.21 Customers Other liabilities 4,940 (460) 4.99% U.S. Prime 4.21 Customers Other liabilities 110,946 (9,758) 3.25% - 6.25% SOFR CME 1M + 2.50% - 3.00% 4.74 Credit risk participations: Financial institutions Other assets 20,958 10 3.50% - 5.40% SOFR CME 1M + 2.50% 7.58 Derivative instruments not designated as hedges outstanding as of December 31, 2022 were as follows (dollars in thousands): Weighted Average Notional Fair Maturity Classification Amounts Value Fixed Rate Floating Rate (Years) Interest rate swaps: Financial institutions Other assets $ 109,242 $ 8,856 3.25% - 5.58% SOFR CME 1M + 2.50% - 3.00% 5.49 Financial institutions Other assets 5,029 407 4.99% U.S. Prime 4.96 Customers Other liabilities 5,029 (407) 4.99% U.S. Prime 4.96 Customers Other liabilities 109,242 (8,856) 3.25% - 5.58% SOFR CME 1M + 2.50% 5.49 Credit risk participations: Financial institutions Other assets 13,028 2 3.50% LIBOR 1M + 2.50% 7.24 Financial institutions Other assets 8,485 25 5.35% - 5.40% SOFR CME 1M + 2.50% 9.97 |
BORROWINGS AND BORROWING CAPACI
BORROWINGS AND BORROWING CAPACITY | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
BORROWINGS AND BORROWING CAPACITY | BORROWINGS AND BORROWING CAPACITY The Company has an available line of credit with the Federal Home Loan Bank (“FHLB”) of Dallas, which allows the Company to borrow on a collateralized basis. FHLB advances are used to manage liquidity as needed. The advances are secured by a blanket lien on certain loans. Maturing advances are replaced by drawing on available cash, making additional borrowings or through increased customer deposits. At September 30, 2023, the Company had a total borrowing capacity with the FHLB of $3.82 billion, of which $2.28 billion was available and $1.54 billion was outstanding in/through FHLB advances and letters of credit. There were $324.0 million of FHLB short-term advances outstanding at September 30, 2023 at a weighted-average rate of 5.62%. Letters of credit were $1.22 billion at September 30, 2023, of which $50.8 million will expire during the remaining months of 2023, $72.8 million will expire in 2024, $494.5 million will expire in 2025, $57.3 million will expire in 2026, $448.0 million will expire in 2027, $40.0 million will expire in 2028, $27.0 million will expire in 2029 and $30.0 million will expire in 2031. On December 13, 2022, the Company entered into a loan agreement with another financial institution, or the Loan Agreement, that provides for a $75.0 million revolving line of credit. At September 30, 2023, there were no outstanding borrowings on this line of credit and the Company did not draw on this line of credit during 2023 or 2022. The Company can make draws on the line of credit for a period of 24 months, which began on Decemb er 13, 2 022, after which the Company will not be permitted to make further draws. Interest accrues on outstanding borrowings at a per annum rate equal to the prime rate quoted by The Wall Street Journal and with a floor rate of 3.50% calculated in accordance with the terms of the revolving promissory note and payable quarterly through the first 24 months. The entire outstanding balance and unpaid interest is payable in full on December 13, 2024. The Company may prepay the principal amount of the line of credit without premium or penalty. The obligations of the Company under the Loan Agreement are secured by a pledge of all the issued and outstanding shares of capital stock of Stellar Bank. Covenants made under the Loan Agreement include, among other things, while there any obligations outstanding under Loan Agreement, the Company shall maintain a cash flow to debt service (as defined in the Loan Agreement) of not less than 1.25, the Bank’s Texas Ratio (as defined in the Loan Agreement) not to exceed 25.0%, and the Bank shall maintain a Tier 1 Leverage Ratio (as defined under the Loan Agreement) of at least 7.0% and restrictions on the ability of the Company and its subsidiaries to incur certain additional debt. As of September 30, 2023, the Company believes it was in compliance with all such debt covenants and had not been made aware of any noncompliance by the lender. |
SUBORDINATED DEBT
SUBORDINATED DEBT | 9 Months Ended |
Sep. 30, 2023 | |
Subordinated Borrowings [Abstract] | |
SUBORDINATED DEBT | SUBORDINATED DEBT Junior Subordinated Debentures In connection with the acquisitio n of F&M Bancshares, Inc., the Company assumed Farmers & Merchants Capital Trust II and Farmers & Merchants Capital Trust III. Each of these trusts is a capital or statutory business trust organized for the sole purpose of issuing trust securities and investing the proceeds in the Company’s junior subordinated debentures. The preferred trust securities of each trust represent preferred beneficial interests in the assets of the respective trusts and are subject to mandatory redemption upon payment of the junior subordinated debentures held by the trust. The common securities of each trust are wholly owned by the Company. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related junior subordinated debentures. The debentures, which are the only assets of each trust, are subordinate and junior in right of payment to all of the Company’s present and future senior indebtedness. The Company has fully and unconditionally guaranteed each trust’s obligations under the trust securities issued by such trust to the extent not paid or made by such trust, provided such trust has funds available for such obligations. The junior subordinated debentures are included in Tier 1 capital under current regulatory guidelines and interpretations. Under the provisions of each issue of the debentures, the Company has the right to defer payment of interest on the debentures at any time, or from time to time, for periods not exceeding five years. If interest payments on either issue of the debentures are deferred, the distributions on the applicable trust preferred securities and common securities will also be deferred. A summary of pertinent information related to the Company’s issues of junior subordinated debentures outstanding at September 30, 2023 is set forth in the table below: Description Issuance Date Trust Preferred Securities Outstanding Interest Rate Junior Subordinated Debt Owed to Trusts Maturity Date (1) (Dollars in thousands) Farmers & Merchants Capital Trust II November 13, 2003 $ 7,500 3-Month SOFR + 3.26% $ 7,732 November 8, 2033 Farmers & Merchants Capital Trust III June 30, 2005 3,500 3-Month SOFR + 2.06% 3,609 July 7, 2035 $ 11,341 (1) All debentures are currently callable. Subordinated Notes In December 2017, the Bank completed the issuance, through a private placement, of $40.0 million aggregate principal amount of Fixed-to-Floating Rate Subordinated Notes (the "Bank Notes") due December 15, 2027. As of December 15, 2022, the Bank Notes bore a floating rate of interest equal to 3-Month LIBOR plus 3.03%, which transitioned to 3-Month SOFR plus a comparable spread adjustment immediately after June 30, 2023, until the Bank Notes mature on December 15, 2027, or such earlier redemption date, payable quarterly in arrears. The Bank Notes are redeemable by the Bank, in whole or in part, on or after December 15, 2022 or, in whole but not in part, upon the occurrence of certain specified tax events, capital events or investment company events. Any redemption will be at a redemption price equal to 100% of the principal amount of Bank Notes being redeemed, plus accrued and unpaid interest, and will be subject to, and require, prior regulatory approval. The Bank Notes are not subject to redemption at the option of the holders. The Bank Notes are eligible for Tier 2 capital treatment, however, during the last five years of the instrument, the amount eligible must be reduced by 20% of the original amount annually and that no amount of the instrument is eligible for inclusion in Tier 2 capital when the remaining maturity of the instrument is less than one year. As the Bank Notes were within five years of maturity, only 80% of the notes are eligible for Tier 2 capital treatment at September 30, 2023. In September 2019, the Company completed the issuance of $60.0 million aggregate principal amount of Fixed-to-Floating Rate Subordinated Notes (the "Company Notes") due October 1, 2029. The Company Notes bear a fixed interest rate of 4.70% per annum until (but excluding) October 1, 2024, payable semi-annually in arrears on April 1 and October 1, commencing on April 1, 2020. Thereafter, from October 1, 2024 through the maturity date, October 1, 2029, or earlier redemption date, the Company Notes will bear interest at a floating rate equal to the then-current 3-Month SOFR, plus 3.13%, which transitioned from LIBOR immediately after June 30, 2023, for each quarterly interest period, payable quarterly in arrears on January 1, April 1, July 1 and October 1 of each year. Any redemption will be at a redemption price equal to 100% of the principal amount of Company Notes being redeemed, plus accrued and unpaid interest, and will be subject to, and require, prior regulatory approval. The Company Notes are not subject to redemption at the option of the holders. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The amount of the Company’s federal and state income tax expense is influenced by the amount of pre-tax income, the amount of tax-exempt income and the amount of other nondeductible items. Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Income tax expense $ 7,445 $ 3,406 $ 24,825 $ 11,310 Effective income tax rate 19.4 % 19.3 % 19.4 % 18.6 % |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION In connection with the closing of the Merger on October 1, 2022, the 2022 Omnibus Incentive Plan (the “2022 Plan”) approved by the Company’s shareholders at the special meeting of shareholders on May 23, 2022 became effective. Under the 2022 Plan, the Company is authorized to issue a maximum aggregate of 2,000,000 shares of common stock. All restricted stock and performance share awards outstanding at September 30, 2023 were issued under the 2022 Plan. At September 30, 2023, there were 1,017,319 shares reserved and available for issuance under the 2022 Plan. The Company accounts for stock based employee compensation plans using the fair value-based method of accounting. The Company recognized total stock based compensation expense of $2.8 million and $969 thousand for the three months ended September 30, 2023 and 2022, respectively, and $8.2 million and $2.9 million for the nine months ended September 30, 2023 and 2022, respectively. Stock Options Stock options outstanding at September 30, 2023, were issued prior to the Merger under three equity compensation plans (1) the Allegiance 2015 Stock Awards and Incentive Plan, (2) the Allegiance 2019 Amended and Restated Stock Awards and Incentive Plan and (3) the CBTX 2014 Stock Option Plan. No additional shares may be issued under these compensation plans. No options to purchase Company stock were granted during the nine months ended September 30, 2023. Options are exercisable for up to 10 years from the date of the grant and, dependent on the terms of the applicable award agreement generally vest three A summary of the activity in the stock option plans during the nine months ended September 30, 2023 is set forth below: Number of Weighted Weighted Aggregate (Shares in thousands) (In years) (Dollars in thousands) Options outstanding, January 1, 2023 368 $ 17.89 2.72 $ 4,256 Options granted — — Options exercised (49) 14.19 Options forfeited (36) 20.67 Options outstanding, September 30, 2023 283 $ 18.18 2.17 $ 1,036 Options vested and exercisable, September 30, 2023 283 $ 18.18 2.17 $ 1,036 Restricted Stock Awards The fair value of the Company’s restricted stock awards is estimated based on the market value of the Company’s common stock at the date of grant, which is the closing price of the Company’s common stock on the day before the grant date. The shares of restricted stock granted during 2023 generally vest over a period of two Shares of restricted stock are considered outstanding at the date of issuance as the grantee becomes the record owner of the restricted stock and has voting, dividend and other shareholder rights. The shares of restricted stock are non-transferable and subject to forfeiture until the restricted stock awards vest and any dividends with respect to the restricted stock awards are subject to the same restrictions, including the risk of forfeiture. A summary of the activity of the nonvested shares of restricted stock during the nine months ended September 30, 2023 is as follows: Number of Weighted (Shares in thousands) Nonvested share awards outstanding, January 1, 2023 501 $ 32.84 Share awards granted 262 25.67 Share awards vested (14) 25.99 Unvested share awards forfeited or cancelled (64) 31.03 Nonvested share awards outstanding, September 30, 2023 685 30.41 As of September 30, 2023, there was $13.1 million of total unrecognized compensation cost related to the restricted stock awards which is expected to be recognized over a weighted-average period of 1.70 years. Performance Share Awards ("PSAs") PSAs are generally earned subject to certain performance goals being met after the two-year performance period and will be settled in shares of Company common stock following a one-year service period. There were 119,845 PSAs awarded during the nine months ended September 30, 2023. The grant date fair value of the PSAs is based on the probable outcome of the applicable performance conditions and is calculated at target based on a combination of the closing market price of our common stock on the grant date and a Monte Carlo simulated fair value in accordance with ASC 718. At September 30, 2023, there was $2.0 million of unrecognized compensation expense related to the PSAs, which is expected to be recognized over a weighted-average period of 2.0 years. |
OFF-BALANCE SHEET ARRANGEMENTS,
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES | OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES In the normal course of business, the Company enters into various transactions, which, in accordance with accounting principles generally accepted in the United States, are not included in the Company’s consolidated balance sheets. The Company enters into these transactions to meet the financing needs of its customers. These transactions include commitments to extend credit and standby and commercial letters of credit, which involve to varying degrees elements of credit risk and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The Company uses the same credit policies in making commitments and conditional obligations as it does for on balance sheet instruments. The contractual amounts of financial instruments with off-balance sheet risk are as follows: September 30, 2023 December 31, 2022 Fixed Variable Fixed Variable (In thousands) Commitments to extend credit (1) $ 432,498 $ 1,454,648 $ 673,098 $ 1,686,627 Standby letters of credit 14,507 23,249 10,310 25,190 Total $ 447,005 $ 1,477,897 $ 683,408 $ 1,711,817 1) At September 30, 2023 and December 31, 2022, the Company had FHLB Letters of Credit in the amount of $1.22 billion and $1.08 billion, respectively, pledged as collateral for public and other deposits of state and local government agencies. For more information on FHLB borrowings, see Note 10 – Borrowings and Borrowing Capacity. Commitments to Extend Credit Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being fully drawn upon, the total commitment amounts disclosed do not necessarily represent future cash funding requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The Company minimizes its exposure to loss under these commitments by subjecting them to credit approval and monitoring procedures. Management assesses the credit risk associated with certain commitments to extend credit in determining the level of the allowance for credit losses. The amount and type of collateral, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the customer. Commitments to make loans are generally made for an approval period of 120 days or fewer. As of September 30, 2023, the fixed rate loan commitments had interest rates ranging from 1.70% to 13.50% with a weighted average maturity and rate of 2.46 years and 6.28%, respectively. Standby Letters of Credit Standby letters of credit are written conditional commitments issued by the Company to guarantee the performance of a customer to a third party. In the event of nonperformance by the customer, the Company has the rights to the underlying collateral. The credit risk to the Company in issuing letters of credit is substantially similar to that involved in extending loan facilities to its customers. The Company’s policy for obtaining collateral, and the nature of such collateral, is substantially similar to that involved in making commitments to extend credit. Litigation |
REGULATORY CAPITAL MATTERS
REGULATORY CAPITAL MATTERS | 9 Months Ended |
Sep. 30, 2023 | |
Regulatory Capital Matters [Abstract] | |
REGULATORY CAPITAL MATTERS | REGULATORY CAPITAL MATTERS The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Capital adequacy guidelines, and for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities and certain off balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings and other factors. Failure to meet minimum capital requirements can cause regulators to initiate actions that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. The final rules implementing Basel Committee on Banking Supervision's capital guideline for U.S. Banks (Basel III Rules) were fully phased in when the capital conservation buffer reached 2.5%. Management believes as of September 30, 2023 and December 31, 2022, the Company and the Bank met all capital adequacy requirements to which they were then subject. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If less than well capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. The following is a summary of the Company’s and the Bank’s actual and required capital ratios as of September 30, 2023 and December 31, 2022: Actual Minimum Required for Capital Adequacy Purposes Minimum Required Plus Capital Conservation Buffer To Be Categorized As Well-Capitalized Under Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) STELLAR BANCORP, INC. (Consolidated) September 30, 2023 Total Capital (to risk-weighted assets) $ 1,201,404 13.42 % $ 716,402 8.00 % $ 940,278 10.50 % N/A N/A Common Equity Tier 1 Capital (to risk-weighted assets) 997,556 11.14 % 402,976 4.50 % 626,852 7.00 % N/A N/A Tier 1 Capital (to risk-weighted assets) 1,007,454 11.25 % 537,302 6.00 % 761,177 8.50 % N/A N/A Tier 1 Leverage (to average tangible assets) 1,007,454 9.82 % 410,344 4.00 % 410,344 4.00 % N/A N/A December 31, 2022 Total Capital (to risk-weighted assets) $ 1,092,618 12.39 % $ 705,765 8.00 % $ 926,317 10.50 % N/A N/A Common Equity Tier 1 Capital (to risk-weighted assets) 885,652 10.04 % 396,993 4.50 % 617,545 7.00 % N/A N/A Tier 1 Capital (to risk-weighted assets) 895,520 10.15 % 529,324 6.00 % 749,876 8.50 % N/A N/A Tier 1 Leverage (to average tangible assets) 895,520 8.55 % 418,720 4.00 % 418,720 4.00 % N/A N/A STELLAR BANK September 30, 2023 Total Capital (to risk-weighted assets) $ 1,174,693 13.13 % $ 715,650 8.00 % $ 939,290 10.50 % $ 894,562 10.00 % Common Equity Tier 1 Capital (to risk-weighted assets) 1,040,743 11.63 % 402,553 4.50 % 626,193 7.00 % 581,465 6.50 % Tier 1 Capital (to risk-weighted assets) 1,040,743 11.63 % 536,737 6.00 % 760,378 8.50 % 715,650 8.00 % Tier 1 Leverage (to average tangible assets) 1,040,743 10.15 % 409,957 4.00 % 409,957 4.00 % 512,446 5.00 % December 31, 2022 Total Capital (to risk-weighted assets) $ 1,059,313 12.02 % $ 705,120 8.00 % $ 925,470 10.50 % $ 881,400 10.00 % Common Equity Tier 1 Capital (to risk-weighted assets) 921,714 10.46 % 396,630 4.50 % 616,980 7.00 % 572,910 6.50 % Tier 1 Capital (to risk-weighted assets) 921,714 10.46 % 528,840 6.00 % 749,190 8.50 % 705,120 8.00 % Tier 1 Leverage (to average tangible assets) 921,714 8.81 % 418,388 4.00 % 418,388 4.00 % 522,984 5.00 % |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE Diluted earnings per common share is computed using the weighted-average number of common shares determined for the basic earnings per common share computation plus the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock using the treasury stock method. Outstanding stock options issued by the Company represent the only dilutive effect reflected in diluted weighted average shares. Restricted shares and performance share awards are considered outstanding at the date of grant, accounted for as participating securities and included in basic and diluted weighted average common shares outstanding. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Amount Per Share Amount Per Share Amount Per Share Amount Per Share (Amounts in thousands, except per share data) Net income attributable to shareholders $ 30,908 $ 14,286 $ 103,231 $ 49,380 Basic: Weighted average shares outstanding 53,313 $ 0.58 28,286 $ 0.51 53,211 $ 1.94 28,679 $ 1.72 Diluted: Add incremental shares for: Dilutive effect of stock option exercises and performance share units 67 244 89 222 Total 53,380 $ 0.58 28,530 $ 0.50 53,300 $ 1.94 28,901 $ 1.71 There were 28,372 and no antidilutive shares as of September 30, 2023 and 2022, respectively. The basic and diluted weighted average number of shares issued and earnings per share have been retrospectively adjusted to reflect the equivalent number of shares issued to holders of Allegiance common stock in the Merger. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income | $ 30,908 | $ 14,286 | $ 103,231 | $ 49,380 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
NATURE OF OPERATIONS AND SUMM_2
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation -The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with guidance provided by the Securities and Exchange Commission (“SEC”). Accordingly, the condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows of the Company on a consolidated basis, and all such adjustments are of a normal recurring nature. Transactions between Stellar and the Bank have been eliminated. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. Operating results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. Merger of Equals -The merger of equals (the “Merger”) between Allegiance Bancshares, Inc. (“Allegiance”) and CBTX, Inc. (“CBTX”), was effective on October 1, 2022, with CBTX as the surviving corporation that was renamed Stellar Bancorp, Inc. At the effective time of the Merger, each outstanding share of Allegiance common stock, par value of $1.00 per share, was converted into the right to receive 1.4184 shares of common stock of the Company. Immediately following the Merger, CommunityBank of Texas, N.A. (“CommunityBank”), a national banking association and a wholly-owned subsidiary of CBTX, merged with and into Allegiance Bank, a wholly owned subsidiary of Allegiance, with Allegiance Bank as the surviving bank. Allegiance Bank changed its name to Stellar Bank on February 18, 2023 in connection with the operational conversion. The Merger constituted a business combination and was accounted for as a reverse merger using the acquisition method of accounting. As a result, Allegiance was the accounting acquirer and CBTX was the legal acquirer and the accounting acquiree. Accordingly, the historical financial statements of Allegiance became the historical financial statements of the combined company for all periods prior to October 1, 2022 (the “Merger Date”). In addition, the assets and liabilities of CBTX have been recorded at their estimated fair values and added to those of Allegiance as of October 1, 2022. The determination of fair value required management to make estimates about discount rates, expected future cash flows, market conditions and other future events that are subjective. The Company’s results of operations for the three and nine months ended September 30, 2022 reflect Allegiance's historical results and do not include the historical results of CBTX. The Merger had a significant impact on all aspects of the Company’s financial statements, and financial results for periods after the Merger are not comparable to financial results for periods prior to the Merger. The number of shares issued and outstanding, earnings per share, capital surplus, dividends paid and all references to share quantities of the Company have been retrospectively adjusted to reflect the equivalent number of shares issued to holders of |
Adoption of New Accounting Standards | Adoption of New Accounting StandardsASU 2022-02, "Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures." became effective for the Company for the first quarter of 2023 and did not have a significant impact on the Company’s financial statements. ASU 2022-02 eliminates the troubled debt restructuring ("TDR") accounting model for creditors that have already adopted Topic 326, which is commonly referred to as the current expected credit loss model. In lieu of the TDR accounting model, the Company applies the general loan modification guidance in Subtopic 310-20 to all loan modifications, including modifications made for borrowers experiencing financial difficulty on a prospective basis. Under the general loan modification guidance, a modification is treated as a new loan only if the following two conditions are met: (1) the terms of the new loan are at least as favorable to the lender as the terms for comparable loans to other customers with similar collection risks; and (2) modifications to the terms of the original loan are more than minor. If either condition is not met, the modification is accounted for as the continuation of the old loan with any effect of the modification treated as a prospective adjustment to the loan’s effective interest rate. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The table below summarizes the ownership of the combined company following the Merger, for each shareholder group, using shares of CBTX and Allegiance common stock outstanding at September 30, 2022 and Allegiance’s closing price on September 30, 2022 (shares in thousands). Stellar Bancorp, Inc. Ownership Number of CBTX Outstanding Shares Percentage Ownership CBTX shareholders 24,015 46.0 % Allegiance shareholders 28,137 54.0 % Total 52,152 100.0 % |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | Changes in the carrying amount of the Company’s goodwill and core deposit intangible assets were as follows: Goodwill Core Deposit Servicing Assets (In thousands) Balance as of December 31, 2021 $ 223,642 $ 14,658 $ — Acquired intangibles 273,618 138,150 329 Amortization — (9,283) (20) Balance as of December 31, 2022 497,260 143,525 309 Amortization — (20,581) (55) Measurement period adjustment 58 — — Decrease due to payoff of serviced loans — — (27) Balance as of September 30, 2023 $ 497,318 $ 122,944 $ 227 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated aggregate future amortization expense for core deposit intangible assets remaining as of September 30, 2023 is as follows (in thousands): Remaining 2023 $ 6,232 2024 24,166 2025 21,528 2026 18,896 Thereafter 52,122 Total $ 122,944 |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities | The amortized cost and fair value of investment securities were as follows: September 30, 2023 Amortized Gross Gross Fair (In thousands) Available for Sale U.S. government and agency securities $ 409,152 $ 129 $ (15,873) $ 393,408 Municipal securities 258,901 545 (40,330) 219,116 Agency mortgage-backed pass-through securities 378,573 22 (50,401) 328,194 Agency collateralized mortgage obligations 444,234 — (78,356) 365,878 Corporate bonds and other 122,812 29 (14,485) 108,356 Total $ 1,613,672 $ 725 $ (199,445) $ 1,414,952 December 31, 2022 Amortized Gross Gross Fair (In thousands) Available for Sale U.S. government and agency securities $ 433,417 $ 90 $ (19,227) $ 414,280 Municipal securities 580,076 4,319 (43,826) 540,569 Agency mortgage-backed pass-through securities 370,471 362 (42,032) 328,801 Agency collateralized mortgage obligations 461,760 — (67,630) 394,130 Corporate bonds and other 143,192 2 (13,388) 129,806 Total $ 1,988,916 $ 4,773 $ (186,103) $ 1,807,586 |
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of investment securities at September 30, 2023, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations at any time with or without call or prepayment penalties. Amortized Fair (In thousands) Due in one year or less $ 77,562 $ 77,026 Due after one year through five years 185,518 174,016 Due after five years through ten years 141,625 125,892 Due after ten years 386,160 343,946 Subtotal 790,865 720,880 Agency mortgage-backed pass-through securities and collateralized mortgage obligations 822,807 694,072 Total $ 1,613,672 $ 1,414,952 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | Securities with unrealized losses segregated by length of time such securities have been in a continuous loss position are as follows: September 30, 2023 Less than 12 Months More than 12 Months Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (In thousands) Available for Sale U.S. government and agency securities $ 111,573 $ (3,328) $ 261,872 $ (12,545) $ 373,445 $ (15,873) Municipal securities 18,062 (640) 166,011 (39,690) 184,073 (40,330) Agency mortgage-backed pass-through securities 79,012 (3,829) 248,186 (46,572) 327,197 (50,401) Agency collateralized mortgage obligations 13,881 (168) 351,996 (78,188) 365,878 (78,356) Corporate bonds and other 11,314 (1,249) 81,556 (13,236) 92,870 (14,485) Total $ 233,842 $ (9,214) $ 1,109,621 $ (190,231) $ 1,343,463 $ (199,445) December 31, 2022 Less than 12 Months More than 12 Months Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (In thousands) Available for Sale U.S. government and agency securities $ 99,732 $ (1,427) $ 305,256 $ (17,800) $ 404,988 $ (19,227) Municipal securities 228,192 (14,473) 134,640 (29,353) 362,832 (43,826) Agency mortgage-backed pass-through securities 95,291 (7,612) 199,836 (34,420) 295,127 (42,032) Agency collateralized mortgage obligations 117,147 (14,426) 276,925 (53,204) 394,072 (67,630) Corporate bonds and other 72,913 (5,704) 49,893 (7,684) 122,806 (13,388) Total $ 613,275 $ (43,642) $ 966,550 $ (142,461) $ 1,579,825 $ (186,103) |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The loan portfolio balances, net of unearned income and fees, consist of various types of loans primarily made to borrowers located within Texas and are segregated by class of loan as follows: September 30, 2023 December 31, 2022 (In thousands) Commercial and industrial $ 1,474,600 $ 1,455,795 Paycheck Protection Program (PPP) 5,968 13,226 Real estate: Commercial real estate (including multi-family residential) 4,076,606 3,931,480 Commercial real estate construction and land development 1,078,265 1,037,678 1-4 family residential (including home equity) 1,024,945 1,000,956 Residential construction 289,553 268,150 Consumer and other 54,591 47,466 Total loans 8,004,528 7,754,751 Allowance for credit losses on loans (93,575) (93,180) Loans, net $ 7,910,953 $ 7,661,571 |
Financing Receivable Credit Quality Indicators | The following table presents risk ratings by category and the gross charge-offs by primary loan type and year of origination or renewal. Generally, current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below. The following summarizes the amortized cost basis of loans by year of origination/renewal and credit quality indicator by class of loan as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Term Loans Amortized Cost Basis by Origination Year Revolving Revolving Loans Total Total 2023 2022 2021 2020 2019 Prior (In thousands) Commercial and industrial Pass $ 249,626 $ 299,874 $ 194,032 $ 47,217 $ 31,150 $ 23,062 $ 528,399 $ 63,180 $ 1,436,540 $ 1,400,191 Special Mention 2,786 403 508 438 861 — 3,054 102 8,152 18,982 Substandard 1,250 3,925 9,303 1,140 12,131 281 1,057 771 29,858 36,568 Doubtful — 50 — — — — — — 50 54 Total commercial and industrial loans $ 253,662 $ 304,252 $ 203,843 $ 48,795 $ 44,142 $ 23,343 $ 532,510 $ 64,053 $ 1,474,600 $ 1,455,795 Current period gross charge-offs $ — $ 130 $ 4,264 $ 456 $ 129 $ — $ 4,143 $ 531 $ 9,653 Paycheck Protection Program (PPP) Pass $ — $ — $ 3,218 $ 2,750 $ — $ — $ — $ — $ 5,968 $ 13,226 Special Mention — — — — — — — — — — Substandard — — — — — — — — — — Doubtful — — — — — — — — — — Total PPP loans $ — $ — $ 3,218 $ 2,750 $ — $ — $ — $ — $ 5,968 $ 13,226 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate (including multi-family residential) Pass $ 366,601 $ 1,327,957 $ 863,078 $ 467,867 $ 348,105 $ 480,980 $ 128,848 $ 11,052 $ 3,994,488 $ 3,844,951 Special Mention 934 508 7,756 8,409 1,716 12,414 305 — 32,042 18,183 Substandard 3,906 5,050 16,003 6,832 5,009 12,890 286 100 50,076 68,346 Doubtful — — — — — — — — — — Total commercial real estate (including multi-family residential) loans $ 371,441 $ 1,333,515 $ 886,837 $ 483,108 354830 $ 506,284 $ 129,439 $ 11,152 $ 4,076,606 $ 3,931,480 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate construction and land development Pass $ 211,096 $ 518,943 $ 227,438 $ 29,351 $ 9,689 $ 6,189 $ 58,463 $ 693 $ 1,061,862 $ 1,025,141 Special Mention — 2,222 2,062 139 — 202 — — 4,625 832 Substandard 22 1,016 10,406 88 80 17 — 149 11,778 11,705 Doubtful — — — — — — — — — — Total commercial real estate construction and land development $ 211,118 $ 522,181 $ 239,906 $ 29,578 $ 9,769 $ 6,408 $ 58,463 $ 842 $ 1,078,265 $ 1,037,678 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — September 30, 2023 December 31, 2022 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Revolving Loans 2023 2022 2021 2020 2019 Prior Total Total (In thousands) 1-4 family residential (including Pass $ 132,680 $ 252,160 $ 224,562 $ 116,514 $ 72,701 $ 90,921 $ 94,320 $ 10,248 $ 994,106 $ 969,396 Special Mention 499 569 — 1,996 333 195 98 — 3,690 3,714 Substandard 1,940 2,399 3,103 1,468 3,893 4,493 7,071 2,782 27,149 27,846 Doubtful — — — — — — — — — — Total 1-4 family residential (including home equity) $ 135,119 $ 255,128 $ 227,665 $ 119,978 $ 76,927 $ 95,609 $ 101,489 $ 13,030 $ 1,024,945 $ 1,000,956 Current period gross charge-offs $ — $ — $ — $ — $ — $ 23 $ — $ — $ 23 Residential construction Pass $ 116,508 $ 136,500 $ 6,341 $ 4,117 $ 658 $ 499 $ 21,710 $ — $ 286,333 $ 266,943 Special Mention — 634 — — — — — — 634 421 Substandard — 635 1,951 — — — — — 2,586 786 Doubtful — — — — — — — — — — Total residential construction $ 116,508 $ 137,769 $ 8,292 $ 4,117 $ 658 $ 499 $ 21,710 $ — $ 289,553 $ 268,150 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer and other Pass $ 23,489 $ 9,146 $ 4,130 $ 2,005 $ 676 $ 465 $ 13,192 $ 901 $ 54,004 $ 47,062 Special Mention — 26 — — — — 45 — 71 43 Substandard — 312 35 — 56 5 4 104 516 361 Doubtful — — — — — — — — — — Total consumer and other $ 23,489 $ 9,484 $ 4,165 $ 2,005 $ 732 $ 470 $ 13,241 $ 1,005 $ 54,591 $ 47,466 Current period gross charge-offs $ — $ 44 $ — $ — $ — $ — $ 1 $ — $ 45 Total loans Pass $ 1,100,000 $ 2,544,580 $ 1,522,799 $ 669,821 $ 462,979 $ 602,116 $ 844,932 $ 86,074 $ 7,833,301 $ 7,566,910 Special Mention 4,219 4,362 10,326 10,982 2,910 12,811 3,502 102 49,214 42,175 Substandard 7,118 13,337 40,801 9,528 21,169 17,686 8,418 3,906 121,963 145,612 Doubtful — 50 — — — — — — 50 54 Total loans $ 1,111,337 $ 2,562,329 $ 1,573,926 $ 690,331 $ 487,058 $ 632,613 $ 856,852 $ 90,082 $ 8,004,528 $ 7,754,751 Current period gross charge-offs $ — $ 174 $ 4,264 $ 456 $ 129 $ 23 $ 4,144 $ 531 $ 9,721 |
Past Due Financing Receivables | An aging analysis of the recorded investment in past due loans, segregated by class of loans, is included below. The Company defines recorded investment as the outstanding loan balances including net deferred loan fees, and excluding accrued interest receivable of $36.4 million and $34.1 million as of September 30, 2023 and December 31, 2022, respectively, due to immateriality. September 30, 2023 Loans Past Due and Still Accruing Nonaccrual Current Total 30-89 90 or More Total Past (In thousands) Commercial and industrial $ 3,535 $ — $ 3,535 $ 14,971 $ 1,456,094 $ 1,474,600 Paycheck Protection Program (PPP) 85 — 85 20 5,863 5,968 Real estate: Commercial real estate (including multi-family residential) 19,649 — 19,649 13,563 4,043,394 4,076,606 Commercial real estate construction and land development 4,405 — 4,405 170 1,073,690 1,078,265 1-4 family residential (including home equity) 4,742 — 4,742 8,442 1,011,761 1,024,945 Residential construction 3,389 — 3,389 635 285,529 289,553 Consumer and other 215 — 215 490 53,886 54,591 Total loans $ 36,020 $ — $ 36,020 $ 38,291 $ 7,930,217 $ 8,004,528 December 31, 2022 Loans Past Due and Still Accruing Nonaccrual Current Total 30-89 90 or More Total Past (In thousands) Commercial and industrial $ 1,591 $ — $ 1,591 $ 25,297 $ 1,428,907 $ 1,455,795 Paycheck Protection Program (PPP) 517 — 517 105 12,604 13,226 Real estate: Commercial real estate (including multi-family residential) 3,222 — 3,222 9,970 3,918,288 3,931,480 Commercial real estate construction and land development 851 — 851 — 1,036,827 1,037,678 1-4 family residential (including home equity) 3,385 — 3,385 9,404 988,167 1,000,956 Residential construction — — — — 268,150 268,150 Consumer and other 192 — 192 272 47,002 47,466 Total loans $ 9,758 $ — $ 9,758 $ 45,048 $ 7,699,945 $ 7,754,751 |
Allowance for Credit Losses on Financing Receivables | The following table presents the activity in the allowance for credit losses on loans by portfolio type for the three and nine months ended September 30, 2023 and 2022: Commercial and industrial Paycheck Protection Program (PPP) Commercial real estate (including multi-family residential) Commercial real estate construction and land development 1-4 family residential (including home equity) Residential construction Consumer and other Total (In thousands) Allowance for credit losses on loans: Three Months Ended Balance June 30, 2023 $ 38,505 $ — $ 38,963 $ 14,500 $ 4,757 $ 3,080 $ 390 $ 100,195 Provision for credit losses on loans 2,173 — 58 (791) 34 (221) 243 1,496 Charge-offs (8,169) — — — — — (7) (8,176) Recoveries 55 — 2 — — — 3 60 Net charge-offs (8,114) — 2 — — — (4) (8,116) Balance September 30, 2023 $ 32,564 $ — $ 39,023 $ 13,709 $ 4,791 $ 2,859 $ 629 $ 93,575 Nine Months Ended Balance December 31, 2022 $ 41,236 $ — $ 32,970 $ 14,121 $ 2,709 $ 1,796 $ 348 $ 93,180 Provision for credit losses on loans (143) — 6,037 (412) 2,096 1,063 298 8,939 Charge-offs (9,653) — — — (23) — (45) (9,721) Recoveries 1,124 — 16 — 9 — 28 1,177 Net charge-offs (8,529) — 16 — (14) — (17) (8,544) Balance September 30, 2023 $ 32,564 $ — $ 39,023 $ 13,709 $ 4,791 $ 2,859 $ 629 $ 93,575 Three Months Ended Balance June 30, 2022 $ 16,701 $ — $ 24,000 $ 7,399 $ 1,036 $ 1,048 $ 58 $ 50,242 Provision for credit losses on loans (1,091) — 1,606 952 (9) 188 14 1,660 Charge-offs (2) — (56) — — — (17) (75) Recoveries 319 — — — — — 1 320 Net recoveries 317 — (56) — — — (16) 245 Balance September 30, 2022 $ 15,927 $ — $ 25,550 $ 8,351 $ 1,027 $ 1,236 $ 56 $ 52,147 Nine Months Ended Balance December 31, 2021 $ 16,629 $ — $ 23,143 $ 6,263 $ 847 $ 975 $ 83 $ 47,940 Provision for credit losses on loans (464) — 2,740 2,096 180 261 37 4,850 Charge-offs (958) — (383) (63) — — (65) (1,469) Recoveries 720 — 50 55 — — 1 826 Net charge-offs (238) — (333) (8) — — (64) (643) Balance September 30, 2022 $ 15,927 $ — $ 25,550 $ 8,351 $ 1,027 $ 1,236 $ 56 $ 52,147 |
Summary of Amortized Cost Basis of Collateral Dependent Loans Individually Evaluated to Determine Expected Credit Losses | The following tables present the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses as of September 30, 2023 and December 31, 2022: September 30, 2023 Real Estate Business Assets Other Total (In thousands) Commercial and industrial $ — $ 7,476 $ — $ 7,476 Real estate: Commercial real estate (including multi-family residential) 3,411 — — 3,411 Commercial real estate construction and land development — — — 1-4 family residential (including home equity) — — — — Residential construction — — — — Consumer and other — — — — Total $ 3,411 $ 7,476 $ — $ 10,887 December 31, 2022 Real Estate Business Assets Other Total (In thousands) Commercial and industrial $ — $ 18,411 $ 30 $ 18,441 Real estate: Commercial real estate (including multi-family residential) 1,612 — — 1,612 Commercial real estate construction and land development — — — — 1-4 family residential (including home equity) 3,478 — — 3,478 Residential construction — — — — Consumer and other — — — — Total $ 5,090 $ 18,411 $ 30 $ 23,531 |
Summary of Nonaccrual Loans | The following tables present additional information regarding nonaccrual loans. No interest income was recognized on nonaccrual loans as of September 30, 2023 and December 31, 2022. September 30, 2023 Nonaccrual Loans with No Related Allowance Nonaccrual Loans with Related Allowance Total Nonaccrual Loans (In thousands) Commercial and industrial $ 10,337 $ 4,634 $ 14,971 Paycheck Protection Program (PPP) 20 — 20 Real estate: Commercial real estate (including multi-family residential) 10,820 2,743 13,563 Commercial real estate construction and land development 170 — 170 1-4 family residential (including home equity) 6,849 1,593 8,442 Residential construction 635 — 635 Consumer and other 81 409 490 Total loans $ 28,912 $ 9,379 $ 38,291 December 31, 2022 Nonaccrual Loans with No Related Allowance Nonaccrual Loans with Related Allowance Total Nonaccrual Loans (In thousands) Commercial and industrial $ 2,776 $ 22,521 $ 25,297 Paycheck Protection Program (PPP) 105 — 105 Real estate: Commercial real estate (including multi-family residential) 8,704 1,266 9,970 Commercial real estate construction and land development — — — 1-4 family residential (including home equity) 4,856 4,548 9,404 Residential construction — — — Consumer and other 94 178 272 Total loans $ 16,535 $ 28,513 $ 45,048 |
Troubled Debt Restructurings on Financing Receivables | The following tables present information regarding loans that were modified due to the borrowers experiencing financial difficulty during the three and nine months ended September 30, 2023: Three Months Ended September 30, 2023 Interest Rate Reduction Term Extension Payment Delay Principal forgiveness Combination Term Extension and Principal Forgiveness Combination Term Extension and Payment Delay Total (In thousands) Commercial and industrial $ — $ — $ — $ — $ — $ — $ — Real estate: Commercial real estate (including multi-family residential) — 1,890 — — — — 1,890 Commercial real estate construction and land development — — — — — — 1-4 family residential (including home equity) — 322 99 — — 71 492 Residential construction — — — — — — — Consumer and other — — — — — — — Total $ — $ 2,212 $ — $ — $ — $ 71 $ 2,382 Nine Months Ended September 30, 2023 Interest Rate Reduction Term Extension Payment Delay Principal forgiveness Combination Term Extension and Principal Forgiveness Combination Term Extension and Payment Delay Total (In thousands) Commercial and industrial $ 89 $ 2,185 $ — $ — $ — $ 260 $ 2,534 Real estate: Commercial real estate (including multi-family residential) — 2,670 — — — 1,703 4,373 Commercial real estate construction and land development — 6,850 — — — — 6,850 1-4 family residential (including home equity) — 1,037 99 — — 71 1,207 Residential construction — — — — — — — Consumer and other — 94 — — — — 94 Total $ 89 $ 12,836 $ 99 $ — $ — $ 2,034 $ 15,058 The following table summarizes, by loan portfolio, the financial effect of the Company's loan modifications for the three and nine months ended September 30, 2023: Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Weighted Average Interest Rate Reduction Weighted Average Term Extension Weighted Average Interest Rate Reduction Weighted Average Term Extension (months) (months) Commercial and industrial — % — 2.0 % 12 Real estate: Commercial real estate (including multi-family residential) — % 6 — % 9 Commercial real estate construction and land development — % — — % 12 1-4 family residential (including home equity) 1.5 % 24 1.5 % 16 Residential construction — % — — % — Consumer and other — % — — % 7 The following table summarizes loans that had a payment default within the past twelve months that were modified due to the borrowers experiencing financial difficulty during the three and nine months ended September 30, 2023: Interest Rate Reduction Term Extension Payment Delay Principal forgiveness (In thousands) Commercial and industrial $ 89 $ 670 $ — $ — Real estate: Commercial real estate (including multi-family residential) — — — — Commercial real estate construction and land development — — — — 1-4 family residential (including home equity) — 715 99 — Residential construction — — — — Consumer and other — — — — $ 89 $ 1,385 $ 99 $ — The following table presents information regarding loans modified in a troubled debt restructuring during the three and nine months ended September 30, 2022: Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Number of Contracts Pre-modifications of Outstanding Recorded Investment Post-modifications of Outstanding Recorded Investment Number of Contracts Pre-modifications of Outstanding Recorded Investment Post-modifications of Outstanding Recorded Investment (Dollars in thousands) Troubled Debt Restructurings Commercial and industrial 1 $ 224 $ 224 4 $ 768 $ 768 Real estate: Commercial real estate (including multi-family residential) — — — 4 1,207 1,207 Consumer and other 1 45 45 1 45 45 Total 2 $ 269 $ 269 9 $ 2,020 $ 2,020 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Supplemental Lease Information | Supplemental lease information at the dates indicated is as follows: September 30, 2023 December 31, 2022 (Dollars in thousands) Balance Sheet: Operating lease right of use asset classified as premises and equipment $ 20,483 $ 23,538 Operating lease liability classified as other liabilities $ 20,225 $ 23,136 Weighted average lease term, in years 7.91 8.18 Weighted average discount rate 4.14 % 4.00 % |
Summary of Lease Costs | Lease costs for the dates indicated is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Income Statement: Operating lease cost $ 1,885 $ 836 $ 5,280 $ 2,559 Short-term lease cost 8 — 21 — Total operating lease costs $ 1,893 $ 836 $ 5,301 $ 2,559 |
Maturity Analysis of Lease Liabilities | A maturity analysis of the Company’s lease liabilities is as follows: September 30, 2023 December 31, 2022 (In thousands) Lease payments due: Within one year $ 1,171 $ 4,634 After one but within two years 4,137 4,121 After two but within three years 3,681 3,684 After three but within four years 3,125 3,132 After four but within five years 2,914 2,918 After five years 9,279 9,303 Total lease payments 24,307 27,792 Less: discount on cash flows 4,082 4,656 Total lease liability $ 20,225 $ 23,136 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The carrying amounts and estimated fair values of financial instruments that are reported on the balance sheet are as follows: September 30, 2023 Estimated Fair Value Carrying Level 1 Level 2 Level 3 Total (In thousands) Financial assets Cash and cash equivalents $ 302,272 $ 302,272 $ — $ — $ 302,272 Available for sale securities 1,414,952 — 1,414,952 — 1,414,952 Loans held for investment, net of allowance 7,910,953 — — 7,615,073 7,615,073 Accrued interest receivable 43,536 176 6,947 36,413 43,536 Financial liabilities Deposits $ 8,686,621 $ — $ 8,677,026 $ — $ 8,677,026 Accrued interest payable 7,612 — 7,612 — 7,612 Borrowed funds 323,981 — 323,998 — 323,998 Subordinated debt 109,665 — 107,469 — 107,469 December 31, 2022 Estimated Fair Value Carrying Level 1 Level 2 Level 3 Total (In thousands) Financial assets Cash and cash equivalents $ 371,705 $ 371,705 $ — $ — $ 371,705 Available for sale securities 1,807,586 — 1,807,586 — 1,807,586 Loans held for investment, net of allowance 7,661,571 — — 7,555,602 7,555,602 Accrued interest receivable 44,743 25 10,585 34,133 44,743 Financial liabilities Deposits $ 9,267,632 $ — $ 9,256,141 $ — $ 9,256,141 Accrued interest payable 2,098 — 2,098 — 2,098 Borrowed funds 63,925 — 63,999 — 63,999 Subordinated debt 109,367 — 107,910 — 107,910 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present fair values for assets and liabilities measured at fair value on a recurring basis. There were no liabilities measured at fair value on a recurring basis as of September 30, 2023. September 30, 2023 Level 1 Level 2 Level 3 Total (In thousands) Financial assets Available for sale securities: U.S. government and agency securities $ — $ 393,408 $ — $ 393,408 Municipal securities — 219,116 — 219,116 Agency mortgage-backed pass-through securities — 328,194 — 328,194 Agency collateralized mortgage obligations — 365,878 — 365,878 Corporate bonds and other — 108,356 — 108,356 Interest rate swaps — — 10,218 10,218 Credit risk participation agreements — — 10 10 Total fair value of financial assets $ — $ 1,414,952 $ 10,228 $ 1,425,180 Financial liabilities Interest rate swaps $ — $ — $ 10,218 $ 10,218 Total fair value of financial liabilities $ — $ — $ 10,218 $ 10,218 December 31, 2022 Level 1 Level 2 Level 3 Total (In thousands) Financial assets Available for sale securities: U.S. government and agency securities $ — $ 414,280 $ — $ 414,280 Municipal securities — 540,569 — 540,569 Agency mortgage-backed pass-through securities — 328,801 — 328,801 Agency collateralized mortgage obligations — 394,130 — 394,130 Corporate bonds and other — 129,806 — 129,806 Interest rate swaps — — 9,263 9,263 Credit risk participation agreements — — 27 27 Total fair value of financial assets $ — $ 1,807,586 $ 9,290 $ 1,816,876 Financial liabilities Interest rate swaps $ — $ — $ 9,263 $ 9,263 Total fair value of financial liabilities $ — $ — $ 9,263 $ 9,263 |
Fair Value Measurements, Nonrecurring | Assets measured at fair value on a nonrecurring basis are summarized in the table below. There were no liabilities measured at fair value on a nonrecurring basis at September 30, 2023 and December 31, 2022. September 30, 2023 Level 1 Level 2 Level 3 (In thousands) Loans: Commercial and industrial $ — $ — $ 13,830 Commercial real estate (including multi-family residential) — — 7,706 Commercial real estate construction and land development — — 6,654 1-4 family residential (including home equity) — — 2,776 Consumer and other — — 88 Branch assets held for sale 5,852 — — $ 5,852 $ — $ 31,054 December 31, 2022 Level 1 Level 2 Level 3 (In thousands) Loans: Commercial and industrial $ — $ — $ 21,948 Commercial real estate (including multi-family residential) — — 11,566 1-4 family residential (including home equity) — — 2,883 Branch assets held for sale 5,165 — — $ 5,165 $ — $ 36,397 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Deposit Liabilities [Abstract] | |
Schedule of Maturities of Time Deposits | Scheduled maturities of time deposits for the next five years are as follows (in thousands): Within one year $ 1,399,265 After one but within two years 85,040 Over three years 19,586 Total $ 1,503,891 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives Not Designated as Hedging Instruments | Derivative instruments not designated as hedges outstanding as of September 30, 2023 were as follows (dollars in thousands): Weighted Average Notional Fair Maturity Classification Amounts Value Fixed Rate Floating Rate (Years) Interest rate swaps: Financial institutions Other assets $ 110,946 $ 9,758 3.25% - 6.25% SOFR CME 1M + 2.50% - 3.00% 4.74 Financial institutions Other assets 4,940 460 4.99% U.S. Prime 4.21 Customers Other liabilities 4,940 (460) 4.99% U.S. Prime 4.21 Customers Other liabilities 110,946 (9,758) 3.25% - 6.25% SOFR CME 1M + 2.50% - 3.00% 4.74 Credit risk participations: Financial institutions Other assets 20,958 10 3.50% - 5.40% SOFR CME 1M + 2.50% 7.58 Derivative instruments not designated as hedges outstanding as of December 31, 2022 were as follows (dollars in thousands): Weighted Average Notional Fair Maturity Classification Amounts Value Fixed Rate Floating Rate (Years) Interest rate swaps: Financial institutions Other assets $ 109,242 $ 8,856 3.25% - 5.58% SOFR CME 1M + 2.50% - 3.00% 5.49 Financial institutions Other assets 5,029 407 4.99% U.S. Prime 4.96 Customers Other liabilities 5,029 (407) 4.99% U.S. Prime 4.96 Customers Other liabilities 109,242 (8,856) 3.25% - 5.58% SOFR CME 1M + 2.50% 5.49 Credit risk participations: Financial institutions Other assets 13,028 2 3.50% LIBOR 1M + 2.50% 7.24 Financial institutions Other assets 8,485 25 5.35% - 5.40% SOFR CME 1M + 2.50% 9.97 |
SUBORDINATED DEBT (Tables)
SUBORDINATED DEBT (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Subordinated Borrowings [Abstract] | |
Schedule of Subordinated Borrowing | A summary of pertinent information related to the Company’s issues of junior subordinated debentures outstanding at September 30, 2023 is set forth in the table below: Description Issuance Date Trust Preferred Securities Outstanding Interest Rate Junior Subordinated Debt Owed to Trusts Maturity Date (1) (Dollars in thousands) Farmers & Merchants Capital Trust II November 13, 2003 $ 7,500 3-Month SOFR + 3.26% $ 7,732 November 8, 2033 Farmers & Merchants Capital Trust III June 30, 2005 3,500 3-Month SOFR + 2.06% 3,609 July 7, 2035 $ 11,341 (1) All debentures are currently callable. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The amount of the Company’s federal and state income tax expense is influenced by the amount of pre-tax income, the amount of tax-exempt income and the amount of other nondeductible items. Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Income tax expense $ 7,445 $ 3,406 $ 24,825 $ 11,310 Effective income tax rate 19.4 % 19.3 % 19.4 % 18.6 % |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of the activity in the stock option plans during the nine months ended September 30, 2023 is set forth below: Number of Weighted Weighted Aggregate (Shares in thousands) (In years) (Dollars in thousands) Options outstanding, January 1, 2023 368 $ 17.89 2.72 $ 4,256 Options granted — — Options exercised (49) 14.19 Options forfeited (36) 20.67 Options outstanding, September 30, 2023 283 $ 18.18 2.17 $ 1,036 Options vested and exercisable, September 30, 2023 283 $ 18.18 2.17 $ 1,036 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of the activity of the nonvested shares of restricted stock during the nine months ended September 30, 2023 is as follows: Number of Weighted (Shares in thousands) Nonvested share awards outstanding, January 1, 2023 501 $ 32.84 Share awards granted 262 25.67 Share awards vested (14) 25.99 Unvested share awards forfeited or cancelled (64) 31.03 Nonvested share awards outstanding, September 30, 2023 685 30.41 |
OFF-BALANCE SHEET ARRANGEMENT_2
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Fair Value, Off-balance Sheet Risks | The contractual amounts of financial instruments with off-balance sheet risk are as follows: September 30, 2023 December 31, 2022 Fixed Variable Fixed Variable (In thousands) Commitments to extend credit (1) $ 432,498 $ 1,454,648 $ 673,098 $ 1,686,627 Standby letters of credit 14,507 23,249 10,310 25,190 Total $ 447,005 $ 1,477,897 $ 683,408 $ 1,711,817 1) At September 30, 2023 and December 31, 2022, the Company had FHLB Letters of Credit in the amount of $1.22 billion and $1.08 billion, respectively, pledged as collateral for public and other deposits of state and local government agencies. For more information on FHLB borrowings, see Note 10 – Borrowings and Borrowing Capacity. |
REGULATORY CAPITAL MATTERS (Tab
REGULATORY CAPITAL MATTERS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Regulatory Capital Matters [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following is a summary of the Company’s and the Bank’s actual and required capital ratios as of September 30, 2023 and December 31, 2022: Actual Minimum Required for Capital Adequacy Purposes Minimum Required Plus Capital Conservation Buffer To Be Categorized As Well-Capitalized Under Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) STELLAR BANCORP, INC. (Consolidated) September 30, 2023 Total Capital (to risk-weighted assets) $ 1,201,404 13.42 % $ 716,402 8.00 % $ 940,278 10.50 % N/A N/A Common Equity Tier 1 Capital (to risk-weighted assets) 997,556 11.14 % 402,976 4.50 % 626,852 7.00 % N/A N/A Tier 1 Capital (to risk-weighted assets) 1,007,454 11.25 % 537,302 6.00 % 761,177 8.50 % N/A N/A Tier 1 Leverage (to average tangible assets) 1,007,454 9.82 % 410,344 4.00 % 410,344 4.00 % N/A N/A December 31, 2022 Total Capital (to risk-weighted assets) $ 1,092,618 12.39 % $ 705,765 8.00 % $ 926,317 10.50 % N/A N/A Common Equity Tier 1 Capital (to risk-weighted assets) 885,652 10.04 % 396,993 4.50 % 617,545 7.00 % N/A N/A Tier 1 Capital (to risk-weighted assets) 895,520 10.15 % 529,324 6.00 % 749,876 8.50 % N/A N/A Tier 1 Leverage (to average tangible assets) 895,520 8.55 % 418,720 4.00 % 418,720 4.00 % N/A N/A STELLAR BANK September 30, 2023 Total Capital (to risk-weighted assets) $ 1,174,693 13.13 % $ 715,650 8.00 % $ 939,290 10.50 % $ 894,562 10.00 % Common Equity Tier 1 Capital (to risk-weighted assets) 1,040,743 11.63 % 402,553 4.50 % 626,193 7.00 % 581,465 6.50 % Tier 1 Capital (to risk-weighted assets) 1,040,743 11.63 % 536,737 6.00 % 760,378 8.50 % 715,650 8.00 % Tier 1 Leverage (to average tangible assets) 1,040,743 10.15 % 409,957 4.00 % 409,957 4.00 % 512,446 5.00 % December 31, 2022 Total Capital (to risk-weighted assets) $ 1,059,313 12.02 % $ 705,120 8.00 % $ 925,470 10.50 % $ 881,400 10.00 % Common Equity Tier 1 Capital (to risk-weighted assets) 921,714 10.46 % 396,630 4.50 % 616,980 7.00 % 572,910 6.50 % Tier 1 Capital (to risk-weighted assets) 921,714 10.46 % 528,840 6.00 % 749,190 8.50 % 705,120 8.00 % Tier 1 Leverage (to average tangible assets) 921,714 8.81 % 418,388 4.00 % 418,388 4.00 % 522,984 5.00 % |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Amount Per Share Amount Per Share Amount Per Share Amount Per Share (Amounts in thousands, except per share data) Net income attributable to shareholders $ 30,908 $ 14,286 $ 103,231 $ 49,380 Basic: Weighted average shares outstanding 53,313 $ 0.58 28,286 $ 0.51 53,211 $ 1.94 28,679 $ 1.72 Diluted: Add incremental shares for: Dilutive effect of stock option exercises and performance share units 67 244 89 222 Total 53,380 $ 0.58 28,530 $ 0.50 53,300 $ 1.94 28,901 $ 1.71 |
NATURE OF OPERATIONS AND SUMM_3
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES (Details) | Oct. 01, 2022 $ / shares shares | Sep. 30, 2023 office $ / shares | Dec. 31, 2022 $ / shares |
New Accounting Pronouncement Early Adoption [Line Items] | |||
Number of offices in which entity operates | 55 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 1 | $ 0.01 | $ 0.01 |
Merger, shares consideration received (in shares) | shares | 1.4184 | ||
Houston Metropolitan | |||
New Accounting Pronouncement Early Adoption [Line Items] | |||
Number of offices in which entity operates | 38 | ||
Beaumont | |||
New Accounting Pronouncement Early Adoption [Line Items] | |||
Number of offices in which entity operates | 16 | ||
Dallas | |||
New Accounting Pronouncement Early Adoption [Line Items] | |||
Number of offices in which entity operates | 1 |
ACQUISITIONS - Schedule of Hypo
ACQUISITIONS - Schedule of Hypothetical Shares Issued In Merger (Details) - CBTX - CBTX | Sep. 30, 2022 shares |
Business Acquisition [Line Items] | |
Number of shares issued in acquisition (in shares) | 52,152,000 |
Percentage Ownership | 100% |
CBTX shareholders | |
Business Acquisition [Line Items] | |
Number of shares issued in acquisition (in shares) | 24,015,000 |
Percentage Ownership | 46% |
Allegiance shareholders | |
Business Acquisition [Line Items] | |
Number of shares issued in acquisition (in shares) | 28,137,000 |
Percentage Ownership | 54% |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Business Acquisition [Line Items] | |||||
Merger, shares consideration received (in shares) | 1.4184 | ||||
Acquisition and merger-related expenses | $ 3,421 | $ 10,551 | $ 12,483 | $ 12,669 | |
CBTX | |||||
Business Acquisition [Line Items] | |||||
Acquisition and merger-related expenses | $ 3,400 | $ 10,600 | $ 12,500 | $ 12,700 | |
CBTX | Allegiance shareholders | |||||
Business Acquisition [Line Items] | |||||
Number of shares issued in acquisition (in shares) | 28,100,000 | ||||
Percentage ownership | 54% |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in Carrying Amount of Goodwill and Intangibles (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill | |||||
Balance, beginning | $ 497,260,000 | $ 497,260,000 | $ 223,642,000 | ||
Acquired intangibles | 273,618,000 | ||||
Measurement period adjustment | 58,000 | ||||
Balance, ending | $ 497,318,000 | 497,318,000 | |||
Intangible Assets | |||||
Balance, beginning | 143,525,000 | 143,525,000 | |||
Amortization | (6,876,000) | $ (750,000) | (20,636,000) | (2,252,000) | |
Balance, ending | 122,944,000 | 122,944,000 | |||
Core Deposit Intangibles | |||||
Intangible Assets | |||||
Balance, beginning | 143,525,000 | 143,525,000 | 14,658,000 | ||
Acquired intangibles | 138,150,000 | ||||
Amortization | (9,283,000) | (20,581,000) | |||
Measurement period adjustment | 0 | ||||
Balance, ending | 122,944,000 | 122,944,000 | |||
Servicing Assets | |||||
Intangible Assets | |||||
Balance, beginning | 309,000 | 309,000 | $ 0 | ||
Acquired intangibles | 329,000 | ||||
Amortization | $ (20,000) | (55,000) | |||
Measurement period adjustment | 0 | ||||
Decrease due to payoff of serviced loans | (27,000) | ||||
Balance, ending | $ 227,000 | $ 227,000 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Measurement period adjustment | $ 58 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Estimated Aggregate Future Amortization Expense for Core Deposit Intangibles (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remaining 2023 | $ 6,232 | |
2024 | 24,166 | |
2025 | 21,528 | |
2026 | 18,896 | |
Thereafter | 52,122 | |
Total | $ 122,944 | $ 143,525 |
SECURITIES - Amortized Cost and
SECURITIES - Amortized Cost and Fair Value of Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,613,672 | $ 1,988,916 |
Gross Unrealized Gains | 725 | 4,773 |
Gross Unrealized Losses | (199,445) | (186,103) |
Fair Value | 1,414,952 | 1,807,586 |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 409,152 | 433,417 |
Gross Unrealized Gains | 129 | 90 |
Gross Unrealized Losses | (15,873) | (19,227) |
Fair Value | 393,408 | 414,280 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 258,901 | 580,076 |
Gross Unrealized Gains | 545 | 4,319 |
Gross Unrealized Losses | (40,330) | (43,826) |
Fair Value | 219,116 | 540,569 |
Agency mortgage-backed pass-through securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 378,573 | 370,471 |
Gross Unrealized Gains | 22 | 362 |
Gross Unrealized Losses | (50,401) | (42,032) |
Fair Value | 328,194 | 328,801 |
Agency collateralized mortgage obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 444,234 | 461,760 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (78,356) | (67,630) |
Fair Value | 365,878 | 394,130 |
Corporate bonds and other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 122,812 | 143,192 |
Gross Unrealized Gains | 29 | 2 |
Gross Unrealized Losses | (14,485) | (13,388) |
Fair Value | $ 108,356 | $ 129,806 |
SECURITIES - Amortized Cost a_2
SECURITIES - Amortized Cost and Fair Value of Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due in one year or less | $ 77,562 | |
Due after one year through five years | 185,518 | |
Due after five years through ten years | 141,625 | |
Due after ten years | 386,160 | |
Subtotal | 790,865 | |
Agency mortgage-backed pass-through securities and collateralized mortgage obligations | 822,807 | |
Amortized Cost | 1,613,672 | $ 1,988,916 |
Fair Value | ||
Due in one year or less | 77,026 | |
Due after one year through five years | 174,016 | |
Due after five years through ten years | 125,892 | |
Due after ten years | 343,946 | |
Subtotal | 720,880 | |
Agency mortgage-backed pass-through securities and collateralized mortgage obligations | 694,072 | |
Fair Value | $ 1,414,952 | $ 1,807,586 |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales of available for sale securities | $ 320,500,000 | $ 12,100,000 | |
Realized gains | 234,000 | $ 42,000 | |
Security owned and pledged as collateral, associated liabilities, fair value | $ 711,800,000 | $ 978,900,000 |
SECURITIES - Securities in a Co
SECURITIES - Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | $ 233,842 | $ 613,275 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (9,214) | (43,642) |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 1,109,621 | 966,550 |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | (190,231) | (142,461) |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 1,343,463 | 1,579,825 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (199,445) | (186,103) |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | 111,573 | 99,732 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (3,328) | (1,427) |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 261,872 | 305,256 |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | (12,545) | (17,800) |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 373,445 | 404,988 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (15,873) | (19,227) |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | 18,062 | 228,192 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (640) | (14,473) |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 166,011 | 134,640 |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | (39,690) | (29,353) |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 184,073 | 362,832 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (40,330) | (43,826) |
Agency mortgage-backed pass-through securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | 79,012 | 95,291 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (3,829) | (7,612) |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 248,186 | 199,836 |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | (46,572) | (34,420) |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 327,197 | 295,127 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (50,401) | (42,032) |
Agency collateralized mortgage obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | 13,881 | 117,147 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (168) | (14,426) |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 351,996 | 276,925 |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | (78,188) | (53,204) |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 365,878 | 394,072 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (78,356) | (67,630) |
Corporate bonds and other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | 11,314 | 72,913 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (1,249) | (5,704) |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 81,556 | 49,893 |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | (13,236) | (7,684) |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 92,870 | 122,806 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | $ (14,485) | $ (13,388) |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loan Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for investment | $ 8,004,528 | $ 7,754,751 | ||||
Allowance for credit losses on loans | (93,575) | $ (100,195) | (93,180) | $ (52,147) | $ (50,242) | $ (47,940) |
Loans, net | 7,910,953 | 7,661,571 | ||||
Commercial and industrial | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for investment | 1,474,600 | 1,455,795 | ||||
Allowance for credit losses on loans | (32,564) | (38,505) | (41,236) | (15,927) | (16,701) | (16,629) |
Paycheck Protection Program (PPP) | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for investment | 5,968 | 13,226 | ||||
Allowance for credit losses on loans | 0 | 0 | 0 | 0 | 0 | 0 |
Real estate: | Commercial real estate (including multi-family residential) | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for investment | 4,076,606 | 3,931,480 | ||||
Allowance for credit losses on loans | (39,023) | (38,963) | (32,970) | (25,550) | (24,000) | (23,143) |
Real estate: | Commercial real estate construction and land development | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for investment | 1,078,265 | 1,037,678 | ||||
Allowance for credit losses on loans | (13,709) | (14,500) | (14,121) | (8,351) | (7,399) | (6,263) |
Real estate: | 1-4 family residential (including home equity) | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for investment | 1,024,945 | 1,000,956 | ||||
Allowance for credit losses on loans | (4,791) | (4,757) | (2,709) | (1,027) | (1,036) | (847) |
Real estate: | Residential construction | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for investment | 289,553 | 268,150 | ||||
Allowance for credit losses on loans | (2,859) | (3,080) | (1,796) | (1,236) | (1,048) | (975) |
Consumer and other | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for investment | 54,591 | 47,466 | ||||
Allowance for credit losses on loans | $ (629) | $ (390) | $ (348) | $ (56) | $ (58) | $ (83) |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2021 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||
Accrued interest receivable | $ 36,400,000 | $ 36,400,000 | $ 34,100,000 | |||||
Less: allowance for credit losses on loans | 93,575,000 | $ 52,147,000 | 93,575,000 | $ 52,147,000 | 93,180,000 | $ 100,195,000 | $ 50,242,000 | $ 47,940,000 |
Provision (reversal) for credit losses on loans | 1,496,000 | 1,660,000 | 8,939,000 | 4,850,000 | ||||
Non accrual loans interest income | $ 0 | 0 | ||||||
Concessions granted, percent to loan portfolio (less than) | 1% | |||||||
Unfunded Loan Commitment | ||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||
Less: allowance for credit losses on loans | 10,900,000 | $ 10,900,000 | $ 12,000,000 | |||||
Provision (reversal) for credit losses on loans | $ 818,000 | $ 302,000 | $ 1,000,000 | $ 1,100,000 |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Aging Analysis of the Recorded Investment in Past Due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | $ 8,004,528 | $ 7,754,751 |
Nonaccrual Loans | 38,291 | 45,048 |
30-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 36,020 | 9,758 |
90 or More Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 0 | 0 |
Total Past Due Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 36,020 | 9,758 |
Current Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 7,930,217 | 7,699,945 |
Commercial and industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 1,474,600 | 1,455,795 |
Nonaccrual Loans | 14,971 | 25,297 |
Commercial and industrial | 30-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 3,535 | 1,591 |
Commercial and industrial | 90 or More Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 0 | 0 |
Commercial and industrial | Total Past Due Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 3,535 | 1,591 |
Commercial and industrial | Current Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 1,456,094 | 1,428,907 |
Paycheck Protection Program (PPP) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 5,968 | 13,226 |
Nonaccrual Loans | 20 | 105 |
Paycheck Protection Program (PPP) | 30-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 85 | 517 |
Paycheck Protection Program (PPP) | 90 or More Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 0 | 0 |
Paycheck Protection Program (PPP) | Total Past Due Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 85 | 517 |
Paycheck Protection Program (PPP) | Current Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 5,863 | 12,604 |
Real estate: | Commercial real estate (including multi-family residential) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 4,076,606 | 3,931,480 |
Nonaccrual Loans | 13,563 | 9,970 |
Real estate: | Commercial real estate (including multi-family residential) | 30-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 19,649 | 3,222 |
Real estate: | Commercial real estate (including multi-family residential) | 90 or More Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 0 | 0 |
Real estate: | Commercial real estate (including multi-family residential) | Total Past Due Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 19,649 | 3,222 |
Real estate: | Commercial real estate (including multi-family residential) | Current Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 4,043,394 | 3,918,288 |
Real estate: | Commercial real estate construction and land development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 1,078,265 | 1,037,678 |
Nonaccrual Loans | 170 | 0 |
Real estate: | Commercial real estate construction and land development | 30-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 4,405 | 851 |
Real estate: | Commercial real estate construction and land development | 90 or More Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 0 | 0 |
Real estate: | Commercial real estate construction and land development | Total Past Due Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 4,405 | 851 |
Real estate: | Commercial real estate construction and land development | Current Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 1,073,690 | 1,036,827 |
Real estate: | 1-4 family residential (including home equity) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 1,024,945 | 1,000,956 |
Nonaccrual Loans | 8,442 | 9,404 |
Real estate: | 1-4 family residential (including home equity) | 30-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 4,742 | 3,385 |
Real estate: | 1-4 family residential (including home equity) | 90 or More Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 0 | 0 |
Real estate: | 1-4 family residential (including home equity) | Total Past Due Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 4,742 | 3,385 |
Real estate: | 1-4 family residential (including home equity) | Current Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 1,011,761 | 988,167 |
Real estate: | Residential construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 289,553 | 268,150 |
Nonaccrual Loans | 635 | 0 |
Real estate: | Residential construction | 30-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 3,389 | 0 |
Real estate: | Residential construction | 90 or More Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 0 | 0 |
Real estate: | Residential construction | Total Past Due Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 3,389 | 0 |
Real estate: | Residential construction | Current Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 285,529 | 268,150 |
Consumer and other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 54,591 | 47,466 |
Nonaccrual Loans | 490 | 272 |
Consumer and other | 30-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 215 | 192 |
Consumer and other | 90 or More Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 0 | 0 |
Consumer and other | Total Past Due Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 215 | 192 |
Consumer and other | Current Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | $ 53,886 | $ 47,002 |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Risk Ratings by Category of Loans (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | $ 1,111,337,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 2,562,329,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 1,573,926,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 690,331,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 487,058,000 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 632,613,000 | |
Revolving Loans | 856,852,000 | |
Revolving Loans Converted to Term Loans | 90,082,000 | |
Total loans | 8,004,528,000 | $ 7,754,751,000 |
Current period gross charge-offs | ||
Origination Year, 2023 | 0 | |
Origination Year, 2022 | 174,000 | |
Origination Year, 2021 | 4,264,000 | |
Origination Year, 2020 | 456,000 | |
Origination Year, 2019 | 129,000 | |
Origination Year, Prior | 23,000 | |
Revolving Loans | 4,144,000 | |
Revolving Loans Converted to Term Loans | 531,000 | |
Current-period gross charge-offs, Total | 9,721,000 | |
Pass | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 1,100,000,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 2,544,580,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 1,522,799,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 669,821,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 462,979,000 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 602,116,000 | |
Revolving Loans | 844,932,000 | |
Revolving Loans Converted to Term Loans | 86,074,000 | |
Total loans | 7,833,301,000 | 7,566,910,000 |
Special Mention | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 4,219,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 4,362,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 10,326,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 10,982,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 2,910,000 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 12,811,000 | |
Revolving Loans | 3,502,000 | |
Revolving Loans Converted to Term Loans | 102,000 | |
Total loans | 49,214,000 | 42,175,000 |
Substandard | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 7,118,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 13,337,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 40,801,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 9,528,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 21,169,000 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 17,686,000 | |
Revolving Loans | 8,418,000 | |
Revolving Loans Converted to Term Loans | 3,906,000 | |
Total loans | 121,963,000 | 145,612,000 |
Doubtful | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 50,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 50,000 | 54,000 |
Commercial and industrial | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 253,662,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 304,252,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 203,843,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 48,795,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 44,142,000 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 23,343,000 | |
Revolving Loans | 532,510,000 | |
Revolving Loans Converted to Term Loans | 64,053,000 | |
Total loans | 1,474,600,000 | 1,455,795,000 |
Current period gross charge-offs | ||
Origination Year, 2023 | 0 | |
Origination Year, 2022 | 130,000 | |
Origination Year, 2021 | 4,264,000 | |
Origination Year, 2020 | 456,000 | |
Origination Year, 2019 | 129,000 | |
Origination Year, Prior | 0 | |
Revolving Loans | 4,143,000 | |
Revolving Loans Converted to Term Loans | 531,000 | |
Current-period gross charge-offs, Total | 9,653,000 | |
Commercial and industrial | Pass | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 249,626,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 299,874,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 194,032,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 47,217,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 31,150,000 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 23,062,000 | |
Revolving Loans | 528,399,000 | |
Revolving Loans Converted to Term Loans | 63,180,000 | |
Total loans | 1,436,540,000 | 1,400,191,000 |
Commercial and industrial | Special Mention | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 2,786,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 403,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 508,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 438,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 861,000 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 0 | |
Revolving Loans | 3,054,000 | |
Revolving Loans Converted to Term Loans | 102,000 | |
Total loans | 8,152,000 | 18,982,000 |
Commercial and industrial | Substandard | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 1,250,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 3,925,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 9,303,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 1,140,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 12,131,000 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 281,000 | |
Revolving Loans | 1,057,000 | |
Revolving Loans Converted to Term Loans | 771,000 | |
Total loans | 29,858,000 | 36,568,000 |
Commercial and industrial | Doubtful | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 50,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 50,000 | 54,000 |
Paycheck Protection Program (PPP) | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 3,218,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 2,750,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 5,968,000 | 13,226,000 |
Current period gross charge-offs | ||
Origination Year, 2023 | 0 | |
Origination Year, 2022 | 0 | |
Origination Year, 2021 | 0 | |
Origination Year, 2020 | 0 | |
Origination Year, 2019 | 0 | |
Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Current-period gross charge-offs, Total | 0 | |
Paycheck Protection Program (PPP) | Pass | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 3,218,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 2,750,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 5,968,000 | 13,226,000 |
Paycheck Protection Program (PPP) | Special Mention | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 0 | 0 |
Paycheck Protection Program (PPP) | Substandard | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 0 | 0 |
Paycheck Protection Program (PPP) | Doubtful | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 0 | 0 |
Real estate: | Commercial real estate (including multi-family residential) | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 371,441,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 1,333,515,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 886,837,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 483,108,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 354,830,000 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 506,284,000 | |
Revolving Loans | 129,439,000 | |
Revolving Loans Converted to Term Loans | 11,152,000 | |
Total loans | 4,076,606,000 | 3,931,480,000 |
Current period gross charge-offs | ||
Origination Year, 2023 | 0 | |
Origination Year, 2022 | 0 | |
Origination Year, 2021 | 0 | |
Origination Year, 2020 | 0 | |
Origination Year, 2019 | 0 | |
Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Current-period gross charge-offs, Total | 0 | |
Real estate: | Commercial real estate (including multi-family residential) | Pass | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 366,601,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 1,327,957,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 863,078,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 467,867,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 348,105,000 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 480,980,000 | |
Revolving Loans | 128,848,000 | |
Revolving Loans Converted to Term Loans | 11,052,000 | |
Total loans | 3,994,488,000 | 3,844,951,000 |
Real estate: | Commercial real estate (including multi-family residential) | Special Mention | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 934,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 508,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 7,756,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 8,409,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 1,716,000 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 12,414,000 | |
Revolving Loans | 305,000 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 32,042,000 | 18,183,000 |
Real estate: | Commercial real estate (including multi-family residential) | Substandard | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 3,906,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 5,050,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 16,003,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 6,832,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 5,009,000 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 12,890,000 | |
Revolving Loans | 286,000 | |
Revolving Loans Converted to Term Loans | 100,000 | |
Total loans | 50,076,000 | 68,346,000 |
Real estate: | Commercial real estate (including multi-family residential) | Doubtful | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 0 | 0 |
Real estate: | Commercial real estate construction and land development | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 211,118,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 522,181,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 239,906,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 29,578,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 9,769,000 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 6,408,000 | |
Revolving Loans | 58,463,000 | |
Revolving Loans Converted to Term Loans | 842,000 | |
Total loans | 1,078,265,000 | 1,037,678,000 |
Current period gross charge-offs | ||
Origination Year, 2023 | 0 | |
Origination Year, 2022 | 0 | |
Origination Year, 2021 | 0 | |
Origination Year, 2020 | 0 | |
Origination Year, 2019 | 0 | |
Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Current-period gross charge-offs, Total | 0 | |
Real estate: | Commercial real estate construction and land development | Pass | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 211,096,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 518,943,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 227,438,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 29,351,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 9,689,000 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 6,189,000 | |
Revolving Loans | 58,463,000 | |
Revolving Loans Converted to Term Loans | 693,000 | |
Total loans | 1,061,862,000 | 1,025,141,000 |
Real estate: | Commercial real estate construction and land development | Special Mention | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 2,222,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 2,062,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 139,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 202,000 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 4,625,000 | 832,000 |
Real estate: | Commercial real estate construction and land development | Substandard | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 22,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 1,016,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 10,406,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 88,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 80,000 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 17,000 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 149,000 | |
Total loans | 11,778,000 | 11,705,000 |
Real estate: | Commercial real estate construction and land development | Doubtful | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 0 | 0 |
Real estate: | 1-4 family residential (including home equity) | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 135,119,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 255,128,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 227,665,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 119,978,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 76,927,000 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 95,609,000 | |
Revolving Loans | 101,489,000 | |
Revolving Loans Converted to Term Loans | 13,030,000 | |
Total loans | 1,024,945,000 | 1,000,956,000 |
Current period gross charge-offs | ||
Origination Year, 2023 | 0 | |
Origination Year, 2022 | 0 | |
Origination Year, 2021 | 0 | |
Origination Year, 2020 | 0 | |
Origination Year, 2019 | 0 | |
Origination Year, Prior | 23,000 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Current-period gross charge-offs, Total | 23,000 | |
Real estate: | 1-4 family residential (including home equity) | Pass | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 132,680,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 252,160,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 224,562,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 116,514,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 72,701,000 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 90,921,000 | |
Revolving Loans | 94,320,000 | |
Revolving Loans Converted to Term Loans | 10,248,000 | |
Total loans | 994,106,000 | 969,396,000 |
Real estate: | 1-4 family residential (including home equity) | Special Mention | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 499,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 569,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 1,996,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 333,000 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 195,000 | |
Revolving Loans | 98,000 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 3,690,000 | 3,714,000 |
Real estate: | 1-4 family residential (including home equity) | Substandard | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 1,940,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 2,399,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 3,103,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 1,468,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 3,893,000 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 4,493,000 | |
Revolving Loans | 7,071,000 | |
Revolving Loans Converted to Term Loans | 2,782,000 | |
Total loans | 27,149,000 | 27,846,000 |
Real estate: | 1-4 family residential (including home equity) | Doubtful | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 0 | 0 |
Real estate: | Residential construction | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 116,508,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 137,769,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 8,292,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 4,117,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 658,000 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 499,000 | |
Revolving Loans | 21,710,000 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 289,553,000 | 268,150,000 |
Current period gross charge-offs | ||
Origination Year, 2023 | 0 | |
Origination Year, 2022 | 0 | |
Origination Year, 2021 | 0 | |
Origination Year, 2020 | 0 | |
Origination Year, 2019 | 0 | |
Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Current-period gross charge-offs, Total | 0 | |
Real estate: | Residential construction | Pass | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 116,508,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 136,500,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 6,341,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 4,117,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 658,000 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 499,000 | |
Revolving Loans | 21,710,000 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 286,333,000 | 266,943,000 |
Real estate: | Residential construction | Special Mention | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 634,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 634,000 | 421,000 |
Real estate: | Residential construction | Substandard | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 635,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 1,951,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 2,586,000 | 786,000 |
Real estate: | Residential construction | Doubtful | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 0 | 0 |
Consumer and other | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 23,489,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 9,484,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 4,165,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 2,005,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 732,000 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 470,000 | |
Revolving Loans | 13,241,000 | |
Revolving Loans Converted to Term Loans | 1,005,000 | |
Total loans | 54,591,000 | 47,466,000 |
Current period gross charge-offs | ||
Origination Year, 2023 | 0 | |
Origination Year, 2022 | 44,000 | |
Origination Year, 2021 | 0 | |
Origination Year, 2020 | 0 | |
Origination Year, 2019 | 0 | |
Origination Year, Prior | 0 | |
Revolving Loans | 1,000 | |
Revolving Loans Converted to Term Loans | 0 | |
Current-period gross charge-offs, Total | 45,000 | |
Consumer and other | Pass | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 23,489,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 9,146,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 4,130,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 2,005,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 676,000 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 465,000 | |
Revolving Loans | 13,192,000 | |
Revolving Loans Converted to Term Loans | 901,000 | |
Total loans | 54,004,000 | 47,062,000 |
Consumer and other | Special Mention | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 26,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 0 | |
Revolving Loans | 45,000 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | 71,000 | 43,000 |
Consumer and other | Substandard | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 312,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 35,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 56,000 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 5,000 | |
Revolving Loans | 4,000 | |
Revolving Loans Converted to Term Loans | 104,000 | |
Total loans | 516,000 | 361,000 |
Consumer and other | Doubtful | ||
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total loans | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Allowance for credit losses on loans: | ||||
Balance, beginning of period | $ 100,195 | $ 50,242 | $ 93,180 | $ 47,940 |
Provision for credit losses on loans | 1,496 | 1,660 | 8,939 | 4,850 |
Charge-offs | (8,176) | (75) | (9,721) | (1,469) |
Recoveries | 60 | 320 | 1,177 | 826 |
Net charge-offs | (8,116) | 245 | (8,544) | (643) |
Balance, end of period | 93,575 | 52,147 | 93,575 | 52,147 |
Commercial and industrial | ||||
Allowance for credit losses on loans: | ||||
Balance, beginning of period | 38,505 | 16,701 | 41,236 | 16,629 |
Provision for credit losses on loans | 2,173 | (1,091) | (143) | (464) |
Charge-offs | (8,169) | (2) | (9,653) | (958) |
Recoveries | 55 | 319 | 1,124 | 720 |
Net charge-offs | (8,114) | 317 | (8,529) | (238) |
Balance, end of period | 32,564 | 15,927 | 32,564 | 15,927 |
Paycheck Protection Program (PPP) | ||||
Allowance for credit losses on loans: | ||||
Balance, beginning of period | 0 | 0 | 0 | 0 |
Provision for credit losses on loans | 0 | 0 | 0 | 0 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Net charge-offs | 0 | 0 | 0 | 0 |
Balance, end of period | 0 | 0 | 0 | 0 |
Real estate: | Commercial real estate (including multi-family residential) | ||||
Allowance for credit losses on loans: | ||||
Balance, beginning of period | 38,963 | 24,000 | 32,970 | 23,143 |
Provision for credit losses on loans | 58 | 1,606 | 6,037 | 2,740 |
Charge-offs | 0 | (56) | 0 | (383) |
Recoveries | 2 | 0 | 16 | 50 |
Net charge-offs | 2 | (56) | 16 | (333) |
Balance, end of period | 39,023 | 25,550 | 39,023 | 25,550 |
Real estate: | Commercial real estate construction and land development | ||||
Allowance for credit losses on loans: | ||||
Balance, beginning of period | 14,500 | 7,399 | 14,121 | 6,263 |
Provision for credit losses on loans | (791) | 952 | (412) | 2,096 |
Charge-offs | 0 | 0 | 0 | (63) |
Recoveries | 0 | 0 | 0 | 55 |
Net charge-offs | 0 | 0 | 0 | (8) |
Balance, end of period | 13,709 | 8,351 | 13,709 | 8,351 |
Real estate: | 1-4 family residential (including home equity) | ||||
Allowance for credit losses on loans: | ||||
Balance, beginning of period | 4,757 | 1,036 | 2,709 | 847 |
Provision for credit losses on loans | 34 | (9) | 2,096 | 180 |
Charge-offs | 0 | 0 | (23) | 0 |
Recoveries | 0 | 0 | 9 | 0 |
Net charge-offs | 0 | 0 | (14) | 0 |
Balance, end of period | 4,791 | 1,027 | 4,791 | 1,027 |
Real estate: | Residential construction | ||||
Allowance for credit losses on loans: | ||||
Balance, beginning of period | 3,080 | 1,048 | 1,796 | 975 |
Provision for credit losses on loans | (221) | 188 | 1,063 | 261 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Net charge-offs | 0 | 0 | 0 | 0 |
Balance, end of period | 2,859 | 1,236 | 2,859 | 1,236 |
Consumer and other | ||||
Allowance for credit losses on loans: | ||||
Balance, beginning of period | 390 | 58 | 348 | 83 |
Provision for credit losses on loans | 243 | 14 | 298 | 37 |
Charge-offs | (7) | (17) | (45) | (65) |
Recoveries | 3 | 1 | 28 | 1 |
Net charge-offs | (4) | (16) | (17) | (64) |
Balance, end of period | $ 629 | $ 56 | $ 629 | $ 56 |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Amortized Cost Basis of Collateral Dependent Loans Individually Evaluated to Determine Expected Credit Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | $ 10,887 | $ 23,531 |
Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 3,411 | 5,090 |
Business Assets | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 7,476 | 18,411 |
Other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 30 |
Commercial and industrial | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 7,476 | 18,441 |
Commercial and industrial | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Commercial and industrial | Business Assets | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 7,476 | 18,411 |
Commercial and industrial | Other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 30 |
Real estate: | Commercial real estate (including multi-family residential) | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 3,411 | 1,612 |
Real estate: | Commercial real estate (including multi-family residential) | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 3,411 | 1,612 |
Real estate: | Commercial real estate (including multi-family residential) | Business Assets | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate: | Commercial real estate (including multi-family residential) | Other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate: | Commercial real estate construction and land development | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate: | Commercial real estate construction and land development | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | |
Real estate: | Commercial real estate construction and land development | Business Assets | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate: | Commercial real estate construction and land development | Other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate: | 1-4 family residential (including home equity) | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 3,478 |
Real estate: | 1-4 family residential (including home equity) | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 3,478 |
Real estate: | 1-4 family residential (including home equity) | Business Assets | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate: | 1-4 family residential (including home equity) | Other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate: | Residential construction | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate: | Residential construction | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate: | Residential construction | Business Assets | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate: | Residential construction | Other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Consumer and other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Consumer and other | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Consumer and other | Business Assets | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Consumer and other | Other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Nonaccrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | $ 28,912 | $ 16,535 |
Nonaccrual Loans with Related Allowance | 9,379 | 28,513 |
Total Nonaccrual Loans | 38,291 | 45,048 |
Commercial and industrial | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | 10,337 | 2,776 |
Nonaccrual Loans with Related Allowance | 4,634 | 22,521 |
Total Nonaccrual Loans | 14,971 | 25,297 |
Paycheck Protection Program (PPP) | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | 20 | 105 |
Nonaccrual Loans with Related Allowance | 0 | 0 |
Total Nonaccrual Loans | 20 | 105 |
Real estate: | Commercial real estate (including multi-family residential) | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | 10,820 | 8,704 |
Nonaccrual Loans with Related Allowance | 2,743 | 1,266 |
Total Nonaccrual Loans | 13,563 | 9,970 |
Real estate: | Commercial real estate construction and land development | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | 170 | 0 |
Nonaccrual Loans with Related Allowance | 0 | 0 |
Total Nonaccrual Loans | 170 | 0 |
Real estate: | 1-4 family residential (including home equity) | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | 6,849 | 4,856 |
Nonaccrual Loans with Related Allowance | 1,593 | 4,548 |
Total Nonaccrual Loans | 8,442 | 9,404 |
Real estate: | Residential construction | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | 635 | 0 |
Nonaccrual Loans with Related Allowance | 0 | 0 |
Total Nonaccrual Loans | 635 | 0 |
Consumer and other | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | 81 | 94 |
Nonaccrual Loans with Related Allowance | 409 | 178 |
Total Nonaccrual Loans | $ 490 | $ 272 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loans Modified Borrowers Experiencing Financial Difficulty (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | $ 2,382,000 | $ 15,058,000 |
Interest Rate Reduction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 89,000 |
Term Extension | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 2,212,000 | 12,836,000 |
Payment Delay | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 99,000 |
Principal forgiveness | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Combination Term Extension and Principal Forgiveness | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Combination Term Extension and Payment Delay | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 71,000 | 2,034,000 |
Commercial and industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 2,534,000 |
Commercial and industrial | Interest Rate Reduction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 89,000 |
Commercial and industrial | Term Extension | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 2,185,000 |
Commercial and industrial | Payment Delay | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Commercial and industrial | Principal forgiveness | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Commercial and industrial | Combination Term Extension and Principal Forgiveness | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Commercial and industrial | Combination Term Extension and Payment Delay | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 260,000 |
Real estate: | Commercial real estate (including multi-family residential) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 1,890,000 | 4,373,000 |
Real estate: | Commercial real estate (including multi-family residential) | Interest Rate Reduction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Real estate: | Commercial real estate (including multi-family residential) | Term Extension | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 1,890,000 | 2,670,000 |
Real estate: | Commercial real estate (including multi-family residential) | Payment Delay | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Real estate: | Commercial real estate (including multi-family residential) | Principal forgiveness | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Real estate: | Commercial real estate (including multi-family residential) | Combination Term Extension and Principal Forgiveness | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Real estate: | Commercial real estate (including multi-family residential) | Combination Term Extension and Payment Delay | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 1,703,000 |
Real estate: | Commercial real estate construction and land development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 6,850,000 |
Real estate: | Commercial real estate construction and land development | Interest Rate Reduction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Real estate: | Commercial real estate construction and land development | Term Extension | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 6,850,000 | |
Real estate: | Commercial real estate construction and land development | Payment Delay | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Real estate: | Commercial real estate construction and land development | Principal forgiveness | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Real estate: | Commercial real estate construction and land development | Combination Term Extension and Principal Forgiveness | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Real estate: | Commercial real estate construction and land development | Combination Term Extension and Payment Delay | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Real estate: | 1-4 family residential (including home equity) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 492,000 | 1,207,000 |
Real estate: | 1-4 family residential (including home equity) | Interest Rate Reduction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Real estate: | 1-4 family residential (including home equity) | Term Extension | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 322,000 | 1,037,000 |
Real estate: | 1-4 family residential (including home equity) | Payment Delay | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 99,000 | 99,000 |
Real estate: | 1-4 family residential (including home equity) | Principal forgiveness | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Real estate: | 1-4 family residential (including home equity) | Combination Term Extension and Principal Forgiveness | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Real estate: | 1-4 family residential (including home equity) | Combination Term Extension and Payment Delay | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 71,000 | 71,000 |
Real estate: | Residential construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Real estate: | Residential construction | Interest Rate Reduction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Real estate: | Residential construction | Term Extension | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Real estate: | Residential construction | Payment Delay | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Real estate: | Residential construction | Principal forgiveness | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Real estate: | Residential construction | Combination Term Extension and Principal Forgiveness | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Real estate: | Residential construction | Combination Term Extension and Payment Delay | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Consumer and other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 94,000 |
Consumer and other | Interest Rate Reduction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Consumer and other | Term Extension | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 94,000 |
Consumer and other | Payment Delay | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Consumer and other | Principal forgiveness | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Consumer and other | Combination Term Extension and Principal Forgiveness | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | 0 | 0 |
Consumer and other | Combination Term Extension and Payment Delay | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Financing receivable, modified period | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Financial Effects of Loans Modified (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Interest Rate Reduction | 0% | 2% |
Weighted Average Term Extension | 12 months | |
Real estate: | Commercial real estate (including multi-family residential) | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Interest Rate Reduction | 0% | 0% |
Weighted Average Term Extension | 6 months | 9 months |
Real estate: | Commercial real estate construction and land development | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Interest Rate Reduction | 0% | 0% |
Weighted Average Term Extension | 12 months | |
Real estate: | 1-4 family residential (including home equity) | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Interest Rate Reduction | 1.50% | 1.50% |
Weighted Average Term Extension | 24 months | 16 years |
Real estate: | Residential construction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Interest Rate Reduction | 0% | 0% |
Consumer and other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted Average Interest Rate Reduction | 0% | 0% |
Weighted Average Term Extension | 7 months |
LOANS AND ALLOWANCE FOR CRED_12
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Loans with Payment Default, Modified (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2023 USD ($) | |
Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | $ 89 |
Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | 1,385 |
Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | 99 |
Principal forgiveness | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | 0 |
Commercial and industrial | Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | 89 |
Commercial and industrial | Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | 670 |
Commercial and industrial | Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | 0 |
Commercial and industrial | Principal forgiveness | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | 0 |
Real estate: | Commercial real estate (including multi-family residential) | Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | 0 |
Real estate: | Commercial real estate (including multi-family residential) | Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | 0 |
Real estate: | Commercial real estate (including multi-family residential) | Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | 0 |
Real estate: | Commercial real estate (including multi-family residential) | Principal forgiveness | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | 0 |
Real estate: | Commercial real estate construction and land development | Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | 0 |
Real estate: | Commercial real estate construction and land development | Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | 0 |
Real estate: | Commercial real estate construction and land development | Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | 0 |
Real estate: | Commercial real estate construction and land development | Principal forgiveness | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | 0 |
Real estate: | 1-4 family residential (including home equity) | Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | 0 |
Real estate: | 1-4 family residential (including home equity) | Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | 715 |
Real estate: | 1-4 family residential (including home equity) | Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | 99 |
Real estate: | 1-4 family residential (including home equity) | Principal forgiveness | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | 0 |
Real estate: | Residential construction | Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | 0 |
Real estate: | Residential construction | Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | 0 |
Real estate: | Residential construction | Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | 0 |
Real estate: | Residential construction | Principal forgiveness | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | 0 |
Consumer and other | Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | 0 |
Consumer and other | Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | 0 |
Consumer and other | Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | 0 |
Consumer and other | Principal forgiveness | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized cost basis, subsequent default loans | $ 0 |
LOANS AND ALLOWANCE FOR CRED_13
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Troubled Debt Restructuring (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 USD ($) contract | Sep. 30, 2022 USD ($) contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 2 | 9 |
Pre-modifications of Outstanding Recorded Investment | $ 269 | $ 2,020 |
Post-modifications of Outstanding Recorded Investment | $ 269 | $ 2,020 |
Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 1 | 4 |
Pre-modifications of Outstanding Recorded Investment | $ 224 | $ 768 |
Post-modifications of Outstanding Recorded Investment | $ 224 | $ 768 |
Real estate: | Commercial real estate (including multi-family residential) | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 0 | 4 |
Pre-modifications of Outstanding Recorded Investment | $ 0 | $ 1,207 |
Post-modifications of Outstanding Recorded Investment | $ 0 | $ 1,207 |
Consumer and other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 1 | 1 |
Pre-modifications of Outstanding Recorded Investment | $ 45 | $ 45 |
Post-modifications of Outstanding Recorded Investment | $ 45 | $ 45 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | 9 Months Ended |
Sep. 30, 2023 lease | |
Lessee Lease Description [Line Items] | |
Number of leased branch locations and office space along with equipment | 31 |
Minimum | |
Lessee Lease Description [Line Items] | |
Operating lease renewal term | 1 year |
Maximum | |
Lessee Lease Description [Line Items] | |
Operating lease renewal term | 5 years |
LEASES - Supplemental Lease Inf
LEASES - Supplemental Lease Information (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Balance Sheet: | ||
Operating lease right of use asset classified as premises and equipment | $ 20,483 | $ 23,538 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Premises and equipment, net | Premises and equipment, net |
Operating lease liability classified as other liabilities | $ 20,225 | $ 23,136 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities |
Weighted average lease term, in years | 7 years 10 months 28 days | 8 years 2 months 4 days |
Weighted average discount rate | 4.14% | 4% |
LEASES - Summary of Lease Costs
LEASES - Summary of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement: | ||||
Operating lease cost | $ 1,885 | $ 836 | $ 5,280 | $ 2,559 |
Short-term lease cost | 8 | 0 | 21 | 0 |
Total operating lease costs | $ 1,893 | $ 836 | $ 5,301 | $ 2,559 |
LEASES - Maturity Analysis of L
LEASES - Maturity Analysis of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Lease payments due: | ||
Within one year | $ 1,171 | $ 4,634 |
After one but within two years | 4,137 | 4,121 |
After two but within three years | 3,681 | 3,684 |
After three but within four years | 3,125 | 3,132 |
After four but within five years | 2,914 | 2,918 |
After five years | 9,279 | 9,303 |
Total lease payments | 24,307 | 27,792 |
Less: discount on cash flows | 4,082 | 4,656 |
Operating lease liability classified as other liabilities | $ 20,225 | $ 23,136 |
FAIR VALUE - Carrying Amounts a
FAIR VALUE - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 1,414,952 | $ 1,807,586 |
Accrued interest receivable | 36,400 | 34,100 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 302,272 | 371,705 |
Available for sale securities | 1,414,952 | 1,807,586 |
Loans held for investment, net of allowance | 7,910,953 | 7,661,571 |
Accrued interest receivable | 43,536 | 44,743 |
Deposits | 8,686,621 | 9,267,632 |
Accrued interest payable | 7,612 | 2,098 |
Borrowed funds | 323,981 | 63,925 |
Subordinated debt | 109,665 | 109,367 |
Estimated Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 302,272 | 371,705 |
Available for sale securities | 1,414,952 | 1,807,586 |
Loans held for investment, net of allowance | 7,615,073 | 7,555,602 |
Accrued interest receivable | 43,536 | 44,743 |
Deposits | 8,677,026 | 9,256,141 |
Accrued interest payable | 7,612 | 2,098 |
Borrowed funds | 323,998 | 63,999 |
Subordinated debt | 107,469 | 107,910 |
Estimated Fair Value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 302,272 | 371,705 |
Available for sale securities | 0 | 0 |
Loans held for investment, net of allowance | 0 | 0 |
Accrued interest receivable | 176 | 25 |
Deposits | 0 | 0 |
Accrued interest payable | 0 | 0 |
Borrowed funds | 0 | 0 |
Subordinated debt | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Available for sale securities | 1,414,952 | 1,807,586 |
Loans held for investment, net of allowance | 0 | 0 |
Accrued interest receivable | 6,947 | 10,585 |
Deposits | 8,677,026 | 9,256,141 |
Accrued interest payable | 7,612 | 2,098 |
Borrowed funds | 323,998 | 63,999 |
Subordinated debt | 107,469 | 107,910 |
Estimated Fair Value | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Available for sale securities | 0 | 0 |
Loans held for investment, net of allowance | 7,615,073 | 7,555,602 |
Accrued interest receivable | 36,413 | 34,133 |
Deposits | 0 | 0 |
Accrued interest payable | 0 | 0 |
Borrowed funds | 0 | 0 |
Subordinated debt | $ 0 | $ 0 |
FAIR VALUE - Narrative (Details
FAIR VALUE - Narrative (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Recurring Basis | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers between levels | $ 0 | $ 0 | |
Financial liabilities | 10,218,000 | $ 9,263,000 | |
Nonrecurring Basis | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial liabilities | $ 0 | $ 0 |
FAIR VALUE - Fair Values for As
FAIR VALUE - Fair Values for Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 1,414,952 | $ 1,807,586 |
U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 393,408 | 414,280 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 219,116 | 540,569 |
Agency mortgage-backed pass-through securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 328,194 | 328,801 |
Agency collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 365,878 | 394,130 |
Corporate bonds and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 108,356 | 129,806 |
Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,816,876 | |
Assets and liabilities are measured at fair value, nonrecurring basis | 1,425,180 | |
Financial liabilities | 10,218 | 9,263 |
Recurring Basis | Interest Rate Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 10,218 | 9,263 |
Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Assets and liabilities are measured at fair value, nonrecurring basis | 0 | |
Financial liabilities | 0 | 0 |
Recurring Basis | Level 1 | Interest Rate Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 0 | 0 |
Recurring Basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,807,586 | |
Assets and liabilities are measured at fair value, nonrecurring basis | 1,414,952 | |
Financial liabilities | 0 | 0 |
Recurring Basis | Level 2 | Interest Rate Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 0 | 0 |
Recurring Basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 9,290 | |
Assets and liabilities are measured at fair value, nonrecurring basis | 10,228 | |
Financial liabilities | 10,218 | 9,263 |
Recurring Basis | Level 3 | Interest Rate Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 10,218 | 9,263 |
Recurring Basis | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 393,408 | 414,280 |
Recurring Basis | U.S. government and agency securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis | U.S. government and agency securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 393,408 | 414,280 |
Recurring Basis | U.S. government and agency securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 219,116 | 540,569 |
Recurring Basis | Municipal securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis | Municipal securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 219,116 | 540,569 |
Recurring Basis | Municipal securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis | Agency mortgage-backed pass-through securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 328,194 | 328,801 |
Recurring Basis | Agency mortgage-backed pass-through securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis | Agency mortgage-backed pass-through securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 328,194 | 328,801 |
Recurring Basis | Agency mortgage-backed pass-through securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis | Agency collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 365,878 | 394,130 |
Recurring Basis | Agency collateralized mortgage obligations | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis | Agency collateralized mortgage obligations | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 365,878 | 394,130 |
Recurring Basis | Agency collateralized mortgage obligations | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis | Corporate bonds and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 108,356 | 129,806 |
Recurring Basis | Corporate bonds and other | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis | Corporate bonds and other | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 108,356 | 129,806 |
Recurring Basis | Corporate bonds and other | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 10,218 | 9,263 |
Recurring Basis | Interest Rate Swap [Member] | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis | Interest Rate Swap [Member] | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis | Interest Rate Swap [Member] | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 10,218 | 9,263 |
Recurring Basis | Credit Risk Participation Agreement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 10 | 27 |
Recurring Basis | Credit Risk Participation Agreement | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis | Credit Risk Participation Agreement | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis | Credit Risk Participation Agreement | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 10 | $ 27 |
FAIR VALUE - Assets Measured at
FAIR VALUE - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Nonrecurring Basis - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Branch assets held for sale | $ 5,852 | $ 5,165 |
Assets and liabilities are measured at fair value, nonrecurring basis | 5,852 | 5,165 |
Level 1 | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 0 | 0 |
Level 1 | Commercial real estate (including multi-family residential) | Commercial real estate (including multi-family residential) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 0 | 0 |
Level 1 | Commercial real estate (including multi-family residential) | Commercial real estate construction and land development | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 0 | |
Level 1 | Commercial real estate (including multi-family residential) | 1-4 family residential (including home equity) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 0 | 0 |
Level 1 | Commercial real estate (including multi-family residential) | Consumer and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Branch assets held for sale | 0 | 0 |
Assets and liabilities are measured at fair value, nonrecurring basis | 0 | 0 |
Level 2 | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 0 | 0 |
Level 2 | Commercial real estate (including multi-family residential) | Commercial real estate (including multi-family residential) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 0 | 0 |
Level 2 | Commercial real estate (including multi-family residential) | Commercial real estate construction and land development | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 0 | |
Level 2 | Commercial real estate (including multi-family residential) | 1-4 family residential (including home equity) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 0 | 0 |
Level 2 | Commercial real estate (including multi-family residential) | Consumer and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 0 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Branch assets held for sale | 0 | 0 |
Assets and liabilities are measured at fair value, nonrecurring basis | 31,054 | 36,397 |
Level 3 | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 13,830 | 21,948 |
Level 3 | Commercial real estate (including multi-family residential) | Commercial real estate (including multi-family residential) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 7,706 | 11,566 |
Level 3 | Commercial real estate (including multi-family residential) | Commercial real estate construction and land development | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 6,654 | |
Level 3 | Commercial real estate (including multi-family residential) | 1-4 family residential (including home equity) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 2,776 | $ 2,883 |
Level 3 | Commercial real estate (including multi-family residential) | Consumer and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | $ 88 |
DEPOSITS - Narrative (Details)
DEPOSITS - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Deposit Liabilities [Abstract] | ||
Time deposits, at or above FDIC insurance limit | $ 560.2 | $ 432.9 |
Brokered deposits | $ 579 | $ 72.5 |
DEPOSITS - Time Deposits by Mat
DEPOSITS - Time Deposits by Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Deposit Liabilities [Abstract] | ||
Within one year | $ 1,399,265 | |
After one but within two years | 85,040 | |
Over three years | 19,586 | |
Total | $ 1,503,891 | $ 869,712 |
DERIVATIVE INSTRUMENTS - Narrat
DERIVATIVE INSTRUMENTS - Narrative (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 interest_rate_swap creditAgreement | Dec. 31, 2022 interest_rate_swap creditAgreement | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Number of interest rate swap agreements outstanding | interest_rate_swap | 15 | 14 |
Number of credit risk participation agreements | creditAgreement | 3 | 3 |
DERIVATIVE INSTRUMENTS - Effect
DERIVATIVE INSTRUMENTS - Effect of Cash Flow Hedge Relationship on Statement of Comprehensive Income (Detail) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Interest Rate Swap With Financial Institutions One | Other assets | |||
Derivative Instruments Gain Loss [Line Items] | |||
Notional Amount | $ 110,946 | $ 109,242 | |
Fair Value, Asset | $ 9,758 | $ 8,856 | |
Weighted Average Maturity (Years) | 5 years 5 months 26 days | 4 years 8 months 26 days | |
Interest Rate Swap With Financial Institutions One | Other assets | Minimum | |||
Derivative Instruments Gain Loss [Line Items] | |||
Fixed Rate | 3.25% | 3.25% | |
Interest Rate Swap With Financial Institutions One | Other assets | Minimum | SOFR | |||
Derivative Instruments Gain Loss [Line Items] | |||
Floating Rate | 2.50% | 2.50% | |
Interest Rate Swap With Financial Institutions One | Other assets | Maximum | |||
Derivative Instruments Gain Loss [Line Items] | |||
Fixed Rate | 5.58% | ||
Interest Rate Swap With Financial Institutions One | Other assets | Maximum | SOFR | |||
Derivative Instruments Gain Loss [Line Items] | |||
Floating Rate | 3% | 3% | |
Interest Rate Swap With Financial Institutions Two | Other assets | |||
Derivative Instruments Gain Loss [Line Items] | |||
Notional Amount | $ 4,940 | $ 5,029 | |
Fair Value, Asset | $ 460 | $ 407 | |
Fixed Rate | 4.99% | 4.99% | |
Weighted Average Maturity (Years) | 4 years 11 months 15 days | 4 years 2 months 15 days | |
Interest Rate Swaps With Customers | Other liabilities | |||
Derivative Instruments Gain Loss [Line Items] | |||
Notional Amount | $ 4,940 | $ 5,029 | |
Fair Value, Liability | $ (460) | $ (407) | |
Fixed Rate | 4.99% | 4.99% | |
Weighted Average Maturity (Years) | 4 years 11 months 15 days | 4 years 2 months 15 days | |
Interest Rate Swaps With Customers Two | Other assets | Minimum | |||
Derivative Instruments Gain Loss [Line Items] | |||
Fixed Rate | 3.25% | ||
Interest Rate Swaps With Customers Two | Other assets | Maximum | |||
Derivative Instruments Gain Loss [Line Items] | |||
Fixed Rate | 5.58% | ||
Interest Rate Swaps With Customers Two | Other liabilities | |||
Derivative Instruments Gain Loss [Line Items] | |||
Notional Amount | $ 110,946 | $ 109,242 | |
Fair Value, Liability | $ (9,758) | $ (8,856) | |
Weighted Average Maturity (Years) | 5 years 5 months 26 days | 4 years 8 months 26 days | |
Interest Rate Swaps With Customers Two | Other liabilities | Minimum | |||
Derivative Instruments Gain Loss [Line Items] | |||
Fixed Rate | 3.25% | ||
Interest Rate Swaps With Customers Two | Other liabilities | Minimum | SOFR | |||
Derivative Instruments Gain Loss [Line Items] | |||
Floating Rate | 2.50% | 2.50% | |
Interest Rate Swaps With Customers Two | Other liabilities | Maximum | SOFR | |||
Derivative Instruments Gain Loss [Line Items] | |||
Floating Rate | 3% | ||
Credit Risk Participation Agreement | Other assets | |||
Derivative Instruments Gain Loss [Line Items] | |||
Notional Amount | $ 20,958 | $ 13,028 | |
Fair Value, Asset | $ 10 | $ 2 | |
Fixed Rate | 3.50% | ||
Weighted Average Maturity (Years) | 7 years 2 months 26 days | 7 years 6 months 29 days | |
Credit Risk Participation Agreement | Other assets | SOFR | |||
Derivative Instruments Gain Loss [Line Items] | |||
Floating Rate | 2.50% | ||
Credit Risk Participation Agreement | Other assets | LIBOR | |||
Derivative Instruments Gain Loss [Line Items] | |||
Floating Rate | 2.50% | ||
Credit Risk Participation Agreement | Other assets | Minimum | |||
Derivative Instruments Gain Loss [Line Items] | |||
Fixed Rate | 3.50% | ||
Credit Risk Participation Agreement | Other assets | Maximum | |||
Derivative Instruments Gain Loss [Line Items] | |||
Fixed Rate | 5.40% | ||
Credit Risk Participation Agreement Two | Other assets | |||
Derivative Instruments Gain Loss [Line Items] | |||
Notional Amount | $ 8,485 | ||
Fair Value, Asset | $ 25 | ||
Weighted Average Maturity (Years) | 9 years 11 months 19 days | ||
Credit Risk Participation Agreement Two | Other assets | SOFR | |||
Derivative Instruments Gain Loss [Line Items] | |||
Floating Rate | 2.50% | ||
Credit Risk Participation Agreement Two | Other assets | Minimum | |||
Derivative Instruments Gain Loss [Line Items] | |||
Fixed Rate | 5.35% | ||
Credit Risk Participation Agreement Two | Other assets | Maximum | |||
Derivative Instruments Gain Loss [Line Items] | |||
Fixed Rate | 5.40% |
BORROWINGS AND BORROWING CAPA_2
BORROWINGS AND BORROWING CAPACITY (Details) - USD ($) | Dec. 13, 2022 | Sep. 30, 2023 |
Frost Agreement | Line of Credit | Revolving Credit Agreement | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 75,000,000 | |
Letters of credit, outstanding amount | $ 0 | |
Period to draw | 24 months | |
Interest payment period | 24 months | |
Debt service ratio | 1.25 | |
Texas ratio | 0.250 | |
Leverage ratio | 0.070 | |
Federal Home Loan Bank of Dallas | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 3,820,000,000 | |
Remaining borrowing capacity | 2,280,000,000 | |
Outstanding amount | 1,540,000,000 | |
Letters of credit, outstanding amount | $ 1,220,000,000 | |
Federal Home Loan Bank of Dallas | Federal Home Loan Bank Advances | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 5.62% | |
Federal Home Loan Bank of Dallas | Expire in 2023 | ||
Debt Instrument [Line Items] | ||
Letters of credit, outstanding amount | $ 50,800,000 | |
Federal Home Loan Bank of Dallas | Expire in 2024 | ||
Debt Instrument [Line Items] | ||
Letters of credit, outstanding amount | 72,800,000 | |
Federal Home Loan Bank of Dallas | Expire In 2025 | ||
Debt Instrument [Line Items] | ||
Letters of credit, outstanding amount | 494,500,000 | |
Federal Home Loan Bank of Dallas | Expire In 2026 | ||
Debt Instrument [Line Items] | ||
Letters of credit, outstanding amount | 57,300,000 | |
Federal Home Loan Bank of Dallas | Expire In 2027 | ||
Debt Instrument [Line Items] | ||
Letters of credit, outstanding amount | 448,000,000 | |
Federal Home Loan Bank of Dallas | Expires In 2028 | ||
Debt Instrument [Line Items] | ||
Letters of credit, outstanding amount | 40,000,000 | |
Federal Home Loan Bank of Dallas | Expire In 2029 | ||
Debt Instrument [Line Items] | ||
Letters of credit, outstanding amount | 27,000,000 | |
Federal Home Loan Bank of Dallas | Expire In 2030 | ||
Debt Instrument [Line Items] | ||
Letters of credit, outstanding amount | 30,000,000 | |
Federal Home Loan Bank of Dallas | Weighted Average | Federal Home Loan Bank Advances | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank, advances, interest rate | 3.50% | |
Federal Home Loan Bank of Dallas | Short-term Debt | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank, advances | $ 324,000,000 |
SUBORDINATED DEBT - Narrative (
SUBORDINATED DEBT - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2017 | Sep. 30, 2023 | |
Subordinated Notes | Fixed-to-Floating Rate Subordinated Notes | |||
Subordinated Borrowing [Line Items] | |||
Debt instrument, face amount | $ 60 | $ 40 | |
Redemption price | 100% | 100% | |
Stated percentage | 4.70% | ||
Subordinated Notes | Fixed-to-Floating Rate Subordinated Notes | LIBOR | |||
Subordinated Borrowing [Line Items] | |||
Basis spread on variable rate | 3.13% | 3.03% | |
F&M Bancshares. Inc. | Junior Subordinated Debt | |||
Subordinated Borrowing [Line Items] | |||
Debentures, period over which company may defer interest payments | 5 years |
SUBORDINATED DEBT - Summary of
SUBORDINATED DEBT - Summary of Pertinent Information Related to Junior Subordinated Debentures (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Subordinated Borrowing [Line Items] | |
Junior Subordinated Debenture Owed to Trust | $ 11,341 |
Junior Subordinated Debt | Farmers & Merchants Capital Trust II | |
Subordinated Borrowing [Line Items] | |
Trust Preferred Securities Outstanding | 7,500 |
Junior Subordinated Debenture Owed to Trust | $ 7,732 |
Junior Subordinated Debt | Farmers & Merchants Capital Trust II | SOFR | |
Subordinated Borrowing [Line Items] | |
Interest Rate | 3.26% |
Junior Subordinated Debt | Farmers & Merchants Capital Trust III | |
Subordinated Borrowing [Line Items] | |
Trust Preferred Securities Outstanding | $ 3,500 |
Junior Subordinated Debenture Owed to Trust | $ 3,609 |
Junior Subordinated Debt | Farmers & Merchants Capital Trust III | SOFR | |
Subordinated Borrowing [Line Items] | |
Interest Rate | 2.06% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 7,445,000 | $ 3,406,000 | $ 24,825,000 | $ 11,310,000 |
Effective income tax rate reconciliation | 19.40% | 19.30% | 19.40% | 18.60% |
Unrecognized tax benefits, income tax penalties and interest expense | $ 0 |
STOCK BASED COMPENSATION - Narr
STOCK BASED COMPENSATION - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) shares | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) compensationPlan shares | Sep. 30, 2022 USD ($) | Oct. 01, 2022 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 2,000,000 | ||||
Shares reserved for issuance (in shares) | 1,017,319 | 1,017,319 | |||
Share-based compensation expense | $ | $ 2,800 | $ 969 | $ 8,200 | $ 2,900 | |
Number of compensation plans | compensationPlan | 3 | ||||
Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period | 10 years | ||||
Employee Stock Option | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Employee Stock Option | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 4 years | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | $ | 13,100 | $ 13,100 | |||
Weighted average period over which unrecognized compensation | 1 year 8 months 12 days | ||||
Share awards granted (in shares) | 262,000 | ||||
Restricted Stock | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 2 years | ||||
Restricted Stock | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Performance Share Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 2 years | ||||
Weighted average period over which unrecognized compensation | 2 years | ||||
Service period | 1 year | ||||
Share awards granted (in shares) | 119,845 | ||||
Unrecognized compensation expense | $ | $ 2,000 | $ 2,000 |
STOCK BASED COMPENSATION - Stoc
STOCK BASED COMPENSATION - Stock Option Plans Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Number of Options | ||
Options outstanding, beginning balance (in shares) | 368,000 | |
Options granted (in shares) | 0 | |
Options exercised (in shares) | (49,000) | |
Options forfeited (in shares) | (36,000) | |
Options outstanding, ending balance (in shares) | 283,000 | 368,000 |
Number of options vested and exercisable (in shares) | 283,000 | |
Weighted Average Exercise Price | ||
Options outstanding, beginning balance (in dollars per share) | $ 17.89 | |
Options granted (in dollars per share) | 0 | |
Options exercised (in dollars per share) | 14.19 | |
Options forfeited (in dollars per share) | 20.67 | |
Options outstanding, ending balance (in dollars per share) | 18.18 | $ 17.89 |
Weighted Average Exercise Price, Options vested and exercisable (in dollars per share) | $ 18.18 | |
Weighted Average Remaining Contractual Term, Options outstanding | 2 years 2 months 1 day | 2 years 8 months 19 days |
Weighted Average Remaining Contractual Term, Options vested and exercisable | 2 years 2 months 1 day | |
Aggregate Intrinsic Value, Options outstanding | $ 1,036 | $ 4,256 |
Aggregate Intrinsic Value, Options vested and exercisable | $ 1,036 |
STOCK BASED COMPENSATION - Summ
STOCK BASED COMPENSATION - Summary of Restricted Stock Activity (Details) - Restricted Stock shares in Thousands | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Number of Shares | |
Nonvested share awards outstanding, beginning balance (in shares) | shares | 501 |
Share awards granted (in shares) | shares | 262 |
Share awards vested (in shares) | shares | (14) |
Unvested share awards forfeited or cancelled (in shares) | shares | (64) |
Nonvested share awards outstanding, ending balance (in shares) | shares | 685 |
Weighted Average Grant Date Fair Value | |
Nonvested share awards outstanding, beginning balance (in dollars per share) | $ / shares | $ 32.84 |
Share awards granted (in dollars per share) | $ / shares | 25.67 |
Share awards vested (in dollars per share) | $ / shares | 25.99 |
Unvested share awards forfeited or cancelled (in dollars per share) | $ / shares | 31.03 |
Nonvested share awards outstanding, ending balance (in dollars per share) | $ / shares | $ 30.41 |
OFF-BALANCE SHEET ARRANGEMENT_3
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES - Contractual Amounts of Financial Instruments With Off-balance Sheet Risk (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 447,005 | $ 683,408 |
Variable Rate | 1,477,897 | 1,711,817 |
Commitments to Extend Credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 432,498 | 673,098 |
Variable Rate | 1,454,648 | 1,686,627 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 14,507 | 10,310 |
Variable Rate | 23,249 | 25,190 |
Short-term Debt | Federal Home Loan Bank of Dallas | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
FHLB pledged collateral | $ 1,220,000 | $ 1,080,000 |
OFF-BALANCE SHEET ARRANGEMENT_4
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES - Narrative (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Commitments to make loans, period | 120 days |
Off-balance-sheet fixed rate loan commitments, weighted average maturity | 2 years 5 months 15 days |
Minimum | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Off-balance-sheet fixed rate loan commitments, interest rate | 1.70% |
Maximum | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Off-balance-sheet fixed rate loan commitments, interest rate | 13.50% |
Weighted Average | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Off-balance-sheet fixed rate loan commitments, interest rate | 6.28% |
REGULATORY CAPITAL MATTERS - Na
REGULATORY CAPITAL MATTERS - Narrative (Details) | Sep. 30, 2023 | Dec. 31, 2022 |
Regulatory Capital Matters [Abstract] | ||
Capital conservation buffer | 2.50% | 2.50% |
REGULATORY CAPITAL MATTERS - Ac
REGULATORY CAPITAL MATTERS - Actual and Required Capital (Details) $ in Thousands | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Total Capital | ||
Capital | $ 1,201,404 | $ 1,092,618 |
Capital to Risk Weighted Assets | 0.1342 | 0.1239 |
Capital Required for Capital Adequacy | $ 716,402 | $ 705,765 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0800 | 0.0800 |
Plus Capital Conservation Buffer | $ 940,278 | $ 926,317 |
Plus Capital Conservation Buffer to Risk Weighted Assets | 0.1050 | 0.1050 |
Common Equity Tier 1 Capital | ||
Common Equity Tier 1 Risk Based Capital | $ 997,556 | $ 885,652 |
Common Equity Tier 1 Risk Based Capital to Risk Weighted Assets | 0.1114 | 0.1004 |
Common Equity Tier 1 Risk Based Capital Required for Capital Adequacy | $ 402,976 | $ 396,993 |
Common Equity Tier 1 Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0450 | 0.0450 |
Plus Common Equity Tier 1 Risk Based Capital | $ 626,852 | $ 617,545 |
Plus Common Equity Tier 1 Risk Based Capital to Risk Weighted Assets | 0.0700 | 0.0700 |
Tier 1 Capital | ||
Tier 1 Risk Based Capital | $ 1,007,454 | $ 895,520 |
Tier 1 Risk Based Capital to Risk Weighted Assets | 0.1125 | 0.1015 |
Tier 1 Risk Based Capital Required for Capital Adequacy | $ 537,302 | $ 529,324 |
Tier 1 Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0600 | 0.0600 |
Plus Tier 1 Risk Based Capital | $ 761,177 | $ 749,876 |
Plus Tier 1 Risk Based Capital to Risk Weighted Assets | 0.0850 | 0.0850 |
Tier 1 Capital | ||
Tier 1 Leverage Capital | $ 1,007,454 | $ 895,520 |
Tier 1 Leverage Capital to Average Assets | 0.0982 | 0.0855 |
Tier 1 Leverage Capital Required for Capital Adequacy | $ 410,344 | $ 418,720 |
Tier 1 Leverage Capital Required for Capital Adequacy to Average Assets | 0.0400 | 0.0400 |
Plus Tier 1 Leverage Capital | $ 410,344 | $ 418,720 |
Plus Tier 1 Leverage Capital to Average Assets | 0.0400 | 0.0400 |
Allegiance Bank | ||
Total Capital | ||
Capital | $ 1,174,693 | $ 1,059,313 |
Capital to Risk Weighted Assets | 0.1313 | 0.1202 |
Capital Required for Capital Adequacy | $ 715,650 | $ 705,120 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0800 | 0.0800 |
Plus Capital Conservation Buffer | $ 939,290 | $ 925,470 |
Plus Capital Conservation Buffer to Risk Weighted Assets | 0.1050 | 0.1050 |
Capital Required to be Well Capitalized | $ 894,562 | $ 881,400 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 0.1000 | 0.1000 |
Common Equity Tier 1 Capital | ||
Common Equity Tier 1 Risk Based Capital | $ 1,040,743 | $ 921,714 |
Common Equity Tier 1 Risk Based Capital to Risk Weighted Assets | 0.1163 | 0.1046 |
Common Equity Tier 1 Risk Based Capital Required for Capital Adequacy | $ 402,553 | $ 396,630 |
Common Equity Tier 1 Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0450 | 0.0450 |
Plus Common Equity Tier 1 Risk Based Capital | $ 626,193 | $ 616,980 |
Plus Common Equity Tier 1 Risk Based Capital to Risk Weighted Assets | 0.0700 | 0.0700 |
Common Equity Tier 1 Risk Based Capital Required to be Well Capitalized | $ 581,465 | $ 572,910 |
Common Equity Tier 1 Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 0.0650 | 0.0650 |
Tier 1 Capital | ||
Tier 1 Risk Based Capital | $ 1,040,743 | $ 921,714 |
Tier 1 Risk Based Capital to Risk Weighted Assets | 0.1163 | 0.1046 |
Tier 1 Risk Based Capital Required for Capital Adequacy | $ 536,737 | $ 528,840 |
Tier 1 Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0600 | 0.0600 |
Plus Tier 1 Risk Based Capital | $ 760,378 | $ 749,190 |
Plus Tier 1 Risk Based Capital to Risk Weighted Assets | 0.0850 | 0.0850 |
Tier 1 Risk Based Capital Required to be Well Capitalized | $ 715,650 | $ 705,120 |
Tier 1 Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 0.0800 | 0.0800 |
Tier 1 Capital | ||
Tier 1 Leverage Capital | $ 1,040,743 | $ 921,714 |
Tier 1 Leverage Capital to Average Assets | 0.1015 | 0.0881 |
Tier 1 Leverage Capital Required for Capital Adequacy | $ 409,957 | $ 418,388 |
Tier 1 Leverage Capital Required for Capital Adequacy to Average Assets | 0.0400 | 0.0400 |
Plus Tier 1 Leverage Capital | $ 409,957 | $ 418,388 |
Plus Tier 1 Leverage Capital to Average Assets | 0.0400 | 0.0400 |
Tier 1 Leverage Capital Required to be Well Capitalized | $ 512,446 | $ 522,984 |
Tier 1 Leverage Capital Required to be Well Capitalized to Average Assets | 0.0500 | 0.0500 |
EARNINGS PER COMMON SHARE - Sum
EARNINGS PER COMMON SHARE - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to shareholders | $ 30,908 | $ 14,286 | $ 103,231 | $ 49,380 |
Basic: | ||||
Weighted average shares outstanding (in shares) | 53,313 | 28,286 | 53,211 | 28,679 |
Weighted average shares outstanding (in dollars per share) | $ 0.58 | $ 0.51 | $ 1.94 | $ 1.72 |
Add incremental shares for: | ||||
Dilutive effect of stock option exercises and performance share units (in shares) | 67 | 244 | 89 | 222 |
Total (in shares) | 53,380 | 28,530 | 53,300 | 28,901 |
Total (in dollars per share) | $ 0.58 | $ 0.50 | $ 1.94 | $ 1.71 |
EARNINGS PER COMMON SHARE - Nar
EARNINGS PER COMMON SHARE - Narrative (Details) - shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Employee Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 28,372 | 0 |