Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 13, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-37875 | ||
Entity Registrant Name | FB FINANCIAL CORPORATION | ||
Entity Incorporation, State or Country Code | TN | ||
Entity Tax Identification Number | 62-1216058 | ||
Entity Address, Address Line One | 1221 Broadway | ||
Entity Address, Address Line Two | Suite 1300 | ||
Entity Address, City or Town | Nashville | ||
Entity Address, State or Province | TN | ||
Entity Address, Postal Zip Code | 37203 | ||
City Area Code | 615 | ||
Local Phone Number | 564-1212 | ||
Title of 12(b) Security | Common Stock, Par Value $1.00 Per Share | ||
Trading Symbol | FBK | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Reporting Company | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 987,421,710 | ||
Entity Common Stock, Shares Outstanding | 46,858,267 | ||
Documents Incorporated by Reference | Portions of the registrant’s Definitive Proxy Statement relating to the registrant's 2024 Annual Meeting of Shareholders, which will be filed within 120 days after December 31, 2023, are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001649749 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor Information [Abstract] | |
Auditor Name | Crowe LLP |
Auditor Location | Franklin, Tennessee |
Auditor Firm ID | 173 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 146,542 | $ 259,872 |
Federal funds sold and reverse repurchase agreements | 83,324 | 210,536 |
Interest-bearing deposits in financial institutions | 581,066 | 556,644 |
Cash and cash equivalents | 810,932 | 1,027,052 |
Investments: | ||
Available-for-sale debt securities, at fair value | 1,471,973 | 1,471,186 |
Equity securities, at fair value | 0 | 2,990 |
Federal Home Loan Bank stock, at cost | 34,190 | 58,641 |
Loans held for sale (includes $46,618 and $113,240 at fair value, respectively) | 67,847 | 139,451 |
Loans held for investment | 9,408,783 | 9,298,212 |
Less: allowance for credit losses on loans HFI | 150,326 | 134,192 |
Net loans held for investment | 9,258,457 | 9,164,020 |
Premises and equipment, net | 155,731 | 146,316 |
Operating lease right-of-use assets | 54,295 | 60,043 |
Interest receivable | 52,715 | 45,684 |
Mortgage servicing rights, at fair value | 164,249 | 168,365 |
Bank-owned life insurance | 76,143 | 75,329 |
Other real estate owned, net | 3,192 | 5,794 |
Goodwill | 242,561 | 242,561 |
Core deposit and other intangibles, net | 8,709 | 12,368 |
Other assets | 203,409 | 227,956 |
Total assets | 12,604,403 | 12,847,756 |
Deposits | ||
Noninterest-bearing | 2,218,382 | 2,676,631 |
Interest-bearing checking | 2,504,421 | 3,059,984 |
Money market and savings | 4,204,851 | 3,697,245 |
Customer time deposits | 1,469,811 | 1,420,131 |
Brokered and internet time deposits | 150,822 | 1,843 |
Total deposits | 10,548,287 | 10,855,834 |
Borrowings | 390,964 | 415,677 |
Operating lease liabilities | 67,643 | 69,754 |
Accrued expenses and other liabilities | 142,622 | 180,973 |
Total liabilities | 11,149,516 | 11,522,238 |
SHAREHOLDERS' EQUITY | ||
Common stock, $1 par value per share; 75,000,000 shares authorized; 46,848,934 and 46,737,912 shares issued and outstanding, respectively | 46,849 | 46,738 |
Additional paid-in capital | 864,258 | 861,588 |
Retained earnings | 678,412 | 586,532 |
Accumulated other comprehensive loss, net | (134,725) | (169,433) |
Total FB Financial Corporation common shareholders' equity | 1,454,794 | 1,325,425 |
Noncontrolling interest | 93 | 93 |
Total equity | 1,454,887 | 1,325,518 |
Total liabilities and shareholders' equity | $ 12,604,403 | $ 12,847,756 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair value of loan held for sale | $ 67,847 | $ 139,451 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 46,848,934 | 46,737,912 |
Common stock, shares outstanding (in shares) | 46,848,934 | 46,737,912 |
Fair Value | ||
Fair value of loan held for sale | $ 46,618 | $ 113,240 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest income: | |||
Interest and fees on loans | $ 599,195 | $ 436,363 | $ 359,262 |
Interest on investment securities | |||
Taxable | 27,257 | 25,469 | 15,186 |
Tax-exempt | 7,153 | 7,332 | 7,657 |
Other | 44,805 | 12,258 | 2,893 |
Total interest income | 678,410 | 481,422 | 384,998 |
Interest expense: | |||
Deposits | 258,819 | 56,642 | 30,189 |
Borrowings | 12,374 | 12,545 | 7,439 |
Total interest expense | 271,193 | 69,187 | 37,628 |
Net interest income | 407,217 | 412,235 | 347,370 |
Provision for (reversal of) credit losses on loans HFI | 16,738 | 10,393 | (38,995) |
(Reversal of) provision for credit losses on unfunded commitments | (14,199) | 8,589 | (1,998) |
Net interest income after provision for (reversal of) credit losses | 404,678 | 393,253 | 388,363 |
Noninterest income: | |||
(Loss) gain from investment securities, net | (13,973) | (376) | 324 |
(Loss) gain on sales or write-downs of other real estate owned and other assets | (27) | (265) | 2,827 |
Other income | 6,095 | 5,213 | 19,047 |
Total noninterest income | 70,543 | 114,667 | 228,255 |
Noninterest expenses: | |||
Salaries, commissions and employee benefits | 203,441 | 211,491 | 248,318 |
Occupancy and equipment expense | 28,148 | 23,562 | 22,733 |
Data processing | 9,230 | 9,315 | 9,987 |
Legal and professional fees | 8,890 | 15,028 | 9,161 |
Advertising | 8,267 | 11,208 | 13,921 |
Amortization of core deposit and other intangibles | 3,659 | 4,585 | 5,473 |
Mortgage restructuring expense | 0 | 12,458 | 0 |
Other expense | 63,294 | 60,699 | 63,974 |
Total noninterest expense | 324,929 | 348,346 | 373,567 |
Income before income taxes | 150,292 | 159,574 | 243,051 |
Income tax expense | 30,052 | 35,003 | 52,750 |
Net income applicable to FB Financial Corporation and noncontrolling interest | 120,240 | 124,571 | 190,301 |
Net income applicable to noncontrolling interest | 16 | 16 | 16 |
Net income applicable to FB Financial Corporation | $ 120,224 | $ 124,555 | $ 190,285 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 2.57 | $ 2.64 | $ 4.01 |
Diluted (in dollars per share) | $ 2.57 | $ 2.64 | $ 3.97 |
Mortgage banking income | |||
Noninterest income: | |||
Mortgage banking income, service charges on deposit accounts, investment services and trust income, ATM and interchange fees | $ 44,692 | $ 73,580 | $ 167,565 |
Service charges on deposit accounts | |||
Noninterest income: | |||
Mortgage banking income, service charges on deposit accounts, investment services and trust income, ATM and interchange fees | 12,154 | 12,049 | 10,034 |
Investment services and trust income | |||
Noninterest income: | |||
Mortgage banking income, service charges on deposit accounts, investment services and trust income, ATM and interchange fees | 11,320 | 8,866 | 8,558 |
ATM and interchange fees | |||
Noninterest income: | |||
Mortgage banking income, service charges on deposit accounts, investment services and trust income, ATM and interchange fees | $ 10,282 | $ 15,600 | $ 19,900 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 120,240 | $ 124,571 | $ 190,301 |
Other comprehensive income (loss), net of tax: | |||
Net unrealized gain (loss) in available-for-sale securities, net of tax expense (benefit) of $8,706, $(62,316), and $(7,224) | 24,802 | (176,798) | (22,475) |
Reclassification adjustment for loss (gain) on sale of securities included in net income, net of tax benefit (expense) of $3,668, $—, and $(33) | 10,406 | (1) | (93) |
Net unrealized (loss) gain in hedging activities, net of tax (benefit) expense of $(176), $532, and $293 | (500) | 1,508 | 831 |
Total other comprehensive income (loss), net of tax | 34,708 | (175,291) | (21,737) |
Comprehensive income (loss) applicable to FB Financial Corporation and noncontrolling interest | 154,948 | (50,720) | 168,564 |
Comprehensive income applicable to noncontrolling interest | 16 | 16 | 16 |
Comprehensive income (loss) applicable to FB Financial Corporation | $ 154,932 | $ (50,736) | $ 168,548 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net tax (benefits) expenses on net change in unrealized gain (loss) on available-for-sale securities | $ 8,706 | $ (62,316) | $ (7,224) |
Net tax expenses (benefits) on reclassification adjustment for gain on sale of securities included in net income | 3,668 | 0 | (33) |
Net tax expenses (benefits) recognized on net change in unrealized gain (loss) on hedging activities | $ (176) | $ 532 | $ 293 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | RSUs | PSUs | Total common shareholders' equity | Total common shareholders' equity RSUs | Total common shareholders' equity PSUs | Common stock | Common stock RSUs | Common stock PSUs | Additional paid-in capital | Additional paid-in capital RSUs | Additional paid-in capital PSUs | Retained earnings | Accumulated other comprehensive income (loss), net | Noncontrolling interest |
Beginning balance at Dec. 31, 2020 | $ 1,291,382 | $ 1,291,289 | $ 47,222 | $ 898,847 | $ 317,625 | $ 27,595 | $ 93 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income attributable to FB Financial Corporation and noncontrolling interest | 190,301 | 190,285 | 190,285 | 16 | |||||||||||
Other comprehensive income (loss), net of taxes | (21,737) | (21,737) | (21,737) | ||||||||||||
Repurchase of common stock | (7,595) | (7,595) | (179) | (7,416) | |||||||||||
Stock based compensation expense | 10,282 | 10,282 | 7 | 10,275 | 0 | ||||||||||
Restricted stock and performance-based restricted stock units vested, net of taxes | $ (10,158) | $ (10,158) | $ 462 | $ (10,620) | |||||||||||
Shares issued under employee stock purchase program | 1,480 | 1,480 | 37 | 1,443 | |||||||||||
Dividends declared | (21,244) | (21,244) | 0 | 0 | (21,244) | ||||||||||
Noncontrolling interest distribution | (16) | 0 | 0 | (16) | |||||||||||
Ending balance at Dec. 31, 2021 | 1,432,695 | 1,432,602 | 47,549 | 892,529 | 486,666 | 5,858 | 93 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income attributable to FB Financial Corporation and noncontrolling interest | 124,571 | 124,555 | 124,555 | 16 | |||||||||||
Other comprehensive income (loss), net of taxes | (175,291) | (175,291) | (175,291) | ||||||||||||
Repurchase of common stock | (39,979) | (39,979) | (997) | (38,982) | |||||||||||
Stock based compensation expense | 9,857 | 9,857 | 3 | 9,854 | |||||||||||
Restricted stock and performance-based restricted stock units vested, net of taxes | (2,842) | (2,842) | 156 | (2,998) | |||||||||||
Shares issued under employee stock purchase program | 1,212 | 1,212 | 27 | 1,185 | |||||||||||
Dividends declared | (24,689) | (24,689) | (24,689) | ||||||||||||
Noncontrolling interest distribution | (16) | (16) | |||||||||||||
Ending balance at Dec. 31, 2022 | 1,325,518 | 1,325,425 | 46,738 | 861,588 | 586,532 | (169,433) | 93 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income attributable to FB Financial Corporation and noncontrolling interest | 120,240 | 120,224 | 120,224 | 16 | |||||||||||
Other comprehensive income (loss), net of taxes | 34,708 | 34,708 | 34,708 | ||||||||||||
Repurchase of common stock | (4,944) | (4,944) | (136) | (4,808) | |||||||||||
Stock based compensation expense | 10,381 | 10,381 | 9 | 10,372 | |||||||||||
Restricted stock and performance-based restricted stock units vested, net of taxes | $ (2,064) | $ (1,315) | $ (2,064) | $ (1,315) | $ 149 | $ 68 | $ (2,213) | $ (1,383) | |||||||
Shares issued under employee stock purchase program | 723 | 723 | 21 | 702 | |||||||||||
Dividends declared | (28,344) | (28,344) | (28,344) | ||||||||||||
Noncontrolling interest distribution | (16) | (16) | |||||||||||||
Ending balance at Dec. 31, 2023 | $ 1,454,887 | $ 1,454,794 | $ 46,849 | $ 864,258 | $ 678,412 | $ (134,725) | $ 93 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared (in dollars per share) | $ 0.60 | $ 0.52 | $ 0.44 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income attributable to FB Financial Corporation and noncontrolling interest | $ 120,240 | $ 124,571 | $ 190,301 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of fixed assets and software | 11,180 | 8,017 | 8,416 |
Amortization of core deposit and other intangibles | 3,659 | 4,585 | 5,473 |
Amortization of Debt Issuance Costs and Accretion of Premiums | 387 | 387 | 17 |
Capitalization of mortgage servicing rights | (7,192) | (20,809) | (39,018) |
Net change in fair value of mortgage servicing rights | 11,308 | (32,044) | 3,503 |
Stock-based compensation expense | 10,381 | 9,857 | 10,282 |
Provision for (reversal of) credit losses on loans HFI | 16,738 | 10,393 | (38,995) |
(Reversal of) provision for credit losses on unfunded commitments | (14,199) | 8,589 | (1,998) |
Provision for mortgage loan repurchases | (650) | (2,989) | (766) |
(Accretion) amortization of discounts and premiums on acquired loans, net | (694) | 1,020 | 853 |
Amortization (accretion) of premiums and discounts on securities, net | 6,106 | 6,589 | 8,777 |
Loss (gain) from investment securities, net | 13,973 | 376 | (324) |
Originations of loans held for sale | (1,199,362) | (2,403,476) | (6,300,892) |
Repurchases of loans held for sale | 0 | (194) | (487) |
Proceeds from sale of loans held for sale | 1,276,596 | 3,067,204 | 6,387,110 |
Gain on sale and change in fair value of loans held for sale | (28,541) | (47,783) | (161,964) |
Net loss (gain) on write-downs of other real estate owned and other assets | 27 | 265 | (2,827) |
Provision for deferred income taxes | (1,415) | 12,552 | 30,770 |
Earnings on bank-owned life insurance | (1,871) | (1,452) | (1,542) |
Changes in: | |||
Operating lease assets and liabilities, net | 3,637 | 5,030 | (969) |
Other assets and interest receivable | 6,564 | (17,222) | 59,283 |
Accrued expenses and other liabilities | (15,800) | 56,247 | (100,108) |
Net cash provided by operating activities | 211,072 | 789,713 | 54,895 |
Activity in available-for-sale securities: | |||
Sales | 100,463 | 1,218 | 8,855 |
Maturities, prepayments and calls | 128,206 | 204,748 | 296,256 |
Purchases | (202,054) | (242,889) | (847,212) |
Proceeds from sales of equity securities | 3,091 | 0 | 0 |
Net change in loans | (97,302) | (1,675,976) | (309,766) |
Sales of FHLB stock | 32,444 | 0 | 4,294 |
Purchases of FHLB stock | (7,993) | (26,424) | (5,279) |
Purchases of premises and equipment | (20,229) | (10,629) | (6,102) |
Proceeds from the sale of premises and equipment | 123 | 875 | 0 |
Proceeds from the sale of other real estate owned | 6,083 | 4,959 | 9,396 |
Proceeds from the sale of other assets | 1,717 | 0 | 0 |
Proceeds from bank-owned life insurance | 236 | 0 | 0 |
Net cash used in investing activities | (55,215) | (1,744,118) | (849,558) |
Cash flows from financing activities: | |||
Net (decrease) increase in deposits | (312,897) | 28,784 | 1,378,860 |
Net increase in securities sold under agreements to repurchase and federal funds purchased | 21,819 | 46,229 | 8,517 |
Net decrease in short-term FHLB advances and Bank Term Funding Program | (45,000) | ||
Net increase in short-term FHLB advances and Bank Term Funding Program | 175,000 | 0 | |
Payments on subordinated debt | 0 | 0 | (60,000) |
Payments on other borrowings | 0 | 0 | (15,000) |
Share based compensation withholding payments | (3,379) | (2,842) | (10,158) |
Net proceeds from sale of common stock under employee stock purchase program | 723 | 1,212 | 1,480 |
Repurchase of common stock | (4,944) | (39,979) | (7,595) |
Dividends paid on common stock | (28,057) | (24,503) | (20,866) |
Dividend equivalent payments made upon vesting of equity compensation | (226) | (168) | (717) |
Noncontrolling interest distribution | (16) | (16) | (16) |
Net cash (used in) provided by financing activities | (371,977) | 183,717 | 1,274,505 |
Net change in cash and cash equivalents | (216,120) | (770,688) | 479,842 |
Cash and cash equivalents at beginning of the period | 1,027,052 | 1,797,740 | 1,317,898 |
Cash and cash equivalents at end of the period | 810,932 | 1,027,052 | 1,797,740 |
Supplemental cash flow information: | |||
Interest paid | 261,032 | 63,701 | 41,238 |
Taxes paid, net | 37,937 | 906 | 61,693 |
Supplemental noncash disclosures: | |||
Transfers from loans to other real estate owned | 2,736 | 1,437 | 5,262 |
Transfers from loans to other assets | 2,925 | 0 | 0 |
Transfers from other real estate owned to other assets | 75 | 0 | 0 |
Transfers from other real estate owned to premises and equipment | 0 | 351 | 0 |
Loans provided for sales of other real estate owned | 0 | 0 | 704 |
Loans provided for sales of other assets | 911 | 0 | 0 |
Transfers from loans to loans held for sale | 13,720 | 46,364 | 10,408 |
Transfers from loans held for sale to loans | 3,273 | 24,479 | 86,315 |
(Decrease) increase in rebooked GNMA loans under optional repurchase program | (4,982) | 26,211 | 0 |
Dividends declared not paid on restricted stock units | 287 | 222 | 400 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 7,300 | $ 25,399 | $ 970 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation (A) Organization and Company overview FB Financial Corporation (the “Company”) is a financial holding company headquartered in Nashville, Tennessee. FirstBank (the “Bank”), a direct subsidiary of the Company, headquartered in Nashville, provides a comprehensive suite of commercial and consumer banking services to clients in select markets. These services are offered through the Bank's 81 full-service branches throughout Tennessee, Kentucky, Alabama and North Georgia, as well as other limited servicing banking, ATM and mortgage loan production locations serving metropolitan and community markets across its footprint. (B) Basis of presentation and use of estimates The accompanying consolidated financial statements include the Company and its wholly-owned subsidiaries, namely the Bank. All significant intercompany accounts and transactions have been eliminated in consolidation. The accounting policies followed by the Company and its subsidiaries and the methods of applying these principles conform with accounting principles generally accepted in the United States of America and general banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period, the most significant of which relate to the allowance for credit losses and mortgage servicing rights. Certain policies that significantly affect the determination of financial position, results of operations and cash flows are summarized below. Additionally, certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications did not materially impact the Company's consolidated financial statements. (C) Cash and cash equivalents The Company considers all highly liquid unrestricted investments with a maturity of three months or less when purchased to be cash equivalents. This includes cash, federal funds sold, reverse repurchase agreements and interest-bearing deposits in other financial institutions. The Bank maintains its cash in bank deposit accounts, which, at times, may exceed federally insured limits. The Bank has not experienced any losses in such correspondent accounts and believes it is not exposed to any significant credit risk from cash and cash equivalents. (D) Investment securities Available-for-sale debt securities, at fair value Debt securities that might be sold before maturity are classified as available-for-sale. Available-for-sale debt securities are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of applicable taxes, unless such unrealized gain or loss results from expected credit losses. Unrealized losses resulting from credit losses for available-for-sale debt securities are recognized in earnings as a provision for credit losses. Accrued interest receivable for available-for-sale securities is separated from other components of amortized cost and presented separately on the consolidated balance sheets. The amortization and accretion of purchase premiums or discounts is recognized as interest income on the level-yield method anticipating prepayments based upon the prior three month average monthly prepayments when available. The Company evaluates available-for-sale securities for expected credit losses. For securities in an unrealized loss position, consideration is given to the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer and the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. In analyzing an issuer’s financial condition, the Company considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. If the Company does not intend to sell the security and it is not more likely than not to be required to sell the security before recovery of its amortized cost basis, the difference between the amortized cost and the fair value is separated into estimated credit losses and all other factors. Estimated credit losses are recorded as an allowance for credit losses and recognized in earnings as a provision for credit losses. Amounts related to other, non-credit related factors are recognized in other comprehensive income, net of applicable taxes. The Company did not record any provision for credit losses for its available-for-sale debt securities during the years ended December 31, 2023 and 2022 as declines in fair value below amortized cost were determined to be non-credit related. Sales of available-for-sale securities are evaluated based on factors such as changes in interest rates, liquidity needs, asset and liability management strategies and other factors. If the Company intends to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, the expected credit loss recognized in earnings is equal to the difference between its amortized cost basis and its fair value at the date it was determined to be impaired due to credit losses or other factors. The sale and purchase of investment securities are recognized on a trade date basis with gains and losses on sales being determined using the specific identification method. Held-to-maturity securities Debt securities are classified as held-to-maturity and carried at amortized cost, excluding accrued interest, when management has the positive intent and ability to hold them to maturity. At December 31, 2023 and 2022, the Company did not own held-to-maturity securities. Trading account securities Trading account securities are held for the purpose of buying and selling securities at a profit. Trading account securities are carried at fair value on the balance sheet, with any periodic changes in fair value recorded through income. At December 31, 2023 and 2022, the Company did not own trading account securities. Equity securities, at fair value Equity securities with readily determinable market values are carried at fair value on the balance sheet with any periodic changes in fair value recorded through income. Equity securities without readily determinable market values are carried at cost less impairment and included in “Other assets” on the consolidated balance sheets. Federal Home Loan Bank stock, at cost The Company accounts for its investments in FHLB stock in accordance with ASC 942-325 “Financial Services-Depository and Lending-Investments-Other.” FHLB stock does not have a readily determinable fair value because its ownership is restricted and lacks a market as all transactions are executed at par value with the FHLB as the sole purchaser. FHLB stock is carried at cost and evaluated for impairment based upon management’s assessment of the recoverability of the par value. Ownership of FHLB stock is required to participate in the FHLB system and varies based upon the amount of FHLB advances. (E) Loans held for sale Mortgage loans held for sale Mortgage loans originated and intended for sale in the secondary market are carried at fair value under the fair value option as permitted under the guidance in ASC 825, “Financial Instruments,” until sold. Electing to measure these assets at fair value reduces certain timing differences and more accurately matches the changes in fair value of the loans with changes in the fair value of derivative instruments used to economically hedge them. The change in fair value of both loans held for sale and the related derivative instruments are recorded in “Mortgage banking income” in the consolidated statements of income. Gains and losses on sale are recognized at the time the loan is closed. Pass through origination costs and related loan fees are also included in “Mortgage banking income.” A portion of loans sold by the Company are sold to GNMA with the Company retaining the servicing rights after the sale. GNMA optional repurchase programs allow financial institutions to repurchase individual delinquent mortgage loans that meet certain criteria from the securitized loan pool from which the institution provides servicing. At the servicer's option and without GNMA's prior authorization, the servicer may repurchase such a delinquent loan for an amount equal to 100% of the remaining principal balance of the loan. Under ASC 860, “Transfers and Servicing,” this buy-back option is considered a conditional option until the delinquency criteria are met, at which time the option becomes unconditional. When the Company is deemed to have effective control over these loans under the unconditional buy-back option, the loan can no longer be reported as sold and must be brought onto the balance sheet as loans held for sale, regardless of whether the Company intends to exercise the buy-back option. These loans are reported at the current unpaid principal balance as “Loans held for sale” with an offsetting liability reported in “Borrowings” on the Company's consolidated balance sheets and are considered nonperforming assets due to their delinquent status. Commercial loan held for sale Historically, the Company held and managed a designated portfolio of commercial loans, including shared national credits and institution healthcare loans, originally acquired through past acquisitions. During year ended December 31, 2023, the Company exited the final commercial relationship designated as held for sale. Prior to this exit, the Company accounted for these designated relationships as held for sale. (F) Loans held for investment (excluding purchased credit deteriorated loans) Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at amortized cost. Amortized cost is equal to the principal amount outstanding less any remaining purchase accounting discount or premium. Interest on loans is recognized as income by using the simple interest method on daily balances of the principal amount outstanding plus any accretion or amortization of purchase accounting premiums or discounts. Loans may be designated as nonaccrual if past due 90 days or more or if management determines based on economic conditions and the borrower’s financial condition that collection of principal or interest is doubtful, unless the credit is well secured and in the process of collection. When a loan is placed on nonaccrual status, the accrued but unpaid interest is charged against current period operations. Thereafter, interest on nonaccrual loans is recognized only as received if future collection of principal is probable. If the collectability of outstanding principal is doubtful, interest received is applied as a reduction of principal. A loan may be restored to accrual status when principal and interest are no longer past due or it otherwise becomes both well secured and collectability is reasonably assured. (G) Allowance for credit losses The allowance for credit losses represents the portion of the loan's amortized cost basis that the Company does not expect to collect due to credit losses over the loan's life, considering past events, current conditions, and reasonable and supportable forecasts of future economic conditions. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for credit losses is based on the loan's amortized cost basis, excluding accrued interest receivable, as the Company promptly charges off uncollectible accrued interest receivable. Management’s determination of the appropriateness of the allowance is based on periodic evaluation of the loan portfolio, lending-related commitments and other relevant factors, including macroeconomic forecasts and historical loss rates. In the future, the Company may update information and forecasts that may cause significant changes in the estimate in those future quarters. The Company calculates its expected credit loss using a lifetime loss rate methodology. The Company utilizes probability-weighted forecasts, which consider multiple macroeconomic variables from Moody's that are applicable to each type of loan. Each of the Company's loss rate models incorporate forward-looking macroeconomic projections throughout the reasonable and supportable forecast period and the subsequent historical reversion at the macroeconomic variable input level. In order to estimate the life of a loan, the contractual term of the loan is adjusted for estimated prepayments based on market information and the Company’s prepayment history. For loss estimation purposes, the Company disaggregates the loan portfolio into three loan pools: 1) Commercial and industrial; 2) Retail; 3) Commercial real estate. These loan pools are further disaggregated into loan segments for application of qualitative inputs for loss estimation purposes. These loan segments include: Commercial and industrial loans. Commercial and industrial loans are typically made to small- and medium-sized manufacturing, wholesale, retail and service businesses, and farmers for working capital and operating needs and business expansions. This category also includes loans secured by manufactured housing receivables made primarily to manufactured housing communities. Commercial and industrial loans generally include lines of credit and loans with maturities of five years or less. Commercial and industrial loans are generally made with operating cash flows as the primary source of repayment, but may also include collateralization by inventory, accounts receivable, equipment and personal guarantees. Construction loans. Construction loans include commercial construction, land acquisition and land development loans and single-family interim construction loans to small- and medium-sized businesses and individuals. These loans are generally secured by the land or the real property being built and are made based on the Company's assessment of the value of the property on an as-completed basis and repayment depends upon project completion and sale, refinancing, or operation of the real estate. 1-4 family mortgage loans . The Company’s residential real estate 1-4 family mortgage loans are primarily made with respect to and secured by single family homes, including manufactured homes with real estate, which are both owner-occupied and investor owned. Repayment depends primarily upon the cash flow of the borrower as well as the value of the real estate collateral. Residential line of credit loans. The Company’s residential line of credit loans are primarily revolving, open-end lines of credit secured by 1-4 residential properties. Repayment depends primarily upon the cash flow of the borrower as well as the value of the real estate collateral. Multi-family residential loans. The Company’s multi-family residential loans are primarily secured by multi-family properties, such as apartments and condominium buildings. Repayment depends primarily upon the cash flow of the borrower as well as the value of the real estate collateral. Commercial real estate owner-occupied loans . The Company’s commercial real estate owner-occupied loans include loans to finance commercial real estate owner occupied properties for various purposes including use as offices, warehouses, production facilities, health care facilities, retail centers, restaurants, churches and agricultural based facilities. Commercial real estate owner-occupied loans are typically repaid through the ongoing business operations of the borrower. Commercial real estate non-owner occupied loans . The Company’s commercial real estate non-owner occupied loans include loans to finance commercial real estate investment properties for various purposes including use as offices, warehouses, health care facilities, hotels, mixed-use residential/commercial, manufactured housing communities, retail centers, multifamily properties, assisted living facilities and agricultural based facilities. Commercial real estate non-owner occupied loans are typically repaid with the funds received from the sale or refinancing of the property or rental income from such property. Consumer and other loans . The Company’s consumer and other loans include loans to individuals for personal, family and household purposes, including car, boat and other recreational vehicle loans, manufactured homes (without real estate) and personal lines of credit. Consumer loans are generally secured by vehicles and other household goods, with repayment depending primarily on the cash flow of the borrower. Other loans also include loans to states and political subdivisions in the U.S. and are repaid through tax revenues or refinancing. None of these categories of loans represent a significant portion of the Company's loan portfolio. The Company's loss rate models estimate the lifetime loss rate for the pools of loan segments by combining the calculated loss rate based on each variable within the model, including the macroeconomic variables. The lifetime loss rate for the pool is then multiplied by the loan balances to determine the expected credit losses on the pool. The quantitative models require loan data and macroeconomic variables based on the inherent credit risks in each portfolio to more accurately measure the credit risks associated with each. The quantitative models pool loans with similar risk characteristics and collectively assesses the lifetime loss rate for each pool to estimate its expected credit loss. The Company considers the need to qualitatively adjust its modeled quantitative expected credit loss estimate for information not otherwise captured in the model loss estimation process. These qualitative factor adjustments may increase or decrease the Company’s estimate of expected credit losses. The Company considers the qualitative factors that are relevant to the institution as of the reporting date, which may include, but are not limited to: levels of and trends in delinquencies and performance of loans; levels of and trends in write-offs and recoveries collected; trends in volume and terms of loans; effects of any changes in reasonable and supportable economic forecasts; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and expertise; available relevant information sources that contradict the Company’s own forecast; effects of changes in prepayment expectations or other factors affecting assessments of loan contractual terms; industry conditions; and effects of changes in credit concentrations. When a loan no longer shares similar risk characteristics with other loans in any given pool, the loan is individually assessed. A loan may require an individual evaluation when it is collateral-dependent; foreclosure is probable; or it has other unique risk characteristics. A loan is deemed collateral-dependent when the borrower is experiencing financial difficulty and the repayment is expected to be primarily through sale or operation of the collateral. The allowance for credit losses for collateral-dependent loans as well as loans where foreclosure is probable is calculated as the amount for which the loan’s amortized cost basis exceeds fair value. Fair value is determined based on appraisals performed by qualified appraisers and reviewed by qualified personnel. In cases where repayment is to be provided substantially through the sale of collateral, the Company reduces the fair value by the estimated costs to sell. Effective January 1, 2023, the Company prospectively adopted the accounting guidance in ASU 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures,” which eliminates the recognition and measurement of TDRs. Since adoption, the Company no longer measures an allowance for credit losses for TDRs it reasonably expects will occur, and it evaluates all loan modifications according to the accounting guidance for loan refinancing and modifications to determine whether the modification should be accounted for as a new loan or a continuation of the existing loan. The Company derecognizes the existing loan and accounts for the modified loan as a new loan if the effective yield on the modified loan is at least equal to the effective yield for comparable loans with similar collection risks and the modifications to the original loan are more than minor. If a loan modification does not meet these conditions, it extends the existing loan’s amortized cost basis and accounts for the modified loan as a continuation of the existing loan. Substantially all of its loan modifications involving borrowers experiencing financial difficulty are accounted for as a continuation of the existing loan. Prior to January 1, 2023, loans experiencing financial difficulty for which a concession has not yet been provided may be identified as reasonably expected TDRs. Reasonably expected TDRs and TDRs used the same methodology to estimate credit losses. In cases where the expected credit loss could only be captured through a discounted cash flow analysis (such as an interest rate modification for a TDR loan), the allowance was measured by the amount which the loan’s amortized cost exceeds the discounted cash flow analysis. See Note 3, “Loans and allowance for credit losses” for additional details related to the Company's allowance for credit losses. (H) Business combinations and accounting for purchase credit deteriorated loans Business combinations are accounted for by applying the acquisition method in accordance with ASC 805, “Business Combinations.” Under the acquisition method, identifiable assets acquired and liabilities assumed and any non-controlling interest in the acquiree at the acquisition date are measured at their fair values as of that date. Any excess of the purchase price over fair value of net assets acquired is recorded as goodwill. To the extent the fair value of net assets acquired, including any other identifiable intangible assets, exceeds the purchase price, a bargain purchase gain is recognized. Results of operations of acquired entities are included in the consolidated statements of income from the date of acquisition. Loans acquired in business combinations with evidence of more-than-insignificant credit deterioration since origination are considered to be PCD. The Company developed multiple criteria to assess the presence of more–than–insignificant credit deterioration in acquired loans, mainly focused on changes in credit quality and payment status. While general criteria have been established, each acquisition will vary in its specific facts and circumstances and the Company will apply judgment around PCD identification for each individual acquisition based on their unique portfolio mix and risks identified. (I) Off-balance sheet financial instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded, unless considered derivatives. For loan commitments that are not accounted for as derivatives and when the obligation is not unconditionally cancellable by the Company, the Company applies the CECL methodology to estimate the expected credit loss on off-balance sheet commitments. The estimate of expected credit losses for off-balance sheet credit commitments is recognized as a liability. When the loan is funded, an allowance for expected credit losses is estimated for that loan using the CECL methodology, and the liability for off-balance sheet commitments is reduced. When applying the CECL methodology to estimate the expected credit loss, the Company considers the likelihood that funding will occur, the contractual period of exposure to credit loss, the risk of loss, historical loss experience, and current conditions along with expectations of future economic conditions. (J) Premises and equipment and other long-lived assets Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Provisions for depreciation are computed principally on the straight-line method and are charged to occupancy expense over the estimated useful lives of the assets. Maintenance agreements are amortized to expense over the period of time covered by the agreement. Costs of major additions, replacements or improvements are capitalized while expenditures for maintenance and repairs are charged to expense as incurred. For financial statement purposes, the estimated useful life for premises is the lesser of the remaining useful life per third- party appraisal or forty years, for furniture, fixtures and equipment the estimated useful life is three Premises and equipment and other long-lived assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. No long-lived assets were deemed to be impaired at December 31, 2023 or 2022. (K) Other real estate owned Real estate acquired through, or in lieu of, loan foreclosure is initially recorded at fair value less the estimated cost to sell at the date of foreclosure, which may establish a new cost basis. Other real estate owned may also include excess facilities and properties held for sale as described in Note 5, “Other real estate owned.” Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to satisfy the loan. After initial measurement, valuations are periodically performed by management and the asset is carried at the lower of carrying amount or fair value less costs to sell. Revenue and expenses from operations are included in other noninterest income and noninterest expenses. Losses due to the valuation of the property are included in gain (loss) on sales or write-downs of other real estate owned. (L) Leases The Company leases certain banking, mortgage and operations locations. The Company records leases on the balance sheet in the form of a lease liability for the present value of future minimum payments under the lease terms and a right-of-use asset equal to the lease liability adjusted for items such as deferred or prepaid rent, incentive liabilities, leasehold intangibles and any impairment of the right-of-use asset. In determining whether a contract contains a lease, management conducts an analysis at lease inception to ensure an asset was specifically identified and the Company has control of use of the asset. The Company considers a lease to be a finance lease if future minimum lease payments amount to greater than 90% of the asset's fair value or if the lease term is equal to or greater than 75% of the asset's estimated economic useful life. The Company does not record leases on the consolidated balance sheets that are classified as short term (less than one year). Additionally, the Company has not recorded equipment leases on the consolidated balance sheets as these are not material to the Company. At lease inception, the Company determines the lease term by adding together the minimum lease term and all optional renewal periods that it is reasonably certain to renew. This determination is at management's full discretion and is made through consideration of the asset, market conditions, competition and entity based economic conditions, among other factors. The lease term is used in the economic life test and also to calculate straight-line rent expense. The depreciable life of leasehold improvements is limited by the estimated lease term, including renewals. Operating leases are expensed on a straight-line basis over the life of the lease beginning when the lease commences. Rent expense and variable lease expense are included in occupancy and equipment expense on the Company's consolidated statements of income. The Company's variable lease expense includes rent escalators that are based on the Consumer Price Index or market conditions and include items such as common area maintenance, utilities, parking, property taxes, insurance and other costs associated with the lease. The Company recognizes a right-of-use asset and a finance lease liability at the lease commencement date on the estimated present value of lease payments over the lease term for finance leases. The amortization of the right-of-use asset is expensed through occupancy and equipment expense and the interest on the lease liability is expensed through interest expense on borrowings on the Company's consolidated statements of income. There are no residual value guarantees or restrictions or covenants imposed by leases that will impact the Company's ability to pay dividends or cause the Company to incur additional expenses. The discount rate used in determining the lease liability is based upon incremental borrowing rates the Company could obtain for similar loans as of the date of commencement or renewal. (M) Mortgage servicing rights The Company accounts for its mortgage servicing rights at fair value at each reporting date with changes in the fair value reported in earnings in the period in which changes occur. The Company retains the right to service certain mortgage loans that it sells to secondary market investors. These mortgage servicing rights are recognized as a separate asset on the date the corresponding mortgage loan is sold. The retained mortgage servicing right is initially recorded at the fair value of future net cash flows expected to be realized for performing servicing activities. Fair value is determined using an income approach with various assumptions including expected cash flows, prepayment speeds, market discount rates, servicing costs, and other factors. Subsequent changes in fair value, including the write-downs due to payoffs and paydowns, are recorded in earnings in Mortgage banking income. (N) Transfers of financial assets Transfers of financial assets are accounted for as sales when control over the transferred assets is surrendered. Control is generally considered to have been surrendered when 1) the transferred assets are legally isolated from the Company or its consolidated affiliates, even in bankruptcy or other receivership, 2) the transferee has the right to pledge or exchange the assets with no conditions that constrain the transferee and provide more than a trivial benefit to the Company, and 3) the Company does not maintain the obligation or unilateral ability to reclaim or repurchase the assets. If these sale criteria are met, the transferred assets are removed from the Company’s balance sheet and a gain or loss on sale is recognized on the consolidated statements of income. If not met, the transfer is recorded as a secured borrowing, and the assets remain on the Company’s consolidated balance sheets, the proceeds from the transaction are recognized as a liability, and gain or loss on sale is deferred until the sale criterion are achieved. (O) Goodwill and other intangibles Goodwill represents the excess of the purchase price over the estimated fair value of identifiable net assets associated with acquisition transactions. Goodwill is assigned to the Company’s reporting units, Banking or Mortgage, and tested for impairment annually , or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value. As part of its testing, the Company may elect to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the results of the qualitative assessment indicate that more likely than not a reporting unit’s fair value is less than its carrying amount, the Company determines the fair value of the respective reporting unit (through the application of various quantitative valuation methodologies) relative to i |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment securities The following tables summarize the amortized cost, allowance for credit losses and fair value of the available-for-sale debt securities and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive loss at December 31, 2023 and 2022: December 31, 2023 Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses for investments Fair Value Investment Securities Available-for-sale debt securities U.S. government agency securities $ 204,663 $ 470 $ (1,177) $ — $ 203,956 Mortgage-backed securities - residential 1,057,389 — (160,418) — 896,971 Mortgage-backed securities - commercial 18,186 — (1,225) — 16,961 Municipal securities 263,312 370 (21,419) — 242,263 U.S. Treasury securities 111,729 — (3,233) — 108,496 Corporate securities 3,500 — (174) — 3,326 Total $ 1,658,779 $ 840 $ (187,646) $ — $ 1,471,973 December 31, 2022 Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses for investments Fair Value Investment Securities Available-for-sale debt securities U.S. government agency securities $ 45,167 $ — $ (5,105) $ — $ 40,062 Mortgage-backed securities - residential 1,224,522 — (190,329) — 1,034,193 Mortgage-backed securities - commercial 19,209 — (1,565) — 17,644 Municipal securities 295,375 458 (31,413) — 264,420 U.S. Treasury securities 113,301 — (5,621) — 107,680 Corporate securities 8,000 — (813) — 7,187 Total $ 1,705,574 $ 458 $ (234,846) $ — $ 1,471,186 The components of amortized cost for debt securities on the consolidated balance sheets excludes accrued interest receivable since the Company elected to present accrued interest receivable separately on the consolidated balance sheets. As of December 31, 2023 and 2022, total accrued interest receivable on debt securities was $7,212 and $5,470, respectively. Securities pledged at December 31, 2023 and 2022 had carrying amounts of $929,546 and $1,191,021, respectively, and were pledged to secure a Federal Reserve Bank line of credit, Bank Term Funding Program borrowings, public deposits and repurchase agreements. There were no holdings of debt securities of any one issuer, other than U.S. Government sponsored enterprises, in an amount greater than 10% of shareholders' equity during any period presented. Investment securities transactions are recorded as of the trade date. At December 31, 2023 and 2022, there were no trade date receivables nor payables that related to sales or purchases settled after period end. The following tables show gross unrealized losses for which an allowance for credit losses has not been recorded at December 31, 2023 and 2022, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: December 31, 2023 Less than 12 months 12 months or more Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss U.S. government agency securities $ 25,923 $ (21) $ 14,040 $ (1,156) $ 39,963 $ (1,177) Mortgage-backed securities - residential — — 896,971 (160,418) 896,971 (160,418) Mortgage-backed securities - commercial — — 16,961 (1,225) 16,961 (1,225) Municipal securities 14,480 (148) 188,669 (21,271) 203,149 (21,419) U.S. Treasury securities — — 108,496 (3,233) 108,496 (3,233) Corporate securities — — 3,326 (174) 3,326 (174) Total $ 40,403 $ (169) $ 1,228,463 $ (187,477) $ 1,268,866 $ (187,646) December 31, 2022 Less than 12 months 12 months or more Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss U.S. government agency securities $ 23,791 $ (2,802) $ 16,271 $ (2,303) $ 40,062 $ (5,105) Mortgage-backed securities - residential 316,656 (32,470) 717,537 (157,859) 1,034,193 (190,329) Mortgage-backed securities - commercial 11,104 (968) 6,540 (597) 17,644 (1,565) Municipal securities 196,419 (26,811) 36,726 (4,602) 233,145 (31,413) U.S. Treasury securities 94,248 (4,122) 13,432 (1,499) 107,680 (5,621) Corporate securities 4,008 (492) 3,179 (321) 7,187 (813) Total $ 646,226 $ (67,665) $ 793,685 $ (167,181) $ 1,439,911 $ (234,846) As of December 31, 2023 and 2022, the Company’s debt securities portfolio consisted of 439 and 503 securities, 370 and 454 of which were in an unrealized loss position, respectively. The majority of the investment portfolio was either government guaranteed, an issuance of a government sponsored entity or highly rated by major credit rating agencies, and the Company has historically not recorded any credit losses associated with these investments. Municipal securities with market values below amortized cost at December 31, 2023 were reviewed for material credit events and/or rating downgrades with individual credit reviews performed. The issuers of these debt securities continue to make timely principal and interest payments under the contractual terms of the securities and the issuers will continue to be observed as a part of the Company’s ongoing credit monitoring. As such, as of December 31, 2023 and 2022, it was determined that all AFS debt securities that experienced a decline in fair value below amortized cost basis were due to noncredit-related factors. Further, it is not likely that the Company will be required to sell the securities before recovery of their amortized cost basis. Therefore, there was no allowance for credit losses recognized on AFS debt securities as of December 31, 2023 or 2022. Periodically, AFS debt securities may be sold or the composition of the portfolio realigned to improve yields, quality or marketability, or to implement changes in investment or asset/liability strategy, including maintaining collateral requirements and raising funds for liquidity purposes or preparing for anticipated changes in market interest rates. The amortized cost and fair value of debt securities by contractual maturity as of December 31, 2023 and 2022 are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2023 2022 Available-for-sale Available-for-sale Amortized cost Fair value Amortized cost Fair value Due in one year or less $ 64,776 $ 64,279 $ 4,277 $ 4,225 Due in one to five years 75,996 71,801 161,556 152,181 Due in five to ten years 51,162 49,630 61,290 57,859 Due in over ten years 391,270 372,331 234,720 205,084 583,204 558,041 461,843 419,349 Mortgage-backed securities - residential 1,057,389 896,971 1,224,522 1,034,193 Mortgage-backed securities - commercial 18,186 16,961 19,209 17,644 Total debt securities $ 1,658,779 $ 1,471,973 $ 1,705,574 $ 1,471,186 Sales and other dispositions of AFS debt securities were as follows: Years Ended December 31, 2023 2022 2021 Proceeds from sales $ 100,463 $ 1,218 $ 8,855 Proceeds from maturities, prepayments and calls 128,206 204,748 296,256 Gross realized gains 45 4 127 Gross realized losses 14,119 3 1 Equity Securities As of December 31, 2022, the Company had $2,990 in marketable equity securities recorded at fair value. There were no such securities outstanding as of December 31, 2023. The Company had equity securities without readily determinable market value included in “Other assets” on the consolidated balance sheets with carrying amounts of $25,191 and $22,496 at December 31, 2023 and 2022, respectively. Additionally, the Company had $34,190 and $58,641 of FHLB stock carried at cost at December 31, 2023 and 2022, respectively, included separately from the other equity securities discussed above. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses on Loans HFI | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Loans and Allowance for Credit Losses on Loans HFI | Loans and allowance for credit losses on loans HFI Loans outstanding as of December 31, 2023 and 2022, by class of financing receivable are as follows: December 31, 2023 2022 Commercial and industrial $ 1,720,733 $ 1,645,783 Construction 1,397,313 1,657,488 Residential real estate: 1-to-4 family mortgage 1,568,552 1,573,121 Residential line of credit 530,912 496,660 Multi-family mortgage 603,804 479,572 Commercial real estate: Owner-occupied 1,232,071 1,114,580 Non-owner occupied 1,943,525 1,964,010 Consumer and other 411,873 366,998 Gross loans 9,408,783 9,298,212 Less: Allowance for credit losses on loans HFI (150,326) (134,192) Net loans $ 9,258,457 $ 9,164,020 As of December 31, 2023 and 2022, $1,030,016 and $909,734, respectively, of qualifying residential mortgage loans (including loans held for sale) and $1,984,007 and $1,763,730, respectively, of qualifying commercial mortgage loans were pledged to the FHLB system securing advances against the Bank’s line of credit. Additionally, as of December 31, 2023 and 2022, qualifying commercial and industrial, construction and consumer loans, of $3,107,495 and $3,118,172, respectively, were pledged to the Federal Reserve under the Borrower-in-Custody program. The amortized cost of loans HFI on the consolidated balance sheets exclude accrued interest receivable as the Company presents accrued interest receivable separately on the balance sheet. As of December 31, 2023 and 2022, accrued interest receivable on loans HFI amounted to $43,776 and $38,507, respectively. Credit Quality - Commercial Type Loans The Company categorizes commercial loan types into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans that share similar risk characteristics collectively. Loans that do not share similar risk characteristics are evaluated individually. The Company uses the following definitions for risk ratings: Pass. Loans rated Pass include those that are adequately collateralized performing loans which management believes do not have conditions that have occurred or may occur that would result in the loan being downgraded into an inferior category. The Pass category also includes commercial loans rated as Watch, which include those that management believes have conditions that have occurred, or may occur, which could result in the loan being downgraded to an inferior category. Special Mention. Loans rated Special Mention are those that have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Management does not believe there will be a loss of principal or interest. These loans require intensive servicing and may possess more than normal credit risk. Classified. Loans included in the Classified category include loans rated as Substandard and Doubtful. Loans rated as Substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Also included in this category are loans classified as Doubtful, which have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weakness or weaknesses make collection or liquidation in full, based on currently existing facts, conditions, and values, highly questionable and improbable. Risk ratings are updated on an ongoing basis and are subject to change by continuous loan monitoring processes. The following tables present the credit quality of the Company's commercial type loan portfolio as of December 31, 2023 and 2022 and the gross charge-offs for the year ended December 31, 2023 by year of origination. Revolving loans are presented separately. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for the purposes of the tables below. Effective January 1, 2023, the Company adopted the accounting guidance in ASU 2022-02 which requires the presentation of gross charge-offs by year of origination. The Company prospectively adopted ASU 2022-02; therefore, prior period activity of gross charge-offs by year of origination are not included in the below tables. As of and for the year ended December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Pass $ 225,734 $ 255,921 $ 151,492 $ 39,897 $ 70,302 $ 73,415 $ 839,918 $ 1,656,679 Special Mention — 17,947 3,083 — 151 108 7,549 28,838 Classified 457 4,253 3,075 3,027 254 6,129 18,021 35,216 Total 226,191 278,121 157,650 42,924 70,707 79,652 865,488 1,720,733 Current-period gross 14 7 201 22 — 87 131 462 Construction Pass 179,929 677,387 148,312 46,697 39,140 49,954 208,491 1,349,910 Special Mention 1 4,659 2,943 1,202 — 690 12,000 21,495 Classified — 2,349 1,484 6,620 — — 15,455 25,908 Total 179,930 684,395 152,739 54,519 39,140 50,644 235,946 1,397,313 Current-period gross — — — — — — — — Residential real estate: Multi-family mortgage Pass 29,982 151,495 223,889 92,745 29,933 43,479 31,209 602,732 Special Mention — — — — — — — — Classified — — — — — 1,072 — 1,072 Total 29,982 151,495 223,889 92,745 29,933 44,551 31,209 603,804 Current-period gross — — — — — — — — Commercial real estate: Owner occupied Pass 118,030 261,196 231,241 115,397 151,146 281,253 53,970 1,212,233 Special Mention — 1,297 1,827 — 154 2,617 — 5,895 Classified — 6,305 16 — 760 5,789 1,073 13,943 Total 118,030 268,798 233,084 115,397 152,060 289,659 55,043 1,232,071 Current-period gross — — 144 — — — — 144 Non-owner occupied Pass 47,026 474,560 478,878 117,429 178,448 580,168 43,577 1,920,086 Special Mention — — 3,975 — — 10,435 — 14,410 Classified — — 1,001 — 381 7,647 — 9,029 Total 47,026 474,560 483,854 117,429 178,829 598,250 43,577 1,943,525 Current-period gross — — — — — — — — Total commercial loan types Pass 600,701 1,820,559 1,233,812 412,165 468,969 1,028,269 1,177,165 6,741,640 Special Mention 1 23,903 11,828 1,202 305 13,850 19,549 70,638 Classified 457 12,907 5,576 9,647 1,395 20,637 34,549 85,168 Total $ 601,159 $ 1,857,369 $ 1,251,216 $ 423,014 $ 470,669 $ 1,062,756 $ 1,231,263 $ 6,897,446 Current-period gross $ 14 $ 7 $ 345 $ 22 $ — $ 87 $ 131 $ 606 As of December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Pass $ 396,643 $ 204,000 $ 67,231 $ 90,894 $ 39,780 $ 62,816 $ 762,717 $ 1,624,081 Special Mention 125 7 — 160 143 771 2,520 3,726 Classified 65 823 1,916 1,651 273 6,913 6,335 17,976 Total 396,833 204,830 69,147 92,705 40,196 70,500 771,572 1,645,783 Construction Pass 682,885 495,723 142,233 84,599 17,360 44,326 188,906 1,656,032 Special Mention — — 15 — — 707 — 722 Classified 80 309 — — — 345 — 734 Total 682,965 496,032 142,248 84,599 17,360 45,378 188,906 1,657,488 Residential real estate: Multi-family mortgage Pass 142,912 147,168 96,819 33,547 6,971 37,385 13,604 478,406 Special Mention — — — — — — — — Classified — — — — — 1,166 — 1,166 Total 142,912 147,168 96,819 33,547 6,971 38,551 13,604 479,572 Commercial real estate: Owner occupied Pass 237,862 223,883 110,748 148,405 66,101 246,414 57,220 1,090,633 Special Mention 101 683 — 168 2,225 1,258 5,000 9,435 Classified — 1,293 224 4,589 1,276 7,018 112 14,512 Total 237,963 225,859 110,972 153,162 69,602 254,690 62,332 1,114,580 Non-owner occupied Pass 467,360 440,319 131,497 159,205 210,752 473,607 60,908 1,943,648 Special Mention — — — — 82 2,459 — 2,541 Classified — 2,258 — 146 3,270 12,147 — 17,821 Total 467,360 442,577 131,497 159,351 214,104 488,213 60,908 1,964,010 Total commercial loan types Pass 1,927,662 1,511,093 548,528 516,650 340,964 864,548 1,083,355 6,792,800 Special Mention 226 690 15 328 2,450 5,195 7,520 16,424 Classified 145 4,683 2,140 6,386 4,819 27,589 6,447 52,209 Total $ 1,928,033 $ 1,516,466 $ 550,683 $ 523,364 $ 348,233 $ 897,332 $ 1,097,322 $ 6,861,433 Credit Quality - Consumer Type Loans For consumer and residential loan classes, the Company primarily evaluates credit quality based on delinquency and accrual status of the loan, credit documentation and by payment activity. The performing or nonperforming status is updated on an on-going basis dependent upon improvement and deterioration in credit quality. The following tables present the credit quality by classification (performing or nonperforming) of the Company's consumer type loan portfolio as of December 31, 2023 and 2022 and the gross charge-offs for the year ended December 31, 2023 by year of origination. Revolving loans are presented separately. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for the purposes of the tables below. Effective January 1, 2023, the Company adopted the accounting guidance in ASU 2022-02 which requires the presentation of gross charge-offs by year of origination. The Company prospectively adopted ASU 2022-02; therefore, prior period balances for gross charge-offs by year of origination are not included in the below tables. As of and for the year ended December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Residential real estate: 1-to-4 family mortgage Performing $ 198,537 $ 500,628 $ 399,338 $ 145,484 $ 81,905 $ 226,587 $ — $ 1,552,479 Nonperforming 76 2,565 4,026 3,846 690 4,870 — 16,073 Total 198,613 503,193 403,364 149,330 82,595 231,457 — 1,568,552 Current-period gross — 18 — 4 — 24 — 46 Residential line of credit Performing — — — — — — 528,439 528,439 Nonperforming — — — — — — 2,473 2,473 Total — — — — — — 530,912 530,912 Current-period gross — — — — — — — — Consumer and other Performing 104,399 91,557 45,187 34,928 24,040 93,833 6,890 400,834 Nonperforming 528 1,025 2,562 1,819 1,264 3,841 — 11,039 Total 104,927 92,582 47,749 36,747 25,304 97,674 6,890 411,873 Current-period gross 1,463 564 139 201 110 372 2 2,851 Total consumer type loans Performing 302,936 592,185 444,525 180,412 105,945 320,420 535,329 2,481,752 Nonperforming 604 3,590 6,588 5,665 1,954 8,711 2,473 29,585 Total $ 303,540 $ 595,775 $ 451,113 $ 186,077 $ 107,899 $ 329,131 $ 537,802 $ 2,511,337 Current-period gross $ 1,463 $ 582 $ 139 $ 205 $ 110 $ 396 $ 2 $ 2,897 As of December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Residential real estate: 1-to-4 family mortgage Performing $ 568,210 $ 448,401 $ 160,715 $ 93,548 $ 68,113 $ 211,019 $ — $ 1,550,006 Nonperforming 1,227 5,163 5,472 1,778 2,044 7,431 — 23,115 Total 569,437 453,564 166,187 95,326 70,157 218,450 — 1,573,121 Residential line of credit Performing — — — — — — 495,129 495,129 Nonperforming — — — — — — 1,531 1,531 Total — — — — — — 496,660 496,660 Consumer and other Performing 118,637 56,779 41,008 29,139 26,982 82,318 4,175 359,038 Nonperforming 166 1,396 1,460 906 1,507 2,525 — 7,960 Total 118,803 58,175 42,468 30,045 28,489 84,843 4,175 366,998 Total consumer type loans Performing 686,847 505,180 201,723 122,687 95,095 293,337 499,304 2,404,173 Nonperforming 1,393 6,559 6,932 2,684 3,551 9,956 1,531 32,606 Total $ 688,240 $ 511,739 $ 208,655 $ 125,371 $ 98,646 $ 303,293 $ 500,835 $ 2,436,779 Nonaccrual and Past Due Loans Nonperforming loans include loans that are no longer accruing interest (nonaccrual loans) and loans past due ninety or more days and still accruing interest. The following tables represent an analysis of the aging by class of financing receivable as of December 31, 2023 and 2022: December 31, 2023 30-89 days 90 days or Nonaccrual Loans current Total Commercial and industrial $ 732 $ — $ 21,730 $ 1,698,271 $ 1,720,733 Construction 6,579 165 2,872 1,387,697 1,397,313 Residential real estate: 1-to-4 family mortgage 21,768 9,355 6,718 1,530,711 1,568,552 Residential line of credit 2,464 1,337 1,136 525,975 530,912 Multi-family mortgage — — 32 603,772 603,804 Commercial real estate: Owner occupied 480 — 3,188 1,228,403 1,232,071 Non-owner occupied 4,059 — 3,351 1,936,115 1,943,525 Consumer and other 10,961 1,836 9,203 389,873 411,873 Total $ 47,043 $ 12,693 $ 48,230 $ 9,300,817 $ 9,408,783 December 31, 2022 30-89 days 90 days or Nonaccrual Loans current on payments and accruing interest Total Commercial and industrial $ 1,650 $ 136 $ 1,307 $ 1,642,690 $ 1,645,783 Construction 1,246 — 389 1,655,853 1,657,488 Residential real estate: 1-to-4 family mortgage 15,470 16,639 6,476 1,534,536 1,573,121 Residential line of credit 772 131 1,400 494,357 496,660 Multi-family mortgage — — 42 479,530 479,572 Commercial real estate: Owner occupied 1,948 — 5,410 1,107,222 1,114,580 Non-owner occupied 102 — 5,956 1,957,952 1,964,010 Consumer and other 10,108 1,509 6,451 348,930 366,998 Total $ 31,296 $ 18,415 $ 27,431 $ 9,221,070 $ 9,298,212 The following tables provide the amortized cost basis of loans on nonaccrual status, as well as any related allowance and interest income as of and for the years ended December 31, 2023 and 2022 by class of financing receivable. December 31, 2023 Nonaccrual Nonaccrual Related Year to date Interest Income Commercial and industrial $ 3,678 $ 18,052 $ 5,011 $ 2,451 Construction 2,267 605 59 335 Residential real estate: 1-to-4 family mortgage 1,444 5,274 103 410 Residential line of credit 685 451 8 141 Multi-family mortgage — 32 1 3 Commercial real estate: Owner occupied 2,920 268 15 514 Non-owner occupied 3,316 35 1 1,221 Consumer and other — 9,203 498 1,053 Total $ 14,310 $ 33,920 $ 5,696 $ 6,128 December 31, 2022 Nonaccrual Nonaccrual Related Year to date Interest Income Commercial and industrial $ 790 $ 517 $ 10 $ 181 Construction — 389 7 28 Residential real estate: 1-to-4 family mortgage 2,834 3,642 78 274 Residential line of credit 1,134 266 4 136 Multi-family mortgage 1 41 1 3 Commercial real estate: Owner occupied 5,200 210 1 232 Non-owner occupied 5,755 201 5 332 Consumer and other — 6,451 327 358 Total $ 15,714 $ 11,717 $ 433 $ 1,544 Accrued interest receivable written off as an adjustment to interest income amounted to $1,094, $1,089, and $804 for the years ended December 31, 2023, 2022, and 2021, respectively. Loan Modifications to Borrowers Experiencing Financial Difficulty Occasionally, the Company may make certain modifications of loans to borrowers experiencing financial difficulty. These modifications may be in the form of an interest rate reduction, a term extension or a combination thereof. Upon the Company's determination that a modified loan has subsequently been deemed uncollectible, the portion of the loan deemed uncollectible is charged off against the allowance for credit losses on loans HFI. The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. During the year ended December 31, 2023, the Company modified three residential mortgage loans with balances totaling $160 and one commercial and industrial loan with a balance of $181 in the form of term extensions for borrowers experiencing financial difficulties. Troubled Debt Restructurings The following disclosure is presented in accordance with GAAP in effect prior to the adoption of ASU 2022-02. The Company has included this disclosure as of December 31, 2022 or for the years ended December 31, 2022 and 2021. Prior to the Company's adoption, the Company accounted for a modification to the contractual terms of a loan that resulted in granting a concession to a borrower experiencing financial difficulties as a TDR. The standard eliminated TDR accounting prospectively for all restructurings occurring on or after January 1, 2023. Loans that were restructured in a TDR prior to the Company's adoption will continue to be accounted for under the historical TDR accounting until the loan is paid off, liquidated or subsequently modified. See Note 1, “Basis of presentation” for more information on the Company's adoption of ASU 2022-02. The following table presents the financial effect of TDRs recorded during the periods indicated: Year Ended December 31, 2022 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 3 $ 612 $ 522 $ — Commercial real estate: Residential real estate: 1-to-4 family mortgage 3 391 707 — Residential line of credit 1 49 49 — Consumer and other 2 23 23 — Total 9 $ 1,075 $ 1,301 $ — Year Ended December 31, 2021 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 8 $ 15,430 $ 15,430 $ 446 Construction — — — — Commercial real estate: Owner occupied 7 5,209 5,209 — Non-owner occupied 1 11,997 11,997 — Residential real estate: 1-to-4 family mortgage 3 945 945 — Residential line of credit 3 485 485 — Multi-family mortgage 1 49 49 — Total 23 $ 34,115 $ 34,115 $ 446 Troubled debt restructurings for which there was a payment default within twelve months following the modification totaled $304 during both the years ended December 31, 2022 and 2021. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. Collateral-Dependent Loans For loans for which the repayment (based on the Company's assessment) is expected to be provided substantially through the operation or sale of collateral and the borrower is experiencing financial difficulty, the following tables present the loans and the corresponding individually assessed allowance for credit losses by class of financing receivable. Significant changes in individually assessed reserves are due to changes in the valuation of the underlying collateral in addition to changes in accrual and past due status. December 31, 2023 Type of Collateral Real Estate Farmland Business Assets Total Individually assessed allowance for credit loss Commercial and industrial $ — $ 363 $ 20,599 $ 20,962 $ 4,946 Construction 8,224 — — 8,224 30 Residential real estate: 1-to-4 family mortgage 5,317 — — 5,317 129 Residential line of credit 1,245 — — 1,245 10 Commercial real estate: Owner occupied 1,975 1,160 — 3,135 — Non-owner occupied 3,316 — — 3,316 — Consumer and other 112 — — 112 21 Total $ 20,189 $ 1,523 $ 20,599 $ 42,311 $ 5,136 December 31, 2022 Type of Collateral Real Estate Business Assets Total Individually assessed allowance for credit loss Commercial and industrial $ 2,596 $ — $ 2,596 $ — Residential real estate: 1-to-4 family mortgage 4,467 — 4,467 194 Residential line of credit 1,135 — 1,135 — Commercial real estate: Owner occupied 5,424 — 5,424 — Non-owner occupied 5,755 — 5,755 — Consumer and other 134 — 134 — Total $ 19,511 $ — $ 19,511 $ 194 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and equipment Premises and equipment and related accumulated depreciation as of December 31, 2023 and 2022, are as follows: 2023 2022 Land $ 35,092 $ 32,985 Premises 112,092 109,277 Furniture, fixtures and equipment 25,734 49,203 Leasehold improvements 28,271 19,001 Construction in process 4,943 10,230 Finance lease 1,256 1,367 207,388 222,063 Less: accumulated depreciation and amortization (51,657) (75,747) Total premises and equipment $ 155,731 $ 146,316 Depreciation and amortization expense was $9,797, $7,554, and $7,411 for the years ended December 31, 2023, 2022, and 2021, respectively. |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2023 | |
Real Estate [Abstract] | |
Other Real Estate Owned | Other real estate owned The amount reported as other real estate owned includes property acquired through foreclosure in addition to excess facilities held for sale and is carried at the lower of the carrying amount of the underlying loan or the fair value of the real estate less costs to sell. The following table summarizes the other real estate owned for the years ended December 31, 2023, 2022, and 2021: Years Ended December 31, 2023 2022 2021 Balance at beginning of period $ 5,794 $ 9,777 $ 12,111 Transfers from loans 2,736 1,437 5,262 Transfers to other assets (75) — — Transfers to premises and equipment — (351) — Proceeds from sale of other real estate owned (6,083) (4,955) (9,396) Gain on sale of other real estate owned 835 328 3,248 Loans provided for sales of other real estate owned — — (704) Write-downs and partial liquidations (15) (442) (744) Balance at end of period $ 3,192 $ 5,794 $ 9,777 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and intangible assets Goodwill represents the excess of the cost of a business combination over the fair value of the net assets acquired. The carrying amount of goodwill was $242,561 at both December 31, 2023 and 2022. The Company’s policy is to assess goodwill for impairment at the reporting unit level on an annual basis or more frequently, if an event occurs or circumstances change which indicate that the fair value of a reporting unit is below its carrying amount. Impairment is the condition that exists when the carrying amount of the reporting unit exceeds the fair value of that reporting unit. In accordance with GAAP and due to the passage of time since the last quantitative analysis, the Company elected to perform a quantitative assessment for the year ended December 31, 2023. The assessment indicated no impairment of goodwill for either of the reporting units. Core deposit and other intangibles include core deposit intangibles and a customer base trust intangible. The composition of core deposit and other intangibles, which excludes fully amortized intangibles, as of December 31, 2023 and 2022 is as follows: Core deposit and other intangibles Gross Carrying Amount Accumulated Amortization Net Carrying Amount December 31, 2023 Core deposit intangible $ 59,835 $ (51,699) $ 8,136 Customer base trust intangible 1,600 (1,027) 573 Total core deposit and other intangibles $ 61,435 $ (52,726) $ 8,709 December 31, 2022 Core deposit intangible $ 59,835 $ (48,200) $ 11,635 Customer base trust intangible 1,600 (867) 733 Total core deposit and other intangibles $ 61,435 $ (49,067) $ 12,368 Amortization of core deposit and other intangibles totaled $3,659, $4,585, and $5,473 for the years ended December 31, 2023, 2022, and 2021, respectively. The estimated aggregate future amortization expense of core deposit and other intangibles is as follows: 2024 $ 2,946 2025 2,306 2026 1,563 2027 1,080 2028 572 Thereafter 242 $ 8,709 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases As of December 31, 2023, the Company was the lessee in 54 operating leases and 1 finance lease of certain branch, mortgage and operations locations with original terms greater than one year. Many leases include options to renew, with terms that can extend the lease up to an additional 20 years or more. Certain lease agreements contain provisions to periodically adjust rental payments for inflation. Renewal options that management is reasonably certain to renew and fixed rent escalations are included in the right-of-use asset and lease liability. Information related to the Company's leases is presented below as of December 31, 2023 and 2022: December 31, Classification 2023 2022 Right-of-use assets: Operating leases Operating lease right-of-use assets $ 54,295 $ 60,043 Finance leases Premises and equipment, net 1,256 1,367 Total right-of-use assets $ 55,551 $ 61,410 Lease liabilities: Operating leases Operating lease liabilities $ 67,643 $ 69,754 Finance leases Borrowings 1,326 1,420 Total lease liabilities $ 68,969 $ 71,174 Weighted average remaining lease term (in years) - 11.6 12.1 Weighted average remaining lease term (in years) - 11.4 12.4 Weighted average discount rate - operating 3.39 % 3.08 % Weighted average discount rate - finance 1.76 % 1.76 % The components of total lease expense included in the consolidated statements of income were as follows: Years Ended December 31, Classification 2023 2022 2021 Operating lease costs: Amortization of right-of-use asset Occupancy and equipment $ 8,516 $ 8,441 $ 7,636 Short-term lease cost Occupancy and equipment 540 526 427 Variable lease cost Occupancy and equipment 1,205 1,078 1,003 Loss (gain) on lease modifications (1) 1,770 346 (805) Finance lease costs: Interest on lease liabilities Interest expense on borrowings 24 28 25 Amortization of right-of-use asset Occupancy and equipment 111 120 101 Sublease income Occupancy and equipment (957) (993) (573) Total lease cost $ 11,209 $ 9,546 $ 7,814 (1) Loss (gain) on lease modifications and terminations is included in “ Occupancy and equipment ” within the Company's consolidated statements of income for the years ended December 31, 2023 and 2021. For the year ended December 31, 2022, loss (gain) on lease modifications and terminations of $364 and $(18) is included in “ Mortgage restructuring expense ” and “ Occupancy and equipment, ” respectively, within the Company's consolidated statements of income. During the year ended December 31, 2023, the Company recorded $1,770 of loss on lease modifications and terminations primarily related to the closure of two branch locations. During the year ended December 31, 2022, the Company recorded $364 of loss on lease modifications and terminations related to vacating two locations associated with restructuring the Company's Mortgage segment and recorded gains of $18 related to early lease terminations and modifications on other vacated locations. During the year ended December 31, 2021, the Company recorded $805 in gains on lease modifications and terminations on certain vacated locations that were consolidated as a result of previous business combinations. The Company does not separate lease and non-lease components and instead elects to account for them as a single lease component. Variable lease cost primarily represents variable payments such as common area maintenance, utilities, and property taxes. A maturity analysis of operating and finance lease liabilities and a reconciliation of undiscounted cash flows to lease liabilities as of December 31, 2023 is as follows: Operating Finance Leases Lease Lease payments due: December 31, 2024 $ 8,453 $ 120 December 31, 2025 8,448 121 December 31, 2026 8,328 123 December 31, 2027 7,878 125 December 31, 2028 6,979 127 Thereafter 44,147 850 Total undiscounted future minimum lease payments 84,233 1,466 Less: imputed interest (16,590) (140) Lease liabilities $ 67,643 $ 1,326 |
Leases | Leases As of December 31, 2023, the Company was the lessee in 54 operating leases and 1 finance lease of certain branch, mortgage and operations locations with original terms greater than one year. Many leases include options to renew, with terms that can extend the lease up to an additional 20 years or more. Certain lease agreements contain provisions to periodically adjust rental payments for inflation. Renewal options that management is reasonably certain to renew and fixed rent escalations are included in the right-of-use asset and lease liability. Information related to the Company's leases is presented below as of December 31, 2023 and 2022: December 31, Classification 2023 2022 Right-of-use assets: Operating leases Operating lease right-of-use assets $ 54,295 $ 60,043 Finance leases Premises and equipment, net 1,256 1,367 Total right-of-use assets $ 55,551 $ 61,410 Lease liabilities: Operating leases Operating lease liabilities $ 67,643 $ 69,754 Finance leases Borrowings 1,326 1,420 Total lease liabilities $ 68,969 $ 71,174 Weighted average remaining lease term (in years) - 11.6 12.1 Weighted average remaining lease term (in years) - 11.4 12.4 Weighted average discount rate - operating 3.39 % 3.08 % Weighted average discount rate - finance 1.76 % 1.76 % The components of total lease expense included in the consolidated statements of income were as follows: Years Ended December 31, Classification 2023 2022 2021 Operating lease costs: Amortization of right-of-use asset Occupancy and equipment $ 8,516 $ 8,441 $ 7,636 Short-term lease cost Occupancy and equipment 540 526 427 Variable lease cost Occupancy and equipment 1,205 1,078 1,003 Loss (gain) on lease modifications (1) 1,770 346 (805) Finance lease costs: Interest on lease liabilities Interest expense on borrowings 24 28 25 Amortization of right-of-use asset Occupancy and equipment 111 120 101 Sublease income Occupancy and equipment (957) (993) (573) Total lease cost $ 11,209 $ 9,546 $ 7,814 (1) Loss (gain) on lease modifications and terminations is included in “ Occupancy and equipment ” within the Company's consolidated statements of income for the years ended December 31, 2023 and 2021. For the year ended December 31, 2022, loss (gain) on lease modifications and terminations of $364 and $(18) is included in “ Mortgage restructuring expense ” and “ Occupancy and equipment, ” respectively, within the Company's consolidated statements of income. During the year ended December 31, 2023, the Company recorded $1,770 of loss on lease modifications and terminations primarily related to the closure of two branch locations. During the year ended December 31, 2022, the Company recorded $364 of loss on lease modifications and terminations related to vacating two locations associated with restructuring the Company's Mortgage segment and recorded gains of $18 related to early lease terminations and modifications on other vacated locations. During the year ended December 31, 2021, the Company recorded $805 in gains on lease modifications and terminations on certain vacated locations that were consolidated as a result of previous business combinations. The Company does not separate lease and non-lease components and instead elects to account for them as a single lease component. Variable lease cost primarily represents variable payments such as common area maintenance, utilities, and property taxes. A maturity analysis of operating and finance lease liabilities and a reconciliation of undiscounted cash flows to lease liabilities as of December 31, 2023 is as follows: Operating Finance Leases Lease Lease payments due: December 31, 2024 $ 8,453 $ 120 December 31, 2025 8,448 121 December 31, 2026 8,328 123 December 31, 2027 7,878 125 December 31, 2028 6,979 127 Thereafter 44,147 850 Total undiscounted future minimum lease payments 84,233 1,466 Less: imputed interest (16,590) (140) Lease liabilities $ 67,643 $ 1,326 |
Mortgage Servicing Rights
Mortgage Servicing Rights | 12 Months Ended |
Dec. 31, 2023 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Mortgage Servicing Rights | Mortgage servicing rights Changes in the Company’s mortgage servicing rights were as follows for the years ended December 31, 2023, 2022, and 2021: Years Ended December 31, 2023 2022 2021 Carrying value at beginning of period $ 168,365 $ 115,512 $ 79,997 Capitalization 7,192 20,809 39,018 Change in fair value: Due to payoffs/paydowns (12,327) (16,012) (30,583) Due to change in valuation inputs or assumptions 1,019 48,056 27,080 Carrying value at end of period $ 164,249 $ 168,365 $ 115,512 The following table summarizes servicing income and expense, which are included in “Mortgage banking income” and “Other noninterest expense,” respectively, in the consolidated statements of income for the years ended December 31, 2023, 2022, and 2021: Years Ended December 31, 2023 2022 2021 Servicing income: Servicing income $ 30,263 $ 30,763 $ 28,890 Change in fair value of mortgage servicing rights (11,308) 32,044 (3,503) Change in fair value of derivative hedging instruments (4,918) (42,143) (8,614) Servicing income 14,037 20,664 16,773 Servicing expenses 8,093 10,259 9,862 Net servicing income $ 5,944 $ 10,405 $ 6,911 Data and key economic assumptions related to the Company’s mortgage servicing rights as of December 31, 2023 and 2022 are as follows: December 31, 2023 2022 Unpaid principal balance of mortgage loans sold and serviced for others $ 10,762,906 $ 11,086,582 Weighted-average prepayment speed (CPR) 6.19 % 5.55 % Estimated impact on fair value of a 10% increase $ (4,616) $ (4,886) Estimated impact on fair value of a 20% increase $ (8,924) $ (9,447) Discount rate 9.62 % 9.10 % Estimated impact on fair value of a 100 bp increase $ (7,637) $ (8,087) Estimated impact on fair value of a 200 bp increase $ (14,624) $ (15,475) Weighted-average coupon interest rate 3.47 % 3.31 % Weighted-average servicing fee (basis points) 27 27 Weighted-average remaining maturity (in months) 334 332 The Company economically hedges the mortgage servicing rights portfolio with various derivative instruments to offset changes in the fair value of the related mortgage servicing rights. See Note 15, “Derivatives” for additional information on these hedging instruments. As of December 31, 2023 and 2022, mortgage escrow deposits totaled $63,591 and $75,612, respectively. |
Other Assets and Other Liabilit
Other Assets and Other Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Other Assets And Other Liabilities [Abstract] | |
Other Assets and Other Liabilities | Other assets and other liabilities Included in other assets are: As of December 31, Other assets 2023 2022 Derivatives (See Note 15) 34,738 48,769 Deferred tax asset (See Note 12) 31,631 42,412 Equity securities without readily determinable market value 25,191 22,496 FHLB lender risk account receivable 20,258 19,737 Mortgage lending receivable 16,344 14,425 Pledged collateral on derivative instruments 14,042 23,325 Prepaid expenses 13,594 9,280 Current income tax receivable 5,930 7,373 Software 525 108 Other assets 41,156 40,031 Total other assets $ 203,409 $ 227,956 Included in other liabilities are: As of December 31, Other liabilities 2023 2022 Derivatives (See Note 15) 38,215 63,229 Accrued interest payable 18,809 8,648 Accrued payroll 18,406 13,592 FHLB lender risk account guaranty 9,746 9,558 Allowance for credit losses on unfunded commitments (See Note 14) 8,770 22,969 Deferred compensation 2,152 2,424 Mortgage buyback reserve (See Note 14) 899 1,621 Other liabilities 45,625 58,932 Total other liabilities $ 142,622 $ 180,973 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
Deposits | Deposits As of December 31, 2023 and 2022, the aggregate amount of time deposits with a minimum denomination greater than $250 was $644,588 and $556,537, respectively. At December 31, 2023, the scheduled maturities of time deposits are as follows: Scheduled maturities of time deposits Due on or before: December 31, 2024 $ 1,279,052 December 31, 2025 309,929 December 31, 2026 14,902 December 31, 2027 10,239 December 31, 2028 6,504 Thereafter 7 Total $ 1,620,633 As of December 31, 2023 and 2022, the Company had $3,475 and $5,725, respectively, of deposit accounts in overdraft status and thus have been reclassified to loans on the accompanying consolidated balance sheets. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings The Company has access to various sources of funds that allow for management of interest rate exposure and liquidity. The following table summarizes the Company's outstanding borrowings and weighted average interest rates as of December 31, 2023 and 2022: Outstanding Balance Weighted Average Interest Rate December 31, December 31, 2023 2022 2023 2022 Securities sold under agreements to repurchase $ 108,764 $ 86,945 5.05 % 3.78 % FHLB advances — 175,000 — % 4.44 % Bank Term Funding Program 130,000 — 4.85 % — % Subordinated debt, net 129,645 126,101 5.52 % 5.31 % Other borrowings 22,555 27,631 0.10 % 0.09 % Total $ 390,964 $ 415,677 Securities sold under agreements to repurchase and federal funds purchased Securities sold under agreements to repurchase are financing arrangements that mature daily. Securities sold under agreements to repurchase totaled $19,328 and $21,945 as of December 31, 2023 and 2022, respectively. The weighted average interest rate of the Company's securities sold under agreements to repurchase was 1.60% and 0.18% as of December 31, 2023 and 2022, respectively. The fair value of securities pledged to secure repurchase agreements may decline. The Company manages this risk by having a policy to pledge securities valued at 100% of the outstanding balance of repurchase agreements. The Bank maintains lines with certain correspondent banks that provide borrowing capacity in the form of federal funds purchased. Federal funds purchased are short-term borrowings that typically mature within one to ninety days. As of December 31, 2023 and 2022, the aggregate total borrowing capacity under these lines amounted to $370,000 and $350,000, respectively. As of December 31, 2023 and 2022, borrowings against these lines (i.e., federal funds purchased) totaled $89,436 and $65,000 with a weighted average rate of 5.79% and 5.00%, respectively. Information concerning securities sold under agreement to repurchase and federal funds purchased is summarized as follows: December 31, 2023 December 31, 2022 Balance at year end $ 108,764 $ 86,945 Average daily balance during the year 29,860 28,497 Average interest rate during the year 2.24 % 0.23 % Maximum month-end balance during the year $ 116,220 $ 86,945 Weighted average interest rate at year-end 5.05 % 3.78 % Federal Home Loan Bank Advances As a member of the FHLB, the Company may utilize advances from the FHLB in order to provide additional liquidity and funding. Under these short-term agreements, the Company maintains a line of credit that as of December 31, 2023 and 2022 had total borrowing capacity of $1,757,702 and $1,270,240, respectively. As of December 31, 2023 and 2022, the Company had qualifying loans pledged as collateral securing these lines amounting to $3,014,023 and $2,673,464, respectively. Overnight cash advances against this line totaled $175,000 as of December 31, 2022. There were no FHLB advances outstanding as of December 31, 2023. Information concerning FHLB advances as of or for the years ended December 31, 2023 and 2022 is summarized within the table below. December 31, 2023 December 31, 2022 Balance at year end $ — $ 175,000 Average daily balance during the year 28,973 171,142 Average interest rate during the year 5.13 % 3.26 % Maximum month-end balance during the year $ 125,000 $ 540,000 Weighted average interest rate at year-end — % 4.44 % Bank Term Funding Program In March 2023, the Federal Reserve established the Bank Term Funding Program to make available funding to eligible depository institutions in order to help ensure they have the ability to meet the needs of their depositors following the March 2023 high-profile bank failures. The program allows for advances for up to one year secured by eligible high-quality securities at par value extended at the one-year overnight index swap rate, plus 10 basis points, as of the day the advance is made. The interest rate is fixed for the term of the advance and there are no prepayment penalties. At December 31, 2023, the Company had outstanding borrowings of $130,000 under the BTFP at a borrowing rate of 4.85% and a maturity date of December 26, 2024. Information concerning the Bank Term Funding Program as of or for the year ended December 31, 2023 is summarized within the table below. December 31, 2023 Balance at year end $ 130,000 Average daily balance during the year 1,781 Average interest rate during the year 4.85 % Maximum month-end balance during the year $ 130,000 Weighted average interest rate at year-end 4.85 % Subordinated Debt During the year ended December 31, 2003, two separate trusts were formed by the Company, which issued $9,000 and $21,000 of floating rate trust preferred securities as part of a pooled offering of such securities. The Company issued junior subordinated debentures of $9,280, which included proceeds of common securities purchased by the Company of $280, and junior subordinated debentures of $21,650, which included proceeds of common securities of $650. The trusts were created for the sole purpose of issuing 30-year capital trust preferred securities to fund the purchase of junior subordinated debentures issued by the Company. Both issuances were to the trusts in exchange for the proceeds of the securities offerings, which represent the sole asset of the trusts. Additionally, during the year ended December 31, 2020, the Company placed $100,000 of ten year fixed-to-floating rate subordinated notes, maturing September 1, 2030. During the year ended December 31, 2022, the Company began mitigating interest rate exposure associated with these notes through the use of fair value hedging instruments. See Note 15, "Derivatives" for additional details related to these instruments. Further information related to the Company's subordinated debt as of December 31, 2023 is detailed below: Name Year Established Maturity Call Date Total Debt Outstanding Interest Rate Coupon Structure Subordinated Debt issued by Trust Preferred Securities: FBK Trust I (1) 2003 06/09/2033 6/09/2008 $ 9,280 8.84% 3-month SOFR plus 3.51% FBK Trust II (1) 2003 06/26/2033 6/26/2008 21,650 8.77% 3-month SOFR plus 3.41% Additional Subordinated Debt: FBK Subordinated Debt I (2) 2020 09/01/2030 9/1/2025 100,000 4.50% Semi-annual Fixed (3) Unamortized debt issuance costs (612) Fair Value Hedge (See Note 15, “ Derivatives ” ) (673) Total Subordinated Debt, net $ 129,645 (1) The Company classifies $30,000 of the trusts' subordinated debt as Tier 1 capital. (2) The Company classified the issuance, net of unamortized issuance costs and the associated fair value hedge as Tier 2 capital, which will be phased out 20% per year in the final five years before maturity. (3) Beginning on September 1, 2025 the coupon structure migrates to the 3-month SOFR plus a spread of 439 basis points through the end of the term of the debenture. Other Borrowings As of December 31, 2023 and 2022, other borrowings included a finance lease liability amounting to $1,326 and $1,420, respectively. Additionally, as of December 31, 2023 and 2022, the Company had $21,229 and $26,211, respectively, of government guaranteed GNMA loans that were greater than 90 days delinquent under their contractual terms that were eligible for optional repurchase and recorded in both loans HFS and other borrowings. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes An allocation of federal and state income taxes between current and deferred portions is presented below: Years Ended December 31, 2023 2022 2021 Current $ 31,467 $ 22,451 $ 21,980 Deferred (1,415) 12,552 30,770 Total $ 30,052 $ 35,003 $ 52,750 The following table presents a reconciliation of federal income taxes at the statutory federal rate of 21% to the Company's effective tax rates for the years ended December 31, 2023, 2022, and 2021: Years Ended December 31, 2023 2022 2021 Federal taxes calculated at statutory rate $ 31,561 21.0 % $ 33,510 21.0 % $ 51,041 21.0 % (Decrease) increase resulting from: State taxes, net of federal benefit (158) (0.1) % 3,845 2.4 % 8,788 3.5 % Expense (benefit) from equity based compensation 219 0.1 % (392) (0.2) % (2,719) (1.1) % Municipal interest income, net of interest disallowance (1,804) (1.2) % (1,774) (1.1) % (1,818) (0.8) % Bank-owned life insurance (393) (0.3) % (305) (0.2) % (324) (0.1) % NOL Carryback provision under CARES Act — — % — — % (3,424) (1.4) % Offering costs — — % — — % 123 0.1 % Section 162(m) limitation 244 0.2 % 241 0.1 % 1,381 0.6 % Other 383 0.3 % (122) (0.1) % (298) (0.1) % Income tax expense, as reported $ 30,052 20.0 % $ 35,003 21.9 % $ 52,750 21.7 % The Company is subject to Internal Revenue Code Section 162(m), which limits the deductibility of compensation paid to certain individuals. It is the Company’s policy to apply the Section 162(m) limitations to stock-based compensation first followed by cash compensation. As a result of the vesting of this stock-based compensation and cash compensation paid to date, the Company has disallowed a portion of its compensation paid to the applicable individuals. The components of the deferred tax assets and liabilities at December 31, 2023 and 2022, are as follows: December 31, 2023 2022 Deferred tax assets: Allowance for credit losses $ 39,228 $ 38,646 Operating lease liabilities 24,607 25,882 Net operating loss 805 1,088 Amortization of core deposit intangibles 1,135 653 Deferred compensation 7,433 5,245 Unrealized loss on debt securities 48,714 61,004 Other assets 4,863 6,691 Subtotal 126,785 139,209 Deferred tax liabilities: FHLB stock dividends $ (263) $ (484) Operating leases - right of use assets (21,312) (24,478) Depreciation (5,996) (7,274) Unrealized gain on equity securities (2,122) (2,287) Unrealized gain on cash flow hedges (151) (327) Mortgage servicing rights (42,797) (43,869) Goodwill (17,995) (15,869) Other liabilities (4,518) (2,209) Subtotal (95,154) (96,797) Net deferred tax assets $ 31,631 $ 42,412 |
Dividend Restrictions
Dividend Restrictions | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |
Dividend Restrictions | Dividend restrictions Due to regulations of the Tennessee Department of Financial Institutions, the Bank may not declare dividends in any calendar year that exceeds the total of its net income of that year combined with its retained net income of the preceding two years without the prior approval of the TDFI Commissioner. Based upon this regulation, $218,415 and $161,251 was available for payment of dividends without such prior approval as of December 31, 2023 and 2022, respectively. In addition, dividends paid by the Bank to the Company would be prohibited if the effect thereof would cause the Bank’s capital to be reduced below applicable minimum capital requirements. During both the years ended December 31, 2023 and 2022, there were $49,000 in cash dividends declared and paid from the Bank to the Company. During the year ended December 31, 2021, there were $122,500 in cash dividends declared and paid from the Bank to the Company. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and contingencies Commitments to extend credit and letters of credit Some financial instruments, such as loan commitments, credit lines and letters of credit, are issued to meet customer financing needs. These unfunded loan commitment agreements provide credit or support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. The same credit and underwriting policies the Company uses to evaluate and underwrite loans are also used to originate unfunded loan commitments, including obtaining collateral at exercise of the commitment. These unfunded loan commitments are only recorded in the consolidated financial statements when drawn upon and many expire without being used. The Company's maximum off-balance sheet exposure to credit loss from these unfunded loan commitments is represented by the contractual amount of these instruments. December 31, 2023 2022 Commitments to extend credit, excluding interest rate lock commitments $ 2,906,016 $ 3,563,982 Letters of credit 77,055 71,250 Balance at end of period $ 2,983,071 $ 3,635,232 As of December 31, 2023 and 2022, unfunded loan commitments included above with floating interest rates totaled $2,459,669 and $2,961,683, respectively. As part of its credit loss process, the Company estimates expected credit losses on its unfunded loan commitments under the CECL methodology. When applying this methodology, the Company considers the likelihood that funding will occur, the contractual period of exposure to credit loss, the risk of loss, historical loss experience, and current conditions along with expectations of future economic conditions. The table below presents activity within the allowance for credit losses on unfunded loan commitments included in accrued expenses and other liabilities on the Company's consolidated balance sheets: Years Ended December 31, 2023 2022 2021 Balance at beginning of period $ 22,969 $ 14,380 $ 16,378 (Reversal of) provision for credit losses on unfunded commitments (14,199) 8,589 (1,998) Balance at end of period $ 8,770 $ 22,969 $ 14,380 Loan repurchases or indemnifications In connection with the sale of mortgage loans to third-party private investors or government sponsored agencies, the Company makes representations and warranties as to the propriety of its origination activities, which are typical and customary to these types of transactions. Occasionally, the investors require the Company to repurchase loans sold to them under the terms of the warranties. When this happens, the loans are recorded at fair value in loans held for investment. The total principal amount of loans repurchased (or indemnified for) was $8,552, $7,834 and $7,364 for years ended December 31, 2023, 2022, and 2021, respectively. The Company has established a reserve associated with potential loan repurchases. The following table summarizes the activity in the repurchase reserve included in “Accrued expenses and other liabilities” on the Company's consolidated balance sheets: Years Ended December 31, 2023 2022 2021 Balance at beginning of period $ 1,621 $ 4,802 $ 5,928 Provision for loan repurchases or indemnifications (650) (2,989) (766) Losses on loans repurchased or indemnified (72) (192) (360) Balance at end of period $ 899 $ 1,621 $ 4,802 Legal Proceedings Various legal claims arise from time to time in the normal course of business, which, in the opinion of management, will not have a material effect on the Company’s consolidated financial statements. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company utilizes derivative financial instruments as part of its ongoing efforts to manage its interest rate risk exposure as well as interest rate exposure for its customers. Derivative financial instruments are included in the consolidated balance sheets line items “Other assets” or “Other liabilities” at fair value in accordance with ASC 815, “Derivatives and Hedging.” See Note 1, “Basis of presentation,” for additional information on the Company’s accounting policies related to derivative instruments and hedging activities. Derivatives designated as fair value hedges The Company enters into fair value hedging relationships using interest rates swaps to mitigate the Company’s exposure to losses in market value as interest rates change. Derivative instruments that are used as part of the Company’s interest rate risk management strategy include interest rate swaps that relate to pricing of specific balance sheet assets and liabilities. Interest rate swaps generally involve the exchange of fixed and variable rate interest payments between two parties, based on a common notional principal amount and maturity date. The critical terms of the interest rate swaps match the terms of the corresponding hedged items. All components of each derivative instrument’s gain or loss are included in the assessment of hedge effectiveness. Any initial and ongoing assessment of expected hedge effectiveness is based on regression analysis. December 31, 2023 December 31, 2022 Remaining Maturity (In Years) Receive Fixed Rate Pay Floating Rate Notional Amount Estimated fair value Notional Amount Estimated fair value Derivatives included in other Interest rate swap 0.64 1.50% SOFR 75,000 (1,686) 75,000 (3,693) Interest rate swap 0.64 1.50% SOFR 125,000 (2,811) 125,000 (6,154) Interest rate swap 0.17 1.46% SOFR 100,000 (673) 100,000 (3,830) Total 0.49 1.48% $ 300,000 $ (5,170) $ 300,000 $ (13,677) The following discloses the amount of expense included in interest expense on borrowings and deposits, related to these fair value hedging instruments: Years Ended December 31, 2023 2022 Designated fair value hedge: Interest expense on deposits $ (7,176) $ (717) Interest expense on borrowings (3,630) (395) Total $ (10,806) $ (1,112) The following amounts were recorded on the balance sheet related to cumulative adjustments of fair value hedges as of the dates presented: Carrying Amount of the Hedged Item Cumulative Decrease in Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Item Line item on the balance sheet December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Money market and savings deposits $ 198,143 $ 196,520 (1) $ (4,497) $ (9,847) Borrowings 98,715 95,171 (2) (673) (3,830) Total $ 296,858 $ 291,691 $ (5,170) $ (13,677) (1) The carrying value also includes an unaccreted purchase accounting fair value premium of $2,640 and $6,367 as of December 31, 2023 and 2022, respectively. (2) The carrying value also includes unamortized subordinated debt issuance costs of $612 and $999 as of December 31, 2023 and 2022, respectively. Derivatives designated as cash flow hedges The Company enters into cash flow hedging relationships using interest rate swaps to mitigate the exposure to the variability in future cash flows or other forecast transactions associated with its floating rate assets and liabilities. The Company uses interest rate swap agreements to hedge the repricing characteristics of its floating rate subordinated debt. All components of each derivative instrument’s gain or loss are included in the assessment of hedge effectiveness. Any initial and ongoing assessment of expected hedge effectiveness is based on regression analysis. The ongoing periodic measures of hedge ineffectiveness are based on the expected change in cash flows of the hedged item caused by changes in the benchmark interest rate. The following presents a summary of the Company's designated cash flow hedges as of the dates presented: December 31, 2023 December 31, 2022 Notional Amount Estimated fair value Balance sheet location Estimated fair value Balance sheet location Interest rate swap agreements- $ 30,000 $ 579 Other assets $ 1,255 Other assets The Company's consolidated statements of income included income of $985 for the year ended December 31, 2023 and expense of $93 and $577 for the years ended December 31, 2022 and 2021, respectively, in interest expense on borrowings related to these cash flow hedges. The cash flow hedges were highly effective during the periods presented and as a result qualified for hedge accounting treatment. As such, no amounts were reclassified from accumulated other comprehensive loss into earnings as a result of hedge ineffectiveness during any period presented. The following discloses the amount included in other comprehensive (loss) income, net of tax, for derivative instruments designated as cash flow hedges for the periods presented: Years Ended December 31, 2023 2022 2021 Amount of (loss) gain recognized in other comprehensive (loss) income, net of tax (benefit) expense of $(176), $532 and $293 $ (500) $ 1,508 $ 831 Derivatives not designated as hedging instruments Derivatives not designated under hedge accounting rules include those that are entered into as either economic hedges as part of the Company’s overall risk management strategy or to facilitate client needs. Economic hedges are those that are not designated as a fair value or cash flow hedge for accounting purposes but are necessary to economically manage the risk exposure associated with the assets and liabilities of the Company. The Company enters into derivative instruments to help its commercial customers manage their exposure to interest rate fluctuations. To mitigate the interest rate risk associated with customer contracts, the Company enters into an offsetting derivative contract. The Company manages its credit risk, or potential risk of default by its commercial customers through credit limit approval and monitoring procedures. The Company enters into interest rate-lock commitments on residential loan commitments that will be held for resale. These are considered derivative instruments with no hedge accounting designation, and the interest rate exposure on these commitments is economically hedged primarily with forward contracts. Gains and losses arising from changes in the valuation of the interest rate-lock commitments and forward commitments are recognized currently in earnings and are reflected under the line item “Mortgage banking income” in the consolidated statements of income. The Company also enters into forwards, futures and option contracts to economically hedge the change in fair value of mortgage servicing rights. Gains and losses associated with these instruments are included in earnings and are reflected under the line item “Mortgage banking income” in the consolidated statements of income. The following tables provide details on the Company’s non-designated derivative financial instruments as of the dates presented: December 31, 2023 Notional Amount Asset Liability Interest rate contracts $ 569,865 $ 32,179 $ 32,184 Forward commitments 159,000 — 861 Interest rate-lock commitments 69,217 1,203 — Futures contracts 254,000 777 — Total $ 1,052,082 $ 34,159 $ 33,045 December 31, 2022 Notional Amount Asset Liability Interest rate contracts $ 560,310 $ 45,775 $ 45,762 Forward commitments 207,000 306 — Interest rate-lock commitments 118,313 1,433 — Futures contracts 494,300 — 3,790 Total $ 1,379,923 $ 47,514 $ 49,552 (Losses) gains included in the consolidated statements of income related to the Company’s non-designated derivative financial instruments were as follows: Years Ended December 31, 2023 2022 2021 Included in mortgage banking income: Interest rate lock commitments $ (230) $ (5,764) $ (27,194) Forward commitments 953 55,804 25,661 Futures contracts (3,366) (36,381) (7,949) Option contracts (1,125) 36 — Total $ (3,768) $ 13,695 $ (9,482) Netting of Derivative Instruments Certain financial instruments, including derivatives, may be eligible for offset on the consolidated balance sheets when the “right of offset” exists or when the instruments are subject to an enforceable master netting agreement, which includes the right of the non-defaulting party or non-affected party to offset recognized amounts, including collateral posted with the counterparty, to determine a net receivable or net payable upon early termination of the agreement. Certain of the Company’s derivative instruments are subject to master netting agreements, however the Company has not elected to offset such financial instruments on the consolidated balance sheets. The following table presents the Company's gross derivative positions as recognized on the consolidated balance sheets as well as the net derivative positions, including collateral pledged to the extent the application of such collateral did not reduce the net derivative liability position below zero, had the Company elected to offset those instruments subject to an enforceable master netting agreement: Gross amounts not offset on the consolidated balance sheets Gross amounts recognized Gross amounts offset on the consolidated balance sheets Net amounts presented on the consolidated balance sheets Financial instruments Financial collateral pledged Net Amount December 31, 2023 Derivative financial assets $ 31,468 $ — $ 31,468 $ 6,502 $ — $ 24,966 Derivative financial liabilities $ 11,330 $ — $ 11,330 $ 6,502 $ 4,828 $ — December 31, 2022 Derivative financial assets $ 44,273 $ — $ 44,273 $ 14,229 $ — $ 30,044 Derivative financial liabilities $ 20,251 $ — $ 20,251 $ 14,229 $ 6,022 $ — Collateral Requirements Most derivative contracts with customers are secured by collateral. Additionally, in accordance with the interest rate agreements with derivative counterparties, the Company may be required to post collateral with these derivative counterparties. As of December 31, 2023 and 2022, the Company had collateral posted of $14,042 and $23,325, respectively, against its obligations under these agreements. Cash pledged as collateral on derivative contracts is recorded in “Other assets” on the consolidated balance sheets. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair value of financial instruments FASB ASC 820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820-10 also establishes a framework for measuring the fair value of assets and liabilities according to a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that are derived from assumptions based on management’s estimate of assumptions that market participants would use in pricing the asset or liability based on the best information available under the circumstances. The hierarchy is broken down into the following three levels, based on the reliability of inputs: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date. Level 2: Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs for assets or liabilities that are derived from assumptions based on management’s estimate of assumptions that market participants would use in pricing the assets or liabilities. The Company records the fair values of financial assets and liabilities on a recurring and nonrecurring basis using the following methods and assumptions: Investment securities Investment securities are recorded at fair value on a recurring basis. Fair values for securities are based on quoted market prices, where available. If quoted prices are not available, fair values are based on quoted market prices of similar instruments or are determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the pricing relationship or correlation among other benchmark quoted securities. Investment securities valued using quoted market prices of similar instruments or that are valued using matrix pricing are classified as Level 2. When significant inputs to the valuation are unobservable, the available-for-sale debt securities are classified within Level 3 of the fair value hierarchy. Where no active market exists for a security or other benchmark securities, fair value is estimated by the Company with reference to discount margins for other high-risk securities. Loans held for sale Mortgage loans held for sale are carried at fair value determined using current secondary market prices for loans with similar characteristics, that is, using Level 2 inputs. GNMA optional repurchase loans recorded as held for sale loans are carried at their principal balance. For commercial loans held for sale, fair value is determined using an income approach with various assumptions including expected cash flows, market discount rates, credit metrics and collateral value when appropriate. As such, these are considered Level 3. Derivatives The fair value of the Company's interest rate swap agreements to facilitate customer transactions are based upon fair values provided from entities that engage in interest rate swap activity and is based upon projected future cash flows and interest rates. The fair value of interest rate lock commitments associated with the mortgage pipeline is based on fees currently charged to enter into similar agreements, and for fixed-rate commitments, the difference between current levels of interest rates and the committed rates is also considered. The fair values of the Company's designated cash flow and fair value hedges are determined by calculating the difference between the discounted fixed rate cash flows and the discounted variable rate cash flows. The fair values of both the Company's hedges, including designated cash flow hedges and designated fair value hedges are based on pricing models that utilize observable market inputs. These financial instruments are classified as Level 2. OREO OREO is comprised of commercial and residential real estate obtained in partial or total satisfaction of loan obligations and excess land and facilities held for sale. OREO acquired in settlement of indebtedness is recorded at the lower of the carrying amount of the loan or the fair value of the real estate less costs to sell. Fair value is determined on a nonrecurring basis based on appraisals by qualified licensed appraisers and is adjusted for management’s estimates of costs to sell and holding period discounts. The valuations are classified as Level 3. Mortgage servicing rights MSRs are carried at fair value. Fair value is determined using an income approach with various assumptions including expected cash flows, market discount rates, prepayment speeds, servicing costs, and other factors. As such, MSRs are considered Level 3. Collateral- dependent loans Collateral-dependent loans are loans for which, based on current information and events, the Company has determined foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the loan to be provided substantially through the operation or sale of the collateral and it is probable that the creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. Collateral-dependent loans are classified as Level 3. The balances and levels of the assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 and 2022 are presented in the following tables: At December 31, 2023 Quoted prices Significant Significant unobservable Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 203,956 $ — $ 203,956 Mortgage-backed securities - residential — 896,971 — 896,971 Mortgage-backed securities - commercial — 16,961 — 16,961 Municipal securities — 242,263 — 242,263 U.S. Treasury securities — 108,496 — 108,496 Corporate securities — 3,326 — 3,326 Total securities $ — $ 1,471,973 $ — $ 1,471,973 Loans held for sale, at fair value $ — $ 46,618 $ — $ 46,618 Mortgage servicing rights — — 164,249 164,249 Derivatives — 34,738 — 34,738 Financial Liabilities: Derivatives — 38,215 — 38,215 At December 31, 2022 Quoted prices Significant Significant unobservable Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 40,062 $ — $ 40,062 Mortgage-backed securities - residential — 1,034,193 — 1,034,193 Mortgage-backed securities - commercial — 17,644 — 17,644 Municipal securities — 264,420 — 264,420 U.S. Treasury securities — 107,680 — 107,680 Corporate securities — 7,187 — 7,187 Equity securities, at fair value — 2,990 — 2,990 Total securities $ — $ 1,474,176 $ — $ 1,474,176 Loans held for sale, at fair value $ — $ 82,750 $ 30,490 $ 113,240 Mortgage servicing rights — — 168,365 168,365 Derivatives — 48,769 — 48,769 Financial Liabilities: Derivatives — 63,229 — 63,229 The balances and levels of the assets measured at fair value on a nonrecurring basis as of December 31, 2023 and 2022 are presented in the following tables: At December 31, 2023 Quoted prices Significant Significant unobservable Total Nonrecurring valuations: Financial assets: Other real estate owned $ — $ — $ 2,400 $ 2,400 Collateral-dependent net loans held for Commercial and industrial — — 12,338 12,338 Construction — — 203 203 Residential real estate: 1-4 family mortgage $ — $ — $ 429 $ 429 Consumer and other — — 71 71 Total collateral-dependent loans $ — $ — $ 13,041 $ 13,041 At December 31, 2022 Quoted prices Significant Significant unobservable Total Nonrecurring valuations: Financial assets: Other real estate owned $ — $ — $ 2,497 $ 2,497 Collateral-dependent net loans held for Residential real estate: 1-4 family mortgage $ — $ — $ 366 $ 366 Commercial real estate: Non-owner occupied — — 2,494 2,494 Total collateral-dependent loans $ — $ — $ 2,860 $ 2,860 Commercial loans held for sale As of December 31, 2022, the Company had a portfolio of acquired commercial loans. There were no such loans outstanding as of December 31, 2023. These commercial loans were measured at fair value. As such, these loans were excluded from the ACL. The following tables set forth the changes in fair value associated with this portfolio for the years ended December 31, 2023, 2022, and 2021: Year Ended December 31, 2023 Principal Balance Fair Value Discount Fair Value Carrying value at beginning of period $ 34,357 $ (3,867) $ 30,490 Change in fair value: Paydowns and payoffs (28,376) — (28,376) Write-offs to discount (5,981) 5,981 — Changes in valuation included in other noninterest income — (2,114) (2,114) Carrying value at end of period $ — $ — $ — Year Ended December 31, 2022 Principal balance Fair Value discount Fair Value Carrying value at beginning of period $ 86,762 $ (7,463) $ 79,299 Change in fair value: Paydowns and payoffs (43,676) — (43,676) Write-offs to discount (8,729) 8,729 — Changes in valuation included in other noninterest income — (5,133) (5,133) Carrying value at end of period $ 34,357 $ (3,867) $ 30,490 Year Ended December 31, 2021 Principal balance Fair Value discount Fair Value Carrying value at beginning of period $ 239,063 $ (23,660) $ 215,403 Change in fair value: Paydowns and payoffs (141,002) — (141,002) Write-offs to discount (8,563) 8,563 — Changes in valuation included in other noninterest income (2,736) 7,634 4,898 Carrying value at end of period $ 86,762 $ (7,463) $ 79,299 In addition to the gain of $4,898 recognized on the change in fair value of the portfolio during the year ended December 31, 2021, the Company recognized an additional gain of $6,274 related to the payoff of a loan that had been partially charged off prior to acquisition of the portfoli o. The significant unobservable inputs (Level 3) used in the valuation and changes in fair value associated with the Company's mortgage servicing rights for the years ended December 31, 2023, 2022, and 2021 are detailed at Note 8, “Mortgage servicing rights.” The following tables present information as of December 31, 2023 and 2022 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis: December 31, 2023 Financial instrument Fair Value Valuation technique Significant Range of Collateral-dependent net loans $ 13,041 Valuation of collateral Discount for comparable sales 10%-61% Other real estate owned $ 2,400 Appraised value of property less costs to sell Discount for costs to sell 0%-15% December 31, 2022 Financial instrument Fair Value Valuation technique Significant Range of Collateral-dependent net loans $ 2,860 Valuation of collateral Discount for comparable sales 10%-35% Other real estate owned $ 2,497 Appraised value of property less costs to sell Discount for costs to sell 0%-15% Fair value for collateral-dependent loans is determined based on appraisals performed by qualified appraisers and reviewed by qualified personnel. Fair value of the loan's collateral is determined by third-party appraisals, which are then adjusted for estimated selling and closing costs related to liquidation of the collateral. Collateral-dependent loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on changes in market conditions from the time of valuation and management's knowledge of the borrower and borrower's business. As of December 31, 2023 and 2022, total amortized cost of collateral-dependent loans measured on a nonrecurring basis amounted to $18,166 and $3,054, respectively. The allowance for credit losses is calculated as the amount for which the loan’s amortized cost basis exceeds fair value. Other real estate owned acquired in settlement of indebtedness is recorded at fair value of the real estate less estimated costs to sell. Subsequently, it may be necessary to record nonrecurring fair value adjustments for declines in fair value. Any write-downs based on the asset's fair value at the date of foreclosure are charged to the allowance for credit losses. Appraisals for both collateral-dependent loans and other real estate owned are performed by certified appraisers whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the lending administrative department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry wide statistics. Collateral-dependent loans that are dependent on recovery through sale of equipment, such as farm equipment, automobiles and aircrafts are generally valued based on public source pricing or subscription services while more complex assets are valued through leveraging brokers who have expertise in the collateral involved. Fair value option The following table summarizes the Company's loans held for sale as of the dates presented: December 31, 2023 2022 Loans held for sale under a fair value option: Commercial loans held for sale $ — $ 30,490 Mortgage loans held for sale 46,618 82,750 Total loans held for sale, at fair value 46,618 113,240 Loans held for sale not accounted for under a fair value option: Mortgage loans held for sale - guaranteed GNMA repurchase option 21,229 26,211 Total loans held for sale $ 67,847 $ 139,451 Mortgage loans held for sale Net losses of $121, $13,677, and $16,976 resulting from fair value changes of mortgage loans were recorded in income during the years ended December 31, 2023, 2022, and 2021, respectively. The amount does not reflect changes in fair values of related derivative instruments used to hedge exposure to market-related risks associated with these mortgage loans. The net change in fair value of these loans held for sale and derivatives resulted in net losses of $1,815, $17,633, and $33,284 for the years ended December 31, 2023, 2022, and 2021, respectively. The change in fair value of both loans held for sale and the related derivative instruments are recorded in “Mortgage banking income” in the consolidated statements of income. Election of the fair value option allows the Company to reduce the accounting volatility that would otherwise result from the asymmetry created by accounting for the financial instruments at the lower of cost or fair value and the derivatives at fair value. The Company’s valuation of mortgage loans held for sale incorporates an assumption for credit risk; however, given the short-term period that the Company holds these mortgage loans held for sale, valuation adjustments attributable to instrument-specific credit risk is nominal. The following table summarizes the differences between the fair value and the principal balance for loans held for sale and nonaccrual loans HFS measured at fair value as of December 31, 2023 and 2022: December 31, 2023 Aggregate Aggregate Unpaid Principal Balance Difference Mortgage loans held for sale measured at fair value $ 46,618 $ 45,509 $ 1,109 December 31, 2022 Aggregate Aggregate Unpaid Principal Balance Difference Mortgage loans held for sale measured at fair value $ 82,750 $ 81,520 $ 1,230 Commercial loans held for sale measured at fair value 21,201 22,126 (925) Nonaccrual commercial loans held for sale 9,289 12,231 (2,942) |
Parent Company Financial Statem
Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Financial Statements | Parent company financial statements The following information presents the condensed balance sheets, statements of income, and cash flows of FB Financial Corporation as of December 31, 2023 and 2022 and for each of the years in the three-year period ended December 31, 2023. As of December 31, Balance sheets 2023 2022 Assets Cash and cash equivalents (1) $ 21,448 $ 3,052 Investment in subsidiaries (1) 1,449,439 1,337,657 Other assets 15,291 16,654 Goodwill 29 29 Total assets $ 1,486,207 $ 1,357,392 Liabilities and shareholders' equity Liabilities Borrowings $ 30,930 $ 30,930 Accrued expenses and other liabilities 483 1,037 Total liabilities 31,413 31,967 Shareholders' equity Common stock 46,849 46,738 Additional paid-in capital 864,258 861,588 Retained earnings 678,412 586,532 Accumulated other comprehensive loss (134,725) (169,433) Total shareholders' equity 1,454,794 1,325,425 Total liabilities and shareholders' equity $ 1,486,207 $ 1,357,392 (1) Eliminates in Consolidation Years Ended December 31, Statements of income 2023 2022 2021 Income Dividend income from bank subsidiary (1) $ 49,000 $ 49,000 $ 122,500 Dividend income from nonbank subsidiary (1) 530 — 2,525 Loss on investments — — 249 Other income 57 89 15 Total income 49,587 49,089 125,289 Expenses Interest expense 1,590 1,587 2,455 Salaries, legal and professional fees 1,461 1,590 1,445 Other noninterest expense 478 771 1,812 Total expenses 3,529 3,948 5,712 Income before income tax benefit and equity in undistributed 46,058 45,141 119,577 Federal and state income tax benefit (887) (1,002) (2,992) Income before equity in undistributed earnings of subsidiaries 46,945 46,143 122,569 Equity in undistributed earnings from bank subsidiary (1) 73,832 76,232 68,351 Equity in undistributed earnings from nonbank subsidiary (1) (553) 2,180 (635) Net income $ 120,224 $ 124,555 $ 190,285 (1) Eliminates in Consolidation Years Ended December 31, Statements of cash flows 2023 2022 2021 Operating Activities Net income $ 120,224 $ 124,555 $ 190,285 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income of bank subsidiary (73,832) (76,232) (68,351) Equity in undistributed income of nonbank subsidiary 553 (2,180) 635 Accretion of subordinated debt fair value premium — — (369) Gain on investments — — (249) Stock-based compensation expense 10,381 9,857 10,282 Decrease (increase) in other assets 1,017 (802) (3,916) Decrease in other liabilities (4,064) (7,381) (678) Net cash provided by operating activities 54,279 47,817 127,639 Investing Activities Proceeds from sale of equity securities — — 1,422 Net cash provided by investing activities — — 1,422 Financing Activities Payments on subordinated debt — — (60,000) Payments on other borrowings — — (15,000) Share based compensation withholding payments (3,379) (2,842) (10,158) Net proceeds from sale of common stock under employee stock purchase 723 1,212 1,480 Repurchase of common stock (4,944) (39,979) (7,595) Dividends paid on common stock (28,057) (24,503) (20,866) Dividend equivalent payments made upon vesting of equity compensation (226) (168) (717) Net cash used in financing activities (35,883) (66,280) (112,856) Net increase (decrease) in cash and cash equivalents 18,396 (18,463) 16,205 Cash and cash equivalents at beginning of year 3,052 21,515 5,310 Cash and cash equivalents at end of year $ 21,448 $ 3,052 $ 21,515 Supplemental noncash disclosures: Dividends declared not paid on restricted stock units $ 287 $ 222 $ 400 Noncash security distribution to bank subsidiary — — 2,646 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment reporting The following tables present selected financial information with respect to the Company's reportable segments for the years ended December 31, 2023, 2022, and 2021. Year Ended December 31, 2023 Banking (2) Mortgage Consolidated Net interest income $ 407,217 $ — $ 407,217 Provisions for credit losses 2,539 — 2,539 Mortgage banking income — 60,918 60,918 Change in fair value of mortgage servicing rights, net of hedging (1) — (16,226) (16,226) Other noninterest income 25,831 20 25,851 Depreciation and amortization 10,444 736 11,180 Amortization of intangibles 3,659 — 3,659 Other noninterest expense 262,433 47,657 310,090 Income (loss) before income taxes $ 153,973 $ (3,681) $ 150,292 Income tax expense 30,052 Net income applicable to FB Financial Corporation and noncontrolling interest 120,240 Net income applicable to noncontrolling interest (2) 16 Net income applicable to FB Financial Corporation $ 120,224 Total assets $ 12,046,190 $ 558,213 $ 12,604,403 Goodwill 242,561 — 242,561 (1) Change in fair value of mortgage servicing rights, net of hedging is included in Mortgage banking income in the Company's consolidated statements of income. (2) Banking segment includes noncontrolling interest. Year Ended December 31, 2022 Banking (3) Mortgage Consolidated Net interest income $ 412,237 $ (2) $ 412,235 Provisions for credit losses 18,982 — 18,982 Mortgage banking income — 83,679 83,679 Change in fair value of mortgage servicing rights, net of hedging (1) — (10,099) (10,099) Other noninterest income 41,320 (233) 41,087 Depreciation and amortization 7,035 982 8,017 Amortization of intangibles 4,585 — 4,585 Other noninterest expense (2) 240,096 95,648 335,744 Income (loss) before income taxes $ 182,859 $ (23,285) $ 159,574 Income tax expense 35,003 Net income applicable to FB Financial Corporation and noncontrolling interest 124,571 Net income applicable to noncontrolling interest (3) 16 Net income applicable to FB Financial Corporation $ 124,555 Total assets $ 12,228,451 $ 619,305 $ 12,847,756 Goodwill 242,561 — 242,561 (1) Change in fair value of mortgage servicing rights, net of hedging is included in mortgage banking income in the Company's consolidated statements of income. (2) Includes $12,458 in Mortgage restructuring expenses in the Mortgage segment related to the exit from the direct-to-consumer internet delivery channel. (3) Banking segment includes noncontrolling interest. Year Ended December 31, 2021 Banking (2) Mortgage Consolidated Net interest income $ 347,342 $ 28 $ 347,370 Provisions for credit losses (40,993) — (40,993) Mortgage banking income — 179,682 179,682 Change in fair value of mortgage servicing rights, net of hedging (1) — (12,117) (12,117) Other noninterest income 61,073 (383) 60,690 Depreciation and amortization 7,054 1,362 8,416 Amortization of intangibles 5,473 — 5,473 Other noninterest expense 220,283 139,395 359,678 Income before income taxes $ 216,598 $ 26,453 $ 243,051 Income tax expense 52,750 Net income applicable to FB Financial Corporation and noncontrolling interest 190,301 Net income applicable to noncontrolling interest (2) 16 Net income applicable to FB Financial Corporation $ 190,285 Total assets $ 11,540,560 $ 1,057,126 $ 12,597,686 Goodwill 242,561 — 242,561 (1) Change in fair value of mortgage servicing rights, net of hedging is included in mortgage banking income in the Company's consolidated statements of income. (2) Banking segment includes noncontrolling interest. The Banking segment provides the Mortgage segment with a warehouse line of credit that is used to originate mortgage loans until those mortgage loans can be sold at which time the warehouse line of credit is repaid. The warehouse line of credit, which is eliminated in consolidation, is limited based on interest income earned by the Mortgage segment. The amount of interest paid by the Mortgage segment to the Banking segment under this warehouse line of credit is recorded as interest income to the Banking segment and as interest expense to the Mortgage segment, both of which are included in the calculation of net interest income for each segment. The amount of interest paid by the Mortgage segment to the Banking segment under this warehouse line of credit was $16,170, $18,906 and $23,910 for the years ended December 31, 2023, 2022, and 2021, respectively. |
Minimum Capital Requirements
Minimum Capital Requirements | 12 Months Ended |
Dec. 31, 2023 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Minimum Capital Requirements | Minimum capital requirements Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Under regulatory guidance for non-advanced approach institutions, the Bank and Company are required to maintain minimum capital ratios as outlined in the table below. Minimum risk-based capital adequacy ratios below include a capital conservation buffer of 2.50%. As of December 31, 2023 and 2022, the Bank and Company met all capital adequacy requirements to which they are subject. Additionally, under U.S. Basel III Capital Rules, the Bank and Company opted out of including accumulated other comprehensive income in regulatory capital. The Company elected to phase-in the impact related to adopting ASU 2016-13 over the permissible five-year transition relief period and delayed the initial impact of CECL adoption plus 25% of the quarterly increases in ACL in the first two years after adoption. As of January 1, 2022, the cumulative amount of the transition adjustments became fixed and are being phased out of regulatory capital calculations evenly over a three-year period, with 75% of the transition provision’s impact being recognized in 2022, 50% recognized in 2023, and 25% recognized in 2024. Actual and required capital amounts and ratios are included below as of the dates indicated. December 31, 2023 Actual Minimum Requirement for Capital Adequacy with To Qualify as Well-Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Total Capital (to risk-weighted assets) FB Financial Corporation $ 1,635,848 14.5 % $ 1,182,028 10.5 % N/A N/A FirstBank 1,600,950 14.2 % 1,179,886 10.5 % $ 1,123,701 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,405,890 12.5 % $ 956,880 8.5 % N/A N/A FirstBank 1,370,991 12.2 % 955,145 8.5 % $ 898,960 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 1,405,890 11.3 % $ 496,485 4.0 % N/A N/A FirstBank 1,370,991 11.1 % 495,761 4.0 % $ 619,701 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,375,890 12.2 % $ 788,018 7.0 % N/A N/A FirstBank 1,370,991 12.2 % 786,590 7.0 % $ 730,405 6.5 % December 31, 2022 Actual Minimum Requirement for Capital Adequacy with To Qualify as Well-Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Total Capital (to risk-weighted assets) FB Financial Corporation $ 1,528,344 13.1 % $ 1,225,161 10.5 % N/A N/A FirstBank 1,506,543 12.9 % 1,222,922 10.5 % $ 1,164,688 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,315,386 11.3 % $ 991,797 8.5 % N/A N/A FirstBank 1,293,585 11.1 % 989,985 8.5 % $ 931,750 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 1,315,386 10.5 % $ 499,648 4.0 % N/A N/A FirstBank 1,293,585 10.4 % 499,194 4.0 % $ 623,992 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,285,386 11.0 % $ 816,774 7.0 % N/A N/A FirstBank 1,293,585 11.1 % 815,281 7.0 % $ 757,047 6.5 % |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee benefit plans 401(k) plan The Company sponsors a defined contribution plan which covers substantially all employees and allows participating employees to contribute the maximum amount of their eligible salary subject to certain limits based on the federal tax laws. The Company has an employer match of 50% of the first 6% of an employee’s salary with any such contributions vesting ratably over a three-year period. For the years ended December 31, 2023, 2022 and 2021, matching employer contributions totaled $3,450, $3,686 and $3,923 respectively. Acquired supplemental retirement plans The Company has nonqualified supplemental retirement plans for certain former employees that were assumed through acquisitions. As of December 31, 2023 and 2022, other liabilities on the consolidated balance sheets included post-retirement benefits payable of $2,152 and $2,424, respectively, related to these plans. For the years ended December 31, 2023, 2022 and 2021, the expense related to these plans and payments to the participants were not meaningful. The Company also acquired single premium life insurance policies on these individuals. At December 31, 2023 and 2022, cash surrender value of bank-owned life insurance was $76,143 and $75,329, respectively. Income related to these policies (net of related insurance premium expense) amounted to $1,871, $1,452 and $1,542 in 2023, 2022 and 2021, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-based compensation Restricted Stock Units The Company grants RSUs under compensation arrangements for the benefit of certain employees, executive officers, and directors. RSU grants are subject to time-based vesting with associated compensation recognized on a straight-line basis based on the grant date fair value of the awards. The total number of RSUs granted represents the maximum number of awards eligible to vest based upon the service conditions set forth in the grant agreements. The following table summarizes changes in RSUs for the year ended December 31, 2023: Restricted Stock Weighted Balance at beginning of period (unvested) 365,155 $ 39.02 Granted 180,631 35.33 Vested (212,251) 38.11 Forfeited (10,015) 40.00 Balance at end of period (unvested) 323,520 $ 37.52 The total fair value of RSUs vested was $8,089, $8,018, and $16,340 for the years ended December 31, 2023, 2022, and 2021, respectively. The compensation cost related to the grants and vesting of RSUs was $7,438, $7,372, and $8,907 for the years ended December 31, 2023, 2022, and 2021, respectively. This includes amounts paid related to grants and compensation for directors elected to be settled in stock amounting to $834, $663, and $635 for the years ended December 31, 2023, 2022, and 2021, respectively. As of December 31, 2023, there was $7,736 of total unrecognized compensation cost related to unvested RSUs which is expected to be recognized over a weighted-average period of 1.94 years. Additionally, as of December 31, 2023, there were 1,497,096 shares available for issuance under the Company's stock compensation plans. As of December 31, 2023 and 2022, there was $353 and $292, respectively, accrued in other liabilities related to dividend equivalent units declared to be paid upon vesting and distribution of the underlying RSUs. Performance-Based Restricted Stock Units The Company awards PSUs to executives, other officers and employees. Under the terms of the awards, the number of units that will vest and convert to shares of common stock will be based on the Company's performance relative to a predefined peer group over a fixed three The following table summarizes information about the changes in PSUs as of and for the year ended December 31, 2023: Performance Stock Weighted Balance at beginning of period (unvested) 161,667 $ 41.73 Granted 86,010 37.17 Performance adjustment (1) 51,444 36.93 Vested (104,833) 36.93 Forfeited or expired (18,125) 43.58 Balance at end of period (unvested) 176,163 $ 40.86 (1) PSUs are presented as outstanding, granted and forfeited in the table above assuming targets are met and the awards pay out at 100%. PSU awards are settled with payouts ranging from 0% and 200% of the target award value based on the Company's performance relative to a predefined peer group over a fixed three performance attainment above or below target. The following table summarizes data related to the Company's outstanding PSUs as of December 31, 2023: Grant Year Grant Price Performance Period PSUs Outstanding 2021 (1) $ 43.20 2021 to 2023 47,387 2022 (1) $ 44.44 2022 to 2024 50,117 2023 (1) $ 37.17 2023 to 2025 78,659 (1) Vesting factor will be interpolated between 0% and 200% of PSUs outstanding based on the Company's performance relative to a predefined peer group over a fixed three The Company recorded compensation cost associated with PSUs of $2,943, $2,485, and $1,375 for the years ended December 31, 2023, 2022, and 2021, respectively. As of December 31, 2023, maximum unrecognized compensation cost at 200% payout related to the unvested PSUs was $10,864, and the weighted average remaining performance period over which the cost could be recognized was 1.82 years. Employee Stock Purchase Plan The Company maintains an employee stock purchase plan under which employees, through payroll deductions, are able to purchase shares of Company common stock. The employee purchase price is 95% of the lower of the market price on the first or last day of the offering period. The maximum number of shares issuable during any offering period is 200,000 shares, limited to 725 shares for each participating employee. There were 20,520, 26,950, and 37,310 shares of common stock issued under the ESPP with proceeds from employee payroll withholdings of $686, $1,087, and $1,190 during the years ended December 31, 2023, 2022, and 2021, respectively. As of December 31, 2023, there were 2,294,226 shares available for issuance under the ESPP. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related party transactions Loans The Bank has made and expects to continue to make loans to the directors, certain management, significant shareholders, and executive officers of the Company and their related interests in the ordinary course of business, in compliance with regulatory requirements. An analysis of loans to executive officers, certain management, significant shareholders and directors of the Bank and their related interests is presented below: Loans outstanding at January 1, 2023 $ 82,559 New loans and advances 10,047 Change in related party status (37,897) Repayments (5,636) Loans outstanding at December 31, 2023 $ 49,073 Unfunded commitments to certain executive officers, certain management and directors and their related interests totaled $44,206 and $31,564 at December 31, 2023 and 2022, respectively. Deposits The Bank held deposits from related parties tota ling $316,141 a nd $347,660 as of December 31, 2023 and 2022, respectively. Leases The Bank leases various office spaces from entities owned by certain directors of the Company under varying terms. Lease expense for these properties totaled $385, $396, and $497 for the years ended December 31, 2023, 2022, and 2021, respectively. Aviation lease During the year ended December 31, 2021, the Bank formed a subsidiary, FBK Aviation, LLC and purchased an aircraft under this entity. FBK Aviation, LLC also maintains a non-exclusive aircraft lease agreement with an entity owned by one of the Company's directors. The Company recognized income of $28, $52, and $21 during the years ended December 31, 2023, 2022, and 2021, respectively, under this agreement. Equity investment in preferred stock and master loan purchase agreement During the year ended December 31, 2022, the Company invested in preferred stock of a privately held entity of which an executive officer of the Company is on the Board of directors of the investee. This investment is included in other assets on the consolidated balance sheets with a carrying amount of $10,000 as of both December 31, 2023 and 2022, and is being accounted for as an equity security without readily determinable market value. No gains or losses have been recognized to date associated with this investment. Concurrently, the Company also entered a separate master loan purchase agreement with the entity to purchase up to $250,000 in manufactured loan housing production over an initial five-year term. During the year ended December 31, 2023, the Company purchased $33,164 of loans HFI under this agreement. No such loans were purchased during the year ended December 31, 2022. As of December 31, 2023, the amortized cost of these loans HFI amounted to $32,154. There were no loans recorded under the master loan purchase agreement as of December 31, 2022. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income | $ 120,224 | $ 124,555 | $ 190,285 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation and use of estimates | Basis of presentation and use of estimates The accompanying consolidated financial statements include the Company and its wholly-owned subsidiaries, namely the Bank. All significant intercompany accounts and transactions have been eliminated in consolidation. The accounting policies followed by the Company and its subsidiaries and the methods of applying these principles conform with accounting principles generally accepted in the United States of America and general banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period, the most significant of which relate to the allowance for credit losses and mortgage servicing rights. |
Cash and cash equivalents | Cash and cash equivalents The Company considers all highly liquid unrestricted investments with a maturity of three months or less when purchased to be cash equivalents. This includes cash, federal funds sold, reverse repurchase agreements and interest-bearing deposits in other financial institutions. |
Investment securities | Investment securities Available-for-sale debt securities, at fair value Debt securities that might be sold before maturity are classified as available-for-sale. Available-for-sale debt securities are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of applicable taxes, unless such unrealized gain or loss results from expected credit losses. Unrealized losses resulting from credit losses for available-for-sale debt securities are recognized in earnings as a provision for credit losses. Accrued interest receivable for available-for-sale securities is separated from other components of amortized cost and presented separately on the consolidated balance sheets. The amortization and accretion of purchase premiums or discounts is recognized as interest income on the level-yield method anticipating prepayments based upon the prior three month average monthly prepayments when available. The Company evaluates available-for-sale securities for expected credit losses. For securities in an unrealized loss position, consideration is given to the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer and the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. In analyzing an issuer’s financial condition, the Company considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. If the Company does not intend to sell the security and it is not more likely than not to be required to sell the security before recovery of its amortized cost basis, the difference between the amortized cost and the fair value is separated into estimated credit losses and all other factors. Estimated credit losses are recorded as an allowance for credit losses and recognized in earnings as a provision for credit losses. Amounts related to other, non-credit related factors are recognized in other comprehensive income, net of applicable taxes. The Company did not record any provision for credit losses for its available-for-sale debt securities during the years ended December 31, 2023 and 2022 as declines in fair value below amortized cost were determined to be non-credit related. Sales of available-for-sale securities are evaluated based on factors such as changes in interest rates, liquidity needs, asset and liability management strategies and other factors. If the Company intends to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, the expected credit loss recognized in earnings is equal to the difference between its amortized cost basis and its fair value at the date it was determined to be impaired due to credit losses or other factors. The sale and purchase of investment securities are recognized on a trade date basis with gains and losses on sales being determined using the specific identification method. Held-to-maturity securities Debt securities are classified as held-to-maturity and carried at amortized cost, excluding accrued interest, when management has the positive intent and ability to hold them to maturity. At December 31, 2023 and 2022, the Company did not own held-to-maturity securities. Trading account securities Trading account securities are held for the purpose of buying and selling securities at a profit. Trading account securities are carried at fair value on the balance sheet, with any periodic changes in fair value recorded through income. At December 31, 2023 and 2022, the Company did not own trading account securities. Equity securities, at fair value Equity securities with readily determinable market values are carried at fair value on the balance sheet with any periodic changes in fair value recorded through income. Equity securities without readily determinable market values are carried at cost less impairment and included in “Other assets” on the consolidated balance sheets. Federal Home Loan Bank stock, at cost The Company accounts for its investments in FHLB stock in accordance with ASC 942-325 “Financial Services-Depository and Lending-Investments-Other.” FHLB stock does not have a readily determinable fair value because its ownership is restricted and lacks a market as all transactions are executed at par value with the FHLB as the sole purchaser. FHLB stock is carried at cost and evaluated for impairment based upon management’s assessment of the recoverability of the par value. Ownership of FHLB stock is required to participate in the FHLB system and varies based upon the amount of FHLB advances. |
Loans held for sale | Loans held for sale Mortgage loans held for sale Mortgage loans originated and intended for sale in the secondary market are carried at fair value under the fair value option as permitted under the guidance in ASC 825, “Financial Instruments,” until sold. Electing to measure these assets at fair value reduces certain timing differences and more accurately matches the changes in fair value of the loans with changes in the fair value of derivative instruments used to economically hedge them. The change in fair value of both loans held for sale and the related derivative instruments are recorded in “Mortgage banking income” in the consolidated statements of income. Gains and losses on sale are recognized at the time the loan is closed. Pass through origination costs and related loan fees are also included in “Mortgage banking income.” A portion of loans sold by the Company are sold to GNMA with the Company retaining the servicing rights after the sale. GNMA optional repurchase programs allow financial institutions to repurchase individual delinquent mortgage loans that meet certain criteria from the securitized loan pool from which the institution provides servicing. At the servicer's option and without GNMA's prior authorization, the servicer may repurchase such a delinquent loan for an amount equal to 100% of the remaining principal balance of the loan. Under ASC 860, “Transfers and Servicing,” this buy-back option is considered a conditional option until the delinquency criteria are met, at which time the option becomes unconditional. When the Company is deemed to have effective control over these loans under the unconditional buy-back option, the loan can no longer be reported as sold and must be brought onto the balance sheet as loans held for sale, regardless of whether the Company intends to exercise the buy-back option. These loans are reported at the current unpaid principal balance as “Loans held for sale” with an offsetting liability reported in “Borrowings” on the Company's consolidated balance sheets and are considered nonperforming assets due to their delinquent status. Commercial loan held for sale |
Loans held for investment (excluding purchased credit deteriorated loans) | Loans held for investment (excluding purchased credit deteriorated loans) Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at amortized cost. Amortized cost is equal to the principal amount outstanding less any remaining purchase accounting discount or premium. Interest on loans is recognized as income by using the simple interest method on daily balances of the principal amount outstanding plus any accretion or amortization of purchase accounting premiums or discounts. Loans may be designated as nonaccrual if past due 90 days or more or if management determines based on economic conditions and the borrower’s financial condition that collection of principal or interest is doubtful, unless the credit is well secured and in the process of collection. When a loan is placed on nonaccrual status, the accrued but unpaid interest is charged against current period operations. Thereafter, interest on nonaccrual loans is recognized only as received if future collection of principal is probable. If the collectability of outstanding principal is doubtful, interest received is applied as a reduction of principal. A loan may be restored to accrual status when principal and interest are no longer past due or it otherwise becomes both well secured and collectability is reasonably assured. Credit Quality - Commercial Type Loans The Company categorizes commercial loan types into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans that share similar risk characteristics collectively. Loans that do not share similar risk characteristics are evaluated individually. The Company uses the following definitions for risk ratings: Pass. Loans rated Pass include those that are adequately collateralized performing loans which management believes do not have conditions that have occurred or may occur that would result in the loan being downgraded into an inferior category. The Pass category also includes commercial loans rated as Watch, which include those that management believes have conditions that have occurred, or may occur, which could result in the loan being downgraded to an inferior category. Special Mention. Loans rated Special Mention are those that have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Management does not believe there will be a loss of principal or interest. These loans require intensive servicing and may possess more than normal credit risk. Classified. Loans included in the Classified category include loans rated as Substandard and Doubtful. Loans rated as Substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Also included in this category are loans classified as Doubtful, which have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weakness or weaknesses make collection or liquidation in full, based on currently existing facts, conditions, and values, highly questionable and improbable. |
Allowance for credit losses | Allowance for credit losses The allowance for credit losses represents the portion of the loan's amortized cost basis that the Company does not expect to collect due to credit losses over the loan's life, considering past events, current conditions, and reasonable and supportable forecasts of future economic conditions. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for credit losses is based on the loan's amortized cost basis, excluding accrued interest receivable, as the Company promptly charges off uncollectible accrued interest receivable. Management’s determination of the appropriateness of the allowance is based on periodic evaluation of the loan portfolio, lending-related commitments and other relevant factors, including macroeconomic forecasts and historical loss rates. In the future, the Company may update information and forecasts that may cause significant changes in the estimate in those future quarters. The Company calculates its expected credit loss using a lifetime loss rate methodology. The Company utilizes probability-weighted forecasts, which consider multiple macroeconomic variables from Moody's that are applicable to each type of loan. Each of the Company's loss rate models incorporate forward-looking macroeconomic projections throughout the reasonable and supportable forecast period and the subsequent historical reversion at the macroeconomic variable input level. In order to estimate the life of a loan, the contractual term of the loan is adjusted for estimated prepayments based on market information and the Company’s prepayment history. For loss estimation purposes, the Company disaggregates the loan portfolio into three loan pools: 1) Commercial and industrial; 2) Retail; 3) Commercial real estate. These loan pools are further disaggregated into loan segments for application of qualitative inputs for loss estimation purposes. These loan segments include: Commercial and industrial loans. Commercial and industrial loans are typically made to small- and medium-sized manufacturing, wholesale, retail and service businesses, and farmers for working capital and operating needs and business expansions. This category also includes loans secured by manufactured housing receivables made primarily to manufactured housing communities. Commercial and industrial loans generally include lines of credit and loans with maturities of five years or less. Commercial and industrial loans are generally made with operating cash flows as the primary source of repayment, but may also include collateralization by inventory, accounts receivable, equipment and personal guarantees. Construction loans. Construction loans include commercial construction, land acquisition and land development loans and single-family interim construction loans to small- and medium-sized businesses and individuals. These loans are generally secured by the land or the real property being built and are made based on the Company's assessment of the value of the property on an as-completed basis and repayment depends upon project completion and sale, refinancing, or operation of the real estate. 1-4 family mortgage loans . The Company’s residential real estate 1-4 family mortgage loans are primarily made with respect to and secured by single family homes, including manufactured homes with real estate, which are both owner-occupied and investor owned. Repayment depends primarily upon the cash flow of the borrower as well as the value of the real estate collateral. Residential line of credit loans. The Company’s residential line of credit loans are primarily revolving, open-end lines of credit secured by 1-4 residential properties. Repayment depends primarily upon the cash flow of the borrower as well as the value of the real estate collateral. Multi-family residential loans. The Company’s multi-family residential loans are primarily secured by multi-family properties, such as apartments and condominium buildings. Repayment depends primarily upon the cash flow of the borrower as well as the value of the real estate collateral. Commercial real estate owner-occupied loans . The Company’s commercial real estate owner-occupied loans include loans to finance commercial real estate owner occupied properties for various purposes including use as offices, warehouses, production facilities, health care facilities, retail centers, restaurants, churches and agricultural based facilities. Commercial real estate owner-occupied loans are typically repaid through the ongoing business operations of the borrower. Commercial real estate non-owner occupied loans . The Company’s commercial real estate non-owner occupied loans include loans to finance commercial real estate investment properties for various purposes including use as offices, warehouses, health care facilities, hotels, mixed-use residential/commercial, manufactured housing communities, retail centers, multifamily properties, assisted living facilities and agricultural based facilities. Commercial real estate non-owner occupied loans are typically repaid with the funds received from the sale or refinancing of the property or rental income from such property. Consumer and other loans . The Company’s consumer and other loans include loans to individuals for personal, family and household purposes, including car, boat and other recreational vehicle loans, manufactured homes (without real estate) and personal lines of credit. Consumer loans are generally secured by vehicles and other household goods, with repayment depending primarily on the cash flow of the borrower. Other loans also include loans to states and political subdivisions in the U.S. and are repaid through tax revenues or refinancing. None of these categories of loans represent a significant portion of the Company's loan portfolio. The Company's loss rate models estimate the lifetime loss rate for the pools of loan segments by combining the calculated loss rate based on each variable within the model, including the macroeconomic variables. The lifetime loss rate for the pool is then multiplied by the loan balances to determine the expected credit losses on the pool. The quantitative models require loan data and macroeconomic variables based on the inherent credit risks in each portfolio to more accurately measure the credit risks associated with each. The quantitative models pool loans with similar risk characteristics and collectively assesses the lifetime loss rate for each pool to estimate its expected credit loss. The Company considers the need to qualitatively adjust its modeled quantitative expected credit loss estimate for information not otherwise captured in the model loss estimation process. These qualitative factor adjustments may increase or decrease the Company’s estimate of expected credit losses. The Company considers the qualitative factors that are relevant to the institution as of the reporting date, which may include, but are not limited to: levels of and trends in delinquencies and performance of loans; levels of and trends in write-offs and recoveries collected; trends in volume and terms of loans; effects of any changes in reasonable and supportable economic forecasts; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and expertise; available relevant information sources that contradict the Company’s own forecast; effects of changes in prepayment expectations or other factors affecting assessments of loan contractual terms; industry conditions; and effects of changes in credit concentrations. When a loan no longer shares similar risk characteristics with other loans in any given pool, the loan is individually assessed. A loan may require an individual evaluation when it is collateral-dependent; foreclosure is probable; or it has other unique risk characteristics. A loan is deemed collateral-dependent when the borrower is experiencing financial difficulty and the repayment is expected to be primarily through sale or operation of the collateral. The allowance for credit losses for collateral-dependent loans as well as loans where foreclosure is probable is calculated as the amount for which the loan’s amortized cost basis exceeds fair value. Fair value is determined based on appraisals performed by qualified appraisers and reviewed by qualified personnel. In cases where repayment is to be provided substantially through the sale of collateral, the Company reduces the fair value by the estimated costs to sell. Effective January 1, 2023, the Company prospectively adopted the accounting guidance in ASU 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures,” which eliminates the recognition and measurement of TDRs. Since adoption, the Company no longer measures an allowance for credit losses for TDRs it reasonably expects will occur, and it evaluates all loan modifications according to the accounting guidance for loan refinancing and modifications to determine whether the modification should be accounted for as a new loan or a continuation of the existing loan. The Company derecognizes the existing loan and accounts for the modified loan as a new loan if the effective yield on the modified loan is at least equal to the effective yield for comparable loans with similar collection risks and the modifications to the original loan are more than minor. If a loan modification does not meet these conditions, it extends the existing loan’s amortized cost basis and accounts for the modified loan as a continuation of the existing loan. Substantially all of its loan modifications involving borrowers experiencing financial difficulty are accounted for as a continuation of the existing loan. Prior to January 1, 2023, loans experiencing financial difficulty for which a concession has not yet been provided may be identified as reasonably expected TDRs. Reasonably expected TDRs and TDRs used the same methodology to estimate credit losses. In cases where the expected credit loss could only be captured through a discounted cash flow analysis (such as an interest rate modification for a TDR loan), the allowance was measured by the amount which the loan’s amortized cost exceeds the discounted cash flow analysis. See Note 3, “Loans and allowance for credit losses” for additional details related to the Company's allowance for credit losses. |
Business combinations and accounting for purchase credit deteriorated loans | Business combinations and accounting for purchase credit deteriorated loans Business combinations are accounted for by applying the acquisition method in accordance with ASC 805, “Business Combinations.” Under the acquisition method, identifiable assets acquired and liabilities assumed and any non-controlling interest in the acquiree at the acquisition date are measured at their fair values as of that date. Any excess of the purchase price over fair value of net assets acquired is recorded as goodwill. To the extent the fair value of net assets acquired, including any other identifiable intangible assets, exceeds the purchase price, a bargain purchase gain is recognized. Results of operations of acquired entities are included in the consolidated statements of income from the date of acquisition. |
Off-balance sheet financial instruments | Off-balance sheet financial instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded, unless considered derivatives. For loan commitments that are not accounted for as derivatives and when the obligation is not unconditionally cancellable by the Company, the Company applies the CECL methodology to estimate the expected credit loss on off-balance sheet commitments. The estimate of expected credit losses for off-balance sheet credit commitments is recognized as a liability. When the loan is funded, an allowance for expected credit losses is estimated for that loan using the CECL methodology, and the liability for off-balance sheet commitments is reduced. When applying the CECL methodology to estimate the expected credit loss, the Company considers the likelihood that funding will occur, the contractual period of exposure to credit loss, the risk of loss, historical loss experience, and current conditions along with expectations of future economic conditions. |
Premises and equipment and other long-lived assets. | Premises and equipment and other long-lived assets Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Provisions for depreciation are computed principally on the straight-line method and are charged to occupancy expense over the estimated useful lives of the assets. Maintenance agreements are amortized to expense over the period of time covered by the agreement. Costs of major additions, replacements or improvements are capitalized while expenditures for maintenance and repairs are charged to expense as incurred. For financial statement purposes, the estimated useful life for premises is the lesser of the remaining useful life per third- party appraisal or forty years, for furniture, fixtures and equipment the estimated useful life is three Premises and equipment and other long-lived assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. No long-lived assets were deemed to be impaired at December 31, 2023 or 2022. |
Other real estate owned | Other real estate owned Real estate acquired through, or in lieu of, loan foreclosure is initially recorded at fair value less the estimated cost to sell at the date of foreclosure, which may establish a new cost basis. Other real estate owned may also include excess facilities and properties held for sale as described in Note 5, “Other real estate owned.” Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to satisfy the loan. After initial measurement, valuations are periodically performed by management and the asset is carried at the lower of carrying amount or fair value less costs to sell. Revenue and expenses from operations are included in other noninterest income and noninterest expenses. Losses due to the valuation of the property are included in gain (loss) on sales or write-downs of other real estate owned. |
Leases | Leases The Company leases certain banking, mortgage and operations locations. The Company records leases on the balance sheet in the form of a lease liability for the present value of future minimum payments under the lease terms and a right-of-use asset equal to the lease liability adjusted for items such as deferred or prepaid rent, incentive liabilities, leasehold intangibles and any impairment of the right-of-use asset. In determining whether a contract contains a lease, management conducts an analysis at lease inception to ensure an asset was specifically identified and the Company has control of use of the asset. The Company considers a lease to be a finance lease if future minimum lease payments amount to greater than 90% of the asset's fair value or if the lease term is equal to or greater than 75% of the asset's estimated economic useful life. The Company does not record leases on the consolidated balance sheets that are classified as short term (less than one year). Additionally, the Company has not recorded equipment leases on the consolidated balance sheets as these are not material to the Company. At lease inception, the Company determines the lease term by adding together the minimum lease term and all optional renewal periods that it is reasonably certain to renew. This determination is at management's full discretion and is made through consideration of the asset, market conditions, competition and entity based economic conditions, among other factors. The lease term is used in the economic life test and also to calculate straight-line rent expense. The depreciable life of leasehold improvements is limited by the estimated lease term, including renewals. Operating leases are expensed on a straight-line basis over the life of the lease beginning when the lease commences. Rent expense and variable lease expense are included in occupancy and equipment expense on the Company's consolidated statements of income. The Company's variable lease expense includes rent escalators that are based on the Consumer Price Index or market conditions and include items such as common area maintenance, utilities, parking, property taxes, insurance and other costs associated with the lease. The Company recognizes a right-of-use asset and a finance lease liability at the lease commencement date on the estimated present value of lease payments over the lease term for finance leases. The amortization of the right-of-use asset is expensed through occupancy and equipment expense and the interest on the lease liability is expensed through interest expense on borrowings on the Company's consolidated statements of income. There are no residual value guarantees or restrictions or covenants imposed by leases that will impact the Company's ability to pay dividends or cause the Company to incur additional expenses. The discount rate used in determining the lease liability is based upon incremental borrowing rates the Company could obtain for similar loans as of the date of commencement or renewal. |
Mortgage servicing rights | Mortgage servicing rights The Company accounts for its mortgage servicing rights at fair value at each reporting date with changes in the fair value reported in earnings in the period in which changes occur. The Company retains the right to service certain mortgage loans that it sells to secondary market investors. These mortgage servicing rights are recognized as a separate asset on the date the corresponding mortgage loan is sold. The retained mortgage servicing right is initially recorded at the fair value of future net cash flows expected to be realized for performing servicing activities. Fair value is determined using an income approach with various assumptions including expected cash flows, prepayment speeds, market discount rates, servicing costs, and other factors. Subsequent changes in fair value, including the write-downs due to payoffs and paydowns, are recorded in earnings in Mortgage banking income. |
Transfers of financial assets | Transfers of financial assetsTransfers of financial assets are accounted for as sales when control over the transferred assets is surrendered. Control is generally considered to have been surrendered when 1) the transferred assets are legally isolated from the Company or its consolidated affiliates, even in bankruptcy or other receivership, 2) the transferee has the right to pledge or exchange the assets with no conditions that constrain the transferee and provide more than a trivial benefit to the Company, and 3) the Company does not maintain the obligation or unilateral ability to reclaim or repurchase the assets. If these sale criteria are met, the transferred assets are removed from the Company’s balance sheet and a gain or loss on sale is recognized on the consolidated statements of income. If not met, the transfer is recorded as a secured borrowing, and the assets remain on the Company’s consolidated balance sheets, the proceeds from the transaction are recognized as a liability, and gain or loss on sale is deferred until the sale criterion are achieved. |
Goodwill and other intangibles | Goodwill and other intangibles Goodwill represents the excess of the purchase price over the estimated fair value of identifiable net assets associated with acquisition transactions. Goodwill is assigned to the Company’s reporting units, Banking or Mortgage, and tested for impairment annually , or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value. As part of its testing, the Company may elect to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the results of the qualitative assessment indicate that more likely than not a reporting unit’s fair value is less than its carrying amount, the Company determines the fair value of the respective reporting unit (through the application of various quantitative valuation methodologies) relative to its carrying amount to determine whether quantitative indicators of potential impairment are present. The Company may also elect to bypass the qualitative assessment and begin with the quantitative assessment. If the results of the quantitative assessment indicate that the fair value of the reporting unit is below its carrying amount, the Company will recognize an impairment loss in noninterest expense for the amount that the reporting unit’s carrying amount exceeds its fair value (up to the amount of goodwill recorded). No impairment charges were recognized in either reporting units during the year ended December 31, 2023. Other intangible assets consist of core deposit intangible assets arising from whole bank and branch acquisitions in addition to a customer trust intangible. All intangible assets are initially measured at fair value and then amortized over their estimated useful lives. See Note 6, “Goodwill and intangible assets” for additional information on goodwill and other intangibles. |
Income taxes | Income taxes Income tax expense is the total of the current year income tax due and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. |
Derivative financial instruments and hedging activities | Derivative financial instruments and hedging activities A derivative is a financial instrument that derives its cash flows, and therefore its value, by reference to an underlying instrument, index or referenced interest rate. These instruments include interest rates swaps, caps, floors, financial forwards and futures contracts. The Company mainly uses derivatives to manage economic risk related to mortgage loans, long-term debt, and other funding sources. The Company also uses derivatives to facilitate transactions on behalf of its customers. All derivative instruments are recognized on the Company’s consolidated balance sheets at their fair value. The Company does not offset fair value amounts under master netting agreements. Fair values are estimated using pricing models and current market data. On the date the derivative instrument is entered into, the Company designates the derivative as (1) a fair value hedge, (2) a cash flow hedge, or (3) a derivative with no hedge accounting designation. Changes in the fair value of a derivative instrument that is highly effective and that is designated and qualifies as a fair value hedge, along with the gain or loss on the hedged asset or liability that is attributable to the hedged risk (including losses or gains on firm commitments), are recorded in earnings. Changes in the fair value of a derivative instrument that is highly effective and that is designated and qualifies as a cash flow hedge are recorded in accumulated other comprehensive income, until earnings are affected by the variability of cash flows (e.g., when period settlements on a variable-rate asset or liability are recorded in earnings). Changes in the fair value of a derivative with no hedge accounting designation and settlements on the instrument are reported in earnings. The Company formally documents all relationships between hedging instruments and hedge items, as well as its risk management objective and strategy for undertaking various hedge transactions. This process includes linking all derivative instruments that are designated as fair value or cash flow hedges to specific assets or liabilities on the Company’s consolidated balance sheets, or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. The Company discontinues hedge accounting prospectively when: (1) it is determined that the derivative instrument is no longer highly effective in offsetting changes in the fair value or cash flows of a hedged item (including firm commitments or forecasted transactions); (2) the derivative instrument expires or is sold, terminated or exercised; (3) the derivative instrument is de-designated as a hedging instrument because it is unlikely that a forecasted transaction will occur; (4) a hedged firm commitment no longer meets the definition of a firm commitment; or (5) management determines that designation of the derivative instrument as a hedging instrument is no longer appropriate. |
Comprehensive income | Comprehensive income Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on available-for-sale securities and derivatives designated as cash flow hedges, net of taxes. |
Loss contingencies | Loss contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are such matters that will have a material effect on the consolidated financial statements. |
Earnings per common share | Earnings per common share Basic EPS excludes dilution and is computed by dividing earnings attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS includes the dilutive effect of additional potential common shares issuable under the restricted stock units granted but not yet vested and distributable. Diluted EPS is computed by dividing earnings attributable to common shareholders by the weighted average number of common shares outstanding for the year, plus an incremental number of common-equivalent shares computed using the treasury stock method. |
Segment reporting | Segment reporting ASC 820, “Segment Reporting,” requires information be reported about a company's reporting segments using a “management approach.” Identifiable reporting segments are defined as those revenue-producing components for which discrete financial information is utilized internally and which are subject to evaluation by the chief operating decision maker in making resource allocation decisions. Based on this guidance, the Company has identified two reporting segments - Banking and Mortgage. The Banking segment, the Company's primary segment, provides a full range of deposit and lending services to corporate, commercial and consumer customers. The Company also originates conforming residential mortgage loans through the Mortgage segment which engages in servicing and sale of mortgage loans through the secondary markets. Certain financial information has been presented in Note 18, “Segment reporting.” |
Stock-based compensation | Stock-based compensation The Company grants RSUs under compensation arrangements for the benefit of certain employees, executive officers, and directors. Restricted stock unit grants are subject to time-based vesting. The total number of RSUs granted represents the maximum number of restricted stock units eligible to vest based upon the service conditions set forth in the grant agreements. The Company awards annual grants of PSUs to certain employees and executive officers. Under the terms of a PSU award, the number of units that will vest and convert to shares of common stock will be based on the extent to which the Company achieves specified performance criteria relative to a predefined peer group during a fixed three-year performance period. |
Subsequent events | Subsequent events In accordance with ASC 855, “Subsequent Events,” the Company has evaluated events and transactions that occurred after December 31, 2023 through the date of the issued consolidated financial statements for potential recognition and disclosure. |
Recently adopted accounting standards and Newly issued not yet effective accounting standards | Recently adopted accounting standards In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 is intended to provide relief for companies preparing for discontinuation of interest rates based on LIBOR. The ASU provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or other reference rates expected to be discontinued. ASU 2020-04 also provides for a one-time sale and/or transfer to AFS or trading to be made for held-to-maturity debt securities that both reference an eligible reference rate and were classified as held-to-maturity before January 1, 2020. ASU 2020-04 was effective for all entities as of March 12, 2020 and through December 31, 2022. Companies can apply the ASU as of the beginning of the interim period that includes March 12, 2020 or any date thereafter. The guidance requires companies to apply the guidance prospectively to contract modifications and hedging relationships while the one-time election to sell and/or transfer debt securities classified as held-to-maturity may be made any time after March 12, 2020. In December 2022, the FASB issued ASU 2022-06, “Reference rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848” to extend the date to December 31, 2024 for companies to apply the relief in Topic 848. The Company has implemented its transition plan away from LIBOR following the benchmark's discontinuation effective June 30, 2023. The application of this guidance did not have a material impact to the consolidated financial statements or related disclosures. In March 2022, the FASB issued ASU 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method,” to expand the current single-layer method of electing hedge accounting to allow multiple hedged layers of a single closed portfolio under the method. To reflect that expansion, the last-of-layer method is renamed the portfolio layer method. The amendments in this update are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted on any date on or after the issuance of ASU 2022-01 for any entity that has adopted the amendments in ASU 2017-12 for the corresponding period. The Company adopted the update effective January 1, 2023. The adoption of this standard did not have an impact on the consolidated financial statements or disclosures. Additionally, in March 2022, the FASB issued ASU 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” related to troubled debt restructurings and vintage disclosures for financing receivables. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan modifications and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current-period gross write-offs for financing receivables by year of origination in the vintage disclosures. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The Company prospectively adopted the amendment effective January 1, 2023 and updated its disclosures beginning with the first quarter of 2023. Refer to Note 3 for further information. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. Newly issued not yet effective accounting standards In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.” The FASB issued this update to clarify the guidance in ASC 820, “Fair Value Measurement,” when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, to amend a related illustrative example, and to introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The Company adopted this update effective January 1, 2024. The adoption did not have an impact on the Company's consolidated financial statements or related disclosures. In March 2023, the FASB issued ASU 2023-01, “Leases (Topic 842): Common Control Arrangements” as part of the Post-Implementation Review process of ASC 842, “Leases,” around related party arrangements between entities under common control. Under previous guidance, a lessee is generally required to amortize leasehold improvements that it owns over the shorter of the useful life of those improvements or the lease term. However, due to the nature of leasehold improvements made under leases between entities under common control, ASU 2023-01 requires a lessee in a common-control arrangement to amortize such leasehold improvements that it owns over the improvements' useful life to the common control group, regardless of the lease term. The Company adopted this standard on January 1, 2024 on a prospective basis. The adoption of this standard did not have a material impact on the Company's consolidated financial statements or related disclosures. Additionally, in March 2023, the FASB issued ASU 2023-02, “Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” The amendments in this update permit reporting entities to elect to account for tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. The Company adopted this standard effective January 1, 2024. The adoption of this accounting pronouncement did not have an impact on the Company's historical consolidated financial statements but could influence the Company's decisions with respect to investments in certain tax credits prospectively. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The amendments in this update are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The ASU requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker, a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the chief operating decision maker when deciding how to allocate resources. The ASU also requires all annual disclosures currently required by Topic 280, “Segment Reporting,” to be included in interim periods. This update is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and retrospective application is required for all periods presented. The Company is evaluating the impact this will have on the Company's consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-08, “Intangibles – Goodwill and Other-Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets.” This update requires entities to present crypto assets measured at fair value separately from other intangible assets on the balance sheet and reflect changes from remeasurement in the net income. Additionally, an entity that receives crypto assets as noncash consideration in the ordinary course of business and converts them nearly immediately into cash is required to classify those cash receipts as cash flows from operating activities. Lastly, the update requires entities to provide interim and annual disclosures about the types of crypto assets they hold and any changes in their holdings of crypto assets. While the Company does not currently hold or facilitate transactions with crypto assets, the Company is evaluating the potential future financial statement and disclosure impact from adopting this guidance when it becomes applicable based on the Company's crypto asset activities. Additionally, in December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The amendments in this update enhance the transparency and decision usefulness of income tax disclosures. This ASU requires disclosures of specific categories and disaggregation of information in the rate reconciliation table. The ASU also requires disclosure of disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. The requirements of the ASU are effective for annual periods beginning after December 15, 2024. Early adoption is permitted and the amendments should be applied on a prospective basis. Retrospective application is permitted. The Company is currently evaluating the effect that ASU 2023-09 will have on its disclosures. |
Fair value of financial instruments | Fair value of financial instruments FASB ASC 820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820-10 also establishes a framework for measuring the fair value of assets and liabilities according to a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that are derived from assumptions based on management’s estimate of assumptions that market participants would use in pricing the asset or liability based on the best information available under the circumstances. The hierarchy is broken down into the following three levels, based on the reliability of inputs: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date. Level 2: Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs for assets or liabilities that are derived from assumptions based on management’s estimate of assumptions that market participants would use in pricing the assets or liabilities. The Company records the fair values of financial assets and liabilities on a recurring and nonrecurring basis using the following methods and assumptions: Investment securities Investment securities are recorded at fair value on a recurring basis. Fair values for securities are based on quoted market prices, where available. If quoted prices are not available, fair values are based on quoted market prices of similar instruments or are determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the pricing relationship or correlation among other benchmark quoted securities. Investment securities valued using quoted market prices of similar instruments or that are valued using matrix pricing are classified as Level 2. When significant inputs to the valuation are unobservable, the available-for-sale debt securities are classified within Level 3 of the fair value hierarchy. Where no active market exists for a security or other benchmark securities, fair value is estimated by the Company with reference to discount margins for other high-risk securities. Loans held for sale Mortgage loans held for sale are carried at fair value determined using current secondary market prices for loans with similar characteristics, that is, using Level 2 inputs. GNMA optional repurchase loans recorded as held for sale loans are carried at their principal balance. For commercial loans held for sale, fair value is determined using an income approach with various assumptions including expected cash flows, market discount rates, credit metrics and collateral value when appropriate. As such, these are considered Level 3. Derivatives The fair value of the Company's interest rate swap agreements to facilitate customer transactions are based upon fair values provided from entities that engage in interest rate swap activity and is based upon projected future cash flows and interest rates. The fair value of interest rate lock commitments associated with the mortgage pipeline is based on fees currently charged to enter into similar agreements, and for fixed-rate commitments, the difference between current levels of interest rates and the committed rates is also considered. The fair values of the Company's designated cash flow and fair value hedges are determined by calculating the difference between the discounted fixed rate cash flows and the discounted variable rate cash flows. The fair values of both the Company's hedges, including designated cash flow hedges and designated fair value hedges are based on pricing models that utilize observable market inputs. These financial instruments are classified as Level 2. OREO OREO is comprised of commercial and residential real estate obtained in partial or total satisfaction of loan obligations and excess land and facilities held for sale. OREO acquired in settlement of indebtedness is recorded at the lower of the carrying amount of the loan or the fair value of the real estate less costs to sell. Fair value is determined on a nonrecurring basis based on appraisals by qualified licensed appraisers and is adjusted for management’s estimates of costs to sell and holding period discounts. The valuations are classified as Level 3. Mortgage servicing rights MSRs are carried at fair value. Fair value is determined using an income approach with various assumptions including expected cash flows, market discount rates, prepayment speeds, servicing costs, and other factors. As such, MSRs are considered Level 3. Collateral- dependent loans Collateral-dependent loans are loans for which, based on current information and events, the Company has determined foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the loan to be provided substantially through the operation or sale of the collateral and it is probable that the creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. Collateral-dependent loans are classified as Level 3. Other real estate owned acquired in settlement of indebtedness is recorded at fair value of the real estate less estimated costs to sell. Subsequently, it may be necessary to record nonrecurring fair value adjustments for declines in fair value. Any write-downs based on the asset's fair value at the date of foreclosure are charged to the allowance for credit losses. Appraisals for both collateral-dependent loans and other real estate owned are performed by certified appraisers whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the lending administrative department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry wide statistics. Collateral-dependent loans that are dependent on recovery through sale of equipment, such as farm equipment, automobiles and aircrafts are generally valued based on public source pricing or subscription services while more complex assets are valued through leveraging brokers who have expertise in the collateral involved. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Basic and Diluted Earnings Per Common Share Calculation | The following is a summary of the basic and diluted earnings per common share calculation for each of the periods presented: Years Ended December 31, 2023 2022 2021 Basic earnings per common share: Net income applicable to FB Financial Corporation $ 120,224 $ 124,555 $ 190,285 Dividends paid on and undistributed earnings allocated to — — — Earnings available to common shareholders $ 120,224 $ 124,555 $ 190,285 Weighted average basic shares outstanding 46,781,214 47,113,470 47,431,102 Basic earnings per common share $ 2.57 $ 2.64 $ 4.01 Diluted earnings per common share: Earnings available to common shareholders $ 120,224 $ 124,555 $ 190,285 Weighted average basic shares outstanding 46,781,214 47,113,470 47,431,102 Weighted average diluted shares contingently issuable (1) 41,578 126,321 524,778 Weighted average diluted shares outstanding 46,822,792 47,239,791 47,955,880 Diluted earnings per common share $ 2.57 $ 2.64 $ 3.97 (1) |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost of Securities and Fair Values | The following tables summarize the amortized cost, allowance for credit losses and fair value of the available-for-sale debt securities and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive loss at December 31, 2023 and 2022: December 31, 2023 Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses for investments Fair Value Investment Securities Available-for-sale debt securities U.S. government agency securities $ 204,663 $ 470 $ (1,177) $ — $ 203,956 Mortgage-backed securities - residential 1,057,389 — (160,418) — 896,971 Mortgage-backed securities - commercial 18,186 — (1,225) — 16,961 Municipal securities 263,312 370 (21,419) — 242,263 U.S. Treasury securities 111,729 — (3,233) — 108,496 Corporate securities 3,500 — (174) — 3,326 Total $ 1,658,779 $ 840 $ (187,646) $ — $ 1,471,973 December 31, 2022 Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses for investments Fair Value Investment Securities Available-for-sale debt securities U.S. government agency securities $ 45,167 $ — $ (5,105) $ — $ 40,062 Mortgage-backed securities - residential 1,224,522 — (190,329) — 1,034,193 Mortgage-backed securities - commercial 19,209 — (1,565) — 17,644 Municipal securities 295,375 458 (31,413) — 264,420 U.S. Treasury securities 113,301 — (5,621) — 107,680 Corporate securities 8,000 — (813) — 7,187 Total $ 1,705,574 $ 458 $ (234,846) $ — $ 1,471,186 |
Schedule of Gross Unrealized Losses | The following tables show gross unrealized losses for which an allowance for credit losses has not been recorded at December 31, 2023 and 2022, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: December 31, 2023 Less than 12 months 12 months or more Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss U.S. government agency securities $ 25,923 $ (21) $ 14,040 $ (1,156) $ 39,963 $ (1,177) Mortgage-backed securities - residential — — 896,971 (160,418) 896,971 (160,418) Mortgage-backed securities - commercial — — 16,961 (1,225) 16,961 (1,225) Municipal securities 14,480 (148) 188,669 (21,271) 203,149 (21,419) U.S. Treasury securities — — 108,496 (3,233) 108,496 (3,233) Corporate securities — — 3,326 (174) 3,326 (174) Total $ 40,403 $ (169) $ 1,228,463 $ (187,477) $ 1,268,866 $ (187,646) December 31, 2022 Less than 12 months 12 months or more Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss U.S. government agency securities $ 23,791 $ (2,802) $ 16,271 $ (2,303) $ 40,062 $ (5,105) Mortgage-backed securities - residential 316,656 (32,470) 717,537 (157,859) 1,034,193 (190,329) Mortgage-backed securities - commercial 11,104 (968) 6,540 (597) 17,644 (1,565) Municipal securities 196,419 (26,811) 36,726 (4,602) 233,145 (31,413) U.S. Treasury securities 94,248 (4,122) 13,432 (1,499) 107,680 (5,621) Corporate securities 4,008 (492) 3,179 (321) 7,187 (813) Total $ 646,226 $ (67,665) $ 793,685 $ (167,181) $ 1,439,911 $ (234,846) |
Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | December 31, 2023 2022 Available-for-sale Available-for-sale Amortized cost Fair value Amortized cost Fair value Due in one year or less $ 64,776 $ 64,279 $ 4,277 $ 4,225 Due in one to five years 75,996 71,801 161,556 152,181 Due in five to ten years 51,162 49,630 61,290 57,859 Due in over ten years 391,270 372,331 234,720 205,084 583,204 558,041 461,843 419,349 Mortgage-backed securities - residential 1,057,389 896,971 1,224,522 1,034,193 Mortgage-backed securities - commercial 18,186 16,961 19,209 17,644 Total debt securities $ 1,658,779 $ 1,471,973 $ 1,705,574 $ 1,471,186 |
Schedule of Sales and Other Dispositions of Available-for-Sale Securities | Sales and other dispositions of AFS debt securities were as follows: Years Ended December 31, 2023 2022 2021 Proceeds from sales $ 100,463 $ 1,218 $ 8,855 Proceeds from maturities, prepayments and calls 128,206 204,748 296,256 Gross realized gains 45 4 127 Gross realized losses 14,119 3 1 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses on Loans HFI (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Loans Outstanding by Class of Financing Receivable | Loans outstanding as of December 31, 2023 and 2022, by class of financing receivable are as follows: December 31, 2023 2022 Commercial and industrial $ 1,720,733 $ 1,645,783 Construction 1,397,313 1,657,488 Residential real estate: 1-to-4 family mortgage 1,568,552 1,573,121 Residential line of credit 530,912 496,660 Multi-family mortgage 603,804 479,572 Commercial real estate: Owner-occupied 1,232,071 1,114,580 Non-owner occupied 1,943,525 1,964,010 Consumer and other 411,873 366,998 Gross loans 9,408,783 9,298,212 Less: Allowance for credit losses on loans HFI (150,326) (134,192) Net loans $ 9,258,457 $ 9,164,020 |
Schedule of Credit Quality of Loan Portfolio by Year of Origination | The following tables present the credit quality of the Company's commercial type loan portfolio as of December 31, 2023 and 2022 and the gross charge-offs for the year ended December 31, 2023 by year of origination. Revolving loans are presented separately. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for the purposes of the tables below. Effective January 1, 2023, the Company adopted the accounting guidance in ASU 2022-02 which requires the presentation of gross charge-offs by year of origination. The Company prospectively adopted ASU 2022-02; therefore, prior period activity of gross charge-offs by year of origination are not included in the below tables. As of and for the year ended December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Pass $ 225,734 $ 255,921 $ 151,492 $ 39,897 $ 70,302 $ 73,415 $ 839,918 $ 1,656,679 Special Mention — 17,947 3,083 — 151 108 7,549 28,838 Classified 457 4,253 3,075 3,027 254 6,129 18,021 35,216 Total 226,191 278,121 157,650 42,924 70,707 79,652 865,488 1,720,733 Current-period gross 14 7 201 22 — 87 131 462 Construction Pass 179,929 677,387 148,312 46,697 39,140 49,954 208,491 1,349,910 Special Mention 1 4,659 2,943 1,202 — 690 12,000 21,495 Classified — 2,349 1,484 6,620 — — 15,455 25,908 Total 179,930 684,395 152,739 54,519 39,140 50,644 235,946 1,397,313 Current-period gross — — — — — — — — Residential real estate: Multi-family mortgage Pass 29,982 151,495 223,889 92,745 29,933 43,479 31,209 602,732 Special Mention — — — — — — — — Classified — — — — — 1,072 — 1,072 Total 29,982 151,495 223,889 92,745 29,933 44,551 31,209 603,804 Current-period gross — — — — — — — — Commercial real estate: Owner occupied Pass 118,030 261,196 231,241 115,397 151,146 281,253 53,970 1,212,233 Special Mention — 1,297 1,827 — 154 2,617 — 5,895 Classified — 6,305 16 — 760 5,789 1,073 13,943 Total 118,030 268,798 233,084 115,397 152,060 289,659 55,043 1,232,071 Current-period gross — — 144 — — — — 144 Non-owner occupied Pass 47,026 474,560 478,878 117,429 178,448 580,168 43,577 1,920,086 Special Mention — — 3,975 — — 10,435 — 14,410 Classified — — 1,001 — 381 7,647 — 9,029 Total 47,026 474,560 483,854 117,429 178,829 598,250 43,577 1,943,525 Current-period gross — — — — — — — — Total commercial loan types Pass 600,701 1,820,559 1,233,812 412,165 468,969 1,028,269 1,177,165 6,741,640 Special Mention 1 23,903 11,828 1,202 305 13,850 19,549 70,638 Classified 457 12,907 5,576 9,647 1,395 20,637 34,549 85,168 Total $ 601,159 $ 1,857,369 $ 1,251,216 $ 423,014 $ 470,669 $ 1,062,756 $ 1,231,263 $ 6,897,446 Current-period gross $ 14 $ 7 $ 345 $ 22 $ — $ 87 $ 131 $ 606 As of December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Pass $ 396,643 $ 204,000 $ 67,231 $ 90,894 $ 39,780 $ 62,816 $ 762,717 $ 1,624,081 Special Mention 125 7 — 160 143 771 2,520 3,726 Classified 65 823 1,916 1,651 273 6,913 6,335 17,976 Total 396,833 204,830 69,147 92,705 40,196 70,500 771,572 1,645,783 Construction Pass 682,885 495,723 142,233 84,599 17,360 44,326 188,906 1,656,032 Special Mention — — 15 — — 707 — 722 Classified 80 309 — — — 345 — 734 Total 682,965 496,032 142,248 84,599 17,360 45,378 188,906 1,657,488 Residential real estate: Multi-family mortgage Pass 142,912 147,168 96,819 33,547 6,971 37,385 13,604 478,406 Special Mention — — — — — — — — Classified — — — — — 1,166 — 1,166 Total 142,912 147,168 96,819 33,547 6,971 38,551 13,604 479,572 Commercial real estate: Owner occupied Pass 237,862 223,883 110,748 148,405 66,101 246,414 57,220 1,090,633 Special Mention 101 683 — 168 2,225 1,258 5,000 9,435 Classified — 1,293 224 4,589 1,276 7,018 112 14,512 Total 237,963 225,859 110,972 153,162 69,602 254,690 62,332 1,114,580 Non-owner occupied Pass 467,360 440,319 131,497 159,205 210,752 473,607 60,908 1,943,648 Special Mention — — — — 82 2,459 — 2,541 Classified — 2,258 — 146 3,270 12,147 — 17,821 Total 467,360 442,577 131,497 159,351 214,104 488,213 60,908 1,964,010 Total commercial loan types Pass 1,927,662 1,511,093 548,528 516,650 340,964 864,548 1,083,355 6,792,800 Special Mention 226 690 15 328 2,450 5,195 7,520 16,424 Classified 145 4,683 2,140 6,386 4,819 27,589 6,447 52,209 Total $ 1,928,033 $ 1,516,466 $ 550,683 $ 523,364 $ 348,233 $ 897,332 $ 1,097,322 $ 6,861,433 The following tables present the credit quality by classification (performing or nonperforming) of the Company's consumer type loan portfolio as of December 31, 2023 and 2022 and the gross charge-offs for the year ended December 31, 2023 by year of origination. Revolving loans are presented separately. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for the purposes of the tables below. Effective January 1, 2023, the Company adopted the accounting guidance in ASU 2022-02 which requires the presentation of gross charge-offs by year of origination. The Company prospectively adopted ASU 2022-02; therefore, prior period balances for gross charge-offs by year of origination are not included in the below tables. As of and for the year ended December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Residential real estate: 1-to-4 family mortgage Performing $ 198,537 $ 500,628 $ 399,338 $ 145,484 $ 81,905 $ 226,587 $ — $ 1,552,479 Nonperforming 76 2,565 4,026 3,846 690 4,870 — 16,073 Total 198,613 503,193 403,364 149,330 82,595 231,457 — 1,568,552 Current-period gross — 18 — 4 — 24 — 46 Residential line of credit Performing — — — — — — 528,439 528,439 Nonperforming — — — — — — 2,473 2,473 Total — — — — — — 530,912 530,912 Current-period gross — — — — — — — — Consumer and other Performing 104,399 91,557 45,187 34,928 24,040 93,833 6,890 400,834 Nonperforming 528 1,025 2,562 1,819 1,264 3,841 — 11,039 Total 104,927 92,582 47,749 36,747 25,304 97,674 6,890 411,873 Current-period gross 1,463 564 139 201 110 372 2 2,851 Total consumer type loans Performing 302,936 592,185 444,525 180,412 105,945 320,420 535,329 2,481,752 Nonperforming 604 3,590 6,588 5,665 1,954 8,711 2,473 29,585 Total $ 303,540 $ 595,775 $ 451,113 $ 186,077 $ 107,899 $ 329,131 $ 537,802 $ 2,511,337 Current-period gross $ 1,463 $ 582 $ 139 $ 205 $ 110 $ 396 $ 2 $ 2,897 As of December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Residential real estate: 1-to-4 family mortgage Performing $ 568,210 $ 448,401 $ 160,715 $ 93,548 $ 68,113 $ 211,019 $ — $ 1,550,006 Nonperforming 1,227 5,163 5,472 1,778 2,044 7,431 — 23,115 Total 569,437 453,564 166,187 95,326 70,157 218,450 — 1,573,121 Residential line of credit Performing — — — — — — 495,129 495,129 Nonperforming — — — — — — 1,531 1,531 Total — — — — — — 496,660 496,660 Consumer and other Performing 118,637 56,779 41,008 29,139 26,982 82,318 4,175 359,038 Nonperforming 166 1,396 1,460 906 1,507 2,525 — 7,960 Total 118,803 58,175 42,468 30,045 28,489 84,843 4,175 366,998 Total consumer type loans Performing 686,847 505,180 201,723 122,687 95,095 293,337 499,304 2,404,173 Nonperforming 1,393 6,559 6,932 2,684 3,551 9,956 1,531 32,606 Total $ 688,240 $ 511,739 $ 208,655 $ 125,371 $ 98,646 $ 303,293 $ 500,835 $ 2,436,779 |
Schedule of Analysis of Aging by Class of Financing Receivable | The following tables represent an analysis of the aging by class of financing receivable as of December 31, 2023 and 2022: December 31, 2023 30-89 days 90 days or Nonaccrual Loans current Total Commercial and industrial $ 732 $ — $ 21,730 $ 1,698,271 $ 1,720,733 Construction 6,579 165 2,872 1,387,697 1,397,313 Residential real estate: 1-to-4 family mortgage 21,768 9,355 6,718 1,530,711 1,568,552 Residential line of credit 2,464 1,337 1,136 525,975 530,912 Multi-family mortgage — — 32 603,772 603,804 Commercial real estate: Owner occupied 480 — 3,188 1,228,403 1,232,071 Non-owner occupied 4,059 — 3,351 1,936,115 1,943,525 Consumer and other 10,961 1,836 9,203 389,873 411,873 Total $ 47,043 $ 12,693 $ 48,230 $ 9,300,817 $ 9,408,783 December 31, 2022 30-89 days 90 days or Nonaccrual Loans current on payments and accruing interest Total Commercial and industrial $ 1,650 $ 136 $ 1,307 $ 1,642,690 $ 1,645,783 Construction 1,246 — 389 1,655,853 1,657,488 Residential real estate: 1-to-4 family mortgage 15,470 16,639 6,476 1,534,536 1,573,121 Residential line of credit 772 131 1,400 494,357 496,660 Multi-family mortgage — — 42 479,530 479,572 Commercial real estate: Owner occupied 1,948 — 5,410 1,107,222 1,114,580 Non-owner occupied 102 — 5,956 1,957,952 1,964,010 Consumer and other 10,108 1,509 6,451 348,930 366,998 Total $ 31,296 $ 18,415 $ 27,431 $ 9,221,070 $ 9,298,212 |
Schedule of Amortized Cost, Related Allowance and Interest Income of Non-accrual Loans | December 31, 2023 Nonaccrual Nonaccrual Related Year to date Interest Income Commercial and industrial $ 3,678 $ 18,052 $ 5,011 $ 2,451 Construction 2,267 605 59 335 Residential real estate: 1-to-4 family mortgage 1,444 5,274 103 410 Residential line of credit 685 451 8 141 Multi-family mortgage — 32 1 3 Commercial real estate: Owner occupied 2,920 268 15 514 Non-owner occupied 3,316 35 1 1,221 Consumer and other — 9,203 498 1,053 Total $ 14,310 $ 33,920 $ 5,696 $ 6,128 December 31, 2022 Nonaccrual Nonaccrual Related Year to date Interest Income Commercial and industrial $ 790 $ 517 $ 10 $ 181 Construction — 389 7 28 Residential real estate: 1-to-4 family mortgage 2,834 3,642 78 274 Residential line of credit 1,134 266 4 136 Multi-family mortgage 1 41 1 3 Commercial real estate: Owner occupied 5,200 210 1 232 Non-owner occupied 5,755 201 5 332 Consumer and other — 6,451 327 358 Total $ 15,714 $ 11,717 $ 433 $ 1,544 |
Schedule of Financial Effect of TDRs | The following table presents the financial effect of TDRs recorded during the periods indicated: Year Ended December 31, 2022 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 3 $ 612 $ 522 $ — Commercial real estate: Residential real estate: 1-to-4 family mortgage 3 391 707 — Residential line of credit 1 49 49 — Consumer and other 2 23 23 — Total 9 $ 1,075 $ 1,301 $ — Year Ended December 31, 2021 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 8 $ 15,430 $ 15,430 $ 446 Construction — — — — Commercial real estate: Owner occupied 7 5,209 5,209 — Non-owner occupied 1 11,997 11,997 — Residential real estate: 1-to-4 family mortgage 3 945 945 — Residential line of credit 3 485 485 — Multi-family mortgage 1 49 49 — Total 23 $ 34,115 $ 34,115 $ 446 |
Schedule of Individually Assessed Allowance for Credit Losses for Collateral Dependent Loans | For loans for which the repayment (based on the Company's assessment) is expected to be provided substantially through the operation or sale of collateral and the borrower is experiencing financial difficulty, the following tables present the loans and the corresponding individually assessed allowance for credit losses by class of financing receivable. Significant changes in individually assessed reserves are due to changes in the valuation of the underlying collateral in addition to changes in accrual and past due status. December 31, 2023 Type of Collateral Real Estate Farmland Business Assets Total Individually assessed allowance for credit loss Commercial and industrial $ — $ 363 $ 20,599 $ 20,962 $ 4,946 Construction 8,224 — — 8,224 30 Residential real estate: 1-to-4 family mortgage 5,317 — — 5,317 129 Residential line of credit 1,245 — — 1,245 10 Commercial real estate: Owner occupied 1,975 1,160 — 3,135 — Non-owner occupied 3,316 — — 3,316 — Consumer and other 112 — — 112 21 Total $ 20,189 $ 1,523 $ 20,599 $ 42,311 $ 5,136 December 31, 2022 Type of Collateral Real Estate Business Assets Total Individually assessed allowance for credit loss Commercial and industrial $ 2,596 $ — $ 2,596 $ — Residential real estate: 1-to-4 family mortgage 4,467 — 4,467 194 Residential line of credit 1,135 — 1,135 — Commercial real estate: Owner occupied 5,424 — 5,424 — Non-owner occupied 5,755 — 5,755 — Consumer and other 134 — 134 — Total $ 19,511 $ — $ 19,511 $ 194 |
Schedule of Changes in Allowance for Credit Losses on Loans HFI by Class of Financing Receivable | The following tables provide the changes in the allowance for credit losses on loans HFI by class of financing receivable for the years ended December 31, 2023, 2022, and 2021: Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Year Ended December 31, 2023 Beginning balance - December 31, 2022 $ 11,106 $ 39,808 $ 26,141 $ 7,494 $ 6,490 $ 7,783 $ 21,916 $ 13,454 $ 134,192 Provision for (reversal of) 8,682 (4,446) 310 1,973 2,352 2,905 (784) 5,746 16,738 Recoveries of loans previously charged-off 273 10 100 1 — 109 1,833 573 2,899 Loans charged off (462) — (46) — — (144) — (2,851) (3,503) Ending balance - December 31, 2023 $ 19,599 $ 35,372 $ 26,505 $ 9,468 $ 8,842 $ 10,653 $ 22,965 $ 16,922 $ 150,326 Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Year Ended December 31, 2022 Beginning balance - December 31, 2021 $ 15,751 $ 28,576 $ 19,104 $ 5,903 $ 6,976 $ 12,593 $ 25,768 $ 10,888 $ 125,559 (Reversal of) provision for (4,563) 11,221 7,060 1,574 (486) (4,883) (3,584) 4,054 10,393 Recoveries of loans previously charged-off 2,005 11 54 17 — 88 — 766 2,941 Loans charged off (2,087) — (77) — — (15) (268) (2,254) (4,701) Ending balance - $ 11,106 $ 39,808 $ 26,141 $ 7,494 $ 6,490 $ 7,783 $ 21,916 $ 13,454 $ 134,192 Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Year Ended December 31, 2021 Beginning balance - December 31, 2020 $ 14,748 $ 58,477 $ 19,220 $ 10,534 $ 7,174 $ 4,849 $ 44,147 $ 11,240 $ 170,389 Provision for (reversal of) 4,178 (29,874) (87) (4,728) (197) 7,588 (16,813) 938 (38,995) Recoveries of loans previously charged-off 861 3 125 115 — 156 — 773 2,033 Loans charged off (4,036) (30) (154) (18) (1) — (1,566) (2,063) (7,868) Ending balance - $ 15,751 $ 28,576 $ 19,104 $ 5,903 $ 6,976 $ 12,593 $ 25,768 $ 10,888 $ 125,559 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment and Related Accumulated Depreciation | Premises and equipment and related accumulated depreciation as of December 31, 2023 and 2022, are as follows: 2023 2022 Land $ 35,092 $ 32,985 Premises 112,092 109,277 Furniture, fixtures and equipment 25,734 49,203 Leasehold improvements 28,271 19,001 Construction in process 4,943 10,230 Finance lease 1,256 1,367 207,388 222,063 Less: accumulated depreciation and amortization (51,657) (75,747) Total premises and equipment $ 155,731 $ 146,316 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Real Estate [Abstract] | |
Schedule of Other Real Estate Owned | The following table summarizes the other real estate owned for the years ended December 31, 2023, 2022, and 2021: Years Ended December 31, 2023 2022 2021 Balance at beginning of period $ 5,794 $ 9,777 $ 12,111 Transfers from loans 2,736 1,437 5,262 Transfers to other assets (75) — — Transfers to premises and equipment — (351) — Proceeds from sale of other real estate owned (6,083) (4,955) (9,396) Gain on sale of other real estate owned 835 328 3,248 Loans provided for sales of other real estate owned — — (704) Write-downs and partial liquidations (15) (442) (744) Balance at end of period $ 3,192 $ 5,794 $ 9,777 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Core Deposit and Other Intangibles | The composition of core deposit and other intangibles, which excludes fully amortized intangibles, as of December 31, 2023 and 2022 is as follows: Core deposit and other intangibles Gross Carrying Amount Accumulated Amortization Net Carrying Amount December 31, 2023 Core deposit intangible $ 59,835 $ (51,699) $ 8,136 Customer base trust intangible 1,600 (1,027) 573 Total core deposit and other intangibles $ 61,435 $ (52,726) $ 8,709 December 31, 2022 Core deposit intangible $ 59,835 $ (48,200) $ 11,635 Customer base trust intangible 1,600 (867) 733 Total core deposit and other intangibles $ 61,435 $ (49,067) $ 12,368 |
Schedule of Estimated Aggregate Amortization Expense of Core Deposit and Other Intangibles | he estimated aggregate future amortization expense of core deposit and other intangibles is as follows: 2024 $ 2,946 2025 2,306 2026 1,563 2027 1,080 2028 572 Thereafter 242 $ 8,709 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Information Related to Company's Leases and Lease Expense | Information related to the Company's leases is presented below as of December 31, 2023 and 2022: December 31, Classification 2023 2022 Right-of-use assets: Operating leases Operating lease right-of-use assets $ 54,295 $ 60,043 Finance leases Premises and equipment, net 1,256 1,367 Total right-of-use assets $ 55,551 $ 61,410 Lease liabilities: Operating leases Operating lease liabilities $ 67,643 $ 69,754 Finance leases Borrowings 1,326 1,420 Total lease liabilities $ 68,969 $ 71,174 Weighted average remaining lease term (in years) - 11.6 12.1 Weighted average remaining lease term (in years) - 11.4 12.4 Weighted average discount rate - operating 3.39 % 3.08 % Weighted average discount rate - finance 1.76 % 1.76 % The components of total lease expense included in the consolidated statements of income were as follows: Years Ended December 31, Classification 2023 2022 2021 Operating lease costs: Amortization of right-of-use asset Occupancy and equipment $ 8,516 $ 8,441 $ 7,636 Short-term lease cost Occupancy and equipment 540 526 427 Variable lease cost Occupancy and equipment 1,205 1,078 1,003 Loss (gain) on lease modifications (1) 1,770 346 (805) Finance lease costs: Interest on lease liabilities Interest expense on borrowings 24 28 25 Amortization of right-of-use asset Occupancy and equipment 111 120 101 Sublease income Occupancy and equipment (957) (993) (573) Total lease cost $ 11,209 $ 9,546 $ 7,814 (1) Loss (gain) on lease modifications and terminations is included in “ Occupancy and equipment ” within the Company's consolidated statements of income for the years ended December 31, 2023 and 2021. For the year ended December 31, 2022, loss (gain) on lease modifications and terminations of $364 and $(18) is included in “ Mortgage restructuring expense ” and “ Occupancy and equipment, ” respectively, within the Company's consolidated statements of income. |
Schedule of Maturity Analysis of Operating Lease Liabilities | A maturity analysis of operating and finance lease liabilities and a reconciliation of undiscounted cash flows to lease liabilities as of December 31, 2023 is as follows: Operating Finance Leases Lease Lease payments due: December 31, 2024 $ 8,453 $ 120 December 31, 2025 8,448 121 December 31, 2026 8,328 123 December 31, 2027 7,878 125 December 31, 2028 6,979 127 Thereafter 44,147 850 Total undiscounted future minimum lease payments 84,233 1,466 Less: imputed interest (16,590) (140) Lease liabilities $ 67,643 $ 1,326 |
Schedule of Maturity of Finance Lease Liabilities | A maturity analysis of operating and finance lease liabilities and a reconciliation of undiscounted cash flows to lease liabilities as of December 31, 2023 is as follows: Operating Finance Leases Lease Lease payments due: December 31, 2024 $ 8,453 $ 120 December 31, 2025 8,448 121 December 31, 2026 8,328 123 December 31, 2027 7,878 125 December 31, 2028 6,979 127 Thereafter 44,147 850 Total undiscounted future minimum lease payments 84,233 1,466 Less: imputed interest (16,590) (140) Lease liabilities $ 67,643 $ 1,326 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Schedule of Changes in Mortgage Servicing Rights | Changes in the Company’s mortgage servicing rights were as follows for the years ended December 31, 2023, 2022, and 2021: Years Ended December 31, 2023 2022 2021 Carrying value at beginning of period $ 168,365 $ 115,512 $ 79,997 Capitalization 7,192 20,809 39,018 Change in fair value: Due to payoffs/paydowns (12,327) (16,012) (30,583) Due to change in valuation inputs or assumptions 1,019 48,056 27,080 Carrying value at end of period $ 164,249 $ 168,365 $ 115,512 |
Schedule of Servicing Income and Expense Included in Mortgage Banking Income | The following table summarizes servicing income and expense, which are included in “Mortgage banking income” and “Other noninterest expense,” respectively, in the consolidated statements of income for the years ended December 31, 2023, 2022, and 2021: Years Ended December 31, 2023 2022 2021 Servicing income: Servicing income $ 30,263 $ 30,763 $ 28,890 Change in fair value of mortgage servicing rights (11,308) 32,044 (3,503) Change in fair value of derivative hedging instruments (4,918) (42,143) (8,614) Servicing income 14,037 20,664 16,773 Servicing expenses 8,093 10,259 9,862 Net servicing income $ 5,944 $ 10,405 $ 6,911 |
Schedule of Data and Key Economic Assumptions Related to Mortgage Servicing Rights | Data and key economic assumptions related to the Company’s mortgage servicing rights as of December 31, 2023 and 2022 are as follows: December 31, 2023 2022 Unpaid principal balance of mortgage loans sold and serviced for others $ 10,762,906 $ 11,086,582 Weighted-average prepayment speed (CPR) 6.19 % 5.55 % Estimated impact on fair value of a 10% increase $ (4,616) $ (4,886) Estimated impact on fair value of a 20% increase $ (8,924) $ (9,447) Discount rate 9.62 % 9.10 % Estimated impact on fair value of a 100 bp increase $ (7,637) $ (8,087) Estimated impact on fair value of a 200 bp increase $ (14,624) $ (15,475) Weighted-average coupon interest rate 3.47 % 3.31 % Weighted-average servicing fee (basis points) 27 27 Weighted-average remaining maturity (in months) 334 332 |
Other Assets and Other Liabil_2
Other Assets and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Assets And Other Liabilities [Abstract] | |
Schedule of Other Assets | Included in other assets are: As of December 31, Other assets 2023 2022 Derivatives (See Note 15) 34,738 48,769 Deferred tax asset (See Note 12) 31,631 42,412 Equity securities without readily determinable market value 25,191 22,496 FHLB lender risk account receivable 20,258 19,737 Mortgage lending receivable 16,344 14,425 Pledged collateral on derivative instruments 14,042 23,325 Prepaid expenses 13,594 9,280 Current income tax receivable 5,930 7,373 Software 525 108 Other assets 41,156 40,031 Total other assets $ 203,409 $ 227,956 |
Schedule of Other Liabilities | Included in other liabilities are: As of December 31, Other liabilities 2023 2022 Derivatives (See Note 15) 38,215 63,229 Accrued interest payable 18,809 8,648 Accrued payroll 18,406 13,592 FHLB lender risk account guaranty 9,746 9,558 Allowance for credit losses on unfunded commitments (See Note 14) 8,770 22,969 Deferred compensation 2,152 2,424 Mortgage buyback reserve (See Note 14) 899 1,621 Other liabilities 45,625 58,932 Total other liabilities $ 142,622 $ 180,973 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
Schedule of Maturities of Time Deposits | At December 31, 2023, the scheduled maturities of time deposits are as follows: Scheduled maturities of time deposits Due on or before: December 31, 2024 $ 1,279,052 December 31, 2025 309,929 December 31, 2026 14,902 December 31, 2027 10,239 December 31, 2028 6,504 Thereafter 7 Total $ 1,620,633 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The Company has access to various sources of funds that allow for management of interest rate exposure and liquidity. The following table summarizes the Company's outstanding borrowings and weighted average interest rates as of December 31, 2023 and 2022: Outstanding Balance Weighted Average Interest Rate December 31, December 31, 2023 2022 2023 2022 Securities sold under agreements to repurchase $ 108,764 $ 86,945 5.05 % 3.78 % FHLB advances — 175,000 — % 4.44 % Bank Term Funding Program 130,000 — 4.85 % — % Subordinated debt, net 129,645 126,101 5.52 % 5.31 % Other borrowings 22,555 27,631 0.10 % 0.09 % Total $ 390,964 $ 415,677 |
Schedule of Securities Sold under Agreement to Repurchase | Information concerning securities sold under agreement to repurchase and federal funds purchased is summarized as follows: December 31, 2023 December 31, 2022 Balance at year end $ 108,764 $ 86,945 Average daily balance during the year 29,860 28,497 Average interest rate during the year 2.24 % 0.23 % Maximum month-end balance during the year $ 116,220 $ 86,945 Weighted average interest rate at year-end 5.05 % 3.78 % |
Schedule of Federal Home Loan Bank, Advances | Information concerning FHLB advances as of or for the years ended December 31, 2023 and 2022 is summarized within the table below. December 31, 2023 December 31, 2022 Balance at year end $ — $ 175,000 Average daily balance during the year 28,973 171,142 Average interest rate during the year 5.13 % 3.26 % Maximum month-end balance during the year $ 125,000 $ 540,000 Weighted average interest rate at year-end — % 4.44 % |
Schedule of Bank Term Funding Program | Information concerning the Bank Term Funding Program as of or for the year ended December 31, 2023 is summarized within the table below. December 31, 2023 Balance at year end $ 130,000 Average daily balance during the year 1,781 Average interest rate during the year 4.85 % Maximum month-end balance during the year $ 130,000 Weighted average interest rate at year-end 4.85 % |
Schedule of Subordinated Borrowing | Further information related to the Company's subordinated debt as of December 31, 2023 is detailed below: Name Year Established Maturity Call Date Total Debt Outstanding Interest Rate Coupon Structure Subordinated Debt issued by Trust Preferred Securities: FBK Trust I (1) 2003 06/09/2033 6/09/2008 $ 9,280 8.84% 3-month SOFR plus 3.51% FBK Trust II (1) 2003 06/26/2033 6/26/2008 21,650 8.77% 3-month SOFR plus 3.41% Additional Subordinated Debt: FBK Subordinated Debt I (2) 2020 09/01/2030 9/1/2025 100,000 4.50% Semi-annual Fixed (3) Unamortized debt issuance costs (612) Fair Value Hedge (See Note 15, “ Derivatives ” ) (673) Total Subordinated Debt, net $ 129,645 (1) The Company classifies $30,000 of the trusts' subordinated debt as Tier 1 capital. (2) The Company classified the issuance, net of unamortized issuance costs and the associated fair value hedge as Tier 2 capital, which will be phased out 20% per year in the final five years before maturity. (3) Beginning on September 1, 2025 the coupon structure migrates to the 3-month SOFR plus a spread of 439 basis points through the end of the term of the debenture. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Allocation of Federal and State Income Taxes between Current and Deferred Portions | An allocation of federal and state income taxes between current and deferred portions is presented below: Years Ended December 31, 2023 2022 2021 Current $ 31,467 $ 22,451 $ 21,980 Deferred (1,415) 12,552 30,770 Total $ 30,052 $ 35,003 $ 52,750 |
Schedule of Reconciliation of Income Taxes | The following table presents a reconciliation of federal income taxes at the statutory federal rate of 21% to the Company's effective tax rates for the years ended December 31, 2023, 2022, and 2021: Years Ended December 31, 2023 2022 2021 Federal taxes calculated at statutory rate $ 31,561 21.0 % $ 33,510 21.0 % $ 51,041 21.0 % (Decrease) increase resulting from: State taxes, net of federal benefit (158) (0.1) % 3,845 2.4 % 8,788 3.5 % Expense (benefit) from equity based compensation 219 0.1 % (392) (0.2) % (2,719) (1.1) % Municipal interest income, net of interest disallowance (1,804) (1.2) % (1,774) (1.1) % (1,818) (0.8) % Bank-owned life insurance (393) (0.3) % (305) (0.2) % (324) (0.1) % NOL Carryback provision under CARES Act — — % — — % (3,424) (1.4) % Offering costs — — % — — % 123 0.1 % Section 162(m) limitation 244 0.2 % 241 0.1 % 1,381 0.6 % Other 383 0.3 % (122) (0.1) % (298) (0.1) % Income tax expense, as reported $ 30,052 20.0 % $ 35,003 21.9 % $ 52,750 21.7 % |
Schedule of Net Deferred Tax Assets (Liabilities) | The components of the deferred tax assets and liabilities at December 31, 2023 and 2022, are as follows: December 31, 2023 2022 Deferred tax assets: Allowance for credit losses $ 39,228 $ 38,646 Operating lease liabilities 24,607 25,882 Net operating loss 805 1,088 Amortization of core deposit intangibles 1,135 653 Deferred compensation 7,433 5,245 Unrealized loss on debt securities 48,714 61,004 Other assets 4,863 6,691 Subtotal 126,785 139,209 Deferred tax liabilities: FHLB stock dividends $ (263) $ (484) Operating leases - right of use assets (21,312) (24,478) Depreciation (5,996) (7,274) Unrealized gain on equity securities (2,122) (2,287) Unrealized gain on cash flow hedges (151) (327) Mortgage servicing rights (42,797) (43,869) Goodwill (17,995) (15,869) Other liabilities (4,518) (2,209) Subtotal (95,154) (96,797) Net deferred tax assets $ 31,631 $ 42,412 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Financial Instruments with Off-Balance Sheet Credit Risk | December 31, 2023 2022 Commitments to extend credit, excluding interest rate lock commitments $ 2,906,016 $ 3,563,982 Letters of credit 77,055 71,250 Balance at end of period $ 2,983,071 $ 3,635,232 |
Schedule of Allowance of Credit Losses on Unfunded Commitments | The table below presents activity within the allowance for credit losses on unfunded loan commitments included in accrued expenses and other liabilities on the Company's consolidated balance sheets: Years Ended December 31, 2023 2022 2021 Balance at beginning of period $ 22,969 $ 14,380 $ 16,378 (Reversal of) provision for credit losses on unfunded commitments (14,199) 8,589 (1,998) Balance at end of period $ 8,770 $ 22,969 $ 14,380 |
Schedule of Activity in the Repurchase Reserve | The following table summarizes the activity in the repurchase reserve included in “Accrued expenses and other liabilities” on the Company's consolidated balance sheets: Years Ended December 31, 2023 2022 2021 Balance at beginning of period $ 1,621 $ 4,802 $ 5,928 Provision for loan repurchases or indemnifications (650) (2,989) (766) Losses on loans repurchased or indemnified (72) (192) (360) Balance at end of period $ 899 $ 1,621 $ 4,802 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Financial Instruments | December 31, 2023 December 31, 2022 Remaining Maturity (In Years) Receive Fixed Rate Pay Floating Rate Notional Amount Estimated fair value Notional Amount Estimated fair value Derivatives included in other Interest rate swap 0.64 1.50% SOFR 75,000 (1,686) 75,000 (3,693) Interest rate swap 0.64 1.50% SOFR 125,000 (2,811) 125,000 (6,154) Interest rate swap 0.17 1.46% SOFR 100,000 (673) 100,000 (3,830) Total 0.49 1.48% $ 300,000 $ (5,170) $ 300,000 $ (13,677) The following presents a summary of the Company's designated cash flow hedges as of the dates presented: December 31, 2023 December 31, 2022 Notional Amount Estimated fair value Balance sheet location Estimated fair value Balance sheet location Interest rate swap agreements- $ 30,000 $ 579 Other assets $ 1,255 Other assets The following tables provide details on the Company’s non-designated derivative financial instruments as of the dates presented: December 31, 2023 Notional Amount Asset Liability Interest rate contracts $ 569,865 $ 32,179 $ 32,184 Forward commitments 159,000 — 861 Interest rate-lock commitments 69,217 1,203 — Futures contracts 254,000 777 — Total $ 1,052,082 $ 34,159 $ 33,045 December 31, 2022 Notional Amount Asset Liability Interest rate contracts $ 560,310 $ 45,775 $ 45,762 Forward commitments 207,000 306 — Interest rate-lock commitments 118,313 1,433 — Futures contracts 494,300 — 3,790 Total $ 1,379,923 $ 47,514 $ 49,552 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following discloses the amount of expense included in interest expense on borrowings and deposits, related to these fair value hedging instruments: Years Ended December 31, 2023 2022 Designated fair value hedge: Interest expense on deposits $ (7,176) $ (717) Interest expense on borrowings (3,630) (395) Total $ (10,806) $ (1,112) |
Schedule of Derivative Liabilities at Fair Value | The following amounts were recorded on the balance sheet related to cumulative adjustments of fair value hedges as of the dates presented: Carrying Amount of the Hedged Item Cumulative Decrease in Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Item Line item on the balance sheet December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Money market and savings deposits $ 198,143 $ 196,520 (1) $ (4,497) $ (9,847) Borrowings 98,715 95,171 (2) (673) (3,830) Total $ 296,858 $ 291,691 $ (5,170) $ (13,677) (1) The carrying value also includes an unaccreted purchase accounting fair value premium of $2,640 and $6,367 as of December 31, 2023 and 2022, respectively. (2) The carrying value also includes unamortized subordinated debt issuance costs of $612 and $999 as of December 31, 2023 and 2022, respectively. |
Schedule of Gains (Losses) Included in the Consolidated Statements of Income Related to Derivative Financial Instruments | The following discloses the amount included in other comprehensive (loss) income, net of tax, for derivative instruments designated as cash flow hedges for the periods presented: Years Ended December 31, 2023 2022 2021 Amount of (loss) gain recognized in other comprehensive (loss) income, net of tax (benefit) expense of $(176), $532 and $293 $ (500) $ 1,508 $ 831 (Losses) gains included in the consolidated statements of income related to the Company’s non-designated derivative financial instruments were as follows: Years Ended December 31, 2023 2022 2021 Included in mortgage banking income: Interest rate lock commitments $ (230) $ (5,764) $ (27,194) Forward commitments 953 55,804 25,661 Futures contracts (3,366) (36,381) (7,949) Option contracts (1,125) 36 — Total $ (3,768) $ 13,695 $ (9,482) |
Schedule of Offsetting Assets | Gross amounts not offset on the consolidated balance sheets Gross amounts recognized Gross amounts offset on the consolidated balance sheets Net amounts presented on the consolidated balance sheets Financial instruments Financial collateral pledged Net Amount December 31, 2023 Derivative financial assets $ 31,468 $ — $ 31,468 $ 6,502 $ — $ 24,966 Derivative financial liabilities $ 11,330 $ — $ 11,330 $ 6,502 $ 4,828 $ — December 31, 2022 Derivative financial assets $ 44,273 $ — $ 44,273 $ 14,229 $ — $ 30,044 Derivative financial liabilities $ 20,251 $ — $ 20,251 $ 14,229 $ 6,022 $ — |
Schedule of Offsetting Liabilities | Gross amounts not offset on the consolidated balance sheets Gross amounts recognized Gross amounts offset on the consolidated balance sheets Net amounts presented on the consolidated balance sheets Financial instruments Financial collateral pledged Net Amount December 31, 2023 Derivative financial assets $ 31,468 $ — $ 31,468 $ 6,502 $ — $ 24,966 Derivative financial liabilities $ 11,330 $ — $ 11,330 $ 6,502 $ 4,828 $ — December 31, 2022 Derivative financial assets $ 44,273 $ — $ 44,273 $ 14,229 $ — $ 30,044 Derivative financial liabilities $ 20,251 $ — $ 20,251 $ 14,229 $ 6,022 $ — |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Balances and Levels of Assets Measured at Fair Value on Recurring Basis | The balances and levels of the assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 and 2022 are presented in the following tables: At December 31, 2023 Quoted prices Significant Significant unobservable Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 203,956 $ — $ 203,956 Mortgage-backed securities - residential — 896,971 — 896,971 Mortgage-backed securities - commercial — 16,961 — 16,961 Municipal securities — 242,263 — 242,263 U.S. Treasury securities — 108,496 — 108,496 Corporate securities — 3,326 — 3,326 Total securities $ — $ 1,471,973 $ — $ 1,471,973 Loans held for sale, at fair value $ — $ 46,618 $ — $ 46,618 Mortgage servicing rights — — 164,249 164,249 Derivatives — 34,738 — 34,738 Financial Liabilities: Derivatives — 38,215 — 38,215 At December 31, 2022 Quoted prices Significant Significant unobservable Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 40,062 $ — $ 40,062 Mortgage-backed securities - residential — 1,034,193 — 1,034,193 Mortgage-backed securities - commercial — 17,644 — 17,644 Municipal securities — 264,420 — 264,420 U.S. Treasury securities — 107,680 — 107,680 Corporate securities — 7,187 — 7,187 Equity securities, at fair value — 2,990 — 2,990 Total securities $ — $ 1,474,176 $ — $ 1,474,176 Loans held for sale, at fair value $ — $ 82,750 $ 30,490 $ 113,240 Mortgage servicing rights — — 168,365 168,365 Derivatives — 48,769 — 48,769 Financial Liabilities: Derivatives — 63,229 — 63,229 |
Schedule of Balances and Levels of Assets Measured at Fair Value on Non-recurring Basis | The balances and levels of the assets measured at fair value on a nonrecurring basis as of December 31, 2023 and 2022 are presented in the following tables: At December 31, 2023 Quoted prices Significant Significant unobservable Total Nonrecurring valuations: Financial assets: Other real estate owned $ — $ — $ 2,400 $ 2,400 Collateral-dependent net loans held for Commercial and industrial — — 12,338 12,338 Construction — — 203 203 Residential real estate: 1-4 family mortgage $ — $ — $ 429 $ 429 Consumer and other — — 71 71 Total collateral-dependent loans $ — $ — $ 13,041 $ 13,041 At December 31, 2022 Quoted prices Significant Significant unobservable Total Nonrecurring valuations: Financial assets: Other real estate owned $ — $ — $ 2,497 $ 2,497 Collateral-dependent net loans held for Residential real estate: 1-4 family mortgage $ — $ — $ 366 $ 366 Commercial real estate: Non-owner occupied — — 2,494 2,494 Total collateral-dependent loans $ — $ — $ 2,860 $ 2,860 The following tables set forth the changes in fair value associated with this portfolio for the years ended December 31, 2023, 2022, and 2021: Year Ended December 31, 2023 Principal Balance Fair Value Discount Fair Value Carrying value at beginning of period $ 34,357 $ (3,867) $ 30,490 Change in fair value: Paydowns and payoffs (28,376) — (28,376) Write-offs to discount (5,981) 5,981 — Changes in valuation included in other noninterest income — (2,114) (2,114) Carrying value at end of period $ — $ — $ — Year Ended December 31, 2022 Principal balance Fair Value discount Fair Value Carrying value at beginning of period $ 86,762 $ (7,463) $ 79,299 Change in fair value: Paydowns and payoffs (43,676) — (43,676) Write-offs to discount (8,729) 8,729 — Changes in valuation included in other noninterest income — (5,133) (5,133) Carrying value at end of period $ 34,357 $ (3,867) $ 30,490 Year Ended December 31, 2021 Principal balance Fair Value discount Fair Value Carrying value at beginning of period $ 239,063 $ (23,660) $ 215,403 Change in fair value: Paydowns and payoffs (141,002) — (141,002) Write-offs to discount (8,563) 8,563 — Changes in valuation included in other noninterest income (2,736) 7,634 4,898 Carrying value at end of period $ 86,762 $ (7,463) $ 79,299 |
Schedule of Information About Significant Unobservable Inputs (Level 3) Used in Valuation of Assets Measured at Fair Value on Nonrecurring Basis | The following tables present information as of December 31, 2023 and 2022 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis: December 31, 2023 Financial instrument Fair Value Valuation technique Significant Range of Collateral-dependent net loans $ 13,041 Valuation of collateral Discount for comparable sales 10%-61% Other real estate owned $ 2,400 Appraised value of property less costs to sell Discount for costs to sell 0%-15% December 31, 2022 Financial instrument Fair Value Valuation technique Significant Range of Collateral-dependent net loans $ 2,860 Valuation of collateral Discount for comparable sales 10%-35% Other real estate owned $ 2,497 Appraised value of property less costs to sell Discount for costs to sell 0%-15% |
Schedule of Loans Held For Sale at Fair Value | The following table summarizes the Company's loans held for sale as of the dates presented: December 31, 2023 2022 Loans held for sale under a fair value option: Commercial loans held for sale $ — $ 30,490 Mortgage loans held for sale 46,618 82,750 Total loans held for sale, at fair value 46,618 113,240 Loans held for sale not accounted for under a fair value option: Mortgage loans held for sale - guaranteed GNMA repurchase option 21,229 26,211 Total loans held for sale $ 67,847 $ 139,451 |
Schedule of Differences between Fair Value and Principal Balance for Loans Held for Sale Measured at Fair Value | The following table summarizes the differences between the fair value and the principal balance for loans held for sale and nonaccrual loans HFS measured at fair value as of December 31, 2023 and 2022: December 31, 2023 Aggregate Aggregate Unpaid Principal Balance Difference Mortgage loans held for sale measured at fair value $ 46,618 $ 45,509 $ 1,109 December 31, 2022 Aggregate Aggregate Unpaid Principal Balance Difference Mortgage loans held for sale measured at fair value $ 82,750 $ 81,520 $ 1,230 Commercial loans held for sale measured at fair value 21,201 22,126 (925) Nonaccrual commercial loans held for sale 9,289 12,231 (2,942) |
Schedule of Estimated Fair Values and Carrying Values of Financial Instruments | The following table contains the estimated fair values and the related carrying values of the Company's financial instruments. Items that are not financial instruments are not included. Fair Value December 31, 2023 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 810,932 $ 810,932 $ — $ — $ 810,932 Investment securities 1,471,973 — 1,471,973 — 1,471,973 Net loans held for investment 9,258,457 — — 9,068,518 9,068,518 Loans held for sale, at fair value 46,618 — 46,618 — 46,618 Interest receivable 52,715 388 8,551 43,776 52,715 Mortgage servicing rights 164,249 — — 164,249 164,249 Derivatives 34,738 — 34,738 — 34,738 Financial liabilities: Deposits: Without stated maturities $ 8,927,654 $ 8,927,654 $ — $ — $ 8,927,654 With stated maturities 1,620,633 — 1,614,400 — 1,614,400 Securities sold under agreements to repurchase and federal funds purchased 108,764 108,764 — — 108,764 Bank Term Funding Program 130,000 — 130,000 — 130,000 Subordinated debt, net 129,645 — — 122,671 122,671 Interest payable 18,809 4,104 13,205 1,500 18,809 Derivatives 38,215 — 38,215 — 38,215 Fair Value December 31, 2022 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,027,052 $ 1,027,052 $ — $ — $ 1,027,052 Investment securities 1,474,176 — 1,474,176 — 1,474,176 Net loans held for investment 9,164,020 — — 9,048,943 9,048,943 Loans held for sale, at fair value 113,240 — 82,750 30,490 113,240 Interest receivable 45,684 126 6,961 38,597 45,684 Mortgage servicing rights 168,365 — — 168,365 168,365 Derivatives 48,769 — 48,769 — 48,769 Financial liabilities: Deposits: Without stated maturities $ 9,433,860 $ 9,433,860 $ — $ — $ 9,433,860 With stated maturities 1,421,974 — 1,422,544 — 1,422,544 Securities sold under agreements to repurchase and federal funds purchased 86,945 86,945 — — 86,945 Federal Home Loan Bank advances 175,000 — 175,000 — 175,000 Subordinated debt, net 126,101 — — 118,817 118,817 Interest payable 8,648 2,571 4,559 1,518 8,648 Derivatives 63,229 — 63,229 — 63,229 |
Parent Company Financial Stat_2
Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Balance Sheet | As of December 31, Balance sheets 2023 2022 Assets Cash and cash equivalents (1) $ 21,448 $ 3,052 Investment in subsidiaries (1) 1,449,439 1,337,657 Other assets 15,291 16,654 Goodwill 29 29 Total assets $ 1,486,207 $ 1,357,392 Liabilities and shareholders' equity Liabilities Borrowings $ 30,930 $ 30,930 Accrued expenses and other liabilities 483 1,037 Total liabilities 31,413 31,967 Shareholders' equity Common stock 46,849 46,738 Additional paid-in capital 864,258 861,588 Retained earnings 678,412 586,532 Accumulated other comprehensive loss (134,725) (169,433) Total shareholders' equity 1,454,794 1,325,425 Total liabilities and shareholders' equity $ 1,486,207 $ 1,357,392 (1) Eliminates in Consolidation |
Schedule of Income Statements | Years Ended December 31, Statements of income 2023 2022 2021 Income Dividend income from bank subsidiary (1) $ 49,000 $ 49,000 $ 122,500 Dividend income from nonbank subsidiary (1) 530 — 2,525 Loss on investments — — 249 Other income 57 89 15 Total income 49,587 49,089 125,289 Expenses Interest expense 1,590 1,587 2,455 Salaries, legal and professional fees 1,461 1,590 1,445 Other noninterest expense 478 771 1,812 Total expenses 3,529 3,948 5,712 Income before income tax benefit and equity in undistributed 46,058 45,141 119,577 Federal and state income tax benefit (887) (1,002) (2,992) Income before equity in undistributed earnings of subsidiaries 46,945 46,143 122,569 Equity in undistributed earnings from bank subsidiary (1) 73,832 76,232 68,351 Equity in undistributed earnings from nonbank subsidiary (1) (553) 2,180 (635) Net income $ 120,224 $ 124,555 $ 190,285 (1) Eliminates in Consolidation |
Schedule of Cash Flows | Years Ended December 31, Statements of cash flows 2023 2022 2021 Operating Activities Net income $ 120,224 $ 124,555 $ 190,285 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income of bank subsidiary (73,832) (76,232) (68,351) Equity in undistributed income of nonbank subsidiary 553 (2,180) 635 Accretion of subordinated debt fair value premium — — (369) Gain on investments — — (249) Stock-based compensation expense 10,381 9,857 10,282 Decrease (increase) in other assets 1,017 (802) (3,916) Decrease in other liabilities (4,064) (7,381) (678) Net cash provided by operating activities 54,279 47,817 127,639 Investing Activities Proceeds from sale of equity securities — — 1,422 Net cash provided by investing activities — — 1,422 Financing Activities Payments on subordinated debt — — (60,000) Payments on other borrowings — — (15,000) Share based compensation withholding payments (3,379) (2,842) (10,158) Net proceeds from sale of common stock under employee stock purchase 723 1,212 1,480 Repurchase of common stock (4,944) (39,979) (7,595) Dividends paid on common stock (28,057) (24,503) (20,866) Dividend equivalent payments made upon vesting of equity compensation (226) (168) (717) Net cash used in financing activities (35,883) (66,280) (112,856) Net increase (decrease) in cash and cash equivalents 18,396 (18,463) 16,205 Cash and cash equivalents at beginning of year 3,052 21,515 5,310 Cash and cash equivalents at end of year $ 21,448 $ 3,052 $ 21,515 Supplemental noncash disclosures: Dividends declared not paid on restricted stock units $ 287 $ 222 $ 400 Noncash security distribution to bank subsidiary — — 2,646 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Financial Information | The following tables present selected financial information with respect to the Company's reportable segments for the years ended December 31, 2023, 2022, and 2021. Year Ended December 31, 2023 Banking (2) Mortgage Consolidated Net interest income $ 407,217 $ — $ 407,217 Provisions for credit losses 2,539 — 2,539 Mortgage banking income — 60,918 60,918 Change in fair value of mortgage servicing rights, net of hedging (1) — (16,226) (16,226) Other noninterest income 25,831 20 25,851 Depreciation and amortization 10,444 736 11,180 Amortization of intangibles 3,659 — 3,659 Other noninterest expense 262,433 47,657 310,090 Income (loss) before income taxes $ 153,973 $ (3,681) $ 150,292 Income tax expense 30,052 Net income applicable to FB Financial Corporation and noncontrolling interest 120,240 Net income applicable to noncontrolling interest (2) 16 Net income applicable to FB Financial Corporation $ 120,224 Total assets $ 12,046,190 $ 558,213 $ 12,604,403 Goodwill 242,561 — 242,561 (1) Change in fair value of mortgage servicing rights, net of hedging is included in Mortgage banking income in the Company's consolidated statements of income. (2) Banking segment includes noncontrolling interest. Year Ended December 31, 2022 Banking (3) Mortgage Consolidated Net interest income $ 412,237 $ (2) $ 412,235 Provisions for credit losses 18,982 — 18,982 Mortgage banking income — 83,679 83,679 Change in fair value of mortgage servicing rights, net of hedging (1) — (10,099) (10,099) Other noninterest income 41,320 (233) 41,087 Depreciation and amortization 7,035 982 8,017 Amortization of intangibles 4,585 — 4,585 Other noninterest expense (2) 240,096 95,648 335,744 Income (loss) before income taxes $ 182,859 $ (23,285) $ 159,574 Income tax expense 35,003 Net income applicable to FB Financial Corporation and noncontrolling interest 124,571 Net income applicable to noncontrolling interest (3) 16 Net income applicable to FB Financial Corporation $ 124,555 Total assets $ 12,228,451 $ 619,305 $ 12,847,756 Goodwill 242,561 — 242,561 (1) Change in fair value of mortgage servicing rights, net of hedging is included in mortgage banking income in the Company's consolidated statements of income. (2) Includes $12,458 in Mortgage restructuring expenses in the Mortgage segment related to the exit from the direct-to-consumer internet delivery channel. (3) Banking segment includes noncontrolling interest. Year Ended December 31, 2021 Banking (2) Mortgage Consolidated Net interest income $ 347,342 $ 28 $ 347,370 Provisions for credit losses (40,993) — (40,993) Mortgage banking income — 179,682 179,682 Change in fair value of mortgage servicing rights, net of hedging (1) — (12,117) (12,117) Other noninterest income 61,073 (383) 60,690 Depreciation and amortization 7,054 1,362 8,416 Amortization of intangibles 5,473 — 5,473 Other noninterest expense 220,283 139,395 359,678 Income before income taxes $ 216,598 $ 26,453 $ 243,051 Income tax expense 52,750 Net income applicable to FB Financial Corporation and noncontrolling interest 190,301 Net income applicable to noncontrolling interest (2) 16 Net income applicable to FB Financial Corporation $ 190,285 Total assets $ 11,540,560 $ 1,057,126 $ 12,597,686 Goodwill 242,561 — 242,561 (1) Change in fair value of mortgage servicing rights, net of hedging is included in mortgage banking income in the Company's consolidated statements of income. (2) Banking segment includes noncontrolling interest. |
Minimum Capital Requirements (T
Minimum Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Schedule of Actual and Required Capital Amounts and Ratios | Actual and required capital amounts and ratios are included below as of the dates indicated. December 31, 2023 Actual Minimum Requirement for Capital Adequacy with To Qualify as Well-Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Total Capital (to risk-weighted assets) FB Financial Corporation $ 1,635,848 14.5 % $ 1,182,028 10.5 % N/A N/A FirstBank 1,600,950 14.2 % 1,179,886 10.5 % $ 1,123,701 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,405,890 12.5 % $ 956,880 8.5 % N/A N/A FirstBank 1,370,991 12.2 % 955,145 8.5 % $ 898,960 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 1,405,890 11.3 % $ 496,485 4.0 % N/A N/A FirstBank 1,370,991 11.1 % 495,761 4.0 % $ 619,701 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,375,890 12.2 % $ 788,018 7.0 % N/A N/A FirstBank 1,370,991 12.2 % 786,590 7.0 % $ 730,405 6.5 % December 31, 2022 Actual Minimum Requirement for Capital Adequacy with To Qualify as Well-Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Total Capital (to risk-weighted assets) FB Financial Corporation $ 1,528,344 13.1 % $ 1,225,161 10.5 % N/A N/A FirstBank 1,506,543 12.9 % 1,222,922 10.5 % $ 1,164,688 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,315,386 11.3 % $ 991,797 8.5 % N/A N/A FirstBank 1,293,585 11.1 % 989,985 8.5 % $ 931,750 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 1,315,386 10.5 % $ 499,648 4.0 % N/A N/A FirstBank 1,293,585 10.4 % 499,194 4.0 % $ 623,992 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,285,386 11.0 % $ 816,774 7.0 % N/A N/A FirstBank 1,293,585 11.1 % 815,281 7.0 % $ 757,047 6.5 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Changes in Restricted Stock Units | The following table summarizes changes in RSUs for the year ended December 31, 2023: Restricted Stock Weighted Balance at beginning of period (unvested) 365,155 $ 39.02 Granted 180,631 35.33 Vested (212,251) 38.11 Forfeited (10,015) 40.00 Balance at end of period (unvested) 323,520 $ 37.52 |
Schedule of Changes in Performance Stock Units | The following table summarizes information about the changes in PSUs as of and for the year ended December 31, 2023: Performance Stock Weighted Balance at beginning of period (unvested) 161,667 $ 41.73 Granted 86,010 37.17 Performance adjustment (1) 51,444 36.93 Vested (104,833) 36.93 Forfeited or expired (18,125) 43.58 Balance at end of period (unvested) 176,163 $ 40.86 (1) PSUs are presented as outstanding, granted and forfeited in the table above assuming targets are met and the awards pay out at 100%. PSU awards are settled with payouts ranging from 0% and 200% of the target award value based on the Company's performance relative to a predefined peer group over a fixed three performance attainment above or below target. |
Schedule of Share-Based Payment Arrangement, Performance Shares, Activity | The following table summarizes data related to the Company's outstanding PSUs as of December 31, 2023: Grant Year Grant Price Performance Period PSUs Outstanding 2021 (1) $ 43.20 2021 to 2023 47,387 2022 (1) $ 44.44 2022 to 2024 50,117 2023 (1) $ 37.17 2023 to 2025 78,659 (1) Vesting factor will be interpolated between 0% and 200% of PSUs outstanding based on the Company's performance relative to a predefined peer group over a fixed three |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Loans Analysis to Executive Officers, Certain Management, Bank Directors and Related Interests | An analysis of loans to executive officers, certain management, significant shareholders and directors of the Bank and their related interests is presented below: Loans outstanding at January 1, 2023 $ 82,559 New loans and advances 10,047 Change in related party status (37,897) Repayments (5,636) Loans outstanding at December 31, 2023 $ 49,073 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) loanPortfolioPool segment branch | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of full-service branches | branch | 81 | ||
Provision for credit losses on available-for-sale securities | $ 0 | $ 0 | |
Percent of remaining principal allowed to buy back under GNMA optional repurchase programs | 100% | ||
Number of loan portfolio pools | loanPortfolioPool | 3 | ||
Impairment of long-lived assets | $ 0 | 0 | |
Goodwill impairment | 0 | ||
Amounts related to uncertain tax positions | $ 0 | $ 0 | $ 0 |
Number of reporting segments | segment | 2 | ||
PSUs | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Performance period | 3 years | ||
Premises | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property, plant and equipment, useful life | 40 years | ||
Furniture, fixtures and equipment | Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Furniture, fixtures and equipment | Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property, plant and equipment, useful life | 10 years | ||
Leasehold improvements | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property, plant and equipment, useful life | 10 years |
Basis of Presentation - Schedul
Basis of Presentation - Schedule of Basic and Diluted Earnings Per Common Share Calculation (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basic earnings per common share: | |||
Net income applicable to FB Financial Corporation | $ 120,224 | $ 124,555 | $ 190,285 |
Dividends paid on and undistributed earnings allocated to participating securities | 0 | 0 | 0 |
Earnings available to common shareholders | $ 120,224 | $ 124,555 | $ 190,285 |
Weighted average basic shares outstanding (in shares) | 46,781,214 | 47,113,470 | 47,431,102 |
Basic earnings per common share (in dollars per share) | $ 2.57 | $ 2.64 | $ 4.01 |
Diluted earnings per common share: | |||
Earnings available to common shareholders | $ 120,224 | $ 124,555 | $ 190,285 |
Weighted average basic shares outstanding (in shares) | 46,781,214 | 47,113,470 | 47,431,102 |
Weighted average diluted shares contingently issuable (in shares) | 41,578 | 126,321 | 524,778 |
Weighted average diluted shares outstanding (in shares) | 46,822,792 | 47,239,791 | 47,955,880 |
Diluted earnings per common share (in dollars per share) | $ 2.57 | $ 2.64 | $ 3.97 |
Restricted Stock Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Restricted stock units outstanding considered to be antidilutive (in shares) | 172,677 | 11,888 | 4,400 |
Investment Securities - Schedul
Investment Securities - Schedule of Amortized Cost of Securities and Fair Values (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Abstract] | ||
Total debt securities | $ 1,658,779,000 | $ 1,705,574,000 |
Gross unrealized gains | 840,000 | 458,000 |
Gross unrealized losses | (187,646,000) | (234,846,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | 1,471,973,000 | 1,471,186,000 |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Total debt securities | 204,663,000 | 45,167,000 |
Gross unrealized gains | 470,000 | 0 |
Gross unrealized losses | (1,177,000) | (5,105,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | 203,956,000 | 40,062,000 |
Mortgage-backed securities - residential | ||
Debt Securities, Available-for-sale [Abstract] | ||
Total debt securities | 1,057,389,000 | 1,224,522,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (160,418,000) | (190,329,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | 896,971,000 | 1,034,193,000 |
Mortgage-backed securities - commercial | ||
Debt Securities, Available-for-sale [Abstract] | ||
Total debt securities | 18,186,000 | 19,209,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (1,225,000) | (1,565,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | 16,961,000 | 17,644,000 |
Municipal securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Total debt securities | 263,312,000 | 295,375,000 |
Gross unrealized gains | 370,000 | 458,000 |
Gross unrealized losses | (21,419,000) | (31,413,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | 242,263,000 | 264,420,000 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Total debt securities | 111,729,000 | 113,301,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (3,233,000) | (5,621,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | 108,496,000 | 107,680,000 |
Corporate securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Total debt securities | 3,500,000 | 8,000,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (174,000) | (813,000) |
Allowance for credit losses for investments | 0 | 0 |
Fair Value | $ 3,326,000 | $ 7,187,000 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) security | Dec. 31, 2021 USD ($) | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Accrued interest receivable | $ 52,715,000 | $ 45,684,000 | |
Allowance for credit losses for investments | $ 0 | $ 0 | |
Number of securities in securities portfolio | security | 439 | 503 | |
Number of securities in securities portfolio, unrealized loss position | security | 370 | 454 | |
Marketable securities at fair value | $ 0 | $ 2,990,000 | |
Equity securities without readily determinable market value | 25,191,000 | 22,496,000 | |
Federal home loan bank stock | 34,190,000 | 58,641,000 | |
Net gain (loss) on change in fair value and sale of equity securities | 101,000 | (377,000) | $ 198,000 |
Collateral Pledged | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Securities pledged | 929,546,000 | 1,191,021,000 | |
Debt Securities | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Accrued interest receivable | $ 7,212,000 | $ 5,470,000 |
Investment Securities - Sched_2
Investment Securities - Schedule of Gross Unrealized Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | $ 40,403 | $ 646,226 |
Unrealized Loss, Less than 12 months | (169) | (67,665) |
Fair Value, 12 months or more | 1,228,463 | 793,685 |
Unrealized Loss, 12 months or more | (187,477) | (167,181) |
Fair Value, Total | 1,268,866 | 1,439,911 |
Unrealized Loss, Total | (187,646) | (234,846) |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 25,923 | 23,791 |
Unrealized Loss, Less than 12 months | (21) | (2,802) |
Fair Value, 12 months or more | 14,040 | 16,271 |
Unrealized Loss, 12 months or more | (1,156) | (2,303) |
Fair Value, Total | 39,963 | 40,062 |
Unrealized Loss, Total | (1,177) | (5,105) |
Mortgage-backed securities - residential | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 0 | 316,656 |
Unrealized Loss, Less than 12 months | 0 | (32,470) |
Fair Value, 12 months or more | 896,971 | 717,537 |
Unrealized Loss, 12 months or more | (160,418) | (157,859) |
Fair Value, Total | 896,971 | 1,034,193 |
Unrealized Loss, Total | (160,418) | (190,329) |
Mortgage-backed securities - commercial | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 0 | 11,104 |
Unrealized Loss, Less than 12 months | 0 | (968) |
Fair Value, 12 months or more | 16,961 | 6,540 |
Unrealized Loss, 12 months or more | (1,225) | (597) |
Fair Value, Total | 16,961 | 17,644 |
Unrealized Loss, Total | (1,225) | (1,565) |
Municipal securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 14,480 | 196,419 |
Unrealized Loss, Less than 12 months | (148) | (26,811) |
Fair Value, 12 months or more | 188,669 | 36,726 |
Unrealized Loss, 12 months or more | (21,271) | (4,602) |
Fair Value, Total | 203,149 | 233,145 |
Unrealized Loss, Total | (21,419) | (31,413) |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 0 | 94,248 |
Unrealized Loss, Less than 12 months | 0 | (4,122) |
Fair Value, 12 months or more | 108,496 | 13,432 |
Unrealized Loss, 12 months or more | (3,233) | (1,499) |
Fair Value, Total | 108,496 | 107,680 |
Unrealized Loss, Total | (3,233) | (5,621) |
Corporate securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 0 | 4,008 |
Unrealized Loss, Less than 12 months | 0 | (492) |
Fair Value, 12 months or more | 3,326 | 3,179 |
Unrealized Loss, 12 months or more | (174) | (321) |
Fair Value, Total | 3,326 | 7,187 |
Unrealized Loss, Total | $ (174) | $ (813) |
Investment Securities - Sched_3
Investment Securities - Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Amortized cost | ||
Due in one year or less | $ 64,776 | $ 4,277 |
Due in one to five years | 75,996 | 161,556 |
Due in five to ten years | 51,162 | 61,290 |
Due in over ten years | 391,270 | 234,720 |
Amortized cost, sub-total | 583,204 | 461,843 |
Total debt securities | 1,658,779 | 1,705,574 |
Fair value | ||
Due in one year or less | 64,279 | 4,225 |
Due in one to five years | 71,801 | 152,181 |
Due in five to ten years | 49,630 | 57,859 |
Due in over ten years | 372,331 | 205,084 |
Fair value, sub-total | 558,041 | 419,349 |
Total debt securities | 1,471,973 | 1,471,186 |
Mortgage-backed securities - residential | ||
Amortized cost | ||
Mortgage-backed securities | 1,057,389 | 1,224,522 |
Total debt securities | 1,057,389 | 1,224,522 |
Fair value | ||
Mortgage-backed securities | 896,971 | 1,034,193 |
Total debt securities | 896,971 | 1,034,193 |
Mortgage-backed securities - commercial | ||
Amortized cost | ||
Mortgage-backed securities | 18,186 | 19,209 |
Total debt securities | 18,186 | 19,209 |
Fair value | ||
Mortgage-backed securities | 16,961 | 17,644 |
Total debt securities | $ 16,961 | $ 17,644 |
Investment Securities - Sched_4
Investment Securities - Schedule of Sales and Other Dispositions of Available-for-Sale Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales | $ 100,463 | $ 1,218 | $ 8,855 |
Proceeds from maturities, prepayments and calls | 128,206 | 204,748 | 296,256 |
Gross realized gains | 45 | 4 | 127 |
Gross realized losses | $ 14,119 | $ 3 | $ 1 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses on Loans HFI - Schedule of Loans Outstanding by Class of Financing Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | $ 9,408,783 | $ 9,298,212 | ||
Less: Allowance for credit losses on loans HFI | (150,326) | (134,192) | $ (125,559) | $ (170,389) |
Net loans held for investment | 9,258,457 | 9,164,020 | ||
Commercial and industrial | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 1,720,733 | 1,645,783 | ||
Less: Allowance for credit losses on loans HFI | (19,599) | (11,106) | (15,751) | (14,748) |
Construction | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 1,397,313 | 1,657,488 | ||
Less: Allowance for credit losses on loans HFI | (35,372) | (39,808) | (28,576) | (58,477) |
Residential real estate: | 1-to-4 family mortgage | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 1,568,552 | 1,573,121 | ||
Less: Allowance for credit losses on loans HFI | (26,505) | (26,141) | (19,104) | (19,220) |
Residential real estate: | Residential line of credit | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 530,912 | 496,660 | ||
Less: Allowance for credit losses on loans HFI | (9,468) | (7,494) | (5,903) | (10,534) |
Residential real estate: | Multi-family mortgage | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 603,804 | 479,572 | ||
Less: Allowance for credit losses on loans HFI | (8,842) | (6,490) | (6,976) | (7,174) |
Commercial real estate: | Owner-occupied | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 1,232,071 | 1,114,580 | ||
Less: Allowance for credit losses on loans HFI | (10,653) | (7,783) | (12,593) | (4,849) |
Commercial real estate: | Non-owner occupied | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 1,943,525 | 1,964,010 | ||
Less: Allowance for credit losses on loans HFI | (22,965) | (21,916) | (25,768) | (44,147) |
Consumer and other | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 411,873 | 366,998 | ||
Less: Allowance for credit losses on loans HFI | $ (16,922) | $ (13,454) | $ (10,888) | $ (11,240) |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses on Loans HFI - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) loan relationship | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Financing Receivable, Past Due [Line Items] | |||
Collateral securing line of credit | $ 3,014,023 | $ 2,673,464 | |
Accrued interest receivable on loans | 43,776 | 38,507 | |
Accrued interest receivable written off as an adjustment to interest income on non-accrual loans | $ 1,094 | 1,089 | $ 804 |
Outstanding recorded investment | 1,301 | 34,115 | |
Payment default for loans modified as troubled debt restructurings | 304 | $ 304 | |
Residential Mortgage Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Number modified of mortgage loans | loan | 3 | ||
Outstanding recorded investment | $ 160 | ||
Commercial and Industrial Loan | |||
Financing Receivable, Past Due [Line Items] | |||
Number modified of mortgage loans | loan | 1 | ||
Outstanding recorded investment | $ 181 | ||
Number of nonaccrual relationships | relationship | 3 | ||
Allocation to specific reserves | $ 4,908 | ||
Commercial and Industrial Loan | Federal Reserve Bank | |||
Financing Receivable, Past Due [Line Items] | |||
Deposit liabilities, collateral issued, financial instruments | 3,107,495 | 3,118,172 | |
FHLB Cincinnati | Residential Mortgage Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Collateral securing line of credit | 1,030,016 | 909,734 | |
FHLB Cincinnati | Commercial Loan | |||
Financing Receivable, Past Due [Line Items] | |||
Collateral securing line of credit | $ 1,984,007 | $ 1,763,730 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses on Loans HFI - Schedule of Credit Quality of Loan Portfolio by Year of Origination (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total | $ 9,408,783 | $ 9,298,212 |
Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 226,191 | 396,833 |
2022-2021 | 278,121 | 204,830 |
2021-2020 | 157,650 | 69,147 |
2020-2019 | 42,924 | 92,705 |
2019-2018 | 70,707 | 40,196 |
Prior | 79,652 | 70,500 |
Revolving Loans Amortized Cost Basis | 865,488 | 771,572 |
Total | 1,720,733 | 1,645,783 |
Current-period gross charge-offs, 2023 | 14 | |
Current-period gross charge-offs, 2022 | 7 | |
Current-period gross charge-offs, 2021 | 201 | |
Current-period gross charge-offs, 2020 | 22 | |
Current-period gross charge-offs, 2019 | 0 | |
Current-period gross charge-offs, prior | 87 | |
Revolving Loans Amortized Cost Basis | 131 | |
Total | 462 | |
Commercial and industrial | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 225,734 | 396,643 |
2022-2021 | 255,921 | 204,000 |
2021-2020 | 151,492 | 67,231 |
2020-2019 | 39,897 | 90,894 |
2019-2018 | 70,302 | 39,780 |
Prior | 73,415 | 62,816 |
Revolving Loans Amortized Cost Basis | 839,918 | 762,717 |
Total | 1,656,679 | 1,624,081 |
Commercial and industrial | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 0 | 125 |
2022-2021 | 17,947 | 7 |
2021-2020 | 3,083 | 0 |
2020-2019 | 0 | 160 |
2019-2018 | 151 | 143 |
Prior | 108 | 771 |
Revolving Loans Amortized Cost Basis | 7,549 | 2,520 |
Total | 28,838 | 3,726 |
Commercial and industrial | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 457 | 65 |
2022-2021 | 4,253 | 823 |
2021-2020 | 3,075 | 1,916 |
2020-2019 | 3,027 | 1,651 |
2019-2018 | 254 | 273 |
Prior | 6,129 | 6,913 |
Revolving Loans Amortized Cost Basis | 18,021 | 6,335 |
Total | 35,216 | 17,976 |
Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 179,930 | 682,965 |
2022-2021 | 684,395 | 496,032 |
2021-2020 | 152,739 | 142,248 |
2020-2019 | 54,519 | 84,599 |
2019-2018 | 39,140 | 17,360 |
Prior | 50,644 | 45,378 |
Revolving Loans Amortized Cost Basis | 235,946 | 188,906 |
Total | 1,397,313 | 1,657,488 |
Current-period gross charge-offs, 2023 | 0 | |
Current-period gross charge-offs, 2022 | 0 | |
Current-period gross charge-offs, 2021 | 0 | |
Current-period gross charge-offs, 2020 | 0 | |
Current-period gross charge-offs, 2019 | 0 | |
Current-period gross charge-offs, prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Total | 0 | |
Construction | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 179,929 | 682,885 |
2022-2021 | 677,387 | 495,723 |
2021-2020 | 148,312 | 142,233 |
2020-2019 | 46,697 | 84,599 |
2019-2018 | 39,140 | 17,360 |
Prior | 49,954 | 44,326 |
Revolving Loans Amortized Cost Basis | 208,491 | 188,906 |
Total | 1,349,910 | 1,656,032 |
Construction | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 1 | 0 |
2022-2021 | 4,659 | 0 |
2021-2020 | 2,943 | 15 |
2020-2019 | 1,202 | 0 |
2019-2018 | 0 | 0 |
Prior | 690 | 707 |
Revolving Loans Amortized Cost Basis | 12,000 | 0 |
Total | 21,495 | 722 |
Construction | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 0 | 80 |
2022-2021 | 2,349 | 309 |
2021-2020 | 1,484 | 0 |
2020-2019 | 6,620 | 0 |
2019-2018 | 0 | 0 |
Prior | 0 | 345 |
Revolving Loans Amortized Cost Basis | 15,455 | 0 |
Total | 25,908 | 734 |
Residential real estate: | Multi-family mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 29,982 | 142,912 |
2022-2021 | 151,495 | 147,168 |
2021-2020 | 223,889 | 96,819 |
2020-2019 | 92,745 | 33,547 |
2019-2018 | 29,933 | 6,971 |
Prior | 44,551 | 38,551 |
Revolving Loans Amortized Cost Basis | 31,209 | 13,604 |
Total | 603,804 | 479,572 |
Current-period gross charge-offs, 2023 | 0 | |
Current-period gross charge-offs, 2022 | 0 | |
Current-period gross charge-offs, 2021 | 0 | |
Current-period gross charge-offs, 2020 | 0 | |
Current-period gross charge-offs, 2019 | 0 | |
Current-period gross charge-offs, prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Total | 0 | |
Residential real estate: | Multi-family mortgage | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 29,982 | 142,912 |
2022-2021 | 151,495 | 147,168 |
2021-2020 | 223,889 | 96,819 |
2020-2019 | 92,745 | 33,547 |
2019-2018 | 29,933 | 6,971 |
Prior | 43,479 | 37,385 |
Revolving Loans Amortized Cost Basis | 31,209 | 13,604 |
Total | 602,732 | 478,406 |
Residential real estate: | Multi-family mortgage | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 0 | 0 |
2022-2021 | 0 | 0 |
2021-2020 | 0 | 0 |
2020-2019 | 0 | 0 |
2019-2018 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 0 | 0 |
Residential real estate: | Multi-family mortgage | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 0 | 0 |
2022-2021 | 0 | 0 |
2021-2020 | 0 | 0 |
2020-2019 | 0 | 0 |
2019-2018 | 0 | 0 |
Prior | 1,072 | 1,166 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 1,072 | 1,166 |
Residential real estate: | 1-to-4 family mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 198,613 | 569,437 |
2022-2021 | 503,193 | 453,564 |
2021-2020 | 403,364 | 166,187 |
2020-2019 | 149,330 | 95,326 |
2019-2018 | 82,595 | 70,157 |
Prior | 231,457 | 218,450 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 1,568,552 | 1,573,121 |
Current-period gross charge-offs, 2023 | 0 | |
Current-period gross charge-offs, 2022 | 18 | |
Current-period gross charge-offs, 2021 | 0 | |
Current-period gross charge-offs, 2020 | 4 | |
Current-period gross charge-offs, 2019 | 0 | |
Current-period gross charge-offs, prior | 24 | |
Revolving Loans Amortized Cost Basis | 0 | |
Total | 46 | |
Residential real estate: | 1-to-4 family mortgage | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 198,537 | 568,210 |
2022-2021 | 500,628 | 448,401 |
2021-2020 | 399,338 | 160,715 |
2020-2019 | 145,484 | 93,548 |
2019-2018 | 81,905 | 68,113 |
Prior | 226,587 | 211,019 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 1,552,479 | 1,550,006 |
Residential real estate: | 1-to-4 family mortgage | Nonperforming | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 76 | 1,227 |
2022-2021 | 2,565 | 5,163 |
2021-2020 | 4,026 | 5,472 |
2020-2019 | 3,846 | 1,778 |
2019-2018 | 690 | 2,044 |
Prior | 4,870 | 7,431 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 16,073 | 23,115 |
Residential real estate: | Residential line of credit | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 0 | 0 |
2022-2021 | 0 | 0 |
2021-2020 | 0 | 0 |
2020-2019 | 0 | 0 |
2019-2018 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 530,912 | 496,660 |
Total | 530,912 | 496,660 |
Current-period gross charge-offs, 2023 | 0 | |
Current-period gross charge-offs, 2022 | 0 | |
Current-period gross charge-offs, 2021 | 0 | |
Current-period gross charge-offs, 2020 | 0 | |
Current-period gross charge-offs, 2019 | 0 | |
Current-period gross charge-offs, prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Total | 0 | |
Residential real estate: | Residential line of credit | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 0 | 0 |
2022-2021 | 0 | 0 |
2021-2020 | 0 | 0 |
2020-2019 | 0 | 0 |
2019-2018 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 528,439 | 495,129 |
Total | 528,439 | 495,129 |
Residential real estate: | Residential line of credit | Nonperforming | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 0 | 0 |
2022-2021 | 0 | 0 |
2021-2020 | 0 | 0 |
2020-2019 | 0 | 0 |
2019-2018 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 2,473 | 1,531 |
Total | 2,473 | 1,531 |
Commercial real estate: | Owner-occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 118,030 | 237,963 |
2022-2021 | 268,798 | 225,859 |
2021-2020 | 233,084 | 110,972 |
2020-2019 | 115,397 | 153,162 |
2019-2018 | 152,060 | 69,602 |
Prior | 289,659 | 254,690 |
Revolving Loans Amortized Cost Basis | 55,043 | 62,332 |
Total | 1,232,071 | 1,114,580 |
Current-period gross charge-offs, 2023 | 0 | |
Current-period gross charge-offs, 2022 | 0 | |
Current-period gross charge-offs, 2021 | 144 | |
Current-period gross charge-offs, 2020 | 0 | |
Current-period gross charge-offs, 2019 | 0 | |
Current-period gross charge-offs, prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Total | 144 | |
Commercial real estate: | Owner-occupied | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 118,030 | 237,862 |
2022-2021 | 261,196 | 223,883 |
2021-2020 | 231,241 | 110,748 |
2020-2019 | 115,397 | 148,405 |
2019-2018 | 151,146 | 66,101 |
Prior | 281,253 | 246,414 |
Revolving Loans Amortized Cost Basis | 53,970 | 57,220 |
Total | 1,212,233 | 1,090,633 |
Commercial real estate: | Owner-occupied | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 0 | 101 |
2022-2021 | 1,297 | 683 |
2021-2020 | 1,827 | 0 |
2020-2019 | 0 | 168 |
2019-2018 | 154 | 2,225 |
Prior | 2,617 | 1,258 |
Revolving Loans Amortized Cost Basis | 0 | 5,000 |
Total | 5,895 | 9,435 |
Commercial real estate: | Owner-occupied | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 0 | 0 |
2022-2021 | 6,305 | 1,293 |
2021-2020 | 16 | 224 |
2020-2019 | 0 | 4,589 |
2019-2018 | 760 | 1,276 |
Prior | 5,789 | 7,018 |
Revolving Loans Amortized Cost Basis | 1,073 | 112 |
Total | 13,943 | 14,512 |
Commercial real estate: | Non-owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 47,026 | 467,360 |
2022-2021 | 474,560 | 442,577 |
2021-2020 | 483,854 | 131,497 |
2020-2019 | 117,429 | 159,351 |
2019-2018 | 178,829 | 214,104 |
Prior | 598,250 | 488,213 |
Revolving Loans Amortized Cost Basis | 43,577 | 60,908 |
Total | 1,943,525 | 1,964,010 |
Current-period gross charge-offs, 2023 | 0 | |
Current-period gross charge-offs, 2022 | 0 | |
Current-period gross charge-offs, 2021 | 0 | |
Current-period gross charge-offs, 2020 | 0 | |
Current-period gross charge-offs, 2019 | 0 | |
Current-period gross charge-offs, prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Total | 0 | |
Commercial real estate: | Non-owner occupied | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 47,026 | 467,360 |
2022-2021 | 474,560 | 440,319 |
2021-2020 | 478,878 | 131,497 |
2020-2019 | 117,429 | 159,205 |
2019-2018 | 178,448 | 210,752 |
Prior | 580,168 | 473,607 |
Revolving Loans Amortized Cost Basis | 43,577 | 60,908 |
Total | 1,920,086 | 1,943,648 |
Commercial real estate: | Non-owner occupied | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 0 | 0 |
2022-2021 | 0 | 0 |
2021-2020 | 3,975 | 0 |
2020-2019 | 0 | 0 |
2019-2018 | 0 | 82 |
Prior | 10,435 | 2,459 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 14,410 | 2,541 |
Commercial real estate: | Non-owner occupied | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 0 | 0 |
2022-2021 | 0 | 2,258 |
2021-2020 | 1,001 | 0 |
2020-2019 | 0 | 146 |
2019-2018 | 381 | 3,270 |
Prior | 7,647 | 12,147 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 9,029 | 17,821 |
Consumer and other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 104,927 | 118,803 |
2022-2021 | 92,582 | 58,175 |
2021-2020 | 47,749 | 42,468 |
2020-2019 | 36,747 | 30,045 |
2019-2018 | 25,304 | 28,489 |
Prior | 97,674 | 84,843 |
Revolving Loans Amortized Cost Basis | 6,890 | 4,175 |
Total | 411,873 | 366,998 |
Current-period gross charge-offs, 2023 | 1,463 | |
Current-period gross charge-offs, 2022 | 564 | |
Current-period gross charge-offs, 2021 | 139 | |
Current-period gross charge-offs, 2020 | 201 | |
Current-period gross charge-offs, 2019 | 110 | |
Current-period gross charge-offs, prior | 372 | |
Revolving Loans Amortized Cost Basis | 2 | |
Total | 2,851 | |
Consumer and other | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 104,399 | 118,637 |
2022-2021 | 91,557 | 56,779 |
2021-2020 | 45,187 | 41,008 |
2020-2019 | 34,928 | 29,139 |
2019-2018 | 24,040 | 26,982 |
Prior | 93,833 | 82,318 |
Revolving Loans Amortized Cost Basis | 6,890 | 4,175 |
Total | 400,834 | 359,038 |
Consumer and other | Nonperforming | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 528 | 166 |
2022-2021 | 1,025 | 1,396 |
2021-2020 | 2,562 | 1,460 |
2020-2019 | 1,819 | 906 |
2019-2018 | 1,264 | 1,507 |
Prior | 3,841 | 2,525 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 11,039 | 7,960 |
Total consumer type loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 303,540 | 688,240 |
2022-2021 | 595,775 | 511,739 |
2021-2020 | 451,113 | 208,655 |
2020-2019 | 186,077 | 125,371 |
2019-2018 | 107,899 | 98,646 |
Prior | 329,131 | 303,293 |
Revolving Loans Amortized Cost Basis | 537,802 | 500,835 |
Total | 2,511,337 | 2,436,779 |
Current-period gross charge-offs, 2023 | 1,463 | |
Current-period gross charge-offs, 2022 | 582 | |
Current-period gross charge-offs, 2021 | 139 | |
Current-period gross charge-offs, 2020 | 205 | |
Current-period gross charge-offs, 2019 | 110 | |
Current-period gross charge-offs, prior | 396 | |
Revolving Loans Amortized Cost Basis | 2 | |
Total | 2,897 | |
Total consumer type loans | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 302,936 | 686,847 |
2022-2021 | 592,185 | 505,180 |
2021-2020 | 444,525 | 201,723 |
2020-2019 | 180,412 | 122,687 |
2019-2018 | 105,945 | 95,095 |
Prior | 320,420 | 293,337 |
Revolving Loans Amortized Cost Basis | 535,329 | 499,304 |
Total | 2,481,752 | 2,404,173 |
Total consumer type loans | Nonperforming | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 604 | 1,393 |
2022-2021 | 3,590 | 6,559 |
2021-2020 | 6,588 | 6,932 |
2020-2019 | 5,665 | 2,684 |
2019-2018 | 1,954 | 3,551 |
Prior | 8,711 | 9,956 |
Revolving Loans Amortized Cost Basis | 2,473 | 1,531 |
Total | 29,585 | 32,606 |
Total Commercial Loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 601,159 | 1,928,033 |
2022-2021 | 1,857,369 | 1,516,466 |
2021-2020 | 1,251,216 | 550,683 |
2020-2019 | 423,014 | 523,364 |
2019-2018 | 470,669 | 348,233 |
Prior | 1,062,756 | 897,332 |
Revolving Loans Amortized Cost Basis | 1,231,263 | 1,097,322 |
Total | 6,897,446 | 6,861,433 |
Current-period gross charge-offs, 2023 | 14 | |
Current-period gross charge-offs, 2022 | 7 | |
Current-period gross charge-offs, 2021 | 345 | |
Current-period gross charge-offs, 2020 | 22 | |
Current-period gross charge-offs, 2019 | 0 | |
Current-period gross charge-offs, prior | 87 | |
Revolving Loans Amortized Cost Basis | 131 | |
Total | 606 | |
Total Commercial Loans | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 600,701 | 1,927,662 |
2022-2021 | 1,820,559 | 1,511,093 |
2021-2020 | 1,233,812 | 548,528 |
2020-2019 | 412,165 | 516,650 |
2019-2018 | 468,969 | 340,964 |
Prior | 1,028,269 | 864,548 |
Revolving Loans Amortized Cost Basis | 1,177,165 | 1,083,355 |
Total | 6,741,640 | 6,792,800 |
Total Commercial Loans | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 1 | 226 |
2022-2021 | 23,903 | 690 |
2021-2020 | 11,828 | 15 |
2020-2019 | 1,202 | 328 |
2019-2018 | 305 | 2,450 |
Prior | 13,850 | 5,195 |
Revolving Loans Amortized Cost Basis | 19,549 | 7,520 |
Total | 70,638 | 16,424 |
Total Commercial Loans | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2023-2022 | 457 | 145 |
2022-2021 | 12,907 | 4,683 |
2021-2020 | 5,576 | 2,140 |
2020-2019 | 9,647 | 6,386 |
2019-2018 | 1,395 | 4,819 |
Prior | 20,637 | 27,589 |
Revolving Loans Amortized Cost Basis | 34,549 | 6,447 |
Total | $ 85,168 | $ 52,209 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses on Loans HFI - Schedule of Analysis of Aging by Class of Financing Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | $ 9,408,783 | $ 9,298,212 |
90 days or more and accruing interest | 12,693 | 18,415 |
Nonaccrual loans | 48,230 | 27,431 |
30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 47,043 | 31,296 |
Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 9,300,817 | 9,221,070 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,720,733 | 1,645,783 |
90 days or more and accruing interest | 0 | 136 |
Nonaccrual loans | 21,730 | 1,307 |
Commercial and industrial | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 732 | 1,650 |
Commercial and industrial | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,698,271 | 1,642,690 |
Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,397,313 | 1,657,488 |
90 days or more and accruing interest | 165 | 0 |
Nonaccrual loans | 2,872 | 389 |
Construction | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 6,579 | 1,246 |
Construction | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,387,697 | 1,655,853 |
Residential real estate: | 1-to-4 family mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,568,552 | 1,573,121 |
90 days or more and accruing interest | 9,355 | 16,639 |
Nonaccrual loans | 6,718 | 6,476 |
Residential real estate: | 1-to-4 family mortgage | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 21,768 | 15,470 |
Residential real estate: | 1-to-4 family mortgage | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,530,711 | 1,534,536 |
Residential real estate: | Residential line of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 530,912 | 496,660 |
90 days or more and accruing interest | 1,337 | 131 |
Nonaccrual loans | 1,136 | 1,400 |
Residential real estate: | Residential line of credit | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 2,464 | 772 |
Residential real estate: | Residential line of credit | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 525,975 | 494,357 |
Residential real estate: | Multi-family mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 603,804 | 479,572 |
90 days or more and accruing interest | 0 | 0 |
Nonaccrual loans | 32 | 42 |
Residential real estate: | Multi-family mortgage | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 0 | 0 |
Residential real estate: | Multi-family mortgage | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 603,772 | 479,530 |
Commercial real estate: | Owner-occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,232,071 | 1,114,580 |
90 days or more and accruing interest | 0 | 0 |
Nonaccrual loans | 3,188 | 5,410 |
Commercial real estate: | Owner-occupied | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 480 | 1,948 |
Commercial real estate: | Owner-occupied | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,228,403 | 1,107,222 |
Commercial real estate: | Non-owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,943,525 | 1,964,010 |
90 days or more and accruing interest | 0 | 0 |
Nonaccrual loans | 3,351 | 5,956 |
Commercial real estate: | Non-owner occupied | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 4,059 | 102 |
Commercial real estate: | Non-owner occupied | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 1,936,115 | 1,957,952 |
Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 411,873 | 366,998 |
90 days or more and accruing interest | 1,836 | 1,509 |
Nonaccrual loans | 9,203 | 6,451 |
Consumer and other | 30-89 days past due and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | 10,961 | 10,108 |
Consumer and other | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment | $ 389,873 | $ 348,930 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses on Loans HFI - Schedule of Amortized Cost, Related Allowance and Interest Income of Non-accrual Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual with no related allowance | $ 14,310 | $ 15,714 |
Nonaccrual with related allowance | 33,920 | 11,717 |
Related allowance | 5,696 | 433 |
Year to date Interest Income | 6,128 | 1,544 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual with no related allowance | 3,678 | 790 |
Nonaccrual with related allowance | 18,052 | 517 |
Related allowance | 5,011 | 10 |
Year to date Interest Income | 2,451 | 181 |
Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual with no related allowance | 2,267 | 0 |
Nonaccrual with related allowance | 605 | 389 |
Related allowance | 59 | 7 |
Year to date Interest Income | 335 | 28 |
Residential real estate: | 1-to-4 family mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual with no related allowance | 1,444 | 2,834 |
Nonaccrual with related allowance | 5,274 | 3,642 |
Related allowance | 103 | 78 |
Year to date Interest Income | 410 | 274 |
Residential real estate: | Residential line of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual with no related allowance | 685 | 1,134 |
Nonaccrual with related allowance | 451 | 266 |
Related allowance | 8 | 4 |
Year to date Interest Income | 141 | 136 |
Residential real estate: | Multi-family mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual with no related allowance | 0 | 1 |
Nonaccrual with related allowance | 32 | 41 |
Related allowance | 1 | 1 |
Year to date Interest Income | 3 | 3 |
Commercial real estate: | Owner-occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual with no related allowance | 2,920 | 5,200 |
Nonaccrual with related allowance | 268 | 210 |
Related allowance | 15 | 1 |
Year to date Interest Income | 514 | 232 |
Commercial real estate: | Non-owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual with no related allowance | 3,316 | 5,755 |
Nonaccrual with related allowance | 35 | 201 |
Related allowance | 1 | 5 |
Year to date Interest Income | 1,221 | 332 |
Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual with no related allowance | 0 | 0 |
Nonaccrual with related allowance | 9,203 | 6,451 |
Related allowance | 498 | 327 |
Year to date Interest Income | $ 1,053 | $ 358 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses on Loans HFI - Schedule of Financial Effect of TDRs (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 9 | 23 |
Pre-modification outstanding recorded investment | $ 1,075 | $ 34,115 |
Post-modification outstanding recorded investment | 1,301 | 34,115 |
Charge offs and specific reserves | $ 0 | $ 446 |
Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 3 | 8 |
Pre-modification outstanding recorded investment | $ 612 | $ 15,430 |
Post-modification outstanding recorded investment | 522 | 15,430 |
Charge offs and specific reserves | $ 0 | $ 446 |
Construction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 0 | |
Pre-modification outstanding recorded investment | $ 0 | |
Post-modification outstanding recorded investment | 0 | |
Charge offs and specific reserves | $ 0 | |
Residential real estate: | 1-to-4 family mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 3 | 3 |
Pre-modification outstanding recorded investment | $ 391 | $ 945 |
Post-modification outstanding recorded investment | 707 | 945 |
Charge offs and specific reserves | $ 0 | $ 0 |
Residential real estate: | Residential line of credit | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 1 | 3 |
Pre-modification outstanding recorded investment | $ 49 | $ 485 |
Post-modification outstanding recorded investment | 49 | 485 |
Charge offs and specific reserves | $ 0 | $ 0 |
Residential real estate: | Multi-family mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 1 | |
Pre-modification outstanding recorded investment | $ 49 | |
Post-modification outstanding recorded investment | 49 | |
Charge offs and specific reserves | $ 0 | |
Consumer and other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 2 | |
Pre-modification outstanding recorded investment | $ 23 | |
Post-modification outstanding recorded investment | 23 | |
Charge offs and specific reserves | $ 0 | |
Commercial real estate | Owner-occupied | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 7 | |
Pre-modification outstanding recorded investment | $ 5,209 | |
Post-modification outstanding recorded investment | 5,209 | |
Charge offs and specific reserves | $ 0 | |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 1 | |
Pre-modification outstanding recorded investment | $ 11,997 | |
Post-modification outstanding recorded investment | 11,997 | |
Charge offs and specific reserves | $ 0 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses on Loans HFI - Schedule of Individually Assessed Allowance for Credit Losses for Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | $ 150,326 | $ 134,192 | $ 125,559 | $ 170,389 |
Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 19,599 | 11,106 | 15,751 | 14,748 |
Construction | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 35,372 | 39,808 | 28,576 | 58,477 |
Residential real estate: | 1-to-4 family mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 26,505 | 26,141 | 19,104 | 19,220 |
Residential real estate: | Residential line of credit | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 9,468 | 7,494 | 5,903 | 10,534 |
Commercial real estate: | Owner-occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 10,653 | 7,783 | 12,593 | 4,849 |
Commercial real estate: | Non-owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 22,965 | 21,916 | 25,768 | 44,147 |
Consumer and other | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 16,922 | 13,454 | $ 10,888 | $ 11,240 |
Real Estate | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 20,189 | 19,511 | ||
Real Estate | Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | 2,596 | ||
Real Estate | Construction | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 8,224 | |||
Real Estate | Residential real estate: | 1-to-4 family mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 5,317 | 4,467 | ||
Real Estate | Residential real estate: | Residential line of credit | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 1,245 | 1,135 | ||
Real Estate | Commercial real estate: | Owner-occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 1,975 | 5,424 | ||
Real Estate | Commercial real estate: | Non-owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 3,316 | 5,755 | ||
Real Estate | Consumer and other | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 112 | 134 | ||
Farmland | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 1,523 | |||
Farmland | Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 363 | |||
Farmland | Construction | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | |||
Farmland | Residential real estate: | 1-to-4 family mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | |||
Farmland | Residential real estate: | Residential line of credit | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | |||
Farmland | Commercial real estate: | Owner-occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 1,160 | |||
Farmland | Commercial real estate: | Non-owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | |||
Farmland | Consumer and other | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | |||
Business Assets | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 20,599 | 0 | ||
Business Assets | Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 20,599 | 0 | ||
Business Assets | Construction | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | |||
Business Assets | Residential real estate: | 1-to-4 family mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | 0 | ||
Business Assets | Residential real estate: | Residential line of credit | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | 0 | ||
Business Assets | Commercial real estate: | Owner-occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | 0 | ||
Business Assets | Commercial real estate: | Non-owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | 0 | ||
Business Assets | Consumer and other | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | 0 | ||
Total | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 42,311 | 19,511 | ||
Individually assessed allowance for credit loss | 5,136 | 194 | ||
Total | Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 20,962 | 2,596 | ||
Individually assessed allowance for credit loss | 4,946 | 0 | ||
Total | Construction | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 8,224 | |||
Individually assessed allowance for credit loss | 30 | |||
Total | Residential real estate: | 1-to-4 family mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 5,317 | 4,467 | ||
Individually assessed allowance for credit loss | 129 | 194 | ||
Total | Residential real estate: | Residential line of credit | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 1,245 | 1,135 | ||
Individually assessed allowance for credit loss | 10 | 0 | ||
Total | Commercial real estate: | Owner-occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 3,135 | 5,424 | ||
Individually assessed allowance for credit loss | 0 | 0 | ||
Total | Commercial real estate: | Non-owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 3,316 | 5,755 | ||
Individually assessed allowance for credit loss | 0 | 0 | ||
Total | Consumer and other | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 112 | 134 | ||
Individually assessed allowance for credit loss | $ 21 | $ 0 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses on Loans HFI - Schedule of Changes in Allowance for Credit Losses on Loans HFI by Class of Financing Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of period | $ 134,192 | $ 125,559 | $ 170,389 |
Provision for (reversal of) credit losses on loans HFI | 16,738 | 10,393 | (38,995) |
Recoveries of loans previously charged-off | 2,899 | 2,941 | 2,033 |
Loans charged off | (3,503) | (4,701) | (7,868) |
Balance at end of period | 150,326 | 134,192 | 125,559 |
Commercial and industrial | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of period | 11,106 | 15,751 | 14,748 |
Provision for (reversal of) credit losses on loans HFI | 8,682 | (4,563) | 4,178 |
Recoveries of loans previously charged-off | 273 | 2,005 | 861 |
Loans charged off | (462) | (2,087) | (4,036) |
Balance at end of period | 19,599 | 11,106 | 15,751 |
Construction | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of period | 39,808 | 28,576 | 58,477 |
Provision for (reversal of) credit losses on loans HFI | (4,446) | 11,221 | (29,874) |
Recoveries of loans previously charged-off | 10 | 11 | 3 |
Loans charged off | 0 | 0 | (30) |
Balance at end of period | 35,372 | 39,808 | 28,576 |
Residential real estate: | 1-to-4 family mortgage | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of period | 26,141 | 19,104 | 19,220 |
Provision for (reversal of) credit losses on loans HFI | 310 | 7,060 | (87) |
Recoveries of loans previously charged-off | 100 | 54 | 125 |
Loans charged off | (46) | (77) | (154) |
Balance at end of period | 26,505 | 26,141 | 19,104 |
Residential real estate: | Residential line of credit | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of period | 7,494 | 5,903 | 10,534 |
Provision for (reversal of) credit losses on loans HFI | 1,973 | 1,574 | (4,728) |
Recoveries of loans previously charged-off | 1 | 17 | 115 |
Loans charged off | 0 | 0 | (18) |
Balance at end of period | 9,468 | 7,494 | 5,903 |
Residential real estate: | Multi-family mortgage | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of period | 6,490 | 6,976 | 7,174 |
Provision for (reversal of) credit losses on loans HFI | 2,352 | (486) | (197) |
Recoveries of loans previously charged-off | 0 | 0 | 0 |
Loans charged off | 0 | 0 | (1) |
Balance at end of period | 8,842 | 6,490 | 6,976 |
Commercial real estate: | Owner-occupied | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of period | 7,783 | 12,593 | 4,849 |
Provision for (reversal of) credit losses on loans HFI | 2,905 | (4,883) | 7,588 |
Recoveries of loans previously charged-off | 109 | 88 | 156 |
Loans charged off | (144) | (15) | 0 |
Balance at end of period | 10,653 | 7,783 | 12,593 |
Commercial real estate: | Non-owner occupied | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of period | 21,916 | 25,768 | 44,147 |
Provision for (reversal of) credit losses on loans HFI | (784) | (3,584) | (16,813) |
Recoveries of loans previously charged-off | 1,833 | 0 | 0 |
Loans charged off | 0 | (268) | (1,566) |
Balance at end of period | 22,965 | 21,916 | 25,768 |
Consumer and other | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of period | 13,454 | 10,888 | 11,240 |
Provision for (reversal of) credit losses on loans HFI | 5,746 | 4,054 | 938 |
Recoveries of loans previously charged-off | 573 | 766 | 773 |
Loans charged off | (2,851) | (2,254) | (2,063) |
Balance at end of period | $ 16,922 | $ 13,454 | $ 10,888 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Premises and Equipment and Related Accumulated Depreciation (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Finance lease | $ 1,256 | $ 1,367 |
Premises and equipment and finance lease, gross | 207,388 | 222,063 |
Less: accumulated depreciation and amortization | (51,657) | (75,747) |
Total premises and equipment | 155,731 | 146,316 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 35,092 | 32,985 |
Premises | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 112,092 | 109,277 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 25,734 | 49,203 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 28,271 | 19,001 |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 4,943 | $ 10,230 |
Premises and Equipment - Narrat
Premises and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 9,797 | $ 7,554 | $ 7,411 |
Other Real Estate Owned - Sched
Other Real Estate Owned - Schedule of Other Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Real Estate [Roll Forward] | |||
Balance at beginning of period | $ 5,794 | $ 9,777 | $ 12,111 |
Transfers from loans | 2,736 | 1,437 | 5,262 |
Transfers to other assets | (75) | 0 | 0 |
Transfers to premises and equipment | 0 | (351) | 0 |
Proceeds from sale of other real estate owned | (6,083) | (4,955) | (9,396) |
Gain on sale of other real estate owned | 835 | 328 | 3,248 |
Loans provided for sales of other real estate owned | 0 | 0 | (704) |
Write-downs and partial liquidations | (15) | (442) | (744) |
Balance at end of period | $ 3,192 | $ 5,794 | $ 9,777 |
Other Real Estate Owned - Narra
Other Real Estate Owned - Narrative (Details) - Residential Real Estate Properties - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Real Estate Properties [Line Items] | ||
Foreclosed residential real estate properties | $ 2,414 | $ 840 |
Total foreclosure proceedings in process | $ 3,377 | $ 2,653 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 242,561,000 | $ 242,561,000 | $ 242,561,000 |
Goodwill impairment | 0 | ||
Amortization of core deposit and other intangibles | $ 3,659,000 | $ 4,585,000 | $ 5,473,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Core Deposit and Other Intangibles (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 61,435 | $ 61,435 |
Accumulated Amortization | (52,726) | (49,067) |
Net Carrying Amount | 8,709 | 12,368 |
Core deposit intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 59,835 | 59,835 |
Accumulated Amortization | (51,699) | (48,200) |
Net Carrying Amount | 8,136 | 11,635 |
Customer base trust intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,600 | 1,600 |
Accumulated Amortization | (1,027) | (867) |
Net Carrying Amount | $ 573 | $ 733 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Estimated Aggregate Amortization Expense of Core Deposit and Other Intangibles (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 2,946 | |
2025 | 2,306 | |
2026 | 1,563 | |
2027 | 1,080 | |
2028 | 572 | |
Thereafter | 242 | |
Net Carrying Amount | $ 8,709 | $ 12,368 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) branch lease | Dec. 31, 2022 USD ($) banking_location | Dec. 31, 2021 USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Lessee, number of operating leases | lease | 54 | ||
Lessee, number of finance leases | lease | 1 | ||
Number of branch closures | branch | 2 | ||
Loss on modification and termination of lease | $ 364 | ||
Number of locations vacated | banking_location | 2 | ||
Gain on modification and termination of lease | $ (18) | ||
Loss (gain) on lease modifications and terminations | $ 1,770 | $ 346 | $ (805) |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, operating and finance lease, renewal term | 20 years |
Leases - Schedule of Informatio
Leases - Schedule of Information Related to Company's Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating leases | $ 54,295 | $ 60,043 |
Finance leases | 1,256 | 1,367 |
Total right-of-use assets | 55,551 | 61,410 |
Operating leases | 67,643 | 69,754 |
Finance leases | 1,326 | 1,420 |
Total lease liabilities | $ 68,969 | $ 71,174 |
Weighted average remaining lease term (in years) - operating | 11 years 7 months 6 days | 12 years 1 month 6 days |
Weighted average remaining lease term (in years) - finance | 11 years 4 months 24 days | 12 years 4 months 24 days |
Weighted average discount rate - operating | 3.39% | 3.08% |
Weighted average discount rate - finance | 1.76% | 1.76% |
Right-of-use asset - finance [Extensible Enumeration] | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization |
Lease liabilities - finance [Extensible Enumeration] | Borrowings | Borrowings |
Leases - Schedule of Lease Expe
Leases - Schedule of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Amortization of right-of-use asset | $ 8,516 | $ 8,441 | $ 7,636 |
Short-term lease cost | 540 | 526 | 427 |
Variable lease cost | 1,205 | 1,078 | 1,003 |
Loss (gain) on lease modifications and terminations | 1,770 | 346 | (805) |
Interest on lease liabilities | 24 | 28 | 25 |
Amortization of right-of-use asset | 111 | 120 | 101 |
Sublease income | (957) | (993) | (573) |
Total lease cost | $ 11,209 | $ 9,546 | $ 7,814 |
Leases - Schedule of Maturity A
Leases - Schedule of Maturity Analysis of Operating and Finance Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
December 31, 2024 | $ 8,453 | |
December 31, 2025 | 8,448 | |
December 31, 2026 | 8,328 | |
December 31, 2027 | 7,878 | |
December 31, 2028 | 6,979 | |
Thereafter | 44,147 | |
Total undiscounted future minimum lease payments | 84,233 | |
Less: imputed interest | (16,590) | |
Operating leases | 67,643 | $ 69,754 |
Finance Lease | ||
December 31, 2024 | 120 | |
December 31, 2025 | 121 | |
December 31, 2026 | 123 | |
December 31, 2027 | 125 | |
December 31, 2028 | 127 | |
Thereafter | 850 | |
Total undiscounted future minimum lease payments | 1,466 | |
Less: imputed interest | (140) | |
Finance leases | $ 1,326 | $ 1,420 |
Mortgage Servicing Rights - Sch
Mortgage Servicing Rights - Schedule of Changes in Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Carrying value at beginning of period | $ 168,365 | $ 115,512 | $ 79,997 |
Capitalization | 7,192 | 20,809 | 39,018 |
Change in fair value: | |||
Due to payoffs/paydowns | (12,327) | (16,012) | (30,583) |
Due to change in valuation inputs or assumptions | 1,019 | 48,056 | 27,080 |
Carrying value at end of period | $ 164,249 | $ 168,365 | $ 115,512 |
Mortgage Servicing Rights - S_2
Mortgage Servicing Rights - Schedule of Servicing Income and Expense Included in Mortgage Banking Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Servicing income: | |||
Servicing income | $ 30,263 | $ 30,763 | $ 28,890 |
Contractually Specified Servicing Fee Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Mortgage banking income, service charges on deposit accounts, investment services and trust income, ATM and interchange fees, Other expense | Mortgage banking income, service charges on deposit accounts, investment services and trust income, ATM and interchange fees, Other expense | Mortgage banking income, service charges on deposit accounts, investment services and trust income, ATM and interchange fees, Other expense |
Change in fair value of mortgage servicing rights | $ (11,308) | $ 32,044 | $ (3,503) |
Change in fair value of derivative hedging instruments | (4,918) | (42,143) | (8,614) |
Servicing income | 14,037 | 20,664 | 16,773 |
Servicing expenses | 8,093 | 10,259 | 9,862 |
Net servicing income (loss) | $ 5,944 | $ 10,405 | $ 6,911 |
Mortgage Servicing Rights - S_3
Mortgage Servicing Rights - Schedule of Data and Key Economic Assumptions Related to Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Transfers and Servicing of Financial Assets [Abstract] | ||
Unpaid principal balance of mortgage loans sold and serviced for others | $ 10,762,906 | $ 11,086,582 |
Weighted-average prepayment speed (CPR) | 6.19% | 5.55% |
Estimated impact on fair value of a 10% increase | $ (4,616) | $ (4,886) |
Estimated impact on fair value of a 20% increase | $ (8,924) | $ (9,447) |
Discount rate | 9.62% | 9.10% |
Estimated impact on fair value of a 100 bp increase | $ (7,637) | $ (8,087) |
Estimated impact on fair value of a 200 bp increase | $ (14,624) | $ (15,475) |
Weighted-average coupon interest rate | 3.47% | 3.31% |
Weighted-average servicing fee (basis points) | 0.27% | 0.27% |
Weighted-average remaining maturity (in months) | 334 months | 332 months |
Mortgage Servicing Rights - Nar
Mortgage Servicing Rights - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Transfers and Servicing of Financial Assets [Abstract] | ||
Mortgage escrow deposit | $ 63,591 | $ 75,612 |
Other Assets and Other Liabil_3
Other Assets and Other Liabilities - Schedule of Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Assets And Other Liabilities [Abstract] | ||
Derivatives | $ 34,738 | $ 48,769 |
Deferred tax asset | 31,631 | 42,412 |
Equity securities without readily determinable market value | 25,191 | 22,496 |
FHLB lender risk account receivable | 20,258 | 19,737 |
Mortgage lending receivable | 16,344 | 14,425 |
Pledged collateral on derivative instruments | 14,042 | 23,325 |
Prepaid expenses | 13,594 | 9,280 |
Current income tax receivable | 5,930 | 7,373 |
Software | 525 | 108 |
Other assets | 41,156 | 40,031 |
Other assets | $ 203,409 | $ 227,956 |
Other Assets and Other Liabil_4
Other Assets and Other Liabilities - Schedule of Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Assets And Other Liabilities [Abstract] | ||
Derivatives | $ 38,215 | $ 63,229 |
Accrued interest payable | 18,809 | 8,648 |
Accrued payroll | 18,406 | 13,592 |
FHLB lender risk account guaranty | 9,746 | 9,558 |
Allowance for credit losses on unfunded commitments | 8,770 | 22,969 |
Deferred compensation | 2,152 | 2,424 |
Mortgage buyback reserve | 899 | 1,621 |
Other liabilities | 45,625 | 58,932 |
Accrued expenses and other liabilities | $ 142,622 | $ 180,973 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deposits [Abstract] | ||
Time deposits in denomination of greater than $250 | $ 644,588 | $ 556,537 |
Deposits in overdraft status reclassified as loans | $ 3,475 | $ 5,725 |
Deposits - Schedule of Maturiti
Deposits - Schedule of Maturities of Time Deposits (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Deposits [Abstract] | |
December 31, 2024 | $ 1,279,052 |
December 31, 2025 | 309,929 |
December 31, 2026 | 14,902 |
December 31, 2027 | 10,239 |
December 31, 2028 | 6,504 |
Thereafter | 7 |
Total | $ 1,620,633 |
Borrowings - Schedule of Long-t
Borrowings - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Outstanding Balance | $ 390,964 | $ 415,677 |
Weighted Average Interest Rate | 5.05% | 3.78% |
Securities sold under agreements to repurchase and federal funds purchased | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Outstanding Balance | $ 108,764 | $ 86,945 |
Weighted Average Interest Rate | 5.05% | 3.78% |
FHLB advances | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Outstanding Balance | $ 175,000 | |
Weighted Average Interest Rate | 0% | 4.44% |
Bank Term Funding Program | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Outstanding Balance | $ 130,000 | $ 0 |
Weighted Average Interest Rate | 4.85% | 0% |
Subordinated debt, net | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Outstanding Balance | $ 129,645 | $ 126,101 |
Weighted Average Interest Rate | 5.52% | 5.31% |
Other borrowings | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Outstanding Balance | $ 22,555 | $ 27,631 |
Weighted Average Interest Rate | 0.10% | 0.09% |
Borrowings - Securities Sold Un
Borrowings - Securities Sold Under Agreements to Repurchase (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements to repurchase | $ 19,328,000 | $ 21,945,000 |
Securities sold under agreements to repurchase, average rate paid | 1.60% | 0.18% |
Percentage of fair value of securities pledged of the outstanding balance of repurchase agreement | 1 | |
Weighted Average Interest Rate | 5.05% | 3.78% |
Federal Funds Purchased | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Line of credit | $ 370,000,000 | $ 350,000,000 |
Collateral Pledged | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Letter of credit pledged | $ 89,436,000 | $ 65,000,000 |
Weighted Average Interest Rate | 5.79% | 5% |
Borrowings - Schedule of Securi
Borrowings - Schedule of Securities Sold Under Agreements to Repurchase (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Disclosure [Abstract] | ||
Balance at year end | $ 108,764 | $ 86,945 |
Average daily balance during the year | $ 29,860 | $ 28,497 |
Average interest rate during the year | 2.24% | 0.23% |
Maximum month-end balance during the year | $ 116,220 | $ 86,945 |
Weighted Average Interest Rate | 5.05% | 3.78% |
Borrowings - Federal Home Loan
Borrowings - Federal Home Loan Bank Advances (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Total borrowing capacity remaining | $ 1,757,702 | $ 1,270,240 |
Collateral securing line of credit | 3,014,023 | 2,673,464 |
Borrowings | 390,964 | 415,677 |
FHLB advances | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Advances | $ 0 | 0 |
Borrowings | $ 175,000 |
Borrowings - Schedule of Federa
Borrowings - Schedule of Federal Home Loan Bank Advances (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Disclosure [Abstract] | ||
Balance at year end | $ 0 | $ 175,000,000 |
Average daily balance during the year | $ 28,973,000 | $ 171,142,000 |
Average interest rate during the year | 5.13% | 3.26% |
Maximum month-end balance during the year | $ 125,000,000 | $ 540,000,000 |
Weighted average interest rate at year-end | 0% | 4.44% |
Borrowings - Bank Term Funding
Borrowings - Bank Term Funding Program (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Borrowings | $ 390,964 | $ 415,677 | |
Weighted Average Interest Rate | 5.05% | 3.78% | |
Bank Term Funding Program | |||
Debt Instrument [Line Items] | |||
Basis spread on debt variable rate | 0.10% | ||
Borrowings | $ 130,000 | $ 0 | |
Weighted Average Interest Rate | 4.85% | 0% |
Borrowings - Schedule of Bank T
Borrowings - Schedule of Bank Term Funding Program (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Borrowings | $ 390,964 | $ 415,677 |
Average daily balance during the year | 29,860 | 28,497 |
Maximum month-end balance during the year | $ 116,220 | $ 86,945 |
Weighted Average Interest Rate | 5.05% | 3.78% |
Bank Term Funding Program | ||
Debt Instrument [Line Items] | ||
Borrowings | $ 130,000 | $ 0 |
Average daily balance during the year | $ 1,781 | |
Average interest rate during the year | 4.85% | |
Maximum month-end balance during the year | $ 130,000 | |
Weighted Average Interest Rate | 4.85% | 0% |
Borrowings - Subordinated Debt
Borrowings - Subordinated Debt (Details) | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2003 USD ($) trust | Dec. 31, 2020 USD ($) | |
Debt Instrument [Line Items] | |||||
Net proceeds from sale of common stock under employee stock purchase program | $ 723,000 | $ 1,212,000 | $ 1,480,000 | ||
Subordinated debt, net | |||||
Debt Instrument [Line Items] | |||||
Number of separate trusts | trust | 2 | ||||
Long-term debt, term | 30 years | ||||
Subordinated debt, net | Floating Rate Trust Preferred Securities Trust I | |||||
Debt Instrument [Line Items] | |||||
Preferred securities issued to form the trust | $ 9,000,000 | ||||
Issuance of subordinated debt, net of issuance costs | 9,280,000 | ||||
Net proceeds from sale of common stock under employee stock purchase program | 280,000 | ||||
Subordinated debt, net | Floating Rate Trust Preferred Securities Trust II | |||||
Debt Instrument [Line Items] | |||||
Preferred securities issued to form the trust | 21,000,000 | ||||
Issuance of subordinated debt, net of issuance costs | 21,650,000 | ||||
Net proceeds from sale of common stock under employee stock purchase program | $ 650,000 | ||||
Subordinated debt, net | Fixed To Floating Rate Note | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 100,000,000 | ||||
Long-term debt, term | 10 years |
Borrowings - Schedule of Subord
Borrowings - Schedule of Subordinated Borrowing (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | |
Total Subordinated Debt, net | $ 129,645 |
Subordinated debt, net | |
Debt Instrument [Line Items] | |
Unamortized debt issuance costs | (612) |
Fair value hedge | (673) |
Floating Rate Trust Preferred Securities Trust | Subordinated debt, net | |
Debt Instrument [Line Items] | |
Actual, amount | 30,000 |
Floating Rate Trust Preferred Securities Trust I | Subordinated debt, net | |
Debt Instrument [Line Items] | |
Total Subordinated Debt, net | $ 9,280 |
Interest Rate | 8.84% |
Floating Rate Trust Preferred Securities Trust I | Subordinated debt, net | London Interbank Offered Rate LIBOR | |
Debt Instrument [Line Items] | |
Basis spread on debt variable rate | 3.51% |
Floating Rate Trust Preferred Securities Trust II | Subordinated debt, net | |
Debt Instrument [Line Items] | |
Total Subordinated Debt, net | $ 21,650 |
Interest Rate | 8.77% |
Floating Rate Trust Preferred Securities Trust II | Subordinated debt, net | London Interbank Offered Rate LIBOR | |
Debt Instrument [Line Items] | |
Basis spread on debt variable rate | 3.41% |
Fixed To Floating Rate Note | Subordinated debt, net | |
Debt Instrument [Line Items] | |
Total Subordinated Debt, net | $ 100,000 |
Interest Rate | 4.50% |
Basis spread on debt variable rate | 4.39% |
Borrowings - Other Borrowings (
Borrowings - Other Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Finance leases | $ 1,326 | $ 1,420 |
Borrowings | 390,964 | 415,677 |
Other borrowings | ||
Debt Instrument [Line Items] | ||
Borrowings | 22,555 | 27,631 |
GNMA | Other borrowings | ||
Debt Instrument [Line Items] | ||
Borrowings | $ 21,229 | $ 26,211 |
Income Taxes - Allocation of Fe
Income Taxes - Allocation of Federal and State Income Taxes between Current and Deferred Portions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Current | $ 31,467 | $ 22,451 | $ 21,980 |
Deferred | (1,415) | 12,552 | 30,770 |
Income tax expense, as reported | $ 30,052 | $ 35,003 | $ 52,750 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal taxes calculated at statutory rate | $ 31,561 | $ 33,510 | $ 51,041 |
(Decrease) increase resulting from: | |||
State taxes, net of federal benefit | (158) | 3,845 | 8,788 |
(Benefit) expense from equity based compensation | 219 | (392) | (2,719) |
Municipal interest income, net of interest disallowance | (1,804) | (1,774) | (1,818) |
Bank-owned life insurance | (393) | (305) | (324) |
NOL Carryback provision under CARES Act | 0 | 0 | (3,424) |
Offering costs | 0 | 0 | 123 |
Section 162(m) limitation | 244 | 241 | 1,381 |
Other | 383 | (122) | (298) |
Income tax expense, as reported | $ 30,052 | $ 35,003 | $ 52,750 |
Federal taxes calculated at statutory rate, percent | 21% | 21% | 21% |
Percentage increase (decrease) resulting from: | |||
State taxes, net of federal benefit | (0.10%) | 2.40% | 3.50% |
(Benefit) expense from equity based compensation | 0.10% | (0.20%) | (1.10%) |
Municipal interest income, net of interest disallowance | (1.20%) | (1.10%) | (0.80%) |
Bank-owned life insurance | (0.30%) | (0.20%) | (0.10%) |
NOL Carryback provision under CARES Act | 0% | 0% | (1.40%) |
Offering costs | 0% | 0% | 0.10% |
Section 162(m) limitation | 0.20% | 0.10% | 0.60% |
Other | 0.30% | (0.10%) | (0.10%) |
Total | 20% | 21.90% | 21.70% |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Allowance for credit losses | $ 39,228 | $ 38,646 |
Operating lease liabilities | 24,607 | 25,882 |
Net operating loss | 805 | 1,088 |
Amortization of core deposit intangibles | 1,135 | 653 |
Deferred compensation | 7,433 | 5,245 |
Unrealized loss on debt securities | 48,714 | 61,004 |
Other assets | 4,863 | 6,691 |
Subtotal | 126,785 | 139,209 |
Deferred tax liabilities: | ||
FHLB stock dividends | (263) | (484) |
Operating leases - right of use assets | (21,312) | (24,478) |
Depreciation | (5,996) | (7,274) |
Unrealized gain on equity securities | (2,122) | (2,287) |
Unrealized gain on cash flow hedges | (151) | (327) |
Mortgage servicing rights | (42,797) | (43,869) |
Goodwill | (17,995) | (15,869) |
Other liabilities | (4,518) | (2,209) |
Subtotal | (95,154) | (96,797) |
Net deferred tax assets | $ 31,631 | $ 42,412 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Loss Carryforwards [Line Items] | ||
Net operating loss | $ 805 | $ 1,088 |
Franklin Financial Network, Inc. | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss | $ 3,835 | $ 5,179 |
Dividend Restrictions (Details)
Dividend Restrictions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |||
Amount available for payment of dividend without prior approval | $ 218,415 | $ 161,251 | |
Cash dividends | $ 49,000 | $ 49,000 | $ 122,500 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Financial Instruments with Off-Balance Sheet Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance at end of period | $ 2,983,071 | $ 3,635,232 |
Commitments to extend credit, excluding interest rate lock commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance at end of period | 2,906,016 | 3,563,982 |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance at end of period | $ 77,055 | $ 71,250 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Floating interest rate loan commitments | $ 2,459,669 | $ 2,961,683 | |
Total principal amount of loans repurchased or indemnified | $ 8,552 | $ 7,834 | $ 7,364 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Allowance of Credit Losses on Unfunded Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies [Roll Forward] | |||
Balance at beginning of period | $ 134,192 | $ 125,559 | $ 170,389 |
Balance at end of period | 150,326 | 134,192 | 125,559 |
Unfunded Commitments | |||
Commitments and Contingencies [Roll Forward] | |||
Balance at beginning of period | 22,969 | 14,380 | 16,378 |
(Reversal of) provision for credit losses on unfunded commitments | (14,199) | 8,589 | (1,998) |
Balance at end of period | $ 8,770 | $ 22,969 | $ 14,380 |
Commitments and Contingencies_4
Commitments and Contingencies - Schedule of Activity in the Repurchase Reserve (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies [Roll Forward] | |||
Balance at beginning of period | $ 1,621 | $ 4,802 | $ 5,928 |
Provision for loan repurchases or indemnifications | (650) | (2,989) | (766) |
Losses on loans repurchased or indemnified | (72) | (192) | (360) |
Balance at end of period | $ 899 | $ 1,621 | $ 4,802 |
Derivatives - Schedule of Fair
Derivatives - Schedule of Fair Value Hedges (Details) - Interest Rate Swap - Designated as Hedging Instrument - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Remaining Maturity (In Years) | 5 months 26 days | |
Receive Fixed Rate | 1.48% | |
Notional Amount | $ 300,000,000 | $ 300,000,000 |
Estimated fair value | $ (5,170,000) | (13,677,000) |
Fixed Rate Money Market Deposits One | ||
Derivative [Line Items] | ||
Remaining Maturity (In Years) | 7 months 20 days | |
Receive Fixed Rate | 1.50% | |
Notional Amount | $ 75,000,000 | 75,000,000 |
Estimated fair value | $ (1,686,000) | (3,693,000) |
Fixed Rate Money Market Deposits Two | ||
Derivative [Line Items] | ||
Remaining Maturity (In Years) | 7 months 20 days | |
Receive Fixed Rate | 1.50% | |
Notional Amount | $ 125,000,000 | 125,000,000 |
Estimated fair value | $ (2,811,000) | (6,154,000) |
Subordinated debt, net | ||
Derivative [Line Items] | ||
Remaining Maturity (In Years) | 2 months 1 day | |
Receive Fixed Rate | 1.46% | |
Notional Amount | $ 100,000,000 | 100,000,000 |
Estimated fair value | $ (673,000) | $ (3,830,000) |
Derivatives - Schedule Income I
Derivatives - Schedule Income Included In Interest Expense On Borrowings And Deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivatives, Fair Value [Line Items] | |||
Interest (expense) income, net | $ 407,217 | $ 412,235 | $ 347,370 |
Interest Rate Swap | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Interest (expense) income, net | (10,806) | (1,112) | |
Interest Rate Swap | Designated as Hedging Instrument | Fixed Rate Money Market Deposits | |||
Derivatives, Fair Value [Line Items] | |||
Interest (expense) income, net | (7,176) | (717) | |
Interest Rate Swap | Designated as Hedging Instrument | Subordinated debt, net | |||
Derivatives, Fair Value [Line Items] | |||
Interest (expense) income, net | $ (3,630) | $ (395) |
Derivatives - Schedule of Balan
Derivatives - Schedule of Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Subordinated debt, net | ||
Derivative [Line Items] | ||
Unamortized subordinated debt issuance costs | $ 612 | |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Carrying Amount of the Hedged Item | 296,858 | $ 291,691 |
Cumulative Decrease in Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Item | (5,170) | (13,677) |
Money market and savings deposits | Interest Rate Swap | ||
Derivative [Line Items] | ||
Carrying Amount of the Hedged Item | 198,143 | 196,520 |
Cumulative Decrease in Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Item | (4,497) | (9,847) |
Purchase accounting fair value premium | 2,640 | 6,367 |
Borrowings | Interest Rate Swap | ||
Derivative [Line Items] | ||
Carrying Amount of the Hedged Item | 98,715 | 95,171 |
Cumulative Decrease in Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Item | (673) | (3,830) |
Borrowings | Interest Rate Swap | Subordinated debt, net | ||
Derivative [Line Items] | ||
Unamortized subordinated debt issuance costs | $ 612 | $ 999 |
Derivatives - Schedule of Deriv
Derivatives - Schedule of Derivative Financial Instruments (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Asset | $ 34,738,000 | $ 48,769,000 |
Liability | (38,215,000) | (63,229,000) |
Not designated as hedging | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,052,082,000 | 1,379,923,000 |
Asset | 34,159,000 | 47,514,000 |
Liability | (33,045,000) | (49,552,000) |
Not designated as hedging | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 569,865,000 | 560,310,000 |
Asset | 32,179,000 | 45,775,000 |
Liability | (32,184,000) | (45,762,000) |
Not designated as hedging | Forward commitments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 159,000,000 | 207,000,000 |
Asset | 0 | 306,000 |
Liability | (861,000) | 0 |
Not designated as hedging | Interest rate-lock commitments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 69,217,000 | 118,313,000 |
Asset | 1,203,000 | 1,433,000 |
Liability | 0 | 0 |
Not designated as hedging | Futures contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 254,000,000 | 494,300,000 |
Asset | 777,000 | 0 |
Liability | 0 | (3,790,000) |
Designated as hedging | Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 300,000,000 | 300,000,000 |
Designated as hedging | Interest Rate Swap | Subordinated debt, net | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 30,000,000 | |
Asset | $ 579,000 | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | |
Liability | $ 1,255,000 | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other liabilities |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | |||
Cash collateral pledged on derivatives | $ 14,042 | $ 23,325 | |
Designated as hedging | Interest Expense on Borrowings | |||
Derivative [Line Items] | |||
Gain (loss) included in income statement | $ 985 | $ (93) | $ (577) |
Derivatives - Schedule of Gains
Derivatives - Schedule of Gains (Losses) Included in the Consolidated Statements of Income Related to Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivatives, Fair Value [Line Items] | |||
Amount of (loss) gain recognized in other comprehensive (loss) income, net of tax (benefit) expense of $(176), $532 and $293 | $ (500) | $ 1,508 | $ 831 |
Other comprehensive income (loss), cash flow hedge, gain (loss), before reclassification, tax | (176) | 532 | 293 |
Designated as hedging | |||
Derivatives, Fair Value [Line Items] | |||
Amount of (loss) gain recognized in other comprehensive (loss) income, net of tax (benefit) expense of $(176), $532 and $293 | (500) | 1,508 | 831 |
Not designated as hedging | |||
Derivatives, Fair Value [Line Items] | |||
Gains (losses) on derivative financial instruments | (3,768) | 13,695 | (9,482) |
Not designated as hedging | Interest rate-lock commitments | |||
Derivatives, Fair Value [Line Items] | |||
Gains (losses) on derivative financial instruments | (230) | (5,764) | (27,194) |
Not designated as hedging | Forward commitments | |||
Derivatives, Fair Value [Line Items] | |||
Gains (losses) on derivative financial instruments | 953 | 55,804 | 25,661 |
Not designated as hedging | Futures contracts | |||
Derivatives, Fair Value [Line Items] | |||
Gains (losses) on derivative financial instruments | (3,366) | (36,381) | (7,949) |
Not designated as hedging | Option contracts | |||
Derivatives, Fair Value [Line Items] | |||
Gains (losses) on derivative financial instruments | $ (1,125) | $ 36 | $ 0 |
Derivatives (Details)
Derivatives (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Asset | $ 34,738 | $ 48,769 |
Liability | 38,215 | 63,229 |
Not designated as hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 1,052,082 | 1,379,923 |
Asset | 34,159 | 47,514 |
Liability | 33,045 | 49,552 |
Interest rate contracts | Not designated as hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 569,865 | 560,310 |
Asset | 32,179 | 45,775 |
Liability | 32,184 | 45,762 |
Forward commitments | Not designated as hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 159,000 | 207,000 |
Asset | 0 | 306 |
Liability | 861 | 0 |
Interest rate-lock commitments | Not designated as hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 69,217 | 118,313 |
Asset | 1,203 | 1,433 |
Liability | 0 | 0 |
Futures contracts | Not designated as hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 254,000 | 494,300 |
Asset | 777 | 0 |
Liability | $ 0 | $ 3,790 |
Derivatives - Schedule of Offse
Derivatives - Schedule of Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Offsetting Derivative Assets | ||
Gross amounts recognized | $ 31,468 | $ 44,273 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 31,468 | 44,273 |
Gross amounts not offset in the consolidated balance sheets, less financial instruments | 6,502 | 14,229 |
Gross amounts not offset in the consolidated balance sheets, less financial collateral pledged | 0 | 0 |
Net amounts | 24,966 | 30,044 |
Offsetting Derivative Liabilities | ||
Gross amounts recognized | 11,330 | 20,251 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 11,330 | 20,251 |
Gross amounts not offset in the consolidated balance sheets, less financial instruments | 6,502 | 14,229 |
Gross amounts not offset in the consolidated balance sheets, less financial collateral pledged | 4,828 | 6,022 |
Net amounts | $ 0 | $ 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Balances and Levels of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Available-for-sale securities: | $ 1,471,973 | $ 1,471,186 |
Equity securities, at fair value | 0 | 2,990 |
Derivatives | 34,738 | 48,769 |
Financial liabilities: | ||
Derivatives | 38,215 | 63,229 |
Mortgage-backed securities - residential | ||
Financial assets: | ||
Available-for-sale securities: | 896,971 | 1,034,193 |
Mortgage-backed securities - commercial | ||
Financial assets: | ||
Available-for-sale securities: | 16,961 | 17,644 |
Municipal securities | ||
Financial assets: | ||
Available-for-sale securities: | 242,263 | 264,420 |
U.S. Treasury securities | ||
Financial assets: | ||
Available-for-sale securities: | 108,496 | 107,680 |
Corporate securities | ||
Financial assets: | ||
Available-for-sale securities: | 3,326 | 7,187 |
Recurring Basis | ||
Financial assets: | ||
Equity securities, at fair value | 2,990 | |
Total securities | 1,471,973 | 1,474,176 |
Loans held for sale, at fair value | 46,618 | 113,240 |
Mortgage servicing rights | 164,249 | 168,365 |
Derivatives | 34,738 | 48,769 |
Financial liabilities: | ||
Derivatives | 38,215 | 63,229 |
Recurring Basis | U.S. government agency securities | ||
Financial assets: | ||
Available-for-sale securities: | 203,956 | 40,062 |
Recurring Basis | Mortgage-backed securities - residential | ||
Financial assets: | ||
Available-for-sale securities: | 896,971 | 1,034,193 |
Recurring Basis | Mortgage-backed securities - commercial | ||
Financial assets: | ||
Available-for-sale securities: | 16,961 | 17,644 |
Recurring Basis | Municipal securities | ||
Financial assets: | ||
Available-for-sale securities: | 242,263 | 264,420 |
Recurring Basis | U.S. Treasury securities | ||
Financial assets: | ||
Available-for-sale securities: | 108,496 | 107,680 |
Recurring Basis | Corporate securities | ||
Financial assets: | ||
Available-for-sale securities: | 3,326 | 7,187 |
Recurring Basis | Quoted prices in active markets for identical assets (liabilities) (level 1) | ||
Financial assets: | ||
Equity securities, at fair value | 0 | |
Total securities | 0 | 0 |
Loans held for sale, at fair value | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Recurring Basis | Quoted prices in active markets for identical assets (liabilities) (level 1) | U.S. government agency securities | ||
Financial assets: | ||
Available-for-sale securities: | 0 | 0 |
Recurring Basis | Quoted prices in active markets for identical assets (liabilities) (level 1) | Mortgage-backed securities - residential | ||
Financial assets: | ||
Available-for-sale securities: | 0 | 0 |
Recurring Basis | Quoted prices in active markets for identical assets (liabilities) (level 1) | Mortgage-backed securities - commercial | ||
Financial assets: | ||
Available-for-sale securities: | 0 | 0 |
Recurring Basis | Quoted prices in active markets for identical assets (liabilities) (level 1) | Municipal securities | ||
Financial assets: | ||
Available-for-sale securities: | 0 | 0 |
Recurring Basis | Quoted prices in active markets for identical assets (liabilities) (level 1) | U.S. Treasury securities | ||
Financial assets: | ||
Available-for-sale securities: | 0 | 0 |
Recurring Basis | Quoted prices in active markets for identical assets (liabilities) (level 1) | Corporate securities | ||
Financial assets: | ||
Available-for-sale securities: | 0 | 0 |
Recurring Basis | Significant other observable inputs (level 2) | ||
Financial assets: | ||
Equity securities, at fair value | 2,990 | |
Total securities | 1,471,973 | 1,474,176 |
Loans held for sale, at fair value | 46,618 | 82,750 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 34,738 | 48,769 |
Financial liabilities: | ||
Derivatives | 38,215 | 63,229 |
Recurring Basis | Significant other observable inputs (level 2) | U.S. government agency securities | ||
Financial assets: | ||
Available-for-sale securities: | 203,956 | 40,062 |
Recurring Basis | Significant other observable inputs (level 2) | Mortgage-backed securities - residential | ||
Financial assets: | ||
Available-for-sale securities: | 896,971 | 1,034,193 |
Recurring Basis | Significant other observable inputs (level 2) | Mortgage-backed securities - commercial | ||
Financial assets: | ||
Available-for-sale securities: | 16,961 | 17,644 |
Recurring Basis | Significant other observable inputs (level 2) | Municipal securities | ||
Financial assets: | ||
Available-for-sale securities: | 242,263 | 264,420 |
Recurring Basis | Significant other observable inputs (level 2) | U.S. Treasury securities | ||
Financial assets: | ||
Available-for-sale securities: | 108,496 | 107,680 |
Recurring Basis | Significant other observable inputs (level 2) | Corporate securities | ||
Financial assets: | ||
Available-for-sale securities: | 3,326 | 7,187 |
Recurring Basis | Significant unobservable inputs (level 3) | ||
Financial assets: | ||
Equity securities, at fair value | 0 | |
Total securities | 0 | 0 |
Loans held for sale, at fair value | 0 | 30,490 |
Mortgage servicing rights | 164,249 | 168,365 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Recurring Basis | Significant unobservable inputs (level 3) | U.S. government agency securities | ||
Financial assets: | ||
Available-for-sale securities: | 0 | 0 |
Recurring Basis | Significant unobservable inputs (level 3) | Mortgage-backed securities - residential | ||
Financial assets: | ||
Available-for-sale securities: | 0 | 0 |
Recurring Basis | Significant unobservable inputs (level 3) | Mortgage-backed securities - commercial | ||
Financial assets: | ||
Available-for-sale securities: | 0 | 0 |
Recurring Basis | Significant unobservable inputs (level 3) | Municipal securities | ||
Financial assets: | ||
Available-for-sale securities: | 0 | 0 |
Recurring Basis | Significant unobservable inputs (level 3) | U.S. Treasury securities | ||
Financial assets: | ||
Available-for-sale securities: | 0 | 0 |
Recurring Basis | Significant unobservable inputs (level 3) | Corporate securities | ||
Financial assets: | ||
Available-for-sale securities: | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Schedule of Balances and Levels of Assets Measured at Fair Value on Non-recurring Basis (Details) - Non-recurring Basis - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Other real estate owned | $ 2,400 | $ 2,497 |
Financing receivable, collateral dependent loans, recorded investment | 13,041 | 2,860 |
Commercial and industrial | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 12,338 | |
Construction | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 203 | |
Residential real estate: | 1-to-4 family mortgage | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 429 | 366 |
Commercial real estate: | Non-owner occupied | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 2,494 | |
Consumer and other | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 71 | |
Quoted prices in active markets for identical assets (liabilities) (level 1) | ||
Financial assets: | ||
Other real estate owned | 0 | 0 |
Financing receivable, collateral dependent loans, recorded investment | 0 | 0 |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Commercial and industrial | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 0 | |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Construction | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 0 | |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Residential real estate: | 1-to-4 family mortgage | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 0 | 0 |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Commercial real estate: | Non-owner occupied | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 0 | |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Consumer and other | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 0 | |
Significant other observable inputs (level 2) | ||
Financial assets: | ||
Other real estate owned | 0 | 0 |
Financing receivable, collateral dependent loans, recorded investment | 0 | 0 |
Significant other observable inputs (level 2) | Commercial and industrial | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 0 | |
Significant other observable inputs (level 2) | Construction | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 0 | |
Significant other observable inputs (level 2) | Residential real estate: | 1-to-4 family mortgage | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 0 | 0 |
Significant other observable inputs (level 2) | Commercial real estate: | Non-owner occupied | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 0 | |
Significant other observable inputs (level 2) | Consumer and other | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 0 | |
Significant unobservable inputs (level 3) | ||
Financial assets: | ||
Other real estate owned | 2,400 | 2,497 |
Financing receivable, collateral dependent loans, recorded investment | 13,041 | 2,860 |
Significant unobservable inputs (level 3) | Commercial and industrial | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 12,338 | |
Significant unobservable inputs (level 3) | Construction | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 203 | |
Significant unobservable inputs (level 3) | Residential real estate: | 1-to-4 family mortgage | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | 429 | 366 |
Significant unobservable inputs (level 3) | Commercial real estate: | Non-owner occupied | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | $ 2,494 | |
Significant unobservable inputs (level 3) | Consumer and other | ||
Financial assets: | ||
Financing receivable, collateral dependent loans, recorded investment | $ 71 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Schedule of Changes in Fair Value Associated with Commercial Loans Held for Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in fair value: | |||
Fair Value Recurring Basis Unobservable Input Reconciliation Asset Gain Loss Statement Of Income Extensible List Not Disclosed Flag | Changes in valuation included in other noninterest income | ||
Franklin Financial Network, Inc. | Commercial and industrial | Aggregate Unpaid Principal Balance | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Carrying value at beginning of period | $ 34,357 | $ 86,762 | $ 239,063 |
Change in fair value: | |||
Pay-downs and pay-offs | (28,376) | (43,676) | (141,002) |
Write-offs to discount | (5,981) | (8,729) | (8,563) |
Changes in valuation included in other noninterest income | 0 | 0 | (2,736) |
Carrying value at end of period | 0 | 34,357 | 86,762 |
Franklin Financial Network, Inc. | Commercial and industrial | Fair Value Discount | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Carrying value at beginning of period | (3,867) | (7,463) | (23,660) |
Change in fair value: | |||
Pay-downs and pay-offs | 0 | 0 | 0 |
Write-offs to discount | 5,981 | 8,729 | 8,563 |
Changes in valuation included in other noninterest income | (2,114) | (5,133) | 7,634 |
Carrying value at end of period | 0 | (3,867) | (7,463) |
Franklin Financial Network, Inc. | Commercial and industrial | Fair Value | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Carrying value at beginning of period | 30,490 | 79,299 | 215,403 |
Change in fair value: | |||
Pay-downs and pay-offs | (28,376) | (43,676) | (141,002) |
Write-offs to discount | 0 | 0 | 0 |
Changes in valuation included in other noninterest income | (2,114) | (5,133) | 4,898 |
Carrying value at end of period | $ 0 | $ 30,490 | $ 79,299 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Mortgage Loans | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Net (losses) gains from fair value changes of mortgage loans held for sale recorded in income | $ (121) | $ (13,677) | $ (16,976) |
Loans HFS and derivatives | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Net (losses) gains from fair value changes of mortgage loans held for sale recorded in income | (1,815) | (17,633) | (33,284) |
Level 3 | Non-recurring Basis | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Amortized costs of collateral dependent loans | 18,166 | 3,054 | |
Franklin Financial Network, Inc. | Fair Value | Commercial and industrial | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Gain recognized on the change in fair value of portfolio | $ (2,114) | $ (5,133) | 4,898 |
Franklin Financial Network, Inc. | Fair Value | Commercial and industrial | Partially charged off | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Gain recognized on the change in fair value of portfolio | $ 6,274 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Schedule of Information about Significant Unobservable Inputs (Level 3) Used in Valuation of Assets Measured at Fair Value on Nonrecurring Basis (Details) - Non-recurring Basis $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, collateral dependent loans, recorded investment | $ 13,041 | $ 2,860 |
Other real estate owned | 2,400 | 2,497 |
Significant unobservable inputs (level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financing receivable, collateral dependent loans, recorded investment | 13,041 | 2,860 |
Other real estate owned | $ 2,400 | $ 2,497 |
Significant unobservable inputs (level 3) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent loans, measurement input | 0.10 | 0.10 |
Other real estate owned, measurement input | 0 | 0 |
Significant unobservable inputs (level 3) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent loans, measurement input | 0.61 | 0.35 |
Other real estate owned, measurement input | 0.15 | 0.15 |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments - Schedule of Loans Held for Sale at Fair Value (Details) - Recurring Basis - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial loans held for sale | $ 46,618 | $ 113,240 |
Total loans held for sale | 67,847 | 139,451 |
Fair Value Option | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total loans held for sale | 46,618 | 113,240 |
Other | Fair Value Option | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale | 46,618 | 82,750 |
GNMA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale | 21,229 | 26,211 |
Commercial loans held for sale measured at fair value | Fair Value Option | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial loans held for sale | $ 0 | $ 30,490 |
Fair Value of Financial Instr_9
Fair Value of Financial Instruments - Schedule of Differences Between Fair Value and Principal Balance for Loans Held for Sale Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Aggregate Unpaid Principal Balance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | $ 45,509 | $ 81,520 |
Nonaccrual commercial loans held for sale | 12,231 | |
Aggregate Unpaid Principal Balance | Commercial loans held for sale measured at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | 22,126 | |
Difference | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | 1,109 | 1,230 |
Nonaccrual commercial loans held for sale | (2,942) | |
Difference | Commercial loans held for sale measured at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | (925) | |
Aggregate fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | $ 46,618 | 82,750 |
Nonaccrual commercial loans held for sale | 9,289 | |
Aggregate fair value | Commercial loans held for sale measured at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | $ 21,201 |
Fair Value of Financial Inst_10
Fair Value of Financial Instruments - Schedule of Estimated Fair Values and Carrying Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Net loans held for investment | $ 9,258,457 | $ 9,164,020 |
Interest receivable | 52,715 | 45,684 |
Derivatives | 34,738 | 48,769 |
Financial liabilities: | ||
Derivatives | 38,215 | 63,229 |
Carrying amount | ||
Financial assets: | ||
Cash and cash equivalents | 810,932 | 1,027,052 |
Investment securities | 1,471,973 | 1,474,176 |
Net loans held for investment | 9,258,457 | 9,164,020 |
Loans held for sale, at fair value | 46,618 | 113,240 |
Interest receivable | 52,715 | 45,684 |
Mortgage servicing rights | 164,249 | 168,365 |
Derivatives | 34,738 | 48,769 |
Financial liabilities: | ||
Without stated maturities | 8,927,654 | 9,433,860 |
With stated maturities | 1,620,633 | 1,421,974 |
Securities sold under agreements to repurchase and federal funds purchased | 108,764 | 86,945 |
Bank Term Funding Program | 130,000 | |
Federal Home Loan Bank advances | 175,000 | |
Subordinated debt, net | 129,645 | 126,101 |
Interest payable | 18,809 | 8,648 |
Derivatives | 38,215 | 63,229 |
Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 810,932 | 1,027,052 |
Investment securities | 1,471,973 | 1,474,176 |
Net loans held for investment | 9,068,518 | 9,048,943 |
Loans held for sale, at fair value | 46,618 | 113,240 |
Interest receivable | 52,715 | 45,684 |
Mortgage servicing rights | 164,249 | 168,365 |
Derivatives | 34,738 | 48,769 |
Financial liabilities: | ||
Without stated maturities | 8,927,654 | 9,433,860 |
With stated maturities | 1,614,400 | 1,422,544 |
Securities sold under agreements to repurchase and federal funds purchased | 108,764 | 86,945 |
Bank Term Funding Program | 130,000 | |
Federal Home Loan Bank advances | 175,000 | |
Subordinated debt, net | 122,671 | 118,817 |
Interest payable | 18,809 | 8,648 |
Derivatives | 38,215 | 63,229 |
Fair Value | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 810,932 | 1,027,052 |
Investment securities | 0 | 0 |
Net loans held for investment | 0 | 0 |
Loans held for sale, at fair value | 0 | 0 |
Interest receivable | 388 | 126 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Without stated maturities | 8,927,654 | 9,433,860 |
With stated maturities | 0 | 0 |
Securities sold under agreements to repurchase and federal funds purchased | 108,764 | 86,945 |
Bank Term Funding Program | 0 | |
Federal Home Loan Bank advances | 0 | |
Subordinated debt, net | 0 | 0 |
Interest payable | 4,104 | 2,571 |
Derivatives | 0 | 0 |
Fair Value | Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities | 1,471,973 | 1,474,176 |
Net loans held for investment | 0 | 0 |
Loans held for sale, at fair value | 46,618 | 82,750 |
Interest receivable | 8,551 | 6,961 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 34,738 | 48,769 |
Financial liabilities: | ||
Without stated maturities | 0 | 0 |
With stated maturities | 1,614,400 | 1,422,544 |
Securities sold under agreements to repurchase and federal funds purchased | 0 | 0 |
Bank Term Funding Program | 130,000 | |
Federal Home Loan Bank advances | 175,000 | |
Subordinated debt, net | 0 | 0 |
Interest payable | 13,205 | 4,559 |
Derivatives | 38,215 | 63,229 |
Fair Value | Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities | 0 | 0 |
Net loans held for investment | 9,068,518 | 9,048,943 |
Loans held for sale, at fair value | 0 | 30,490 |
Interest receivable | 43,776 | 38,597 |
Mortgage servicing rights | 164,249 | 168,365 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Without stated maturities | 0 | 0 |
With stated maturities | 0 | 0 |
Securities sold under agreements to repurchase and federal funds purchased | 0 | 0 |
Bank Term Funding Program | 0 | |
Federal Home Loan Bank advances | 0 | |
Subordinated debt, net | 122,671 | 118,817 |
Interest payable | 1,500 | 1,518 |
Derivatives | $ 0 | $ 0 |
Parent Company Financial Stat_3
Parent Company Financial Statements - Schedule of Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | |||
Cash and cash equivalents | $ 810,932 | $ 1,027,052 | |
Other assets | 203,409 | 227,956 | |
Goodwill | 242,561 | 242,561 | $ 242,561 |
Total assets | 12,604,403 | 12,847,756 | $ 12,597,686 |
LIABILITIES | |||
Borrowings | 390,964 | 415,677 | |
Accrued expenses and other liabilities | 142,622 | 180,973 | |
Total liabilities | 11,149,516 | 11,522,238 | |
SHAREHOLDERS' EQUITY | |||
Common stock | 46,849 | 46,738 | |
Additional paid-in capital | 864,258 | 861,588 | |
Retained earnings | 678,412 | 586,532 | |
Accumulated other comprehensive loss | (134,725) | (169,433) | |
Total FB Financial Corporation common shareholders' equity | 1,454,794 | 1,325,425 | |
Total liabilities and shareholders' equity | 12,604,403 | 12,847,756 | |
Parent Company | |||
ASSETS | |||
Cash and cash equivalents | 21,448 | 3,052 | |
Investments in subsidiaries | 1,449,439 | 1,337,657 | |
Other assets | 15,291 | 16,654 | |
Goodwill | 29 | 29 | |
Total assets | 1,486,207 | 1,357,392 | |
LIABILITIES | |||
Borrowings | 30,930 | 30,930 | |
Accrued expenses and other liabilities | 483 | 1,037 | |
Total liabilities | 31,413 | 31,967 | |
SHAREHOLDERS' EQUITY | |||
Common stock | 46,849 | 46,738 | |
Additional paid-in capital | 864,258 | 861,588 | |
Retained earnings | 678,412 | 586,532 | |
Accumulated other comprehensive loss | (134,725) | (169,433) | |
Total FB Financial Corporation common shareholders' equity | 1,454,794 | 1,325,425 | |
Total liabilities and shareholders' equity | $ 1,486,207 | $ 1,357,392 |
Parent Company Financial Stat_4
Parent Company Financial Statements - Schedule of Income Statements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income | |||
Dividend income from bank subsidiaries | $ 44,805 | $ 12,258 | $ 2,893 |
Net interest income | 407,217 | 412,235 | 347,370 |
Expenses | |||
Interest expense | 271,193 | 69,187 | 37,628 |
Other noninterest expense | 310,090 | 335,744 | 359,678 |
Net income applicable to FB Financial Corporation | 120,224 | 124,555 | 190,285 |
Parent Company | |||
Income | |||
Dividend income from bank subsidiaries | 49,000 | 49,000 | 122,500 |
Dividend income from nonbank subsidiaries | 530 | 0 | 2,525 |
Loss on investments | 0 | 0 | 249 |
Other income | 57 | 89 | 15 |
Net interest income | 49,587 | 49,089 | 125,289 |
Expenses | |||
Interest expense | 1,590 | 1,587 | 2,455 |
Salaries, legal and professional fees | 1,461 | 1,590 | 1,445 |
Other noninterest expense | 478 | 771 | 1,812 |
Total expenses | 3,529 | 3,948 | 5,712 |
Income before income tax benefit and equity in undistributed earnings of subsidiaries | 46,058 | 45,141 | 119,577 |
Federal and state income tax benefit | (887) | (1,002) | (2,992) |
Income before equity in undistributed earnings of subsidiaries | 46,945 | 46,143 | 122,569 |
Equity in undistributed earnings from bank subsidiaries | 73,832 | 76,232 | 68,351 |
Equity in undistributed earnings from nonbank subsidiaries | (553) | 2,180 | (635) |
Net income applicable to FB Financial Corporation | $ 120,224 | $ 124,555 | $ 190,285 |
Parent Company Financial Stat_5
Parent Company Financial Statements - Schedule of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Activities | |||
Net income | $ 120,224 | $ 124,555 | $ 190,285 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Stock-based compensation expense | 10,381 | 9,857 | 10,282 |
Net cash provided by operating activities | 211,072 | 789,713 | 54,895 |
Investing Activities | |||
Net cash used in investing activities | (55,215) | (1,744,118) | (849,558) |
Financing Activities | |||
Payments on subordinated debt | 0 | 0 | (60,000) |
Share based compensation withholding payments | (3,379) | (2,842) | (10,158) |
Net proceeds from sale of common stock under employee stock purchase program | 723 | 1,212 | 1,480 |
Repurchase of common stock | (4,944) | (39,979) | (7,595) |
Dividends paid on common stock | (28,057) | (24,503) | (20,866) |
Dividend equivalent payments made upon vesting of equity compensation | (226) | (168) | (717) |
Net cash (used in) provided by financing activities | (371,977) | 183,717 | 1,274,505 |
Net change in cash and cash equivalents | (216,120) | (770,688) | 479,842 |
Cash and cash equivalents at beginning of the period | 1,027,052 | 1,797,740 | 1,317,898 |
Cash and cash equivalents at end of the period | 810,932 | 1,027,052 | 1,797,740 |
Supplemental cash flow information: | |||
Dividends declared not paid on restricted stock units | 287 | 222 | 400 |
Parent Company | |||
Operating Activities | |||
Net income | 120,224 | 124,555 | 190,285 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in undistributed income of bank subsidiary | (73,832) | (76,232) | (68,351) |
Equity in undistributed income of nonbank subsidiary | 553 | (2,180) | 635 |
Accretion of subordinated debt fair value premium | 0 | 0 | (369) |
Gain on investments | 0 | 0 | (249) |
Stock-based compensation expense | 10,381 | 9,857 | 10,282 |
Decrease (increase) in other assets | 1,017 | (802) | (3,916) |
Decrease in other liabilities | (4,064) | (7,381) | (678) |
Net cash provided by operating activities | 54,279 | 47,817 | 127,639 |
Investing Activities | |||
Proceeds from sale of equity securities | 0 | 0 | 1,422 |
Net cash used in investing activities | 0 | 0 | 1,422 |
Financing Activities | |||
Payments on subordinated debt | 0 | 0 | (60,000) |
Payments on other borrowings | 0 | 0 | (15,000) |
Share based compensation withholding payments | (3,379) | (2,842) | (10,158) |
Net proceeds from sale of common stock under employee stock purchase program | 723 | 1,212 | 1,480 |
Repurchase of common stock | (4,944) | (39,979) | (7,595) |
Dividends paid on common stock | (28,057) | (24,503) | (20,866) |
Dividend equivalent payments made upon vesting of equity compensation | (226) | (168) | (717) |
Net cash (used in) provided by financing activities | (35,883) | (66,280) | (112,856) |
Net change in cash and cash equivalents | 18,396 | (18,463) | 16,205 |
Cash and cash equivalents at beginning of the period | 3,052 | 21,515 | 5,310 |
Cash and cash equivalents at end of the period | 21,448 | 3,052 | 21,515 |
Supplemental cash flow information: | |||
Dividends declared not paid on restricted stock units | 287 | 222 | 400 |
Noncash security distribution to bank subsidiary | $ 0 | $ 0 | $ 2,646 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Net interest income | $ 407,217 | $ 412,235 | $ 347,370 |
Provisions for credit losses | 2,539 | 18,982 | (40,993) |
Mortgage banking income | 60,918 | 83,679 | 179,682 |
Change in fair value of mortgage servicing rights, net of hedging | (16,226) | (10,099) | (12,117) |
Other noninterest income | 25,851 | 41,087 | 60,690 |
Depreciation and amortization | 11,180 | 8,017 | 8,416 |
Amortization of intangibles | 3,659 | 4,585 | 5,473 |
Other noninterest expense | 310,090 | 335,744 | 359,678 |
Income before income taxes | 150,292 | 159,574 | 243,051 |
Income tax expense | 30,052 | 35,003 | 52,750 |
Net income attributable to FB Financial Corporation and noncontrolling interest | 120,240 | 124,571 | 190,301 |
Net income applicable to noncontrolling interest | 16 | 16 | 16 |
Net income applicable to FB Financial Corporation | 120,224 | 124,555 | 190,285 |
Total assets | 12,604,403 | 12,847,756 | 12,597,686 |
Goodwill | 242,561 | 242,561 | 242,561 |
Mortgage restructuring expense | 0 | 12,458 | 0 |
Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 407,217 | 412,237 | 347,342 |
Provisions for credit losses | 2,539 | 18,982 | (40,993) |
Mortgage banking income | 0 | 0 | 0 |
Change in fair value of mortgage servicing rights, net of hedging | 0 | 0 | 0 |
Other noninterest income | 25,831 | 41,320 | 61,073 |
Depreciation and amortization | 10,444 | 7,035 | 7,054 |
Amortization of intangibles | 3,659 | 4,585 | 5,473 |
Other noninterest expense | 262,433 | 240,096 | 220,283 |
Income before income taxes | 153,973 | 182,859 | 216,598 |
Total assets | 12,046,190 | 12,228,451 | 11,540,560 |
Goodwill | 242,561 | 242,561 | 242,561 |
Mortgage | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 0 | (2) | 28 |
Provisions for credit losses | 0 | 0 | 0 |
Mortgage banking income | 60,918 | 83,679 | 179,682 |
Change in fair value of mortgage servicing rights, net of hedging | (16,226) | (10,099) | (12,117) |
Other noninterest income | 20 | (233) | (383) |
Depreciation and amortization | 736 | 982 | 1,362 |
Amortization of intangibles | 0 | 0 | 0 |
Other noninterest expense | 47,657 | 95,648 | 139,395 |
Income before income taxes | (3,681) | (23,285) | 26,453 |
Total assets | 558,213 | 619,305 | 1,057,126 |
Goodwill | $ 0 | $ 0 | $ 0 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Mortgage restructuring expense | $ 0 | $ 12,458 | $ 0 |
Mortgage | |||
Segment Reporting Information [Line Items] | |||
Interest paid | $ 16,170 | $ 18,906 | $ 23,910 |
Minimum Capital Requirements -
Minimum Capital Requirements - Schedule of Actual and Required Capital Amounts and Ratios (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
FB Financial Corporation | ||
Total Capital (to risk-weighted assets) | ||
Actual, amount | $ 1,635,848 | $ 1,528,344 |
Actual, Ratio | 0.145 | 0.131 |
Minimum capital adequacy with capital buffer, amount | $ 1,182,028 | $ 1,225,161 |
Minimum capital adequacy with capital buffer, ratio | 0.105 | 0.105 |
Tier 1 Capital (to risk-weighted assets) | ||
Actual, amount | $ 1,405,890 | $ 1,315,386 |
Actual, ratio | 0.125 | 0.113 |
Minimum capital adequacy with capital buffer, amount | $ 956,880 | $ 991,797 |
Minimum capital adequacy with capital buffer, ratio | 8.50% | 8.50% |
Tier 1 Capital (to average assets) | ||
Actual, amount | $ 1,405,890 | $ 1,315,386 |
Actual, Ratio | 0.113 | 0.105 |
Minimum capital adequacy with capital buffer, amount | $ 496,485 | $ 499,648 |
Minimum capital adequacy with capital buffer. ratio | 0.040 | 0.040 |
Common Equity Tier 1 Capital (to risk-weighted assets) | ||
Actual, amount | $ 1,375,890 | $ 1,285,386 |
Actual ratio | 12.20% | 11% |
Minimum capital adequacy with capital buffer, amount | $ 788,018 | $ 816,774 |
Minimum capital adequacy with capital buffer, ratio | 0.070 | 0.070 |
FirstBank | ||
Total Capital (to risk-weighted assets) | ||
Actual, amount | $ 1,600,950 | $ 1,506,543 |
Actual, Ratio | 0.142 | 0.129 |
Minimum capital adequacy with capital buffer, amount | $ 1,179,886 | $ 1,222,922 |
Minimum capital adequacy with capital buffer, ratio | 0.105 | 0.105 |
To be well capitalized under prompt corrective action provisions, Amount | $ 1,123,701 | $ 1,164,688 |
To be well capitalized under prompt corrective action provisions, Ratio | 0.100 | 0.100 |
Tier 1 Capital (to risk-weighted assets) | ||
Actual, amount | $ 1,370,991 | $ 1,293,585 |
Actual, ratio | 0.122 | 0.111 |
Minimum capital adequacy with capital buffer, amount | $ 955,145 | $ 989,985 |
Minimum capital adequacy with capital buffer, ratio | 8.50% | 8.50% |
To be well capitalized under prompt corrective action provisions, Amount | $ 898,960 | $ 931,750 |
To be well capitalized under prompt corrective action provisions, ratio | 0.080 | 0.080 |
Tier 1 Capital (to average assets) | ||
Actual, amount | $ 1,370,991 | $ 1,293,585 |
Actual, Ratio | 0.111 | 0.104 |
Minimum capital adequacy with capital buffer, amount | $ 495,761 | $ 499,194 |
Minimum capital adequacy with capital buffer. ratio | 0.040 | 0.040 |
To be well capitalized under prompt corrective action provisions, amount | $ 619,701 | $ 623,992 |
To be well capitalized under prompt corrective action provisions, ratio | 0.050 | 0.050 |
Common Equity Tier 1 Capital (to risk-weighted assets) | ||
Actual, amount | $ 1,370,991 | $ 1,293,585 |
Actual ratio | 12.20% | 11.10% |
Minimum capital adequacy with capital buffer, amount | $ 786,590 | $ 815,281 |
Minimum capital adequacy with capital buffer, ratio | 0.070 | 0.070 |
To be well capitalized under prompt corrective action provisions, amount | $ 730,405 | $ 757,047 |
To be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Discretionary contribution percentage | 50% | ||
Maximum percentage of amount to be contributed by the employer | 6% | ||
Matching and profit sharing vesting period | 3 years | ||
Contribution provided by the bank to the plan | $ 3,450 | $ 3,686 | $ 3,923 |
Post retirement benefits payable | 2,152 | 2,424 | |
Cash surrender value of bank owned life insurance | 76,143 | 75,329 | |
Cash value income | $ 1,871 | $ 1,452 | $ 1,542 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Changes in Restricted Stock Units (Details) - RSUs | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Restricted Stock Units Outstanding | |
Balance at beginning of period (in shares) | shares | 365,155,000 |
Granted (in shares) | shares | 180,631,000 |
Vested (in shares) | shares | (212,251,000) |
Forfeited (in shares) | shares | (10,015,000) |
Balance at end of period (in shares) | shares | 323,520,000 |
Weighted Average Grant Date Fair Value | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 39.02 |
Granted (in dollars per share) | $ / shares | 35.33 |
Vested (in dollars per share) | $ / shares | 38.11 |
Forfeited (in dollars per share) | $ / shares | 40 |
Balance at end of period (in dollars per share) | $ / shares | $ 37.52 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost related to nonvested awards | $ 10,381 | $ 9,857 | $ 10,282 |
Dividends declared not paid on restricted stock units | 287 | 222 | 400 |
Proceeds from employee payroll withholdings | 686 | 1,087 | 1,190 |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock units vested and released | 8,089 | 8,018 | 16,340 |
Compensation cost related to nonvested awards | 7,438 | 7,372 | 8,907 |
Unrecognized compensation cost related to nonvested awards | $ 7,736 | ||
Expected weighted-average period to be recognized | 1 year 11 months 8 days | ||
Dividends declared not paid on restricted stock units | $ 353 | 292 | |
RSUs | 2016-LTIP Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuable (in shares) | 1,497,096 | ||
RSUs | Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost related to nonvested awards | $ 834 | 663 | 635 |
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost related to nonvested awards | 2,943 | $ 2,485 | $ 1,375 |
Unrecognized compensation cost related to nonvested awards | $ 10,864 | ||
Expected weighted-average period to be recognized | 1 year 9 months 25 days | ||
Criteria period | 3 years | ||
Maximum unrecognized compensation cost, payout percentage | 200% | ||
PSUs | Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting, percentage | 0% | ||
PSUs | Tranche Four | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting, percentage | 200% | ||
PSUs | Tranche Three | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting, percentage | 100% | ||
PSUs | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting, percentage | 0% | ||
PSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting, percentage | 200% | ||
Employee Stock | ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuable (in shares) | 200,000 | ||
Purchase price percentage of subsequent offering periods | 95% | ||
Maximum number of shares per participant (in shares) | 725 | ||
Shares issued under plan (in shares) | 20,520 | 26,950 | 37,310 |
Number of shares reserved for issuance (in shares) | 2,294,226 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Changes in Performance Stock Units (Details) - PSUs | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Performance Stock Units Outstanding | |
Balance at beginning of period (in shares) | shares | 161,667 |
Granted (in shares) | shares | 86,010 |
Performance adjustment (in shares) | shares | 51,444 |
Vested (in shares) | shares | (104,833) |
Forfeited or expired (in shares) | shares | (18,125) |
Balance at end of period (in shares) | shares | 176,163 |
Weighted Average Grant Date Fair Value | |
Balance at beginning of period (in dollars per share) | $ 41.73 |
Granted (in dollars per share) | 37.17 |
Performance adjustment (in dollars per share) | 36.93 |
Vested (in dollars per share) | 36.93 |
Forfeited (in dollars per share) | 43.58 |
Balance at end of period (in dollars per share) | $ 40.86 |
Criteria period | 3 years |
Minimum | |
Weighted Average Grant Date Fair Value | |
Award vesting, percentage | 0% |
Maximum | |
Weighted Average Grant Date Fair Value | |
Award vesting, percentage | 200% |
Tranche Three | |
Weighted Average Grant Date Fair Value | |
Granted (in dollars per share) | $ 37.17 |
Award vesting, percentage | 100% |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Share-Based Payment Arrangement, Performance Shares, Activity (Details) - PSUs | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in dollars per share) | $ 37.17 |
Criteria period | 3 years |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting, percentage | 0% |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting, percentage | 200% |
Tranche One | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in dollars per share) | $ 43.20 |
PSUs outstanding (in shares) | shares | 47,387 |
Award vesting, percentage | 0% |
Tranche Two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in dollars per share) | $ 44.44 |
PSUs outstanding (in shares) | shares | 50,117 |
Tranche Three | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in dollars per share) | $ 37.17 |
PSUs outstanding (in shares) | shares | 78,659 |
Award vesting, percentage | 100% |
Tranche Four | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting, percentage | 200% |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Loans Analysis to Executive Officers, Certain Management, Bank Directors and Related Interests (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Financing Receivable, Related Parties [Roll Forward] | |
Loans outstanding at January 1, 2023 | $ 82,559 |
New loans and advances | 10,047 |
Change in related party status | (37,897) |
Repayments | (5,636) |
Loans outstanding at December 31, 2023 | $ 49,073 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Deposits from related parties | $ 316,141 | $ 347,660 | |
Other income | 6,095 | 5,213 | $ 19,047 |
Master loan purchase agreement, maximum amount | 250 | ||
Amortized cost | $ 1,658,779 | 1,705,574 | |
Manufactured loan housing securities | |||
Related Party Transaction [Line Items] | |||
Loan purchase agreement, term | 5 years | ||
Loans purchased | $ 33,164 | 0 | |
Amortized cost | 32,154 | ||
Purchase agreements | 0 | ||
Preferred Stock | |||
Related Party Transaction [Line Items] | |||
Equity security without readily determinable market value | 10,000 | 10,000 | |
Directors | |||
Related Party Transaction [Line Items] | |||
Operating lease expense | 385 | 396 | 497 |
Directors | FBK Aviation, LLC | Aviation Time Sharing Agreements | |||
Related Party Transaction [Line Items] | |||
Other income | 28 | 52 | $ 21 |
Unfunded Loan Commitment | Certain Executive Officers, Certain Management and Directors and Their Associates | |||
Related Party Transaction [Line Items] | |||
Unfunded commitments | $ 44,206 | $ 31,564 |