Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 24, 2023 | Jun. 30, 2022 | |
Document Document And Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Entity File Number | 001-35654 | ||
Entity Registrant Name | NATIONAL BANK HOLDINGS CORP | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 27-0563799 | ||
Entity Address, Address Line One | 7800 East Orchard Road, Suite 300 | ||
Entity Address, City or Town | Greenwood Village | ||
Entity Address, State or Province | CO | ||
Entity Address, Postal Zip Code | 80111 | ||
City Area Code | 303 | ||
Local Phone Number | 892-8715 | ||
Title of 12(b) Security | Class A Common Stock, Par Value $0.01 | ||
Trading Symbol | NBHC | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 37,608,519 | ||
Entity Public Float | $ 1,128,000,000 | ||
Auditor Name | KPMG, LLP | ||
Auditor Firm ID | 185 | ||
Auditor Location | Kansas City, MO | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001475841 | ||
Amendment Flag | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 194,756 | $ 845,195 |
Interest bearing bank deposits | 749 | 500 |
Cash and cash equivalents | 195,505 | 845,695 |
Investment securities available-for-sale (at fair value) | 706,289 | 691,847 |
Investment securities held-to-maturity (fair value of $559,924 and $599,260 at December 31, 2022 and December 31, 2021, respectively) | 651,527 | 609,012 |
Non-marketable securities | 89,049 | 50,740 |
Loans | 7,220,469 | 4,513,383 |
Allowance for credit losses | (89,553) | (49,694) |
Loans, net | 7,130,916 | 4,463,689 |
Loans held for sale | 22,767 | 139,142 |
Other real estate owned | 3,731 | 7,005 |
Premises and equipment, net | 136,111 | 96,747 |
Goodwill | 279,132 | 115,027 |
Intangible assets, net | 59,887 | 12,322 |
Other assets | 298,329 | 182,785 |
Total assets | 9,573,243 | 7,214,011 |
Liabilities: | ||
Non-interest bearing demand deposits | 3,134,716 | 2,506,265 |
Interest bearing demand deposits | 913,852 | 555,401 |
Savings and money market | 2,950,658 | 2,332,591 |
Time deposits | 873,400 | 833,916 |
Total deposits | 7,872,626 | 6,228,173 |
Securities sold under agreements to repurchase | 20,214 | 22,768 |
Long-term debt, net | 53,890 | 39,478 |
Federal Home Loan Bank advances | 385,000 | |
Other liabilities | 149,311 | 83,486 |
Total liabilities | 8,481,041 | 6,373,905 |
Shareholders' equity: | ||
Common stock, par value $0.01 per share: 400,000,000 shares authorized; 51,487,907 and 51,487,907 shares issued; 37,608,519 and 29,958,764 shares outstanding at December 31, 2022 and December 31, 2021, respectively | 515 | 515 |
Additional paid-in capital | 1,159,508 | 1,014,294 |
Retained earnings | 330,721 | 289,876 |
Treasury stock of 13,714,251 and 21,384,676 shares at December 31, 2022 and December 31, 2021, respectively, at cost | (310,338) | (457,616) |
Accumulated other comprehensive loss, net of tax | (88,204) | (6,963) |
Total shareholders' equity | 1,092,202 | 840,106 |
Total liabilities and shareholders' equity | $ 9,573,243 | $ 7,214,011 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Consolidated Statements of Financial Condition | ||
Investment securities held-to-maturity, fair value | $ 559,924 | $ 599,260 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 400,000,000 | 400,000,000 |
Common Stock, shares issued | 51,487,907 | 51,487,907 |
Common Stock, shares outstanding | 37,608,519 | 29,958,764 |
Treasury stock, shares | 13,714,251 | 21,384,676 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest and dividend income: | |||
Interest and fees on loans | $ 255,672 | $ 181,816 | $ 200,026 |
Interest and dividends on investment securities | 24,200 | 17,325 | 16,505 |
Dividends on non-marketable securities | 1,034 | 838 | 1,157 |
Interest on interest-bearing bank deposits | 3,782 | 986 | 314 |
Total interest and dividend income | 284,688 | 200,965 | 218,002 |
Interest expense: | |||
Interest on deposits | 14,596 | 13,602 | 23,629 |
Interest on borrowings | 3,257 | 219 | 1,427 |
Total interest expense | 17,853 | 13,821 | 25,056 |
Net interest income before provision for credit losses | 266,835 | 187,144 | 192,946 |
Allowance for credit loss expense (release) | 36,729 | (9,293) | 17,630 |
Net interest income after provision for credit losses | 230,106 | 196,437 | 175,316 |
Non-interest income: | |||
Non-interest income | 37,654 | 35,759 | 32,359 |
Mortgage banking income | 23,774 | 63,360 | 102,384 |
Bank-owned life insurance income | 2,272 | 2,208 | 2,360 |
Other non-interest income | 6,603 | 12,174 | 4,719 |
OREO-related income | 7 | 35 | 387 |
Total non-interest income | 67,312 | 110,364 | 140,258 |
Non-interest expense: | |||
Salaries and benefits | 124,971 | 127,504 | 141,170 |
Occupancy and equipment | 31,496 | 25,283 | 27,473 |
Data processing | 12,657 | 9,310 | 9,042 |
Marketing and business development | 3,821 | 2,509 | 2,802 |
FDIC deposit insurance | 2,121 | 1,850 | 1,168 |
Bank card expenses | 5,480 | 5,177 | 4,388 |
Professional fees | 14,418 | 5,423 | 2,946 |
Other non-interest expense | 14,332 | 10,414 | 10,547 |
Problem asset workout | 248 | 2,063 | 3,148 |
Gain on OREO sales, net | (648) | (475) | (38) |
Core deposit and wealth management intangible assets amortization | 2,338 | 1,183 | 1,183 |
Banking center consolidation-related expense | 1,589 | 2,348 | |
Total non-interest expense | 211,234 | 191,830 | 206,177 |
Income before income taxes | 86,184 | 114,971 | 109,397 |
Income tax expense | 14,910 | 21,365 | 20,806 |
Net income | $ 71,274 | $ 93,606 | $ 88,591 |
Earnings per share-basic (in dollars per share) | $ 2.20 | $ 3.04 | $ 2.87 |
Earnings per share-diluted (in dollars per share) | $ 2.18 | $ 3.01 | $ 2.85 |
Weighted average number of common shares outstanding: | |||
Basic (Shares) | 32,360,005 | 30,727,566 | 30,857,086 |
Diluted (Shares) | 32,680,932 | 31,068,159 | 31,075,857 |
Service charges | |||
Non-interest income: | |||
Non-interest income | $ 16,357 | $ 14,894 | $ 14,962 |
Bank card fees | |||
Non-interest income: | |||
Non-interest income | $ 18,299 | $ 17,693 | $ 15,446 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Statements of Comprehensive (Loss) Income | |||
Net income | $ 71,274 | $ 93,606 | $ 88,591 |
Securities available-for-sale: | |||
Net unrealized (losses) gains arising during the period, net of tax benefit (expense) of $24,297, $5,034, and ($2,634) for the years ended 2022, 2021 and 2020, respectively. | (79,312) | (16,186) | 8,482 |
Less: amortization of net unrealized holding losses to income, net of tax benefit of $95, $168, and $248 for the years ended 2022, 2021 and 2020, respectively. | (303) | (543) | (778) |
Cash flow hedges: | |||
Net unrealized losses arising during the period, net of tax benefit of $524, $0, and $0 for the years ended 2022, 2021 and 2020, respectively. | (1,721) | ||
Less: reclassification adjustment for losses included in net income, net of tax benefit of $28, $0, and $0 for the years ended 2022, 2021, and 2020, respectively. | 95 | ||
Other comprehensive (loss) income | (81,241) | (16,729) | 7,704 |
Comprehensive (loss) income | $ (9,967) | $ 76,877 | $ 96,295 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive (Loss) Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Statements of Comprehensive (Loss) Income | |||
Tax benefit (expense) on net unrealized (losses) gains arising during the period | $ 24,297 | $ 5,034 | $ (2,634) |
Tax benefit of amortization of net unrealized holding gains to income | 95 | 168 | 248 |
Net unrealized losses arising during the period, tax benefit | 524 | 0 | 0 |
Reclassification adjustment for gains included in net income, tax expense | $ 28 | $ 0 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Common stock [Member] | Additional paid-in capital [Member] Community Bancorporation | Additional paid-in capital [Member] Bancshares of Jackson Hole | Additional paid-in capital [Member] | Retained earnings [Member] Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained earnings [Member] | Treasury stock [Member] Community Bancorporation | Treasury stock [Member] Bancshares of Jackson Hole | Treasury stock [Member] | Accumulated other comprehensive income (loss), net [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Community Bancorporation | Bancshares of Jackson Hole | Total |
Balance in the beginning at Dec. 31, 2019 | $ 515 | $ 1,009,223 | $ 164,082 | $ 2,062 | $ 766,920 | |||||||||
Balance in the beginning (Treasury Stock) at Dec. 31, 2019 | $ (408,962) | |||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net income | 88,591 | 88,591 | ||||||||||||
Stock-based compensation | 5,299 | 5,299 | ||||||||||||
Issuance of stock under purchase and equity compensation plans, including gain on reissuance of treasury stock, net | (3,160) | 4,311 | 1,151 | |||||||||||
Repurchase of shares | (19,476) | (19,476) | ||||||||||||
Cash dividends declared | (24,875) | (24,875) | ||||||||||||
Other comprehensive income (loss) | 7,704 | 7,704 | ||||||||||||
Balance in the ending at Dec. 31, 2020 | 515 | 1,011,362 | $ (4,623) | 223,175 | 9,766 | $ (4,623) | 820,691 | |||||||
Balance in the ending (Treasury Stock) at Dec. 31, 2020 | (424,127) | |||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net income | 93,606 | 93,606 | ||||||||||||
Stock-based compensation | 5,541 | 5,541 | ||||||||||||
Issuance of stock under purchase and equity compensation plans, including gain on reissuance of treasury stock, net | (2,609) | 2,911 | 302 | |||||||||||
Repurchase of shares | (36,400) | (36,400) | ||||||||||||
Cash dividends declared | (26,905) | (26,905) | ||||||||||||
Other comprehensive income (loss) | (16,729) | (16,729) | ||||||||||||
Balance in the ending at Dec. 31, 2021 | 515 | 1,014,294 | 289,876 | (6,963) | 840,106 | |||||||||
Balance in the ending (Treasury Stock) at Dec. 31, 2021 | (457,616) | (457,616) | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net income | 71,274 | 71,274 | ||||||||||||
Stock-based compensation | 6,059 | 6,059 | ||||||||||||
Issuance of stock under purchase and equity compensation plans, including gain on reissuance of treasury stock, net | (2,812) | 2,514 | (298) | |||||||||||
Reissuance of treasury stock for acquisition | $ 63,630 | $ 78,337 | $ 60,642 | $ 84,122 | $ 124,272 | $ 162,459 | ||||||||
Cash dividends declared | (30,429) | (30,429) | ||||||||||||
Other comprehensive income (loss) | (81,241) | (81,241) | ||||||||||||
Balance in the ending at Dec. 31, 2022 | $ 515 | $ 1,159,508 | $ 330,721 | $ (88,204) | 1,092,202 | |||||||||
Balance in the ending (Treasury Stock) at Dec. 31, 2022 | $ (310,338) | $ (310,338) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Excess tax benefit from stock-based compensation | $ 300 | $ 600 | $ (51) |
Gain on reissuance of treasury stock | $ 4,111 | $ 4,661 | $ 1,588 |
Shares repurchased (shares) | 912,213 | 734,117 | |
Cash dividends declared per share | $ 0.94 | $ 0.87 | $ 0.80 |
Community Bancorporation | |||
Reissuance of treasury stock, shares | 3,096,745 | ||
Bancshares of Jackson Hole | |||
Reissuance of treasury stock, shares | 4,391,964 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 71,274 | $ 93,606 | $ 88,591 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Provision expense (release) for loan losses | 36,729 | (9,293) | 17,630 |
Depreciation and amortization | 16,448 | 13,585 | 14,449 |
Change in current income tax receivable | (3,880) | 1,045 | (2,371) |
Change in deferred income taxes | (17,280) | (226) | 3,477 |
Net excess tax (benefit) expense from stock-based compensation | (294) | (644) | 51 |
Discount accretion, net of premium amortization on securities | 1,111 | 4,335 | 3,374 |
Gain on sale of mortgages, net | (19,747) | (56,946) | (98,250) |
Origination of loans held for sale, net of repayments | (810,061) | (1,867,734) | (2,376,660) |
Proceeds from sales of loans held for sale | 955,044 | 2,041,158 | 2,348,166 |
Originations of mortgage serving rights | (4,187) | (7,882) | (10,354) |
Proceeds from sales of mortgage servicing rights | 11,375 | ||
Gain on sale of mortgage servicing rights | (1,290) | ||
Impairment on other real estate owned | 505 | 799 | 470 |
Impairment on fixed assets related to banking center consolidations | 118 | 1,553 | 1,631 |
Gain on sale of fixed assets | (1,674) | (3,768) | |
Gain from banking center divestiture | (778) | ||
Stock-based compensation | 6,059 | 5,541 | 5,299 |
Acquisition-related costs | 15,067 | ||
Operating lease payments | (5,036) | (5,099) | (5,414) |
Change in other assets | (26,960) | 11,235 | (31,008) |
Change in other liabilities | 1,398 | (51,070) | 34,707 |
Net cash provided by (used in) operating activities | 214,634 | 179,502 | (6,212) |
Cash flows from investing activities: | |||
Proceeds from non-marketable securities | 4,175 | 2,006 | 13,709 |
Proceeds from maturities of investment securities available-for-sale | 141,892 | 235,860 | 271,508 |
Proceeds from maturities of investment securities held-to-maturity | 133,363 | 161,923 | 88,071 |
Proceeds from sales of investment securities available-for-sale | 128,430 | 0 | |
Proceeds from sales of other real estate owned | 3,564 | 1,917 | 3,671 |
Purchase of non-marketable securities | (37,271) | (27,688) | (4,107) |
Purchase of investment securities available-for-sale | (259,846) | (288,580) | (286,130) |
Purchase of investment securities held-to-maturity | (101,699) | (397,758) | (284,170) |
(Purchases) sales of premises and equipment, net | (12,430) | 5,146 | (4,352) |
Net (increase) decrease in loans | (987,511) | (166,662) | 49,209 |
Proceeds from the sale of loans | 933 | ||
Net cash activity from acquisitions | 234,263 | ||
Net cash used in investing activities | (752,137) | (473,836) | (152,591) |
Cash flows from financing activities: | |||
Net (decrease) increase in deposits | (465,818) | 552,719 | 939,100 |
Net decrease in repurchase agreements and other short-term borrowings | (2,554) | (129) | (34,038) |
Proceeds from long-term debt | 40,000 | ||
Payment of long-term debt issuance costs | (535) | ||
Advances from FHLB | 570,500 | 947,431 | |
FHLB repayments | (185,500) | (1,155,106) | |
Issuance of stock under purchase and equity compensation plans | (1,481) | (2,267) | (749) |
Proceeds from exercise of stock options | 1,102 | 2,489 | 1,832 |
Payment of dividends | (30,447) | (26,888) | (24,816) |
Repurchase of common stock | (36,400) | (19,476) | |
Net cash (used in) provided by financing activities | (114,198) | 528,989 | 654,178 |
(Decrease) increase in cash, cash equivalents and restricted cash(1) | (651,701) | 234,655 | 495,375 |
Cash, cash equivalents and restricted cash at beginning of the year(1) | 850,220 | 615,565 | 120,190 |
Cash, cash equivalents and restricted cash at end of period(1) | 198,519 | 850,220 | 615,565 |
Supplemental disclosure of cash flow information during the period: | |||
Cash paid for interest | 18,597 | 16,638 | 27,622 |
Net tax payments | 11,302 | 15,389 | 22,111 |
Supplemental schedule of non-cash activities: | |||
Loans transferred to other real estate owned at fair value | 147 | 4,516 | 1,533 |
(Decrease) increase in loans purchased but not settled | (16,351) | ||
Loans transferred from loans held for sale to loans | 5,288 | $ 7,807 | $ 3,625 |
Rock Canyon Bank | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Provision expense (release) for loan losses | 5,400 | ||
Acquisition-related costs | 12,300 | ||
Supplemental schedule of non-cash activities: | |||
Treasury stock reissued for acquisition | 60,642 | ||
Bank of Jackson Hole | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Provision expense (release) for loan losses | 16,300 | ||
Acquisition-related costs | 24,500 | ||
Supplemental schedule of non-cash activities: | |||
Treasury stock reissued for acquisition | $ 84,122 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - Peoples Inc - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Restricted cash placed in escrow | $ 3 | $ 4.5 | $ 10 |
Restricted Cash, Asset, Statement of Financial Position [Extensible List] | Other Assets | Other Assets | Other Assets |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
Basis of Presentation | |
Basis of Presentation | Note 1 Basis of Presenta tion National Bank Holdings Corporation is a bank holding company that was incorporated in the State of Delaware in 2009. The Company is headquartered in Greenwood Village, Colorado, and its primary operations are conducted through its wholly owned subsidiaries NBH Bank and Bank of Jackson Hole Trust. NBH Bank is a Colorado state-chartered bank and a member of the Federal Reserve System, and Bank of Jackson Hole Trust is a Wyoming state-charted bank and a member of the Federal Reserve System. The Company provides a variety of banking products to both commercial and consumer clients through a network of over 95 banking centers as of December 31, 2022, located primarily in Colorado, the greater Kansas City region, Utah, Wyoming, Texas, New Mexico and Idaho, as well as through online and mobile banking products and services. The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, NBH Bank and Bank of Jackson Hole Trust. The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and, where applicable, with general practices in the banking industry or guidelines prescribed by bank regulatory agencies. The consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results presented. All such adjustments are of a normal recurring nature. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications of prior years' amounts are made whenever necessary to conform to current period presentation. All amounts are in thousands, except share data, or as otherwise noted. GAAP requires management to make estimates that affect the reported amounts of assets, liabilities, revenues and expenses and disclosures of contingent assets and liabilities. By their nature, estimates are based on judgment and available information. Management has made significant estimates in certain areas, such as the fair values of financial instruments, contingent liabilities and the allowance for credit losses (“ACL”). Because of the inherent uncertainties associated with any estimation process and future changes in market and economic conditions, it is possible that actual results could differ significantly from those estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2 Summary of Significant Accounting Policies a) Cash and cash equivalents b) Investment securities Management evaluates all investments in an unrealized loss position on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. If the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security, the security is written down to fair value and the entire loss is recorded in earnings. If either of the above criteria is not met, we evaluate whether the decline in fair value is the result of credit losses or other factors. In making the assessment, we may consider various factors including the extent to which fair value is less than amortized cost, performance on any underlying collateral, downgrades in the ratings of the security by a rating agency, the failure of the issuer to make scheduled interest or principal payments and adverse conditions specifically related to the security. If the assessment indicates that a credit loss exists, the present value of cash flows expected to be collected are compared to the amortized cost basis of the security and any excess is recorded as an allowance for credit loss. When the loss is not considered a result of credit loss, the cost basis of the security is written down to fair value, with the loss charge recognized in AOCI. The Company does not measure expected credit losses for U.S. agency-backed held-to-maturity securities, since the risk of nonpayment of the amortized cost basis is zero. Credit losses are not estimated for AIR from investment securities as interest deemed uncollectible is written off through interest income. c) Non-marketable securities d) Loans receivable — Estimated fair values of acquired loans are based on a discounted cash flow methodology that considers various factors including the type of loan and related collateral, the expected timing of cash flows, classification status, fixed or variable interest rate, term of loan and whether or not the loan is amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Discounts created when the loans are recorded at their estimated fair values at acquisition are accreted over the remaining term of the loan as an adjustment to the related loan’s yield. Similar to originated loans described below, the accrual of interest income on acquired loans is discontinued when the collection of principal or interest, in whole or in part, is doubtful. Acquired loans that have been identified as having experienced a more-than-insignificant deterioration in credit quality since origination are PCD loans. The net premium or discount on PCD loans is adjusted by our allowance for credit losses recorded at the time of acquisition. The remaining net premium or discount is accreted or amortized into interest income over the remaining life of the loan using the level yield method. The net premium or discount on non-PCD loans, that includes credit quality and interest rate considerations, is accreted or amortized into interest income over the remaining life of the loan using the level yield method. The Company then records the necessary allowance for credit losses on the non-PCD loans through provision for credit losses expense. Interest income on acquired loans and interest income on loans originated by the Company is accrued and credited to income as it is earned using the interest method based on daily balances of the principal amount outstanding. However, interest is generally not accrued on loans 90 days or more past due, unless they are well secured and in the process of collection. Additionally, in certain situations, loans that are not contractually past due may be placed on non-accrual status due to the continued failure to adhere to contractual payment terms by the borrower coupled with other pertinent factors, such as insufficient collateral value or deficient primary and secondary sources of repayment. Accrued interest receivable is reversed when a loan is placed on non-accrual status and payments received generally reduce the carrying value of the loan. Interest is not accrued while a loan is on non-accrual status and interest income is generally recognized on a cash basis only after payment in full of the past due principal and collection of principal outstanding is reasonably assured. A loan may be placed back on accrual status if all contractual payments have been received, or sooner under certain conditions and collection of future principal and interest payments is no longer doubtful. In the event of borrower default, the Company may seek recovery in compliance with state lending laws, the respective loan agreements, and credit monitoring and remediation procedures that may include modifying or restructuring a loan from its original terms, for economic or legal reasons, to provide a concession to the borrower from their original terms due to borrower financial difficulties in order to facilitate repayment. Such restructured loans are considered “troubled debt restructurings” and are identified in accordance with ASC 310-40. e) Loans held for sale — The Company enters into commitments to originate residential mortgage loans whereby the interest rate on the loan is determined prior to funding (i.e. interest rate lock commitments). Such interest rate lock commitments on mortgage loans to be sold in the secondary market are considered to be derivatives. To protect against the price risk inherent in residential mortgage loan commitments, the Company utilizes both "best efforts" and "mandatory delivery" forward loan sale commitments to mitigate the risk of potential increases or decreases in the values of loans that would result from the change in market rates for such loans. The Company manages the interest rate risk on interest rate lock commitments by entering into forward sale contracts of mortgage backed securities. Such contracts are accounted for as derivatives and are recorded at fair value as derivative assets or liabilities. They are carried in the consolidated statements of financial condition within other assets or other liabilities, and changes in fair value are recorded net as a component of mortgage banking income in the consolidated statements of operations. The gross gains on loan sales are recognized based on new loan commitments with adjustment for price and pair-off activity. Commission expenses on loans held for sale are recognized based on loans closed. f) Allowance for credit losses The Company utilizes a DCF model developed within a third-party software tool to establish expected lifetime credit losses for the loan portfolio. The ACL is calculated as the difference between the amortized cost basis and the projections from the DCF analysis. The DCF model allows for individual life of loan cash flow modeling, excluding extensions and renewals, using loan-specific interest rates and repayment schedules adjusted for estimated prepayment rates and loss recovery timing delays. The model incorporates forecasts of certain national macroeconomic factors, including unemployment rates, HPI, retail sales and GDP, which drive correlated probability of default (“PD”) and loss given default (“LGD”) rates. PD and LGD, in turn, drive the losses predicted in establishing our ACL. PD and LGD rates along with prepayment rates and loss recovery time delays are determined at a loan class level making use of both internal and peer historical loss rate data. The determination and application of the ACL accounting policy involves judgments, estimates, and uncertainties that are subject to change. For periods beyond the reasonable and supportable forecast period, we revert to historical long-term average loss rates on a straight-line basis. The length of the forecast period spans four quarters. The length of the reversion period is based on management’s assessment of the length and pattern of the current economic cycle and typically ranges from four to eight quarters. Management accounts for the inherent uncertainty of the underlying economic forecast by reviewing and weighting alternate forecast scenarios. Additionally, the ACL calculation includes subjective adjustments for qualitative risk factors that are likely to cause estimated credit losses to differ from historical experience. These qualitative adjustments may increase or reduce reserve levels and include adjustments for lending management experience and risk tolerance, loan review and audit results, asset quality and portfolio trends, loan portfolio growth and industry concentrations. The Company has elected to exclude AIR from the allowance for credit losses calculation. When a loan is placed on non-accrual, any recorded AIR is reversed against interest income. The determination and application of the ACL accounting policy involves judgments, estimates, and uncertainties that are subject to change. Changes in these assumptions, estimates or the conditions surrounding them may have a material impact on our financial condition, liquidity or results of operations. Various regulatory agencies, as an integral part of the examination process, periodically review the ACL. Such agencies may require the Company to recognize additions to the ACL or reserve increases to adversely graded classified loans based on their judgments about information available to them at the time of their examinations. The ACL is decreased by net charge-offs and is increased by provisions for loan losses that are charged to the statements of operations. Charge-offs, if any, are typically measured for each loan based on a thorough analysis of the most probable source of repayment, such as the present value of the loan’s expected future cash flows, the loan’s estimated fair value, or the estimated fair value of the underlying collateral less costs of disposition for collateral-dependent loans. When it is determined that specific loans, or portions thereof, are uncollectible, these amounts are charged off against the ACL. The Company uses an internal risk rating system to indicate credit quality in the loan portfolio. The risk rating system is applied to all loans and uses a series of grades, which reflect management’s assessment of the risk attributable to loans based on an analysis of the borrower’s financial condition and ability to meet contractual debt service requirements. Loans that management perceives to have acceptable risk are categorized as “Pass” loans. The “Special Mention” loans represent loans that have potential credit weaknesses that deserve management’s close attention. Special mention loans include borrowers that have potential weaknesses or unwarranted risks that, unless corrected, may threaten the borrower’s ability to meet debt requirements. However, these borrowers are still believed to have the ability to respond to and resolve the financial issues that threaten their financial situation. Loans classified as “Substandard” are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans have a distinct possibility of loss if the deficiencies are not corrected. “Doubtful” loans are loans that management believes the collection of payments in accordance with the terms of the loan agreement is highly questionable and improbable. Credit quality indicators are reviewed and updated in accordance with internal policy based on loan balance and risk rating. Interest accrual is discontinued on doubtful loans and certain substandard loans. Unfunded loan commitments In addition to the ACL for funded loans, the Company maintains reserves to cover the risk of loss associated with off-balance sheet unfunded loan commitments. The allowance for off-balance sheet credit losses is maintained within the other liabilities in the statements of financial condition. Under the CECL framework, adjustments to this liability are recorded as provision for credit losses in the statements of operations. Unfunded loan commitment balances are evaluated by loan class and further segregated by revolving and non-revolving commitments. In order to establish the required level of reserve, the Company applies average historical utilization rates and ACL loan model loss rates for each loan class to the outstanding unfunded commitment balances. g) Premises and equipment 7 3 incurred. The Company reviews premises and equipment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. An impairment loss is recognized when the sum of the undiscounted future net cash flows expected to result from the use of the asset and its eventual disposal is less than its carrying amount. Property and equipment that meet the held-for-sale criteria is recorded at the lower of its carrying amount or fair value less cost to sell and depreciation is ceased. h) Goodwill and intangible assets Intangible assets that have finite useful lives, such as core deposit intangibles, are amortized over their estimated useful lives. The Company’s core deposit intangible assets represent the value of the anticipated future cost savings that will result from the acquired core deposit relationships versus an alternative source of funding. Judgment may be used in assessing goodwill and intangible assets for impairment. Estimates of fair value are based on projections of revenues, operating costs and cash flows of the reporting unit considering historical and anticipated future results, general economic and market conditions, as well as the impact of planned business or operational strategies. The valuations use a combination of present value techniques to measure fair value considering market factors. Additionally, judgment is used in determining the useful lives of finite-lived intangible assets. Adverse changes in the economic environment, operations of the reporting unit, or changes in judgments and projections could result in a significantly different estimate of the fair value of the reporting unit and could result in an impairment of goodwill and/or intangible assets. MSRs associated with loans originated and sold, where servicing is retained, are initially capitalized at fair value and included in intangible assets in the consolidated statements of financial condition. For subsequent measurement purposes, the Company measures servicing assets based on the lower of cost or market using the amortization method. The values of these capitalized servicing rights are amortized as an offset to the loan servicing income earned in relation to the servicing revenue expected to be earned. The carrying values of these rights are reviewed quarterly for impairment based on the fair value of those assets. For purposes of impairment evaluation and measurement, management stratifies MSRs based on the predominant risk characteristics of the underlying loans, including loan type and loan term. If, by individual stratum, the carrying amount of these MSRs exceeds fair value, a valuation allowance is established and the impairment is recognized in mortgage banking income. If the fair value of impaired MSRs subsequently increases, management recognizes the increase in fair value in current period mortgage banking income and, through a reduction in the valuation allowance, adjusts the carrying value of the MSRs to a level not in excess of amortized cost. Small Business Administration servicing assets are related to loans sold where servicing is retained in exchange for a fee. SBA servicing assets are valued utilizing a discounted cash flow methodology based upon assumptions regarding retained balances, such as account retention rate and growth rates, interest expense including maintenance costs, alternative costs of funding, pre-payment speeds and defaults discounted at a market-based discount rate. The valuation methodology was applied to each loan individually based upon its specific characteristics. The SBA servicing rights asset will be amortized over the life of the underlying portfolio. i) Reserve for Mortgage Loan Repurchase Losses– be required to repurchase the mortgage loans with identified defects, indemnify the investor or insurer, or reimburse the investor for credit loss incurred on the loan (collectively “repurchase”) in the event of a material breach of such contractual representations or warranties. Risk associated with potential repurchases or other forms of settlement is managed through underwriting and quality assurance practices. The Company establishes mortgage repurchase reserves related to various representations and warranties that reflect management’s estimate of losses based on a combination of factors. Such factors incorporate actual and historic loss history, delinquency trends or other deficiencies found in the portfolio and economic conditions. The Company establishes a reserve at the time loans are sold and updates the reserve estimate quarterly during the estimated loan life. The repurchase reserve is included in other liabilities in the consolidated statements of financial condition. j) Other real estate owned k) Bank-owned life insurance l) Securities purchased under agreements to resell and securities sold under agreements to repurchase m) Stock-based compensation The fair value of stock options is measured using a Black-Scholes model. The fair value of time-based restricted stock awards and performance stock units with performance based vesting criteria is based on the Company’s stock price on the date of grant. The fair value of performance stock units with market-based vesting criteria is measured using a Monte Carlo simulation model. Compensation expense for the portion of the awards that contain performance and service vesting conditions is recognized over the requisite service period based on the fair value of the awards on the grant date. Compensation expense for the portion of the awards that contain a market vesting condition is recognized over the derived service period based on the fair value of the awards on the grant date. The amortization of stock-based compensation reflects any estimated forfeitures, and the expense realized in subsequent periods may be adjusted to reflect the actual forfeitures realized. The outstanding stock options primarily carry a maximum contractual term of ten years. To the extent that any award is forfeited, surrendered, terminated, expires, or lapses without being vested or exercised, the shares of stock subject to such award not delivered are again made available for awards under the Plan. Excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) are recognized in the consolidated statements of operations as a component of income tax expense or benefit and are classified as an operating activity within the Company’s consolidated statements of cash flows. The tax effects of exercised, expired or vested awards are treated as discrete items in the reporting period in which they occur and may result in increased volatility in our effective tax rate. Cash paid by the Company when directly withholding shares for tax withholding purposes is classified as a financing activity in the consolidated statements of cash flows. n) Income taxes Deferred tax assets and liabilities are recognized for temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. Deferred tax assets and liabilities are adjusted for the effects of changes in tax rates in the period of change. The Company establishes a valuation allowance when management believes, based on the weight of available evidence, it is more likely than not that some portion of the deferred tax assets will not be realized. The Company recognizes and measures income tax benefits based upon a two-step model: 1) a tax position must be more likely than not to be sustained based solely on its technical merits in order to be recognized; and 2) the benefit is measured as the largest dollar amount of that position that is more likely than not to be sustained upon settlement. The difference between the benefit recognized for a position in this model and the tax benefit claimed on a tax return is treated as an unrecognized tax benefit. The Company recognizes income tax related interest and penalties in other non-interest expense. o) Earnings per share p) Interest Rate Swap Derivatives The Company offers interest rate swap products to certain of its clients to manage potential changes in interest rates. Each contract between the Company and a client is offset with a contract between the Company and an institutional counterparty, thus minimizing the Company's exposure to rate changes. The Company's portfolio consists of a “matched book,” and as such, changes in fair value of the swap pairs will largely offset in earnings. In accordance with applicable accounting guidance, if certain conditions are met, a derivative may be designated as (1) a hedge of the exposure to changes in the fair value of a recognized asset or liability, or of an unrecognized firm commitment, that are attributable to a particular risk (referred to as a fair value hedge) or (2) a hedge of the exposure to variability in the cash flows of a recognized asset or liability, or of a forecasted transaction, that is attributable to a particular risk (referred to as a cash flow hedge). The Company documents all hedging relationships at the inception of each hedging relationship and uses industry accepted methodologies and ranges to determine the effectiveness of each hedge. The fair value of the hedged item is calculated using the estimated future cash flows of the hedged item and applying discount rates equal to the market interest rate for the hedged item at the inception of the hedging relationship (inception benchmark interest rate plus an inception credit spread), adjusted for changes in the designated benchmark interest rate thereafter. q) Treasury stock to additional paid-in capital in the consolidated statements of financial condition. If the reissuance price is less than the cost basis (loss), the difference is recorded to additional paid-in capital to the extent there is a cumulative treasury stock paid-in capital balance. Any loss in excess of the cumulative treasury stock paid-in capital balance is charged to retained earnings. r) Acquisition activities Identifiable intangible assets are recognized separately if they arise from contractual or other legal rights or if they are separable (i.e., capable of being sold, transferred, licensed, rented, or exchanged separately from the entity). The depositor relationship related to deposit liabilities, as well as the client relationship related to assets under management, known as the core deposit and wealth management intangible assets, respectively, may be exchanged in observable exchange transactions. As a result, the core deposit and wealth management intangible assets are considered identifiable, because the separability criterion has been met. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2022 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | Note 3 Recent Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform Facilitation of the Effects of Reference Rate Reform on Financial Reporting Reference Rate Reform Deferral of the Sunset Date of Topic 848 Financial Instruments - Credit Losses Measurement of Credit Losses on Financial Instruments 2016-13. Upon adoption, the Company recognized a $5.8 million increase in the allowance for credit losses with a corresponding reduction to retained earnings, net of tax, of $4.6 million. Since the investment securities portfolio was comprised of mortgage-backed securities issued by government sponsored entities as of January 1, 2020, no credit loss allowance was required upon adoption. Other Pronouncements Intangibles - Goodwill and Other Simplifying the Test for Goodwill Impairment Fair Value Measurement Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement |
Acquisition Activities
Acquisition Activities | 12 Months Ended |
Dec. 31, 2022 | |
Acquisition Activities | |
Acquisition Activities | Note 4 Acquisition Activities During 2022, the Company completed the acquisitions of Community Bancorportion, the bank holding company for Rock Canyon Bank, and Bancshares of Jackson Hole, the bank holding company for Bank of Jackson Hole. The Company determined that the acquisitions constitute business combinations as defined in ASC Topic 805, Business Combinations Fair Value Measurements and Disclosures Rock Canyon Bank On September 1, 2022, the Company completed its acquisition of Community Bancorporation, the bank holding company of Utah-based Rock Canyon Bank. Immediately following the completion of the acquisition, RCB merged into NBH Bank. Pursuant to the merger agreement executed in April 2022, the Company paid $16.1 million of cash consideration and issued 3,096,745 shares of the Company’s Class A common stock in exchange for all of the outstanding common stock of Community Bancorporation. The transaction was valued at $140.4 million in the aggregate, based on the Company’s closing price of $40.13 on August 31, 2022. The acquisition added seven banking centers to the Company’s footprint within the Provo and Greater Salt Lake City regions. RCB acquisition-related costs totaled $12.3 million for the year ended December 31, 2022, including a Day 1 CECL provision expense of $5.4 million. The results of RCB are included in the results of the Company subsequent to the acquisition date. The table below summarizes preliminary net assets acquired (at fair value) and consideration transferred in connection with the RCB acquisition: September 1, 2022 Assets: Cash and due from banks $ 260,883 Investment securities available-for-sale 402 Non-marketable securities 977 Loans, net 535,197 Loans held for sale 3,069 Premises and equipment 3,413 Core deposit and other intangibles 16,463 Other assets 11,749 Total assets acquired 832,153 Liabilities: Total deposits 734,480 Other liabilities 10,115 Total liabilities assumed 744,595 Identifiable net assets acquired $ 87,558 Consideration: NBHC common stock paid, closing price of $40.13 on August 31, 2022 $ 124,272 Cash 16,141 Total 140,413 Goodwill $ 52,855 In connection with the RCB acquisition, the Company recorded $52.9 million of goodwill. The amount of goodwill recorded reflects the expanded market presence, synergies and operational efficiencies that are expected to result from the acquisition. The following is a description of the methods used to determine the fair values of significant assets and liabilities presented above: Cash and due from banks Loans, net The fair value of loans were based on a discounted cash flow methodology that considered the loans’ underlying characteristics including account type, remaining terms of loan, annual interest rates or coupon, interest types, past delinquencies, timing of principal and interest payments, current market rates, loan to value ratios, loss exposure and remaining balance. The discount rates applied were based upon a build-up approach considering the alternative cost of funds, capital charges, servicing costs, and a liquidity premium. Loans were aggregated according to similar characteristics when applying the valuation method. Core deposit and other intangibles The core deposit intangible will be amortized straight-line over ten years, and the SBA servicing rights asset will be amortized over the life of the underlying portfolio. Deposits The fair value of the acquired assets and liabilities noted in the table may change during the provisional period, which may last up to twelve months subsequent to the acquisition date. The Company may obtain additional information to refine the valuation of the acquired assets and liabilities and adjust the recorded fair value. Accounting for acquired loans A Day 1 CECL allowance for credit losses on the non-PCD loans was recorded through provision for credit loss expense within the consolidated statements of operations. At the date of acquisition, of the $537.7 million of loans acquired from RCB, $11.1 million, or 2.1% of RCB’s loan portfolio, were accounted for as PCD loans. The gross contractual amounts receivable of PCD loans, inclusive of all principal and interest, was $13.8 million, including $2.1 million of loans previously charged off by RCB. The Company’s best estimate of the contractual principal and interest cash flows for PCD loans not expected to be collected was $4.5 million, including $2.1 million of loans previously charged off by RCB. The following table provides a summary of PCD loans purchased as part of the RCB acquisition as of the acquisition date: Commercial Commercial real estate non-owner occupied Residential real estate Consumer Total Unpaid principal balance $ 12,079 $ 220 $ 843 $ 3 $ 13,145 PCD allowance for credit loss at acquisition (2,257) (2) (215) — (2,474) (Discount) premium on acquired loans (787) 19 (5) — (773) Loans previously charged-off by RCB (2,051) — — (3) (2,054) Purchase price of PCD loans $ 6,984 $ 237 $ 623 $ — $ 7,844 The Company has determined that it is impractical to report the amounts of revenue and earnings of legacy RCB since the acquisition date due to the integration of certain processes occurring shortly after the acquisition date. Such amounts would require significant estimates that cannot be objectively made. Bank of Jackson Hole On October 1, 2022, the Company completed its acquisition of Bancshares of Jackson Hole, the bank holding company of Wyoming-based Bank of Jackson Hole. Pursuant to the merger agreement executed in March 2022, the Company paid $51.0 million of cash consideration and issued 4,391,964 shares of the Company’s Class A common stock in exchange for all of the outstanding common stock of Bancshares of Jackson Hole. The transaction was valued at $213.4 million in the aggregate, based on the Company’s closing price of $36.99 on September 30, 2022. The acquisition added 12 banking centers with operations in Wyoming and Idaho. Immediately following the closing of the acquisition, BOJH sold substantially of all its assets and liabilities to NBH Bank, with the exception of assets and liabilities related to its trust business. Effective October 1, 2022, BOJH was renamed as Bank of Jackson Hole Trust. BOJH acquisition-related costs totaled $24.5 million for the year ended December 31, 2022, including a Day 1 CECL provision expense of $16.3 million. The results of BOJH are included in the results of the Company subsequent to the acquisition date. The table below summarizes preliminary net assets acquired (at fair value) and consideration transferred in connection with the BOJH acquisition: October 1, 2022 Assets: Cash and due from banks $ 40,509 Investment securities 203,728 Non-marketable securities 3,104 Loans, net 1,185,699 Loans held for sale 504 Premises and equipment 30,318 Core deposit and other intangibles 30,696 Other assets 31,970 Total assets acquired 1,526,528 Liabilities: Total deposits 1,375,593 Long-term debt 39,229 Fed funds purchased 25 Other liabilities 9,483 Total liabilities assumed 1,424,330 Identifiable net assets acquired $ 102,198 Consideration: NBHC common stock paid, closing price of $36.99 on September 30, 2022 $ 162,459 Cash 50,989 Total 213,448 Goodwill $ 111,250 In connection with the BOJH acquisition, the Company recorded $111.3 million of goodwill. The amount of goodwill recorded reflects the expanded market presence, synergies and operational efficiencies that are expected to result from the acquisition. The Company transferred $75.3 million of available-for-sale securities to held-to-maturity as of Day 1. The following is a description of the methods used to determine the fair values of significant assets and liabilities presented above: Cash and due from banks Investment securities Loans, net The fair value of loans were based on a discounted cash flow methodology that considered the loans’ underlying characteristics including account type, remaining terms of loan, annual interest rates or coupon, interest types, past delinquencies, timing of principal and interest payments, current market rates, loan to value ratios, loss exposure and remaining balance. The discount rates applied were based upon a build-up approach considering the alternative cost of funds, capital charges, servicing costs, and a liquidity premium. Loans were aggregated according to similar characteristics when applying the valuation method. Core deposit and other intangibles including maintenance costs, and alternative costs of funding. The discount rate applied is consistent to that applied to loans above. The fair value for the wealth management client relationships intangible was based on a multi-period excess earnings method (“MPEEM”), which utilized a contributory asset analysis to ascertain a fair return on investment of all the assets used in the production of income associated with the specific intangible asset. The sum of the resulting net, or excess, earnings attributable to the client relationships was then discounted to present value utilizing an appropriate discount rate. The core deposit intangible and wealth management intangible will be amortized straight-line over ten years. Deposits Long-term debt The fair value of the acquired assets and liabilities noted in the table may change during the provisional period, which may last up to twelve months subsequent to the acquisition date. The Company may obtain additional information to refine the valuation of the acquired assets and liabilities and adjust the recorded fair value. Accounting for acquired loans A Day 1 CECL allowance for credit losses on the non-PCD loans was recorded through provision for credit loss expense within the consolidated statements of operations. At the date of acquisition, of the $1.2 billion of loans acquired from BOJH, $13.9 million, or 1.1% of BOJH’s loan portfolio, were accounted for as PCD loans. The gross contractual amounts receivable of PCD loans, inclusive of all principal and interest, was $14.0 million, including $0.5 million of loans previously charged off by BOJH. The Company’s best estimate of the contractual cash flows for PCD loans not expected to be collected was $3.8 million. The following table provides a summary of PCD loans purchased as part of the BOJH acquisition as of the acquisition date: Commercial Commercial real estate non-owner occupied Residential real estate Consumer Total Unpaid principal balance $ 5,061 $ 8,353 $ 476 $ 12 $ 13,902 PCD allowance for credit loss at acquisition (151) (3,557) (55) (1) (3,764) Discount on acquired loans (336) (226) (16) — (578) Purchase price of PCD loans $ 4,574 $ 4,570 $ 405 $ 11 $ 9,560 The Company has determined that it is impractical to report the amounts of revenue and earnings of legacy BOJH since the acquisition date due to the integration of certain processes occurring shortly after the acquisition date. Such amounts would require significant estimates that cannot be objectively made. Unaudited Pro forma information The following unaudited pro forma information combines the historical results of RCB, BOJH and the Company. The pro forma financial information does not include the potential impacts of possible business model changes, current market conditions, revenue enhancements, expense efficiencies, or other factors. If the RCB and BOJH acquisitions had been completed on January 1, 2021, pro forma total revenue for the Company would have been approximately $419.1 million and $398.7 million for the years ended December 31, 2022 and 2021, respectively. Pro forma net income for the Company would have been approximately $120.5 million and $103.5 million for the years ended December 31, 2022 and 2021, respectively. For the year ended December 31, 2022, pro forma basic and diluted earnings per share for the Company would have been $3.19 and $3.17, respectively. For the year ended December 31, 2021, pro forma basic and diluted earnings per share for the Company would have been $2.70 and $2.68, respectively. For the year ended December 31, 2022, the pro forma information reflects adjustments made to exclude acquisition-related expenses of the Company totaling $36.8 million and estimated acquisition-related expenses incurred by RCB and BOJH prior to the acquisition date totaling $4.9 million. Day 1 provision expense was included in 2021 to reflect the assumption of the acquisition timing noted above. Adjustments also included estimated net accretion of loan and investment marks of $8.8 million and $11.8 million for the years ended December 31, 2022 and 2021, respectively, estimated net amortization of fair value marks on long term debt of $0.2 million and $0.2 million for the years ended December 31, 2022 and 2021, respectively, estimated accretion of fair value marks on time deposits of $0.2 million and $0.2 million for the years ended December 31, 2022 and 2021, respectively, and estimated amortization of acquired identifiable intangibles of $3.3 million and $4.4 million for the years ended December 31, 2022 and 2021, respectively. The pro forma information is theoretical in nature and not necessarily indicative of future consolidated results of operations of the Company or the consolidated results of operations which would have resulted had the Company acquired RCB and BOJH during the periods presented. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2022 | |
Investment Securities | |
Investment Securities | Note 5 Investment Securities The Company’s investment securities portfolio is comprised of available-for-sale and held-to-maturity investment securities. These investment securities totaled $1.4 billion at December 31, 2022 and included $0.7 billion of available-for-sale securities and $0.7 billion of held-to-maturity securities. At December 31, 2021, investment securities totaled $1.3 billion and included $0.7 billion of available-for-sale securities and $0.6 billion of held-to-maturity securities. Available-for-sale Available-for-sale securities are summarized as follows as of the dates indicated: December 31, 2022 Amortized Gross Gross cost unrealized gains unrealized losses Fair value U.S. Treasury securities $ 74,031 $ — $ (2,643) $ 71,388 Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises 263,939 1 (37,809) 226,131 Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 478,866 — (72,940) 405,926 Municipal securities 155 — (2) 153 Corporate debt 2,000 — (80) 1,920 Other securities 771 — — 771 Total investment securities available-for-sale $ 819,762 $ 1 $ (113,474) $ 706,289 December 31, 2021 Amortized Gross Gross cost unrealized gains unrealized losses Fair value Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ 231,523 $ 1,436 $ (5,263) $ 227,696 Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 467,490 1,889 (8,045) 461,334 Municipal securities 230 7 — 237 Corporate debt 2,000 111 — 2,111 Other securities 469 — — 469 Total investment securities available-for-sale $ 701,712 $ 3,443 $ (13,308) $ 691,847 During 2022 and 2021, purchases of available-for-sale securities totaled $259.8 million and $288.6 million, respectively. Maturities and paydowns of available-for-sale securities during 2022 and 2021 totaled $141.9 million and $235.9 million, respectively. The Company sold $128.4 million of available-for-sale securities acquired through the BOJH acquisition. The remainder of the available-for-sale securities from the acquisition were transferred to held-to-maturity. There were no sales of available-for-sale securities during 2021. At December 31, 2022 and 2021, the Company’s available-for-sale investment portfolio was primarily comprised of U.S. Treasury securities and mortgage-backed securities. All mortgage-backed securities were backed by GSE collateral such as FHLMC and FNMA and the government owned agency GNMA. The tables below summarize the available-for-sale securities with unrealized losses as of the dates shown, along with the length of the impairment period: December 31, 2022 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses U.S. Treasury securities $ 71,388 $ (2,643) $ — $ — $ 71,388 $ (2,643) Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises 83,748 (6,686) 141,272 (31,123) 225,020 (37,809) Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 196,449 (22,809) 209,477 (50,131) 405,926 (72,940) Municipal securities 153 (2) — — 153 (2) Corporate debt 1,920 (80) — — 1,920 (80) Total $ 353,658 $ (32,220) $ 350,749 $ (81,254) $ 704,407 $ (113,474) December 31, 2021 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ 163,579 $ (4,404) $ 22,852 $ (859) $ 186,431 $ (5,263) Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 237,759 (5,593) 48,750 (2,452) 286,509 (8,045) Total $ 401,338 $ (9,997) $ 71,602 $ (3,311) $ 472,940 $ (13,308) Management evaluated all of the available-for-sale securities in an unrealized loss position at December 31, 2022 and December 31, 2021. The portfolio included 244 securities, which were in an unrealized loss position at December 31, 2022, compared to 49 securities at December 31, 2021. The unrealized losses in the Company’s investment portfolio at December 31, 2022 and 2021 were caused by changes in interest rates. The Company has no intention to sell these securities and believes it will not be required to sell the securities before the recovery of their amortized cost. Management believes that default of the available-for-sale securities is highly unlikely. FHLMC, FNMA and GNMA guaranteed mortgage-backed securities and U.S. Treasury securities have a long history of zero credit losses, an explicit guarantee by the U.S. government (although limited for FNMA and FHLMC securities) and yields that generally trade based on market views of prepayment and liquidity risk rather than credit risk. Certain securities are pledged as collateral for public deposits, securities sold under agreements to repurchase and to secure borrowing capacity at the FRB, if needed. The fair value of available-for-sale investment securities pledged as collateral totaled $484.9 million and $363.4 million at December 31, 2022 and 2021, respectively. The Company may also pledge available-for-sale investment securities as collateral for FHLB advances. No securities were pledged for this purpose at December 31, 2022 or 2021. A summary of the available-for-sale securities by maturity is shown in the following table as of December 31, 2022. Mortgage-backed securities may have actual maturities that differ from contractual maturities depending on the repayment characteristics and experience of the underlying financial instruments and are therefore not included in the table below. Additionally, the Company holds other available-for-sale securities with an amortized cost and fair value of $0.8 million as of December 31, 2022 that have no stated contractual maturity date. December 31, 2022 Weighted Amortized Cost Fair Value Average Yield U.S. Treasury securities After one but within five years $ 74,031 $ 71,388 2.54% Municipal securities After one but within five years 155 153 3.17% Corporate debt After five but within ten years 2,000 1,920 5.87% As of December 31, 2022 and December 31, 2021, AIR from available-for-sale investment securities totaled $1.5 million and $1.0 million, respectively, and was included within other assets in the consolidated statements of financial condition. Held-to-maturity Held-to-maturity investment securities are summarized as follows as of the dates indicated: December 31, 2022 Gross Gross Amortized unrealized unrealized cost gains losses Fair value U.S. Treasury securities $ 49,045 $ — $ (1,416) $ 47,629 Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises 339,815 163 (41,162) 298,816 Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 262,667 — (49,188) 213,479 Total investment securities held-to-maturity $ 651,527 $ 163 $ (91,766) $ 559,924 December 31, 2021 Gross Gross Amortized unrealized unrealized cost gains losses Fair value Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ 312,916 $ 2,061 $ (5,363) $ 309,614 Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 296,096 122 (6,572) 289,646 Total investment securities held-to-maturity $ 609,012 $ 2,183 $ (11,935) $ 599,260 During 2022 and 2021, purchases of held-to-maturity securities totaled $101.7 million and $397.8 million, respectively. Maturities and paydowns of held-to-maturity securities totaled $133.4 million and $161.9 million during 2022 and 2021, respectively. The Company sold a portion of the available-for-sale securities acquired through the BOJH acquisition. The Company transferred the remaining $75.3 million of available-for-sale securities acquired through the BOJH acquisition to held-to-maturity. The held-to-maturity portfolio included 129 securities which were in an unrealized loss position at December 31, 2022, compared to 48 securities at December 31, 2021. The tables below summarize the held-to-maturity securities with unrealized losses as of the dates shown, along with the length of the impairment period: December 31, 2022 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses U.S. Treasury securities $ 47,629 $ (1,416) $ — $ — $ 47,629 $ (1,416) Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises 83,323 (3,804) 182,159 (37,358) 265,482 (41,162) Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 34,704 (1,145) 178,776 (48,043) 213,480 (49,188) Total $ 165,656 $ (6,365) $ 360,935 $ (85,401) $ 526,591 $ (91,766) December 31, 2021 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ 197,095 $ (3,499) $ 45,353 $ (1,864) $ 242,448 $ (5,363) Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 276,098 (6,572) — — 276,098 (6,572) Total $ 473,193 $ (10,071) $ 45,353 $ (1,864) $ 518,546 $ (11,935) The Company does not measure expected credit losses on a financial asset, or group of financial assets, in which historical credit loss information adjusted for current conditions and reasonable and supportable forecasts results in an expectation that nonpayment of the amortized cost basis is zero. Management evaluated held-to-maturity securities noting they are backed by loans guaranteed by either U.S. government agencies or U.S. government sponsored entities, and management believes that default is highly unlikely given this governmental backing and long history without credit losses. Additionally, management notes that yields on which the portfolio generally trades are based upon market views of prepayment and liquidity risk and not credit risk. The Company has no intention to sell any held-to-maturity securities and believes it will not be required to sell any held-to-maturity securities before the recovery of their amortized cost. Certain securities are pledged as collateral for public deposits, securities sold under agreements to repurchase and to secure borrowing capacity at the FRB, if needed. The carrying value of held-to-maturity investment securities pledged as collateral totaled $355.3 million and $147.3 million at December 31, 2022 and December 31, 2021, respectively. The Company may also pledge held-to-maturity investment securities as collateral for FHLB advances. No held-to-maturity investment securities were pledged for this purpose at December 31, 2022 or 2021. A summary of the held-to-maturity securities by maturity is shown in the following table as of December 31, 2022. Actual maturities of mortgage-backed securities may differ from scheduled maturities depending on the repayment characteristics and experience of the underlying financial instruments and are therefore not included in the table below. December 31, 2022 Weighted Amortized Cost Fair Value Average Yield U.S. Treasury securities After one but within five years $ 49,045 $ 47,629 3.14% Total $ 49,045 $ 47,629 As of December 31, 2022 and December 31, 2021, AIR from held-to-maturity investment securities totaled $1.1 million and $0.9 million, respectively, and was included within other assets in the statements of financial condition. |
Non-marketable Securities
Non-marketable Securities | 12 Months Ended |
Dec. 31, 2022 | |
Non-marketable Securities | |
Non-marketable Securities | Note 6 Non-marketable Securities Non-marketable securities totaled $89.0 million and $50.7 million at December 31, 2022 and 2021, respectively, and included FRB stock, FHLB stock and other non-marketable securities. Proceeds from non-marketable securities totaled $4.2 million and $2.0 million during the years ended December 31, 2022 and 2021, respectively. Proceeds during 2022 included $4.0 million from redemptions of FHLB stock. At December 31, 2022, the Company held $20.3 million of FHLB stock and $18.1 million of FRB stock for regulatory or debt facility purposes. During the year ended December 31, 2022, purchases of FHLB and FRB stock totaled $23.8 million, and the FHLB and FRB stock from the acquisitions of RCB and BOJH totaled $4.0 million. Redemptions of FHLB stock totaled $4.0 million during 2022. At December 31, 2021, the Company held $0.7 million of FHLB stock and $13.9 million of FRB stock. There were no purchases of FHLB or FRB stock during 2021. These are restricted securities which, lacking a market, are carried at cost. There have been no identified events or changes in circumstances that may have an adverse effect on the investments carried at cost. At December 31, 2022, other non-marketable securities totaled $50.7 million and consisted of equity method investments totaling $21.7 million and convertible preferred stock without a readily determinable fair value totaling $29.0 million. At December 31, 2021, other non-marketable securities totaled $36.2 million and consisted of equity method investments totaling $14.2 million and convertible preferred stock without a readily determinable fair value totaling $22.0 million. During the years ended December 31, 2022 and 2021, purchases of other non-marketable securities totaled $13.5 million and $27.7 million, respectively. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2022 | |
Loans | |
Loans | Note 7 Loans The loan portfolio is comprised of loans originated by the Company and loans that were acquired in connection with the Company’s acquisitions. The tables below show the loan portfolio composition including carrying value by segment as of the dates shown. The carrying value of loans is net of discounts, fees, costs and fair value marks of $38.8 million and $9.4 million at December 31, 2022 and 2021, respectively. December 31, 2022 Total loans % of total Commercial $ 4,251,780 58.9% Commercial real estate non-owner occupied 1,696,050 23.5% Residential real estate 1,251,281 17.3% Consumer 21,358 0.3% Total $ 7,220,469 100.0% December 31, 2021 Total loans % of total Commercial $ 3,162,417 70.1% Commercial real estate non-owner occupied 664,729 14.7% Residential real estate 668,656 14.8% Consumer 17,581 0.4% Total $ 4,513,383 100.0% Information about delinquent and non-accrual loans is shown in the following tables at December 31, 2022 and 2021: December 31, 2022 Greater 30-89 days than 90 days Total past past due and past due and Non-accrual due and accruing accruing loans non-accrual Current Total loans Commercial: Commercial and industrial $ 919 $ 53 $ 2,601 $ 3,573 $ 2,021,262 $ 2,024,835 Municipal and non-profit — — — — 959,626 959,626 Owner occupied commercial real estate — — 6,551 6,551 906,789 913,340 Food and agribusiness 699 — 2,148 2,847 351,132 353,979 Total commercial 1,618 53 11,300 12,971 4,238,809 4,251,780 Commercial real estate non-owner occupied: Construction — — — — 341,325 341,325 Acquisition/development — — — — 129,102 129,102 Multifamily — — — — 213,677 213,677 Non-owner occupied 629 — 685 1,314 1,010,632 1,011,946 Total commercial real estate 629 — 685 1,314 1,694,736 1,696,050 Residential real estate: Senior lien 446 — 4,174 4,620 1,149,728 1,154,348 Junior lien 255 — 341 596 96,337 96,933 Total residential real estate 701 — 4,515 5,216 1,246,065 1,251,281 Consumer 38 42 12 92 21,266 21,358 Total loans $ 2,986 $ 95 $ 16,512 $ 19,593 $ 7,200,876 $ 7,220,469 December 31, 2022 Non-accrual loans Non-accrual loans with a related with no related allowance for allowance for Non-accrual credit loss credit loss loans Commercial: Commercial and industrial $ 1,640 $ 961 $ 2,601 Municipal and non-profit — — — Owner occupied commercial real estate 693 5,858 6,551 Food and agribusiness 455 1,693 2,148 Total commercial 2,788 8,512 11,300 Commercial real estate non-owner occupied: Construction — — — Acquisition/development — — — Multifamily — — — Non-owner occupied 685 — 685 Total commercial real estate 685 — 685 Residential real estate: Senior lien 3,019 1,155 4,174 Junior lien 341 — 341 Total residential real estate 3,360 1,155 4,515 Consumer 12 — 12 Total loans $ 6,845 $ 9,667 $ 16,512 December 31, 2021 Greater 30-89 days than 90 days Total past past due and past due and Non-accrual due and accruing accruing loans non-accrual Current Total loans Commercial: Commercial and industrial $ 481 $ — $ 1,490 $ 1,971 $ 1,494,176 $ 1,496,147 Municipal and non-profit 202 — — 202 928,843 929,045 Owner occupied commercial real estate 207 — 4,525 4,732 528,904 533,636 Food and agribusiness 89 — 64 153 203,436 203,589 Total commercial 979 — 6,079 7,058 3,155,359 3,162,417 Commercial real estate non-owner occupied: Construction — — — — 86,126 86,126 Acquisition/development — — — — 9,609 9,609 Multifamily — — — — 92,174 92,174 Non-owner occupied 94 217 121 432 476,388 476,820 Total commercial real estate 94 217 121 432 664,297 664,729 Residential real estate: Senior lien 399 198 4,251 4,848 609,780 614,628 Junior lien 179 — 374 553 53,475 54,028 Total residential real estate 578 198 4,625 5,401 663,255 668,656 Consumer 36 5 7 48 17,533 17,581 Total loans $ 1,687 $ 420 $ 10,832 $ 12,939 $ 4,500,444 $ 4,513,383 December 31, 2021 Non-accrual loans Non-accrual loans with a related with no related allowance for allowance for Non-accrual credit loss credit loss loans Commercial: Commercial and industrial $ 1,490 $ — $ 1,490 Municipal and non-profit — — — Owner occupied commercial real estate 4,525 — 4,525 Food and agribusiness 64 — 64 Total commercial 6,079 — 6,079 Commercial real estate non-owner occupied: Construction — — — Acquisition/development — — — Multifamily — — — Non-owner occupied 121 — 121 Total commercial real estate 121 — 121 Residential real estate: Senior lien 3,274 977 4,251 Junior lien 374 — 374 Total residential real estate 3,648 977 4,625 Consumer 7 — 7 Total loans $ 9,855 $ 977 $ 10,832 Loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement remains unpaid after the due date of the scheduled payment. Non-accrual loans include non-accrual loans and TDRs on non-accrual status. There was no interest income recognized from non-accrual loans during the years ended December 31, 2022 and 2021. The Company’s internal risk rating system uses a series of grades, which reflect our assessment of the credit quality of loans based on an analysis of the borrower's financial condition, liquidity and ability to meet contractual debt service requirements and are categorized as “Pass”, “Special mention”, “Substandard” and “Doubtful”. For a description of the general characteristics of the risk grades, refer to note 2 Summary of Significant Accounting Policies. The amortized cost basis for all loans as determined by the Company’s internal risk rating system and year of origination is shown in the following tables as of December 31, 2022 and 2021: December 31, 2022 Revolving Revolving loans loans Origination year amortized converted 2022 2021 2020 2019 2018 Prior cost basis to term Total Commercial: Commercial and industrial: Pass $ 528,180 $ 351,003 $ 129,453 $ 95,003 $ 101,951 $ 88,038 $ 688,398 $ 17,883 $ 1,999,909 Special mention 66 137 388 2,887 588 4,440 3,512 — 12,018 Substandard 34 7 1,882 200 189 10,270 50 30 12,662 Doubtful — — 246 — — — — — 246 Total commercial and industrial 528,280 351,147 131,969 98,090 102,728 102,748 691,960 17,913 2,024,835 Municipal and non-profit: Pass 105,630 246,696 89,562 59,066 73,013 383,158 2,501 — 959,626 Total municipal and non-profit 105,630 246,696 89,562 59,066 73,013 383,158 2,501 — 959,626 Owner occupied commercial real estate: Pass 263,635 203,628 100,522 92,653 70,447 121,448 24,930 894 878,157 Special mention — 515 — 6,956 2,616 17,360 — — 27,447 Substandard — — 1,185 4,612 — 931 — 234 6,962 Doubtful — — — 85 108 581 — — 774 Total owner occupied commercial real estate 263,635 204,143 101,707 104,306 73,171 140,320 24,930 1,128 913,340 Food and agribusiness: Pass 36,505 23,907 25,285 11,035 19,689 31,210 191,785 1,663 341,079 Special mention — 204 4,573 — 3,486 195 1,750 — 10,208 Substandard — 1,747 — 12 — 324 — 173 2,256 Doubtful — 186 250 — — — — — 436 Total food and agribusiness 36,505 26,044 30,108 11,047 23,175 31,729 193,535 1,836 353,979 Total commercial 934,050 828,030 353,346 272,509 272,087 657,955 912,926 20,877 4,251,780 Commercial real estate non-owner occupied: Construction: Pass 106,197 139,012 56,489 14,387 — 213 25,027 — 341,325 Total construction 106,197 139,012 56,489 14,387 — 213 25,027 — 341,325 Acquisition/development: Pass 57,773 33,663 7,810 1,921 3,939 16,648 7,348 — 129,102 Total acquisition/development 57,773 33,663 7,810 1,921 3,939 16,648 7,348 — 129,102 Multifamily: Pass 99,988 22,022 17,658 39,547 17,358 16,009 1,095 — 213,677 Total multifamily 99,988 22,022 17,658 39,547 17,358 16,009 1,095 — 213,677 Non-owner occupied Pass 235,958 172,648 120,871 138,711 42,489 249,461 11,707 — 971,845 Special mention — — 7,313 4,048 3,947 12,658 — — 27,966 Substandard — — — — 629 7,912 — — 8,541 Doubtful — — 280 — — 3,314 — — 3,594 Total non-owner occupied 235,958 172,648 128,464 142,759 47,065 273,345 11,707 — 1,011,946 Total commercial real estate non-owner occupied 499,916 367,345 210,421 198,614 68,362 306,215 45,177 — 1,696,050 Residential real estate: Senior lien Pass 361,405 323,984 133,847 47,557 30,283 184,998 66,792 496 1,149,362 Special mention — — — — — 362 — — 362 Substandard 191 186 468 854 105 2,769 — — 4,573 Doubtful — — — — 51 — — — 51 Total senior lien 361,596 324,170 134,315 48,411 30,439 188,129 66,792 496 1,154,348 Junior lien Pass 6,429 5,977 3,010 4,163 1,726 3,773 69,059 1,286 95,423 Special mention — — — — — 351 — — 351 Substandard 9 — 89 — 54 242 305 251 950 Doubtful — — — — — — — 209 209 Total junior lien 6,438 5,977 3,099 4,163 1,780 4,366 69,364 1,746 96,933 Total residential real estate 368,034 330,147 137,414 52,574 32,219 192,495 136,156 2,242 1,251,281 Consumer Pass 8,576 4,816 2,209 607 282 531 4,292 33 21,346 Substandard 3 — — — — 5 4 — 12 Total consumer 8,579 4,816 2,209 607 282 536 4,296 33 21,358 Total loans $ 1,810,579 $ 1,530,338 $ 703,390 $ 524,304 $ 372,950 $ 1,157,201 $ 1,098,555 $ 23,152 $ 7,220,469 December 31, 2021 Revolving Revolving loans loans Origination year amortized converted 2021 2020 2019 2018 2017 Prior cost basis to term Total Commercial: Commercial and industrial: Pass $ 424,813 $ 155,268 $ 146,420 $ 128,002 $ 49,408 $ 18,529 $ 519,678 $ 5,975 $ 1,448,093 Special mention — 1,122 2,000 3,446 22,654 4,440 1,824 250 35,736 Substandard — 99 89 744 10,399 303 105 — 11,739 Doubtful — 375 — 54 49 101 — — 579 Total commercial and industrial 424,813 156,864 148,509 132,246 82,510 23,373 521,607 6,225 1,496,147 Municipal and non-profit: Pass 234,827 93,310 69,509 81,175 147,115 302,574 535 — 929,045 Total municipal and non-profit 234,827 93,310 69,509 81,175 147,115 302,574 535 — 929,045 Owner occupied commercial real estate: Pass 122,641 81,072 84,359 71,183 48,086 77,100 13,666 1,688 499,795 Special mention — — 9,155 3,864 1,429 13,443 — — 27,891 Substandard — 1,192 1,527 — 220 2,028 — — 4,967 Doubtful — 389 550 — — 44 — — 983 Total owner occupied commercial real estate 122,641 82,653 95,591 75,047 49,735 92,615 13,666 1,688 533,636 Food and agribusiness: Pass 11,245 20,606 6,966 21,427 2,443 24,047 107,978 24 194,736 Special mention — 4,670 1,234 — — 215 1,897 — 8,016 Substandard — — — — 259 578 — — 837 Total food and agribusiness 11,245 25,276 8,200 21,427 2,702 24,840 109,875 24 203,589 Total commercial 793,526 358,103 321,809 309,895 282,062 443,402 645,683 7,937 3,162,417 Commercial real estate non-owner occupied: Construction: Pass 39,584 10,047 29,496 — 222 — 6,777 — 86,126 Total construction 39,584 10,047 29,496 — 222 — 6,777 — 86,126 Acquisition/development: Pass 1,691 385 766 1,830 30 4,907 — — 9,609 Total acquisition/development 1,691 385 766 1,830 30 4,907 — — 9,609 Multifamily: Pass 3,101 32,619 2,184 15,977 193 37,713 — — 91,787 Special mention — — — — — 387 — — 387 Total multifamily 3,101 32,619 2,184 15,977 193 38,100 — — 92,174 Non-owner occupied Pass 59,060 58,964 122,452 18,425 92,349 95,265 557 — 447,072 Special mention — — 5,747 5,584 9,745 3,898 — — 24,974 Substandard — — — 729 — 4,045 — — 4,774 Total non-owner occupied 59,060 58,964 128,199 24,738 102,094 103,208 557 — 476,820 Total commercial real estate non-owner occupied 103,436 102,015 160,645 42,545 102,539 146,215 7,334 — 664,729 Residential real estate: Senior lien Pass 223,120 100,476 38,696 21,889 29,554 177,051 18,278 188 609,252 Special mention — — — — — 290 — — 290 Substandard 44 325 684 318 299 3,416 — — 5,086 Total senior lien 223,164 100,801 39,380 22,207 29,853 180,757 18,278 188 614,628 Junior lien Pass 1,320 2,150 2,731 1,639 951 3,209 40,921 328 53,249 Special mention — — — — — — 24 322 346 Substandard — 19 — 62 131 221 — — 433 Total junior lien 1,320 2,169 2,731 1,701 1,082 3,430 40,945 650 54,028 Total residential real estate 224,484 102,970 42,111 23,908 30,935 184,187 59,223 838 668,656 Consumer: Pass 8,815 3,528 1,241 631 131 557 2,653 19 17,575 Substandard — — — — — 6 — — 6 Total consumer 8,815 3,528 1,241 631 131 563 2,653 19 17,581 Total loans $ 1,130,261 $ 566,616 $ 525,806 $ 376,979 $ 415,667 $ 774,367 $ 714,893 $ 8,794 $ 4,513,383 Loans evaluated individually We evaluate loans individually when they no longer share risk characteristics with pooled loans. These loans include loans on non-accrual status, loans in bankruptcy, and TDRs as described below. If a specific allowance is warranted based on the borrower’s overall financial condition, the specific allowance is calculated based on discounted expected cash flows using the loan’s initial contractual effective interest rate or the fair value of the collateral less selling costs for collateral-dependent loans. A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. Management individually evaluates collateral-dependent loans with an amortized cost basis of $250 thousand or more and includes collateral-dependent loans less than $250 thousand within the general allowance population. The amortized cost basis of collateral-dependent loans over $250 thousand was as follows at December 31, 2022 and 2021: December 31, 2022 Total amortized Real property Business assets cost basis Commercial Commercial and industrial $ 2,869 $ 791 $ 3,660 Owner-occupied commercial real estate 6,711 1,346 8,057 Food and agribusiness 3,020 173 3,193 Total Commercial 12,600 2,310 14,910 Commercial real estate non owner-occupied Non-owner occupied 8,561 — 8,561 Total commercial real estate 8,561 — 8,561 Residential real estate Senior lien 2,806 — 2,806 Junior lien 460 — 460 Total residential real estate 3,266 — 3,266 Total loans $ 24,427 $ 2,310 $ 26,737 December 31, 2021 Total amortized Real property Business assets cost basis Commercial Commercial and industrial $ 3,270 $ 1,261 $ 4,531 Owner-occupied commercial real estate 4,012 255 4,267 Total Commercial 7,282 1,516 8,798 Residential real estate Senior lien 2,212 — 2,212 Total residential real estate 2,212 — 2,212 Total loans $ 9,494 $ 1,516 $ 11,010 Loan modifications and troubled debt restructurings The Company’s policy is to review each prospective credit to determine the appropriateness and the adequacy of security or collateral prior to making a loan. In the event of borrower default, the Company seeks recovery in compliance with lending laws, the respective loan agreements, and credit monitoring and remediation procedures that may include restructuring a loan to provide a concession by the Company to the borrower from their original terms due to borrower financial difficulties in order to facilitate repayment. Additionally, if a borrower’s repayment obligation has been discharged by a court, and that debt has not been reaffirmed by the borrower, regardless of past due status, the loan is considered to be a TDR. During 2022, the Company restructured 10 loans with an amortized cost basis of $1.1 million to facilitate repayment that are considered TDRs. Loan modifications were a reduction of the principal payment, a reduction in interest rate, or an extension of term. The tables below provide additional information related to accruing TDRs at December 31, 2022 and 2021: December 31, 2022 Amortized Average year-to-date Unpaid Unfunded commitments cost basis amortized cost basis principal balance to fund TDRs Commercial $ 2,160 $ 2,348 $ 2,150 $ 150 Commercial real estate non-owner occupied 685 734 699 — Residential real estate 1,809 1,867 1,964 — Consumer — — — — Total $ 4,654 $ 4,949 $ 4,813 $ 150 December 31, 2021 Amortized Average year-to-date Unpaid Unfunded commitments cost basis amortized cost basis principal balance to fund TDRs Commercial $ 4,066 $ 4,472 $ 4,417 $ — Commercial real estate non-owner occupied 725 767 892 — Residential real estate 2,395 2,468 2,781 — Consumer — — — — Total $ 7,186 $ 7,707 $ 8,090 $ — The following table summarizes the Company’s carrying value of non-accrual TDRs as of December 31, 2022 and 2021: December 31, 2022 December 31, 2021 Commercial $ 356 $ 644 Commercial real estate non-owner occupied 81 117 Residential real estate 2,041 1,605 Consumer — — Total non-accruing TDRs $ 2,478 $ 2,366 Accrual of interest is resumed on loans that were previously on non-accrual only after the loan has performed sufficiently for a period of time. The Company did not have any TDRs that were modified within the past 12 months and had defaulted on their restructured terms during the years ended December 31, 2022 or 2021. For purposes of this disclosure, the Company considers “default” to mean 90 days or more past due on principal or interest. The allowance for credit losses related to TDRs on non-accrual status is determined by individual evaluation, including collateral adequacy, using the same process as loans on non-accrual status which are not classified as TDRs. Accounting for Acquired Loans ASC Topic 805, Business Combinations |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2022 | |
Allowance for Credit Losses | |
Allowance for Credit Losses | Note 8 Allowance for Credit Losses The tables below detail the Company’s allowance for credit losses as of the dates shown: Year ended December 31, 2022 Non-owner occupied commercial Residential Commercial real estate real estate Consumer Total Beginning balance $ 31,256 $ 10,033 $ 8,056 $ 349 $ 49,694 Day 1 CECL provision expense 4,274 11,792 5,034 128 21,228 PCD allowance for credit loss at acquisition 2,408 3,559 270 1 6,238 Charge-offs (1,340) — (2) (845) (2,187) Recoveries 185 21 54 125 385 Provision expense for credit losses 825 6,645 5,894 831 14,195 Ending balance $ 37,608 $ 32,050 $ 19,306 $ 589 $ 89,553 At the acquisition date, RCB and BOJH had $2.1 million and $0.5 million, respectively, of previously charged off loans for which the Company continued to have contractual rights to the cash flows. In accordance with ASC Topic 326, PCD loan accounting is to be applied by the acquirer whereby an allowance for credit losses should be recorded for this subset of loans at the acquisition date, and if deemed non-collectible, the loans are to be fully charged off on the acquirer’s books. Such amounts were fully reserved for, charged off on the acquisition date and excluded from the 2022 table above. Year ended December 31, 2021 Non-owner occupied commercial Residential Commercial real estate real estate Consumer Total Beginning balance $ 30,376 $ 17,448 $ 11,492 $ 461 $ 59,777 Charge-offs (1,171) — (24) (621) (1,816) Recoveries 371 7 48 126 552 Provision expense (release) for credit losses 1,680 (7,422) (3,460) 383 (8,819) Ending balance $ 31,256 $ 10,033 $ 8,056 $ 349 $ 49,694 In evaluating the loan portfolio for an appropriate ACL level, excluding loans evaluated individually, loans were grouped into segments based on broad characteristics such as primary use and underlying collateral. Within the segments, the portfolio was further disaggregated into classes of loans with similar attributes and risk characteristics for purposes of developing the underlying data used within the discounted cash flow model including, but not limited to, prepayment and recovery rates as well as loss rates tied to macro-economic conditions within management’s reasonable and supportable forecast. The ACL also includes subjective adjustments based upon qualitative risk factors including asset quality, loss trends, lending management, portfolio growth and loan review/internal audit results. Net charge-offs on loans during the year ended December 31, 2022 were $1.8 million. The Company recorded an increase in the allowance for credit losses of $39.9 million during 2022, which included a Day 1 provision expense of $21.2 million for the non-PCD RCB and BOJH acquired loan portfolios and a $6.2 million credit allowance for Day 1 acquired PCD loans. The remainder of the provision expense during the year was driven by strong loan growth and higher reserve requirements from changes in the CECL model’s underlying macro-economic forecast. Net charge-offs on loans during the year ended December 31, 2021 were $1.3 million. The Company recorded total provision release of $9.3 million during 2021, which included a provision release of $8.8 million for funded loans and a provision release of $0.5 million for unfunded loan commitments. Provision release was driven by strong asset quality and an improved outlook in the CECL model’s underlying economic forecast. The Company has elected to exclude AIR from the allowance for credit losses calculation. As of December 31, 2022 and December 31, 2021, AIR from loans totaled $31.8 million and $15.7 million, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Leases | Note 9 Leases Right-of-use (“ROU”) lease assets totaled $33.6 million and $19.7 million as of December 31, 2022 and 2021, respectively, and were included in other assets in the consolidated statements of financial condition. The related lease liabilities totaled $36.5 million and $20.3 million as of December 31, 2022 and 2021, respectively, and were included in other liabilities in the consolidated statements of financial condition. The Company recorded $5.1 million and $4.2 million of lease assets/liabilities related to the acquisitions of RCB and BOJH, respectively. The Company has operating leases for banking centers, corporate offices and ATM locations, with remaining lease terms ranging from one year to 19 years. The Company only included reasonably certain renewal options in the lease terms. The weighted-average remaining lease term for our operating leases was 7.7 years and 4.7 years at December 31, 2022 and 2021, respectively. As of December 31, 2022 and 2021, the weighted-average discount rates were 2.96% and 3.25%, respectively, utilizing the Company’s incremental FHLB borrowing rate for borrowings of a similar term at the date of lease commencement. Rent expense totaled $5.2 million and $5.1 million for the years ended December 31, 2022 and 2021, respectively, and was recorded within occupancy and equipment in the consolidated statements of operations. Lease payments do not include non-lease components such as real estate taxes, insurance and common area maintenance. Below is a summary of undiscounted future minimum lease payments as of December 31, 2022: Years ending December 31, Amount 2023 $ 6,219 2024 6,016 2025 4,709 2026 3,390 2027 3,097 Thereafter 21,663 Total lease payments 45,094 Less: Imputed interest (8,580) Present value of operating lease liabilities $ 36,514 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Premises and Equipment | |
Premises and Equipment | Note 10 Premises and Equipment Premises and equipment consisted of the following at December 31, 2022 and 2021: December 31, 2022 December 31, 2021 Land $ 40,245 $ 30,556 Buildings and improvements 112,188 86,201 Equipment 84,852 63,553 Total premises and equipment, at cost 237,285 180,310 Less: accumulated depreciation and amortization (101,174) (83,563) Premises and equipment, net $ 136,111 $ 96,747 The Company recorded $8.4 million, $7.3 million and $8.1 million of depreciation expense during 2022, 2021 and 2020, respectively, as a component of occupancy and equipment expense in the consolidated statements of operations. The Company disposed of $7.0 million, $13.7 million and $3.6 million of premises and equipment, net, during 2022, 2021 and 2020, respectively. The company recorded gains on sale of premises and equipment totaling $1.7 million and $3.8 million during the years ended December 31, 2022 and 2021, respectively, within other non-interest income in the consolidated statements of operations. During 2022, the Company had no impairment related to premises and equipment. During 2021, the Company recognized $1.6 million of impairment in its consolidated statements of operations related to premises and equipment classified as held-for-sale totaling $6.0 million at the time of impairment. During 2020, the Company recognized $1.6 million of impairments included in non-interest expense in its consolidated statements of operations from the consolidation of 12 banking centers classified as held-for-sale totaling $8.0 million. |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2022 | |
Other Real Estate Owned | |
Other Real Estate Owned | Note 11 Other Real Estate Owned A summary of the activity in OREO during 2022 and 2021 is as follows: For the years ended December 31, 2022 2021 Beginning balance $ 7,005 $ 4,730 Transfers from loan portfolio, at fair value 147 4,516 Impairments (505) (799) Sales (2,916) (1,442) Ending balance $ 3,731 $ 7,005 During the year ended December 31, 2022 and 2021, the Company sold OREO properties with net book balances of $2.9 million and $1.4 million, respectively. Sales of OREO properties resulted in net OREO gains of $0.6 million and $0.5 million which were included within gain on OREO sales, net in the consolidated statements of operations for the years ended December 31, 2022 and 2021, respectively. During the year ended December 31, 2022, impairments included $279 thousand recorded within problem asset workout in the consolidated statements of operations and $226 thousand included within other liabilities in the statements of financial condition to reduce the payable for an SBA redemption agreement. During the year ended December 31, 2021, impairments totaled $0.8 million recorded within problem asset workout in the consolidated statements of operations. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | Note 12 Goodwill and Intangible Assets Goodwill, core deposit and wealth management intangibles In connection with our eight acquisitions to date, the Company has recorded goodwill of $279.1 million. The Company recorded goodwill of $52.9 million, a core deposit intangible of $13.3 million, and an SBA servicing asset of $3.1 million related to the acquisition of RCB. The BOJH acquisition added goodwill of $111.3 million, a core deposit intangible of $29.4 million and a wealth management intangible of $1.3 million. Goodwill is measured as the excess of the fair value of consideration paid over the fair value of net assets acquired. No goodwill impairment was recorded during the years ended December 31, 2022 or December 31, 2021. The gross carrying amount of the core deposit and wealth management intangibles and the associated accumulated amortization at December 31, 2022 and December 31, 2021, are presented as follows: December 31, 2022 December 31, 2021 Gross Net Gross Net carrying Accumulated carrying carrying Accumulated carrying amount amortization amount amount amortization amount Core deposit intangible $ 91,566 $ (44,775) $ 46,791 $ 48,834 $ (42,469) $ 6,365 Wealth management intangible 1,300 (32) 1,268 — — — Total $ 92,866 $ (44,807) $ 48,059 $ 48,834 $ (42,469) $ 6,365 The Company is amortizing the core deposit and wealth management intangibles from acquisitions on a straight line basis over 10 years from the date of the respective acquisitions, which represents the expected useful life of the assets. The Company recognized core deposit intangible amortization expense of $2.3 million, $1.2 million and $1.2 million for the years ended December 31, 2022, 2021 and 2020. The following table shows the estimated future amortization expense during the next five years for the core deposit intangible as of December 31, 2022: Years ending December 31, Amount 2023 $ 5,321 2024 5,321 2025 5,321 2026 5,321 2027 5,321 The following table shows the estimated future amortization expense during the next five years for the wealth management intangible as of December 31, 2022: Years ending December 31, Amount 2023 $ 130 2024 130 2025 130 2026 130 2027 130 Mortgage servicing rights MSRs represent rights to service loans originated by the Company and sold to government-sponsored enterprises including FHLMC, FNMA, GNMA and FHLB and are included in other assets in the consolidated statements of financial condition. Mortgage loans serviced for others were $1.0 billion at December 31, 2022 and $0.7 billion at December 31, 2021. Below are the changes in the MSRs for the years presented: For the years ended December 31, 2022 2021 Beginning balance $ 5,957 $ 10,380 Originations 4,187 7,881 Sales — (10,499) (Impairment) recovery (60) 740 Amortization (922) (2,545) Ending balance 9,162 5,957 Fair value of mortgage servicing rights $ 13,622 $ 7,729 During the year ended December 31, 2021, the Company sold rights to service loans totaling $1.3 billion in unpaid principal balances from our mortgage servicing rights portfolio as a strategic move to reduce the risk associated with mortgage servicing. As a result of the sale, the book value of our mortgage servicing right intangible decreased $10.5 million and generated a gain of $1.3 million included in mortgage banking income in the consolidated statements of operations. The fair value of MSRs was determined based upon a discounted cash flow analysis. The cash flow analysis included assumptions for discount rates and prepayment speeds. The discount rate was 10.0%, and the constant prepayment speed ranged from 7.6% to 8.2% for the December 31, 2022 valuation. Discount rates ranged from 9.5% to 10.0%, and the constant prepayment speed ranged from 9.3% to 14.5% for the December 31, 2021 valuation. Included in mortgage banking income in the consolidated statements of operations was servicing income of $2.8 million and $3.5 million for the years ended December 31, 2022 and 2021, respectively. MSRs are evaluated and impairment is recognized to the extent fair value is less than the carrying amount. The Company evaluates impairment by stratifying MSRs based on the predominant risk characteristics of the underlying loans, including loan type and loan term. The Company is amortizing the MSRs in proportion to and over the period of the estimated net servicing income of the underlying loans. The following table shows the estimated future amortization expense during the next five years for the MSRs as of December 31, 2022: Years ending December 31, Amount 2023 $ 1,097 2024 967 2025 852 2026 750 2027 661 SBA servicing assets In connection with the RCB acquisition, the Company added an SBA servicing right asset of $3.1 million. The servicing asset represents the value associated with servicing small business real estate loans that have been sold to outside investors with servicing retained. SBA loan servicing assets are amortized over the period of the estimated future net servicing life of the underlying assets. SBA loan servicing assets are evaluated quarterly for impairment based upon the fair value of the rights as compared to their amortized cost. Impairment is recognized on the income statement to the extent the fair value is less than the capitalized amount of the SBA loan servicing asset. The Company serviced $125.7 million of SBA loans, as of December 31, 2022. Since the acquisition date, the Company recognized SBA servicing asset fee income of $0.2 million. Below are the changes in the SBA servicing assets for the years presented: For the years ended December 31, 2022 Beginning balance $ — Acquired through acquisition 3,126 Originations 9 Disposals (139) Amortization (99) Fair market value adjustment (231) Ending balance 2,666 Fair value of small business administration servicing rights $ 2,666 The Company uses assumptions and estimates in determining the fair value of SBA loan servicing rights. These assumptions include prepayment speeds, discount rates, and other assumptions. The assumptions used in the valuation were based on input from buyers, brokers and other qualified personnel, as well as market knowledge. The key assumptions used to determine the fair value of the Company’s SBA loan servicing rights included a weighted average lifetime constant prepayment rate equal to 12.36%, and a weighted average discount rate equal to 15.24%. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2022 | |
Deposits | |
Deposits | Note 13 Deposits Total deposits were $7.9 billion and $6.2 billion at December 31, 2022 and 2021, respectively. Time deposits were $0.9 billion and $0.8 billion at December 31, 2022 and 2021, respectively. The following table summarizes the Company’s time deposits by remaining contractual maturity: Years ending December 31, Amount 2023 $ 469,817 2024 273,278 2025 101,593 2026 23,059 2027 4,764 Thereafter 889 Total time deposits $ 873,400 The Company incurred interest expense on deposits as follows during the years indicated: For the years ended December 31, 2022 2021 2020 Interest bearing demand deposits $ 2,163 $ 1,088 $ 1,921 Money market accounts 5,808 3,995 5,342 Savings accounts 1,376 1,157 1,342 Time deposits 5,249 7,362 15,024 Total $ 14,596 $ 13,602 $ 23,629 The Federal Reserve System requires cash balances to be maintained at the FRB based on certain deposit levels. There was no minimum reserve requirement for the Banks at December 31, 2022. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Borrowings | |
Borrowings | Note 14 Borrowings Borrowings consist of securities sold under agreements to repurchase, long-term debt and FHLB advances. Securities sold under agreements to repurchase The following table sets forth selected information regarding repurchase agreements during 2022, 2021 and 2020: As of and for the years ended December 31, 2022 2021 2020 Maximum amount of outstanding agreements at any month end during the period $ 25,342 $ 23,574 $ 54,489 Average amount outstanding during the period 21,298 20,338 30,355 Weighted average interest rate for the period 0.20% 0.11% 0.45% The Company enters into repurchase agreements to facilitate the needs of its clients. As of December 31, 2022, 2021 and 2020, the Company sold securities under agreements to repurchase totaling $20.2 million, $22.8 million and $22.9 million, respectively. The Company pledged mortgage-backed securities with a fair value of approximately $32.0 million, $28.8 million and $27.7 million, as of December 31, 2022, 2021 and 2020, respectively, for these agreements. The Company monitors collateral levels on a continuous basis and may be required to provide additional collateral based on the fair value of the underlying securities. As of December 31, 2022, 2021 and 2020, the Company had The vast majority of the Company’s repurchase agreements are overnight transactions with clients that mature the day after the transaction. At December 31, 2022, 2021 and 2020, none of the Company’s repurchase agreements were for periods longer than one day. The repurchase agreements are subject to a master netting arrangement; however, the Company has not offset any of the amounts shown in the consolidated financial statements. Long-term debt The Company holds a subordinated note purchase agreement to issue and sell a fixed-to-floating rate note totaling $40.0 million. The balance on the note at December 31, 2022, net of long-term debt issuance costs totaling $0.5 million, totaled $39.5 million. Interest expense totaling $1.3 million was recorded within other liabilities in the consolidated statements of operations during the year ended December 31, 2022. The note is subordinated, unsecured and matures on November 15, 2031. Payments consist of interest only. Interest expense on the note is payable semi-annually in arrears and will bear interest at 3.00% per annum until November 15, 2026 (or any earlier redemption date). From November 15, 2026 until November 15, 2031 (or any earlier redemption date) payments will be made quarterly in arrears, and the interest rate shall reset quarterly to an interest rate per annum equal to the then current three-month term SOFR plus 203 basis points. The Company deployed the net proceeds from the sale of the note for general corporate purposes. Prior to November 5, 2026, the Company may redeem the note only under certain limited circumstances. Beginning on November 5, 2026 through maturity, the note may be redeemed, at the Company’s option, on any scheduled interest payment date. Any redemption by the Company would be at a redemption price equal to 100% of the principal amount of the note being redeemed, together with any accrued and unpaid interest on the note being redeemed up to but excluding the date of redemption. The note is not subject to redemption at the option of the holder. As part of the acquisition of BOJH on October 1, 2022, the Company assumed three subordinated note purchase agreements to issue and sell fixed-to-floating rate notes totaling $15.0 million. The balance on the notes at December 31, 2022, net of the fair value adjustment from the acquisition totaling $0.6 million, totaled $14.4 million. Interest expense related to the notes totaling $0.2 million was recorded in the consolidated statements of operations during the year ended December 31, 2022. The three notes, containing similar terms, are subordinated, unsecured and mature on June 15, 2031. Payments consist of interest only. Interest expense on the notes is payable semi-annually in arrears and will bear interest at 3.75% per annum until June 15, 2026 (or any earlier redemption date). From June 15, 2026 until June 15, 2031 (or any earlier redemption date) payments will be made quarterly in arrears, and the interest rate shall reset quarterly to an interest rate per annum equal to the then current three-month term SOFR plus 306 basis points. Prior to June 15, 2026, the Company may redeem the notes only under certain limited circumstances. Beginning on June 15, 2026 through maturity, the notes may be redeemed, at the Company’s option, on any scheduled interest payment date. Any redemption by the Company would be at a redemption price equal to 100% of the principal amount of the notes being redeemed, together with any accrued and unpaid interest on the notes being redeemed up to but excluding the date of redemption. The notes are not subject to redemption at the option of the holder. Federal Home Loan Bank advances As a member of the FHLB, the Banks have access to a line of credit and term financing from the FHLB with total available credit of $1.1 billion at December 31, 2022. The Banks may utilize the FHLB line of credit as a funding mechanism for originated loans and loans held for sale. At December 31, 2022, the Banks had $385.0 million of outstanding borrowings with the FHLB. At December 31, 2021 and 2020, the Banks had no outstanding borrowings from the FHLB. The Banks may pledge investment securities and loans as collateral for FHLB advances. There were no investment securities pledged at December 31, 2022, 2021 or 2020. Loans pledged were $2.0 billion, $1.3 billion and $1.2 billion at December 31, 2022, 2021 and 2020, respectively. The Company incurred $1.7 million of interest expense related to FHLB advances and other short-term borrowings for the year ended December 31, 2022. |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 2022 | |
Regulatory Capital | |
Regulatory Capital | Note 15 Regulatory Capital As a bank holding company that has elected to be treated as a financial holding company, the Company, NBH Bank and the Bank of Jackson Hole Trust are subject to regulatory capital adequacy requirements implemented by the Federal Reserve, including maintaining capital positions at the “well-capitalized” level. The federal banking agencies have risk-based capital adequacy regulations intended to provide a measure of capital adequacy that reflects the degree of risk associated with a banking organization’s operations. Under these regulations, assets are assigned to one of several risk categories, and nominal dollar amounts of assets and credit equivalent amounts of off-balance-sheet items are multiplied by a risk-adjustment percentage for the category. Under the Basel III requirements, at December 31, 2022 and 2021, the Company and the Banks met all capital requirements, including the capital conservation buffer of 2.5%. The Company and the Banks had regulatory capital ratios in excess of the levels established for well-capitalized institutions, as detailed in the tables below: December 31, 2022 Required to be Required to be well capitalized under considered prompt corrective adequately Actual action provisions capitalized (1) Ratio Amount Ratio Amount Ratio Amount Tier 1 leverage ratio: Consolidated 9.3% $ 857,403 N/A N/A 4.0% $ 369,335 NBH Bank 8.6% 788,462 5.0% $ 458,593 4.0% 366,874 Bank of Jackson Hole Trust 31.0% 11,238 5.0% 1,373 4.0% 1,099 Common equity tier 1 risk based capital: Consolidated 10.5% $ 857,403 N/A N/A 7.0% $ 574,339 NBH Bank 9.7% 788,462 6.5% $ 528,334 7.0% 568,975 Bank of Jackson Hole Trust 71.6% 11,238 6.5% 1,020 7.0% 1,098 Tier 1 risk based capital ratio: Consolidated 10.5% $ 857,403 N/A N/A 8.5% $ 697,412 NBH Bank 9.7% 788,462 8.0% $ 650,257 8.5% 690,898 Bank of Jackson Hole Trust 71.6% 11,238 8.0% 1,255 8.5% 1,333 Total risk based capital ratio: Consolidated 12.2% $ 1,000,398 N/A N/A 10.5% $ 861,509 NBH Bank 10.8% 876,458 10.0% $ 812,821 10.5% 853,462 Bank of Jackson Hole Trust 71.6% 11,238 10.0% 1,569 10.5% 1,647 December 31, 2021 Required to be Required to be well capitalized under considered prompt corrective adequately Actual action provisions capitalized (1) Ratio Amount Ratio Amount Ratio Amount Tier 1 leverage ratio: Consolidated 10.4% $ 731,087 N/A N/A 4.0% $ 281,463 NBH Bank 9.1% 637,115 5.0% $ 350,584 4.0% 280,467 Common equity tier 1 risk based capital: Consolidated 14.3% $ 731,087 N/A N/A 7.0% $ 358,813 NBH Bank 12.5% 637,115 6.5% $ 331,427 7.0% 356,921 Tier 1 risk based capital ratio: Consolidated 14.3% $ 731,087 N/A N/A 8.5% $ 435,701 NBH Bank 12.5% 637,115 8.0% $ 407,910 8.5% 433,404 Total risk based capital ratio: Consolidated 15.9% $ 816,117 N/A N/A 10.5% $ 538,219 NBH Bank 13.4% 682,145 10.0% $ 509,888 10.5% 535,382 (1) Includes the capital conservation buffer of 2.5%. |
Revenue from Contracts with Cli
Revenue from Contracts with Clients | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contracts with Clients | |
Revenue from Contracts with Clients | Note 16 Revenue from Contracts with Clients Revenue is recognized when obligations under the terms of a contract with clients are satisfied. Below is the detail of the Company’s revenue from contracts with clients. Service charges and other fees Service charge fees are primarily comprised of monthly service fees, check orders, and other deposit account related fees. Other fees include revenue from processing Bank card fees Bank card fees are primarily comprised of debit card income, ATM fees, merchant services income, and other fees. Debit card income is primarily comprised of interchange fees earned whenever the Company’s debit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Bank cardholder uses a non-Bank ATM or a non-Bank cardholder uses a Bank ATM. Merchant services income mainly represents fees charged to merchants to process their debit card transactions. The Company’s performance obligation for bank card fees are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Trust and wealth management fees The trust and wealth management team operates as a fiduciary, offering separately managed investment account solutions and trustee services to clients. Services may include custody of securities, trust investments and wealth management services, directed trusts or fixed income portfolio management and irrevocable life insurance trusts. The Company charges an asset-based fee earned for personal and corporate accounts. Additional fees may include minimum annual fees, fees for additional tax reporting and preparation for irrevocable trust returns or annual flat fees for certain trusts. The performance obligations related to this revenue include items such as performing investment advisory services, custody and record-keeping services, and fund administrative and accounting services. The performance obligations are satisfied upon completion of service and fees are generally a fixed flat rate or based on a percentage of the account’s market value per the contract with the client. These fees are recorded within other non-interest income in the consolidated statements of operations. Gain on OREO sales, net Gain on OREO sales, net is recognized when the Company meets its performance obligation to transfer title to the buyer. The gain or loss is measured as the excess of the proceeds received compared to the OREO carrying value. Sales proceeds are received in cash at the time of transfer. The following table presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, and non-interest expense in-scope of Topic 606 for the years ended December 31, 2022, 2021 and 2020. For the years ended December 31, 2022 2021 2020 Non-interest income In-scope of Topic 606: Service charges and other fees $ 18,772 $ 18,066 $ 16,913 Bank card fees 18,299 17,693 15,446 Trust and wealth management services 583 — — Non-interest income (in-scope of Topic 606) 37,654 35,759 32,359 Non-interest income (out-of-scope of Topic 606) 29,658 74,605 107,899 Total non-interest income $ 67,312 $ 110,364 $ 140,258 Non-interest expense In-scope of Topic 606: Gain on OREO sales, net $ 648 $ 475 38 Total revenue in-scope of Topic 606 $ 38,302 $ 36,234 $ 32,397 Contract acquisition costs The Company utilizes the practical expedient which allows entities to expense immediately contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. The Company has not capitalized any contract acquisition costs. |
Stock-based Compensation and Be
Stock-based Compensation and Benefits | 12 Months Ended |
Dec. 31, 2022 | |
Stock-based Compensation and Benefits | |
Stock-based Compensation and Benefits | Note 17 Stock-based Compensation and Benefits The Company provides stock-based compensation in accordance with shareholder-approved plans. In 2014, shareholders approved the 2014 Omnibus Incentive Plan (the "2014 Plan"). The 2014 Plan replaces the NBH Holdings Corp. 2009 Equity Incentive Plan (the "Prior Plan"), pursuant to which the Company granted equity awards prior to the approval of the 2014 Plan. Pursuant to the 2014 Plan, the Compensation Committee of the Board of Directors has the authority to grant, from time to time, awards of stock options, stock appreciation rights, restricted stock, restricted stock units, performance units, other stock-based awards, or any combination thereof to eligible persons. As of December 31, 2022, the aggregate number of Class A common stock available for issuance under the 2014 Plan is 3,608,461 shares. Any shares that are subject to stock options or stock appreciation rights under the 2014 Plan will be counted against the amount available for issuance as one share for every one share granted, and any shares that are subject to awards under the 2014 Plan other than stock options or stock appreciation rights will be counted against the amount available for issuance as 3.25 shares for every one share granted. The 2014 Plan provides for recycling of shares from both the Prior Plan and the 2014 Plan, the terms of which are further described in the Company's Proxy Statement for its 2014 Annual Meeting of Shareholders. Upon an option exercise, it is the Company’s policy to issue shares from treasury stock. To date, the Company has issued stock options, restricted stock and performance stock units under the plans. The Compensation Committee sets the option exercise price at the time of grant, but in no case is the exercise price less than the fair market value of a share of stock at the date of grant. Stock options The Company issues stock options, which are primarily time-vesting with 1/3 1 Below are the weighted average assumptions used in the Black-Scholes option pricing model to determine fair value of the Company’s stock options granted in 2022, 2021 and 2020: 2022 2021 2020 Weighted average fair value $ 11.14 $ 9.65 $ 3.37 Weighted average risk-free interest rate (1) 2.69% 1.14% 0.44% Expected volatility (2) 31.16% 30.54% 25.08% Expected term (years) (3) 6.04 6.04 6.04 Dividend yield (4) 2.24% 2.09% 3.44% (1) The risk-free rate for the expected term of the options was based on the U.S. Treasury yield curve at the date of grant and based on the expected term. (2) Expected volatility was calculated using historical volatility of the Company’s stock price for a period commensurate with the expected term of the options. For periods prior to the third quarter of 2018, expected volatility was calculated using a historical volatility of the Company’s stock price coupled with those of a peer group of eight comparable publicly traded companies for a period commensurate with the expected term of the options. (3) The expected term was estimated to be the average of the contractual vesting term and time to expiration. (4) The dividend yield was calculated in accordance with the Company’s dividend policy at the time of grant. The Company issued stock options in accordance with the 2014 Plan during 2022. The following table summarizes stock option activity for 2022: Weighted average Weighted remaining average contractual Aggregate exercise term in intrinsic Options price years value Outstanding at December 31, 2021 695,960 $ 28.19 6.57 $ 10,964 Granted 82,226 41.37 Exercised (48,666) 26.09 Forfeited (12,432) 31.38 Outstanding at December 31, 2022 717,088 29.79 5.98 8,850 Options exercisable at December 31, 2022 520,217 27.76 5.08 7,447 Options vested and expected to vest 702,485 29.58 5.92 8,805 Stock option expense is a component of salaries and benefits in the consolidated statements of operations and totaled $0.7 million, $0.9 million and $1.0 million for 2022, 2021 and 2020, respectively. At December 31, 2022, there was $0.5 million of total unrecognized compensation cost related to non-vested stock options granted under the plans. The cost is expected to be recognized over a weighted average period of 2.1 years. The following table summarizes the Company’s outstanding stock options: Options outstanding Options exercisable Weighted average Number remaining contractual Weighted average Number Weighted average Range of exercise price outstanding life (years) exercise price exercisable exercise price $ 18.00 - 22.99 144,571 2.39 $ 19.23 144,571 $ 19.23 23.00 - 27.99 170,521 7.24 23.13 107,363 23.14 28.00 - 32.99 85,776 5.21 32.60 84,798 32.64 33.00 - 37.99 160,537 5.56 34.13 159,040 34.11 38.00 and above 155,683 8.80 40.85 24,445 40.24 Restricted stock awards The Company issues primarily time-based restricted stock awards that vest over a range of a 1 Performance stock units During the years ended December 2022, 2021 and 2020, the Company granted 51,931, 52,526 , and 68,498 performance stock units in accordance with the 2014 Plan, respectively. The Company grants performance stock units which represent initial target awards and do not reflect potential increases or decreases resulting from the final performance results, which are to be determined at the end of the three-year performance period (vesting date). The actual number of shares to be awarded at the end of the performance period will range from 0% - 150% of the initial target awards. For awards granted in years other than 2020 and 2021, 60% of the award is based on the Company’s cumulative earnings per share (EPS target) during the performance period, and 40% of the award is based on the Company’s cumulative total shareholder return (TSR target), or TSR, during the performance period. On the vesting date, the Company’s TSR will be compared to the respective TSRs of the companies comprising the KBW Regional Index at the grant date to determine the shares awarded. The fair value of the EPS target portion of the award was determined based on the closing stock price of the Company’s common stock on the grant date. The fair value of the TSR target portion of the award was determined using a Monte Carlo Simulation at the grant date. In establishing PSU components during 2021 and 2020, the Compensation Committee determined the EPS target portion of the award would not be an effective metric in light of economic uncertainty surrounding COVID-19. Consequently, the Compensation Committee granted an award based upon a relative return on tangible assets (“ROTA”). Annually, the Company’s ROTA is compared to the respective ROTA of companies comprising the KBW Regional Index. At the end of the measurement period, the Company’s ranking will be averaged to determine the shares awarded. The fair value of the ROTA award was determined based on the closing stock price of the Company’s common stock on the grant date. The weighted-average grant date fair value per unit for the awards granted during the year ended December 31, 2022 of the EPS target portion and the TSR target portion was $40.83 and $35.25, respectively. The initial weighted-average performance price for the TSR target portion granted during 2022 was $43.51. During 2022 and 2021, the Company awarded an additional 17,741 and 30,024 units due to final performance results related to performance stock units granted in 2019 and 2018, respectively. The following table summarizes restricted stock and performance stock unit activity during 2022 and 2021: Weighted Weighted Restricted average grant- Performance average grant- stock shares date fair value stock units date fair value Unvested at December 31, 2020 166,630 $ 27.42 184,837 $ 29.21 Granted 89,351 39.99 52,526 37.01 Adjustment due to performance — — 30,024 30.38 Vested (90,645) 29.78 (90,016) 30.38 Forfeited (20,869) 29.54 (16,977) 28.96 Unvested at December 31, 2021 144,467 $ 33.40 160,394 $ 31.36 Granted 118,190 40.76 51,931 38.40 Adjustment due to performance — — 17,741 32.44 Vested (84,898) 33.62 (67,875) 31.27 Forfeited (12,622) 37.00 (6,334) 32.70 Unvested at December 31, 2022 165,137 $ 38.28 155,857 $ 33.81 As of December 31, 2022, the total unrecognized compensation cost related to the non-vested restricted stock awards and performance stock units totaled $3.3 million and $2.6 million, respectively, and is expected to be recognized over a weighted average period of approximately 2.1 years and 1.7 years, respectively. Expense related to non-vested restricted stock awards totaled $3.4 million, $2.7 million and $2.5 million during 2022, 2021 and 2020, respectively. Expense related to non-vested performance stock units totaled $1.9 million, $2.0 million and $1.8 million during 2022, 2021 and 2020, respectively. Expense related to non-vested restricted stock awards and units is a component of salaries and benefits in the Company’s consolidated statements of operations. Employee stock purchase plan The 2014 Employee Stock Purchase Plan (“ESPP”) is intended to be a qualified plan within the meaning of Section 423 of the Internal Revenue Code of 1986 and allows eligible employees to purchase shares of common stock up to a limit of $25,000 per calendar year and 2,000 shares per offering period. The price an employee pays for shares is 90.0% of the fair market value of Company common stock on the last day of the offering period. The offering periods are the six-month periods commencing on March 1 and September 1 of each year and ending on August 31 and February 28 (or February 29 in the case of a leap year) of each year. There are no vesting or other restrictions on the stock purchased by employees under the ESPP. Under the ESPP, the total number of shares of common stock reserved for issuance totaled 400,000 shares, of which 262,482 was available for issuance at December 31, 2022. Under the ESPP, employees purchased 19,414 shares and 20,980 shares during 2022 and 2021, respectively. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2022 | |
Common Stock | |
Common Stock | Note 18 Common Stock The Company had 37,608,519 and 29,958,764 shares of Class A common stock outstanding at December 31, 2022 and 2021, respectively. Additionally, the Company had 165,137 and 144,467 shares outstanding at December 31, 2022 and 2021, respectively, of restricted Class A common stock issued but not yet vested under the 2014 Omnibus Incentive Plan that are not included in shares outstanding until such time that they are vested; however, these shares do have voting and certain dividend rights during the vesting period. On February 24, 2021, the Company’s Board of Directors authorized a program to repurchase up to $75.0 million of the Company’s stock from time to time in either the open market or through privately negotiated transactions. The remaining authorization under the current program as of December 31, 2022 was $38.6 million. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share | |
Earnings Per Share | Note 19 Earnings Per Share The Company calculates earnings per share under the two-class method, as certain non-vested share awards contain non-forfeitable rights to dividends. As such, these awards are considered securities that participate in the earnings of the Company. Non-vested shares are discussed further in note 17. The Company had 37,608,519 and 29,958,764 shares of Class A common stock outstanding as of December 31, 2022 and 2021, respectively, exclusive of issued non-vested restricted shares. Certain stock options and non-vested restricted shares are potentially dilutive securities, but are not included in the calculation of diluted earnings per share because to do so would have been anti-dilutive for 2022, 2021 and 2020. The following table illustrates the computation of basic and diluted earnings per share for 2022, 2021 and 2020: For the years ended December 31, 2022 2021 2020 Net income $ 71,274 $ 93,606 $ 88,591 Less: income allocated to participating securities (152) (133) (130) Income allocated to common shareholders $ 71,122 $ 93,473 $ 88,461 Weighted average shares outstanding for basic earnings per common share 32,360,005 30,727,566 30,857,086 Dilutive effect of equity awards 320,927 340,593 218,771 Weighted average shares outstanding for diluted earnings per common share 32,680,932 31,068,159 31,075,857 Basic earnings per share $ 2.20 $ 3.04 $ 2.87 Diluted earnings per share 2.18 3.01 2.85 The Company had 717,088, 695,960 and 768,129 outstanding stock options to purchase common stock at weighted average exercise prices of $29.79, $28.19 and $26.35 per share at December 31, 2022, 2021 and 2020, respectively, which have time-vesting criteria, and as such, any dilution is derived only for the time frame in which the vesting criteria had been met and where the inclusion of those stock options is dilutive. The Company had 320,994, 304,861 and 351,467 unvested restricted shares and performance stock units issued as of December 31, 2022, 2021 and 2020, respectively, which have performance, market and/or time-vesting criteria, and as such, any dilution is derived only for the time frame in which the vesting criteria had been met and where the inclusion of those restricted shares and units is dilutive. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes | |
Income Taxes | Note 20 Income Taxes Income tax expense attributable to income before taxes was $14.9 million, $21.4 million and $20.8 million for 2022, 2021 and 2020, respectively. Included in income tax expense was $0.3 million of tax benefit, $0.6 million of tax benefit and $51 thousand of tax expense from stock compensation activity during 2022, 2021 and 2020, respectively. (a) Income taxes Total income taxes for 2022, 2021 and 2020 were allocated as follows: For the years ended December 31, 2022 2021 2020 Current expense: U.S. federal $ 7,193 $ 13,746 $ 16,460 State and local 1,831 2,643 3,255 Total current income tax expense 9,024 16,389 19,715 Deferred expense: U.S. federal 5,100 4,327 560 State and local 786 649 531 Total deferred income tax expense 5,886 4,976 1,091 Income tax expense $ 14,910 $ 21,365 $ 20,806 (b) Tax Rate Reconciliation The reconciliation between the income tax expenses and the amounts computed by applying the U.S. federal income tax rate to pretax income is as follows: For the years ended December 31, 2022 2021 2020 Income tax at federal statutory rates (21%) $ 18,098 $ 24,144 $ 22,974 State income taxes, net of federal benefits 2,067 2,601 2,991 Tax-exempt loan interest income (5,208) (4,862) (4,628) Bank-owned life insurance income (374) (603) (575) Stock-based compensation (402) (733) 43 Non-deductible compensation 514 852 388 Non-deductible acquisition costs 427 — — Other (212) (34) (387) Income tax expense $ 14,910 $ 21,365 $ 20,806 (c) Significant Components of Deferred Taxes The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2022 and 2021 are presented below: December 31, 2022 December 31, 2021 Deferred tax assets: Net unrealized losses on investment securities $ 26,938 $ 2,169 Allowance for credit losses 20,967 11,806 Lease liability 8,549 4,811 Accrued compensation 4,535 4,355 Accrued stock-based compensation 1,742 1,384 Accrued expenses 942 316 Capitalized start-up costs 891 1,223 Other reserves 814 600 Nonaccrual interest income 812 556 Capitalized research and development costs 783 — Excess tax basis of acquired loans over carrying value 625 679 Net operating loss 507 573 Other real estate owned 369 645 Net deferred loan fees — 1,021 Other 1,087 635 Total deferred tax assets 69,561 30,773 Deferred tax liabilities: Intangible assets (9,943) (4,822) Right of use assets (8,300) (4,674) Premises and equipment (4,722) (1,858) Mortgage servicing rights (2,769) (1,415) Excess book basis in partnerships (989) (47) Net deferred loan costs (383) — Other (738) (267) Total deferred tax liabilities (27,844) (13,083) Net deferred tax asset $ 41,717 $ 17,690 At December 31, 2022, the Company had federal and state net operating loss carryovers (“NOLs”) of $1.9 million and $2.9 million, respectively, which are available to offset future taxable income. The federal NOLs expire in varying amounts through 2034, and the state NOLs expire in varying amounts between 2026 and 2034. While these NOLs are subject to certain restrictions on the amount that can be utilized per year, the Company does not expect any tax attribute carryovers to expire before they are utilized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, if any (including the impact of available carryforward periods), projected future taxable income, and tax-planning strategies in making this assessment. For the years ended December 31, 2022 and 2021, management believes a valuation allowance on the deferred tax asset is not necessary based on the current and future projected earnings of the Company. The Company has no ASC 740-10 unrecognized tax benefits recorded as of December 31, 2022 and 2021 and does not expect the total amount of unrecognized tax benefits to significantly increase within the next 12 months. The Company and its subsidiary banks are subject to income tax by federal, state and local government taxing authorities. The Company is not currently subject to any open income tax examinations; however, the Company’s tax returns for the years ended December 31, 2019 through 2022 remain subject to examination by U.S. federal income tax authorities. The years open to examination by state and local government authorities vary by jurisdiction. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2022 | |
Derivatives | |
Derivatives | Note 21 Derivatives Risk management objective of using derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company has established policies stipulating that neither carrying value nor fair value at risk should exceed established guidelines. The Company has designed strategies to confine these risks within the established limits and identify appropriate trade-offs in the financial structure of its balance sheet. These strategies include the use of derivative financial instruments to help achieve the desired balance sheet repricing structure while meeting the desired objectives of its clients. Currently the Company employs certain interest rate swaps that are designated as fair value hedges, cash flow hedges and economic hedges. The Company manages a matched book with respect to its derivative instruments in order to minimize its net risk exposure resulting from such transactions. Fair values of derivative instruments on the balance sheet The table below presents the fair value of the Company’s derivative financial instruments as well as their classification in the consolidated statements of financial condition as of December 31, 2022 and 2021. Information about the valuation methods used to measure fair value is provided in note 23. Asset derivatives fair value Liability derivatives fair value Balance Sheet December 31, December 31, Balance Sheet December 31, December 31, location 2022 2021 Location 2022 2021 Derivatives designated as hedging instruments: Interest rate products Other assets $ 34,164 $ 477 Other liabilities $ 1,929 $ 12,221 Total derivatives designated as hedging instruments $ 34,164 $ 477 $ 1,929 $ 12,221 Derivatives not designated as hedging instruments: Interest rate products Other assets $ 10,657 $ 8,321 Other liabilities $ 10,660 $ 8,329 Interest rate lock commitments Other assets 197 1,792 Other liabilities 174 197 Forward contracts Other assets 210 91 Other liabilities 104 266 Total derivatives not designated as hedging instruments $ 11,064 $ 10,204 $ 10,938 $ 8,792 Cash flow hedges The Company’s objectives in using interest rate derivatives are to add stability to interest income and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses floors and collars as part of its interest rate risk management strategy. Interest rate floors designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates fall below the strike rate on the contract in exchange for an up-front premium. Interest rate collars designated as cash flow hedges involve the payments of variable-rate amounts if interest rates rise above the cap strike rate on the contract and receipt of variable-rate amounts if interest rates fall below the floor strike rate on the contract. Beginning with the third quarter of 2022, such derivatives were used to hedge the variable cash flows associated with existing variable-rate loan assets. For derivatives that qualify and are designated as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income and subsequently reclassified into interest income in the same period(s) during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge components excluded from the assessment of effectiveness are recognized over the life of the hedge on a systematic and rational basis. The earnings recognition of excluded components is included in interest income. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest income as interest payments are received on the Company’s variable-rate assets. As of December 31, 2022, the Company had cash flow hedges with a notional amount of $150.0 million. The Company expects to reclassify $1.3 million from accumulated other comprehensive income (“AOCI”) as a reduction to interest income during the next 12 months. Fair value hedges Interest rate swaps designated as fair value hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount. As of December 31, 2022, the Company had interest rate swaps with a notional amount of $340.1 million that were designated as fair value hedges. These interest rate swaps were associated with $482.7 million of the Company’s fixed-rate loans included in loans receivable in the statements of financial condition as of December 31, 2022, before a gain of $29.7 million from the fair value hedge adjustment in the carrying amount. As of December 31, 2021, the Company had interest rate swaps with a notional amount of $343.1 million that were designated as fair value hedges. These interest rate swaps were associated with $345.2 million of the Company’s fixed-rate loans as of December 31, 2021, excluding a gain of $16.1 million from the fair value hedge adjustment in the carrying amount. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in earnings. The Company includes the gain or loss on the hedged items in the same line item as the offsetting loss or gain on the related derivatives. Non-designated hedges Derivatives not designated as hedges are not speculative and consist of interest rate swaps with commercial banking clients that facilitate their respective risk management strategies. Interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the client swaps and the offsetting swaps are recognized directly in earnings. As of December 31, 2022, the Company had matched interest rate swap transactions with an aggregate notional amount of $383.0 million related to this program. As of December 31, 2021, the Company had matched interest rate swap transactions with an aggregate notional amount of $394.4 million. As part of its mortgage banking activities, the Company enters into interest rate lock commitments, which are commitments to originate loans where the interest rate on the loan is determined prior to funding and the clients have locked into that interest rate. The Company then locks in the loan and interest rate with an investor and commits to deliver the loan if settlement occurs ("best efforts") or commits to deliver the locked loan in a binding ("mandatory") delivery program with an investor. Fair value changes of certain loans under interest rate lock commitments are hedged with forward sales contracts of MBS. Forward sales contracts of MBS are recorded at fair value with changes in fair value recorded in non-interest income. Interest rate lock commitments and commitments to deliver loans to investors are considered derivatives. The market value of interest rate lock commitments and best efforts contracts are not readily ascertainable with precision because they are not actively traded in stand-alone markets. The Company determines the fair value of interest rate lock commitments and delivery contracts by measuring the fair value of the underlying assets. The fair value of the underlying assets is impacted by current interest rates, remaining origination fees, costs of production to be incurred, and the probability that the interest rate lock commitments will close or will be funded. Certain additional risks arise from these forward delivery contracts in that the counterparties to the contracts may not be able to meet the terms of the contracts. The Company does not expect any counterparty to any MBS contract to fail to meet its obligation. Additional risks inherent in mandatory delivery programs include the risk that, if the Company fails to deliver the loans subject to interest rate risk lock commitments, it will still be obligated to “pair off” MBS to the counterparty. Should this be required, the Company could incur significant costs in acquiring replacement loans and such costs could have an adverse effect in the consolidated financial statements. The fair value of the mortgage banking derivative is recorded as a freestanding asset or liability with the change in value being The Company had interest rate lock commitments with a notional value of $35.5 million and forward contracts with a notional value of $45.0 million at December 31, 2022. At December 31, 2021, the Company had interest rate lock commitments with a notional value of $110.0 million and forward contracts with a notional value of $198.3 million. Effect of derivative instruments on the consolidated statements of operations and accumulated other comprehensive income The tables below present the effect of the Company’s derivative financial instruments in the consolidated statements of operations for 2022 and 2021: Location of gain (loss) Amount of gain recognized in income on derivatives Derivatives in fair value recognized in income on For the years ended December 31, hedging relationships derivatives 2022 2021 Interest rate products Interest and fees on loans $ 44,266 $ 20,040 Location of gain (loss) Amount of loss recognized in income on hedged items recognized in income on For the years ended December 31, Hedged items hedged items 2022 2021 Interest rate products Interest and fees on loans $ (46,708) $ (19,602) Location of gain (loss) Amount of gain (loss) recognized in income on derivatives Derivatives not designated recognized in income on For the years ended December 31, as hedging instruments derivatives 2022 2021 Interest rate products Other non-interest expense $ 6 $ 23 Interest rate lock commitments Mortgage banking income (2,405) (6,852) Forward contracts Mortgage banking income 281 2,447 Total $ (2,118) $ (4,382) The table below presents the effect of fair value cash flow hedge accounting on AOCI as of the dates presented. The Company did not utilize cash flow hedges until the third quarter of 2022. For the year ended December 31, 2022 Loss recognized in OCI on derivative Loss recognized in OCI included component Loss recognized in OCI excluded component Location of Loss recognized from AOCI into income Loss reclassified from AOCI into income Loss reclassified from AOCI into income included component Loss reclassified from AOCI into income excluded component Derivatives in cash flow hedging relationships: Interest rate products $ (2,245) $ (2,192) $ (53) Interest income $ (124) $ (32) $ (92) Credit-risk-related contingent features The Company has agreements with its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness for reasons other than an error or omission of an administrative or operational nature, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company also has agreements with certain of its derivative counterparties that contain a provision where if the Company fails to maintain its status as a well/adequately capitalized institution, then the counterparty has the right to terminate the derivative positions and the Company would be required to settle its obligations under the agreements. As of December 31, 2022, the termination value of derivatives in a net liability position related to these agreements was $42.9 million, which includes accrued interest but excludes any adjustment for nonperformance risk. The Company has minimum collateral posting thresholds with certain of its derivative counterparties and, as of December 31, 2022, the Company had met these thresholds. If the Company had breached any of these provisions at December 31, 2022, it could have been required to settle its obligations under the agreements at the termination value. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 22 Commitments and Contingencies In the normal course of business, the Company enters into various off-balance sheet commitments to help meet the financing needs of clients. These financial instruments include commitments to extend credit, commercial and consumer lines of credit and standby letters of credit. The same credit policies are applied to these commitments as the loans in the consolidated statements of financial condition; however, these commitments involve varying degrees of credit risk in excess of the amount recognized in the consolidated statements of financial condition. The total amounts of unused commitments do not necessarily represent future credit exposure or cash requirements, as commitments often expire without being drawn upon. However, the contractual amount of these commitments, offset by any additional collateral pledged, represents the Company’s potential credit loss exposure. Total unfunded commitments at December 31, 2022 and 2021 were as follows: December 31, 2022 December 31, 2021 Commitments to fund loans $ 1,124,942 $ 462,151 Credit card lines of credit 7,167 — Unfunded commitments under lines of credit 862,369 530,397 Commercial and standby letters of credit 13,859 7,321 Total unfunded commitments $ 2,008,337 $ 999,869 Commitments to fund loans Credit card lines of credit Unfunded commitments under lines of credit Commercial and standby letters of credit Contingencies Mortgage loans sold to investors may be subject to repurchase or indemnification in the event of specific default by the borrower or subsequent discovery that underwriting standards were not met. The Company established a reserve liability for expected losses related to these representations and warranties based upon management’s evaluation of actual and historic loss history, delinquency trends or other documentation or deficiency findings in the portfolio and economic conditions. Charges against the reserve during the year ended December 31, 2022 and 2021 totaling $0.2 million and $0.5 million, respectively, were primarily driven by early payoffs. The Company recorded a repurchase reserve of $1.7 million and $2.1 million at December 31, 2022 and 2021, respectively, which is included in other liabilities in the consolidated statements of financial condition. The following table summarizes mortgage repurchase reserve activity for the periods presented: For the years ended December 31, 2022 2021 Beginning balance $ 2,102 $ 2,741 Reserve related to acquisitions 181 — Provision released from operating expense, net (331) (108) Charge-offs (227) (531) Ending balance $ 1,725 $ 2,102 In the ordinary course of business, the Company and NBH Bank may be subject to litigation. Based upon the available information and advice from the Company’s legal counsel, management does not believe that any potential, threatened or pending litigation to which it is a party will have a material adverse effect on the Company’s liquidity, financial condition or results of operations. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurements | |
Fair Value Measurements | Note 23 Fair Value Measurements The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to disclose the fair value of its financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. For disclosure purposes, the Company groups its financial and non-financial assets and liabilities into three different levels based on the nature of the instrument and the availability and reliability of the information that is used to determine fair value. The three levels are defined as follows: ● Level 1—Includes assets or liabilities in which the valuation methodologies are based on unadjusted quoted prices in active markets for identical assets or liabilities. ● Level 2—Includes assets or liabilities in which the inputs to the valuation methodologies are based on similar assets or liabilities in inactive markets, quoted prices for identical or similar assets or liabilities in inactive markets, and inputs other than quoted prices that are observable, such as interest rates, yield curves, volatilities, prepayment speeds, and other inputs obtained from observable market input. ● Level 3—Includes assets or liabilities in which the inputs to the valuation methodology are based on at least one significant assumption that is not observable in the marketplace. These valuations may rely on management’s judgment and may include internally-developed model-based valuation techniques. Level 1 inputs are considered to be the most transparent and reliable and level 3 inputs are considered to be the least transparent and reliable. The Company assumes the use of the principal market to conduct a transaction of each particular asset or liability being measured and then considers the assumptions that market participants would use when pricing the asset or liability. Whenever possible, the Company first looks for quoted prices for identical assets or liabilities in active markets (level 1 inputs) to value each asset or liability. However, when inputs from identical assets or liabilities on active markets are not available, the Company utilizes market observable data for similar assets and liabilities. The Company maximizes the use of observable inputs and limits the use of unobservable inputs to occasions when observable inputs are not available. The need to use unobservable inputs generally results from the lack of market liquidity of the actual financial instrument or of the underlying collateral. While third party price indications may be available in those cases, limited trading activity can challenge the observability of those inputs. Changes in the valuation inputs used for measuring the fair value of financial instruments may occur due to changes in current market conditions or other factors. Such changes may necessitate a transfer of the financial instruments to another level in the hierarchy based on the new inputs used. The Company recognizes these transfers at the end of the reporting period that the transfer occurs. During 2022 and 2021, there were no transfers of financial instruments between the hierarchy levels. The following is a description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of each instrument under the valuation hierarchy: Fair Value of Financial Instruments Measured on a Recurring Basis Investment securities available-for-sale Loans held for sale Interest rate swap derivatives Mortgage banking derivatives The tables below present the financial instruments measured at fair value on a recurring basis as of December 31, 2022 and 2021, in the consolidated statements of financial condition utilizing the hierarchy structure described above: December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Investment securities available-for-sale: U.S. Treasuries $ 71,388 $ — $ — $ 71,388 Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises — 226,131 — 226,131 Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises — 405,926 — 405,926 Municipal securities — 153 — 153 Corporate debt — 1,920 — 1,920 Loans held for sale — 22,767 — 22,767 Interest rate swap derivatives — 44,821 — 44,821 Mortgage banking derivatives — — 407 407 Total assets at fair value $ 71,388 $ 701,718 $ 407 $ 773,513 Liabilities: Interest rate swap derivatives $ — $ 12,589 $ — $ 12,589 Mortgage banking derivatives — — 278 278 Total liabilities at fair value $ — $ 12,589 $ 278 $ 12,867 December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Investment securities available-for-sale: Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ — $ 227,696 $ — $ 227,696 Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises — 461,334 — 461,334 Municipal securities — 237 — 237 Corporate debt — 2,111 — 2,111 Loans held for sale — 139,142 — 139,142 Interest rate swap derivatives — 8,798 — 8,798 Mortgage banking derivatives — — 1,883 1,883 Total assets at fair value $ — $ 839,318 $ 1,883 $ 841,201 Liabilities: Interest rate swap derivatives $ — $ 20,550 $ — $ 20,550 Mortgage banking derivatives — — 463 463 Total liabilities at fair value $ — $ 20,550 $ 463 $ 21,013 The table below details the changes in level 3 financial instruments during 2022: Mortgage banking derivatives, net Balance at December 31, 2021 $ 1,420 Loss included in earnings, net (2,124) Fees and costs included in earnings, net 833 Balance at December 31, 2022 $ 129 Fair Value of Financial Instruments Measured on a Non-recurring Basis Certain assets may be recorded at fair value on a non-recurring basis as conditions warrant. These non-recurring fair value measurements typically result from the application of lower of cost or fair value accounting or a write-down occurring during the period. Individually evaluated loans OREO Mortgage servicing rights 2022, 2021 SBA servicing rights Premises and equipment 31, 2022. During 2021, the Company completed the consolidation of seven banking centers and recognized $1.6 million of impairments in its consolidated statements of operations related to premises and equipment classified as held-for-sale totaling $6.0 million. The Company may be required to record fair value adjustments on other available-for-sale and municipal securities valued at par on a non-recurring basis. The tables below provide information regarding losses from the assets recorded at fair value on a non-recurring basis at December 31, 2022 and 2021. December 31, 2022 Total Losses from fair value changes Individually evaluated loans $ 31,384 $ 2,187 Other real estate owned 3,731 505 Mortgage servicing rights 9,162 60 Total $ 44,277 $ 2,752 December 31, 2021 Total Losses from fair value changes Individually evaluated loans $ 14,083 $ 1,816 Other real estate owned 7,005 799 Premises and equipment 6,032 1,552 Total $ 27,120 $ 4,167 The Company did not record any liabilities measured at fair value on a non-recurring basis during 2022 and 2021. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurements | |
Fair Value of Financial Instruments | Note 24 Fair Value of Financial Instruments The fair value of a financial instrument is the amount that would be exchanged between willing parties, other than in a forced liquidation. Fair value is determined based upon quoted market prices to the extent possible; however, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques that may be significantly impacted by the assumptions used, including the discount rate and estimates of future cash flows. Changes in any of these assumptions could significantly affect the fair value estimates. The fair value of the financial instruments listed below does not reflect a premium or discount that could result from offering all of the Company’s holdings of financial instruments at one time, nor does it reflect the underlying value of the Company, as ASC Topic 825 excludes certain financial instruments and all non-financial instruments from its disclosure requirements. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies and are based on the exit price concept within ASC Topic 825 and applied to this disclosure on a prospective basis. Considerable judgment is required to interpret market data in order to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The fair value of financial instruments at December 31, 2022 and 2021 are set forth below: Level in fair value December 31, 2022 December 31, 2021 measurement Carrying Estimated Carrying Estimated hierarchy amount fair value amount fair value ASSETS Cash and cash equivalents Level 1 $ 195,505 $ 195,505 $ 845,695 $ 845,695 U.S. Treasury securities - AFS Level 1 71,388 71,388 — — U.S. Treasury securities - HTM Level 1 49,045 47,629 — — Mortgage-backed securities—residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises available-for-sale Level 2 226,131 226,131 227,696 227,696 Mortgage-backed securities—other residential mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored enterprises available-for-sale Level 2 405,926 405,926 461,334 461,334 Municipal securities available-for-sale Level 2 153 153 237 237 Corporate debt Level 2 1,920 1,920 2,111 2,111 Other available-for-sale securities Level 3 771 771 469 469 Mortgage-backed securities—residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises held-to-maturity Level 2 339,815 298,816 312,916 309,614 Mortgage-backed securities—other residential mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored enterprises held-to-maturity Level 2 262,667 213,479 296,096 289,646 FHLB and FRB stock Level 2 38,390 38,390 14,533 14,533 Loans receivable Level 3 7,220,469 6,964,107 4,513,383 4,540,847 Loans held for sale Level 2 22,767 22,767 139,142 139,142 Accrued interest receivable Level 2 34,587 34,587 17,848 17,848 Interest rate swap derivatives Level 2 45,046 45,046 8,798 8,798 Mortgage banking derivatives Level 3 407 407 1,883 1,883 LIABILITIES Deposit transaction accounts Level 2 6,999,226 6,999,226 5,394,257 5,394,257 Time deposits Level 2 873,400 845,688 833,916 833,163 Securities sold under agreements to repurchase Level 2 20,214 20,214 22,768 22,768 Long-term debt Level 2 55,000 52,430 40,000 40,000 Federal Home Loan Bank advances Level 2 385,000 385,000 — — Accrued interest payable Level 2 3,201 3,201 3,944 3,944 Interest rate swap derivatives Level 2 12,589 12,589 20,550 20,550 Mortgage banking derivatives Level 3 278 278 463 463 |
Parent Company Only Financial S
Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2022 | |
Parent Company Only Financial Statements | |
Parent Company Only Financial Statements | Note 25 Parent Company Only Financial Statements Parent company only financial information for National Bank Holdings Corporation is summarized as follows: Condensed Statements of Financial Condition December 31, 2022 December 31, 2021 ASSETS Cash and cash equivalents $ 46,250 $ 107,154 Non-marketable securities 35,802 24,178 Investment in subsidiaries 1,034,501 746,135 Other assets 33,674 7,366 Total assets $ 1,150,227 $ 884,833 LIABILITIES AND STOCKHOLDERS’ EQUITY Long-term debt, net $ 53,890 $ 39,478 Other liabilities 4,135 5,249 Total liabilities 58,025 44,727 Shareholders’ equity 1,092,202 840,106 Total liabilities and shareholders’ equity $ 1,150,227 $ 884,833 Condensed Statements of Operations For the years ended December 31, 2022 2021 2020 Income Equity in undistributed earnings of subsidiaries $ 30,260 $ 37,866 $ 67,416 Distributions from subsidiaries 52,000 63,000 27,200 (Loss) income from non-marketable securities (262) 553 — Total income 81,998 101,419 94,616 Expenses Interest expense 1,519 197 — Salaries and benefits 6,138 5,622 5,136 Other expenses 6,433 5,042 2,621 Total expenses 14,090 10,861 7,757 Income before income taxes 67,908 90,558 86,859 Income tax benefit (3,366) (3,048) (1,732) Net income $ 71,274 $ 93,606 $ 88,591 Condensed Statements of Cash Flows For the years ended December 31, 2022 2021 2020 Cash flows from operating activities: Net income $ 71,274 $ 93,606 $ 88,591 Equity in undistributed earnings of subsidiaries (30,260) (37,866) (67,416) Stock-based compensation expense 6,059 5,541 5,299 Net excess tax (benefit) expense from stock-based compensation (294) (644) 51 Amortization 158 13 — Other 73 (3,747) 3,074 Net cash provided by operating activities 47,010 56,903 29,599 Cash flows from investing activities: Outlay for business combinations (67,128) — — Purchase of non-marketable securities (11,471) (23,025) — Net cash used in investing activities (78,599) (23,025) — Cash flows from financing activities: Proceeds from issuance of long-term debt — 40,000 — Payments of long-term debt issuance costs — (535) — Issuance of stock under purchase and equity compensation plans (1,481) (2,267) (749) Proceeds from exercise of stock options 1,102 2,489 1,832 Payment of dividends (30,447) (26,888) (24,816) Repurchase of shares — (36,400) (19,476) Net cash used in financing activities (30,826) (23,601) (43,209) Net increase (decrease) in cash, cash equivalents and restricted cash (62,415) 10,277 (13,610) Cash, cash equivalents and restricted cash at beginning of the year 111,679 101,402 115,012 Cash, cash equivalents and restricted cash at end of the year $ 49,264 $ 111,679 $ 101,402 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies | |
Cash and cash equivalents | a) Cash and cash equivalents |
Investment securities | b) Investment securities Management evaluates all investments in an unrealized loss position on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. If the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security, the security is written down to fair value and the entire loss is recorded in earnings. If either of the above criteria is not met, we evaluate whether the decline in fair value is the result of credit losses or other factors. In making the assessment, we may consider various factors including the extent to which fair value is less than amortized cost, performance on any underlying collateral, downgrades in the ratings of the security by a rating agency, the failure of the issuer to make scheduled interest or principal payments and adverse conditions specifically related to the security. If the assessment indicates that a credit loss exists, the present value of cash flows expected to be collected are compared to the amortized cost basis of the security and any excess is recorded as an allowance for credit loss. When the loss is not considered a result of credit loss, the cost basis of the security is written down to fair value, with the loss charge recognized in AOCI. The Company does not measure expected credit losses for U.S. agency-backed held-to-maturity securities, since the risk of nonpayment of the amortized cost basis is zero. Credit losses are not estimated for AIR from investment securities as interest deemed uncollectible is written off through interest income. |
Non-marketable securities | c) Non-marketable securities |
Loans receivable | d) Loans receivable — Estimated fair values of acquired loans are based on a discounted cash flow methodology that considers various factors including the type of loan and related collateral, the expected timing of cash flows, classification status, fixed or variable interest rate, term of loan and whether or not the loan is amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Discounts created when the loans are recorded at their estimated fair values at acquisition are accreted over the remaining term of the loan as an adjustment to the related loan’s yield. Similar to originated loans described below, the accrual of interest income on acquired loans is discontinued when the collection of principal or interest, in whole or in part, is doubtful. Acquired loans that have been identified as having experienced a more-than-insignificant deterioration in credit quality since origination are PCD loans. The net premium or discount on PCD loans is adjusted by our allowance for credit losses recorded at the time of acquisition. The remaining net premium or discount is accreted or amortized into interest income over the remaining life of the loan using the level yield method. The net premium or discount on non-PCD loans, that includes credit quality and interest rate considerations, is accreted or amortized into interest income over the remaining life of the loan using the level yield method. The Company then records the necessary allowance for credit losses on the non-PCD loans through provision for credit losses expense. Interest income on acquired loans and interest income on loans originated by the Company is accrued and credited to income as it is earned using the interest method based on daily balances of the principal amount outstanding. However, interest is generally not accrued on loans 90 days or more past due, unless they are well secured and in the process of collection. Additionally, in certain situations, loans that are not contractually past due may be placed on non-accrual status due to the continued failure to adhere to contractual payment terms by the borrower coupled with other pertinent factors, such as insufficient collateral value or deficient primary and secondary sources of repayment. Accrued interest receivable is reversed when a loan is placed on non-accrual status and payments received generally reduce the carrying value of the loan. Interest is not accrued while a loan is on non-accrual status and interest income is generally recognized on a cash basis only after payment in full of the past due principal and collection of principal outstanding is reasonably assured. A loan may be placed back on accrual status if all contractual payments have been received, or sooner under certain conditions and collection of future principal and interest payments is no longer doubtful. In the event of borrower default, the Company may seek recovery in compliance with state lending laws, the respective loan agreements, and credit monitoring and remediation procedures that may include modifying or restructuring a loan from its original terms, for economic or legal reasons, to provide a concession to the borrower from their original terms due to borrower financial difficulties in order to facilitate repayment. Such restructured loans are considered “troubled debt restructurings” and are identified in accordance with ASC 310-40. |
Loans held for sale | e) Loans held for sale — The Company enters into commitments to originate residential mortgage loans whereby the interest rate on the loan is determined prior to funding (i.e. interest rate lock commitments). Such interest rate lock commitments on mortgage loans to be sold in the secondary market are considered to be derivatives. To protect against the price risk inherent in residential mortgage loan commitments, the Company utilizes both "best efforts" and "mandatory delivery" forward loan sale commitments to mitigate the risk of potential increases or decreases in the values of loans that would result from the change in market rates for such loans. The Company manages the interest rate risk on interest rate lock commitments by entering into forward sale contracts of mortgage backed securities. Such contracts are accounted for as derivatives and are recorded at fair value as derivative assets or liabilities. They are carried in the consolidated statements of financial condition within other assets or other liabilities, and changes in fair value are recorded net as a component of mortgage banking income in the consolidated statements of operations. The gross gains on loan sales are recognized based on new loan commitments with adjustment for price and pair-off activity. Commission expenses on loans held for sale are recognized based on loans closed. |
Allowance for credit losses | f) Allowance for credit losses The Company utilizes a DCF model developed within a third-party software tool to establish expected lifetime credit losses for the loan portfolio. The ACL is calculated as the difference between the amortized cost basis and the projections from the DCF analysis. The DCF model allows for individual life of loan cash flow modeling, excluding extensions and renewals, using loan-specific interest rates and repayment schedules adjusted for estimated prepayment rates and loss recovery timing delays. The model incorporates forecasts of certain national macroeconomic factors, including unemployment rates, HPI, retail sales and GDP, which drive correlated probability of default (“PD”) and loss given default (“LGD”) rates. PD and LGD, in turn, drive the losses predicted in establishing our ACL. PD and LGD rates along with prepayment rates and loss recovery time delays are determined at a loan class level making use of both internal and peer historical loss rate data. The determination and application of the ACL accounting policy involves judgments, estimates, and uncertainties that are subject to change. For periods beyond the reasonable and supportable forecast period, we revert to historical long-term average loss rates on a straight-line basis. The length of the forecast period spans four quarters. The length of the reversion period is based on management’s assessment of the length and pattern of the current economic cycle and typically ranges from four to eight quarters. Management accounts for the inherent uncertainty of the underlying economic forecast by reviewing and weighting alternate forecast scenarios. Additionally, the ACL calculation includes subjective adjustments for qualitative risk factors that are likely to cause estimated credit losses to differ from historical experience. These qualitative adjustments may increase or reduce reserve levels and include adjustments for lending management experience and risk tolerance, loan review and audit results, asset quality and portfolio trends, loan portfolio growth and industry concentrations. The Company has elected to exclude AIR from the allowance for credit losses calculation. When a loan is placed on non-accrual, any recorded AIR is reversed against interest income. The determination and application of the ACL accounting policy involves judgments, estimates, and uncertainties that are subject to change. Changes in these assumptions, estimates or the conditions surrounding them may have a material impact on our financial condition, liquidity or results of operations. Various regulatory agencies, as an integral part of the examination process, periodically review the ACL. Such agencies may require the Company to recognize additions to the ACL or reserve increases to adversely graded classified loans based on their judgments about information available to them at the time of their examinations. The ACL is decreased by net charge-offs and is increased by provisions for loan losses that are charged to the statements of operations. Charge-offs, if any, are typically measured for each loan based on a thorough analysis of the most probable source of repayment, such as the present value of the loan’s expected future cash flows, the loan’s estimated fair value, or the estimated fair value of the underlying collateral less costs of disposition for collateral-dependent loans. When it is determined that specific loans, or portions thereof, are uncollectible, these amounts are charged off against the ACL. The Company uses an internal risk rating system to indicate credit quality in the loan portfolio. The risk rating system is applied to all loans and uses a series of grades, which reflect management’s assessment of the risk attributable to loans based on an analysis of the borrower’s financial condition and ability to meet contractual debt service requirements. Loans that management perceives to have acceptable risk are categorized as “Pass” loans. The “Special Mention” loans represent loans that have potential credit weaknesses that deserve management’s close attention. Special mention loans include borrowers that have potential weaknesses or unwarranted risks that, unless corrected, may threaten the borrower’s ability to meet debt requirements. However, these borrowers are still believed to have the ability to respond to and resolve the financial issues that threaten their financial situation. Loans classified as “Substandard” are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans have a distinct possibility of loss if the deficiencies are not corrected. “Doubtful” loans are loans that management believes the collection of payments in accordance with the terms of the loan agreement is highly questionable and improbable. Credit quality indicators are reviewed and updated in accordance with internal policy based on loan balance and risk rating. Interest accrual is discontinued on doubtful loans and certain substandard loans. Unfunded loan commitments In addition to the ACL for funded loans, the Company maintains reserves to cover the risk of loss associated with off-balance sheet unfunded loan commitments. The allowance for off-balance sheet credit losses is maintained within the other liabilities in the statements of financial condition. Under the CECL framework, adjustments to this liability are recorded as provision for credit losses in the statements of operations. Unfunded loan commitment balances are evaluated by loan class and further segregated by revolving and non-revolving commitments. In order to establish the required level of reserve, the Company applies average historical utilization rates and ACL loan model loss rates for each loan class to the outstanding unfunded commitment balances. |
Premises and equipment | g) Premises and equipment 7 3 incurred. The Company reviews premises and equipment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. An impairment loss is recognized when the sum of the undiscounted future net cash flows expected to result from the use of the asset and its eventual disposal is less than its carrying amount. Property and equipment that meet the held-for-sale criteria is recorded at the lower of its carrying amount or fair value less cost to sell and depreciation is ceased. |
Goodwill and intangible assets | h) Goodwill and intangible assets Intangible assets that have finite useful lives, such as core deposit intangibles, are amortized over their estimated useful lives. The Company’s core deposit intangible assets represent the value of the anticipated future cost savings that will result from the acquired core deposit relationships versus an alternative source of funding. Judgment may be used in assessing goodwill and intangible assets for impairment. Estimates of fair value are based on projections of revenues, operating costs and cash flows of the reporting unit considering historical and anticipated future results, general economic and market conditions, as well as the impact of planned business or operational strategies. The valuations use a combination of present value techniques to measure fair value considering market factors. Additionally, judgment is used in determining the useful lives of finite-lived intangible assets. Adverse changes in the economic environment, operations of the reporting unit, or changes in judgments and projections could result in a significantly different estimate of the fair value of the reporting unit and could result in an impairment of goodwill and/or intangible assets. MSRs associated with loans originated and sold, where servicing is retained, are initially capitalized at fair value and included in intangible assets in the consolidated statements of financial condition. For subsequent measurement purposes, the Company measures servicing assets based on the lower of cost or market using the amortization method. The values of these capitalized servicing rights are amortized as an offset to the loan servicing income earned in relation to the servicing revenue expected to be earned. The carrying values of these rights are reviewed quarterly for impairment based on the fair value of those assets. For purposes of impairment evaluation and measurement, management stratifies MSRs based on the predominant risk characteristics of the underlying loans, including loan type and loan term. If, by individual stratum, the carrying amount of these MSRs exceeds fair value, a valuation allowance is established and the impairment is recognized in mortgage banking income. If the fair value of impaired MSRs subsequently increases, management recognizes the increase in fair value in current period mortgage banking income and, through a reduction in the valuation allowance, adjusts the carrying value of the MSRs to a level not in excess of amortized cost. Small Business Administration servicing assets are related to loans sold where servicing is retained in exchange for a fee. SBA servicing assets are valued utilizing a discounted cash flow methodology based upon assumptions regarding retained balances, such as account retention rate and growth rates, interest expense including maintenance costs, alternative costs of funding, pre-payment speeds and defaults discounted at a market-based discount rate. The valuation methodology was applied to each loan individually based upon its specific characteristics. The SBA servicing rights asset will be amortized over the life of the underlying portfolio. |
Reserve for Mortgage Loan Repurchase Losses | i) Reserve for Mortgage Loan Repurchase Losses– be required to repurchase the mortgage loans with identified defects, indemnify the investor or insurer, or reimburse the investor for credit loss incurred on the loan (collectively “repurchase”) in the event of a material breach of such contractual representations or warranties. Risk associated with potential repurchases or other forms of settlement is managed through underwriting and quality assurance practices. The Company establishes mortgage repurchase reserves related to various representations and warranties that reflect management’s estimate of losses based on a combination of factors. Such factors incorporate actual and historic loss history, delinquency trends or other deficiencies found in the portfolio and economic conditions. The Company establishes a reserve at the time loans are sold and updates the reserve estimate quarterly during the estimated loan life. The repurchase reserve is included in other liabilities in the consolidated statements of financial condition. |
Other real estate owned | j) Other real estate owned |
Bank-owned life insurance | k) Bank-owned life insurance |
Securities purchased under agreements to resell and securities sold under agreements to repurchase | l) Securities purchased under agreements to resell and securities sold under agreements to repurchase |
Stock-based compensation | m) Stock-based compensation The fair value of stock options is measured using a Black-Scholes model. The fair value of time-based restricted stock awards and performance stock units with performance based vesting criteria is based on the Company’s stock price on the date of grant. The fair value of performance stock units with market-based vesting criteria is measured using a Monte Carlo simulation model. Compensation expense for the portion of the awards that contain performance and service vesting conditions is recognized over the requisite service period based on the fair value of the awards on the grant date. Compensation expense for the portion of the awards that contain a market vesting condition is recognized over the derived service period based on the fair value of the awards on the grant date. The amortization of stock-based compensation reflects any estimated forfeitures, and the expense realized in subsequent periods may be adjusted to reflect the actual forfeitures realized. The outstanding stock options primarily carry a maximum contractual term of ten years. To the extent that any award is forfeited, surrendered, terminated, expires, or lapses without being vested or exercised, the shares of stock subject to such award not delivered are again made available for awards under the Plan. Excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) are recognized in the consolidated statements of operations as a component of income tax expense or benefit and are classified as an operating activity within the Company’s consolidated statements of cash flows. The tax effects of exercised, expired or vested awards are treated as discrete items in the reporting period in which they occur and may result in increased volatility in our effective tax rate. Cash paid by the Company when directly withholding shares for tax withholding purposes is classified as a financing activity in the consolidated statements of cash flows. |
Income taxes | n) Income taxes Deferred tax assets and liabilities are recognized for temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. Deferred tax assets and liabilities are adjusted for the effects of changes in tax rates in the period of change. The Company establishes a valuation allowance when management believes, based on the weight of available evidence, it is more likely than not that some portion of the deferred tax assets will not be realized. The Company recognizes and measures income tax benefits based upon a two-step model: 1) a tax position must be more likely than not to be sustained based solely on its technical merits in order to be recognized; and 2) the benefit is measured as the largest dollar amount of that position that is more likely than not to be sustained upon settlement. The difference between the benefit recognized for a position in this model and the tax benefit claimed on a tax return is treated as an unrecognized tax benefit. The Company recognizes income tax related interest and penalties in other non-interest expense. |
Earnings per share | o) Earnings per share |
Interest Rate Swap Derivatives | p) Interest Rate Swap Derivatives The Company offers interest rate swap products to certain of its clients to manage potential changes in interest rates. Each contract between the Company and a client is offset with a contract between the Company and an institutional counterparty, thus minimizing the Company's exposure to rate changes. The Company's portfolio consists of a “matched book,” and as such, changes in fair value of the swap pairs will largely offset in earnings. In accordance with applicable accounting guidance, if certain conditions are met, a derivative may be designated as (1) a hedge of the exposure to changes in the fair value of a recognized asset or liability, or of an unrecognized firm commitment, that are attributable to a particular risk (referred to as a fair value hedge) or (2) a hedge of the exposure to variability in the cash flows of a recognized asset or liability, or of a forecasted transaction, that is attributable to a particular risk (referred to as a cash flow hedge). The Company documents all hedging relationships at the inception of each hedging relationship and uses industry accepted methodologies and ranges to determine the effectiveness of each hedge. The fair value of the hedged item is calculated using the estimated future cash flows of the hedged item and applying discount rates equal to the market interest rate for the hedged item at the inception of the hedging relationship (inception benchmark interest rate plus an inception credit spread), adjusted for changes in the designated benchmark interest rate thereafter. |
Treasury stock | q) Treasury stock to additional paid-in capital in the consolidated statements of financial condition. If the reissuance price is less than the cost basis (loss), the difference is recorded to additional paid-in capital to the extent there is a cumulative treasury stock paid-in capital balance. Any loss in excess of the cumulative treasury stock paid-in capital balance is charged to retained earnings. |
Acquisition activities | r) Acquisition activities Identifiable intangible assets are recognized separately if they arise from contractual or other legal rights or if they are separable (i.e., capable of being sold, transferred, licensed, rented, or exchanged separately from the entity). The depositor relationship related to deposit liabilities, as well as the client relationship related to assets under management, known as the core deposit and wealth management intangible assets, respectively, may be exchanged in observable exchange transactions. As a result, the core deposit and wealth management intangible assets are considered identifiable, because the separability criterion has been met. |
Acquisition Activities (Tables)
Acquisition Activities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Rock Canyon Bank | |
Acquisition Activities | |
Net Assets acquired (at fair value) and consideration transferred | September 1, 2022 Assets: Cash and due from banks $ 260,883 Investment securities available-for-sale 402 Non-marketable securities 977 Loans, net 535,197 Loans held for sale 3,069 Premises and equipment 3,413 Core deposit and other intangibles 16,463 Other assets 11,749 Total assets acquired 832,153 Liabilities: Total deposits 734,480 Other liabilities 10,115 Total liabilities assumed 744,595 Identifiable net assets acquired $ 87,558 Consideration: NBHC common stock paid, closing price of $40.13 on August 31, 2022 $ 124,272 Cash 16,141 Total 140,413 Goodwill $ 52,855 |
Summary of PCD loans purchased as part of the RCB acquisition | Commercial Commercial real estate non-owner occupied Residential real estate Consumer Total Unpaid principal balance $ 12,079 $ 220 $ 843 $ 3 $ 13,145 PCD allowance for credit loss at acquisition (2,257) (2) (215) — (2,474) (Discount) premium on acquired loans (787) 19 (5) — (773) Loans previously charged-off by RCB (2,051) — — (3) (2,054) Purchase price of PCD loans $ 6,984 $ 237 $ 623 $ — $ 7,844 |
Bank of Jackson Hole | |
Acquisition Activities | |
Net Assets acquired (at fair value) and consideration transferred | October 1, 2022 Assets: Cash and due from banks $ 40,509 Investment securities 203,728 Non-marketable securities 3,104 Loans, net 1,185,699 Loans held for sale 504 Premises and equipment 30,318 Core deposit and other intangibles 30,696 Other assets 31,970 Total assets acquired 1,526,528 Liabilities: Total deposits 1,375,593 Long-term debt 39,229 Fed funds purchased 25 Other liabilities 9,483 Total liabilities assumed 1,424,330 Identifiable net assets acquired $ 102,198 Consideration: NBHC common stock paid, closing price of $36.99 on September 30, 2022 $ 162,459 Cash 50,989 Total 213,448 Goodwill $ 111,250 |
Summary of PCD loans purchased as part of the RCB acquisition | Commercial Commercial real estate non-owner occupied Residential real estate Consumer Total Unpaid principal balance $ 5,061 $ 8,353 $ 476 $ 12 $ 13,902 PCD allowance for credit loss at acquisition (151) (3,557) (55) (1) (3,764) Discount on acquired loans (336) (226) (16) — (578) Purchase price of PCD loans $ 4,574 $ 4,570 $ 405 $ 11 $ 9,560 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investment Securities | |
Available-for-sale Securities | Available-for-sale securities are summarized as follows as of the dates indicated: December 31, 2022 Amortized Gross Gross cost unrealized gains unrealized losses Fair value U.S. Treasury securities $ 74,031 $ — $ (2,643) $ 71,388 Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises 263,939 1 (37,809) 226,131 Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 478,866 — (72,940) 405,926 Municipal securities 155 — (2) 153 Corporate debt 2,000 — (80) 1,920 Other securities 771 — — 771 Total investment securities available-for-sale $ 819,762 $ 1 $ (113,474) $ 706,289 December 31, 2021 Amortized Gross Gross cost unrealized gains unrealized losses Fair value Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ 231,523 $ 1,436 $ (5,263) $ 227,696 Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 467,490 1,889 (8,045) 461,334 Municipal securities 230 7 — 237 Corporate debt 2,000 111 — 2,111 Other securities 469 — — 469 Total investment securities available-for-sale $ 701,712 $ 3,443 $ (13,308) $ 691,847 |
Summary of unrealized losses for available-for-sale securities | The tables below summarize the available-for-sale securities with unrealized losses as of the dates shown, along with the length of the impairment period: December 31, 2022 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses U.S. Treasury securities $ 71,388 $ (2,643) $ — $ — $ 71,388 $ (2,643) Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises 83,748 (6,686) 141,272 (31,123) 225,020 (37,809) Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 196,449 (22,809) 209,477 (50,131) 405,926 (72,940) Municipal securities 153 (2) — — 153 (2) Corporate debt 1,920 (80) — — 1,920 (80) Total $ 353,658 $ (32,220) $ 350,749 $ (81,254) $ 704,407 $ (113,474) December 31, 2021 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ 163,579 $ (4,404) $ 22,852 $ (859) $ 186,431 $ (5,263) Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 237,759 (5,593) 48,750 (2,452) 286,509 (8,045) Total $ 401,338 $ (9,997) $ 71,602 $ (3,311) $ 472,940 $ (13,308) |
Summary of available-for-sale and held-to-maturity securities by maturity | December 31, 2022 Weighted Amortized Cost Fair Value Average Yield U.S. Treasury securities After one but within five years $ 74,031 $ 71,388 2.54% Municipal securities After one but within five years 155 153 3.17% Corporate debt After five but within ten years 2,000 1,920 5.87% December 31, 2022 Weighted Amortized Cost Fair Value Average Yield U.S. Treasury securities After one but within five years $ 49,045 $ 47,629 3.14% Total $ 49,045 $ 47,629 |
Held-to-maturity Securities | Held-to-maturity investment securities are summarized as follows as of the dates indicated: December 31, 2022 Gross Gross Amortized unrealized unrealized cost gains losses Fair value U.S. Treasury securities $ 49,045 $ — $ (1,416) $ 47,629 Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises 339,815 163 (41,162) 298,816 Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 262,667 — (49,188) 213,479 Total investment securities held-to-maturity $ 651,527 $ 163 $ (91,766) $ 559,924 December 31, 2021 Gross Gross Amortized unrealized unrealized cost gains losses Fair value Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ 312,916 $ 2,061 $ (5,363) $ 309,614 Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 296,096 122 (6,572) 289,646 Total investment securities held-to-maturity $ 609,012 $ 2,183 $ (11,935) $ 599,260 |
Summary of unrealized losses for held-to-maturity securities | The held-to-maturity portfolio included 129 securities which were in an unrealized loss position at December 31, 2022, compared to 48 securities at December 31, 2021. The tables below summarize the held-to-maturity securities with unrealized losses as of the dates shown, along with the length of the impairment period: December 31, 2022 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses U.S. Treasury securities $ 47,629 $ (1,416) $ — $ — $ 47,629 $ (1,416) Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises 83,323 (3,804) 182,159 (37,358) 265,482 (41,162) Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 34,704 (1,145) 178,776 (48,043) 213,480 (49,188) Total $ 165,656 $ (6,365) $ 360,935 $ (85,401) $ 526,591 $ (91,766) December 31, 2021 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ 197,095 $ (3,499) $ 45,353 $ (1,864) $ 242,448 $ (5,363) Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 276,098 (6,572) — — 276,098 (6,572) Total $ 473,193 $ (10,071) $ 45,353 $ (1,864) $ 518,546 $ (11,935) |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Loans | |
Loan Portfolio Composition Including Carrying Value by Segment of Originated and Acquired Loans Accounted for under ASC Topic 310-30 and Loans Covered by the FDIC Loss Sharing Agreements | December 31, 2022 Total loans % of total Commercial $ 4,251,780 58.9% Commercial real estate non-owner occupied 1,696,050 23.5% Residential real estate 1,251,281 17.3% Consumer 21,358 0.3% Total $ 7,220,469 100.0% December 31, 2021 Total loans % of total Commercial $ 3,162,417 70.1% Commercial real estate non-owner occupied 664,729 14.7% Residential real estate 668,656 14.8% Consumer 17,581 0.4% Total $ 4,513,383 100.0% |
Past Due Financing Receivables | Information about delinquent and non-accrual loans is shown in the following tables at December 31, 2022 and 2021: December 31, 2022 Greater 30-89 days than 90 days Total past past due and past due and Non-accrual due and accruing accruing loans non-accrual Current Total loans Commercial: Commercial and industrial $ 919 $ 53 $ 2,601 $ 3,573 $ 2,021,262 $ 2,024,835 Municipal and non-profit — — — — 959,626 959,626 Owner occupied commercial real estate — — 6,551 6,551 906,789 913,340 Food and agribusiness 699 — 2,148 2,847 351,132 353,979 Total commercial 1,618 53 11,300 12,971 4,238,809 4,251,780 Commercial real estate non-owner occupied: Construction — — — — 341,325 341,325 Acquisition/development — — — — 129,102 129,102 Multifamily — — — — 213,677 213,677 Non-owner occupied 629 — 685 1,314 1,010,632 1,011,946 Total commercial real estate 629 — 685 1,314 1,694,736 1,696,050 Residential real estate: Senior lien 446 — 4,174 4,620 1,149,728 1,154,348 Junior lien 255 — 341 596 96,337 96,933 Total residential real estate 701 — 4,515 5,216 1,246,065 1,251,281 Consumer 38 42 12 92 21,266 21,358 Total loans $ 2,986 $ 95 $ 16,512 $ 19,593 $ 7,200,876 $ 7,220,469 December 31, 2022 Non-accrual loans Non-accrual loans with a related with no related allowance for allowance for Non-accrual credit loss credit loss loans Commercial: Commercial and industrial $ 1,640 $ 961 $ 2,601 Municipal and non-profit — — — Owner occupied commercial real estate 693 5,858 6,551 Food and agribusiness 455 1,693 2,148 Total commercial 2,788 8,512 11,300 Commercial real estate non-owner occupied: Construction — — — Acquisition/development — — — Multifamily — — — Non-owner occupied 685 — 685 Total commercial real estate 685 — 685 Residential real estate: Senior lien 3,019 1,155 4,174 Junior lien 341 — 341 Total residential real estate 3,360 1,155 4,515 Consumer 12 — 12 Total loans $ 6,845 $ 9,667 $ 16,512 December 31, 2021 Greater 30-89 days than 90 days Total past past due and past due and Non-accrual due and accruing accruing loans non-accrual Current Total loans Commercial: Commercial and industrial $ 481 $ — $ 1,490 $ 1,971 $ 1,494,176 $ 1,496,147 Municipal and non-profit 202 — — 202 928,843 929,045 Owner occupied commercial real estate 207 — 4,525 4,732 528,904 533,636 Food and agribusiness 89 — 64 153 203,436 203,589 Total commercial 979 — 6,079 7,058 3,155,359 3,162,417 Commercial real estate non-owner occupied: Construction — — — — 86,126 86,126 Acquisition/development — — — — 9,609 9,609 Multifamily — — — — 92,174 92,174 Non-owner occupied 94 217 121 432 476,388 476,820 Total commercial real estate 94 217 121 432 664,297 664,729 Residential real estate: Senior lien 399 198 4,251 4,848 609,780 614,628 Junior lien 179 — 374 553 53,475 54,028 Total residential real estate 578 198 4,625 5,401 663,255 668,656 Consumer 36 5 7 48 17,533 17,581 Total loans $ 1,687 $ 420 $ 10,832 $ 12,939 $ 4,500,444 $ 4,513,383 December 31, 2021 Non-accrual loans Non-accrual loans with a related with no related allowance for allowance for Non-accrual credit loss credit loss loans Commercial: Commercial and industrial $ 1,490 $ — $ 1,490 Municipal and non-profit — — — Owner occupied commercial real estate 4,525 — 4,525 Food and agribusiness 64 — 64 Total commercial 6,079 — 6,079 Commercial real estate non-owner occupied: Construction — — — Acquisition/development — — — Multifamily — — — Non-owner occupied 121 — 121 Total commercial real estate 121 — 121 Residential real estate: Senior lien 3,274 977 4,251 Junior lien 374 — 374 Total residential real estate 3,648 977 4,625 Consumer 7 — 7 Total loans $ 9,855 $ 977 $ 10,832 |
Credit Exposure for Loans as Determined by Company's Internal Risk Rating System | The amortized cost basis for all loans as determined by the Company’s internal risk rating system and year of origination is shown in the following tables as of December 31, 2022 and 2021: December 31, 2022 Revolving Revolving loans loans Origination year amortized converted 2022 2021 2020 2019 2018 Prior cost basis to term Total Commercial: Commercial and industrial: Pass $ 528,180 $ 351,003 $ 129,453 $ 95,003 $ 101,951 $ 88,038 $ 688,398 $ 17,883 $ 1,999,909 Special mention 66 137 388 2,887 588 4,440 3,512 — 12,018 Substandard 34 7 1,882 200 189 10,270 50 30 12,662 Doubtful — — 246 — — — — — 246 Total commercial and industrial 528,280 351,147 131,969 98,090 102,728 102,748 691,960 17,913 2,024,835 Municipal and non-profit: Pass 105,630 246,696 89,562 59,066 73,013 383,158 2,501 — 959,626 Total municipal and non-profit 105,630 246,696 89,562 59,066 73,013 383,158 2,501 — 959,626 Owner occupied commercial real estate: Pass 263,635 203,628 100,522 92,653 70,447 121,448 24,930 894 878,157 Special mention — 515 — 6,956 2,616 17,360 — — 27,447 Substandard — — 1,185 4,612 — 931 — 234 6,962 Doubtful — — — 85 108 581 — — 774 Total owner occupied commercial real estate 263,635 204,143 101,707 104,306 73,171 140,320 24,930 1,128 913,340 Food and agribusiness: Pass 36,505 23,907 25,285 11,035 19,689 31,210 191,785 1,663 341,079 Special mention — 204 4,573 — 3,486 195 1,750 — 10,208 Substandard — 1,747 — 12 — 324 — 173 2,256 Doubtful — 186 250 — — — — — 436 Total food and agribusiness 36,505 26,044 30,108 11,047 23,175 31,729 193,535 1,836 353,979 Total commercial 934,050 828,030 353,346 272,509 272,087 657,955 912,926 20,877 4,251,780 Commercial real estate non-owner occupied: Construction: Pass 106,197 139,012 56,489 14,387 — 213 25,027 — 341,325 Total construction 106,197 139,012 56,489 14,387 — 213 25,027 — 341,325 Acquisition/development: Pass 57,773 33,663 7,810 1,921 3,939 16,648 7,348 — 129,102 Total acquisition/development 57,773 33,663 7,810 1,921 3,939 16,648 7,348 — 129,102 Multifamily: Pass 99,988 22,022 17,658 39,547 17,358 16,009 1,095 — 213,677 Total multifamily 99,988 22,022 17,658 39,547 17,358 16,009 1,095 — 213,677 Non-owner occupied Pass 235,958 172,648 120,871 138,711 42,489 249,461 11,707 — 971,845 Special mention — — 7,313 4,048 3,947 12,658 — — 27,966 Substandard — — — — 629 7,912 — — 8,541 Doubtful — — 280 — — 3,314 — — 3,594 Total non-owner occupied 235,958 172,648 128,464 142,759 47,065 273,345 11,707 — 1,011,946 Total commercial real estate non-owner occupied 499,916 367,345 210,421 198,614 68,362 306,215 45,177 — 1,696,050 Residential real estate: Senior lien Pass 361,405 323,984 133,847 47,557 30,283 184,998 66,792 496 1,149,362 Special mention — — — — — 362 — — 362 Substandard 191 186 468 854 105 2,769 — — 4,573 Doubtful — — — — 51 — — — 51 Total senior lien 361,596 324,170 134,315 48,411 30,439 188,129 66,792 496 1,154,348 Junior lien Pass 6,429 5,977 3,010 4,163 1,726 3,773 69,059 1,286 95,423 Special mention — — — — — 351 — — 351 Substandard 9 — 89 — 54 242 305 251 950 Doubtful — — — — — — — 209 209 Total junior lien 6,438 5,977 3,099 4,163 1,780 4,366 69,364 1,746 96,933 Total residential real estate 368,034 330,147 137,414 52,574 32,219 192,495 136,156 2,242 1,251,281 Consumer Pass 8,576 4,816 2,209 607 282 531 4,292 33 21,346 Substandard 3 — — — — 5 4 — 12 Total consumer 8,579 4,816 2,209 607 282 536 4,296 33 21,358 Total loans $ 1,810,579 $ 1,530,338 $ 703,390 $ 524,304 $ 372,950 $ 1,157,201 $ 1,098,555 $ 23,152 $ 7,220,469 December 31, 2021 Revolving Revolving loans loans Origination year amortized converted 2021 2020 2019 2018 2017 Prior cost basis to term Total Commercial: Commercial and industrial: Pass $ 424,813 $ 155,268 $ 146,420 $ 128,002 $ 49,408 $ 18,529 $ 519,678 $ 5,975 $ 1,448,093 Special mention — 1,122 2,000 3,446 22,654 4,440 1,824 250 35,736 Substandard — 99 89 744 10,399 303 105 — 11,739 Doubtful — 375 — 54 49 101 — — 579 Total commercial and industrial 424,813 156,864 148,509 132,246 82,510 23,373 521,607 6,225 1,496,147 Municipal and non-profit: Pass 234,827 93,310 69,509 81,175 147,115 302,574 535 — 929,045 Total municipal and non-profit 234,827 93,310 69,509 81,175 147,115 302,574 535 — 929,045 Owner occupied commercial real estate: Pass 122,641 81,072 84,359 71,183 48,086 77,100 13,666 1,688 499,795 Special mention — — 9,155 3,864 1,429 13,443 — — 27,891 Substandard — 1,192 1,527 — 220 2,028 — — 4,967 Doubtful — 389 550 — — 44 — — 983 Total owner occupied commercial real estate 122,641 82,653 95,591 75,047 49,735 92,615 13,666 1,688 533,636 Food and agribusiness: Pass 11,245 20,606 6,966 21,427 2,443 24,047 107,978 24 194,736 Special mention — 4,670 1,234 — — 215 1,897 — 8,016 Substandard — — — — 259 578 — — 837 Total food and agribusiness 11,245 25,276 8,200 21,427 2,702 24,840 109,875 24 203,589 Total commercial 793,526 358,103 321,809 309,895 282,062 443,402 645,683 7,937 3,162,417 Commercial real estate non-owner occupied: Construction: Pass 39,584 10,047 29,496 — 222 — 6,777 — 86,126 Total construction 39,584 10,047 29,496 — 222 — 6,777 — 86,126 Acquisition/development: Pass 1,691 385 766 1,830 30 4,907 — — 9,609 Total acquisition/development 1,691 385 766 1,830 30 4,907 — — 9,609 Multifamily: Pass 3,101 32,619 2,184 15,977 193 37,713 — — 91,787 Special mention — — — — — 387 — — 387 Total multifamily 3,101 32,619 2,184 15,977 193 38,100 — — 92,174 Non-owner occupied Pass 59,060 58,964 122,452 18,425 92,349 95,265 557 — 447,072 Special mention — — 5,747 5,584 9,745 3,898 — — 24,974 Substandard — — — 729 — 4,045 — — 4,774 Total non-owner occupied 59,060 58,964 128,199 24,738 102,094 103,208 557 — 476,820 Total commercial real estate non-owner occupied 103,436 102,015 160,645 42,545 102,539 146,215 7,334 — 664,729 Residential real estate: Senior lien Pass 223,120 100,476 38,696 21,889 29,554 177,051 18,278 188 609,252 Special mention — — — — — 290 — — 290 Substandard 44 325 684 318 299 3,416 — — 5,086 Total senior lien 223,164 100,801 39,380 22,207 29,853 180,757 18,278 188 614,628 Junior lien Pass 1,320 2,150 2,731 1,639 951 3,209 40,921 328 53,249 Special mention — — — — — — 24 322 346 Substandard — 19 — 62 131 221 — — 433 Total junior lien 1,320 2,169 2,731 1,701 1,082 3,430 40,945 650 54,028 Total residential real estate 224,484 102,970 42,111 23,908 30,935 184,187 59,223 838 668,656 Consumer: Pass 8,815 3,528 1,241 631 131 557 2,653 19 17,575 Substandard — — — — — 6 — — 6 Total consumer 8,815 3,528 1,241 631 131 563 2,653 19 17,581 Total loans $ 1,130,261 $ 566,616 $ 525,806 $ 376,979 $ 415,667 $ 774,367 $ 714,893 $ 8,794 $ 4,513,383 |
Schedule of collateral dependent loans | December 31, 2022 Total amortized Real property Business assets cost basis Commercial Commercial and industrial $ 2,869 $ 791 $ 3,660 Owner-occupied commercial real estate 6,711 1,346 8,057 Food and agribusiness 3,020 173 3,193 Total Commercial 12,600 2,310 14,910 Commercial real estate non owner-occupied Non-owner occupied 8,561 — 8,561 Total commercial real estate 8,561 — 8,561 Residential real estate Senior lien 2,806 — 2,806 Junior lien 460 — 460 Total residential real estate 3,266 — 3,266 Total loans $ 24,427 $ 2,310 $ 26,737 December 31, 2021 Total amortized Real property Business assets cost basis Commercial Commercial and industrial $ 3,270 $ 1,261 $ 4,531 Owner-occupied commercial real estate 4,012 255 4,267 Total Commercial 7,282 1,516 8,798 Residential real estate Senior lien 2,212 — 2,212 Total residential real estate 2,212 — 2,212 Total loans $ 9,494 $ 1,516 $ 11,010 |
Additional Information Related to Accruing TDR's | December 31, 2022 Amortized Average year-to-date Unpaid Unfunded commitments cost basis amortized cost basis principal balance to fund TDRs Commercial $ 2,160 $ 2,348 $ 2,150 $ 150 Commercial real estate non-owner occupied 685 734 699 — Residential real estate 1,809 1,867 1,964 — Consumer — — — — Total $ 4,654 $ 4,949 $ 4,813 $ 150 December 31, 2021 Amortized Average year-to-date Unpaid Unfunded commitments cost basis amortized cost basis principal balance to fund TDRs Commercial $ 4,066 $ 4,472 $ 4,417 $ — Commercial real estate non-owner occupied 725 767 892 — Residential real estate 2,395 2,468 2,781 — Consumer — — — — Total $ 7,186 $ 7,707 $ 8,090 $ — |
Summary of Company's Carrying Value of Non-Accrual TDR's | The following table summarizes the Company’s carrying value of non-accrual TDRs as of December 31, 2022 and 2021: December 31, 2022 December 31, 2021 Commercial $ 356 $ 644 Commercial real estate non-owner occupied 81 117 Residential real estate 2,041 1,605 Consumer — — Total non-accruing TDRs $ 2,478 $ 2,366 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Allowance for Credit Losses | |
Summary of Company's Allowance for Loan Losses ("ALL") and Recorded Investment in Loans | Year ended December 31, 2022 Non-owner occupied commercial Residential Commercial real estate real estate Consumer Total Beginning balance $ 31,256 $ 10,033 $ 8,056 $ 349 $ 49,694 Day 1 CECL provision expense 4,274 11,792 5,034 128 21,228 PCD allowance for credit loss at acquisition 2,408 3,559 270 1 6,238 Charge-offs (1,340) — (2) (845) (2,187) Recoveries 185 21 54 125 385 Provision expense for credit losses 825 6,645 5,894 831 14,195 Ending balance $ 37,608 $ 32,050 $ 19,306 $ 589 $ 89,553 Year ended December 31, 2021 Non-owner occupied commercial Residential Commercial real estate real estate Consumer Total Beginning balance $ 30,376 $ 17,448 $ 11,492 $ 461 $ 59,777 Charge-offs (1,171) — (24) (621) (1,816) Recoveries 371 7 48 126 552 Provision expense (release) for credit losses 1,680 (7,422) (3,460) 383 (8,819) Ending balance $ 31,256 $ 10,033 $ 8,056 $ 349 $ 49,694 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Summary of future minimum lease payments | Below is a summary of undiscounted future minimum lease payments as of December 31, 2022: Years ending December 31, Amount 2023 $ 6,219 2024 6,016 2025 4,709 2026 3,390 2027 3,097 Thereafter 21,663 Total lease payments 45,094 Less: Imputed interest (8,580) Present value of operating lease liabilities $ 36,514 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Premises and Equipment | |
Schedule of Premises and Equipment | Premises and equipment consisted of the following at December 31, 2022 and 2021: December 31, 2022 December 31, 2021 Land $ 40,245 $ 30,556 Buildings and improvements 112,188 86,201 Equipment 84,852 63,553 Total premises and equipment, at cost 237,285 180,310 Less: accumulated depreciation and amortization (101,174) (83,563) Premises and equipment, net $ 136,111 $ 96,747 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Real Estate Owned | |
Summary of Activity in OREO Balances | A summary of the activity in OREO during 2022 and 2021 is as follows: For the years ended December 31, 2022 2021 Beginning balance $ 7,005 $ 4,730 Transfers from loan portfolio, at fair value 147 4,516 Impairments (505) (799) Sales (2,916) (1,442) Ending balance $ 3,731 $ 7,005 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of gross carrying amount of intangible assets and the associated accumulated amortization | The gross carrying amount of the core deposit and wealth management intangibles and the associated accumulated amortization at December 31, 2022 and December 31, 2021, are presented as follows: December 31, 2022 December 31, 2021 Gross Net Gross Net carrying Accumulated carrying carrying Accumulated carrying amount amortization amount amount amortization amount Core deposit intangible $ 91,566 $ (44,775) $ 46,791 $ 48,834 $ (42,469) $ 6,365 Wealth management intangible 1,300 (32) 1,268 — — — Total $ 92,866 $ (44,807) $ 48,059 $ 48,834 $ (42,469) $ 6,365 |
Summary of changes in the mortgage servicing rights | Below are the changes in the MSRs for the years presented: For the years ended December 31, 2022 2021 Beginning balance $ 5,957 $ 10,380 Originations 4,187 7,881 Sales — (10,499) (Impairment) recovery (60) 740 Amortization (922) (2,545) Ending balance 9,162 5,957 Fair value of mortgage servicing rights $ 13,622 $ 7,729 |
Schedule of changes in the SBA servicing assets | For the years ended December 31, 2022 Beginning balance $ — Acquired through acquisition 3,126 Originations 9 Disposals (139) Amortization (99) Fair market value adjustment (231) Ending balance 2,666 Fair value of small business administration servicing rights $ 2,666 |
Core Deposits | |
Summary of estimated future amortization expense for the next five fiscal years | The following table shows the estimated future amortization expense during the next five years for the core deposit intangible as of December 31, 2022: Years ending December 31, Amount 2023 $ 5,321 2024 5,321 2025 5,321 2026 5,321 2027 5,321 |
Wealth management intangibles | |
Summary of estimated future amortization expense for the next five fiscal years | The following table shows the estimated future amortization expense during the next five years for the wealth management intangible as of December 31, 2022: Years ending December 31, Amount 2023 $ 130 2024 130 2025 130 2026 130 2027 130 |
MSRs | |
Summary of estimated future amortization expense for the next five fiscal years | The following table shows the estimated future amortization expense during the next five years for the MSRs as of December 31, 2022: Years ending December 31, Amount 2023 $ 1,097 2024 967 2025 852 2026 750 2027 661 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deposits | |
Summary of Time Deposits Based Upon Contractual Maturity | Years ending December 31, Amount 2023 $ 469,817 2024 273,278 2025 101,593 2026 23,059 2027 4,764 Thereafter 889 Total time deposits $ 873,400 |
Schedule of Interest Expense on Deposits | The Company incurred interest expense on deposits as follows during the years indicated: For the years ended December 31, 2022 2021 2020 Interest bearing demand deposits $ 2,163 $ 1,088 $ 1,921 Money market accounts 5,808 3,995 5,342 Savings accounts 1,376 1,157 1,342 Time deposits 5,249 7,362 15,024 Total $ 14,596 $ 13,602 $ 23,629 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Borrowings | |
Schedule of Selected Information Regarding Repurchase Agreements | The following table sets forth selected information regarding repurchase agreements during 2022, 2021 and 2020: As of and for the years ended December 31, 2022 2021 2020 Maximum amount of outstanding agreements at any month end during the period $ 25,342 $ 23,574 $ 54,489 Average amount outstanding during the period 21,298 20,338 30,355 Weighted average interest rate for the period 0.20% 0.11% 0.45% |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Regulatory Capital | |
Capital Ratio Requirements under Prompt Corrective Action or Other Regulatory Requirements | December 31, 2022 Required to be Required to be well capitalized under considered prompt corrective adequately Actual action provisions capitalized (1) Ratio Amount Ratio Amount Ratio Amount Tier 1 leverage ratio: Consolidated 9.3% $ 857,403 N/A N/A 4.0% $ 369,335 NBH Bank 8.6% 788,462 5.0% $ 458,593 4.0% 366,874 Bank of Jackson Hole Trust 31.0% 11,238 5.0% 1,373 4.0% 1,099 Common equity tier 1 risk based capital: Consolidated 10.5% $ 857,403 N/A N/A 7.0% $ 574,339 NBH Bank 9.7% 788,462 6.5% $ 528,334 7.0% 568,975 Bank of Jackson Hole Trust 71.6% 11,238 6.5% 1,020 7.0% 1,098 Tier 1 risk based capital ratio: Consolidated 10.5% $ 857,403 N/A N/A 8.5% $ 697,412 NBH Bank 9.7% 788,462 8.0% $ 650,257 8.5% 690,898 Bank of Jackson Hole Trust 71.6% 11,238 8.0% 1,255 8.5% 1,333 Total risk based capital ratio: Consolidated 12.2% $ 1,000,398 N/A N/A 10.5% $ 861,509 NBH Bank 10.8% 876,458 10.0% $ 812,821 10.5% 853,462 Bank of Jackson Hole Trust 71.6% 11,238 10.0% 1,569 10.5% 1,647 December 31, 2021 Required to be Required to be well capitalized under considered prompt corrective adequately Actual action provisions capitalized (1) Ratio Amount Ratio Amount Ratio Amount Tier 1 leverage ratio: Consolidated 10.4% $ 731,087 N/A N/A 4.0% $ 281,463 NBH Bank 9.1% 637,115 5.0% $ 350,584 4.0% 280,467 Common equity tier 1 risk based capital: Consolidated 14.3% $ 731,087 N/A N/A 7.0% $ 358,813 NBH Bank 12.5% 637,115 6.5% $ 331,427 7.0% 356,921 Tier 1 risk based capital ratio: Consolidated 14.3% $ 731,087 N/A N/A 8.5% $ 435,701 NBH Bank 12.5% 637,115 8.0% $ 407,910 8.5% 433,404 Total risk based capital ratio: Consolidated 15.9% $ 816,117 N/A N/A 10.5% $ 538,219 NBH Bank 13.4% 682,145 10.0% $ 509,888 10.5% 535,382 (1) Includes the capital conservation buffer of 2.5%. |
Revenue from Contracts with C_2
Revenue from Contracts with Clients (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contracts with Clients | |
Summary of non-interest income segregated by revenue streams | The following table presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, and non-interest expense in-scope of Topic 606 for the years ended December 31, 2022, 2021 and 2020. For the years ended December 31, 2022 2021 2020 Non-interest income In-scope of Topic 606: Service charges and other fees $ 18,772 $ 18,066 $ 16,913 Bank card fees 18,299 17,693 15,446 Trust and wealth management services 583 — — Non-interest income (in-scope of Topic 606) 37,654 35,759 32,359 Non-interest income (out-of-scope of Topic 606) 29,658 74,605 107,899 Total non-interest income $ 67,312 $ 110,364 $ 140,258 Non-interest expense In-scope of Topic 606: Gain on OREO sales, net $ 648 $ 475 38 Total revenue in-scope of Topic 606 $ 38,302 $ 36,234 $ 32,397 |
Stock-based Compensation and _2
Stock-based Compensation and Benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stock-based Compensation and Benefits | |
Schedule of weighted average assumptions using Black-Scholes option-pricing model | Below are the weighted average assumptions used in the Black-Scholes option pricing model to determine fair value of the Company’s stock options granted in 2022, 2021 and 2020: 2022 2021 2020 Weighted average fair value $ 11.14 $ 9.65 $ 3.37 Weighted average risk-free interest rate (1) 2.69% 1.14% 0.44% Expected volatility (2) 31.16% 30.54% 25.08% Expected term (years) (3) 6.04 6.04 6.04 Dividend yield (4) 2.24% 2.09% 3.44% (1) The risk-free rate for the expected term of the options was based on the U.S. Treasury yield curve at the date of grant and based on the expected term. (2) Expected volatility was calculated using historical volatility of the Company’s stock price for a period commensurate with the expected term of the options. For periods prior to the third quarter of 2018, expected volatility was calculated using a historical volatility of the Company’s stock price coupled with those of a peer group of eight comparable publicly traded companies for a period commensurate with the expected term of the options. (3) The expected term was estimated to be the average of the contractual vesting term and time to expiration. (4) The dividend yield was calculated in accordance with the Company’s dividend policy at the time of grant. |
Summary of Option Activity | The Company issued stock options in accordance with the 2014 Plan during 2022. The following table summarizes stock option activity for 2022: Weighted average Weighted remaining average contractual Aggregate exercise term in intrinsic Options price years value Outstanding at December 31, 2021 695,960 $ 28.19 6.57 $ 10,964 Granted 82,226 41.37 Exercised (48,666) 26.09 Forfeited (12,432) 31.38 Outstanding at December 31, 2022 717,088 29.79 5.98 8,850 Options exercisable at December 31, 2022 520,217 27.76 5.08 7,447 Options vested and expected to vest 702,485 29.58 5.92 8,805 |
Summary of outstanding stock options | The following table summarizes the Company’s outstanding stock options: Options outstanding Options exercisable Weighted average Number remaining contractual Weighted average Number Weighted average Range of exercise price outstanding life (years) exercise price exercisable exercise price $ 18.00 - 22.99 144,571 2.39 $ 19.23 144,571 $ 19.23 23.00 - 27.99 170,521 7.24 23.13 107,363 23.14 28.00 - 32.99 85,776 5.21 32.60 84,798 32.64 33.00 - 37.99 160,537 5.56 34.13 159,040 34.11 38.00 and above 155,683 8.80 40.85 24,445 40.24 |
Summary of Restricted Stock Activity | The following table summarizes restricted stock and performance stock unit activity during 2022 and 2021: Weighted Weighted Restricted average grant- Performance average grant- stock shares date fair value stock units date fair value Unvested at December 31, 2020 166,630 $ 27.42 184,837 $ 29.21 Granted 89,351 39.99 52,526 37.01 Adjustment due to performance — — 30,024 30.38 Vested (90,645) 29.78 (90,016) 30.38 Forfeited (20,869) 29.54 (16,977) 28.96 Unvested at December 31, 2021 144,467 $ 33.40 160,394 $ 31.36 Granted 118,190 40.76 51,931 38.40 Adjustment due to performance — — 17,741 32.44 Vested (84,898) 33.62 (67,875) 31.27 Forfeited (12,622) 37.00 (6,334) 32.70 Unvested at December 31, 2022 165,137 $ 38.28 155,857 $ 33.81 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share | |
Schedule of Computation of Basic and Diluted Earnings Per Share | The following table illustrates the computation of basic and diluted earnings per share for 2022, 2021 and 2020: For the years ended December 31, 2022 2021 2020 Net income $ 71,274 $ 93,606 $ 88,591 Less: income allocated to participating securities (152) (133) (130) Income allocated to common shareholders $ 71,122 $ 93,473 $ 88,461 Weighted average shares outstanding for basic earnings per common share 32,360,005 30,727,566 30,857,086 Dilutive effect of equity awards 320,927 340,593 218,771 Weighted average shares outstanding for diluted earnings per common share 32,680,932 31,068,159 31,075,857 Basic earnings per share $ 2.20 $ 3.04 $ 2.87 Diluted earnings per share 2.18 3.01 2.85 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes | |
Components of Income Tax Expense | Total income taxes for 2022, 2021 and 2020 were allocated as follows: For the years ended December 31, 2022 2021 2020 Current expense: U.S. federal $ 7,193 $ 13,746 $ 16,460 State and local 1,831 2,643 3,255 Total current income tax expense 9,024 16,389 19,715 Deferred expense: U.S. federal 5,100 4,327 560 State and local 786 649 531 Total deferred income tax expense 5,886 4,976 1,091 Income tax expense $ 14,910 $ 21,365 $ 20,806 |
Components of Tax Rate Reconciliation | The reconciliation between the income tax expenses and the amounts computed by applying the U.S. federal income tax rate to pretax income is as follows: For the years ended December 31, 2022 2021 2020 Income tax at federal statutory rates (21%) $ 18,098 $ 24,144 $ 22,974 State income taxes, net of federal benefits 2,067 2,601 2,991 Tax-exempt loan interest income (5,208) (4,862) (4,628) Bank-owned life insurance income (374) (603) (575) Stock-based compensation (402) (733) 43 Non-deductible compensation 514 852 388 Non-deductible acquisition costs 427 — — Other (212) (34) (387) Income tax expense $ 14,910 $ 21,365 $ 20,806 |
Significant Components of Deferred Taxes | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2022 and 2021 are presented below: December 31, 2022 December 31, 2021 Deferred tax assets: Net unrealized losses on investment securities $ 26,938 $ 2,169 Allowance for credit losses 20,967 11,806 Lease liability 8,549 4,811 Accrued compensation 4,535 4,355 Accrued stock-based compensation 1,742 1,384 Accrued expenses 942 316 Capitalized start-up costs 891 1,223 Other reserves 814 600 Nonaccrual interest income 812 556 Capitalized research and development costs 783 — Excess tax basis of acquired loans over carrying value 625 679 Net operating loss 507 573 Other real estate owned 369 645 Net deferred loan fees — 1,021 Other 1,087 635 Total deferred tax assets 69,561 30,773 Deferred tax liabilities: Intangible assets (9,943) (4,822) Right of use assets (8,300) (4,674) Premises and equipment (4,722) (1,858) Mortgage servicing rights (2,769) (1,415) Excess book basis in partnerships (989) (47) Net deferred loan costs (383) — Other (738) (267) Total deferred tax liabilities (27,844) (13,083) Net deferred tax asset $ 41,717 $ 17,690 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivatives | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Asset derivatives fair value Liability derivatives fair value Balance Sheet December 31, December 31, Balance Sheet December 31, December 31, location 2022 2021 Location 2022 2021 Derivatives designated as hedging instruments: Interest rate products Other assets $ 34,164 $ 477 Other liabilities $ 1,929 $ 12,221 Total derivatives designated as hedging instruments $ 34,164 $ 477 $ 1,929 $ 12,221 Derivatives not designated as hedging instruments: Interest rate products Other assets $ 10,657 $ 8,321 Other liabilities $ 10,660 $ 8,329 Interest rate lock commitments Other assets 197 1,792 Other liabilities 174 197 Forward contracts Other assets 210 91 Other liabilities 104 266 Total derivatives not designated as hedging instruments $ 11,064 $ 10,204 $ 10,938 $ 8,792 |
Derivative Instruments, Gain (Loss) | The tables below present the effect of the Company’s derivative financial instruments in the consolidated statements of operations for 2022 and 2021: Location of gain (loss) Amount of gain recognized in income on derivatives Derivatives in fair value recognized in income on For the years ended December 31, hedging relationships derivatives 2022 2021 Interest rate products Interest and fees on loans $ 44,266 $ 20,040 Location of gain (loss) Amount of loss recognized in income on hedged items recognized in income on For the years ended December 31, Hedged items hedged items 2022 2021 Interest rate products Interest and fees on loans $ (46,708) $ (19,602) Location of gain (loss) Amount of gain (loss) recognized in income on derivatives Derivatives not designated recognized in income on For the years ended December 31, as hedging instruments derivatives 2022 2021 Interest rate products Other non-interest expense $ 6 $ 23 Interest rate lock commitments Mortgage banking income (2,405) (6,852) Forward contracts Mortgage banking income 281 2,447 Total $ (2,118) $ (4,382) |
Summary of effect of fair value cash flow hedge accounting on accumulated other comprehensive income | The table below presents the effect of fair value cash flow hedge accounting on AOCI as of the dates presented. The Company did not utilize cash flow hedges until the third quarter of 2022. For the year ended December 31, 2022 Loss recognized in OCI on derivative Loss recognized in OCI included component Loss recognized in OCI excluded component Location of Loss recognized from AOCI into income Loss reclassified from AOCI into income Loss reclassified from AOCI into income included component Loss reclassified from AOCI into income excluded component Derivatives in cash flow hedging relationships: Interest rate products $ (2,245) $ (2,192) $ (53) Interest income $ (124) $ (32) $ (92) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies | |
Schedule of Total Unfunded Commitments | Total unfunded commitments at December 31, 2022 and 2021 were as follows: December 31, 2022 December 31, 2021 Commitments to fund loans $ 1,124,942 $ 462,151 Credit card lines of credit 7,167 — Unfunded commitments under lines of credit 862,369 530,397 Commercial and standby letters of credit 13,859 7,321 Total unfunded commitments $ 2,008,337 $ 999,869 |
Schedule of Repurchase Reserve | The following table summarizes mortgage repurchase reserve activity for the periods presented: For the years ended December 31, 2022 2021 Beginning balance $ 2,102 $ 2,741 Reserve related to acquisitions 181 — Provision released from operating expense, net (331) (108) Charge-offs (227) (531) Ending balance $ 1,725 $ 2,102 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurements | |
Tables of Financial Instruments Measured At Fair Value on Recurring Basis | The tables below present the financial instruments measured at fair value on a recurring basis as of December 31, 2022 and 2021, in the consolidated statements of financial condition utilizing the hierarchy structure described above: December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Investment securities available-for-sale: U.S. Treasuries $ 71,388 $ — $ — $ 71,388 Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises — 226,131 — 226,131 Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises — 405,926 — 405,926 Municipal securities — 153 — 153 Corporate debt — 1,920 — 1,920 Loans held for sale — 22,767 — 22,767 Interest rate swap derivatives — 44,821 — 44,821 Mortgage banking derivatives — — 407 407 Total assets at fair value $ 71,388 $ 701,718 $ 407 $ 773,513 Liabilities: Interest rate swap derivatives $ — $ 12,589 $ — $ 12,589 Mortgage banking derivatives — — 278 278 Total liabilities at fair value $ — $ 12,589 $ 278 $ 12,867 December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Investment securities available-for-sale: Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ — $ 227,696 $ — $ 227,696 Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises — 461,334 — 461,334 Municipal securities — 237 — 237 Corporate debt — 2,111 — 2,111 Loans held for sale — 139,142 — 139,142 Interest rate swap derivatives — 8,798 — 8,798 Mortgage banking derivatives — — 1,883 1,883 Total assets at fair value $ — $ 839,318 $ 1,883 $ 841,201 Liabilities: Interest rate swap derivatives $ — $ 20,550 $ — $ 20,550 Mortgage banking derivatives — — 463 463 Total liabilities at fair value $ — $ 20,550 $ 463 $ 21,013 |
Table of Changes in Level 3 Financial Instruments | The table below details the changes in level 3 financial instruments during 2022: Mortgage banking derivatives, net Balance at December 31, 2021 $ 1,420 Loss included in earnings, net (2,124) Fees and costs included in earnings, net 833 Balance at December 31, 2022 $ 129 |
Table of Assets Recorded at Fair Value On a Non-Recurring Basis | The tables below provide information regarding losses from the assets recorded at fair value on a non-recurring basis at December 31, 2022 and 2021. December 31, 2022 Total Losses from fair value changes Individually evaluated loans $ 31,384 $ 2,187 Other real estate owned 3,731 505 Mortgage servicing rights 9,162 60 Total $ 44,277 $ 2,752 December 31, 2021 Total Losses from fair value changes Individually evaluated loans $ 14,083 $ 1,816 Other real estate owned 7,005 799 Premises and equipment 6,032 1,552 Total $ 27,120 $ 4,167 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurements | |
Fair Value of Financial Instruments | The fair value of financial instruments at December 31, 2022 and 2021 are set forth below: Level in fair value December 31, 2022 December 31, 2021 measurement Carrying Estimated Carrying Estimated hierarchy amount fair value amount fair value ASSETS Cash and cash equivalents Level 1 $ 195,505 $ 195,505 $ 845,695 $ 845,695 U.S. Treasury securities - AFS Level 1 71,388 71,388 — — U.S. Treasury securities - HTM Level 1 49,045 47,629 — — Mortgage-backed securities—residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises available-for-sale Level 2 226,131 226,131 227,696 227,696 Mortgage-backed securities—other residential mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored enterprises available-for-sale Level 2 405,926 405,926 461,334 461,334 Municipal securities available-for-sale Level 2 153 153 237 237 Corporate debt Level 2 1,920 1,920 2,111 2,111 Other available-for-sale securities Level 3 771 771 469 469 Mortgage-backed securities—residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises held-to-maturity Level 2 339,815 298,816 312,916 309,614 Mortgage-backed securities—other residential mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored enterprises held-to-maturity Level 2 262,667 213,479 296,096 289,646 FHLB and FRB stock Level 2 38,390 38,390 14,533 14,533 Loans receivable Level 3 7,220,469 6,964,107 4,513,383 4,540,847 Loans held for sale Level 2 22,767 22,767 139,142 139,142 Accrued interest receivable Level 2 34,587 34,587 17,848 17,848 Interest rate swap derivatives Level 2 45,046 45,046 8,798 8,798 Mortgage banking derivatives Level 3 407 407 1,883 1,883 LIABILITIES Deposit transaction accounts Level 2 6,999,226 6,999,226 5,394,257 5,394,257 Time deposits Level 2 873,400 845,688 833,916 833,163 Securities sold under agreements to repurchase Level 2 20,214 20,214 22,768 22,768 Long-term debt Level 2 55,000 52,430 40,000 40,000 Federal Home Loan Bank advances Level 2 385,000 385,000 — — Accrued interest payable Level 2 3,201 3,201 3,944 3,944 Interest rate swap derivatives Level 2 12,589 12,589 20,550 20,550 Mortgage banking derivatives Level 3 278 278 463 463 |
Parent Company Only Financial_2
Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Parent Company Only Financial Statements | |
Condensed Statements | Parent company only financial information for National Bank Holdings Corporation is summarized as follows: Condensed Statements of Financial Condition December 31, 2022 December 31, 2021 ASSETS Cash and cash equivalents $ 46,250 $ 107,154 Non-marketable securities 35,802 24,178 Investment in subsidiaries 1,034,501 746,135 Other assets 33,674 7,366 Total assets $ 1,150,227 $ 884,833 LIABILITIES AND STOCKHOLDERS’ EQUITY Long-term debt, net $ 53,890 $ 39,478 Other liabilities 4,135 5,249 Total liabilities 58,025 44,727 Shareholders’ equity 1,092,202 840,106 Total liabilities and shareholders’ equity $ 1,150,227 $ 884,833 Condensed Statements of Operations For the years ended December 31, 2022 2021 2020 Income Equity in undistributed earnings of subsidiaries $ 30,260 $ 37,866 $ 67,416 Distributions from subsidiaries 52,000 63,000 27,200 (Loss) income from non-marketable securities (262) 553 — Total income 81,998 101,419 94,616 Expenses Interest expense 1,519 197 — Salaries and benefits 6,138 5,622 5,136 Other expenses 6,433 5,042 2,621 Total expenses 14,090 10,861 7,757 Income before income taxes 67,908 90,558 86,859 Income tax benefit (3,366) (3,048) (1,732) Net income $ 71,274 $ 93,606 $ 88,591 Condensed Statements of Cash Flows For the years ended December 31, 2022 2021 2020 Cash flows from operating activities: Net income $ 71,274 $ 93,606 $ 88,591 Equity in undistributed earnings of subsidiaries (30,260) (37,866) (67,416) Stock-based compensation expense 6,059 5,541 5,299 Net excess tax (benefit) expense from stock-based compensation (294) (644) 51 Amortization 158 13 — Other 73 (3,747) 3,074 Net cash provided by operating activities 47,010 56,903 29,599 Cash flows from investing activities: Outlay for business combinations (67,128) — — Purchase of non-marketable securities (11,471) (23,025) — Net cash used in investing activities (78,599) (23,025) — Cash flows from financing activities: Proceeds from issuance of long-term debt — 40,000 — Payments of long-term debt issuance costs — (535) — Issuance of stock under purchase and equity compensation plans (1,481) (2,267) (749) Proceeds from exercise of stock options 1,102 2,489 1,832 Payment of dividends (30,447) (26,888) (24,816) Repurchase of shares — (36,400) (19,476) Net cash used in financing activities (30,826) (23,601) (43,209) Net increase (decrease) in cash, cash equivalents and restricted cash (62,415) 10,277 (13,610) Cash, cash equivalents and restricted cash at beginning of the year 111,679 101,402 115,012 Cash, cash equivalents and restricted cash at end of the year $ 49,264 $ 111,679 $ 101,402 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 12 Months Ended |
Dec. 31, 2022 item | |
Basis of Presentation | |
Number of full service banking offices | 95 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 loan | |
Significant Accounting Policies [Line Items] | |
Residential mortgage loans held for sale period | 45 days |
Number of primary loan segment | 4 |
Number of loan classes | 11 |
Buildings [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated useful life of the asset | 39 years |
Maximum [Member] | |
Significant Accounting Policies [Line Items] | |
Fair values are subject to refinement maximum year | 1 year |
Maximum [Member] | Stock options [Member] | |
Significant Accounting Policies [Line Items] | |
Contractual term | 10 years |
Maximum [Member] | Building Improvements [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated useful life of the asset | 15 years |
Maximum [Member] | Equipment [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated useful life of the asset | 7 years |
Minimum [Member] | Building Improvements [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated useful life of the asset | 7 years |
Minimum [Member] | Equipment [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated useful life of the asset | 3 years |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase in allowance for credit losses | $ 89,553 | $ 49,694 | $ 59,777 | |
Increase in allowance for credit losses | $ 39,900 | |||
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase in allowance for credit losses | $ 5,800 | |||
Increase in allowance for credit losses net of tax | 4,600 | |||
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment [Member] | Mortgage-Backed Securities (MBS) [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase in allowance for credit losses net of tax | $ 0 |
Acquisition Activities (Details
Acquisition Activities (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Oct. 01, 2022 USD ($) item shares | Sep. 01, 2022 USD ($) item shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Sep. 30, 2022 $ / shares | Aug. 31, 2022 $ / shares | |
Acquisition Activities | |||||||
Acquisition related expenses | $ 15,067 | ||||||
Provision expense (release) for loan losses | 36,729 | $ (9,293) | $ 17,630 | ||||
Rock Canyon Bank | |||||||
Acquisition Activities | |||||||
Cash consideration | $ 16,141 | ||||||
Shares issued | shares | 3,096,745 | ||||||
Transaction value | $ 140,413 | ||||||
Closing price | $ / shares | $ 40.13 | ||||||
Number of banking centers added | item | 7 | ||||||
Acquisition related expenses | 12,300 | ||||||
Provision expense (release) for loan losses | 5,400 | ||||||
Bank of Jackson Hole | |||||||
Acquisition Activities | |||||||
Cash consideration | $ 50,989 | ||||||
Shares issued | shares | 4,391,964 | ||||||
Transaction value | $ 213,448 | ||||||
Closing price | $ / shares | $ 36.99 | ||||||
Number of banking centers added | item | 12 | ||||||
Acquisition related expenses | 24,500 | ||||||
Provision expense (release) for loan losses | $ 16,300 |
Acquisition Activities - Net As
Acquisition Activities - Net Asset Acquired and Consideration Transferred (Details) - USD ($) $ in Thousands | Oct. 01, 2022 | Sep. 01, 2022 | Dec. 31, 2022 | Dec. 31, 2021 |
Consideration: | ||||
Goodwill | $ 279,132 | $ 115,027 | ||
Rock Canyon Bank | ||||
Assets: | ||||
Cash and due from banks | $ 260,883 | |||
Investment securities available-for-sale | 402 | |||
Non-marketable securities | 977 | |||
Loans, net | 535,197 | |||
Loans held for sale | 3,069 | |||
Premises and equipment | 3,413 | |||
Intangible asset | 16,463 | |||
Other assets | 11,749 | |||
Total assets acquired | 832,153 | |||
Liabilities: | ||||
Total deposits | 734,480 | |||
Other liabilities | 10,115 | |||
Total liabilities assumed | 744,595 | |||
Identifiable net assets acquired | 87,558 | |||
Consideration: | ||||
NBHC common stock paid, closing price | 124,272 | |||
Cash consideration | 16,141 | |||
Total | 140,413 | |||
Goodwill | $ 52,855 | |||
Bank of Jackson Hole | ||||
Assets: | ||||
Cash and due from banks | $ 40,509 | |||
Investment securities available-for-sale | 203,728 | |||
Non-marketable securities | 3,104 | |||
Loans, net | 1,185,699 | |||
Loans held for sale | 504 | |||
Premises and equipment | 30,318 | |||
Intangible asset | 30,696 | |||
Other assets | 31,970 | |||
Total assets acquired | 1,526,528 | |||
Liabilities: | ||||
Total deposits | 1,375,593 | |||
Long-term debt | 39,229 | |||
Fed funds purchased | 25 | |||
Other liabilities | 9,483 | |||
Total liabilities assumed | 1,424,330 | |||
Identifiable net assets acquired | 102,198 | |||
Consideration: | ||||
NBHC common stock paid, closing price | 162,459 | |||
Cash consideration | 50,989 | |||
Total | 213,448 | |||
Goodwill | $ 111,250 |
Acquisition Activities - Intang
Acquisition Activities - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 01, 2022 | Sep. 01, 2022 | Dec. 31, 2022 | |
Small Business Administration ("SBA") servicing rights | |||
Acquisition Activities | |||
Acquired through acquisition | $ 3,126 | ||
Rock Canyon Bank | |||
Acquisition Activities | |||
Acquired through acquisition | $ 52,900 | ||
Rock Canyon Bank | Core Deposits | |||
Acquisition Activities | |||
Acquired through acquisition | $ 13,300 | ||
Amortization period | 10 years | ||
Rock Canyon Bank | Small Business Administration ("SBA") servicing rights | |||
Acquisition Activities | |||
Acquired through acquisition | $ 3,100 | 3,100 | |
Bank of Jackson Hole | |||
Acquisition Activities | |||
Acquired through acquisition | $ 111,300 | 111,300 | |
Amount transferred from available-for-sale securities to held-to-maturity | $ 75,300 | ||
Amortization period | 10 years | ||
Bank of Jackson Hole | Core Deposits | |||
Acquisition Activities | |||
Acquired through acquisition | $ 29,400 | 29,400 | |
Bank of Jackson Hole | Wealth management intangibles | |||
Acquisition Activities | |||
Acquired through acquisition | $ 1,300 | $ 1,300 |
Acquisition Activities - Accoun
Acquisition Activities - Accounting for acquired loans (Details) - USD ($) $ in Thousands | Oct. 01, 2022 | Sep. 01, 2022 |
Rock Canyon Bank | ||
Acquisition Activities | ||
Loans, net | $ 535,197 | |
Loans acquired accounted as PCD | 13,145 | |
Loans charged off | 2,100 | |
Loans previously charged-off | 2,054 | |
Rock Canyon Bank | Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Acquisition Activities | ||
Loans, net | 537,700 | |
Loans acquired accounted as PCD | $ 11,100 | |
Loans acquired accounted as PCD percentage | 2.10% | |
Gross contractual amounts receivable | $ 13,800 | |
Loans not expected to be collected | $ 4,500 | |
Bank of Jackson Hole | ||
Acquisition Activities | ||
Loans, net | $ 1,185,699 | |
Loans acquired accounted as PCD | 13,902 | |
Loans charged off | 500 | |
Bank of Jackson Hole | Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Acquisition Activities | ||
Loans, net | 1,200,000 | |
Loans acquired accounted as PCD | $ 13,900 | |
Loans acquired accounted as PCD percentage | 1.10% | |
Gross contractual amounts receivable | $ 14,000 | |
Loans charged off | 500 | |
Loans not expected to be collected | $ 3,800 |
Acquisition Activities - Summar
Acquisition Activities - Summary of PCD loans purchased (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 01, 2022 | Sep. 01, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | |||
PCD allowance for credit loss at acquisition | $ (6,238) | ||
Commercial Portfolio Segment [Member] | |||
Business Acquisition [Line Items] | |||
PCD allowance for credit loss at acquisition | (2,408) | ||
Commercial Real Estate Portfolio Segment [Member] | |||
Business Acquisition [Line Items] | |||
PCD allowance for credit loss at acquisition | (3,559) | ||
Residential Portfolio Segment [Member] | |||
Business Acquisition [Line Items] | |||
PCD allowance for credit loss at acquisition | (270) | ||
Consumer Loan [Member] | |||
Business Acquisition [Line Items] | |||
PCD allowance for credit loss at acquisition | $ (1) | ||
Rock Canyon Bank | |||
Business Acquisition [Line Items] | |||
Unpaid principal balance | $ 13,145 | ||
PCD allowance for credit loss at acquisition | (2,474) | ||
(Discount) premium on acquired loans | (773) | ||
Loans previously charged-off by RCB | (2,054) | ||
Purchase price of PCD loans | 7,844 | ||
Rock Canyon Bank | Commercial Portfolio Segment [Member] | |||
Business Acquisition [Line Items] | |||
Unpaid principal balance | 12,079 | ||
PCD allowance for credit loss at acquisition | (2,257) | ||
(Discount) premium on acquired loans | (787) | ||
Loans previously charged-off by RCB | (2,051) | ||
Purchase price of PCD loans | 6,984 | ||
Rock Canyon Bank | Commercial Real Estate Portfolio Segment [Member] | |||
Business Acquisition [Line Items] | |||
Unpaid principal balance | 220 | ||
PCD allowance for credit loss at acquisition | (2) | ||
(Discount) premium on acquired loans | 19 | ||
Purchase price of PCD loans | 237 | ||
Rock Canyon Bank | Residential Portfolio Segment [Member] | |||
Business Acquisition [Line Items] | |||
Unpaid principal balance | 843 | ||
PCD allowance for credit loss at acquisition | (215) | ||
(Discount) premium on acquired loans | (5) | ||
Purchase price of PCD loans | 623 | ||
Rock Canyon Bank | Consumer Loan [Member] | |||
Business Acquisition [Line Items] | |||
Unpaid principal balance | 3 | ||
Loans previously charged-off by RCB | $ (3) | ||
Bank of Jackson Hole | |||
Business Acquisition [Line Items] | |||
Unpaid principal balance | $ 13,902 | ||
PCD allowance for credit loss at acquisition | (3,764) | ||
(Discount) premium on acquired loans | (578) | ||
Purchase price of PCD loans | 9,560 | ||
Bank of Jackson Hole | Commercial Portfolio Segment [Member] | |||
Business Acquisition [Line Items] | |||
Unpaid principal balance | 5,061 | ||
PCD allowance for credit loss at acquisition | (151) | ||
(Discount) premium on acquired loans | (336) | ||
Purchase price of PCD loans | 4,574 | ||
Bank of Jackson Hole | Commercial Real Estate Portfolio Segment [Member] | |||
Business Acquisition [Line Items] | |||
Unpaid principal balance | 8,353 | ||
PCD allowance for credit loss at acquisition | (3,557) | ||
(Discount) premium on acquired loans | (226) | ||
Purchase price of PCD loans | 4,570 | ||
Bank of Jackson Hole | Residential Portfolio Segment [Member] | |||
Business Acquisition [Line Items] | |||
Unpaid principal balance | 476 | ||
PCD allowance for credit loss at acquisition | (55) | ||
(Discount) premium on acquired loans | (16) | ||
Purchase price of PCD loans | 405 | ||
Bank of Jackson Hole | Consumer Loan [Member] | |||
Business Acquisition [Line Items] | |||
Unpaid principal balance | 12 | ||
PCD allowance for credit loss at acquisition | (1) | ||
Purchase price of PCD loans | $ 11 |
Acquisition Activities - Unaudi
Acquisition Activities - Unaudited Pro forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||
Total revenue | $ 419,100 | $ 398,700 | |
Net income | $ 120,500 | $ 103,500 | |
Pro forma basic earnings per share | $ 3.19 | $ 2.70 | |
Pro forma diluted earnings per share | $ 3.17 | $ 2.68 | |
Acquisition related expenses | $ 15,067 | ||
Pro forma acquisition related expenses | 36,800 | ||
Estimated pro forma acquisition related expenses incurred by acquiree | 4,900 | ||
Estimated net accretion of loan and investment marks | 8,800 | $ 11,800 | |
Estimated amortization of fair value marks on long term debt | 200 | 200 | |
Amortization of fair value marks on long term debt | 200 | 200 | |
Amortization of acquired identifiable intangibles | 3,300 | 4,400 | |
Total Revenue | 38,302 | 36,234 | $ 32,397 |
Net income | 71,274 | $ 93,606 | $ 88,591 |
Rock Canyon Bank | |||
Business Acquisition [Line Items] | |||
Acquisition related expenses | 12,300 | ||
Bank of Jackson Hole | |||
Business Acquisition [Line Items] | |||
Acquisition related expenses | $ 24,500 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) security | Dec. 31, 2021 USD ($) security | Dec. 31, 2020 USD ($) | Oct. 01, 2022 USD ($) | |
Investment securities total | $ 1,400,000 | $ 1,300,000 | ||
Amortized cost | 819,762 | 701,712 | ||
Available-for-sale Securities | 706,289 | 691,847 | ||
Held-to-maturity securities | 651,527 | 609,012 | ||
Purchases of available-for-sale securities | 259,846 | 288,580 | $ 286,130 | |
Maturities and paydowns of available-for-sale securities | 141,892 | 235,860 | 271,508 | |
Sales of available-for-sale securities | $ 128,430 | $ 0 | ||
Number of securities | security | 244 | 49 | ||
Purchases of held-to-maturity securities | $ 101,699 | $ 397,758 | 284,170 | |
Maturities and paydowns of held-to-maturity securities | $ 133,363 | $ 161,923 | 88,071 | |
Number of held-to-maturity securities in unrealized loss positions | security | 129 | 48 | ||
Held-to-maturity investment securities pledged as collateral | $ 355,300 | $ 147,300 | ||
Held-to-maturity investment securities held as collateral | 0 | 0 | ||
Asset Pledged as Collateral | Federal Funds Purchased [Member] | ||||
Available-for-sale Securities | $ 484,900 | $ 363,400 | ||
Financing Receivable, Pledging Purpose [Extensible Enumeration] | Noninterest-bearing Deposit Liabilities | Noninterest-bearing Deposit Liabilities | ||
Asset Pledged as Collateral | Federal Home Loan Bank Advances [Member] | ||||
Available-for-sale Securities | $ 0 | $ 0 | ||
Fair value of available-for-sale investment securities pledged as collateral | 0 | 0 | $ 0 | |
Bank of Jackson Hole | ||||
Available-for-sale securities acquired | $ 203,728 | |||
Transfer of available-for-sale securities to held-to-maturity | 75,300 | |||
Available-for-Sale Securities [Member] | ||||
Accrued interest receivable | 1,500 | 1,000 | ||
Held-to-Maturity Securities [Member] | ||||
Accrued interest receivable | 1,100 | $ 900 | ||
Other Securities Investments With No Contractual Maturity | ||||
Amortized cost | $ 800 |
Investment Securities - Summary
Investment Securities - Summary of Available-for-Sale Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 819,762 | $ 701,712 |
Gross unrealized gains | 1 | 3,443 |
Gross unrealized losses | (113,474) | (13,308) |
Fair Value | 706,289 | 691,847 |
U.S. Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 74,031 | |
Gross unrealized losses | (2,643) | |
Fair Value | 71,388 | |
Residential Mortgage Pass-Through Securities Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member]. | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 263,939 | 231,523 |
Gross unrealized gains | 1 | 1,436 |
Gross unrealized losses | (37,809) | (5,263) |
Fair Value | 226,131 | 227,696 |
Other Residential MBS Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 478,866 | 467,490 |
Gross unrealized gains | 1,889 | |
Gross unrealized losses | (72,940) | (8,045) |
Fair Value | 405,926 | 461,334 |
Municipal Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 155 | 230 |
Gross unrealized gains | 7 | |
Gross unrealized losses | (2) | |
Fair Value | 153 | 237 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 2,000 | 2,000 |
Gross unrealized gains | 111 | |
Gross unrealized losses | (80) | |
Fair Value | 1,920 | 2,111 |
Other Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 771 | 469 |
Fair Value | $ 771 | $ 469 |
Investment Securities - Summa_2
Investment Securities - Summary of Unrealized Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | $ 353,658 | $ 401,338 |
Less than 12 months, Unrealized losses | (32,220) | (9,997) |
12 months or more, Fair Value | 350,749 | 71,602 |
12 months or more, Unrealized Loss | (81,254) | (3,311) |
Total, Fair Value | 704,407 | 472,940 |
Total, Unrealized losses | (113,474) | (13,308) |
U.S. Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 71,388 | |
Less than 12 months, Unrealized losses | (2,643) | |
Total, Fair Value | 71,388 | |
Total, Unrealized losses | (2,643) | |
Residential Mortgage Pass-Through Securities Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member]. | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 83,748 | 163,579 |
Less than 12 months, Unrealized losses | (6,686) | (4,404) |
12 months or more, Fair Value | 141,272 | 22,852 |
12 months or more, Unrealized Loss | (31,123) | (859) |
Total, Fair Value | 225,020 | 186,431 |
Total, Unrealized losses | (37,809) | (5,263) |
Other Residential MBS Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 196,449 | 237,759 |
Less than 12 months, Unrealized losses | (22,809) | (5,593) |
12 months or more, Fair Value | 209,477 | 48,750 |
12 months or more, Unrealized Loss | (50,131) | (2,452) |
Total, Fair Value | 405,926 | 286,509 |
Total, Unrealized losses | (72,940) | $ (8,045) |
Municipal Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 153 | |
Less than 12 months, Unrealized losses | (2) | |
Total, Fair Value | 153 | |
Total, Unrealized losses | (2) | |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 1,920 | |
Less than 12 months, Unrealized losses | (80) | |
Total, Fair Value | 1,920 | |
Total, Unrealized losses | $ (80) |
Investment Securities - Summa_3
Investment Securities - Summary of Available-for-sale Securities By Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Amortized cost | $ 819,762 | $ 701,712 |
Fair Value | ||
Fair Value | 706,289 | 691,847 |
U.S. Treasury Securities [Member] | ||
Amortized Cost | ||
After one but within five years | 74,031 | |
Amortized cost | 74,031 | |
Fair Value | ||
After one but within five years | 71,388 | |
Fair Value | $ 71,388 | |
Weighted Average Yield | ||
After one but within five years | 2.54% | |
Municipal Securities [Member] | ||
Amortized Cost | ||
After one but within five years | $ 155 | |
Amortized cost | 155 | 230 |
Fair Value | ||
After one but within five years | 153 | |
Fair Value | $ 153 | 237 |
Weighted Average Yield | ||
After one but within five years | 3.17% | |
Corporate Debt Securities [Member] | ||
Amortized Cost | ||
After five but within ten years | $ 2,000 | |
Amortized cost | 2,000 | 2,000 |
Fair Value | ||
After five but within ten years | 1,920 | |
Fair Value | $ 1,920 | $ 2,111 |
Weighted Average Yield | ||
After five but within ten years | 5.87% |
Investment Securities - Summa_4
Investment Securities - Summary of Held-to-maturity Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity Securities | $ 651,527 | $ 609,012 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 163 | 2,183 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | (91,766) | (11,935) |
Fair value | 559,924 | 599,260 |
U.S. Treasury Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity Securities | 49,045 | |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | (1,416) | |
Fair value | 47,629 | |
Residential Mortgage Pass-Through Securities Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member]. | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity Securities | 339,815 | 312,916 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 163 | 2,061 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | (41,162) | (5,363) |
Fair value | 298,816 | 309,614 |
Other Residential MBS Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity Securities | 262,667 | 296,096 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 122 | |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | (49,188) | (6,572) |
Fair value | $ 213,479 | $ 289,646 |
Investment Securities - Summa_5
Investment Securities - Summary of Held-to-Maturity Securities, Unrealized Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair Value, Less than 12 months | $ 165,656 | $ 473,193 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (6,365) | (10,071) |
Fair Value, 12 months or more | 360,935 | 45,353 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (85,401) | (1,864) |
Total Fair Value | 526,591 | 518,546 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | (91,766) | (11,935) |
U.S. Treasury Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair Value, Less than 12 months | 47,629 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (1,416) | |
Total Fair Value | 47,629 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | (1,416) | |
Residential Mortgage Pass-Through Securities Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member]. | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair Value, Less than 12 months | 83,323 | 197,095 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (3,804) | (3,499) |
Fair Value, 12 months or more | 182,159 | 45,353 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (37,358) | (1,864) |
Total Fair Value | 265,482 | 242,448 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | (41,162) | (5,363) |
Other Residential MBS Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair Value, Less than 12 months | 34,704 | 276,098 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (1,145) | (6,572) |
Fair Value, 12 months or more | 178,776 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (48,043) | |
Total Fair Value | 213,480 | 276,098 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (49,188) | $ (6,572) |
Investment Securities - Summa_6
Investment Securities - Summary of Held-to-Maturity Securities By Maturity (Details) - U.S. Treasury Securities [Member] $ in Thousands | Dec. 31, 2022 USD ($) |
Amortized Cost | |
After one but within five years | $ 49,045 |
Total Held-to-Maturity securities at amortized cost | 49,045 |
Fair Value | |
After one but within five years | 47,629 |
Total Held-to-Maturity securities at fair value | $ 47,629 |
Weighted Average Yield | |
After one but within five years | 3.14% |
Non-Marketable Securities - Nar
Non-Marketable Securities - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Non-marketable Securities | |||
Non-marketable securities | $ 89,049 | $ 50,740 | |
Other non-marketable securities | 50,700 | 36,200 | |
Equity method investments | 21,700 | 14,200 | |
Convertible preferred stock without readily determinable fair values | 29,000 | 22,000 | |
Purchase of non-marketable securities | 13,500 | 27,700 | |
Proceeds from non-marketable securities | 4,175 | 2,006 | $ 13,709 |
FHLB Stock | 20,300 | 700 | |
FRB stock | 18,100 | 13,900 | |
Purchases of FHLB and FRB stock | 23,800 | $ 0 | |
Sales of FHLB stock | 4,000 | ||
FHLB and FRB stock acquired due to acquisitions | $ 4,000 |
Loans - Loan Portfolio Composit
Loans - Loan Portfolio Composition Including Carrying Value by Segment of Loans Accounted for under ASC Topic 310-30 (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Loans [Line Items] | ||
Fees and cost related to loans | $ 38,800 | $ 9,400 |
Total Loans | $ 7,220,469 | $ 4,513,383 |
% of Total | 100% | 100% |
Commercial Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Total Loans | $ 4,251,780 | $ 3,162,417 |
% of Total | 58.90% | 70.10% |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Total Loans | $ 1,696,050 | $ 664,729 |
% of Total | 23.50% | 14.70% |
Residential Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Total Loans | $ 1,251,281 | $ 668,656 |
% of Total | 17.30% | 14.80% |
Consumer Loan [Member] | ||
Loans [Line Items] | ||
Total Loans | $ 21,358 | $ 17,581 |
% of Total | 0.30% | 0.40% |
Loans - Loan Delinquency (Detai
Loans - Loan Delinquency (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Loans [Line Items] | ||
Non- accrual loans | $ 16,512 | $ 10,832 |
Total past due and non-accrual | 19,593 | 12,939 |
Total loans | 7,220,469 | 4,513,383 |
Non-accrual loans with a related allowance | 6,845 | 9,855 |
Non-accrual loans with no related allowance | 9,667 | 977 |
Non-accrual interest income | 0 | 0 |
Commercial Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Non- accrual loans | 11,300 | 6,079 |
Total past due and non-accrual | 12,971 | 7,058 |
Total loans | 4,251,780 | 3,162,417 |
Non-accrual loans with a related allowance | 2,788 | 6,079 |
Non-accrual loans with no related allowance | 8,512 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Loans [Line Items] | ||
Non- accrual loans | 2,601 | 1,490 |
Total past due and non-accrual | 3,573 | 1,971 |
Total loans | 2,024,835 | 1,496,147 |
Non-accrual loans with a related allowance | 1,640 | 1,490 |
Non-accrual loans with no related allowance | 961 | |
Commercial Portfolio Segment [Member] | Municipal Securities [Member] | ||
Loans [Line Items] | ||
Total past due and non-accrual | 202 | |
Total loans | 959,626 | 929,045 |
Commercial Portfolio Segment [Member] | Owner-Occupied [Member] | ||
Loans [Line Items] | ||
Non- accrual loans | 6,551 | 4,525 |
Total past due and non-accrual | 6,551 | 4,732 |
Total loans | 913,340 | 533,636 |
Non-accrual loans with a related allowance | 693 | 4,525 |
Non-accrual loans with no related allowance | 5,858 | |
Commercial Portfolio Segment [Member] | Agriculture [Member] | ||
Loans [Line Items] | ||
Non- accrual loans | 2,148 | 64 |
Total past due and non-accrual | 2,847 | 153 |
Total loans | 353,979 | 203,589 |
Non-accrual loans with a related allowance | 455 | 64 |
Non-accrual loans with no related allowance | 1,693 | |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Non- accrual loans | 685 | 121 |
Total past due and non-accrual | 1,314 | 432 |
Total loans | 1,696,050 | 664,729 |
Non-accrual loans with a related allowance | 685 | 121 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Loans [Line Items] | ||
Total loans | 341,325 | 86,126 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Acquisition/Development [Member] | ||
Loans [Line Items] | ||
Total loans | 129,102 | 9,609 |
Commercial Real Estate Portfolio Segment [Member] | Multifamily [Member] | ||
Loans [Line Items] | ||
Total loans | 213,677 | 92,174 |
Commercial Real Estate Portfolio Segment [Member] | Non Owner-Occupied [Member] | ||
Loans [Line Items] | ||
Non- accrual loans | 685 | 121 |
Total past due and non-accrual | 1,314 | 432 |
Total loans | 1,011,946 | 476,820 |
Non-accrual loans with a related allowance | 685 | 121 |
Residential Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Non- accrual loans | 4,515 | 4,625 |
Total past due and non-accrual | 5,216 | 5,401 |
Total loans | 1,251,281 | 668,656 |
Non-accrual loans with a related allowance | 3,360 | 3,648 |
Non-accrual loans with no related allowance | 1,155 | 977 |
Residential Portfolio Segment [Member] | Sr lien [Member] | ||
Loans [Line Items] | ||
Non- accrual loans | 4,174 | 4,251 |
Total past due and non-accrual | 4,620 | 4,848 |
Total loans | 1,154,348 | 614,628 |
Non-accrual loans with a related allowance | 3,019 | 3,274 |
Non-accrual loans with no related allowance | 1,155 | 977 |
Residential Portfolio Segment [Member] | Jr Lien 1-4 Family Closed End [Member] | ||
Loans [Line Items] | ||
Non- accrual loans | 341 | 374 |
Total past due and non-accrual | 596 | 553 |
Total loans | 96,933 | 54,028 |
Non-accrual loans with a related allowance | 341 | 374 |
Consumer Loan [Member] | ||
Loans [Line Items] | ||
Non- accrual loans | 12 | 7 |
Total past due and non-accrual | 92 | 48 |
Total loans | 21,358 | 17,581 |
Non-accrual loans with a related allowance | 12 | 7 |
30-89 Days Past Due | ||
Loans [Line Items] | ||
Total loans | 2,986 | 1,687 |
30-89 Days Past Due | Commercial Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Total loans | 1,618 | 979 |
30-89 Days Past Due | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Loans [Line Items] | ||
Total loans | 919 | 481 |
30-89 Days Past Due | Commercial Portfolio Segment [Member] | Municipal Securities [Member] | ||
Loans [Line Items] | ||
Total loans | 202 | |
30-89 Days Past Due | Commercial Portfolio Segment [Member] | Owner-Occupied [Member] | ||
Loans [Line Items] | ||
Total loans | 207 | |
30-89 Days Past Due | Commercial Portfolio Segment [Member] | Agriculture [Member] | ||
Loans [Line Items] | ||
Total loans | 699 | 89 |
30-89 Days Past Due | Commercial Real Estate Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Total loans | 629 | 94 |
30-89 Days Past Due | Commercial Real Estate Portfolio Segment [Member] | Non Owner-Occupied [Member] | ||
Loans [Line Items] | ||
Total loans | 629 | 94 |
30-89 Days Past Due | Residential Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Total loans | 701 | 578 |
30-89 Days Past Due | Residential Portfolio Segment [Member] | Sr lien [Member] | ||
Loans [Line Items] | ||
Total loans | 446 | 399 |
30-89 Days Past Due | Residential Portfolio Segment [Member] | Jr Lien 1-4 Family Closed End [Member] | ||
Loans [Line Items] | ||
Total loans | 255 | 179 |
30-89 Days Past Due | Consumer Loan [Member] | ||
Loans [Line Items] | ||
Total loans | 38 | 36 |
Greater than 90 Days Past Due | ||
Loans [Line Items] | ||
Total loans | 95 | 420 |
Greater than 90 Days Past Due | Commercial Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Total loans | 53 | |
Greater than 90 Days Past Due | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Loans [Line Items] | ||
Total loans | 53 | |
Greater than 90 Days Past Due | Commercial Real Estate Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Total loans | 217 | |
Greater than 90 Days Past Due | Commercial Real Estate Portfolio Segment [Member] | Non Owner-Occupied [Member] | ||
Loans [Line Items] | ||
Total loans | 217 | |
Greater than 90 Days Past Due | Residential Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Total loans | 198 | |
Greater than 90 Days Past Due | Residential Portfolio Segment [Member] | Sr lien [Member] | ||
Loans [Line Items] | ||
Total loans | 198 | |
Greater than 90 Days Past Due | Consumer Loan [Member] | ||
Loans [Line Items] | ||
Total loans | 42 | 5 |
Current | ||
Loans [Line Items] | ||
Total loans | 7,200,876 | 4,500,444 |
Current | Commercial Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Total loans | 4,238,809 | 3,155,359 |
Current | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Loans [Line Items] | ||
Total loans | 2,021,262 | 1,494,176 |
Current | Commercial Portfolio Segment [Member] | Municipal Securities [Member] | ||
Loans [Line Items] | ||
Total loans | 959,626 | 928,843 |
Current | Commercial Portfolio Segment [Member] | Owner-Occupied [Member] | ||
Loans [Line Items] | ||
Total loans | 906,789 | 528,904 |
Current | Commercial Portfolio Segment [Member] | Agriculture [Member] | ||
Loans [Line Items] | ||
Total loans | 351,132 | 203,436 |
Current | Commercial Real Estate Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Total loans | 1,694,736 | 664,297 |
Current | Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Loans [Line Items] | ||
Total loans | 341,325 | 86,126 |
Current | Commercial Real Estate Portfolio Segment [Member] | Commercial Acquisition/Development [Member] | ||
Loans [Line Items] | ||
Total loans | 129,102 | 9,609 |
Current | Commercial Real Estate Portfolio Segment [Member] | Multifamily [Member] | ||
Loans [Line Items] | ||
Total loans | 213,677 | 92,174 |
Current | Commercial Real Estate Portfolio Segment [Member] | Non Owner-Occupied [Member] | ||
Loans [Line Items] | ||
Total loans | 1,010,632 | 476,388 |
Current | Residential Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Total loans | 1,246,065 | 663,255 |
Current | Residential Portfolio Segment [Member] | Sr lien [Member] | ||
Loans [Line Items] | ||
Total loans | 1,149,728 | 609,780 |
Current | Residential Portfolio Segment [Member] | Jr Lien 1-4 Family Closed End [Member] | ||
Loans [Line Items] | ||
Total loans | 96,337 | 53,475 |
Current | Consumer Loan [Member] | ||
Loans [Line Items] | ||
Total loans | $ 21,266 | $ 17,533 |
Loans - Carrying Value of Loan
Loans - Carrying Value of Loan Portfolio by Segment and Credit Quality Indicator (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | $ 1,810,579 | $ 1,130,261 |
2021/2020 | 1,530,338 | 566,616 |
2020/2019 | 703,390 | 525,806 |
2019/2018 | 524,304 | 376,979 |
2018/2017 | 372,950 | 415,667 |
Prior | 1,157,201 | 774,367 |
Revolving Loans Amortized Cost Basis | 1,098,555 | 714,893 |
Revolving Loans Converted to Term | 23,152 | 8,794 |
Total loans | 7,220,469 | 4,513,383 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 934,050 | 793,526 |
2021/2020 | 828,030 | 358,103 |
2020/2019 | 353,346 | 321,809 |
2019/2018 | 272,509 | 309,895 |
2018/2017 | 272,087 | 282,062 |
Prior | 657,955 | 443,402 |
Revolving Loans Amortized Cost Basis | 912,926 | 645,683 |
Revolving Loans Converted to Term | 20,877 | 7,937 |
Total loans | 4,251,780 | 3,162,417 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 528,280 | 424,813 |
2021/2020 | 351,147 | 156,864 |
2020/2019 | 131,969 | 148,509 |
2019/2018 | 98,090 | 132,246 |
2018/2017 | 102,728 | 82,510 |
Prior | 102,748 | 23,373 |
Revolving Loans Amortized Cost Basis | 691,960 | 521,607 |
Revolving Loans Converted to Term | 17,913 | 6,225 |
Total loans | 2,024,835 | 1,496,147 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 528,180 | 424,813 |
2021/2020 | 351,003 | 155,268 |
2020/2019 | 129,453 | 146,420 |
2019/2018 | 95,003 | 128,002 |
2018/2017 | 101,951 | 49,408 |
Prior | 88,038 | 18,529 |
Revolving Loans Amortized Cost Basis | 688,398 | 519,678 |
Revolving Loans Converted to Term | 17,883 | 5,975 |
Total loans | 1,999,909 | 1,448,093 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 66 | |
2021/2020 | 137 | 1,122 |
2020/2019 | 388 | 2,000 |
2019/2018 | 2,887 | 3,446 |
2018/2017 | 588 | 22,654 |
Prior | 4,440 | 4,440 |
Revolving Loans Amortized Cost Basis | 3,512 | 1,824 |
Revolving Loans Converted to Term | 250 | |
Total loans | 12,018 | 35,736 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 34 | |
2021/2020 | 7 | 99 |
2020/2019 | 1,882 | 89 |
2019/2018 | 200 | 744 |
2018/2017 | 189 | 10,399 |
Prior | 10,270 | 303 |
Revolving Loans Amortized Cost Basis | 50 | 105 |
Revolving Loans Converted to Term | 30 | |
Total loans | 12,662 | 11,739 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 375 | |
2020/2019 | 246 | |
2019/2018 | 54 | |
2018/2017 | 49 | |
Prior | 101 | |
Total loans | 246 | 579 |
Commercial Portfolio Segment [Member] | Municipal Securities [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 105,630 | 234,827 |
2021/2020 | 246,696 | 93,310 |
2020/2019 | 89,562 | 69,509 |
2019/2018 | 59,066 | 81,175 |
2018/2017 | 73,013 | 147,115 |
Prior | 383,158 | 302,574 |
Revolving Loans Amortized Cost Basis | 2,501 | 535 |
Total loans | 959,626 | 929,045 |
Commercial Portfolio Segment [Member] | Municipal Securities [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 105,630 | |
2021/2020 | 246,696 | |
2020/2019 | 89,562 | |
2019/2018 | 59,066 | |
2018/2017 | 73,013 | |
Prior | 383,158 | |
Revolving Loans Amortized Cost Basis | 2,501 | |
Total loans | 959,626 | |
Commercial Portfolio Segment [Member] | Owner-Occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 263,635 | 122,641 |
2021/2020 | 204,143 | 82,653 |
2020/2019 | 101,707 | 95,591 |
2019/2018 | 104,306 | 75,047 |
2018/2017 | 73,171 | 49,735 |
Prior | 140,320 | 92,615 |
Revolving Loans Amortized Cost Basis | 24,930 | 13,666 |
Revolving Loans Converted to Term | 1,128 | 1,688 |
Total loans | 913,340 | 533,636 |
Commercial Portfolio Segment [Member] | Owner-Occupied [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 263,635 | 122,641 |
2021/2020 | 203,628 | 81,072 |
2020/2019 | 100,522 | 84,359 |
2019/2018 | 92,653 | 71,183 |
2018/2017 | 70,447 | 48,086 |
Prior | 121,448 | 77,100 |
Revolving Loans Amortized Cost Basis | 24,930 | 13,666 |
Revolving Loans Converted to Term | 894 | 1,688 |
Total loans | 878,157 | 499,795 |
Commercial Portfolio Segment [Member] | Owner-Occupied [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 515 | |
2020/2019 | 9,155 | |
2019/2018 | 6,956 | 3,864 |
2018/2017 | 2,616 | 1,429 |
Prior | 17,360 | 13,443 |
Total loans | 27,447 | 27,891 |
Commercial Portfolio Segment [Member] | Owner-Occupied [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 1,192 | |
2020/2019 | 1,185 | 1,527 |
2019/2018 | 4,612 | |
2018/2017 | 220 | |
Prior | 931 | 2,028 |
Revolving Loans Converted to Term | 234 | |
Total loans | 6,962 | 4,967 |
Commercial Portfolio Segment [Member] | Owner-Occupied [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 389 | |
2020/2019 | 550 | |
2019/2018 | 85 | |
2018/2017 | 108 | |
Prior | 581 | 44 |
Total loans | 774 | 983 |
Commercial Portfolio Segment [Member] | Agriculture [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 36,505 | 11,245 |
2021/2020 | 26,044 | 25,276 |
2020/2019 | 30,108 | 8,200 |
2019/2018 | 11,047 | 21,427 |
2018/2017 | 23,175 | 2,702 |
Prior | 31,729 | 24,840 |
Revolving Loans Amortized Cost Basis | 193,535 | 109,875 |
Revolving Loans Converted to Term | 1,836 | 24 |
Total loans | 353,979 | 203,589 |
Commercial Portfolio Segment [Member] | Agriculture [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 36,505 | 11,245 |
2021/2020 | 23,907 | 20,606 |
2020/2019 | 25,285 | 6,966 |
2019/2018 | 11,035 | 21,427 |
2018/2017 | 19,689 | 2,443 |
Prior | 31,210 | 24,047 |
Revolving Loans Amortized Cost Basis | 191,785 | 107,978 |
Revolving Loans Converted to Term | 1,663 | 24 |
Total loans | 341,079 | 194,736 |
Commercial Portfolio Segment [Member] | Agriculture [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 204 | 4,670 |
2020/2019 | 4,573 | 1,234 |
2018/2017 | 3,486 | |
Prior | 195 | 215 |
Revolving Loans Amortized Cost Basis | 1,750 | 1,897 |
Total loans | 10,208 | 8,016 |
Commercial Portfolio Segment [Member] | Agriculture [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 1,747 | |
2019/2018 | 12 | |
2018/2017 | 259 | |
Prior | 324 | 578 |
Revolving Loans Converted to Term | 173 | |
Total loans | 2,256 | 837 |
Commercial Portfolio Segment [Member] | Agriculture [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021/2020 | 186 | |
2020/2019 | 250 | |
Total loans | 436 | |
Commercial Portfolio Segment [Member] | Multifamily [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 234,827 | |
2021/2020 | 93,310 | |
2020/2019 | 69,509 | |
2019/2018 | 81,175 | |
2018/2017 | 147,115 | |
Prior | 302,574 | |
Revolving Loans Amortized Cost Basis | 535 | |
Total loans | 929,045 | |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 499,916 | 103,436 |
2021/2020 | 367,345 | 102,015 |
2020/2019 | 210,421 | 160,645 |
2019/2018 | 198,614 | 42,545 |
2018/2017 | 68,362 | 102,539 |
Prior | 306,215 | 146,215 |
Revolving Loans Amortized Cost Basis | 45,177 | 7,334 |
Total loans | 1,696,050 | 664,729 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 106,197 | 39,584 |
2021/2020 | 139,012 | 10,047 |
2020/2019 | 56,489 | 29,496 |
2019/2018 | 14,387 | |
2018/2017 | 222 | |
Prior | 213 | |
Revolving Loans Amortized Cost Basis | 25,027 | 6,777 |
Total loans | 341,325 | 86,126 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 106,197 | 39,584 |
2021/2020 | 139,012 | 10,047 |
2020/2019 | 56,489 | 29,496 |
2019/2018 | 14,387 | |
2018/2017 | 222 | |
Prior | 213 | |
Revolving Loans Amortized Cost Basis | 25,027 | 6,777 |
Total loans | 341,325 | 86,126 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Acquisition/Development [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 57,773 | 1,691 |
2021/2020 | 33,663 | 385 |
2020/2019 | 7,810 | 766 |
2019/2018 | 1,921 | 1,830 |
2018/2017 | 3,939 | 30 |
Prior | 16,648 | 4,907 |
Revolving Loans Amortized Cost Basis | 7,348 | |
Total loans | 129,102 | 9,609 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Acquisition/Development [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 57,773 | 1,691 |
2021/2020 | 33,663 | 385 |
2020/2019 | 7,810 | 766 |
2019/2018 | 1,921 | 1,830 |
2018/2017 | 3,939 | 30 |
Prior | 16,648 | 4,907 |
Revolving Loans Amortized Cost Basis | 7,348 | |
Total loans | 129,102 | 9,609 |
Commercial Real Estate Portfolio Segment [Member] | Multifamily [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 99,988 | 3,101 |
2021/2020 | 22,022 | 32,619 |
2020/2019 | 17,658 | 2,184 |
2019/2018 | 39,547 | 15,977 |
2018/2017 | 17,358 | 193 |
Prior | 16,009 | 38,100 |
Revolving Loans Amortized Cost Basis | 1,095 | |
Total loans | 213,677 | 92,174 |
Commercial Real Estate Portfolio Segment [Member] | Multifamily [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 99,988 | 3,101 |
2021/2020 | 22,022 | 32,619 |
2020/2019 | 17,658 | 2,184 |
2019/2018 | 39,547 | 15,977 |
2018/2017 | 17,358 | 193 |
Prior | 16,009 | 37,713 |
Revolving Loans Amortized Cost Basis | 1,095 | |
Total loans | 213,677 | 91,787 |
Commercial Real Estate Portfolio Segment [Member] | Multifamily [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Prior | 387 | |
Total loans | 387 | |
Commercial Real Estate Portfolio Segment [Member] | Non Owner-Occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 235,958 | 59,060 |
2021/2020 | 172,648 | 58,964 |
2020/2019 | 128,464 | 128,199 |
2019/2018 | 142,759 | 24,738 |
2018/2017 | 47,065 | 102,094 |
Prior | 273,345 | 103,208 |
Revolving Loans Amortized Cost Basis | 11,707 | 557 |
Total loans | 1,011,946 | 476,820 |
Commercial Real Estate Portfolio Segment [Member] | Non Owner-Occupied [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 235,958 | 59,060 |
2021/2020 | 172,648 | 58,964 |
2020/2019 | 120,871 | 122,452 |
2019/2018 | 138,711 | 18,425 |
2018/2017 | 42,489 | 92,349 |
Prior | 249,461 | 95,265 |
Revolving Loans Amortized Cost Basis | 11,707 | 557 |
Total loans | 971,845 | 447,072 |
Commercial Real Estate Portfolio Segment [Member] | Non Owner-Occupied [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020/2019 | 7,313 | 5,747 |
2019/2018 | 4,048 | 5,584 |
2018/2017 | 3,947 | 9,745 |
Prior | 12,658 | 3,898 |
Total loans | 27,966 | 24,974 |
Commercial Real Estate Portfolio Segment [Member] | Non Owner-Occupied [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019/2018 | 729 | |
2018/2017 | 629 | |
Prior | 7,912 | 4,045 |
Total loans | 8,541 | 4,774 |
Commercial Real Estate Portfolio Segment [Member] | Non Owner-Occupied [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020/2019 | 280 | |
Prior | 3,314 | |
Total loans | 3,594 | |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 368,034 | 224,484 |
2021/2020 | 330,147 | 102,970 |
2020/2019 | 137,414 | 42,111 |
2019/2018 | 52,574 | 23,908 |
2018/2017 | 32,219 | 30,935 |
Prior | 192,495 | 184,187 |
Revolving Loans Amortized Cost Basis | 136,156 | 59,223 |
Revolving Loans Converted to Term | 2,242 | 838 |
Total loans | 1,251,281 | 668,656 |
Residential Portfolio Segment [Member] | Sr lien [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 361,596 | 223,164 |
2021/2020 | 324,170 | 100,801 |
2020/2019 | 134,315 | 39,380 |
2019/2018 | 48,411 | 22,207 |
2018/2017 | 30,439 | 29,853 |
Prior | 188,129 | 180,757 |
Revolving Loans Amortized Cost Basis | 66,792 | 18,278 |
Revolving Loans Converted to Term | 496 | 188 |
Total loans | 1,154,348 | 614,628 |
Residential Portfolio Segment [Member] | Sr lien [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 361,405 | 223,120 |
2021/2020 | 323,984 | 100,476 |
2020/2019 | 133,847 | 38,696 |
2019/2018 | 47,557 | 21,889 |
2018/2017 | 30,283 | 29,554 |
Prior | 184,998 | 177,051 |
Revolving Loans Amortized Cost Basis | 66,792 | 18,278 |
Revolving Loans Converted to Term | 496 | 188 |
Total loans | 1,149,362 | 609,252 |
Residential Portfolio Segment [Member] | Sr lien [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Prior | 362 | 290 |
Total loans | 362 | 290 |
Residential Portfolio Segment [Member] | Sr lien [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 191 | 44 |
2021/2020 | 186 | 325 |
2020/2019 | 468 | 684 |
2019/2018 | 854 | 318 |
2018/2017 | 105 | 299 |
Prior | 2,769 | 3,416 |
Total loans | 4,573 | 5,086 |
Residential Portfolio Segment [Member] | Sr lien [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2018/2017 | 51 | |
Total loans | 51 | |
Residential Portfolio Segment [Member] | Jr Lien 1-4 Family Closed End [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 6,438 | 1,320 |
2021/2020 | 5,977 | 2,169 |
2020/2019 | 3,099 | 2,731 |
2019/2018 | 4,163 | 1,701 |
2018/2017 | 1,780 | 1,082 |
Prior | 4,366 | 3,430 |
Revolving Loans Amortized Cost Basis | 69,364 | 40,945 |
Revolving Loans Converted to Term | 1,746 | 650 |
Total loans | 96,933 | 54,028 |
Residential Portfolio Segment [Member] | Jr Lien 1-4 Family Closed End [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 6,429 | 1,320 |
2021/2020 | 5,977 | 2,150 |
2020/2019 | 3,010 | 2,731 |
2019/2018 | 4,163 | 1,639 |
2018/2017 | 1,726 | 951 |
Prior | 3,773 | 3,209 |
Revolving Loans Amortized Cost Basis | 69,059 | 40,921 |
Revolving Loans Converted to Term | 1,286 | 328 |
Total loans | 95,423 | 53,249 |
Residential Portfolio Segment [Member] | Jr Lien 1-4 Family Closed End [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Prior | 351 | |
Revolving Loans Amortized Cost Basis | 24 | |
Revolving Loans Converted to Term | 322 | |
Total loans | 351 | 346 |
Residential Portfolio Segment [Member] | Jr Lien 1-4 Family Closed End [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 9 | |
2021/2020 | 19 | |
2020/2019 | 89 | |
2019/2018 | 62 | |
2018/2017 | 54 | 131 |
Prior | 242 | 221 |
Revolving Loans Amortized Cost Basis | 305 | |
Revolving Loans Converted to Term | 251 | |
Total loans | 950 | 433 |
Residential Portfolio Segment [Member] | Jr Lien 1-4 Family Closed End [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Revolving Loans Converted to Term | 209 | |
Total loans | 209 | |
Consumer Loan [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 8,579 | 8,815 |
2021/2020 | 4,816 | 3,528 |
2020/2019 | 2,209 | 1,241 |
2019/2018 | 607 | 631 |
2018/2017 | 282 | 131 |
Prior | 536 | 563 |
Revolving Loans Amortized Cost Basis | 4,296 | 2,653 |
Revolving Loans Converted to Term | 33 | 19 |
Total loans | 21,358 | 17,581 |
Consumer Loan [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 8,576 | 8,815 |
2021/2020 | 4,816 | 3,528 |
2020/2019 | 2,209 | 1,241 |
2019/2018 | 607 | 631 |
2018/2017 | 282 | 131 |
Prior | 531 | 557 |
Revolving Loans Amortized Cost Basis | 4,292 | 2,653 |
Revolving Loans Converted to Term | 33 | 19 |
Total loans | 21,346 | 17,575 |
Consumer Loan [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022/2021 | 3 | |
Prior | 5 | 6 |
Revolving Loans Amortized Cost Basis | 4 | |
Total loans | $ 12 | $ 6 |
Loans - Collateral Dependent Lo
Loans - Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost Basis | $ 26,737 | $ 11,010 |
Management evaluated loan with amortized cost basis | 250 | |
Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost Basis | 14,910 | 8,798 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost Basis | 3,660 | 4,531 |
Commercial Portfolio Segment [Member] | Owner-Occupied [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost Basis | 8,057 | 4,267 |
Commercial Portfolio Segment [Member] | Agriculture [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost Basis | 3,193 | |
Commercial Real Estate Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost Basis | 8,561 | |
Commercial Real Estate Portfolio Segment [Member] | Non Owner-Occupied [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost Basis | 8,561 | |
Residential Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost Basis | 3,266 | 2,212 |
Residential Portfolio Segment [Member] | Sr lien [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost Basis | 2,806 | 2,212 |
Residential Portfolio Segment [Member] | Jr Lien 1-4 Family Closed End [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost Basis | 460 | |
Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost Basis | 24,427 | 9,494 |
Real Estate [Member] | Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost Basis | 12,600 | 7,282 |
Real Estate [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost Basis | 2,869 | 3,270 |
Real Estate [Member] | Commercial Portfolio Segment [Member] | Owner-Occupied [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost Basis | 6,711 | 4,012 |
Real Estate [Member] | Commercial Portfolio Segment [Member] | Agriculture [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost Basis | 3,020 | |
Real Estate [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost Basis | 8,561 | |
Real Estate [Member] | Commercial Real Estate Portfolio Segment [Member] | Non Owner-Occupied [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost Basis | 8,561 | |
Real Estate [Member] | Residential Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost Basis | 3,266 | 2,212 |
Real Estate [Member] | Residential Portfolio Segment [Member] | Sr lien [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost Basis | 2,806 | 2,212 |
Real Estate [Member] | Residential Portfolio Segment [Member] | Jr Lien 1-4 Family Closed End [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost Basis | 460 | |
Equipment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost Basis | 2,310 | 1,516 |
Equipment [Member] | Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost Basis | 2,310 | 1,516 |
Equipment [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost Basis | 791 | 1,261 |
Equipment [Member] | Commercial Portfolio Segment [Member] | Owner-Occupied [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost Basis | 1,346 | $ 255 |
Equipment [Member] | Commercial Portfolio Segment [Member] | Agriculture [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized Cost Basis | $ 173 |
Loans - Troubled Debt Restructu
Loans - Troubled Debt Restructuring and Loans Accounted for Under ASC Topic 310-30 Narratives (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | ||
Loans receivable | $ 7,130,916 | $ 4,463,689 |
Non- accrual loans | $ 16,512 | $ 10,832 |
TDR's modified within the past year that defaulted on their restructured terms | loan | 0 | |
Troubled Debt Restructurings [Member] | ||
Debt Instrument [Line Items] | ||
Number of restructured loans | loan | 10 | |
Amortized cost basis of restructured loans | $ 1,100 |
Loans - Additional Information
Loans - Additional Information Related to Accruing TDR's (Details) - Accruing TDR [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Loans [Line Items] | ||
Recorded Investment | $ 4,654 | $ 7,186 |
Average year-to- date recorded investment | 4,949 | 7,707 |
Unpaid principal balance | 4,813 | 8,090 |
Unfunded commitments to fund TDRs | 150 | |
Commercial Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Recorded Investment | 2,160 | 4,066 |
Average year-to- date recorded investment | 2,348 | 4,472 |
Unpaid principal balance | 2,150 | 4,417 |
Unfunded commitments to fund TDRs | 150 | |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Recorded Investment | 685 | 725 |
Average year-to- date recorded investment | 734 | 767 |
Unpaid principal balance | 699 | 892 |
Residential Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Recorded Investment | 1,809 | 2,395 |
Average year-to- date recorded investment | 1,867 | 2,468 |
Unpaid principal balance | $ 1,964 | $ 2,781 |
Loans - Summary of Company's Ca
Loans - Summary of Company's Carrying Value of Non-Accrual TDR's (Details) - Non-Accruing TDR [Member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Loans [Line Items] | ||
Carrying Value of Non - Accruing TDR's | $ 2,478 | $ 2,366 |
Commercial Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Carrying Value of Non - Accruing TDR's | 356 | 644 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Carrying Value of Non - Accruing TDR's | 81 | 117 |
Residential Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Carrying Value of Non - Accruing TDR's | $ 2,041 | $ 1,605 |
Allowance for Credit Losses - S
Allowance for Credit Losses - Summary of Company's Allowance for Loan Losses ("All") and Recorded Investment in Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 49,694 | $ 59,777 |
Day 1 CECL provision expense | 21,228 | |
PCD allowance for credit loss at acquisition | 6,238 | |
Charge-offs | (2,187) | (1,816) |
Recoveries | 385 | 552 |
Provision expense (release) for credit losses | 14,195 | (8,819) |
Ending balance | 89,553 | 49,694 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 31,256 | 30,376 |
Day 1 CECL provision expense | 4,274 | |
PCD allowance for credit loss at acquisition | 2,408 | |
Charge-offs | (1,340) | (1,171) |
Recoveries | 185 | 371 |
Provision expense (release) for credit losses | 825 | 1,680 |
Ending balance | 37,608 | 31,256 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 10,033 | 17,448 |
Day 1 CECL provision expense | 11,792 | |
PCD allowance for credit loss at acquisition | 3,559 | |
Recoveries | 21 | 7 |
Provision expense (release) for credit losses | 6,645 | (7,422) |
Ending balance | 32,050 | 10,033 |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 8,056 | 11,492 |
Day 1 CECL provision expense | 5,034 | |
PCD allowance for credit loss at acquisition | 270 | |
Charge-offs | (2) | (24) |
Recoveries | 54 | 48 |
Provision expense (release) for credit losses | 5,894 | (3,460) |
Ending balance | 19,306 | 8,056 |
Consumer Loan [Member] | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 349 | 461 |
Day 1 CECL provision expense | 128 | |
PCD allowance for credit loss at acquisition | 1 | |
Charge-offs | (845) | (621) |
Recoveries | 125 | 126 |
Provision expense (release) for credit losses | 831 | 383 |
Ending balance | $ 589 | $ 349 |
Allowance for Credit Losses - N
Allowance for Credit Losses - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Oct. 01, 2022 | Sep. 01, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance For Loan And Lease Losses [Line Items] | |||||
Charge-offs, net | $ 1,800 | $ 1,300 | |||
Increase in allowance for credit losses | 39,900 | ||||
Provision (release) expense | 14,195 | (8,819) | |||
Allowance for credit loss expense (release) | 36,729 | (9,293) | $ 17,630 | ||
Accrued interest receivable | 31,800 | 15,700 | |||
Rock Canyon Bank | |||||
Allowance For Loan And Lease Losses [Line Items] | |||||
Previously charged off loans | $ 2,100 | ||||
Bank of Jackson Hole | |||||
Allowance For Loan And Lease Losses [Line Items] | |||||
Previously charged off loans | $ 500 | ||||
Rock Canyon Bank And Bank Of Jackson Hole | |||||
Allowance For Loan And Lease Losses [Line Items] | |||||
Provision (release) expense | 21,200 | ||||
Allowance for credit loss expense (release) | $ 6,200 | ||||
Unfunded loan commitment reserves [Member] | |||||
Allowance For Loan And Lease Losses [Line Items] | |||||
Provision (release) expense | $ 500 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases | ||
Lease right-of-use | $ 33,600 | $ 19,700 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets | Other Assets |
Lease liabilities | $ 36,514 | $ 20,300 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities. | Other Liabilities. |
Weighted-average remaining lease term (in years) | 7 years 8 months 12 days | 4 years 8 months 12 days |
Weighted-average discount rates (in percent) | 2.96% | 3.25% |
Rent expense | $ 5,200 | $ 5,100 |
Remaining undiscounted cash flows | ||
2023 | 6,219 | |
2024 | 6,016 | |
2025 | 4,709 | |
2026 | 3,390 | |
2027 | 3,097 | |
Thereafter | 21,663 | |
Total lease payments | 45,094 | |
Less: Imputed interest | (8,580) | |
Present value of operating lease liabilities | 36,514 | $ 20,300 |
Rock Canyon Bank | ||
Leases | ||
Right-of-use assets through acquisition | 5,100 | |
Lease liabilities through acquisition | 5,100 | |
Bank of Jackson Hole | ||
Leases | ||
Right-of-use assets through acquisition | 4,200 | |
Lease liabilities through acquisition | $ 4,200 | |
Maximum [Member] | ||
Leases | ||
Term of lease (in years) | 19 years | |
Minimum [Member] | ||
Leases | ||
Term of lease (in years) | 1 year |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment, at cost | $ 237,285 | $ 180,310 |
Less: accumulated depreciation and amortization | (101,174) | (83,563) |
Premises and equipment, net | 136,111 | 96,747 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment, at cost | 40,245 | 30,556 |
Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment, at cost | 112,188 | 86,201 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment, at cost | $ 84,852 | $ 63,553 |
Premises and Equipment - Narrat
Premises and Equipment - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) item | |
Premises and Equipment | |||
Depreciation expense | $ 8,400 | $ 7,300 | $ 8,100 |
Disposal of premises and equipment | 7,000 | 13,700 | 3,600 |
Gain on sale of fixed assets | 1,674 | 3,768 | |
Impairment on fixed assets related to banking center consolidations | $ 0 | 1,600 | $ 1,600 |
Number of banking centers classified as held-for-sale | item | 12 | ||
Banking center classified as held-for-sale | $ 6,000 | $ 8,000 |
Other Real Estate Owned - Summa
Other Real Estate Owned - Summary of Activity in OREO Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Real Estate [Roll Forward] | |||
Beginning balance | $ 7,005 | $ 4,730 | |
Transfers from loan portfolio, at fair value | 147 | 4,516 | $ 1,533 |
Impairments | (505) | (799) | |
Sales | (2,916) | (1,442) | |
Ending balance | $ 3,731 | $ 7,005 | $ 4,730 |
Other Real Estate Owned - Narra
Other Real Estate Owned - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
OREO sales | $ 2,916 | $ 1,442 | |
Impairment on other real estate owned, Problem asset workout | 279 | ||
Impairment on other real estate owned | 505 | 799 | $ 470 |
(Loss) gain on OREO sales, net | 648 | $ 475 | $ 38 |
Other liabilities | |||
Impairment on other real estate owned | $ 226 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) $ in Thousands | 12 Months Ended | ||||
Oct. 01, 2022 USD ($) | Sep. 01, 2022 USD ($) | Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Goodwill and Intangible Assets | |||||
Number of acquisitions to date | item | 8 | ||||
Goodwill acquired | $ 279,132 | $ 115,027 | |||
Goodwill Impairment | 0 | 0 | |||
Amortization of acquired identifiable intangibles | 2,338 | 1,183 | $ 1,183 | ||
Mortgage loans serviced | 1,000,000 | 700,000 | |||
Mortgage service fees | 2,800 | 3,500 | |||
Loans receivable | 7,130,916 | 4,463,689 | |||
Rock Canyon Bank | |||||
Goodwill and Intangible Assets | |||||
Goodwill acquired | $ 52,855 | ||||
Acquired through acquisition | 52,900 | ||||
Bank of Jackson Hole | |||||
Goodwill and Intangible Assets | |||||
Goodwill acquired | $ 111,250 | ||||
Acquired through acquisition | $ 111,300 | 111,300 | |||
Amortization period | 10 years | ||||
Core Deposits | |||||
Goodwill and Intangible Assets | |||||
Amortization of acquired identifiable intangibles | $ 2,300 | 1,200 | $ 1,200 | ||
Core Deposits | Maximum | |||||
Goodwill and Intangible Assets | |||||
Amortization period | 10 years | ||||
Core Deposits | Rock Canyon Bank | |||||
Goodwill and Intangible Assets | |||||
Acquired through acquisition | $ 13,300 | ||||
Amortization period | 10 years | ||||
Core Deposits | Bank of Jackson Hole | |||||
Goodwill and Intangible Assets | |||||
Acquired through acquisition | $ 29,400 | $ 29,400 | |||
MSRs | |||||
Goodwill and Intangible Assets | |||||
Amortization of acquired identifiable intangibles | $ 922 | $ 2,545 | |||
MSRs | Discount Rate | Minimum | |||||
Goodwill and Intangible Assets | |||||
Servicing assets measurement input (as a percent) | 0.095 | ||||
MSRs | Discount Rate | Maximum | |||||
Goodwill and Intangible Assets | |||||
Servicing assets measurement input (as a percent) | 0.100 | 0.100 | |||
MSRs | Constant Prepayment Speed | Minimum | |||||
Goodwill and Intangible Assets | |||||
Servicing assets measurement input (as a percent) | 0.076 | 0.093 | |||
MSRs | Constant Prepayment Speed | Maximum | |||||
Goodwill and Intangible Assets | |||||
Servicing assets measurement input (as a percent) | 0.082 | 0.145 | |||
Small Business Administration ("SBA") servicing rights | |||||
Goodwill and Intangible Assets | |||||
Acquired through acquisition | $ 3,126 | ||||
Amortization of acquired identifiable intangibles | 99 | ||||
Loans serviced | $ 125,700 | ||||
Small Business Administration ("SBA") servicing rights | Discount Rate | |||||
Goodwill and Intangible Assets | |||||
Servicing assets measurement input (as a percent) | 0.1524 | ||||
Small Business Administration ("SBA") servicing rights | Constant Prepayment Speed | |||||
Goodwill and Intangible Assets | |||||
Servicing assets measurement input (as a percent) | 0.1236 | ||||
Small Business Administration ("SBA") servicing rights | Rock Canyon Bank | |||||
Goodwill and Intangible Assets | |||||
Acquired through acquisition | $ 3,100 | $ 3,100 | |||
Amortization of acquired identifiable intangibles | 200 | ||||
Wealth Management Intangibles | Bank of Jackson Hole | |||||
Goodwill and Intangible Assets | |||||
Acquired through acquisition | $ 1,300 | $ 1,300 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Carrying Amounts (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Carrying amount of intangible assets | ||
Gross carrying amount | $ 92,866 | $ 48,834 |
Accumulated amortization | (44,807) | (42,469) |
Net carrying amount | 48,059 | 6,365 |
Core Deposits | ||
Carrying amount of intangible assets | ||
Gross carrying amount | 91,566 | 48,834 |
Accumulated amortization | (44,775) | (42,469) |
Net carrying amount | 46,791 | $ 6,365 |
Wealth Management Intangibles | ||
Carrying amount of intangible assets | ||
Gross carrying amount | 1,300 | |
Accumulated amortization | (32) | |
Net carrying amount | $ 1,268 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Estimated Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Core Deposits | |
Estimated future amortization expense | |
2023 | $ 5,321 |
2024 | 5,321 |
2025 | 5,321 |
2026 | 5,321 |
2027 | 5,321 |
MSRs | |
Estimated future amortization expense | |
2023 | 1,097 |
2024 | 967 |
2025 | 852 |
2026 | 750 |
2027 | 661 |
Wealth Management Intangibles | |
Estimated future amortization expense | |
2023 | 130 |
2024 | 130 |
2025 | 130 |
2026 | 130 |
2027 | $ 130 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Changes in Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in the mortgage servicing rights | |||
Beginning balance | $ 6,365 | ||
Amortization | (2,338) | $ (1,183) | $ (1,183) |
Ending balance | 48,059 | 6,365 | |
Sale of Mortgage Servicing Rights | |||
Gain on sale of mortgage servicing rights | 1,290 | ||
MSRs | |||
Changes in the mortgage servicing rights | |||
Beginning balance | 5,957 | 10,380 | |
Originations | 4,187 | 7,881 | |
Sales | (10,499) | ||
(Impairment) recovery | $ (60) | $ 740 | |
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain (Loss) on Sale of Mortgage Loans | Gain (Loss) on Sale of Mortgage Loans | |
Amortization | $ (922) | $ (2,545) | |
Ending balance | 9,162 | 5,957 | $ 10,380 |
Fair value | 13,622 | 7,729 | |
Sale of Mortgage Servicing Rights | |||
Unpaid principal balances from mortgage servicing rights portfolio | 1,300,000 | ||
Decrease in mortgage servicing right intangible | 10,500 | ||
Gain on sale of mortgage servicing rights | $ 1,300 | ||
SBA Servicing Rights | |||
Changes in the mortgage servicing rights | |||
Acquired through acquisition | 3,126 | ||
Originations | 9 | ||
Disposals | (139) | ||
Amortization | (99) | ||
Fair market value adjustment | (231) | ||
Ending balance | 2,666 | ||
Fair value | $ 2,666 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deposits | ||
Total Deposits | $ 7,872,626 | $ 6,228,173 |
Time deposits | 873,400 | $ 833,916 |
Minimum reserve required | $ 0 |
Deposits - Summary of Time Depo
Deposits - Summary of Time Deposits Based Upon Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deposits | ||
2023 | $ 469,817 | |
2024 | 273,278 | |
2025 | 101,593 | |
2026 | 23,059 | |
2027 | 4,764 | |
Thereafter | 889 | |
Time Deposits, Total | $ 873,400 | $ 833,916 |
Deposits - Schedule of Interest
Deposits - Schedule of Interest Expense on Deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deposits | |||
Interest bearing demand deposits | $ 2,163 | $ 1,088 | $ 1,921 |
Money market accounts | 5,808 | 3,995 | 5,342 |
Savings accounts | 1,376 | 1,157 | 1,342 |
Time deposits | 5,249 | 7,362 | 15,024 |
Interest expense | $ 14,596 | $ 13,602 | $ 23,629 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) | Oct. 01, 2022 USD ($) item | Dec. 31, 2021 USD ($) | Nov. 05, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Amount of repurchase agreements | $ 20,200 | $ 22,800 | $ 22,900 | ||
Fair Value | 706,289 | 691,847 | |||
Remaining balance on the note | 53,890 | 39,478 | |||
Federal home loan bank, advances, general debt obligations, maximum amount available | 1,100,000 | ||||
Loans receivable | 7,130,916 | 4,463,689 | |||
Interest expense related to FHLB advances | 1,700 | ||||
Bank of Jackson Hole | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Number of subordinated note purchase agreements assumed | item | 3 | ||||
Asset Pledged as Collateral | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Excess collateral pledged | 11,800 | 6,100 | 2,100 | ||
Asset Pledged as Collateral | Securities Sold under Agreements to Repurchase [Member] | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Fair Value | 32,000 | 28,800 | 27,700 | ||
Asset Pledged as Collateral | Federal Home Loan Bank Advances [Member] | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Fair Value | 0 | 0 | |||
Fair value of available-for-sale investment securities pledged as collateral | 0 | 0 | 0 | ||
Loans receivable | 2,000,000 | 1,300,000 | 1,200,000 | ||
Fixed-To-Floating Rate Note, Maturing June 2031 | Bank of Jackson Hole | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Subordinated note | $ 15,000 | ||||
Fair value adjustment from the acquisition | 600 | ||||
Remaining balance on the note | 14,400 | ||||
Fixed-To-Floating Rate Note, Maturing June 2031 | Other liabilities | Bank of Jackson Hole | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Interest expense | 200 | ||||
Line of credit [Member] | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
FHLB advances | 385,000 | 0 | 0 | ||
Subordinated Debt [Member] | Fixed-To-Floating Rate Note, Maturing November 2031 | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Subordinated note | $ 40,000 | ||||
Remaining balance on the note | 39,500 | ||||
Debt issuance costs | $ 500 | ||||
Interest rate (as a percent) | 3% | ||||
Variable rate basis (as a percent) | 2.03% | ||||
Redemption price as a percent of principal | 100% | ||||
Subordinated Debt [Member] | Fixed-To-Floating Rate Note, Maturing November 2031 | Other liabilities | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Interest expense | $ 1,300 | ||||
Subordinated Debt [Member] | Fixed-To-Floating Rate Note, Maturing June 2031 | Bank of Jackson Hole | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Interest rate (as a percent) | 3.75% | ||||
Variable rate basis (as a percent) | 306% | ||||
Redemption price as a percent of principal | 100% | ||||
Maturity on Demand [Member] | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Amount of repurchase agreements | $ 0 | $ 0 | $ 0 |
Borrowings - Schedule of Select
Borrowings - Schedule of Selected Information Regarding Repurchase Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deposits | |||
Maximum amount of outstanding agreements at any month end during the period | $ 25,342 | $ 23,574 | $ 54,489 |
Average amount outstanding during the period | $ 21,298 | $ 20,338 | $ 30,355 |
Weighted average interest rate for the period | 0.20% | 0.11% | 0.45% |
Regulatory Capital - Capital Ra
Regulatory Capital - Capital Ratio Requirements under Prompt Corrective Action or Other Regulatory Requirements (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital conservation buffer | 2.50% | 2.50% |
Consolidated | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Leverage Ratio | 0.093 | 0.104 |
Common equity risk-based ratio | 0.105 | 0.143 |
Risk-based capital Ratio | 0.105 | 0.143 |
Total risk-based capital Ratio | 0.122 | 0.159 |
Leverage Amount | $ 857,403 | $ 731,087 |
Common equity risk-based amount | 857,403 | 731,087 |
Risk-based capital amount | 857,403 | 731,087 |
Total risk-based capital Amount | $ 1,000,398 | $ 816,117 |
Required to be considered adequately capitalized Ratio, leverage ratio | 0.040 | 0.040 |
Required to be considered well capitalized Ratio, risk-based capital ratio | 7% | 7% |
Required to be considered adequately capitalized Ratio, risk-based capital ratio | 0.085 | 0.085 |
Required to be considered adequately capitalized Ratio, Total risk-based capital ratio | 0.105 | 0.105 |
Required to be considered adequately capitalized leverage Amount | $ 369,335 | $ 281,463 |
Required to be considered adequately capitalized common equity capital amount | 574,339 | 358,813 |
Required to be considered adequately capitalized risk-based capital Amount | 697,412 | 435,701 |
Required to be considered adequately capitalized Total risk-based capital Amount | $ 861,509 | $ 538,219 |
NBH Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Leverage Ratio | 0.086 | 0.091 |
Common equity risk-based ratio | 0.097 | 0.125 |
Risk-based capital Ratio | 0.097 | 0.125 |
Total risk-based capital Ratio | 0.108 | 0.134 |
Leverage Amount | $ 788,462 | $ 637,115 |
Common equity risk-based amount | 788,462 | 637,115 |
Risk-based capital amount | 788,462 | 637,115 |
Total risk-based capital Amount | $ 876,458 | $ 682,145 |
Required to be considered well capitalized Ratio, leverage ratio | 0.050 | 0.050 |
Required to be considered adequately capitalized Ratio, risk-based common equity capital ratio | 6.50% | 6.50% |
Required to be considered well capitalized Ratio, risk-based capital ratio | 0.080 | 0.080 |
Required to be considered well capitalized Ratio, Total risk-based capital ratio | 0.100 | 0.100 |
Required to be considered well capitalized leverage Amount | $ 458,593 | $ 350,584 |
Required to be considered well capitalized common equity capital amount | 528,334 | 331,427 |
Required to be considered well capitalized risk-based capital Amount | 650,257 | 407,910 |
Required to be considered well capitalized Total risk-based capital Amount | $ 812,821 | $ 509,888 |
Required to be considered adequately capitalized Ratio, leverage ratio | 0.040 | 0.040 |
Required to be considered well capitalized Ratio, risk-based capital ratio | 7% | 7% |
Required to be considered adequately capitalized Ratio, risk-based capital ratio | 0.085 | 0.085 |
Required to be considered adequately capitalized Ratio, Total risk-based capital ratio | 0.105 | 0.105 |
Required to be considered adequately capitalized leverage Amount | $ 366,874 | $ 280,467 |
Required to be considered adequately capitalized common equity capital amount | 568,975 | 356,921 |
Required to be considered adequately capitalized risk-based capital Amount | 690,898 | 433,404 |
Required to be considered adequately capitalized Total risk-based capital Amount | $ 853,462 | $ 535,382 |
Bank of Jackson Hole | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Leverage Ratio | 0.310 | |
Common equity risk-based ratio | 0.716 | |
Risk-based capital Ratio | 0.716 | |
Total risk-based capital Ratio | 0.716 | |
Leverage Amount | $ 11,238 | |
Common equity risk-based amount | 11,238 | |
Risk-based capital amount | 11,238 | |
Total risk-based capital Amount | $ 11,238 | |
Required to be considered well capitalized Ratio, leverage ratio | 0.050 | |
Required to be considered adequately capitalized Ratio, risk-based common equity capital ratio | 6.50% | |
Required to be considered well capitalized Ratio, risk-based capital ratio | 0.080 | |
Required to be considered well capitalized Ratio, Total risk-based capital ratio | 0.100 | |
Required to be considered well capitalized leverage Amount | $ 1,373 | |
Required to be considered well capitalized common equity capital amount | 1,020 | |
Required to be considered well capitalized risk-based capital Amount | 1,255 | |
Required to be considered well capitalized Total risk-based capital Amount | $ 1,569 | |
Required to be considered adequately capitalized Ratio, leverage ratio | 0.040 | |
Required to be considered well capitalized Ratio, risk-based capital ratio | 7% | |
Required to be considered adequately capitalized Ratio, risk-based capital ratio | 0.085 | |
Required to be considered adequately capitalized Ratio, Total risk-based capital ratio | 0.105 | |
Required to be considered adequately capitalized leverage Amount | $ 1,099 | |
Required to be considered adequately capitalized common equity capital amount | 1,098 | |
Required to be considered adequately capitalized risk-based capital Amount | 1,333 | |
Required to be considered adequately capitalized Total risk-based capital Amount | $ 1,647 |
Revenue from Contracts with C_3
Revenue from Contracts with Clients - Non-interest income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contracts with Clients | |||
Non-interest income (in-scope of Topic 606) | $ 37,654 | $ 35,759 | $ 32,359 |
Non-interest income (out-of-scope of Topic 606) | 29,658 | 74,605 | 107,899 |
Total non-interest income | 67,312 | 110,364 | 140,258 |
(Loss) gain on OREO sales, net | 648 | 475 | 38 |
Total Revenue | 38,302 | 36,234 | 32,397 |
Service charges and other fees | |||
Revenue from Contracts with Clients | |||
Non-interest income (in-scope of Topic 606) | 18,772 | 18,066 | 16,913 |
Bank card fees | |||
Revenue from Contracts with Clients | |||
Non-interest income (in-scope of Topic 606) | 18,299 | $ 17,693 | $ 15,446 |
Trust and wealth management services | |||
Revenue from Contracts with Clients | |||
Non-interest income (in-scope of Topic 606) | $ 583 |
Stock-based Compensation and _3
Stock-based Compensation and Benefits - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
NBH Holdings Corp. 2014 Omnibus Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 3,608,461 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Reduction in Number of Shares for Every One Option or Stock Appreciation Right Granted | 1 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Reduction in Number of Shares for Every One Award Other Than An Option or Stock Appreciation Right Granted | 3.25 | ||
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 700,000 | $ 900,000 | $ 1,000,000 |
Unrecognized compensation expense | $ 500,000 | ||
Unrecognized compensation cost, weighted-average period, years | 2 years 1 month 6 days | ||
Stock options [Member] | NBH Holdings Corp. 2014 Omnibus Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award Vesting Rights, Percentage | 33.33% | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 3,400,000 | $ 2,700,000 | 2,500,000 |
Awards granted (in shares) | 118,190 | 89,351 | |
Restricted Stock [Member] | NBH Holdings Corp. 2014 Omnibus Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 3,300,000 | ||
Unrecognized compensation cost, weighted-average period, years | 2 years 1 month 6 days | ||
Performance stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 1,900,000 | $ 2,000,000 | $ 1,800,000 |
Awards granted (in shares) | 51,931 | 52,526 | |
Performance stock units | NBH Holdings Corp. 2014 Omnibus Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 2,600,000 | ||
Unrecognized compensation cost, weighted-average period, years | 1 year 8 months 12 days | ||
Performance period | 3 years | ||
Awards granted (in shares) | 51,931 | 52,526 | 68,498 |
Performance stock units | NBH Holdings Corp. 2014 Omnibus Incentive Plan [Member] | EPS target | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of awards based on performance type | 60% | ||
Performance stock units | NBH Holdings Corp. 2014 Omnibus Incentive Plan [Member] | TSR target | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of awards based on performance type | 40% | ||
Employee Stock [Member] | Employee Stock Purchase Plan 2014 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum stock purchases by employees, value | $ 25,000 | ||
Maximum stock purchases by employees (in shares) | 2,000 | ||
Discount on purchase of common stock (as a percent) | 90% | ||
Offering period for employee stock purchases | 6 months | ||
Number of shares authorized | 400,000 | ||
Shares available for issuance | 262,482 | ||
Employees purchased shares (in shares) | 19,414 | 20,980 | |
Minimum [Member] | Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Minimum [Member] | Restricted Stock [Member] | NBH Holdings Corp. 2014 Omnibus Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Minimum [Member] | Performance stock units | NBH Holdings Corp. 2014 Omnibus Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of initial target awards | 0% | ||
Maximum [Member] | Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Contractual term (in years) | 10 years | ||
Maximum [Member] | Restricted Stock [Member] | NBH Holdings Corp. 2014 Omnibus Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Maximum [Member] | Performance stock units | NBH Holdings Corp. 2014 Omnibus Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of initial target awards | 150% |
Stock-based Compensation and _4
Stock-based Compensation and Benefits - Schedule Of Weighted Average Assumptions Using Black-Scholes option-Pricing Model (Details) - Stock options [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation [Line Items] | |||
Weighted average fair value | $ 11.14 | $ 9.65 | $ 3.37 |
Risk-free interest rate | 2.69% | 1.14% | 0.44% |
Expected volatility | 31.16% | 30.54% | 25.08% |
Expected term (years) | 6 years 14 days | 6 years 14 days | 6 years 14 days |
Dividend yield | 2.24% | 2.09% | 3.44% |
Stock-based Compensation and _5
Stock-based Compensation and Benefits - Summary of Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding Options, beginning | 695,960 | 768,129 |
Granted, Options | 82,226 | |
Exercised, Options | (48,666) | |
Forfeited, Options | (12,432) | |
Outstanding Options, ending | 717,088 | 695,960 |
Options exercisable at end of period, Options | 520,217 | |
Options vested and expected to vest, Options | 702,485 | |
Outstanding, Weighted average exercise price, beginning | $ 28.19 | $ 26.35 |
Granted, Weighted average exercise price | 41.37 | |
Exercised, Weighted average exercise price | 26.09 | |
Forfeited, Weighted average exercise price | 31.38 | |
Outstanding, Weighted average exercised price, ending | 29.79 | $ 28.19 |
Options exercisable at end of period, Weighted average exercise price | 27.76 | |
Options vested and expected to vest, Weighted average exercise price | $ 29.58 | |
Outstanding, Weighted average remaining contractual term in years | 5 years 11 months 23 days | 6 years 6 months 25 days |
Options exercisable at end of period, weighted average remaining contractual term in years | 5 years 29 days | |
Options vested and expected to vest, Weighted average remaining contractual term in years | 5 years 11 months 1 day | |
Outstanding, Aggregate intrinsic value, beginning | $ 10,964 | |
Outstanding, Aggregate intrinsic value, ending | 8,850 | $ 10,964 |
Aggregate intrinsic Value of Options exercisable at end of period | 7,447 | |
Options vested and expected to vest, Aggregate Intrinsic Value | $ 8,805 |
Stock-based Compensation and _6
Stock-based Compensation and Benefits - Summary of Restricted Stock Activity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Weighted average beginning measurement period price | $ 43.51 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Unvested Restricted shares, Beginning (in shares) | 144,467 | 166,630 |
Unvested Restricted shares, Granted (in shares) | 118,190 | 89,351 |
Unvested Restricted shares, Vested (in shares) | (84,898) | (90,645) |
Unvested Restricted shares, Forfeited (in shares) | (12,622) | (20,869) |
Unvested Restricted shares, Ending (in shares) | 165,137 | 144,467 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Weighted average grant-date fair value, Beginning (in dollars per share) | $ 33.40 | $ 27.42 |
Weighted average grant-date fair value, Granted (in dollars per share) | 40.76 | 39.99 |
Weighted average grant-date fair value, Vested (in dollars per share) | 33.62 | 29.78 |
Weighted average grant-date fair value, Forfeited (in dollars per share) | 37 | 29.54 |
Weighted average grant-date fair value, Ending (in dollars per share) | $ 38.28 | $ 33.40 |
Performance stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Unvested Restricted shares, Beginning (in shares) | 160,394 | 184,837 |
Unvested Restricted shares, Granted (in shares) | 51,931 | 52,526 |
Unvested Restricted shares, Net adjustment due to performance (in shares) | 17,741 | 30,024 |
Unvested Restricted shares, Vested (in shares) | (67,875) | (90,016) |
Unvested Restricted shares, Forfeited (in shares) | (6,334) | (16,977) |
Unvested Restricted shares, Ending (in shares) | 155,857 | 160,394 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Weighted average grant-date fair value, Beginning (in dollars per share) | $ 31.36 | $ 29.21 |
Weighted average grant-date fair value, Granted (in dollars per share) | 38.40 | 37.01 |
Weighted average grant-date fair value, Net adjustment due to performance (in dollars per share) | 32.44 | 30.38 |
Weighted average grant-date fair value, Vested (in dollars per share) | 31.27 | 30.38 |
Weighted average grant-date fair value, Forfeited (in dollars per share) | 32.70 | 28.96 |
Weighted average grant-date fair value, Ending (in dollars per share) | 33.81 | $ 31.36 |
ROTA | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Weighted average grant-date fair value, Granted (in dollars per share) | 40.83 | |
TSR | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Weighted average grant-date fair value, Granted (in dollars per share) | $ 35.25 |
Stock-based Compensation and _7
Stock-based Compensation and Benefits - Summarizes Information about Outstanding Stock Options (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Number | 717,088 | 695,960 | 768,129 |
Options Outstanding, Weighted Average Remaining Contractual Life in years | 5 years 11 months 23 days | 6 years 6 months 25 days | |
Options Outstanding, Weighted Average Exercise Price | $ 29.79 | $ 28.19 | $ 26.35 |
Options Vested, Number | 702,485 | ||
Options Vested, Weighted Average Exercise Price | $ 29.58 | ||
18.00 - 22.99 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Low Range of Exercise Price | 18 | ||
Options Outstanding, High Range of Exercise Price | $ 22.99 | ||
Options Outstanding, Number | 144,571 | ||
Options Outstanding, Weighted Average Remaining Contractual Life in years | 2 years 4 months 20 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 19.23 | ||
Options Vested, Number | 144,571 | ||
Options Vested, Weighted Average Exercise Price | $ 19.23 | ||
23.00 - 27.99 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Low Range of Exercise Price | 23 | ||
Options Outstanding, High Range of Exercise Price | $ 27.99 | ||
Options Outstanding, Number | 170,521 | ||
Options Outstanding, Weighted Average Remaining Contractual Life in years | 7 years 2 months 26 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 23.13 | ||
Options Vested, Number | 107,363 | ||
Options Vested, Weighted Average Exercise Price | $ 23.14 | ||
28.00 - 32.99 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Low Range of Exercise Price | 28 | ||
Options Outstanding, High Range of Exercise Price | $ 32.99 | ||
Options Outstanding, Number | 85,776 | ||
Options Outstanding, Weighted Average Remaining Contractual Life in years | 5 years 2 months 15 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 32.60 | ||
Options Vested, Number | 84,798 | ||
Options Vested, Weighted Average Exercise Price | $ 32.64 | ||
33.00 and 37.99 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Low Range of Exercise Price | 33 | ||
Options Outstanding, High Range of Exercise Price | $ 37.99 | ||
Options Outstanding, Number | 160,537 | ||
Options Outstanding, Weighted Average Remaining Contractual Life in years | 5 years 6 months 21 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 34.13 | ||
Options Vested, Number | 159,040 | ||
Options Vested, Weighted Average Exercise Price | $ 34.11 | ||
38.00 and above | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Low Range of Exercise Price | 38 | ||
Options Outstanding, Exercise Price | $ 38 | ||
Options Outstanding, Number | 155,683 | ||
Options Outstanding, Weighted Average Remaining Contractual Life in years | 8 years 9 months 18 days | ||
Options Outstanding, Weighted Average Exercise Price | $ 40.85 | ||
Options Vested, Number | 24,445 | ||
Options Vested, Weighted Average Exercise Price | $ 40.24 |
Common Stock - Narrative (Detai
Common Stock - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Feb. 24, 2021 | |
Schedule Of Common Stock [Line Items] | |||
Shares outstanding | 37,608,519 | 29,958,764 | |
Common Class A [Member] | |||
Schedule Of Common Stock [Line Items] | |||
Shares outstanding | 37,608,519 | 29,958,764 | |
Restricted issued but not yet vested, shares | 165,137 | 144,467 | |
February 2021 Board Authorized Share Purchase Program | |||
Schedule Of Common Stock [Line Items] | |||
Stock repurchase program, authorized amount | $ 75 | ||
Remaining authorized amount | $ 38.6 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share | |||
Shares outstanding | 37,608,519 | 29,958,764 | |
Outstanding stock options to purchase common stock | 717,088 | 695,960 | 768,129 |
Outstanding stock options to purchase common stock, per share | $ 29.79 | $ 28.19 | $ 26.35 |
Restricted shares outstanding | 320,994 | 304,861 | 351,467 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Net income | $ 71,274 | $ 93,606 | $ 88,591 |
Less: income allocated to participating securities | (152) | (133) | (130) |
Income allocated to common shareholders | $ 71,122 | $ 93,473 | $ 88,461 |
Weighted average shares outstanding for basic earnings per common share | 32,360,005 | 30,727,566 | 30,857,086 |
Weighted average shares outstanding for diluted earnings per common share | 32,680,932 | 31,068,159 | 31,075,857 |
Basic earnings per share (in dollars per share) | $ 2.20 | $ 3.04 | $ 2.87 |
Diluted earnings per share (in dollars per share) | $ 2.18 | $ 3.01 | $ 2.85 |
Equity Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Dilutive effect of equity awards | 320,927 | 340,593 | 218,771 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current expense: | |||
U.S. federal | $ 7,193 | $ 13,746 | $ 16,460 |
State and local | 1,831 | 2,643 | 3,255 |
Total current income tax expense | 9,024 | 16,389 | 19,715 |
Deferred expense: | |||
U.S. federal | 5,100 | 4,327 | 560 |
State and local | 786 | 649 | 531 |
Total deferred income tax expense | 5,886 | 4,976 | 1,091 |
Income tax expense | $ 14,910 | $ 21,365 | $ 20,806 |
Income Taxes - Components of Ta
Income Taxes - Components of Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | |||
Income tax at federal statutory rates (21%) | $ 18,098 | $ 24,144 | $ 22,974 |
State income taxes, net of federal benefits | 2,067 | 2,601 | 2,991 |
Tax-exempt loan interest income | (5,208) | (4,862) | (4,628) |
Bank-owned life insurance income | (374) | (603) | (575) |
Stock-based compensation | (402) | (733) | 43 |
Non-deductible compensation | 514 | 852 | 388 |
Non-deductible acquisition costs | 427 | ||
Other | (212) | (34) | (387) |
Income tax expense | $ 14,910 | $ 21,365 | $ 20,806 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Net unrealized losses on investment securities | $ 26,938 | $ 2,169 |
Allowance for credit losses | 20,967 | 11,806 |
Lease liability | 8,549 | 4,811 |
Accrued compensation | 4,535 | 4,355 |
Accrued stock-based compensation | 1,742 | 1,384 |
Accrued expenses | 942 | 316 |
Capitalized start-up costs | 891 | 1,223 |
Other reserves | 814 | 600 |
Nonaccrual interest income | 812 | 556 |
Capitalized research and development costs | 783 | |
Excess tax basis of acquired loans over carrying value | 625 | 679 |
Net operating loss | 507 | 573 |
Other real estate owned | 369 | 645 |
Net deferred loan fees | 1,021 | |
Other | 1,087 | 635 |
Total deferred tax assets | 69,561 | 30,773 |
Deferred tax liabilities: | ||
Intangible assets | (9,943) | (4,822) |
Right of use assets | (8,300) | (4,674) |
Premises and equipment | (4,722) | (1,858) |
Mortgage servicing rights | (2,769) | (1,415) |
Excess book basis in partnerships | (989) | (47) |
Net deferred loan costs | (383) | |
Other | (738) | (267) |
Total deferred tax liabilities | (27,844) | (13,083) |
Net deferred tax asset | $ 41,717 | $ 17,690 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | |||
Income tax expense | $ 14,910 | $ 21,365 | $ 20,806 |
Excess tax benefit from stock-based compensation | 300 | $ 600 | $ (51) |
Domestic Country [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryovers (NOLs) | 1,900 | ||
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryovers (NOLs) | $ 2,900 |
Derivatives - FV of Derivatives
Derivatives - FV of Derivatives on the Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Asset derivatives fair value | $ 34,164 | $ 477 |
Liability derivatives fair value | 1,929 | 12,221 |
Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Asset derivatives fair value | 11,064 | 10,204 |
Liability derivatives fair value | 10,938 | 8,792 |
Other assets [Member] | Interest rate products [Member] | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Asset derivatives fair value | 34,164 | 477 |
Other assets [Member] | Interest rate products [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Asset derivatives fair value | 10,657 | 8,321 |
Other assets [Member] | Interest Rate Lock Commitments [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Asset derivatives fair value | 197 | 1,792 |
Other assets [Member] | Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Asset derivatives fair value | 210 | 91 |
Other liabilities | Interest rate products [Member] | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Liability derivatives fair value | 1,929 | 12,221 |
Other liabilities | Interest rate products [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Liability derivatives fair value | 10,660 | 8,329 |
Other liabilities | Interest Rate Lock Commitments [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Liability derivatives fair value | 174 | 197 |
Other liabilities | Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Liability derivatives fair value | $ 104 | $ 266 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||
Termination value of derivatives in net liability position | $ 42.9 | |
Interest Rate Lock Commitments Notional Amount Member | ||
Derivative [Line Items] | ||
Notional amount | 35.5 | $ 110 |
Forward Contract Notional Member | ||
Derivative [Line Items] | ||
Notional amount | 45 | 198.3 |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Notional amount | 383 | 394.4 |
Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Hedged Loans | 482.7 | 345.2 |
Cumulative fair value hedge adjustment | 29.7 | 16.1 |
Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Notional amount | 340.1 | $ 343.1 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional amount | 150 | |
Reclassification of accumulated other comprehensive income during the next 12 months | $ 1.3 |
Derivatives - Derivatives on th
Derivatives - Derivatives on the Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Amount of (loss) gain recognized in income on derivatives | $ (2,118) | $ (4,382) |
Interest rate products [Member] | Not Designated as Hedging Instrument [Member] | Other Non-Interest expense [Member] | ||
Derivative [Line Items] | ||
Amount of (loss) gain recognized in income on derivatives | 6 | 23 |
Interest rate products [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | Interest income [Member] | ||
Derivative [Line Items] | ||
Amount of (loss) gain recognized in income on derivatives | 44,266 | 20,040 |
Amount of gain (loss) recognized in income on hedged items | (46,708) | (19,602) |
Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | Mortgage banking income [Member] | ||
Derivative [Line Items] | ||
Amount of (loss) gain recognized in income on derivatives | 281 | 2,447 |
Interest Rate Lock Commitments [Member] | Not Designated as Hedging Instrument [Member] | Mortgage banking income [Member] | ||
Derivative [Line Items] | ||
Amount of (loss) gain recognized in income on derivatives | $ (2,405) | $ (6,852) |
Derivatives - Effect of fair va
Derivatives - Effect of fair value cash flow hedge accounting on AOCI (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Loss recognized in OCI on derivative | $ (1,721) |
Loss reclassified from AOCI into income | (95) |
Interest rate products [Member] | Cash Flow Hedging [Member] | Interest income [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Loss recognized in OCI on derivative | (2,245) |
Loss recognized in OCI included component | (2,192) |
Loss recognized in OCI excluded component | (53) |
Loss reclassified from AOCI into income | (124) |
Loss reclassified from AOCI into income included component | (32) |
Loss reclassified from AOCI into income excluded component | $ (92) |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Total Unfunded Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Commitment And Contingencies [Line Items] | ||
Total unfunded commitments | $ 2,008,337 | $ 999,869 |
Unfunded loan commitment reserves [Member] | ||
Commitment And Contingencies [Line Items] | ||
Total unfunded commitments | 1,124,942 | 462,151 |
Credit Card Lines of Credit [Member] | ||
Commitment And Contingencies [Line Items] | ||
Total unfunded commitments | 7,167 | |
Unfunded Commitment Line Of Credit [Member] | ||
Commitment And Contingencies [Line Items] | ||
Total unfunded commitments | 862,369 | 530,397 |
Commercial And Standby Letters Of Credit [Member] | ||
Commitment And Contingencies [Line Items] | ||
Total unfunded commitments | $ 13,859 | $ 7,321 |
Commitments and Contingencies_2
Commitments and Contingencies - Repurchase Reserve Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Commitment And Contingencies [Line Items] | |||
Beginning balance | $ 49,694 | $ 59,777 | |
Provision released from operating expense, net | 36,729 | (9,293) | $ 17,630 |
Charge-offs | (2,187) | (1,816) | |
Ending balance | 89,553 | 49,694 | 59,777 |
Mortgage Loans [Member] | |||
Commitment And Contingencies [Line Items] | |||
Beginning balance | 2,102 | 2,741 | |
Reserve related to acquisitions | 181 | ||
Provision released from operating expense, net | (331) | (108) | |
Charge-offs | (227) | (531) | |
Ending balance | $ 1,725 | $ 2,102 | $ 2,741 |
Fair Value Measurements - Trans
Fair Value Measurements - Transfer Between Hierarchy Levels (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Measurements | ||
Level 1 to Level 2 Transfer, Asset | $ 0 | $ 0 |
Level 2 to Level 1 Transfer, Asset | 0 | 0 |
Level 1 to Level 2 Transfer, Liability | 0 | 0 |
Level 2 to Level 1 Transfer, Liability | 0 | 0 |
Level 3 Transfer, Asset | 0 | 0 |
Level 3 Transfer, Liability | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | Dec. 31, 2020 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Residential mortgage loans held for sale period | 45 days | ||
Interest Rate Lock Commitments, Average Percentage Of Estimated Pull Through Rate To Calculate Fair Value | 80.3 | ||
Loans | $ 7,220,469,000 | $ 4,513,383,000 | |
Impairment on other real estate owned | 505,000 | 799,000 | |
Impairment on fixed assets related to banking center consolidations | 0 | 1,600,000 | $ 1,600,000 |
Net Book Balance Of Fixed Assets Sold | 6,000,000 | ||
Banking centers classified as held-for-sale | 7 | ||
Fair Value, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Nonrecurring Loans Reserves | $ 5,300,000 | $ 1,600,000 | |
Number of Loans measured | loan | 13 | 6 | |
Loans | $ 14,600,000 | $ 5,100,000 | |
Other Real Estate Owned [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment on other real estate owned | 500,000 | 800,000 | |
Other Real Estate Owned [Member] | Other liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment on other real estate owned | 200,000 | ||
Other Real Estate Owned [Member] | Problem asset workout | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment on other real estate owned | 200,000 | ||
SBA Servicing Rights | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment on mortgage servicing rights | $ 0 | ||
Measurement Input, Discount Rate [Member] | Other Real Estate Owned [Member] | Minimum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input (as a percent) | 0.06 | ||
Measurement Input, Discount Rate [Member] | Other Real Estate Owned [Member] | Maximum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input (as a percent) | 0.10 | ||
Measurement Input, Discount Rate [Member] | Other Real Estate Owned [Member] | Weighted Average | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input (as a percent) | 0.063 | ||
Measurement Input, Discount Rate [Member] | SBA Servicing Rights | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing assets measurement input (as a percent) | 0.152 | ||
Measurement Input, Constant Prepayment Rate [Member] | SBA Servicing Rights | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing assets measurement input (as a percent) | 0.124 | ||
Impaired loans [Member]. | Measurement Input, Discount Rate [Member] | Minimum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input (as a percent) | 0.02 | ||
Impaired loans [Member]. | Measurement Input, Discount Rate [Member] | Maximum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input (as a percent) | 0.15 | ||
Impaired loans [Member]. | Measurement Input, Discount Rate [Member] | Weighted Average | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input (as a percent) | 0.080 | ||
Mortgage servicing rights member | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment on mortgage servicing rights | $ (100,000) | $ 700,000 | |
Mortgage servicing rights member | Measurement Input, Discount Rate [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing assets measurement input (as a percent) | 0.100 | ||
Mortgage servicing rights member | Measurement Input, Discount Rate [Member] | Minimum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing assets measurement input (as a percent) | 0.095 | ||
Mortgage servicing rights member | Measurement Input, Discount Rate [Member] | Maximum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing assets measurement input (as a percent) | 0.100 | ||
Mortgage servicing rights member | Measurement Input, Discount Rate [Member] | Weighted Average | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing assets measurement input (as a percent) | 0.100 | 0.095 | |
Mortgage servicing rights member | Measurement Input, Constant Prepayment Rate [Member] | Minimum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing assets measurement input (as a percent) | 0.076 | 0.093 | |
Mortgage servicing rights member | Measurement Input, Constant Prepayment Rate [Member] | Maximum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing assets measurement input (as a percent) | 0.082 | 0.145 | |
Mortgage servicing rights member | Measurement Input, Constant Prepayment Rate [Member] | Weighted Average | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing assets measurement input (as a percent) | 0.077 | 0.094 |
Fair Value Measurements - Table
Fair Value Measurements - Tables of Financial Instruments Measured At Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $ 773,513 | $ 841,201 |
Total liabilities at fair value | 12,867 | 21,013 |
U.S. Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 71,388 | |
Residential Mortgage Pass-Through Securities Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 226,131 | 227,696 |
Other Residential MBS Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 405,926 | 461,334 |
Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 153 | 237 |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 1,920 | 2,111 |
Loans held for sale member | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 22,767 | 139,142 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 71,388 | |
Level 1 [Member] | U.S. Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 71,388 | |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 701,718 | 839,318 |
Total liabilities at fair value | 12,589 | 20,550 |
Level 2 [Member] | Residential Mortgage Pass-Through Securities Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 226,131 | 227,696 |
Level 2 [Member] | Other Residential MBS Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 405,926 | 461,334 |
Level 2 [Member] | Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 153 | 237 |
Level 2 [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 1,920 | 2,111 |
Level 2 [Member] | Loans held for sale member | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 22,767 | 139,142 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 407 | 1,883 |
Total liabilities at fair value | 278 | 463 |
Interest Rate Swap [Member] | Derivative [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 44,821 | 8,798 |
Total liabilities at fair value | 12,589 | 20,550 |
Interest Rate Swap [Member] | Level 2 [Member] | Derivative [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 44,821 | 8,798 |
Total liabilities at fair value | 12,589 | 20,550 |
Mortgage banking derivatives | Derivative [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 407 | 1,883 |
Total liabilities at fair value | 278 | 463 |
Mortgage banking derivatives | Level 3 [Member] | Derivative [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 407 | 1,883 |
Total liabilities at fair value | $ 278 | $ 463 |
Fair Value Measurements - Tab_2
Fair Value Measurements - Table of Changes in Level 3 Financial Instruments (Details) - Derivative Financial Instruments Assets and Liabilities [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning Balance | $ 1,420 |
Loss included in earnings, net | $ (2,124) |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Noninterest Expense |
Fees and costs included in earnings, net | $ 833 |
Ending Balance | $ 129 |
Fair Value Measurements - Input
Fair Value Measurements - Inputs Used to Determine Fair Values of Oreo are Considered Level 3 Inputs in Fair Value Hierarchy (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $ 773,513 | $ 841,201 |
Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 44,277 | 27,120 |
Losses from fair value changes | 2,752 | 4,167 |
Impaired loans [Member] | Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 31,384 | 14,083 |
Losses from fair value changes | 2,187 | 1,816 |
Other Real Estate Owned [Member] | Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 3,731 | 7,005 |
Losses from fair value changes | 505 | 799 |
Mortgage servicing rights member | Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 9,162 | |
Losses from fair value changes | $ 60 | |
Premise And Equipment [Member] | Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 6,032 | |
Losses from fair value changes | $ 1,552 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS: | ||
Cash and cash equivalents | $ 195,505 | $ 845,695 |
Investment securities available-for-sale (at fair value) | 706,289 | 691,847 |
Investment securities held-to-maturity, fair value | 559,924 | 599,260 |
Mortgage-backed securities-residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises held-to-maturity | 651,527 | 609,012 |
Loans receivable | 7,130,916 | 4,463,689 |
Capital stock of FHLB | 20,300 | 700 |
Total Loans | 7,220,469 | 4,513,383 |
Loans held-for-sale | 22,767 | 139,142 |
Accrued interest receivable | 31,800 | 15,700 |
LIABILITIES: | ||
Time deposits | 873,400 | 833,916 |
Securities sold under agreements to repurchase | 20,214 | 22,768 |
Long-term debt | 53,890 | 39,478 |
Federal Home Loan Bank advances | 385,000 | |
U.S. Treasury Securities [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 71,388 | |
Investment securities held-to-maturity, fair value | 47,629 | |
Mortgage-backed securities-residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises held-to-maturity | 49,045 | |
Residential Mortgage Pass-Through Securities Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member]. | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 226,131 | 227,696 |
Investment securities held-to-maturity, fair value | 298,816 | 309,614 |
Mortgage-backed securities-residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises held-to-maturity | 339,815 | 312,916 |
Other Residential MBS Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 405,926 | 461,334 |
Investment securities held-to-maturity, fair value | 213,479 | 289,646 |
Mortgage-backed securities-residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises held-to-maturity | 262,667 | 296,096 |
Other Securities [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 771 | 469 |
Municipal Securities [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 153 | 237 |
Corporate Debt Securities [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 1,920 | 2,111 |
Carrying Amount [Member] | Level 1 [Member] | ||
ASSETS: | ||
Cash and cash equivalents | 195,505 | 845,695 |
Carrying Amount [Member] | Level 2 [Member] | ||
ASSETS: | ||
Non-marketable securities | 38,390 | 14,533 |
Loans held-for-sale | 22,767 | 139,142 |
Accrued interest receivable | 34,587 | 17,848 |
LIABILITIES: | ||
Deposit transaction accounts | 6,999,226 | 5,394,257 |
Time deposits | 873,400 | 833,916 |
Securities sold under agreements to repurchase | 20,214 | 22,768 |
Long-term debt | 55,000 | 40,000 |
Federal Home Loan Bank advances | 385,000 | |
Accrued interest payable | 3,201 | 3,944 |
Carrying Amount [Member] | Level 3 [Member] | ||
ASSETS: | ||
Total Loans | 7,220,469 | 4,513,383 |
Carrying Amount [Member] | U.S. Treasury Securities [Member] | Level 1 [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 71,388 | |
Investment securities held-to-maturity, fair value | 49,045 | |
Carrying Amount [Member] | Residential Mortgage Pass-Through Securities Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member]. | Level 2 [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 226,131 | 227,696 |
Mortgage-backed securities-residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises held-to-maturity | 339,815 | 312,916 |
Carrying Amount [Member] | Other Residential MBS Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | Level 2 [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 405,926 | 461,334 |
Mortgage-backed securities-residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises held-to-maturity | 262,667 | 296,096 |
Carrying Amount [Member] | Other Securities [Member] | Level 3 [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 771 | 469 |
Carrying Amount [Member] | Municipal Securities [Member] | Level 2 [Member] | ||
ASSETS: | ||
Municipal obligations | 153 | 237 |
Carrying Amount [Member] | Corporate Debt Securities [Member] | Level 2 [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 1,920 | 2,111 |
Estimated Fair Value [Member] | Level 1 [Member] | ||
ASSETS: | ||
Cash and cash equivalents | 195,505 | 845,695 |
Estimated Fair Value [Member] | Level 2 [Member] | ||
ASSETS: | ||
Non-marketable securities | 38,390 | 14,533 |
Loans held-for-sale | 22,767 | 139,142 |
Accrued interest receivable | 34,587 | 17,848 |
LIABILITIES: | ||
Deposit transaction accounts | 6,999,226 | 5,394,257 |
Time deposits | 845,688 | 833,163 |
Securities sold under agreements to repurchase | 20,214 | 22,768 |
Long-term debt | 52,430 | 40,000 |
Federal Home Loan Bank advances | 385,000 | |
Accrued interest payable | 3,201 | 3,944 |
Estimated Fair Value [Member] | Level 3 [Member] | ||
ASSETS: | ||
Total Loans | 6,964,107 | 4,540,847 |
Estimated Fair Value [Member] | U.S. Treasury Securities [Member] | Level 1 [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 71,388 | |
Investment securities held-to-maturity, fair value | 47,629 | |
Estimated Fair Value [Member] | Residential Mortgage Pass-Through Securities Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member]. | Level 2 [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 226,131 | 227,696 |
Mortgage-backed securities-residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises held-to-maturity | 298,816 | 309,614 |
Estimated Fair Value [Member] | Other Residential MBS Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | Level 2 [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 405,926 | 461,334 |
Mortgage-backed securities-residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises held-to-maturity | 213,479 | 289,646 |
Estimated Fair Value [Member] | Other Securities [Member] | Level 3 [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 771 | 469 |
Estimated Fair Value [Member] | Municipal Securities [Member] | Level 2 [Member] | ||
ASSETS: | ||
Municipal obligations | 153 | 237 |
Estimated Fair Value [Member] | Corporate Debt Securities [Member] | Level 2 [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 1,920 | 2,111 |
Interest Rate Swap [Member] | Carrying Amount [Member] | Level 2 [Member] | ||
ASSETS: | ||
Derivative asset | $ 45,046 | $ 8,798 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
LIABILITIES: | ||
Derivative liability | $ 12,589 | $ 20,550 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities. | Other Liabilities. |
Interest Rate Swap [Member] | Estimated Fair Value [Member] | Level 2 [Member] | ||
ASSETS: | ||
Derivative asset | $ 45,046 | $ 8,798 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
LIABILITIES: | ||
Derivative liability | $ 12,589 | $ 20,550 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities. | Other Liabilities. |
Mortgage banking derivatives | Carrying Amount [Member] | Level 3 [Member] | ||
ASSETS: | ||
Derivative asset | $ 407 | $ 1,883 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
LIABILITIES: | ||
Derivative liability | $ 278 | $ 463 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities. | Other Liabilities. |
Mortgage banking derivatives | Estimated Fair Value [Member] | Level 3 [Member] | ||
ASSETS: | ||
Derivative asset | $ 407 | $ 1,883 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
LIABILITIES: | ||
Derivative liability | $ 278 | $ 463 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities. | Other Liabilities. |
Parent Company Only Financial_3
Parent Company Only Financial Statements - Condensed Statements of Financial Condition (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||||
Cash and cash equivalents | $ 195,505 | $ 845,695 | ||
Non-marketable securities | 89,049 | 50,740 | ||
Other assets | 298,329 | 182,785 | ||
Total assets | 9,573,243 | 7,214,011 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Long-term debt, net | 53,890 | 39,478 | ||
Other liabilities | 149,311 | 83,486 | ||
Total liabilities | 8,481,041 | 6,373,905 | ||
Stockholders' equity | 1,092,202 | 840,106 | $ 820,691 | $ 766,920 |
Total liabilities and shareholders' equity | 9,573,243 | 7,214,011 | ||
Consolidated | Reportable Legal Entities [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 46,250 | 107,154 | ||
Non-marketable securities | 35,802 | 24,178 | ||
Investment in subsidiaries | 1,034,501 | 746,135 | ||
Other assets | 33,674 | 7,366 | ||
Total assets | 1,150,227 | 884,833 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Long-term debt, net | 53,890 | 39,478 | ||
Other liabilities | 4,135 | 5,249 | ||
Total liabilities | 58,025 | 44,727 | ||
Stockholders' equity | 1,092,202 | 840,106 | ||
Total liabilities and shareholders' equity | $ 1,150,227 | $ 884,833 |
Parent Company Only Financial_4
Parent Company Only Financial Statements - Condensed Statements of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income from non-marketable securities | $ 1,034 | $ 838 | $ 1,157 |
Interest expense: | |||
Interest expense | 17,853 | 13,821 | 25,056 |
Salaries and benefits | 124,971 | 127,504 | 141,170 |
Income before income taxes | 86,184 | 114,971 | 109,397 |
Income tax expense | 14,910 | 21,365 | 20,806 |
Net income | 71,274 | 93,606 | 88,591 |
Consolidated | Reportable Legal Entities [Member] | |||
Equity in undistributed earnings of subsidiaries | 30,260 | 37,866 | 67,416 |
Distributions from subsidiaries | 52,000 | 63,000 | 27,200 |
Income from non-marketable securities | (262) | 553 | |
Total income | 81,998 | 101,419 | 94,616 |
Interest expense: | |||
Interest expense | 1,519 | 197 | |
Salaries and benefits | 6,138 | 5,622 | 5,136 |
Other expenses | 6,433 | 5,042 | 2,621 |
Total expenses | 14,090 | 10,861 | 7,757 |
Income before income taxes | 67,908 | 90,558 | 86,859 |
Income tax expense | (3,366) | (3,048) | (1,732) |
Net income | $ 71,274 | $ 93,606 | $ 88,591 |
Parent Company Only Financial_5
Parent Company Only Financial Statements - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 71,274 | $ 93,606 | $ 88,591 |
Stock-based compensation expense | 6,059 | 5,541 | 5,299 |
Net excess tax benefit on stock-based compensation | (294) | (644) | 51 |
Net cash provided by (used in) operating activities | 214,634 | 179,502 | (6,212) |
Cash flows from investing activities: | |||
Purchase of non-marketable securities | (13,500) | (27,700) | |
Net cash used in investing activities | (752,137) | (473,836) | (152,591) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 40,000 | ||
Payment of long-term debt issuance costs | (535) | ||
Issuance of stock under purchase and equity compensation plans | (1,481) | (2,267) | (749) |
Proceeds from exercise of stock options | 1,102 | 2,489 | 1,832 |
Payment of dividends | (30,447) | (26,888) | (24,816) |
Repurchase of shares | (36,400) | (19,476) | |
Net cash (used in) provided by financing activities | (114,198) | 528,989 | 654,178 |
(Decrease) increase in cash, cash equivalents and restricted cash(1) | (651,701) | 234,655 | 495,375 |
Cash, cash equivalents and restricted cash at beginning of the year(1) | 850,220 | 615,565 | 120,190 |
Cash, cash equivalents and restricted cash at end of period(1) | 198,519 | 850,220 | 615,565 |
Consolidated | Reportable Legal Entities [Member] | |||
Cash flows from operating activities: | |||
Net income | 71,274 | 93,606 | 88,591 |
Equity in undistributed earnings of subsidiaries | (30,260) | (37,866) | (67,416) |
Stock-based compensation expense | 6,059 | 5,541 | 5,299 |
Net excess tax benefit on stock-based compensation | (294) | (644) | 51 |
Amortization | 158 | 13 | |
Other | 73 | (3,747) | 3,074 |
Net cash provided by (used in) operating activities | 47,010 | 56,903 | 29,599 |
Cash flows from investing activities: | |||
Outlay for business combinations | (67,128) | ||
Purchase of non-marketable securities | (11,471) | (23,025) | |
Net cash used in investing activities | (78,599) | (23,025) | |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 40,000 | ||
Payment of long-term debt issuance costs | (535) | ||
Issuance of stock under purchase and equity compensation plans | (1,481) | (2,267) | (749) |
Proceeds from exercise of stock options | 1,102 | 2,489 | 1,832 |
Payment of dividends | (30,447) | (26,888) | (24,816) |
Repurchase of shares | (36,400) | (19,476) | |
Net cash (used in) provided by financing activities | (30,826) | (23,601) | (43,209) |
(Decrease) increase in cash, cash equivalents and restricted cash(1) | (62,415) | 10,277 | (13,610) |
Cash, cash equivalents and restricted cash at beginning of the year(1) | 111,679 | 101,402 | 115,012 |
Cash, cash equivalents and restricted cash at end of period(1) | $ 49,264 | $ 111,679 | $ 101,402 |