Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 09, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 333-258176 | |
Entity Registrant Name | FIRSTSUN CAPITAL BANCORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-4552413 | |
Entity Address, Address Line One | 1400 16th Street | |
Entity Address, Address Line Two | Suite 250 | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80202 | |
City Area Code | 303 | |
Local Phone Number | 831-6704 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 24,906,032 | |
Entity Central Index Key | 0001709442 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 325,039 | $ 668,462 |
Securities available-for-sale | 551,165 | 572,501 |
Securities held-to-maturity, fair value of $34,096 and $18,599, respectively | 39,148 | 18,007 |
Loans held-for-sale, at fair value | 67,535 | 103,939 |
Loans, net of allowance for loan losses of $59,678 and $47,547, respectively | 5,497,008 | 3,989,576 |
Mortgage servicing rights, at fair value | 73,850 | 47,392 |
Premises and equipment, net | 88,490 | 53,147 |
Other real estate owned and foreclosed assets, net | 5,391 | 5,487 |
Bank-owned life insurance | 77,462 | 54,858 |
Restricted equity securities | 34,877 | 16,239 |
Goodwill | 93,483 | 33,050 |
Core deposits and other intangible assets, net | 17,825 | 8,250 |
Accrued interest receivable | 24,964 | 14,761 |
Deferred tax assets, net | 56,605 | 23,030 |
Prepaid expenses and other assets | 100,075 | 58,115 |
Total assets | 7,052,917 | 5,666,814 |
Deposits: | ||
Noninterest-bearing accounts | 1,946,215 | 1,566,113 |
Interest-bearing accounts | 3,814,203 | 3,288,835 |
Total deposits | 5,760,418 | 4,854,948 |
Securities sold under agreements to repurchase | 51,256 | 92,093 |
Federal Home Loan Bank advances | 310,872 | 40,000 |
Convertible notes payable, net | 5,317 | 19,442 |
Subordinated debt, net | 74,780 | 50,016 |
Accrued interest payable | 3,073 | 2,369 |
Accrued expenses and other liabilities | 96,548 | 83,908 |
Total liabilities | 6,302,264 | 5,142,776 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, none issued or outstanding, respectively | 0 | 0 |
Common stock, $0.0001 par value; 50,000,000 shares authorized; 24,906,032 and 19,903,342 shares issued; 24,906,032 and 18,346,288 shares outstanding, respectively | 2 | 2 |
Additional paid-in capital | 460,530 | 261,905 |
Treasury stock, — and 1,557,054 shares, respectively | 0 | (38,148) |
Retained earnings | 333,227 | 298,615 |
Accumulated other comprehensive (loss) income, net | (43,106) | 1,664 |
Total stockholders’ equity | 750,653 | 524,038 |
Total liabilities and stockholders’ equity | $ 7,052,917 | $ 5,666,814 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Securities held-to-maturity, fair value | $ 34,096 | $ 18,599 |
Loans, allowance for loan losses | $ 59,678 | $ 47,547 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 24,906,032 | 19,903,342 |
Common stock, shares outstanding (in shares) | 24,906,032 | 18,346,288 |
Treasury stock shares (in shares) | 0 | 1,557,054 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Interest and fee income on loans: | ||||
Taxable | $ 63,626 | $ 37,225 | $ 154,266 | $ 102,068 |
Tax exempt | 4,644 | 3,471 | 14,447 | 16,612 |
Interest and dividend income on securities: | ||||
Taxable | 3,639 | 1,949 | 9,250 | 5,634 |
Tax exempt | 5 | 5 | 2 | 12 |
Other interest income | 1,849 | 611 | 3,687 | 1,450 |
Total interest income | 73,763 | 43,261 | 181,652 | 125,776 |
Interest expense: | ||||
Interest expense on deposits | 3,274 | 1,978 | 7,020 | 6,731 |
Interest expense on securities sold under agreements to repurchase | 51 | 13 | 74 | 49 |
Interest expense on other borrowed funds | 1,952 | 1,305 | 6,202 | 4,214 |
Total interest expense | 5,277 | 3,296 | 13,296 | 10,994 |
Net interest income | 68,486 | 39,965 | 168,356 | 114,782 |
Provision for loan losses | 3,750 | 3,500 | 12,450 | 1,750 |
Net interest income after provision for loan losses | 64,736 | 36,465 | 155,906 | 113,032 |
Noninterest income: | ||||
Service charges on deposit accounts | 4,807 | 3,471 | 13,111 | 8,659 |
Credit and debit card fees | 3,103 | 2,472 | 8,508 | 7,140 |
Trust and investment advisory fees | 1,552 | 1,974 | 5,408 | 5,871 |
Income from mortgage banking services, net | 13,785 | 20,151 | 40,017 | 68,144 |
Gain on other real estate owned and foreclosed assets activity, net | 155 | 93 | 164 | 591 |
Other noninterest income | 1,551 | 523 | 3,740 | 4,443 |
Total noninterest income | 24,953 | 28,684 | 70,948 | 94,848 |
Noninterest expense: | ||||
Salary and employee benefits | 32,508 | 36,061 | 101,981 | 113,129 |
Occupancy and equipment | 8,216 | 6,643 | 22,802 | 19,867 |
Amortization of intangible assets | 935 | 354 | 2,197 | 1,062 |
Merger related expenses | 0 | 705 | 18,751 | 1,984 |
Other noninterest expenses | 13,889 | 10,807 | 37,952 | 30,332 |
Total noninterest expense | 55,548 | 54,570 | 183,683 | 166,374 |
Income (loss) before income taxes | 34,141 | 10,579 | 43,171 | 41,506 |
Provision for income taxes | 7,628 | 1,851 | 8,559 | 7,159 |
Net income | 26,513 | 8,728 | 34,612 | 34,347 |
Other comprehensive income (loss), net of tax: | ||||
(Loss) gain on securities available-for-sale | (5,107) | 263 | (47,306) | (1,714) |
Gain on fair value hedges of securities available-for-sale | 1,438 | 0 | 2,536 | 0 |
Other comprehensive (loss) income, net of tax | (3,669) | 263 | (44,770) | (1,714) |
Comprehensive income (loss) | 22,844 | 8,991 | (10,158) | 32,633 |
Earnings per share: | ||||
Net income available to common stockholders, basic | 26,513 | 8,728 | 34,612 | 34,347 |
Net income available to common stockholders, diluted | $ 26,513 | $ 8,728 | $ 34,612 | $ 34,347 |
Basic (in dollars per share) | $ 1.07 | $ 0.48 | $ 1.53 | $ 1.87 |
Diluted (in dollars per share) | $ 1.04 | $ 0.46 | $ 1.49 | $ 1.83 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Treasury stock | Retained earnings | Accumulated other comprehensive income |
Balance, beginning of period (in shares) at Dec. 31, 2020 | 19,878,713 | |||||
Balance, beginning of period at Dec. 31, 2020 | $ 485,787 | $ 2 | $ 259,363 | $ (38,148) | $ 255,451 | $ 9,119 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation, net of forfeitures | 1,501 | 1,501 | ||||
Net income | 34,347 | 34,347 | ||||
Other comprehensive income (loss) | (1,714) | (1,714) | ||||
Balance, end of period (in shares) at Sep. 30, 2021 | 19,878,713 | |||||
Balance, ending of period at Sep. 30, 2021 | 519,921 | $ 2 | 260,864 | (38,148) | 289,798 | 7,405 |
Balance, beginning of period (in shares) at Jun. 30, 2021 | 19,878,713 | |||||
Balance, beginning of period at Jun. 30, 2021 | 510,582 | $ 2 | 260,516 | (38,148) | 281,070 | 7,142 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation, net of forfeitures | 348 | 348 | ||||
Net income | 8,728 | 8,728 | ||||
Other comprehensive income (loss) | 263 | 263 | ||||
Balance, end of period (in shares) at Sep. 30, 2021 | 19,878,713 | |||||
Balance, ending of period at Sep. 30, 2021 | $ 519,921 | $ 2 | 260,864 | (38,148) | 289,798 | 7,405 |
Balance, beginning of period (in shares) at Dec. 31, 2021 | 19,903,342 | 19,903,342 | ||||
Balance, beginning of period at Dec. 31, 2021 | $ 524,038 | $ 2 | 261,905 | (38,148) | 298,615 | 1,664 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock on restricted stock grants (in shares) | 11,344 | |||||
Issuance of common stock on restricted stock grants | $ 169 | 169 | ||||
Stock option exercises (in shares) | 67,976 | 80,934 | ||||
Stock option exercises | $ (414) | (414) | ||||
Share-based compensation, net of forfeitures | 924 | 924 | ||||
Net income | 34,612 | 34,612 | ||||
Other comprehensive income (loss) | (44,770) | (44,770) | ||||
Merger with Pioneer Bancshares, Inc. (issuance of treasury stock) (in shares) | 4,910,412 | |||||
Merger with Pioneer Bancshares, Inc. (issuance of treasury stock 1,557,054 shares) | $ 236,094 | 197,946 | 38,148 | |||
Balance, end of period (in shares) at Sep. 30, 2022 | 24,906,032 | 24,906,032 | ||||
Balance, ending of period at Sep. 30, 2022 | $ 750,653 | $ 2 | 460,530 | 0 | 333,227 | (43,106) |
Balance, beginning of period (in shares) at Jun. 30, 2022 | 24,850,954 | |||||
Balance, beginning of period at Jun. 30, 2022 | 727,542 | $ 2 | 460,263 | 0 | 306,714 | (39,437) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock on restricted stock grants | 102 | 102 | ||||
Stock option exercises (in shares) | 55,078 | |||||
Stock option exercises | (206) | (206) | ||||
Share-based compensation, net of forfeitures | 371 | 371 | ||||
Net income | 26,513 | 26,513 | ||||
Other comprehensive income (loss) | $ (3,669) | (3,669) | ||||
Balance, end of period (in shares) at Sep. 30, 2022 | 24,906,032 | 24,906,032 | ||||
Balance, ending of period at Sep. 30, 2022 | $ 750,653 | $ 2 | $ 460,530 | $ 0 | $ 333,227 | $ (43,106) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parentheticals) | 9 Months Ended |
Sep. 30, 2022 shares | |
Statement of Stockholders' Equity [Abstract] | |
Issuance of treasury stock (in shares) | 1,557,054 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 34,612 | $ 34,347 |
Adjustments to reconcile income to net cash provided by operating activities: | ||
Provision for loan losses | 12,450 | 1,750 |
Depreciation | 5,305 | 4,716 |
Deferred tax expense | 671 | 2,862 |
Amortization of net premium on securities | 1,737 | 2,617 |
Accretion of net discount on acquired loans | (1,832) | (1,001) |
Amortization of deferred loan origination fees and costs | 398 | (407) |
Amortization of core deposits and other intangible assets | 2,197 | 1,062 |
Amortization of software implementation costs | 639 | 844 |
Amortization of premium on acquired deposits | (743) | (45) |
Accretion of discount on subordinated debt | 191 | 192 |
Amortization of issuance costs on subordinated debt | 108 | 70 |
Accretion of discount on convertible notes payable | 1,093 | 559 |
Accretion of discount on Federal Home Loan Bank advances | 64 | 0 |
Increase in cash surrender value of bank-owned life insurance | (1,222) | (954) |
Impairment of premises and equipment | 720 | 23 |
Impairment of other real estate owned and foreclosed assets | 21 | 240 |
Federal Home Loan Bank stock dividends | (238) | (306) |
Share-based compensation expense | 1,093 | 1,501 |
Decrease (increase) in fair value of mortgage servicing rights | (14,777) | 3,706 |
Net loss on disposal of premises and equipment | 86 | 75 |
Net gain on other real estate owned and foreclosed assets activity | (164) | (591) |
Net gain on sales of loans held-for-sale | (10,498) | (50,224) |
Origination of loans held-for-sale | (899,200) | (1,693,782) |
Proceeds from sales of loans held-for-sale | 937,343 | 1,797,219 |
Changes in operating assets and liabilities: | ||
Accrued interest receivable | (6,255) | (1,233) |
Prepaid expenses and other assets | (32,474) | 2,231 |
Accrued interest payable | 297 | 176 |
Accrued expenses and other liabilities | 10,666 | (23,610) |
Net cash provided by operating activities | 42,288 | 82,735 |
Cash flows from investing activities: | ||
Cash acquired in excess of cash paid in connection with Pioneer Merger | 444,541 | 0 |
Proceeds from maturities of held-to-maturity securities | 3,027 | 12,097 |
Purchases of available-for-sale securities | (66,606) | (164,914) |
Proceeds from sale or maturities of available-for-sale securities | 157,399 | 97,499 |
Loan originations, net of repayments | (707,439) | 19,632 |
Proceeds from the sale of loans held-for-sale previously classified as held-for-investment | 0 | 18,544 |
Purchases of premises and equipment | (1,795) | (2,891) |
Proceeds from the sale of premises and equipment | 2 | 1,192 |
Proceeds from sales of other real estate owned and foreclosed assets | 867 | 1,221 |
Purchases of restricted equity securities | (18,549) | (49) |
Proceeds from the sale or redemption of restricted equity securities | 9,471 | 6,603 |
Purchase of other investments | (388) | (324) |
Proceeds from the sale or redemption of other investments | 745 | 519 |
Net cash used in investing activities | (178,725) | (10,871) |
Cash flows from financing activities: | ||
Net change in deposits | (285,868) | 704,481 |
Net change in securities sold under agreements to repurchase | (40,837) | 1,629 |
Proceeds from Federal Home Loan Bank advances | 170,884 | 0 |
Repayments of Federal Home Loan Bank advances | (60,000) | (30,411) |
Repayment of convertible notes payable | (15,217) | 0 |
Proceeds from subordinated debt, net | 24,466 | 0 |
Proceeds from issuance of common stock, net of issuance costs | (414) | 0 |
Net cash (used in) provided by financing activities | (206,986) | 675,699 |
Net (decrease) increase in cash and cash equivalents | (343,423) | 747,563 |
Cash and cash equivalents, beginning of period | 668,462 | 201,978 |
Cash and cash equivalents, end of period | 325,039 | 949,541 |
Supplemental disclosures of cash flow information: | ||
Interest paid on deposits | 6,726 | 6,869 |
Interest paid on borrowed funds | 6,605 | 4,362 |
Cash paid for income taxes, net | 10,276 | 4,930 |
Non-cash investing and financing activities: | ||
Assets acquired from Merger with Pioneer Bancshares, Inc. | 1,085,506 | 0 |
Liabilities assumed from Merger with Pioneer Bancshares, Inc. | 1,354,387 | 0 |
Net change in unrealized loss on available-for-sale securities | (62,473) | (2,270) |
Loan charge-offs | 2,412 | 3,242 |
Premises and equipment transferred to other real estate owned and foreclosed assets | 338 | 0 |
Loans transferred to other real estate owned and foreclosed assets | 291 | 3,264 |
Other assets transferred to Premises and equipment | 64 | 0 |
Mortgage servicing rights resulting from sale or securitization of mortgage loans | $ 11,681 | $ 18,533 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Nature of Operations - The consolidated financial statements include the accounts of FirstSun Capital Bancorp (“FirstSun” or “Parent Company” and its wholly-owned subsidiaries, Sunflower Bank, N.A. (the “Bank”) and Logia Portfolio Management, LLC, and have been prepared using U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial statements. All significant intercompany balances and transactions have been eliminated in consolidation. These entities are collectively referred to as “our”, “us”, “we”, or “the Company”. These consolidated financial statements in this Quarterly Report on Form 10-Q do not include all of the information and footnotes required by U.S. GAAP for a full year presentation and certain disclosures have been condensed or omitted in accordance with rules and regulations of the Securities and Exchange Commission (“SEC”). These interim financial statements are unaudited, and include, in our opinion, all adjustments necessary for a fair statement of the results for the periods indicated, which are not necessarily indicative of results which may be expected for the full year. These unaudited consolidated financial statements and notes should be read in conjunction with FirstSun’s audited consolidated financial statements and footnotes thereto for the year ended December 31, 2021, included in our Annual Report on Form 10-K filed with the SEC on March 25, 2022 (the “2021 Form 10-K”). Certain prior period amounts have been reclassified to conform to the current period presentation. Reclassifications had no effect on our net income or stockholders’ equity. Business Combination - On April 1, 2022, FirstSun completed its previously announced Merger with Pioneer Bancshares, Inc. (“Pioneer”). Under the Merger Agreement, a wholly-owned subsidiary of FirstSun, FSCB Merger Subsidiary, Inc., merged with and into Pioneer, with Pioneer continuing as the surviving entity and becoming a wholly-owned subsidiary of FirstSun (the “Merger”). Immediately after the effective time of the Merger (the “Effective Time”), Pioneer was merged with and into FirstSun, with FirstSun continuing as the surviving entity (the “second step Merger”). Immediately following the completion of the second step Merger, Pioneer’s wholly-owned subsidiary, Pioneer Bank, SSB, a Texas state savings bank, was merged with and into the Bank, with the Bank continuing as the surviving bank. Pursuant to the terms of the Merger Agreement, at the Effective Time, each Pioneer shareholder had the right to receive 1.0443 shares of FirstSun common stock, for each share of Pioneer common stock owned by the shareholder, with cash paid in lieu of fractional shares. Each outstanding share of FirstSun common stock remained outstanding and was unaffected by the Merger. Further information is presented in Note 2 - Merger with Pioneer Bancshares, Inc. Use of Estimates - The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates are based on historical experience and on various assumptions about the future that are believed to be reasonable based on all available information. Our reported financial position or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies. In the event that estimates or assumptions prove to differ from actual results, adjustments are made in subsequent periods to reflect more current information. Risks and Uncertainties - In the normal course of business, companies in the banking and mortgage industries encounter certain economic and regulatory risks. Economic risks include prepayment risk, market risk, interest rate risk, and credit risk. We are subject to interest rate risk to the extent that in a rising interest rate environment we may experience a decrease in loan production, as well as decreases in the value of mortgage loans held-for-sale and in commitments to originate loans, which may adversely impact our earnings. Credit risk is the risk of default that may result from the borrowers’ inability or unwillingness to make contractually required payments. We generally sell loans to investors without recourse; therefore, the investors have assumed the risk of loss or default by the borrower. However, we are usually required by these investors to make certain standard representations and warranties relating to credit information, loan documentation, and collateral. To the extent that we do not comply with such representations, or there are early payment defaults, we may be required to repurchase the loans or indemnify these investors for any losses from borrower defaults. In addition, if loans pay off within a specified time frame, we may be required to refund a portion of the sales proceeds to the investors. We established reserves for potential losses related to these representations and warranties which are recorded within accrued expenses and other liabilities. In assessing the adequacy of the reserves, we evaluate various factors including actual write-offs during the period, historical loss experience, known delinquent and other problem loans, and economic trends and conditions in the industry. Further information is presented in Note 17 - Commitments and Contingencies . Adoption of New Accounting Standards - As an “emerging growth company” under Section 107 of the JOBS Act, we can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. Therefore, we can delay the adoption of certain accounting standards until those standards would otherwise apply to non-public business entities. We intend to take advantage of the benefits of this extended transition period for an “emerging growth company” for as long as it is available to us. For standards that we have delayed adoption, we may lack comparability to other companies who have adopted such standards. Other than the adoption of ASU 2016-02, Leases (Topic 842), there have been no material developments with respect to newly issued standards from those disclosed in our 2021 Form 10-K. We are currently executing our implementation plan for ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) under the direction of our Chief Financial Officer and our Chief Credit Officer. As of September 30, 2022, we have performed a preliminary parallel run and completed an external model validation of our modeling framework. A separate model validation related to our probability of default and loss given default internal loan risk rating framework is nearing completion. We continue to design and implement our controls over the new allowance model framework. Based upon our preliminary parallel run we currently expect the adoption of ASU 2016-13 will result in an increase in our allowance for loan losses and our reserves for unfunded commitments. This increase is a result of changing from an “incurred loss” model, which encompasses allowances for current known and inherent losses within the portfolio, to an “expected loss” model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. Furthermore, ASU 2016-13 will necessitate that we establish an allowance for expected credit losses for certain debt securities and other financial assets; however, we do not expect these allowances to be significant. Additionally, the adoption of ASU 2016-13 is not expected to have a significant impact on our regulatory capital ratios. The ultimate impact of adoption on January 1, 2023 will be significantly influenced by the composition, characteristics and quality of our loan and securities portfolios as well as the prevailing economic conditions and forecasts as of that date, notwithstanding any further refinements to our expected credit loss models. |
Merger with Pioneer Bancshares,
Merger with Pioneer Bancshares, Inc. | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Merger with Pioneer Bancshares, Inc. | Merger with Pioneer Bancshares, Inc. As described under the title “Business Combination” in Note 1 - Organization and Basis of Presentation, we completed our Merger with Pioneer on April 1, 2022. We accounted for the Pioneer Merger under the acquisition method in accordance with ASC Topic 805, Business Combinations . Accordingly, the purchase price was allocated to the fair value of the assets acquired, including identifiable intangible assets, and the liabilities assumed as of the closing date of the Merger. Goodwill resulting from the difference between the fair value of the assets acquired and the fair value of the liabilities assumed is not amortizable for book or tax purposes. This goodwill resulted from the combination of expected operational synergies, the increase in our market share in Texas and other factors. Although the Merger was nontaxable, the Merger gave rise to certain temporary differences for which deferred taxes have been recognized. The results of operations for the Pioneer Merger have been included in our consolidated financial results beginning on the April 1, 2022 closing date. Consideration Under the terms of the Merger Agreement, each outstanding share of Pioneer common stock was converted into 1.0443 shares of FirstSun common stock (except for shareholders who properly exercised their dissenters’ rights) with cash paid in lieu of fractional shares. Accordingly, we issued 6,467,466 shares of our common stock to Pioneer shareholders in the Merger valued at $230,760 based on a third-party valuation of our common stock in accordance with ASC Topic 820, Fair Value Measurements as of the closing date. We also converted Pioneer stock options into 431,645 options to purchase shares of FirstSun common stock. This conversion was valued at $5,334. We also paid cash to certain Pioneer shareholders of $4,736. Total aggregate consideration paid in the Pioneer Merger was $240,830. Fair Value We recorded the estimated fair value of assets acquired and liabilities assumed based on initial valuations at April 1, 2022. The determination of estimated fair value required management to make assumptions related to discount rates, expected future cash flows, market conditions and other future events that are subjective in nature and may require adjustments. Accordingly, these fair value estimates are considered preliminary as of September 30, 2022, and are subject to adjustment during the specified measurement period that ends 12 months from the closing date of the Merger. Estimated fair values of the assets acquired and liabilities assumed in this transaction are as follows: April 1, Cash and cash equivalents $ 449,278 Investment securities 157,859 Loans held-for-sale 2,923 Loans 811,300 Premises and equipment 39,935 Bank-owned life insurance 21,382 Restricted equity securities 9,320 Core deposits and other intangible assets 11,771 Accrued interest receivable 3,947 Deferred tax assets 19,752 Prepaid expenses and other assets 7,317 Total assets acquired 1,534,784 Deposits 1,192,081 Federal Home Loan Bank advances 159,924 Accrued interest payable 407 Accrued expenses and other liabilities 1,975 Total liabilities assumed 1,354,387 Fair value of net assets acquired 180,397 Purchase price 240,830 Goodwill $ 60,433 Acquired loans and purchased credit impaired loans Acquired loans were recorded at fair value based on a discounted cash flow valuation methodology that considered, among other things, projected default rates, loss given default rates and recovery rates. No allowance for loan losses was carried over from Pioneer. We identified certain acquired loans as purchased credit impaired (PCI). PCI loan identification considered payment history and past due status, debt service coverage, loan grading, collateral values and other factors that may be an indication of a deterioration of credit quality since origination. Although we identified certain acquired loans as PCI, the amount was determined to be insignificant. The following table discloses the fair value and contractual value of loans acquired from Pioneer on April 1, 2022. Acquired Loans Contractual Principal Balance Commercial $ 98,351 $ 98,752 Commercial real estate 509,173 516,341 Residential real estate 173,094 174,763 Consumer 30,682 31,982 Total fair value $ 811,300 $ 821,838 |
Securities
Securities | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The amortized cost, gross unrealized gains and losses, and fair values of available-for-sale and held-to-maturity debt securities by type follows as of: Amortized Gross Gross Estimated September 30, 2022 Available-for-sale: U.S. treasury $ 62,021 $ — $ (5,403) $ 56,618 U.S. agency 3,242 — (41) 3,201 Obligations of states and political subdivisions 29,860 — (4,408) 25,452 Mortgage backed - residential 134,216 8 (15,711) 118,513 Collateralized mortgage obligations 232,970 — (18,940) 214,030 Mortgage backed - commercial 132,358 — (13,766) 118,592 Other debt 16,769 — (2,010) 14,759 Total available-for-sale $ 611,436 $ 8 $ (60,279) $ 551,165 Held-to-maturity: Obligations of states and political subdivisions $ 25,002 $ — $ (4,134) $ 20,868 Mortgage backed - residential 9,091 5 (654) 8,442 Collateralized mortgage obligations 5,055 — (269) 4,786 Total held-to-maturity $ 39,148 $ 5 $ (5,057) $ 34,096 December 31, 2021 Available-for-sale: U.S. treasury $ 35,400 $ — $ (215) $ 35,185 U.S. agency 6,019 — (100) 5,919 Obligations of states and political subdivisions 3,979 — (190) 3,789 Mortgage backed - residential 138,297 2,018 (1,638) 138,677 Collateralized mortgage obligations 236,282 1,441 (1,939) 235,784 Mortgage backed - commercial 150,322 3,424 (599) 153,147 Total available-for-sale $ 570,299 $ 6,883 $ (4,681) $ 572,501 Held-to-maturity: Obligations of states and political subdivisions $ 716 $ 25 $ — $ 741 Mortgage backed - residential 10,750 390 — 11,140 Collateralized mortgage obligations 6,541 177 — 6,718 Total held-to-maturity $ 18,007 $ 592 $ — $ 18,599 As of September 30, 2022 and December 31, 2021, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. Certain debt securities that have gross unrealized losses and have been in a continuous unrealized loss position for more than one year follows as of: Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Number September 30, 2022 Available-for-sale: U.S. treasury $ 25,690 $ (975) $ 30,928 $ (4,428) $ 56,618 $ (5,403) 10 U.S. agency — — 3,201 (41) 3,201 (41) 7 Obligations of states and political subdivisions 22,626 (3,346) 2,357 (1,062) 24,983 (4,408) 18 Mortgage backed - residential 68,299 (5,512) 49,723 (10,199) 118,022 (15,711) 86 Collateralized mortgage obligations 148,461 (6,846) 65,569 (12,094) 214,030 (18,940) 67 Mortgage backed - commercial 88,997 (10,162) 29,595 (3,604) 118,592 (13,766) 22 Other debt 14,759 (2,010) — — 14,759 (2,010) 9 Total available-for-sale $ 368,832 $ (28,851) $ 181,373 $ (31,428) $ 550,205 $ (60,279) 219 Held-to-maturity: Obligations of states and political subdivisions $ 20,869 $ (4,134) $ — $ — $ 20,869 $ (4,134) 8 Mortgage backed - residential 8,217 (654) — — 8,217 (654) 10 Collateralized mortgage obligations 4,786 (269) — — 4,786 (269) 5 Total held-to-maturity $ 33,872 $ (5,057) $ — $ — $ 33,872 $ (5,057) 23 Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Number December 31, 2021 Available-for-sale: U.S. treasury $ 35,185 $ (215) $ — $ — $ 35,185 $ (215) 4 U.S. agency — — 5,919 (100) 5,919 (100) 7 Obligations of states and political subdivisions 3,232 (190) — — 3,232 (190) 2 Mortgage backed - residential 51,616 (530) 25,246 (1,108) 76,862 (1,638) 17 Collateralized mortgage obligations 115,877 (1,938) 193 (1) 116,070 (1,939) 16 Mortgage backed - commercial 32,872 (581) 24,170 (18) 57,042 (599) 5 Total available-for-sale $ 238,782 $ (3,454) $ 55,528 $ (1,227) $ 294,310 $ (4,681) 51 There were no held-to-maturity securities in an unrealized loss position as of December 31, 2021. Estimated fair value is less than amortized cost primarily because of the rising interest rate environment and is unrelated to specific conditions of the issuer. At September 30, 2022 and December 31, 2021, management does not believe these securities are other than temporarily impaired for the following reasons: there was no significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the issuer; there was no significant adverse change in the regulatory, economic, or technological environment of the issuer; and there was no significant adverse change in the general market condition of either the geographic area or the industry in which the issuer operates. Management has the ability and intent to hold these securities and it is likely that management will not be required to sell the securities prior to maturity or until such time as the full amount of investment principal will be returned. The amortized cost and fair value of our debt securities by contractual maturity as of September 30, 2022 are summarized in the following table. Maturities are based on the final contractual payment dates and do not reflect the impact of prepayments or earlier redemptions that may occur. Amortized Estimated Available-for-sale: Due within 1 year $ 3,533 $ 3,444 Due after 1 year through 5 years 45,272 43,573 Due after 5 years through 10 years 174,641 155,456 Due after 10 years 387,990 348,692 Total available-for-sale $ 611,436 $ 551,165 Held-to-maturity: Due after 1 year through 5 years $ 1,042 $ 997 Due after 5 years through 10 years 668 629 Due after 10 years 37,438 32,470 Total held-to-maturity $ 39,148 $ 34,096 Securities with a carrying value of $435,410 and $465,665 were pledged to secure public deposits, securities sold under agreements to repurchase and borrowed funds at September 30, 2022 and December 31, 2021, respectively. For the three and nine months ended September 30, 2022, there were proceeds from the sale of securities of $81,016. No gain or loss was recognized for the three and nine months ended September 30, 2022 as the securities sold were acquired at fair value on April 1, 2022 in the Pioneer Merger and were sold on April 5, 2022. There were no proceeds from sales and calls of securities for the three and nine months ended September 30, 2021. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Loans | Loans Loans held-for-investment consist of the following as of: September 30, December 31, Commercial $ 2,742,625 $ 2,414,787 Commercial real estate 1,781,791 1,176,973 Residential real estate 1,003,699 437,116 Consumer 44,358 17,766 Total loans 5,572,473 4,046,642 Deferred costs, fees, premiums, and discounts, net (15,787) (9,519) Allowance for loan losses (59,678) (47,547) Total loans, net $ 5,497,008 $ 3,989,576 On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was signed into law. A provision in the CARES Act created the Paycheck Protection Program (PPP), a program administered by the Small Business Administration (“SBA”) to provide loans to small business during the COVID-19 pandemic. As of September 30, 2022 and December 31, 2021, we had $6,086 and $68,401 of PPP loans outstanding and deferred processing fees outstanding of $54 and $1,652, respectively. PPP loans are classified as Commercial loans in the consolidated financial statements. No allowance for loan losses has been recognized for PPP loans as such loans are guaranteed by the SBA. The following table presents the activity in the allowance for loan losses by portfolio type for the three months ended September 30,: Commercial Commercial Residential Consumer Total 2022 Allowance for loan losses: Balance, beginning of period $ 34,987 $ 18,053 $ 2,719 $ 318 $ 56,077 Provision for loan losses 2,286 1,163 269 32 3,750 Loans charged off (223) — (24) (53) (300) Recoveries 112 2 1 36 151 Balance, end of period $ 37,162 $ 19,218 $ 2,965 $ 333 $ 59,678 2021 Allowance for loan losses: Balance, beginning of period $ 28,173 $ 13,149 $ 1,305 $ 351 $ 42,978 Provision for (benefit from) loan losses 3,030 560 (31) (59) 3,500 Loans charged off — — — (66) (66) Recoveries 1,440 — 3 13 1,456 Balance, end of period $ 32,643 $ 13,709 $ 1,277 $ 239 $ 47,868 The following table presents the activity in the allowance for loan losses by portfolio type for the nine months ended September 30,: Commercial Commercial Residential Consumer Total 2022 Allowance for loan losses: Balance, beginning of period $ 33,277 $ 12,899 $ 1,136 $ 235 $ 47,547 Provision for loan losses 4,223 6,316 1,755 156 12,450 Loans charged off (2,173) — (122) (117) (2,412) Recoveries 1,835 3 196 59 2,093 Balance, end of period $ 37,162 $ 19,218 $ 2,965 $ 333 $ 59,678 2021 Allowance for loan losses: Balance, beginning of period $ 32,009 $ 13,863 $ 1,606 $ 288 $ 47,766 Provision for (benefit from) loan losses 2,210 (163) (350) 53 1,750 Loans charged off (3,102) — (2) (138) (3,242) Recoveries 1,526 9 23 36 1,594 Balance, end of period $ 32,643 $ 13,709 $ 1,277 $ 239 $ 47,868 We determine the allowance for loan losses estimate on at least a quarterly basis. The following table presents the balance in the allowance for loan losses and the recorded investment by portfolio type based on impairment method as of: Commercial Commercial Residential Consumer Total September 30, 2022 Loans: Individually evaluated for impairment $ 16,560 $ 11,108 $ 14,132 $ 87 $ 41,887 Collectively evaluated for impairment 2,726,065 1,770,683 989,567 44,271 5,530,586 Total loans $ 2,742,625 $ 1,781,791 $ 1,003,699 $ 44,358 $ 5,572,473 Allowance for loan losses: Individually evaluated for impairment $ 1,034 $ 188 $ 29 $ 84 $ 1,335 Collectively evaluated for impairment 36,128 19,030 2,936 249 58,343 Total allowance for loan losses $ 37,162 $ 19,218 $ 2,965 $ 333 $ 59,678 December 31, 2021 Loans: Individually evaluated for impairment $ 17,460 $ 4,781 $ 11,479 $ 2 $ 33,722 Collectively evaluated for impairment 2,397,327 1,172,192 425,637 17,764 4,012,920 Total loans $ 2,414,787 $ 1,176,973 $ 437,116 $ 17,766 $ 4,046,642 Allowance for loan losses: Individually evaluated for impairment $ 2,517 $ 12 $ 39 $ — $ 2,568 Collectively evaluated for impairment 30,760 12,887 1,097 235 44,979 Total allowance for loan losses $ 33,277 $ 12,899 $ 1,136 $ 235 $ 47,547 The following table presents information related to impaired loans by class of loans as of: Unpaid Recorded Allowance for Average September 30, 2022 With no related allowance recorded: Commercial $ 13,937 $ 13,438 $ — $ 9,609 Commercial real estate 10,693 10,312 — 5,031 Residential real estate 13,939 14,103 — 8,818 Consumer — — — — Total loans with no related allowance recorded 38,569 37,853 — 23,458 With an allowance recorded: Commercial 3,256 3,122 1,034 2,426 Commercial real estate 796 796 188 265 Residential real estate 29 29 29 10 Consumer 87 87 84 29 Total loans with an allowance recorded 4,168 4,034 1,335 2,730 Total impaired loans $ 42,737 $ 41,887 $ 1,335 $ 26,188 December 31, 2021 With no related allowance recorded: Commercial $ 14,619 $ 13,982 $ — $ 10,637 Commercial real estate 4,795 4,706 — 3,943 Residential real estate 10,754 10,808 — 7,223 Consumer 3 2 — 3 Total loans with no related allowance recorded 30,171 29,498 — 21,806 With an allowance recorded: Commercial 3,666 3,478 2,517 2,375 Commercial real estate 124 75 12 57 Residential real estate 665 671 39 462 Total loans with an allowance recorded 4,455 4,224 2,568 2,894 Total impaired loans $ 34,626 $ 33,722 $ 2,568 $ 24,700 Interest income recorded on impaired loans was not material for the three and nine months ended September 30, 2022 and 2021. Credit risk monitoring and management is a continuous process to manage the quality of the loan portfolio. We segment loans into risk categories based on relevant information about the ability of borrowers to service their debt including current financial information, historical payment experience, credit documentation, public information and current economic trends among other factors. The risk rating system is used as a tool to analyze and monitor loan portfolio quality. Risk ratings meeting an internally specified exposure threshold are updated annually, or more frequently upon the occurrence of a circumstance that affects the credit risk of the loan. We use the following definitions for risk ratings: Substandard - loans are considered “classified” and have a well-defined weakness, or weaknesses, such as loans that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans are also characterized by the distinct possibility of loss in the future if the deficiencies are not corrected. Doubtful - loans are considered “classified” and have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. There were no loans categorized as doubtful as of September 30, 2022 and December 31, 2021. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans. The following table presents the credit risk profile of our loan portfolio based on our rating categories as of: Non-Classified Classified Total September 30, 2022 Commercial $ 2,710,397 $ 32,228 $ 2,742,625 Commercial real estate 1,750,480 31,311 1,781,791 Residential real estate 994,835 8,864 1,003,699 Consumer 44,270 88 44,358 Total loans $ 5,499,982 $ 72,491 $ 5,572,473 December 31, 2021 Commercial $ 2,384,275 $ 30,512 $ 2,414,787 Commercial real estate 1,146,673 30,300 1,176,973 Residential real estate 431,033 6,083 437,116 Consumer 17,762 4 17,766 Total loans $ 3,979,743 $ 66,899 $ 4,046,642 The following table presents our loan portfolio aging analysis as of: Loans Loans Loans Loans Greater Nonaccrual Total September 30, 2022 Commercial $ 2,720,683 $ 4,431 $ 1,505 $ 261 $ 15,745 $ 2,742,625 Commercial 1,771,809 681 365 — 8,936 1,781,791 Residential 988,528 2,027 4,142 198 8,804 1,003,699 Consumer 44,230 41 — — 87 44,358 Total loans $ 5,525,250 $ 7,180 $ 6,012 $ 459 $ 33,572 $ 5,572,473 December 31, 2021 Commercial $ 2,392,205 $ 5,467 $ 623 $ — $ 16,492 $ 2,414,787 Commercial 1,160,244 10,887 — 1,061 4,781 1,176,973 Residential 424,860 5,794 410 — 6,052 437,116 Consumer 17,719 45 — — 2 17,766 Total loans $ 3,995,028 $ 22,193 $ 1,033 $ 1,061 $ 27,327 $ 4,046,642 As of September 30, 2022 and December 31, 2021, we have a recorded investment in troubled debt restructurings (“TDRs”) of $18,495 and $21,699, respectively. We have no commitments to lend additional amounts on our TDRs at September 30, 2022. The modification of the terms of the loans performed for the three and nine months ended September 30, 2022 and 2021, included rate modifications, extensions of the maturity dates or a permanent reduction of the recorded investment in the loans. The following table presents loans by class modified as TDRs that occurred during the nine months ended September 30, 2022 and year ended December 31, 2021: Number Pre-Modification Post-Modification September 30, 2022 Commercial 1 $ 248 $ 198 Residential real estate 1 126 126 Consumer 1 72 72 Total 3 $ 446 $ 396 December 31, 2021 Commercial 7 $ 6,969 $ 6,178 Commercial real estate 1 2,295 2,265 Residential real estate 4 1,386 1,435 Total 12 $ 10,650 $ 9,878 As of September 30, 2022 and December 31, 2021, the TDRs increased the allowance for loan losses by $797 and $2,326, respectively. There were no amounts charged-off during the three and nine months ended September 30, 2022 and year ended December 31, 2021. For the year ended December 31, 2021, there were loans modified as TDRs totaling $106 for which there was a payment default following the modification. In order to assess whether a borrower is experiencing financial difficulty, an evaluation is performed to determine the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under our internal underwriting policy. A loan is generally considered to be in payment default once it is 30 days contractually past due under the modified terms. Acquired Loans and Loan Discounts : Included in the net loan portfolio as of September 30, 2022 and December 31, 2021 is a net accretable discount related to loans acquired within a business combination in the approximate amounts of $9,768 and $571, respectively. The discount is accreted into income on a level-yield basis over the life of the loans. Loans acquired with evidence of credit quality deterioration at acquisition, for which it was probable that we would not be able to collect all contractual amounts due, were accounted for as purchased credit impaired (“PCI”) loans. The outstanding balance represents the total amount owed, including accrued but unpaid interest, and any amounts previously charged off. The carrying amount of purchased credit impaired loans was not significant as of September 30, 2022 and December 31, 2021. |
Mortgage Servicing Rights
Mortgage Servicing Rights | 9 Months Ended |
Sep. 30, 2022 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights | Mortgage Servicing Rights We have investments in mortgage servicing rights (“MSRs”) that result from the sale of loans to the secondary market for which we retain the servicing. We account for these MSRs at their fair value. A primary risk associated with MSRs is the potential reduction in fair value as a result of higher than anticipated prepayments due to loan refinancing prompted, in part, by declining interest rates or government intervention. Conversely, these assets generally increase in value in a rising interest rate environment to the extent that prepayments are slower than anticipated. We utilize derivatives as economic hedges to offset changes in the fair value of the MSRs resulting from the actual or anticipated changes in prepayments stemming from changing interest rate environments. The unpaid principal loan balance of our servicing portfolio is presented in the following table as of: September 30, December 31, 2021 Federal National Mortgage Association $ 2,499,105 $ 2,352,981 Federal Home Loan Mortgage Corporation 1,627,381 1,512,858 Government National Mortgage Association 852,490 759,524 Federal Home Loan Bank 114,747 134,616 Other 1,443 1,853 Total $ 5,095,166 $ 4,761,832 The activity of MSRs carried at fair value is as follows: For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Balance, beginning of period $ 66,047 $ 40,844 $ 47,392 $ 29,144 Additions: Servicing resulting from transfers of financial assets 3,489 5,303 11,681 18,533 Changes in fair value: Due to changes in valuation inputs or assumptions used in the valuation model 6,270 948 21,142 5,209 Changes in fair value due to pay-offs, pay-downs, and runoff (1,956) (3,124) (6,365) (8,915) Balance, end of period $ 73,850 $ 43,971 $ 73,850 $ 43,971 The following represents the weighted-average key assumptions used to estimate the fair value of MSRs as of: September 30, December 31, September 30, Discount rate 9.34 % 9.22 % 9.22 % Total prepayment speeds 7.43 % 11.52 % 12.15 % Cost of servicing each loan $87/per loan $85/per loan $86/per loan Total servicing and ancillary fees earned from the mortgage servicing portfolio is presented in the following table: For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Servicing fees $ 4,111 $ 3,101 $ 10,807 $ 8,853 Late and ancillary fees 123 118 264 317 Total $ 4,234 $ 3,219 $ 11,071 $ 9,170 |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Banking Derivative Financial Instruments : We use fair value hedges to seek to manage our exposure to changes in the fair value of certain recognized assets attributable to changes in a benchmark interest rate, such as SOFR. The fair value hedges were determined to be effective during all periods presented and we expect the hedges to remain effective during their remaining terms. Derivatives not designated as hedges are not speculative and result from a service we provide to certain customers. We execute interest rate swaps with banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously offset by derivatives that we execute with a third party, such that we minimize our net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings. Derivative instruments are measured at fair value and recorded as a component of prepaid expenses and other assets and accrued expenses and other liabilities. The components of our banking derivative financial instruments consisted of the following as of: Number of Expiration Outstanding Estimated September 30, 2022 Derivative financial instruments designated as hedging instruments: Assets: Interest Rate Products 32 2028-2036 $ 204,216 $ 16,717 Derivative financial instruments not designated as hedging instruments: Assets: Interest Rate Products 41 2024-2037 $ 275,765 $ 26,642 Liabilities: Interest Rate Products 41 2024-2037 $ 275,765 $ 25,987 December 31, 2021 Derivative financial instruments designated as hedging instruments: Assets: Interest Rate Products 1 2029 $ 20,190 $ 1,213 Liabilities: Interest Rate Products 12 2022-2029 $ 179,431 $ 7,107 Derivative financial instruments not designated as hedging instruments: Assets: Interest Rate Products 38 2024-2036 $ 232,849 $ 6,923 Liabilities: Interest Rate Products 38 2024-2036 $ 232,849 $ 7,366 We recorded gains and losses on banking derivative assets and liabilities as follows: For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Recorded gain (loss) on banking derivative assets $ 15,123 $ (186) $ 30,192 $ (420) Recorded (loss) gain on banking derivative liabilities $ (14,771) $ 337 $ (29,095) $ 926 For the three months ended September 30, 2022 and 2021, our banking derivative financial instruments not designated as hedging instruments generated fee income of $492 and $246, respectively. For the nine months ended September 30, 2022 and 2021, our banking derivative financial instruments not designated as hedging instruments generated fee income of $1,294 and $1,080, respectively. The carrying amount of hedged loans receivable as of September 30, 2022 and December 31, 2021 was $144,506 and $205,235, respectively. The cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged loans receivable as of September 30, 2022 and December 31, 2021 was $(13,491) and $5,614, respectively. The carrying amount of hedged securities available-for-sale as of September 30, 2022 was $36,268. The cumulative amount of fair value hedging adjustment, net of tax included in other comprehensive income (loss) as of September 30, 2022 was $2,536. There were no hedged securities available-for-sale as of December 31, 2021. Credit-risk-related Contingent Features : We have agreements with each of our derivative counterparties that contain a provision where if we either default or are capable of being declared in default on any of our indebtedness, then we could also be declared in default on our derivative obligations. We also have agreements with our derivative counterparties that contain a provision where if we fail to maintain our status as a well-capitalized institution, then our derivative counterparties have the right but not the obligation to terminate existing swaps. As of September 30, 2022 and December 31, 2021, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $26,125 and $14,882, respectively. As of September 30, 2022 and December 31, 2021, we have minimum collateral posting thresholds with our derivative counterparties and have posted collateral of $9,090 and $14,970, respectively. If we had breached any of these provisions at September 30, 2022, we could have been required to settle our obligations under the agreements at their termination value of $26,125. Mortgage Banking Derivative Financial Instruments : The components of our mortgage banking derivative financial instruments consisted of the following as of: Expiration Outstanding Estimated September 30, 2022 Derivative financial instruments Assets: Forward MBS trades 2022 $ 123,000 $ 5,012 Liabilities: Forward MBS trades 2022 $ 20,300 $ 845 Interest rate lock commitments (IRLC) 2022 $ 99,368 $ 1,439 December 31, 2021 Derivative financial instruments Assets: Forward MBS trades 2022 $ 450,600 $ 1,329 Interest rate lock commitments (IRLC) 2022 $ 142,334 $ 1,350 Liabilities: Forward MBS trades 2022 $ 16,600 $ 52 We recorded gains and losses on mortgage banking derivative assets and liabilities as follows: For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Recorded gain (loss) on mortgage banking derivative assets $ 3,277 $ 9,175 $ 5,189 $ (302) Recorded loss on mortgage banking derivative liabilities $ (2,844) $ (10,241) $ (16,940) $ (7,714) |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2022 | |
Statistical Disclosure for Banks [Abstract] | |
Deposits | Deposits The composition of our deposits is as follows as of: September 30, December 31, Noninterest-bearing demand deposit accounts $ 1,946,215 $ 1,566,113 Interest-bearing deposit accounts: Interest-bearing demand accounts 160,082 187,712 Savings accounts and money market accounts 3,008,433 2,757,882 NOW accounts 46,128 19,496 Certificate of deposit accounts: Less than $100 216,331 147,386 $100 through $250 224,999 103,082 Greater than $250 158,230 73,277 Total interest-bearing deposit accounts 3,814,203 3,288,835 Total deposits $ 5,760,418 $ 4,854,948 The following table summarizes the interest expense incurred on our deposits: For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Interest-bearing deposit accounts: Interest-bearing demand accounts $ 449 $ 89 $ 733 $ 300 Savings accounts and money market accounts 1,859 1,155 4,095 3,668 NOW accounts 46 50 115 336 Certificate of deposit accounts 920 684 2,077 2,427 Total interest-bearing deposit accounts $ 3,274 $ 1,978 $ 7,020 $ 6,731 The remaining maturity on certificate of deposit accounts is as follows as of: September 30, Remainder of 2022 $ 1,085 2023 382,847 2024 119,617 2025 71,858 2026 13,429 2027 7,629 Thereafter 3,095 Total certificate of deposit accounts $ 599,560 |
Securities Sold Under Agreement
Securities Sold Under Agreements to Repurchase | 9 Months Ended |
Sep. 30, 2022 | |
Carrying Value of Securities Sold under Repurchase Agreements and Deposits Received for Securities Loaned [Abstract] | |
Securities Sold Under Agreements to Repurchase | Securities Sold Under Agreements to Repurchase Information concerning securities sold under agreements to repurchase is as follows as of and for the periods ended: September 30, December 31, Amount outstanding at period-end $ 51,256 $ 92,093 Average daily balance during the period $ 59,573 $ 125,867 Average interest rate during the period 0.22 % 0.05 % Maximum month-end balance during the period $ 70,838 $ 160,865 Weighted average interest rate at period-end 0.40 % 0.05 % At September 30, 2022 and December 31, 2021, such agreements were secured by investment and mortgage-related securities with an approximate carrying amount of $58,642 and $108,714, respectively. Pledged securities are maintained by safekeeping agents at the direction of the Bank. Our agreements to repurchase generally mature daily, and are considered to be in an overnight and continuous position. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt FHLB advances : The following is a breakdown of our FHLB advances and other borrowings outstanding as of: September 30, 2022 December 31, 2021 Amount Rate Weighted Amount Rate Weighted Variable rate line-of-credit advance $ 170,884 2.42% - 3.16% 3% $ — N/A N/A Fixed rate term advances $ 139,988 1.56% - 1.90% 1.77% $ 40,000 0.91% - 2.59% 1.49% $ 310,872 $ 40,000 The advances were collateralized by $1,546,157 and $1,180,493 of loans pledged to the FHLB as collateral as of September 30, 2022 and December 31, 2021, respectively. A $50.0 million advance at an interest rate of 1.56% that was scheduled to mature in 2033 was called by the FHLB and repaid in October 2022. A $65.0 million advance at an interest rate of 1.90% that was scheduled to mature in 2033 was called by the FHLB and repaid in November 2022. The remaining fixed rate advance is callable by the FHLB and is due in 2033. As of September 30, 2022 and December 31, 2021, the Bank had total borrowing capacity with the FHLB that is based on qualified collateral lending values of $954,016 and $597,915, respectively. Our additional borrowing availability with the FHLB at September 30, 2022 was $659,479. These borrowings can be in the form of additional term advances or a line-of-credit. FRB advances : We also had a $6,499 line-of-credit with the FRB. The agreement bears interest at the Fed Funds target rate plus 0.50% and is secured by municipal, agency, mortgage-related and corporate securities. The entire line was available at September 30, 2022. Other borrowings : We have lines-of-credit with certain other financial institutions totaling $155,000 as of September 30, 2022. No amounts were drawn on these lines-of-credit in 2022. Convertible Notes Payable : As of September 30, 2022 and December 31, 2021, we have issued a total of $5,456 and $20,673, respectively, of convertible notes with a maturity date of August 31, 2023. The annual interest rate on these convertible notes is 3.29% with quarterly interest payments. With respect to conversion, each $1 (in thousands) principal amount of the convertible notes can be converted to 15.6717 shares of Parent Company common stock at any time until maturity. The convertible notes were originally recorded with a discount of $4,682. As of and for the periods ended September 30, 2022 and December 31, 2021, the debt discount on the convertible notes was $139 and $1,231, respectively. The related accretion for the three months ended September 30, 2022 and 2021 was $38 and $186, respectively. The related accretion for the nine months ended September 30, 2022 and 2021 was $1,093 and $559, respectively. Subordinated Debt : Subordinated Notes - 2020 : In June and August 2020, we issued a total of $40,000 subordinated notes. The notes pay interest at a fixed rate of 6.00% through June 30, 2025 and subsequently, until maturity, pay interest at a floating rate of three month term SOFR plus 5.89% reset quarterly. Interest is payable on July 1 and January 1 of each year. Such notes are due on July 1, 2030. The notes are not redeemable within the first five years of issuance, except under certain very limited conditions. After five years, we may redeem the notes at our discretion. We incurred and capitalized $933 of costs related to the issuance of the subordinated notes. The amortization associated with the capitalized issuance costs is not significant for the periods presented. Subordinated Note - 2022 : On January 13, 2022, we issued a subordinated note totaling $25,000. The note pays interest at a fixed rate of 3.375% through January 15, 2027 and subsequently, until maturity, pays interest at a floating rate of three month term SOFR plus 2.03% reset quarterly. Interest is payable on July 15 and January 15 of each year. Such note is due on January 15, 2032. The note is not redeemable within the first five years of issuance, except under certain very limited conditions. After five years, we may redeem the note at our discretion. We incurred and capitalized $534 of costs related to the issuance of the subordinated note in the first quarter of 2022. The amortization associated with the capitalized issuance costs is not significant for the periods presented. Trust preferred securities : We have issued $9,279 in trust preferred securities through a special-purpose trust, New Mexico Banquest Capital Trust I (“NMBCT I”). In addition, we have issued $4,640 in trust preferred securities through a special purpose trust, New Mexico Banquest Capital Trust II (“NMBCT II”, and together with NMBCT I, collectively referred to as “NMBCT Trusts”). Interest is payable quarterly at a rate of three-month LIBOR plus 3.35% (5.60% and 3.50% as of September 30, 2022 and 2021, respectively) for the trust preferred securities issued through NMBCT I and at a rate of three-month LIBOR plus 2.00% (4.96% and 2.15% as of September 30, 2022 and 2021, respectively) for the trust preferred securities issued through NMBCT II. This subordinated debt of $13,919 was originally recorded at a discount of $4,293. The accretion associated with the fair value discount is not significant for the periods presented. The Parent Company fully and unconditionally guarantees the obligations of the NMBCT Trusts on a subordinated basis. The trust preferred securities issued through the NMBCT Trusts are mandatorily redeemable upon the maturity of the debentures on December 19, 2032 and November 23, 2034, respectively, and are optionally redeemable, in part or in whole, by the Parent Company at each quarterly interest payment date. The Parent Company owns all of the outstanding common securities of the NMBCT Trusts, which have an aggregate liquidation valuation amount of $419 and is recorded in prepaid expenses and other assets on the consolidated balance sheet. The NMBCT Trusts are considered variable interest entities. Since the Parent Company is not the primary beneficiary of the NMBCT Trusts, the financial statements of the NMBCT Trusts are not included in our consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share, excluding dilution, is computed by dividing earnings available to common stockholders’ by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock or resulted in the issuance of common stock that could then share in our earnings. The following table sets forth the computation of basic and diluted earnings per share of common stock: For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Net income applicable to common stockholders $ 26,513 $ 8,728 $ 34,612 $ 34,347 Weighted Average Shares Weighted average common shares outstanding 24,877,607 18,321,659 22,685,496 18,321,659 Effect of dilutive securities Stock-based awards 531,208 449,022 596,437 440,838 Convertible notes payable 85,500 — — — Weighted average diluted common shares 25,494,315 18,770,681 23,281,933 18,762,497 Earnings per common share Basic earnings per common share $ 1.07 $ 0.48 $ 1.53 $ 1.87 Effect of dilutive securities Stock-based awards (0.03) (0.02) (0.04) (0.04) Diluted earnings per common share $ 1.04 $ 0.46 $ 1.49 $ 1.83 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2022 | |
AOCI Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following table sets forth the components in accumulated other comprehensive income (loss): For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Securities available-for-sale: Balance, beginning of period $ (40,535) $ 7,142 $ 1,664 $ 9,119 Unrealized (loss) gain (6,613) 349 (62,473) (2,270) Income tax effect 1,506 (86) 15,167 556 Net unrealized (loss) gain (5,107) 263 (47,306) (1,714) Balance, end of period $ (45,642) $ 7,405 $ (45,642) $ 7,405 Fair value hedges of securities available-for-sale: Balance, beginning of period $ 1,098 $ — $ — $ — Unrealized gain 1,821 — 3,211 — Income tax effect (383) — (675) — Net unrealized gain 1,438 — 2,536 — Balance, end of period $ 2,536 $ — $ 2,536 $ — |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Equity Incentive Plans : We have established the FirstSun Capital Bancorp 2017 Equity Incentive Plan (the “2017 Plan”). The 2017 Plan provides for the grant of stock options, stock appreciation rights, restricted stock and other stock awards to its employees, directors and consultants for up to 1,977,292 shares of FirstSun common stock in the aggregate. On October 18, 2021 we established the FirstSun Capital Bancorp 2021 Equity Incentive Plan (the “2021 Plan”). The 2021 Plan provides for the grant of stock options, stock appreciation rights, restricted stock and other stock awards to its employees, directors and consultants for up to 2,476,571 shares of FirstSun common stock in the aggregate. Additionally, we established the FirstSun Capital Bancorp Long-Term Incentive Plan (“LTIP”), which became effective April 1, 2022. The LTIP is intended to qualify as a “top-hat” plan under ERISA that is unfunded and provides benefits only to a select group of management or highly compensated employees of FirstSun or the Bank. The equity component of awards under the LTIP are issued from the 2021 Plan. The following table presents stock options outstanding under the 2017 Plan at September 30, 2022. There were no grants or forfeitures during the nine months ended September 30, 2022: Shares Weighted-Average Exercise Price, per Share Weighted-Average Remaining Contractual Term (years) September 30, 2022 Outstanding, beginning of period 1,412,900 $ 20.19 Exercised (67,976) 19.72 Outstanding, end of period 1,344,924 $ 20.21 5.49 Options vested or expected to vest 1,412,900 $ 20.19 Options exercisable, end of period 1,228,041 $ 20.02 5.29 At September 30, 2022, there was $720 of total unrecognized compensation cost related to non-vested stock options granted under the 2017 Plan. The unrecognized compensation cost at September 30, 2022 is expected to be recognized over the following three years. At September 30, 2022 and December 31, 2021, the intrinsic value of the stock options was $14,237 and $18,042, respectively. In May 2022, we issued 11,344 shares of restricted stock from the 2021 Plan that will fully vest in May 2023. At September 30, 2022, there was $2,423 of total unrecognized compensation cost related to the non-vested restricted stock. In May 2022, we issued performance-based restricted stock under the LTIP that, subject to the achievement of performance conditions, will fully vest in April 2025. At September 30, 2022, we determined it is probable that 81,484 shares will be issued based upon the probability that the performance conditions will be achieved. At September 30, 2022, there was $236 of total unrecognized compensation cost related to the non-vested restricted stock granted under the 2021 Plan. For the three months ended September 30, 2022 and 2021, we recorded total compensation cost from the 2017 and 2021 Plans of $473 and $348, respectively. For the nine months ended September 30, 2022 and 2021, we recorded total compensation cost from the 2017 and 2021 Plans of $1,093 and $1,501, respectively. In conjunction with the Pioneer Merger, we assumed certain options that had been granted under Pioneer’s option plans. All assumed options were fully vested and exercisable. No further options will be granted under the Pioneer plans. The following table presents options assumed in the Pioneer Merger and the activity from Merger date through September 30, 2022: Shares Weighted-Average Exercise Price, per Share Weighted-Average Remaining Contractual Term (years) September 30, 2022 Outstanding, beginning of period — $ — Options assumed from Pioneer Bancshares, Inc. 431,645 23.32 Exercised (255,453) 23.44 Outstanding, vested, and exercisable, end of period 176,192 $ 23.12 5.61 At September 30, 2022, the intrinsic value of the stock options was $1,346. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes in interim periods requires us to make a best estimate of the effective tax rate expected to be applicable for the full year, adjusted for any discrete items for the applicable period. This estimated effective tax rate is then applied to interim consolidated pre-tax operating income to determine the interim provision for income taxes. The provision for income tax is summarized as follows: For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Provision for income taxes $ 7,628 $ 1,851 $ 8,559 $ 7,159 Effective tax provision rate 22.3 % 17.5 % 19.8 % 17.2 % We do not believe that we have any material uncertain tax positions, and do not expect any material changes during the next twelve months. |
Regulatory Capital Matters
Regulatory Capital Matters | 9 Months Ended |
Sep. 30, 2022 | |
Regulatory Capital Requirements under Banking Regulations [Abstract] | |
Regulatory Capital Matters | Regulatory Capital Matters 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 the Basel III rules, the Parent Company and the Bank must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The fully phased in capital conservation buffer is 2.50% for all periods presented. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. As of September 30, 2022, both the Parent Company and the Bank met all capital adequacy requirements to which they were subject. Prompt corrective action regulations provide five classifications: well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. As of September 30, 2022 and December 31, 2021, the most recent regulatory notifications categorized the Bank as well-capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank’s category. Actual and required capital amounts for the Parent Company are as follows as of: Actual For Capital To be Well- Amount Ratio Amount Ratio Amount Ratio September 30, 2022 Total risk-based capital to risk-weighted assets: $ 791,066 12.06 % $ 524,601 8.00 % N/A N/A Tier 1 risk-based capital to risk-weighted assets: $ 655,345 9.99 % $ 393,451 6.00 % N/A N/A Common Equity Tier 1 (CET 1) to risk-weighted assets: $ 655,345 9.99 % $ 295,088 4.50 % N/A N/A Tier 1 leverage capital to average assets: $ 655,345 9.55 % $ 274,564 4.00 % N/A N/A December 31, 2021 Total risk-based capital to risk-weighted assets: $ 563,112 11.76 % $ 383,213 8.00 % N/A N/A Tier 1 risk-based capital to risk-weighted assets: $ 464,761 9.70 % $ 287,410 6.00 % N/A N/A Common Equity Tier 1 (CET 1) to risk-weighted assets: $ 464,761 9.70 % $ 215,557 4.50 % N/A N/A Tier 1 leverage capital to average assets: $ 464,761 8.24 % $ 225,736 4.00 % N/A N/A Actual and required capital amounts for the Bank are as follows as of: Actual For Capital To be Well- Amount Ratio Amount Ratio Amount Ratio September 30, 2022 Total risk-based capital to risk-weighted assets: $ 776,038 11.86 % $ 523,395 8.00 % $ 654,243 10.00 % Tier 1 risk-based capital to risk-weighted assets: $ 715,097 10.93 % $ 392,546 6.00 % $ 523,395 8.00 % Common Equity Tier 1 (CET 1) to risk-weighted assets: $ 715,097 10.93 % $ 294,409 4.50 % $ 425,258 6.50 % Tier 1 leverage capital to average assets: $ 715,097 10.42 % $ 274,489 4.00 % $ 343,112 5.00 % December 31, 2021 Total risk-based capital to risk-weighted assets: $ 571,463 11.96 % $ 382,106 8.00 % $ 477,633 10.00 % Tier 1 risk-based capital to risk-weighted assets: $ 523,128 10.95 % $ 286,580 6.00 % $ 382,106 8.00 % Common Equity Tier 1 (CET 1) to risk-weighted assets: $ 523,128 10.95 % $ 214,935 4.50 % $ 310,462 6.50 % Tier 1 leverage capital to average assets: $ 523,128 9.27 % $ 225,650 4.00 % $ 282,062 5.00 % |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We utilize fair value measurements to record or disclose the fair value on certain assets and liabilities. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The determination of fair values of financial instruments often requires the use of estimates. In cases where quoted market values in an active market are not available, we use present value techniques and other valuation methods to estimate the fair values of our financial instruments. These valuation models rely on market-based parameters when available, such as interest rate yield curves or credit spreads. Unobservable inputs may be based on management’s judgement assumptions and estimates related to credit quality, our future earnings, interest rates and other relevant inputs. These valuation methods require considerable judgement and the resulting estimates of fair value can be significantly affected by the assumptions made and the methods used. ASC Topic 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The hierarchy is based on the transparency of the inputs used in the valuation process with the highest priority given to quoted prices available in active markets and the lowest priority to unobservable inputs where no active market exists. The three levels of inputs that may be used to measure fair value are as follows: Level 1 : Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 : Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. Level 3 : Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own beliefs about the assumptions that market participants would use in pricing the assets or liabilities. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input within the valuation hierarchy that is significant to the overall fair value measurement. Transfers between levels of the fair value hierarchy are recognized at the end of the reporting period. The following table sets forth our assets and liabilities measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Quoted prices Significant Significant Total As of September 30, 2022 Available-for-sale securities $ 56,618 $ 494,547 $ — $ 551,165 Loans held-for-sale — 67,535 — 67,535 Mortgage servicing rights — — 73,850 73,850 Derivative financial instruments - assets — 48,371 — 48,371 Derivative financial instruments - liabilities — (28,271) — (28,271) Total $ 56,618 $ 582,182 $ 73,850 $ 712,650 As of December 31, 2021 Available-for-sale securities $ 35,185 $ 537,316 $ — $ 572,501 Loans held-for-sale — 103,939 — 103,939 Mortgage servicing rights — — 47,392 47,392 Derivative financial instruments - assets — 10,815 — 10,815 Derivative financial instruments - liabilities — (14,525) — (14,525) Total $ 35,185 $ 637,545 $ 47,392 $ 720,122 For further details on our level 3 inputs related to MSRs, see Note 5 - Mortgage Servicing Rights . The following table presents a reconciliation for our Level 3 assets measured at fair value on a recurring basis: For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Balance, beginning of period $ 66,047 $ 40,844 $ 47,392 $ 29,144 Total gains (losses) included in earnings 4,314 (2,176) 14,777 (3,706) Purchases, issuances, sales and settlements: Issuances 3,489 5,303 11,681 18,533 Balance, end of period $ 73,850 $ 43,971 $ 73,850 $ 43,971 Certain financial assets and financial liabilities are regularly measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The following table sets forth our assets and liabilities that were measured at fair value on a non-recurring basis as of: Level 3 September 30, December 31, Impaired loans: Commercial $ 2,088 $ 961 Commercial real estate 608 63 Residential real estate — 632 Consumer 3 — Total impaired loans $ 2,699 $ 1,656 Other real estate owned and foreclosed assets, net: Commercial real estate $ 5,391 $ 5,067 Residential real estate — 420 Total other real estate owned and foreclosed assets, net: $ 5,391 $ 5,487 The fair value of the financial assets in the table above utilize the market approach valuation technique, with discount adjustments for differences between comparable sales. Fair value of financial instruments not carried at fair value: The carrying amounts and estimated fair values of financial instruments not carried at fair value are as follows as of: Estimated Fair Value Carrying Total Level 1 Level 2 Level 3 September 30, 2022 Assets: Cash and cash equivalents $ 325,039 $ 325,039 $ 325,039 $ — $ — Securities held-to-maturity 39,148 34,096 — 34,096 — Loans (excluding impaired loans) 5,515,103 5,375,203 — — 5,375,203 Restricted equity securities 34,877 34,877 — 34,877 — Accrued interest receivable 24,964 24,964 — 2,415 22,549 Liabilities: Deposits (excluding demand deposits) $ 3,654,121 $ 3,614,346 $ — $ 3,614,346 $ — Securities sold under agreements to repurchase 51,256 51,256 — 51,256 — FHLB advances 310,872 310,872 — 310,872 — Convertible notes payable, net 5,317 5,340 — 5,340 — Subordinated debt, net 74,780 83,795 — 83,795 — Accrued interest payable 3,073 3,073 — 3,073 — December 31, 2021 Assets: Cash and cash equivalents $ 668,462 $ 668,462 $ 668,462 $ — $ — Securities held-to-maturity 18,007 18,599 — 18,599 — Loans (excluding impaired loans) 4,003,712 3,949,719 — — 3,949,719 Restricted equity securities 16,239 16,239 — 16,239 — Accrued interest receivable 14,761 14,761 — 1,131 13,630 Liabilities: Deposits (excluding demand deposits) $ 3,101,123 $ 3,106,464 $ — $ 3,106,464 $ — Securities sold under agreements to repurchase 92,093 92,093 — 92,093 — FHLB advances 40,000 41,514 — 41,514 — Convertible notes payable, net 19,442 21,564 — 21,564 — Subordinated debt, net 50,016 52,264 — 52,264 — Accrued interest payable 2,369 2,369 — 2,369 — |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment InformationOur operations are conducted through two operating segments: Banking and Mortgage Operations. Corporate represents costs not allocated to the operating segments. Operating segments are defined as components of an enterprise that engage in business activity from which revenues are earned and expenses are incurred for which discrete financial information is available that is evaluated regularly by executive management in deciding how to allocate resources and in assessing performance. Operating segments have been determined based on the products and services offered and reflect the manner in which financial information is currently evaluated by management. Each segment operates under the same banking charter, but is reported on a segmented basis for this report. Each of the operating segments is complementary to each other and because of the interrelationship of the segments, the information presented is not indicative of how the segments would perform if they operated as independent entities. The Banking segment originates loans and provides deposits and fee based services to consumer, business, and mortgage lending customers. Products offered include a full range of commercial and consumer banking and financial services. The interest income on loans held-for-investment is recognized in the Banking segment, excluding newly originated residential first mortgages within the Mortgage Operations segment. The Mortgage Operations segment originates, sells, services, and manages market risk from changes in interest rates on one-to-four family residential mortgage loans to sell or hold on our balance sheet. Loans originated-to-sell comprise the majority of the lending activity. The Mortgage Operations segment recognizes interest income on loans that are held-for-sale and newly originated residential mortgages held-for-investment, the gains from one to four family residential mortgage sales, and revenue for servicing loans and other ancillary fees following a sales transaction. Revenue from servicing activities is earned on a contractual fee basis. The Mortgage Operations segment services loans for the held-for-investment portfolio, for which it earns revenue via an intercompany service fee allocation which appears as a cost to Banking in mortgage fees. Forward traded loan purchases and sales settlements as well as mortgage servicing rights and related fair value adjustments are reported in this segment. Corporate represents miscellaneous other expenses of a corporate nature as well as revenue and expenses not directly assigned or allocated to the Banking or Mortgage Operations segments. The majority of executive management’s time is spent managing operating segments; related costs have been allocated between the operating segments and Corporate. Revenues are comprised of net interest income before the provision (benefit) for loan losses and noninterest income. Noninterest expenses are allocated to each operating segment. Provision for loan losses is primarily allocated to the Banking segment. Allocation methodologies may be subject to periodic adjustment as management systems evolve and/or the business or product lines within the segments change. Significant segment totals are reconciled to the financial statements as follows for the three months ended September 30, Banking Mortgage Operations Corporate Total Segments 2022 Summary of Operations Net interest income $ 68,159 $ 1,492 $ (1,165) $ 68,486 Provision for loan losses 3,223 527 — 3,750 Noninterest income: Service charges on deposit accounts 4,807 — — 4,807 Credit and debit card fees 3,103 — — 3,103 Trust and investment advisory fees 1,552 — — 1,552 Income from mortgage banking services, net (701) 14,486 — 13,785 Other noninterest income 1,706 — — 1,706 Total noninterest income 10,467 14,486 — 24,953 Noninterest expense: Salary and employee benefits 23,210 8,922 376 32,508 Occupancy and equipment 7,190 988 38 8,216 Other noninterest expenses 11,146 3,314 364 14,824 Total noninterest expense 41,546 13,224 778 55,548 Income (loss) before income taxes $ 33,857 $ 2,227 $ (1,943) $ 34,141 Other Information Depreciation expense $ 1,839 $ 81 $ — $ 1,920 Identifiable assets $ 6,315,984 $ 693,473 $ 43,460 $ 7,052,917 Banking Mortgage Operations Corporate Total Segments 2021 Summary of Operations Net interest income $ 39,297 $ 1,810 $ (1,142) $ 39,965 Provision for (benefit from) loan losses 3,543 (43) — 3,500 Noninterest income: Service charges on deposit accounts 3,471 — — 3,471 Credit and debit card fees 2,472 — — 2,472 Trust and investment advisory fees 1,974 — — 1,974 Income from mortgage banking services, net (406) 20,557 — 20,151 Other noninterest income 616 — — 616 Total noninterest income 8,127 20,557 — 28,684 Noninterest expense: Salary and employee benefits 22,604 13,166 291 36,061 Occupancy 5,854 787 2 6,643 Other noninterest expenses 8,361 2,915 590 11,866 Total noninterest expense 36,819 16,868 883 54,570 Income (loss) before income taxes $ 7,062 $ 5,542 $ (2,025) $ 10,579 Other Information Depreciation expense $ 1,516 $ 21 $ — $ 1,537 Identifiable assets $ 5,070,287 $ 578,475 $ 34,323 $ 5,683,085 Significant segment totals are reconciled to the financial statements as follows for the nine months ended September 30,: Banking Mortgage Operations Corporate Total Segments 2022 Summary of Operations Net interest income $ 167,606 $ 5,193 $ (4,443) $ 168,356 Provision for loan losses 9,853 2,597 — 12,450 Noninterest income: Service charges on deposit accounts 13,111 — — 13,111 Credit and debit card fees 8,508 — — 8,508 Trust and investment advisory fees 5,408 — — 5,408 Income from mortgage banking services, net (1,972) 41,989 — 40,017 Other noninterest income 3,913 (9) — 3,904 Total noninterest income 28,968 41,980 — 70,948 Noninterest expense: Salary and employee benefits 69,880 30,854 1,247 101,981 Occupancy and equipment 19,937 2,826 39 22,802 Other noninterest expenses 46,203 10,439 2,258 58,900 Total noninterest expense 136,020 44,119 3,544 183,683 Income (loss) before income taxes $ 50,701 $ 457 $ (7,987) $ 43,171 Other Information Depreciation expense $ 5,011 $ 294 $ — $ 5,305 Identifiable assets $ 6,315,984 $ 693,473 $ 43,460 $ 7,052,917 Banking Mortgage Operations Corporate Total Segments 2021 Summary of Operations Net interest income $ 112,517 $ 5,674 $ (3,409) $ 114,782 Provision for (benefit from) loan losses 2,124 (374) — 1,750 Noninterest income: Service charges on deposit accounts 8,659 — — 8,659 Credit and debit card fees 7,140 — — 7,140 Trust and investment advisory fees 5,871 — — 5,871 Income from mortgage banking services, net (1,516) 69,660 — 68,144 Other noninterest income 5,041 (7) — 5,034 Total noninterest income 25,195 69,653 — 94,848 Noninterest expense: Salary and employee benefits 70,111 42,238 780 113,129 Occupancy 17,535 2,329 3 19,867 Other noninterest expenses 22,072 9,237 2,069 33,378 Total noninterest expense 109,718 53,804 2,852 166,374 Income (loss) before income taxes $ 25,870 $ 21,897 $ (6,261) $ 41,506 Other Information Depreciation expense $ 4,428 $ 288 $ — $ 4,716 Identifiable assets $ 5,070,287 $ 578,475 $ 34,323 $ 5,683,085 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments : We are a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include loan commitments, standby letters of credit, and documentary letters of credit and involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the financial statements. Our exposure to credit loss in the event of nonperformance by the other party of these loan commitments and standby letters of credit is represented by the contractual amount of those instruments. We use the same credit policies in making commitments and conditional obligations as we do for on-balance sheet financial instruments. Operating leases : We lease certain facilities and equipment under non-cancelable operating leases. Operating lease amounts exclude renewal option periods, property taxes, insurance, and maintenance expenses on leased properties. Our facility leases typically provide for rental adjustments for increases in base rent (up to specific limits), property taxes, insurance, and general property maintenance that would be recorded in rent expense. Rent expense was $2,063 and $1,641 for the three months ended September 30, 2022 and 2021, respectively. Rent expense was $5,839 and $4,955 for the nine months ended September 30, 2022 and 2021, respectively. Undistributed portion of committed loans and unused lines of credit : Loan commitments are agreements to lend to a customer as long as there is no customer violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require a payment of a fee. As of September 30, 2022 and December 31, 2021, commitments included the funding of fixed-rate loans totaling $215,851 and $144,701 and variable-rate loans totaling $1,676,927 and $987,584, respectively. The fixed-rate loan commitments have interest rates ranging from 1.00% to 18.00% at September 30, 2022 and 0.85% to 18.00% at December 31, 2021, and maturities ranging from 1 month to 15 years at September 30, 2022 and from 1 month to 26 years at December 31, 2021. Standby letters of credit : Standby letters of credit are conditional commitments to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Since many of the loan commitments and letters of credit expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. We evaluate each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on our credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, owner-occupied real estate, and/or income-producing commercial properties. As of September 30, 2022 and December 31, 2021, our standby letters of credit commitment totaled $17,950 and $11,729, respectively. MPF Master Commitments : The Bank has previously executed MPF Master Commitments (Commitments) with the FHLB to deliver mortgage loans and to guarantee the payment of any realized losses that exceed the FHLB’s first loss account for mortgages delivered under the Commitments. The Bank receives credit enhancement fees from the FHLB for providing this guarantee and continuing to manage the credit risk of the MPF Program mortgage loans. We entered into a new agreement in the third quarter of 2022. As of September 30, 2022 and December 31, 2021, the Bank considered the amount of any of its liability for the present value of the credit enhancement fees less any expected losses in the mortgages delivered under the Commitments to be immaterial, and had not recorded a liability and offsetting receivable. As of September 30, 2022 and December 31, 2021, the maximum potential amount of future payments that the Bank would have been required to make under the Commitments was $12,884 and $12,870, respectively. Under the Commitments, the Bank agrees to service the loans and therefore, is responsible for any necessary foreclosure proceedings. Any future recoveries on any losses would not be paid by the FHLB under the Commitments. The Bank has not experienced any material losses under these guarantees. Contingencies : We generally sell loans to investors without recourse; therefore, the investors have assumed the risk of loss or default by the borrower. However, we are usually required by these investors to make certain standard representations and warranties relating to credit information, loan documentation, and collateral. To the extent that we do not comply with such representations, we may be required to repurchase the loans or indemnify these investors for any losses from borrower defaults. We establish reserves for potential losses related to these representations and warranties if deemed appropriate and such reserves would be recorded within accrued expenses and other liabilities. In assessing the adequacy of the reserve, we evaluate various factors including actual write-offs during the period, historical loss experience, known delinquent and other problem loans, and economic trends and conditions in the industry. From time to time, we are a defendant in various claims, legal actions, and complaints arising in the ordinary course of business. We periodically review all outstanding pending or threatened legal proceedings and determine if such matters will have an adverse effect on our business, financial condition, results of operations or cash flows. Overdraft Fee Litigation : On September 10, 2021, Karen McCollam filed a putative class action amended complaint against the Bank in the United States District Court for the District of Colorado. The amended complaint alleged that the Bank improperly charged overdraft fees where a transaction was initially authorized on sufficient funds but later settled negative due to intervening transactions. The complaint asserted a claim for breach of contract, which incorporated the implied duty of good faith and fair dealing, and a claim for violations of the Colorado Consumer Protection Act. Plaintiff sought to represent a proposed class of all the Bank’s checking account customers who were allegedly charged overdraft fees on transactions that did not overdraw their checking account. Plaintiff sought unspecified restitution, actual and statutory damages, costs, attorneys’ fees, pre-judgment interest, and other relief as the Court deemed proper for herself and the putative class. On September 24, 2021, the Bank filed a motion to dismiss the amended complaint. The Bank’s motion to dismiss was granted on April 15, 2022. Plaintiff filed a notice of appeal on May 16, 2022. The parties thereafter reached agreement on a confidential settlement that will result in the case being dismissed with prejudice. On September 13, 2021, Samantha Besser filed a putative class action amended complaint against the Bank in the United States District Court for the District of Colorado. The amended complaint alleges that the Bank improperly charged multiple insufficient funds or overdraft fees when a merchant resubmits a rejected payment request. The complaint asserts claims for breach of contract, which incorporates the implied duty of good faith and fair dealing. Plaintiff seeks to represent a proposed class of all the Bank’s checking account customers who were charged multiple insufficient funds or overdraft fees on resubmitted payment requests. Plaintiff seeks unspecified restitution, actual and statutory damages, costs, attorneys’ fees, pre-judgment interest, and other relief as the Court deems proper for herself and the purported class. On September 27, 2021, the Bank filed a motion to dismiss the amended complaint. The motion to dismiss has been fully pled and is before the Court for decision. The Bank believes that the lawsuit is without merit, and it intends to vigorously defend against all claims asserted. Wire Transfer Litigation : On November 5, 2021, urban-gro, Inc. (“UGI”) filed a complaint against the Bank in the Boulder County, Colorado District Court. The complaint alleges that the Bank failed to follow contractual, internal, and industry-standard procedures with respect to six purportedly fraudulent and unauthorized wire transfers, totaling approximately $5.1 million, from UGI’s deposit account at the Bank to domestic third-party beneficiaries (“Transactions”). UGI seeks actual damages, statutory damages for civil theft, costs, attorneys’ fees, pre- and post-judgment interest, and other relief as the Court deems proper. On November 18, 2021, the Bank filed responsive pleadings (“Answer”) setting forth its position that: 1) the Transactions were duly authorized by UGI; 2) the Bank upheld the contractual security procedures with UGI for wire transfers, and followed its own industry-standard internal processes and procedures in carrying out those security procedures; 3) UGI is solely liable for any fraud that might have been perpetrated due to an e-mail account compromise of one or more of its employees; 4) UGI breached its contractual obligations with the Bank by failing to timely discover and report any impropriety as to the Transactions to the Bank; and 5) the Bank, therefore, is not liable for the unrecovered balance. The Bank believes that UGI’s claims are without merit and it intends to vigorously defend against all claims asserted. At this time, the Bank is unable to reasonably estimate the outcome of this litigation. We establish reserves for contingencies, including legal proceedings, when potential losses become probable and can be reasonably estimated. While the ultimate resolution of any legal proceedings, including the matters described above, cannot be determined at this time, based on information presently available, and after consultation with legal counsel, management believes that the ultimate outcome in these above legal proceedings, either individually or in the aggregate, will not have a material adverse effect on our financial statements. It is possible, however, that future developments could result in an unfavorable outcome for or resolution of any of these proceedings, which may be material to our results of operations for a given fiscal period. Pandemic: The impact of the coronavirus (COVID-19) pandemic is fluid and continues to evolve, adversely affecting many of our clients. While vaccine availability and uptake has increased, the longer-term macro-economic effects on global supply chains, inflation, labor shortages and wage increases continue to impact many industries. The ultimate extent of the impact of the COVID-19 pandemic on our business, financial condition and results of operations is currently uncertain and will |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Nature of Operations | The consolidated financial statements include the accounts of FirstSun Capital Bancorp (“FirstSun” or “Parent Company” and its wholly-owned subsidiaries, Sunflower Bank, N.A. (the “Bank”) and Logia Portfolio Management, LLC, and have been prepared using U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial statements. All significant intercompany balances and transactions have been eliminated in consolidation. These entities are collectively referred to as “our”, “us”, “we”, or “the Company”. These consolidated financial statements in this Quarterly Report on Form 10-Q do not include all of the information and footnotes required by U.S. GAAP for a full year presentation and certain disclosures have been condensed or omitted in accordance with rules and regulations of the Securities and Exchange Commission (“SEC”). These interim financial statements are unaudited, and include, in our opinion, all adjustments necessary for a fair statement of the results for the periods indicated, which are not necessarily indicative of results which may be expected for the full year. These unaudited consolidated financial statements and notes should be read in conjunction with FirstSun’s audited consolidated financial statements and footnotes thereto for the year ended December 31, 2021, included in our Annual Report on Form 10-K filed with the SEC on March 25, 2022 (the “2021 Form 10-K”). Certain prior period amounts have been reclassified to conform to the current period presentation. Reclassifications had no effect on our net income or stockholders’ equity. |
Use of Estimates | The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates are based on historical experience and on various assumptions about the future that are believed to be reasonable based on all available information. Our reported financial position or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies. In the event that estimates or assumptions prove to differ from actual results, adjustments are made in subsequent periods to reflect more current information. |
Risks and Uncertainties | In the normal course of business, companies in the banking and mortgage industries encounter certain economic and regulatory risks. Economic risks include prepayment risk, market risk, interest rate risk, and credit risk. We are subject to interest rate risk to the extent that in a rising interest rate environment we may experience a decrease in loan production, as well as decreases in the value of mortgage loans held-for-sale and in commitments to originate loans, which may adversely impact our earnings. Credit risk is the risk of default that may result from the borrowers’ inability or unwillingness to make contractually required payments.We generally sell loans to investors without recourse; therefore, the investors have assumed the risk of loss or default by the borrower. However, we are usually required by these investors to make certain standard representations and warranties relating to credit information, loan documentation, and collateral. To the extent that we do not comply with such representations, or there are early payment defaults, we may be required to repurchase the loans or indemnify these investors for any losses from borrower defaults. In addition, if loans pay off within a specified time frame, we may be required to refund a portion of the sales proceeds to the investors. We established reserves for potential losses related to these representations and warranties which are recorded within accrued expenses and other liabilities. In assessing the adequacy of the reserves, we evaluate various factors including actual write-offs during the period, historical loss experience, known delinquent and other problem loans, and economic trends and conditions in the industry. Further information is presented in Note 17 - Commitments and Contingencies . |
Adoption of New Accounting Standards | As an “emerging growth company” under Section 107 of the JOBS Act, we can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. Therefore, we can delay the adoption of certain accounting standards until those standards would otherwise apply to non-public business entities. We intend to take advantage of the benefits of this extended transition period for an “emerging growth company” for as long as it is available to us. For standards that we have delayed adoption, we may lack comparability to other companies who have adopted such standards. Other than the adoption of ASU 2016-02, Leases (Topic 842), there have been no material developments with respect to newly issued standards from those disclosed in our 2021 Form 10-K. We are currently executing our implementation plan for ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) under the direction of our Chief Financial Officer and our Chief Credit Officer. As of September 30, 2022, we have performed a preliminary parallel run and completed an external model validation of our modeling framework. A separate model validation related to our probability of default and loss given default internal loan risk rating framework is nearing completion. We continue to design and implement our controls over the new allowance model framework. Based upon our preliminary parallel run we currently expect the adoption of ASU 2016-13 will result in an increase in our allowance for loan losses and our reserves for unfunded commitments. This increase is a result of changing from an “incurred loss” model, which encompasses allowances for current known and inherent losses within the portfolio, to an “expected loss” model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. Furthermore, ASU 2016-13 will necessitate that we establish an allowance for expected credit losses for certain debt securities and other financial assets; however, we do not expect these allowances to be significant. Additionally, the adoption of ASU 2016-13 is not expected to have a significant impact on our regulatory capital ratios. The ultimate impact of adoption on January 1, 2023 will be significantly influenced by the composition, characteristics and quality of our loan and securities portfolios as well as the prevailing economic conditions and forecasts as of that date, notwithstanding any further refinements to our expected credit loss models. |
Merger with Pioneer Bancshare_2
Merger with Pioneer Bancshares, Inc. (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Estimated Fair Values of the Assets Acquired and Liabilities Assumed in this Transaction | Estimated fair values of the assets acquired and liabilities assumed in this transaction are as follows: April 1, Cash and cash equivalents $ 449,278 Investment securities 157,859 Loans held-for-sale 2,923 Loans 811,300 Premises and equipment 39,935 Bank-owned life insurance 21,382 Restricted equity securities 9,320 Core deposits and other intangible assets 11,771 Accrued interest receivable 3,947 Deferred tax assets 19,752 Prepaid expenses and other assets 7,317 Total assets acquired 1,534,784 Deposits 1,192,081 Federal Home Loan Bank advances 159,924 Accrued interest payable 407 Accrued expenses and other liabilities 1,975 Total liabilities assumed 1,354,387 Fair value of net assets acquired 180,397 Purchase price 240,830 Goodwill $ 60,433 Acquired Loans Contractual Principal Balance Commercial $ 98,351 $ 98,752 Commercial real estate 509,173 516,341 Residential real estate 173,094 174,763 Consumer 30,682 31,982 Total fair value $ 811,300 $ 821,838 |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities | The amortized cost, gross unrealized gains and losses, and fair values of available-for-sale and held-to-maturity debt securities by type follows as of: Amortized Gross Gross Estimated September 30, 2022 Available-for-sale: U.S. treasury $ 62,021 $ — $ (5,403) $ 56,618 U.S. agency 3,242 — (41) 3,201 Obligations of states and political subdivisions 29,860 — (4,408) 25,452 Mortgage backed - residential 134,216 8 (15,711) 118,513 Collateralized mortgage obligations 232,970 — (18,940) 214,030 Mortgage backed - commercial 132,358 — (13,766) 118,592 Other debt 16,769 — (2,010) 14,759 Total available-for-sale $ 611,436 $ 8 $ (60,279) $ 551,165 Held-to-maturity: Obligations of states and political subdivisions $ 25,002 $ — $ (4,134) $ 20,868 Mortgage backed - residential 9,091 5 (654) 8,442 Collateralized mortgage obligations 5,055 — (269) 4,786 Total held-to-maturity $ 39,148 $ 5 $ (5,057) $ 34,096 December 31, 2021 Available-for-sale: U.S. treasury $ 35,400 $ — $ (215) $ 35,185 U.S. agency 6,019 — (100) 5,919 Obligations of states and political subdivisions 3,979 — (190) 3,789 Mortgage backed - residential 138,297 2,018 (1,638) 138,677 Collateralized mortgage obligations 236,282 1,441 (1,939) 235,784 Mortgage backed - commercial 150,322 3,424 (599) 153,147 Total available-for-sale $ 570,299 $ 6,883 $ (4,681) $ 572,501 Held-to-maturity: Obligations of states and political subdivisions $ 716 $ 25 $ — $ 741 Mortgage backed - residential 10,750 390 — 11,140 Collateralized mortgage obligations 6,541 177 — 6,718 Total held-to-maturity $ 18,007 $ 592 $ — $ 18,599 |
Schedule of Held-to-maturity Securities | The amortized cost, gross unrealized gains and losses, and fair values of available-for-sale and held-to-maturity debt securities by type follows as of: Amortized Gross Gross Estimated September 30, 2022 Available-for-sale: U.S. treasury $ 62,021 $ — $ (5,403) $ 56,618 U.S. agency 3,242 — (41) 3,201 Obligations of states and political subdivisions 29,860 — (4,408) 25,452 Mortgage backed - residential 134,216 8 (15,711) 118,513 Collateralized mortgage obligations 232,970 — (18,940) 214,030 Mortgage backed - commercial 132,358 — (13,766) 118,592 Other debt 16,769 — (2,010) 14,759 Total available-for-sale $ 611,436 $ 8 $ (60,279) $ 551,165 Held-to-maturity: Obligations of states and political subdivisions $ 25,002 $ — $ (4,134) $ 20,868 Mortgage backed - residential 9,091 5 (654) 8,442 Collateralized mortgage obligations 5,055 — (269) 4,786 Total held-to-maturity $ 39,148 $ 5 $ (5,057) $ 34,096 December 31, 2021 Available-for-sale: U.S. treasury $ 35,400 $ — $ (215) $ 35,185 U.S. agency 6,019 — (100) 5,919 Obligations of states and political subdivisions 3,979 — (190) 3,789 Mortgage backed - residential 138,297 2,018 (1,638) 138,677 Collateralized mortgage obligations 236,282 1,441 (1,939) 235,784 Mortgage backed - commercial 150,322 3,424 (599) 153,147 Total available-for-sale $ 570,299 $ 6,883 $ (4,681) $ 572,501 Held-to-maturity: Obligations of states and political subdivisions $ 716 $ 25 $ — $ 741 Mortgage backed - residential 10,750 390 — 11,140 Collateralized mortgage obligations 6,541 177 — 6,718 Total held-to-maturity $ 18,007 $ 592 $ — $ 18,599 |
Schedule of Available-for-sale Securities with Unrealized Losses | Certain debt securities that have gross unrealized losses and have been in a continuous unrealized loss position for more than one year follows as of: Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Number September 30, 2022 Available-for-sale: U.S. treasury $ 25,690 $ (975) $ 30,928 $ (4,428) $ 56,618 $ (5,403) 10 U.S. agency — — 3,201 (41) 3,201 (41) 7 Obligations of states and political subdivisions 22,626 (3,346) 2,357 (1,062) 24,983 (4,408) 18 Mortgage backed - residential 68,299 (5,512) 49,723 (10,199) 118,022 (15,711) 86 Collateralized mortgage obligations 148,461 (6,846) 65,569 (12,094) 214,030 (18,940) 67 Mortgage backed - commercial 88,997 (10,162) 29,595 (3,604) 118,592 (13,766) 22 Other debt 14,759 (2,010) — — 14,759 (2,010) 9 Total available-for-sale $ 368,832 $ (28,851) $ 181,373 $ (31,428) $ 550,205 $ (60,279) 219 Held-to-maturity: Obligations of states and political subdivisions $ 20,869 $ (4,134) $ — $ — $ 20,869 $ (4,134) 8 Mortgage backed - residential 8,217 (654) — — 8,217 (654) 10 Collateralized mortgage obligations 4,786 (269) — — 4,786 (269) 5 Total held-to-maturity $ 33,872 $ (5,057) $ — $ — $ 33,872 $ (5,057) 23 Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Number December 31, 2021 Available-for-sale: U.S. treasury $ 35,185 $ (215) $ — $ — $ 35,185 $ (215) 4 U.S. agency — — 5,919 (100) 5,919 (100) 7 Obligations of states and political subdivisions 3,232 (190) — — 3,232 (190) 2 Mortgage backed - residential 51,616 (530) 25,246 (1,108) 76,862 (1,638) 17 Collateralized mortgage obligations 115,877 (1,938) 193 (1) 116,070 (1,939) 16 Mortgage backed - commercial 32,872 (581) 24,170 (18) 57,042 (599) 5 Total available-for-sale $ 238,782 $ (3,454) $ 55,528 $ (1,227) $ 294,310 $ (4,681) 51 |
Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity | The amortized cost and fair value of our debt securities by contractual maturity as of September 30, 2022 are summarized in the following table. Maturities are based on the final contractual payment dates and do not reflect the impact of prepayments or earlier redemptions that may occur. Amortized Estimated Available-for-sale: Due within 1 year $ 3,533 $ 3,444 Due after 1 year through 5 years 45,272 43,573 Due after 5 years through 10 years 174,641 155,456 Due after 10 years 387,990 348,692 Total available-for-sale $ 611,436 $ 551,165 Held-to-maturity: Due after 1 year through 5 years $ 1,042 $ 997 Due after 5 years through 10 years 668 629 Due after 10 years 37,438 32,470 Total held-to-maturity $ 39,148 $ 34,096 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Schedule of Loans Held for Investment | Loans held-for-investment consist of the following as of: September 30, December 31, Commercial $ 2,742,625 $ 2,414,787 Commercial real estate 1,781,791 1,176,973 Residential real estate 1,003,699 437,116 Consumer 44,358 17,766 Total loans 5,572,473 4,046,642 Deferred costs, fees, premiums, and discounts, net (15,787) (9,519) Allowance for loan losses (59,678) (47,547) Total loans, net $ 5,497,008 $ 3,989,576 |
Schedule of Allowance for Loan Losses by Portfolio Type | The following table presents the activity in the allowance for loan losses by portfolio type for the three months ended September 30,: Commercial Commercial Residential Consumer Total 2022 Allowance for loan losses: Balance, beginning of period $ 34,987 $ 18,053 $ 2,719 $ 318 $ 56,077 Provision for loan losses 2,286 1,163 269 32 3,750 Loans charged off (223) — (24) (53) (300) Recoveries 112 2 1 36 151 Balance, end of period $ 37,162 $ 19,218 $ 2,965 $ 333 $ 59,678 2021 Allowance for loan losses: Balance, beginning of period $ 28,173 $ 13,149 $ 1,305 $ 351 $ 42,978 Provision for (benefit from) loan losses 3,030 560 (31) (59) 3,500 Loans charged off — — — (66) (66) Recoveries 1,440 — 3 13 1,456 Balance, end of period $ 32,643 $ 13,709 $ 1,277 $ 239 $ 47,868 The following table presents the activity in the allowance for loan losses by portfolio type for the nine months ended September 30,: Commercial Commercial Residential Consumer Total 2022 Allowance for loan losses: Balance, beginning of period $ 33,277 $ 12,899 $ 1,136 $ 235 $ 47,547 Provision for loan losses 4,223 6,316 1,755 156 12,450 Loans charged off (2,173) — (122) (117) (2,412) Recoveries 1,835 3 196 59 2,093 Balance, end of period $ 37,162 $ 19,218 $ 2,965 $ 333 $ 59,678 2021 Allowance for loan losses: Balance, beginning of period $ 32,009 $ 13,863 $ 1,606 $ 288 $ 47,766 Provision for (benefit from) loan losses 2,210 (163) (350) 53 1,750 Loans charged off (3,102) — (2) (138) (3,242) Recoveries 1,526 9 23 36 1,594 Balance, end of period $ 32,643 $ 13,709 $ 1,277 $ 239 $ 47,868 The following table presents the balance in the allowance for loan losses and the recorded investment by portfolio type based on impairment method as of: Commercial Commercial Residential Consumer Total September 30, 2022 Loans: Individually evaluated for impairment $ 16,560 $ 11,108 $ 14,132 $ 87 $ 41,887 Collectively evaluated for impairment 2,726,065 1,770,683 989,567 44,271 5,530,586 Total loans $ 2,742,625 $ 1,781,791 $ 1,003,699 $ 44,358 $ 5,572,473 Allowance for loan losses: Individually evaluated for impairment $ 1,034 $ 188 $ 29 $ 84 $ 1,335 Collectively evaluated for impairment 36,128 19,030 2,936 249 58,343 Total allowance for loan losses $ 37,162 $ 19,218 $ 2,965 $ 333 $ 59,678 December 31, 2021 Loans: Individually evaluated for impairment $ 17,460 $ 4,781 $ 11,479 $ 2 $ 33,722 Collectively evaluated for impairment 2,397,327 1,172,192 425,637 17,764 4,012,920 Total loans $ 2,414,787 $ 1,176,973 $ 437,116 $ 17,766 $ 4,046,642 Allowance for loan losses: Individually evaluated for impairment $ 2,517 $ 12 $ 39 $ — $ 2,568 Collectively evaluated for impairment 30,760 12,887 1,097 235 44,979 Total allowance for loan losses $ 33,277 $ 12,899 $ 1,136 $ 235 $ 47,547 |
Schedule of Impaired Financing Receivables | The following table presents information related to impaired loans by class of loans as of: Unpaid Recorded Allowance for Average September 30, 2022 With no related allowance recorded: Commercial $ 13,937 $ 13,438 $ — $ 9,609 Commercial real estate 10,693 10,312 — 5,031 Residential real estate 13,939 14,103 — 8,818 Consumer — — — — Total loans with no related allowance recorded 38,569 37,853 — 23,458 With an allowance recorded: Commercial 3,256 3,122 1,034 2,426 Commercial real estate 796 796 188 265 Residential real estate 29 29 29 10 Consumer 87 87 84 29 Total loans with an allowance recorded 4,168 4,034 1,335 2,730 Total impaired loans $ 42,737 $ 41,887 $ 1,335 $ 26,188 December 31, 2021 With no related allowance recorded: Commercial $ 14,619 $ 13,982 $ — $ 10,637 Commercial real estate 4,795 4,706 — 3,943 Residential real estate 10,754 10,808 — 7,223 Consumer 3 2 — 3 Total loans with no related allowance recorded 30,171 29,498 — 21,806 With an allowance recorded: Commercial 3,666 3,478 2,517 2,375 Commercial real estate 124 75 12 57 Residential real estate 665 671 39 462 Total loans with an allowance recorded 4,455 4,224 2,568 2,894 Total impaired loans $ 34,626 $ 33,722 $ 2,568 $ 24,700 |
Schedule of Credit Risk Profile Based on Bank’s Rating Categories | The following table presents the credit risk profile of our loan portfolio based on our rating categories as of: Non-Classified Classified Total September 30, 2022 Commercial $ 2,710,397 $ 32,228 $ 2,742,625 Commercial real estate 1,750,480 31,311 1,781,791 Residential real estate 994,835 8,864 1,003,699 Consumer 44,270 88 44,358 Total loans $ 5,499,982 $ 72,491 $ 5,572,473 December 31, 2021 Commercial $ 2,384,275 $ 30,512 $ 2,414,787 Commercial real estate 1,146,673 30,300 1,176,973 Residential real estate 431,033 6,083 437,116 Consumer 17,762 4 17,766 Total loans $ 3,979,743 $ 66,899 $ 4,046,642 |
Schedule of Aging of Loan Portfolio | The following table presents our loan portfolio aging analysis as of: Loans Loans Loans Loans Greater Nonaccrual Total September 30, 2022 Commercial $ 2,720,683 $ 4,431 $ 1,505 $ 261 $ 15,745 $ 2,742,625 Commercial 1,771,809 681 365 — 8,936 1,781,791 Residential 988,528 2,027 4,142 198 8,804 1,003,699 Consumer 44,230 41 — — 87 44,358 Total loans $ 5,525,250 $ 7,180 $ 6,012 $ 459 $ 33,572 $ 5,572,473 December 31, 2021 Commercial $ 2,392,205 $ 5,467 $ 623 $ — $ 16,492 $ 2,414,787 Commercial 1,160,244 10,887 — 1,061 4,781 1,176,973 Residential 424,860 5,794 410 — 6,052 437,116 Consumer 17,719 45 — — 2 17,766 Total loans $ 3,995,028 $ 22,193 $ 1,033 $ 1,061 $ 27,327 $ 4,046,642 |
Schedule of Troubled Debt Restructuring | The following table presents loans by class modified as TDRs that occurred during the nine months ended September 30, 2022 and year ended December 31, 2021: Number Pre-Modification Post-Modification September 30, 2022 Commercial 1 $ 248 $ 198 Residential real estate 1 126 126 Consumer 1 72 72 Total 3 $ 446 $ 396 December 31, 2021 Commercial 7 $ 6,969 $ 6,178 Commercial real estate 1 2,295 2,265 Residential real estate 4 1,386 1,435 Total 12 $ 10,650 $ 9,878 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Transfers and Servicing [Abstract] | |
Schedule of Unpaid Principal Loan Balance of Servicing Portfolio | The unpaid principal loan balance of our servicing portfolio is presented in the following table as of: September 30, December 31, 2021 Federal National Mortgage Association $ 2,499,105 $ 2,352,981 Federal Home Loan Mortgage Corporation 1,627,381 1,512,858 Government National Mortgage Association 852,490 759,524 Federal Home Loan Bank 114,747 134,616 Other 1,443 1,853 Total $ 5,095,166 $ 4,761,832 |
Schedule of Mortgage Servicing Rights at Fair Value | The activity of MSRs carried at fair value is as follows: For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Balance, beginning of period $ 66,047 $ 40,844 $ 47,392 $ 29,144 Additions: Servicing resulting from transfers of financial assets 3,489 5,303 11,681 18,533 Changes in fair value: Due to changes in valuation inputs or assumptions used in the valuation model 6,270 948 21,142 5,209 Changes in fair value due to pay-offs, pay-downs, and runoff (1,956) (3,124) (6,365) (8,915) Balance, end of period $ 73,850 $ 43,971 $ 73,850 $ 43,971 |
Schedule of Fair Value Assumptions, Servicing Assets | The following represents the weighted-average key assumptions used to estimate the fair value of MSRs as of: September 30, December 31, September 30, Discount rate 9.34 % 9.22 % 9.22 % Total prepayment speeds 7.43 % 11.52 % 12.15 % Cost of servicing each loan $87/per loan $85/per loan $86/per loan |
Schedule of Servicing and Ancillary Fees from Mortgage Servicing Portfolio | Total servicing and ancillary fees earned from the mortgage servicing portfolio is presented in the following table: For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Servicing fees $ 4,111 $ 3,101 $ 10,807 $ 8,853 Late and ancillary fees 123 118 264 317 Total $ 4,234 $ 3,219 $ 11,071 $ 9,170 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The components of our banking derivative financial instruments consisted of the following as of: Number of Expiration Outstanding Estimated September 30, 2022 Derivative financial instruments designated as hedging instruments: Assets: Interest Rate Products 32 2028-2036 $ 204,216 $ 16,717 Derivative financial instruments not designated as hedging instruments: Assets: Interest Rate Products 41 2024-2037 $ 275,765 $ 26,642 Liabilities: Interest Rate Products 41 2024-2037 $ 275,765 $ 25,987 December 31, 2021 Derivative financial instruments designated as hedging instruments: Assets: Interest Rate Products 1 2029 $ 20,190 $ 1,213 Liabilities: Interest Rate Products 12 2022-2029 $ 179,431 $ 7,107 Derivative financial instruments not designated as hedging instruments: Assets: Interest Rate Products 38 2024-2036 $ 232,849 $ 6,923 Liabilities: Interest Rate Products 38 2024-2036 $ 232,849 $ 7,366 The components of our mortgage banking derivative financial instruments consisted of the following as of: Expiration Outstanding Estimated September 30, 2022 Derivative financial instruments Assets: Forward MBS trades 2022 $ 123,000 $ 5,012 Liabilities: Forward MBS trades 2022 $ 20,300 $ 845 Interest rate lock commitments (IRLC) 2022 $ 99,368 $ 1,439 December 31, 2021 Derivative financial instruments Assets: Forward MBS trades 2022 $ 450,600 $ 1,329 Interest rate lock commitments (IRLC) 2022 $ 142,334 $ 1,350 Liabilities: Forward MBS trades 2022 $ 16,600 $ 52 |
Derivative Instruments, Gain (Loss) | We recorded gains and losses on banking derivative assets and liabilities as follows: For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Recorded gain (loss) on banking derivative assets $ 15,123 $ (186) $ 30,192 $ (420) Recorded (loss) gain on banking derivative liabilities $ (14,771) $ 337 $ (29,095) $ 926 We recorded gains and losses on mortgage banking derivative assets and liabilities as follows: For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Recorded gain (loss) on mortgage banking derivative assets $ 3,277 $ 9,175 $ 5,189 $ (302) Recorded loss on mortgage banking derivative liabilities $ (2,844) $ (10,241) $ (16,940) $ (7,714) |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Statistical Disclosure for Banks [Abstract] | |
Schedule of Composition of Deposits | The composition of our deposits is as follows as of: September 30, December 31, Noninterest-bearing demand deposit accounts $ 1,946,215 $ 1,566,113 Interest-bearing deposit accounts: Interest-bearing demand accounts 160,082 187,712 Savings accounts and money market accounts 3,008,433 2,757,882 NOW accounts 46,128 19,496 Certificate of deposit accounts: Less than $100 216,331 147,386 $100 through $250 224,999 103,082 Greater than $250 158,230 73,277 Total interest-bearing deposit accounts 3,814,203 3,288,835 Total deposits $ 5,760,418 $ 4,854,948 |
Summary of Interest Expense Incurred on Deposits | The following table summarizes the interest expense incurred on our deposits: For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Interest-bearing deposit accounts: Interest-bearing demand accounts $ 449 $ 89 $ 733 $ 300 Savings accounts and money market accounts 1,859 1,155 4,095 3,668 NOW accounts 46 50 115 336 Certificate of deposit accounts 920 684 2,077 2,427 Total interest-bearing deposit accounts $ 3,274 $ 1,978 $ 7,020 $ 6,731 |
Schedule of Remaining Maturity on Certificate of Deposit Accounts | The remaining maturity on certificate of deposit accounts is as follows as of: September 30, Remainder of 2022 $ 1,085 2023 382,847 2024 119,617 2025 71,858 2026 13,429 2027 7,629 Thereafter 3,095 Total certificate of deposit accounts $ 599,560 |
Securities Sold Under Agreeme_2
Securities Sold Under Agreements to Repurchase (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Carrying Value of Securities Sold under Repurchase Agreements and Deposits Received for Securities Loaned [Abstract] | |
Schedule of Information Concerning Securities Sold Under Agreements to Repurchase | Information concerning securities sold under agreements to repurchase is as follows as of and for the periods ended: September 30, December 31, Amount outstanding at period-end $ 51,256 $ 92,093 Average daily balance during the period $ 59,573 $ 125,867 Average interest rate during the period 0.22 % 0.05 % Maximum month-end balance during the period $ 70,838 $ 160,865 Weighted average interest rate at period-end 0.40 % 0.05 % |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | The following is a breakdown of our FHLB advances and other borrowings outstanding as of: September 30, 2022 December 31, 2021 Amount Rate Weighted Amount Rate Weighted Variable rate line-of-credit advance $ 170,884 2.42% - 3.16% 3% $ — N/A N/A Fixed rate term advances $ 139,988 1.56% - 1.90% 1.77% $ 40,000 0.91% - 2.59% 1.49% $ 310,872 $ 40,000 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share of common stock: For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Net income applicable to common stockholders $ 26,513 $ 8,728 $ 34,612 $ 34,347 Weighted Average Shares Weighted average common shares outstanding 24,877,607 18,321,659 22,685,496 18,321,659 Effect of dilutive securities Stock-based awards 531,208 449,022 596,437 440,838 Convertible notes payable 85,500 — — — Weighted average diluted common shares 25,494,315 18,770,681 23,281,933 18,762,497 Earnings per common share Basic earnings per common share $ 1.07 $ 0.48 $ 1.53 $ 1.87 Effect of dilutive securities Stock-based awards (0.03) (0.02) (0.04) (0.04) Diluted earnings per common share $ 1.04 $ 0.46 $ 1.49 $ 1.83 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
AOCI Attributable to Parent [Abstract] | |
Schedule of Components in Accumulated Other Comprehensive Income (Loss) | The following table sets forth the components in accumulated other comprehensive income (loss): For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Securities available-for-sale: Balance, beginning of period $ (40,535) $ 7,142 $ 1,664 $ 9,119 Unrealized (loss) gain (6,613) 349 (62,473) (2,270) Income tax effect 1,506 (86) 15,167 556 Net unrealized (loss) gain (5,107) 263 (47,306) (1,714) Balance, end of period $ (45,642) $ 7,405 $ (45,642) $ 7,405 Fair value hedges of securities available-for-sale: Balance, beginning of period $ 1,098 $ — $ — $ — Unrealized gain 1,821 — 3,211 — Income tax effect (383) — (675) — Net unrealized gain 1,438 — 2,536 — Balance, end of period $ 2,536 $ — $ 2,536 $ — |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | The following table presents stock options outstanding under the 2017 Plan at September 30, 2022. There were no grants or forfeitures during the nine months ended September 30, 2022: Shares Weighted-Average Exercise Price, per Share Weighted-Average Remaining Contractual Term (years) September 30, 2022 Outstanding, beginning of period 1,412,900 $ 20.19 Exercised (67,976) 19.72 Outstanding, end of period 1,344,924 $ 20.21 5.49 Options vested or expected to vest 1,412,900 $ 20.19 Options exercisable, end of period 1,228,041 $ 20.02 5.29 Shares Weighted-Average Exercise Price, per Share Weighted-Average Remaining Contractual Term (years) September 30, 2022 Outstanding, beginning of period — $ — Options assumed from Pioneer Bancshares, Inc. 431,645 23.32 Exercised (255,453) 23.44 Outstanding, vested, and exercisable, end of period 176,192 $ 23.12 5.61 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income tax is summarized as follows: For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Provision for income taxes $ 7,628 $ 1,851 $ 8,559 $ 7,159 Effective tax provision rate 22.3 % 17.5 % 19.8 % 17.2 % |
Regulatory Capital Matters (Tab
Regulatory Capital Matters (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Regulatory Capital Requirements under Banking Regulations [Abstract] | |
Schedule of Actual and Required Capital Amounts | Actual and required capital amounts for the Parent Company are as follows as of: Actual For Capital To be Well- Amount Ratio Amount Ratio Amount Ratio September 30, 2022 Total risk-based capital to risk-weighted assets: $ 791,066 12.06 % $ 524,601 8.00 % N/A N/A Tier 1 risk-based capital to risk-weighted assets: $ 655,345 9.99 % $ 393,451 6.00 % N/A N/A Common Equity Tier 1 (CET 1) to risk-weighted assets: $ 655,345 9.99 % $ 295,088 4.50 % N/A N/A Tier 1 leverage capital to average assets: $ 655,345 9.55 % $ 274,564 4.00 % N/A N/A December 31, 2021 Total risk-based capital to risk-weighted assets: $ 563,112 11.76 % $ 383,213 8.00 % N/A N/A Tier 1 risk-based capital to risk-weighted assets: $ 464,761 9.70 % $ 287,410 6.00 % N/A N/A Common Equity Tier 1 (CET 1) to risk-weighted assets: $ 464,761 9.70 % $ 215,557 4.50 % N/A N/A Tier 1 leverage capital to average assets: $ 464,761 8.24 % $ 225,736 4.00 % N/A N/A Actual and required capital amounts for the Bank are as follows as of: Actual For Capital To be Well- Amount Ratio Amount Ratio Amount Ratio September 30, 2022 Total risk-based capital to risk-weighted assets: $ 776,038 11.86 % $ 523,395 8.00 % $ 654,243 10.00 % Tier 1 risk-based capital to risk-weighted assets: $ 715,097 10.93 % $ 392,546 6.00 % $ 523,395 8.00 % Common Equity Tier 1 (CET 1) to risk-weighted assets: $ 715,097 10.93 % $ 294,409 4.50 % $ 425,258 6.50 % Tier 1 leverage capital to average assets: $ 715,097 10.42 % $ 274,489 4.00 % $ 343,112 5.00 % December 31, 2021 Total risk-based capital to risk-weighted assets: $ 571,463 11.96 % $ 382,106 8.00 % $ 477,633 10.00 % Tier 1 risk-based capital to risk-weighted assets: $ 523,128 10.95 % $ 286,580 6.00 % $ 382,106 8.00 % Common Equity Tier 1 (CET 1) to risk-weighted assets: $ 523,128 10.95 % $ 214,935 4.50 % $ 310,462 6.50 % Tier 1 leverage capital to average assets: $ 523,128 9.27 % $ 225,650 4.00 % $ 282,062 5.00 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table sets forth our assets and liabilities measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Quoted prices Significant Significant Total As of September 30, 2022 Available-for-sale securities $ 56,618 $ 494,547 $ — $ 551,165 Loans held-for-sale — 67,535 — 67,535 Mortgage servicing rights — — 73,850 73,850 Derivative financial instruments - assets — 48,371 — 48,371 Derivative financial instruments - liabilities — (28,271) — (28,271) Total $ 56,618 $ 582,182 $ 73,850 $ 712,650 As of December 31, 2021 Available-for-sale securities $ 35,185 $ 537,316 $ — $ 572,501 Loans held-for-sale — 103,939 — 103,939 Mortgage servicing rights — — 47,392 47,392 Derivative financial instruments - assets — 10,815 — 10,815 Derivative financial instruments - liabilities — (14,525) — (14,525) Total $ 35,185 $ 637,545 $ 47,392 $ 720,122 |
Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents a reconciliation for our Level 3 assets measured at fair value on a recurring basis: For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Balance, beginning of period $ 66,047 $ 40,844 $ 47,392 $ 29,144 Total gains (losses) included in earnings 4,314 (2,176) 14,777 (3,706) Purchases, issuances, sales and settlements: Issuances 3,489 5,303 11,681 18,533 Balance, end of period $ 73,850 $ 43,971 $ 73,850 $ 43,971 |
Schedule of Fair Value Measurements, Nonrecurring | The following table sets forth our assets and liabilities that were measured at fair value on a non-recurring basis as of: Level 3 September 30, December 31, Impaired loans: Commercial $ 2,088 $ 961 Commercial real estate 608 63 Residential real estate — 632 Consumer 3 — Total impaired loans $ 2,699 $ 1,656 Other real estate owned and foreclosed assets, net: Commercial real estate $ 5,391 $ 5,067 Residential real estate — 420 Total other real estate owned and foreclosed assets, net: $ 5,391 $ 5,487 |
Schedule of Fair Value, by Balance Sheet Grouping | The carrying amounts and estimated fair values of financial instruments not carried at fair value are as follows as of: Estimated Fair Value Carrying Total Level 1 Level 2 Level 3 September 30, 2022 Assets: Cash and cash equivalents $ 325,039 $ 325,039 $ 325,039 $ — $ — Securities held-to-maturity 39,148 34,096 — 34,096 — Loans (excluding impaired loans) 5,515,103 5,375,203 — — 5,375,203 Restricted equity securities 34,877 34,877 — 34,877 — Accrued interest receivable 24,964 24,964 — 2,415 22,549 Liabilities: Deposits (excluding demand deposits) $ 3,654,121 $ 3,614,346 $ — $ 3,614,346 $ — Securities sold under agreements to repurchase 51,256 51,256 — 51,256 — FHLB advances 310,872 310,872 — 310,872 — Convertible notes payable, net 5,317 5,340 — 5,340 — Subordinated debt, net 74,780 83,795 — 83,795 — Accrued interest payable 3,073 3,073 — 3,073 — December 31, 2021 Assets: Cash and cash equivalents $ 668,462 $ 668,462 $ 668,462 $ — $ — Securities held-to-maturity 18,007 18,599 — 18,599 — Loans (excluding impaired loans) 4,003,712 3,949,719 — — 3,949,719 Restricted equity securities 16,239 16,239 — 16,239 — Accrued interest receivable 14,761 14,761 — 1,131 13,630 Liabilities: Deposits (excluding demand deposits) $ 3,101,123 $ 3,106,464 $ — $ 3,106,464 $ — Securities sold under agreements to repurchase 92,093 92,093 — 92,093 — FHLB advances 40,000 41,514 — 41,514 — Convertible notes payable, net 19,442 21,564 — 21,564 — Subordinated debt, net 50,016 52,264 — 52,264 — Accrued interest payable 2,369 2,369 — 2,369 — |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Significant segment totals are reconciled to the financial statements as follows for the three months ended September 30, Banking Mortgage Operations Corporate Total Segments 2022 Summary of Operations Net interest income $ 68,159 $ 1,492 $ (1,165) $ 68,486 Provision for loan losses 3,223 527 — 3,750 Noninterest income: Service charges on deposit accounts 4,807 — — 4,807 Credit and debit card fees 3,103 — — 3,103 Trust and investment advisory fees 1,552 — — 1,552 Income from mortgage banking services, net (701) 14,486 — 13,785 Other noninterest income 1,706 — — 1,706 Total noninterest income 10,467 14,486 — 24,953 Noninterest expense: Salary and employee benefits 23,210 8,922 376 32,508 Occupancy and equipment 7,190 988 38 8,216 Other noninterest expenses 11,146 3,314 364 14,824 Total noninterest expense 41,546 13,224 778 55,548 Income (loss) before income taxes $ 33,857 $ 2,227 $ (1,943) $ 34,141 Other Information Depreciation expense $ 1,839 $ 81 $ — $ 1,920 Identifiable assets $ 6,315,984 $ 693,473 $ 43,460 $ 7,052,917 Banking Mortgage Operations Corporate Total Segments 2021 Summary of Operations Net interest income $ 39,297 $ 1,810 $ (1,142) $ 39,965 Provision for (benefit from) loan losses 3,543 (43) — 3,500 Noninterest income: Service charges on deposit accounts 3,471 — — 3,471 Credit and debit card fees 2,472 — — 2,472 Trust and investment advisory fees 1,974 — — 1,974 Income from mortgage banking services, net (406) 20,557 — 20,151 Other noninterest income 616 — — 616 Total noninterest income 8,127 20,557 — 28,684 Noninterest expense: Salary and employee benefits 22,604 13,166 291 36,061 Occupancy 5,854 787 2 6,643 Other noninterest expenses 8,361 2,915 590 11,866 Total noninterest expense 36,819 16,868 883 54,570 Income (loss) before income taxes $ 7,062 $ 5,542 $ (2,025) $ 10,579 Other Information Depreciation expense $ 1,516 $ 21 $ — $ 1,537 Identifiable assets $ 5,070,287 $ 578,475 $ 34,323 $ 5,683,085 Significant segment totals are reconciled to the financial statements as follows for the nine months ended September 30,: Banking Mortgage Operations Corporate Total Segments 2022 Summary of Operations Net interest income $ 167,606 $ 5,193 $ (4,443) $ 168,356 Provision for loan losses 9,853 2,597 — 12,450 Noninterest income: Service charges on deposit accounts 13,111 — — 13,111 Credit and debit card fees 8,508 — — 8,508 Trust and investment advisory fees 5,408 — — 5,408 Income from mortgage banking services, net (1,972) 41,989 — 40,017 Other noninterest income 3,913 (9) — 3,904 Total noninterest income 28,968 41,980 — 70,948 Noninterest expense: Salary and employee benefits 69,880 30,854 1,247 101,981 Occupancy and equipment 19,937 2,826 39 22,802 Other noninterest expenses 46,203 10,439 2,258 58,900 Total noninterest expense 136,020 44,119 3,544 183,683 Income (loss) before income taxes $ 50,701 $ 457 $ (7,987) $ 43,171 Other Information Depreciation expense $ 5,011 $ 294 $ — $ 5,305 Identifiable assets $ 6,315,984 $ 693,473 $ 43,460 $ 7,052,917 Banking Mortgage Operations Corporate Total Segments 2021 Summary of Operations Net interest income $ 112,517 $ 5,674 $ (3,409) $ 114,782 Provision for (benefit from) loan losses 2,124 (374) — 1,750 Noninterest income: Service charges on deposit accounts 8,659 — — 8,659 Credit and debit card fees 7,140 — — 7,140 Trust and investment advisory fees 5,871 — — 5,871 Income from mortgage banking services, net (1,516) 69,660 — 68,144 Other noninterest income 5,041 (7) — 5,034 Total noninterest income 25,195 69,653 — 94,848 Noninterest expense: Salary and employee benefits 70,111 42,238 780 113,129 Occupancy 17,535 2,329 3 19,867 Other noninterest expenses 22,072 9,237 2,069 33,378 Total noninterest expense 109,718 53,804 2,852 166,374 Income (loss) before income taxes $ 25,870 $ 21,897 $ (6,261) $ 41,506 Other Information Depreciation expense $ 4,428 $ 288 $ — $ 4,716 Identifiable assets $ 5,070,287 $ 578,475 $ 34,323 $ 5,683,085 |
Organization and Basis of Pre_3
Organization and Basis of Presentation (Details) | Apr. 01, 2022 shares |
FirstSun Capital Bancorp and Pioneer Bancshares, Inc. Merger | |
Business Acquisition [Line Items] | |
Shares issuable in merger (in shares) | 1.0443 |
Merger with Pioneer Bancshare_3
Merger with Pioneer Bancshares, Inc. - Narrative (Details) - FirstSun Capital Bancorp and Pioneer Bancshares, Inc. Merger $ in Thousands | Apr. 01, 2022 USD ($) shares |
Business Acquisition [Line Items] | |
Business acquisition, shares issuable in merger (in shares) | shares | 1.0443 |
Business acquisition, number of shares issued (in shares) | shares | 6,467,466 |
Business acquisition, equity interest issued | $ 230,760 |
Business acquisition, consideration transferred, stock options converted, number of shares (in shares) | shares | 431,645 |
Business acquisition, consideration transferred, stock options converted | $ 5,334 |
Payments to acquire businesses | 4,736 |
Business acquisition, aggregate consideration | $ 240,830 |
Merger with Pioneer Bancshare_4
Merger with Pioneer Bancshares, Inc. - Estimated Fair Values of the Assets Acquired and Liabilities Assumed in this Transaction (Details) - USD ($) $ in Thousands | Apr. 01, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 93,483 | $ 33,050 | |
FirstSun Capital Bancorp and Pioneer Bancshares, Inc. Merger | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 449,278 | ||
Investment securities | 157,859 | ||
Loans held-for-sale | 2,923 | ||
Loans | 811,300 | ||
Premises and equipment | 39,935 | ||
Bank-owned life insurance | 21,382 | ||
Restricted equity securities | 9,320 | ||
Core deposits and other intangible assets | 11,771 | ||
Accrued interest receivable | 3,947 | ||
Deferred tax assets | 19,752 | ||
Prepaid expenses and other assets | 7,317 | ||
Total assets acquired | 1,534,784 | ||
Deposits | 1,192,081 | ||
Federal Home Loan Bank advances | 159,924 | ||
Accrued interest payable | 407 | ||
Accrued expenses and other liabilities | 1,975 | ||
Total liabilities assumed | 1,354,387 | ||
Fair value of net assets acquired | 180,397 | ||
Purchase price | 240,830 | ||
Goodwill | $ 60,433 |
Merger with Pioneer Bancshare_5
Merger with Pioneer Bancshares, Inc. - Fair Value and Contractual Value of Loans (Details) $ in Thousands | Apr. 01, 2022 USD ($) |
Business Acquisition [Line Items] | |
Acquired Loans | $ 811,300 |
Contractual Principal Balance | 821,838 |
Commercial | |
Business Acquisition [Line Items] | |
Acquired Loans | 98,351 |
Contractual Principal Balance | 98,752 |
Commercial real estate | |
Business Acquisition [Line Items] | |
Acquired Loans | 509,173 |
Contractual Principal Balance | 516,341 |
Residential real estate | |
Business Acquisition [Line Items] | |
Acquired Loans | 173,094 |
Contractual Principal Balance | 174,763 |
Consumer | |
Business Acquisition [Line Items] | |
Acquired Loans | 30,682 |
Contractual Principal Balance | $ 31,982 |
Securities - Schedule of Securi
Securities - Schedule of Securities by Type (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 611,436 | $ 570,299 |
Gross Unrealized Gains | 8 | 6,883 |
Gross Unrealized Losses | (60,279) | (4,681) |
Estimated Fair Value | 551,165 | 572,501 |
Amortized Cost | 39,148 | 18,007 |
Gross Unrealized Gains | 5 | 592 |
Gross Unrealized Losses | (5,057) | 0 |
Estimated Fair Value | 34,096 | 18,599 |
U.S. treasury | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 62,021 | 35,400 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (5,403) | (215) |
Estimated Fair Value | 56,618 | 35,185 |
U.S. agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,242 | 6,019 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (41) | (100) |
Estimated Fair Value | 3,201 | 5,919 |
Obligations of states and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 29,860 | 3,979 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (4,408) | (190) |
Estimated Fair Value | 25,452 | 3,789 |
Amortized Cost | 25,002 | 716 |
Gross Unrealized Gains | 0 | 25 |
Gross Unrealized Losses | (4,134) | 0 |
Estimated Fair Value | 20,868 | 741 |
Mortgage backed - residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 134,216 | 138,297 |
Gross Unrealized Gains | 8 | 2,018 |
Gross Unrealized Losses | (15,711) | (1,638) |
Estimated Fair Value | 118,513 | 138,677 |
Amortized Cost | 9,091 | 10,750 |
Gross Unrealized Gains | 5 | 390 |
Gross Unrealized Losses | (654) | 0 |
Estimated Fair Value | 8,442 | 11,140 |
Collateralized mortgage obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 232,970 | 236,282 |
Gross Unrealized Gains | 0 | 1,441 |
Gross Unrealized Losses | (18,940) | (1,939) |
Estimated Fair Value | 214,030 | 235,784 |
Amortized Cost | 5,055 | 6,541 |
Gross Unrealized Gains | 0 | 177 |
Gross Unrealized Losses | (269) | 0 |
Estimated Fair Value | 4,786 | 6,718 |
Mortgage backed - commercial | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 132,358 | 150,322 |
Gross Unrealized Gains | 0 | 3,424 |
Gross Unrealized Losses | (13,766) | (599) |
Estimated Fair Value | 118,592 | $ 153,147 |
Other debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 16,769 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (2,010) | |
Estimated Fair Value | $ 14,759 |
Securities - Debt Securities wi
Securities - Debt Securities with Unrealized Losses in Continuous Unrealized Loss Position (Details) $ in Thousands | Sep. 30, 2022 USD ($) security | Dec. 31, 2021 USD ($) security |
Available-for-sale securities | ||
Estimated Fair Value | $ 368,832 | $ 238,782 |
Unrealized Losses | (28,851) | (3,454) |
Estimated Fair Value | 181,373 | 55,528 |
Unrealized Losses | (31,428) | (1,227) |
Estimated Fair Value | 550,205 | 294,310 |
Unrealized Losses | $ (60,279) | $ (4,681) |
Number of Securities | security | 219 | 51 |
Held-to-maturity: | ||
Estimated Fair Value | $ 33,872 | |
Unrealized Losses | (5,057) | |
Estimated Fair Value | 0 | |
Unrealized Losses | 0 | |
Estimated Fair Value | 33,872 | $ 0 |
Unrealized Losses | $ (5,057) | |
Number of Securities | security | 23 | |
U.S. treasury | ||
Available-for-sale securities | ||
Estimated Fair Value | $ 25,690 | 35,185 |
Unrealized Losses | (975) | (215) |
Estimated Fair Value | 30,928 | 0 |
Unrealized Losses | (4,428) | 0 |
Estimated Fair Value | 56,618 | 35,185 |
Unrealized Losses | $ (5,403) | $ (215) |
Number of Securities | security | 10 | 4 |
U.S. agency | ||
Available-for-sale securities | ||
Estimated Fair Value | $ 0 | $ 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | 3,201 | 5,919 |
Unrealized Losses | (41) | (100) |
Estimated Fair Value | 3,201 | 5,919 |
Unrealized Losses | $ (41) | $ (100) |
Number of Securities | security | 7 | 7 |
Obligations of states and political subdivisions | ||
Available-for-sale securities | ||
Estimated Fair Value | $ 22,626 | $ 3,232 |
Unrealized Losses | (3,346) | (190) |
Estimated Fair Value | 2,357 | 0 |
Unrealized Losses | (1,062) | 0 |
Estimated Fair Value | 24,983 | 3,232 |
Unrealized Losses | $ (4,408) | $ (190) |
Number of Securities | security | 18 | 2 |
Held-to-maturity: | ||
Estimated Fair Value | $ 20,869 | |
Unrealized Losses | (4,134) | |
Estimated Fair Value | 0 | |
Unrealized Losses | 0 | |
Estimated Fair Value | 20,869 | |
Unrealized Losses | $ (4,134) | |
Number of Securities | security | 8 | |
Mortgage backed - residential | ||
Available-for-sale securities | ||
Estimated Fair Value | $ 68,299 | $ 51,616 |
Unrealized Losses | (5,512) | (530) |
Estimated Fair Value | 49,723 | 25,246 |
Unrealized Losses | (10,199) | (1,108) |
Estimated Fair Value | 118,022 | 76,862 |
Unrealized Losses | $ (15,711) | $ (1,638) |
Number of Securities | security | 86 | 17 |
Held-to-maturity: | ||
Estimated Fair Value | $ 8,217 | |
Unrealized Losses | (654) | |
Estimated Fair Value | 0 | |
Unrealized Losses | 0 | |
Estimated Fair Value | 8,217 | |
Unrealized Losses | $ (654) | |
Number of Securities | security | 10 | |
Collateralized mortgage obligations | ||
Available-for-sale securities | ||
Estimated Fair Value | $ 148,461 | $ 115,877 |
Unrealized Losses | (6,846) | (1,938) |
Estimated Fair Value | 65,569 | 193 |
Unrealized Losses | (12,094) | (1) |
Estimated Fair Value | 214,030 | 116,070 |
Unrealized Losses | $ (18,940) | $ (1,939) |
Number of Securities | security | 67 | 16 |
Held-to-maturity: | ||
Estimated Fair Value | $ 4,786 | |
Unrealized Losses | (269) | |
Estimated Fair Value | 0 | |
Unrealized Losses | 0 | |
Estimated Fair Value | 4,786 | |
Unrealized Losses | $ (269) | |
Number of Securities | security | 5 | |
Mortgage backed - commercial | ||
Available-for-sale securities | ||
Estimated Fair Value | $ 88,997 | $ 32,872 |
Unrealized Losses | (10,162) | (581) |
Estimated Fair Value | 29,595 | 24,170 |
Unrealized Losses | (3,604) | (18) |
Estimated Fair Value | 118,592 | 57,042 |
Unrealized Losses | $ (13,766) | $ (599) |
Number of Securities | security | 22 | 5 |
Other debt | ||
Available-for-sale securities | ||
Estimated Fair Value | $ 14,759 | |
Unrealized Losses | (2,010) | |
Estimated Fair Value | 0 | |
Unrealized Losses | 0 | |
Estimated Fair Value | 14,759 | |
Unrealized Losses | $ (2,010) | |
Number of Securities | security | 9 |
Securities - Narrative (Details
Securities - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Schedule of Held-to-maturity Securities [Line Items] | |||||
Unrealized loss | $ 33,872,000 | $ 33,872,000 | $ 0 | ||
Proceeds from sale and maturity of securities | 81,016,000 | $ 0 | $ 0 | ||
Gain or loss was recognized on securities sold | 0 | 0 | |||
Asset Pledged as Collateral without Right | |||||
Schedule of Held-to-maturity Securities [Line Items] | |||||
Debt securities, carrying value | $ 435,410,000 | $ 435,410,000 | $ 465,665,000 |
Securities - Schedule of Secu_2
Securities - Schedule of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Due within 1 year | $ 3,533 | |
Due after 1 year through 5 years | 45,272 | |
Due after 5 years through 10 years | 174,641 | |
Due after 10 years | 387,990 | |
Amortized Cost | 611,436 | $ 570,299 |
Estimated Fair Value | ||
Due within 1 year | 3,444 | |
Due after 1 year through 5 years | 43,573 | |
Due after 5 years through 10 years | 155,456 | |
Due after 10 years | 348,692 | |
Total available-for-sale | 551,165 | 572,501 |
Amortized Cost | ||
Due after 1 year through 5 years | 1,042 | |
Due after 5 years through 10 years | 668 | |
Due after 10 years | 37,438 | |
Amortized Cost | 39,148 | 18,007 |
Estimated Fair Value | ||
Due after 1 year through 5 years | 997 | |
Due after 5 years through 10 years | 629 | |
Due after 10 years | 32,470 | |
Total held-to-maturity | $ 34,096 | $ 18,599 |
Loans - Loans Held for Investme
Loans - Loans Held for Investment (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans | $ 5,572,473 | $ 4,046,642 | ||||
Deferred costs, fees, premiums, and discounts, net | (15,787) | (9,519) | ||||
Allowance for loan losses | (59,678) | $ (56,077) | (47,547) | $ (47,868) | $ (42,978) | $ (47,766) |
Total loans, net | 5,497,008 | 3,989,576 | ||||
Commercial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans | 2,742,625 | 2,414,787 | ||||
Allowance for loan losses | (37,162) | (34,987) | (33,277) | (32,643) | (28,173) | (32,009) |
Commercial real estate | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans | 1,781,791 | 1,176,973 | ||||
Allowance for loan losses | (19,218) | (18,053) | (12,899) | (13,709) | (13,149) | (13,863) |
Residential real estate | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans | 1,003,699 | 437,116 | ||||
Allowance for loan losses | (2,965) | (2,719) | (1,136) | (1,277) | (1,305) | (1,606) |
Consumer | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans | 44,358 | 17,766 | ||||
Allowance for loan losses | $ (333) | $ (318) | $ (235) | $ (239) | $ (351) | $ (288) |
Loans - Narrative (Details)
Loans - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
PPP loans outstanding | $ 5,572,473,000 | $ 5,572,473,000 | $ 4,046,642,000 | ||||
Deferred processing fees | (15,787,000) | (15,787,000) | (9,519,000) | ||||
Loans, allowance for loan losses | 59,678,000 | 59,678,000 | 47,547,000 | $ 56,077,000 | $ 47,868,000 | $ 42,978,000 | $ 47,766,000 |
Recorded investment in troubled debt restructurings (TDRs) | 18,495,000 | 18,495,000 | 21,699,000 | ||||
Post-modification outstanding | 396,000 | 396,000 | 9,878,000 | ||||
Increase of allowance for loan losses from modification | 797,000 | 2,326,000 | |||||
TDRs loans charged off | 0 | 0 | 0 | ||||
Total loans modified as Troubled Debt Restructuring (TDRs) with a subsequent default | 106,000 | ||||||
Accretable discount on loans acquired | 9,768,000 | 9,768,000 | 571,000 | ||||
Commercial | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
PPP loans outstanding | 2,742,625,000 | 2,742,625,000 | 2,414,787,000 | ||||
Loans, allowance for loan losses | 37,162,000 | 37,162,000 | 33,277,000 | $ 34,987,000 | $ 32,643,000 | $ 28,173,000 | $ 32,009,000 |
Post-modification outstanding | 198,000 | 6,178,000 | |||||
Paycheck Protection Program CARES Act | Commercial | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
PPP loans outstanding | 6,086,000 | 6,086,000 | 68,401,000 | ||||
Deferred processing fees | 54,000 | 54,000 | 1,652,000 | ||||
Loans, allowance for loan losses | $ 0 | $ 0 | $ 0 |
Loans - Allowance for Loan Loss
Loans - Allowance for Loan Losses by Portfolio Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Allowance for loan losses | ||||
Balance, beginning of period | $ 56,077 | $ 42,978 | $ 47,547 | $ 47,766 |
Provision for (benefit from) loan losses | 3,750 | 3,500 | 12,450 | 1,750 |
Loans charged off | (300) | (66) | (2,412) | (3,242) |
Recoveries | 151 | 1,456 | 2,093 | 1,594 |
Balance, end of period | 59,678 | 47,868 | 59,678 | 47,868 |
Commercial | ||||
Allowance for loan losses | ||||
Balance, beginning of period | 34,987 | 28,173 | 33,277 | 32,009 |
Provision for (benefit from) loan losses | 2,286 | 3,030 | 4,223 | 2,210 |
Loans charged off | (223) | 0 | (2,173) | (3,102) |
Recoveries | 112 | 1,440 | 1,835 | 1,526 |
Balance, end of period | 37,162 | 32,643 | 37,162 | 32,643 |
Commercial Real Estate | ||||
Allowance for loan losses | ||||
Balance, beginning of period | 18,053 | 13,149 | 12,899 | 13,863 |
Provision for (benefit from) loan losses | 1,163 | 560 | 6,316 | (163) |
Loans charged off | 0 | 0 | 0 | 0 |
Recoveries | 2 | 0 | 3 | 9 |
Balance, end of period | 19,218 | 13,709 | 19,218 | 13,709 |
Residential real estate | ||||
Allowance for loan losses | ||||
Balance, beginning of period | 2,719 | 1,305 | 1,136 | 1,606 |
Provision for (benefit from) loan losses | 269 | (31) | 1,755 | (350) |
Loans charged off | (24) | 0 | (122) | (2) |
Recoveries | 1 | 3 | 196 | 23 |
Balance, end of period | 2,965 | 1,277 | 2,965 | 1,277 |
Consumer | ||||
Allowance for loan losses | ||||
Balance, beginning of period | 318 | 351 | 235 | 288 |
Provision for (benefit from) loan losses | 32 | (59) | 156 | 53 |
Loans charged off | (53) | (66) | (117) | (138) |
Recoveries | 36 | 13 | 59 | 36 |
Balance, end of period | $ 333 | $ 239 | $ 333 | $ 239 |
Loans - Allowance for Loan Lo_2
Loans - Allowance for Loan Losses and Recorded Investment by Portfolio Type based on Impairment Method (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | $ 41,887 | $ 33,722 | ||||
Collectively evaluated for impairment | 5,530,586 | 4,012,920 | ||||
Total loans | 5,572,473 | 4,046,642 | ||||
Individually evaluated for impairment | 1,335 | 2,568 | ||||
Collectively evaluated for impairment | 58,343 | 44,979 | ||||
Total allowance for loan losses | 59,678 | $ 56,077 | 47,547 | $ 47,868 | $ 42,978 | $ 47,766 |
Commercial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 16,560 | 17,460 | ||||
Collectively evaluated for impairment | 2,726,065 | 2,397,327 | ||||
Total loans | 2,742,625 | 2,414,787 | ||||
Individually evaluated for impairment | 1,034 | 2,517 | ||||
Collectively evaluated for impairment | 36,128 | 30,760 | ||||
Total allowance for loan losses | 37,162 | 34,987 | 33,277 | 32,643 | 28,173 | 32,009 |
Commercial Real Estate | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 11,108 | 4,781 | ||||
Collectively evaluated for impairment | 1,770,683 | 1,172,192 | ||||
Total loans | 1,781,791 | 1,176,973 | ||||
Individually evaluated for impairment | 188 | 12 | ||||
Collectively evaluated for impairment | 19,030 | 12,887 | ||||
Total allowance for loan losses | 19,218 | 18,053 | 12,899 | 13,709 | 13,149 | 13,863 |
Residential real estate | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 14,132 | 11,479 | ||||
Collectively evaluated for impairment | 989,567 | 425,637 | ||||
Total loans | 1,003,699 | 437,116 | ||||
Individually evaluated for impairment | 29 | 39 | ||||
Collectively evaluated for impairment | 2,936 | 1,097 | ||||
Total allowance for loan losses | 2,965 | 2,719 | 1,136 | 1,277 | 1,305 | 1,606 |
Consumer | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 87 | 2 | ||||
Collectively evaluated for impairment | 44,271 | 17,764 | ||||
Total loans | 44,358 | 17,766 | ||||
Individually evaluated for impairment | 84 | 0 | ||||
Collectively evaluated for impairment | 249 | 235 | ||||
Total allowance for loan losses | $ 333 | $ 318 | $ 235 | $ 239 | $ 351 | $ 288 |
Loans - Impaired Financing Rece
Loans - Impaired Financing Receivables (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with no related allowance recorded - Unpaid Principal Balance | $ 38,569 | $ 30,171 |
Impaired loans with no related allowance recorded - Recorded Investment | 37,853 | 29,498 |
Impaired loans with no related allowance recorded - Average Recorded Investment | 23,458 | 21,806 |
Impaired loans with an allowance recorded - Unpaid Principal Balance | 4,168 | 4,455 |
Impaired loans with an allowance recorded - Recorded Investment | 4,034 | 4,224 |
Impaired loans with an allowance recorded - Allowance for Loan Losses Allocated | 1,335 | 2,568 |
Impaired loans with an allowance recorded - Average Recorded Investment | 2,730 | 2,894 |
Impaired loans - Unpaid Principal Balance | 42,737 | 34,626 |
Impaired loans - Recorded Investment | 41,887 | 33,722 |
Impaired loans - Average Recorded Investment | 26,188 | 24,700 |
Commercial | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with no related allowance recorded - Unpaid Principal Balance | 13,937 | 14,619 |
Impaired loans with no related allowance recorded - Recorded Investment | 13,438 | 13,982 |
Impaired loans with no related allowance recorded - Average Recorded Investment | 9,609 | 10,637 |
Impaired loans with an allowance recorded - Unpaid Principal Balance | 3,256 | 3,666 |
Impaired loans with an allowance recorded - Recorded Investment | 3,122 | 3,478 |
Impaired loans with an allowance recorded - Allowance for Loan Losses Allocated | 1,034 | 2,517 |
Impaired loans with an allowance recorded - Average Recorded Investment | 2,426 | 2,375 |
Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with no related allowance recorded - Unpaid Principal Balance | 10,693 | 4,795 |
Impaired loans with no related allowance recorded - Recorded Investment | 10,312 | 4,706 |
Impaired loans with no related allowance recorded - Average Recorded Investment | 5,031 | 3,943 |
Impaired loans with an allowance recorded - Unpaid Principal Balance | 796 | 124 |
Impaired loans with an allowance recorded - Recorded Investment | 796 | 75 |
Impaired loans with an allowance recorded - Allowance for Loan Losses Allocated | 188 | 12 |
Impaired loans with an allowance recorded - Average Recorded Investment | 265 | 57 |
Residential real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with no related allowance recorded - Unpaid Principal Balance | 13,939 | 10,754 |
Impaired loans with no related allowance recorded - Recorded Investment | 14,103 | 10,808 |
Impaired loans with no related allowance recorded - Average Recorded Investment | 8,818 | 7,223 |
Impaired loans with an allowance recorded - Unpaid Principal Balance | 29 | 665 |
Impaired loans with an allowance recorded - Recorded Investment | 29 | 671 |
Impaired loans with an allowance recorded - Allowance for Loan Losses Allocated | 29 | 39 |
Impaired loans with an allowance recorded - Average Recorded Investment | 10 | 462 |
Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with no related allowance recorded - Unpaid Principal Balance | 0 | 3 |
Impaired loans with no related allowance recorded - Recorded Investment | 0 | 2 |
Impaired loans with no related allowance recorded - Average Recorded Investment | 0 | $ 3 |
Impaired loans with an allowance recorded - Unpaid Principal Balance | 87 | |
Impaired loans with an allowance recorded - Recorded Investment | 87 | |
Impaired loans with an allowance recorded - Allowance for Loan Losses Allocated | 84 | |
Impaired loans with an allowance recorded - Average Recorded Investment | $ 29 |
Loans - Credit Risk Profile bas
Loans - Credit Risk Profile based on Bank’s Rating Categories (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 5,572,473 | $ 4,046,642 |
Non-Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 5,499,982 | 3,979,743 |
Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 72,491 | 66,899 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,742,625 | 2,414,787 |
Commercial | Non-Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,710,397 | 2,384,275 |
Commercial | Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 32,228 | 30,512 |
Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,781,791 | 1,176,973 |
Commercial real estate | Non-Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,750,480 | 1,146,673 |
Commercial real estate | Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 31,311 | 30,300 |
Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,003,699 | 437,116 |
Residential real estate | Non-Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 994,835 | 431,033 |
Residential real estate | Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 8,864 | 6,083 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 44,358 | 17,766 |
Consumer | Non-Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 44,270 | 17,762 |
Consumer | Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 88 | $ 4 |
Loans - Aging of Loan Portfolio
Loans - Aging of Loan Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 5,572,473 | $ 4,046,642 |
Loans Greater than 90 Days Past Due, Still Accruing | 459 | 1,061 |
Nonaccrual | 33,572 | 27,327 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 2,742,625 | 2,414,787 |
Loans Greater than 90 Days Past Due, Still Accruing | 261 | 0 |
Nonaccrual | 15,745 | 16,492 |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,781,791 | 1,176,973 |
Loans Greater than 90 Days Past Due, Still Accruing | 0 | 1,061 |
Nonaccrual | 8,936 | 4,781 |
Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,003,699 | 437,116 |
Loans Greater than 90 Days Past Due, Still Accruing | 198 | 0 |
Nonaccrual | 8,804 | 6,052 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 44,358 | 17,766 |
Loans Greater than 90 Days Past Due, Still Accruing | 0 | 0 |
Nonaccrual | 87 | 2 |
Loans Not Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 5,525,250 | 3,995,028 |
Loans Not Past Due | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 2,720,683 | 2,392,205 |
Loans Not Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,771,809 | 1,160,244 |
Loans Not Past Due | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 988,528 | 424,860 |
Loans Not Past Due | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 44,230 | 17,719 |
Loans 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 7,180 | 22,193 |
Loans 30-59 Days Past Due | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 4,431 | 5,467 |
Loans 30-59 Days Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 681 | 10,887 |
Loans 30-59 Days Past Due | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 2,027 | 5,794 |
Loans 30-59 Days Past Due | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 41 | 45 |
Loans 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 6,012 | 1,033 |
Loans 60-89 Days Past Due | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,505 | 623 |
Loans 60-89 Days Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 365 | 0 |
Loans 60-89 Days Past Due | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 4,142 | 410 |
Loans 60-89 Days Past Due | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 0 | $ 0 |
Loans - Troubled Debt Restructu
Loans - Troubled Debt Restructuring (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 USD ($) loan | Sep. 30, 2022 USD ($) security loan | Dec. 31, 2021 USD ($) loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 3 | 12 | |
Pre-Modification Outstanding Recorded Investment | $ 446 | $ 10,650 | |
Post-Modification Outstanding Recorded Investment | $ 396 | $ 396 | $ 9,878 |
Commercial | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 1 | 7 | |
Pre-Modification Outstanding Recorded Investment | $ 248 | $ 6,969 | |
Post-Modification Outstanding Recorded Investment | $ 198 | $ 6,178 | |
Residential real estate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 1 | 4 | |
Pre-Modification Outstanding Recorded Investment | $ 126 | $ 1,386 | |
Post-Modification Outstanding Recorded Investment | $ 126 | $ 1,435 | |
Consumer | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | security | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 72 | ||
Post-Modification Outstanding Recorded Investment | $ 72 | ||
Commercial real estate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 2,295 | ||
Post-Modification Outstanding Recorded Investment | $ 2,265 |
Mortgage Servicing Rights - Unp
Mortgage Servicing Rights - Unpaid Principal Loan Balance of Servicing Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Unpaid Principal Balance Of Servicing Portfolio [Line Items] | ||
Unpaid principal loan balance | $ 5,095,166 | $ 4,761,832 |
Federal National Mortgage Association | ||
Financing Receivable, Unpaid Principal Balance Of Servicing Portfolio [Line Items] | ||
Unpaid principal loan balance | 2,499,105 | 2,352,981 |
Federal Home Loan Mortgage Corporation | ||
Financing Receivable, Unpaid Principal Balance Of Servicing Portfolio [Line Items] | ||
Unpaid principal loan balance | 1,627,381 | 1,512,858 |
Government National Mortgage Association | ||
Financing Receivable, Unpaid Principal Balance Of Servicing Portfolio [Line Items] | ||
Unpaid principal loan balance | 852,490 | 759,524 |
Federal Home Loan Bank | ||
Financing Receivable, Unpaid Principal Balance Of Servicing Portfolio [Line Items] | ||
Unpaid principal loan balance | 114,747 | 134,616 |
Other | ||
Financing Receivable, Unpaid Principal Balance Of Servicing Portfolio [Line Items] | ||
Unpaid principal loan balance | $ 1,443 | $ 1,853 |
Mortgage Servicing Rights - Mor
Mortgage Servicing Rights - Mortgage Servicing Rights at Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Balance, beginning of period | $ 66,047 | $ 40,844 | $ 47,392 | $ 29,144 |
Servicing resulting from transfers of financial assets | 3,489 | 5,303 | 11,681 | 18,533 |
Due to changes in valuation inputs or assumptions used in the valuation model | 6,270 | 948 | 21,142 | 5,209 |
Changes in fair value due to pay-offs, pay-downs, and runoff | (1,956) | (3,124) | (6,365) | (8,915) |
Balance, end of period | $ 73,850 | $ 43,971 | $ 73,850 | $ 43,971 |
Mortgage Servicing Rights - Wei
Mortgage Servicing Rights - Weighted-average Key Assumptions to Estimate Fair Value of MSRs (Details) - uSDPerLoan | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | |||
Discount rate | 9.34% | 9.22% | 9.22% |
Total prepayment speeds | 7.43% | 12.15% | 11.52% |
Cost of servicing each loan | 87 | 86 | 85 |
Mortgage Servicing Rights - Sch
Mortgage Servicing Rights - Schedule of Servicing and Ancillary Fees from Mortgage Servicing Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Transfers and Servicing [Abstract] | ||||
Servicing fees | $ 4,111 | $ 3,101 | $ 10,807 | $ 8,853 |
Late and ancillary fees | 123 | 118 | 264 | 317 |
Total | $ 4,234 | $ 3,219 | $ 11,071 | $ 9,170 |
Derivative Financial Instrume_3
Derivative Financial Instruments - The Components Of Derivative Financial Instruments (Details) $ in Thousands | Sep. 30, 2022 USD ($) transaction | Dec. 31, 2021 USD ($) transaction |
Forward MBS trades | ||
Assets | ||
Outstanding Notional | $ 123,000 | $ 450,600 |
Estimated Fair Value | 5,012 | 1,329 |
Liabilities: | ||
Outstanding Notional | 20,300 | 16,600 |
Estimated Fair Value | 845 | 52 |
Interest rate lock commitments (IRLC) | ||
Assets | ||
Outstanding Notional | 142,334 | |
Estimated Fair Value | $ 1,350 | |
Liabilities: | ||
Outstanding Notional | 99,368 | |
Estimated Fair Value | $ 1,439 | |
Interest rate lock commitments (IRLC) | Derivative financial instruments designated as hedging instruments: | ||
Assets | ||
Number of Transactions | transaction | 32 | 1 |
Outstanding Notional | $ 204,216 | $ 20,190 |
Estimated Fair Value | $ 16,717 | $ 1,213 |
Liabilities: | ||
Number of Transactions | transaction | 12 | |
Outstanding Notional | $ 179,431 | |
Estimated Fair Value | $ 7,107 | |
Interest rate lock commitments (IRLC) | Derivative financial instruments not designated as hedging instruments: | ||
Assets | ||
Number of Transactions | transaction | 41 | 38 |
Outstanding Notional | $ 275,765 | $ 232,849 |
Estimated Fair Value | $ 26,642 | $ 6,923 |
Liabilities: | ||
Number of Transactions | transaction | 41 | 38 |
Outstanding Notional | $ 275,765 | $ 232,849 |
Estimated Fair Value | $ 25,987 | $ 7,366 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Gains And Losses On Banking Derivatives Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Banking Derivative Assets | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recorded gain (loss) on banking derivative | $ 15,123 | $ (186) | $ 30,192 | $ (420) |
Banking Derivative Liability | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recorded gain (loss) on banking derivative | (14,771) | 337 | (29,095) | 926 |
Mortgage Banking Derivative Asset | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recorded gain (loss) on banking derivative | 3,277 | 9,175 | 5,189 | (302) |
Mortgage Banking Derivative Liability | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recorded gain (loss) on banking derivative | $ (2,844) | $ (10,241) | $ (16,940) | $ (7,714) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Derivative [Line Items] | |||||
Fair value of derivatives in a net liability position | $ 26,125,000 | $ 26,125,000 | $ 14,882,000 | ||
Posted collateral aggregate fair value | 9,090,000 | 9,090,000 | 14,970,000 | ||
Loans Receivable | |||||
Derivative [Line Items] | |||||
Carrying amount of hedged loans receivable | 144,506,000 | 144,506,000 | 205,235,000 | ||
Cumulative amount of fair value hedging adjustment | (13,491,000) | (13,491,000) | 5,614,000 | ||
Available-for-sale securities | |||||
Derivative [Line Items] | |||||
Carrying amount of hedged loans receivable | 36,268,000 | 36,268,000 | $ 0 | ||
Cumulative amount of fair value hedging adjustment | 2,536,000 | 2,536,000 | |||
Derivative financial instruments not designated as hedging instruments: | |||||
Derivative [Line Items] | |||||
Fee income | $ 492,000 | $ 246,000 | $ 1,294,000 | $ 1,080,000 |
Deposits - Composition of Depos
Deposits - Composition of Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Statistical Disclosure for Banks [Abstract] | ||
Noninterest-bearing demand deposit accounts | $ 1,946,215 | $ 1,566,113 |
Interest-bearing deposit accounts: | ||
Interest-bearing demand accounts | 160,082 | 187,712 |
Savings accounts and money market accounts | 3,008,433 | 2,757,882 |
NOW accounts | 46,128 | 19,496 |
Certificate of deposit accounts: | ||
Less than $100 | 216,331 | 147,386 |
$100 through $250 | 224,999 | 103,082 |
Greater than $250 | 158,230 | 73,277 |
Total interest-bearing deposit accounts | 3,814,203 | 3,288,835 |
Total deposits | $ 5,760,418 | $ 4,854,948 |
Deposits - Interest Expense Inc
Deposits - Interest Expense Incurred on Deposits (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Interest-bearing deposit accounts: | ||||
Interest-bearing demand accounts | $ 449 | $ 89 | $ 733 | $ 300 |
Savings accounts and money market accounts | 1,859 | 1,155 | 4,095 | 3,668 |
NOW accounts | 46 | 50 | 115 | 336 |
Certificate of deposit accounts | 920 | 684 | 2,077 | 2,427 |
Total interest-bearing deposit accounts | $ 3,274 | $ 1,978 | $ 7,020 | $ 6,731 |
Deposits - Remaining Maturity o
Deposits - Remaining Maturity on Certificate of Deposit Accounts (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Maturities of Time Deposits [Abstract] | |
Remainder of 2022 | $ 1,085 |
2023 | 382,847 |
2024 | 119,617 |
2025 | 71,858 |
2026 | 13,429 |
2027 | 7,629 |
Thereafter | 3,095 |
Total certificate of deposit accounts | $ 599,560 |
Securities Sold Under Agreeme_3
Securities Sold Under Agreements to Repurchase (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Carrying Value of Securities Sold under Repurchase Agreements and Deposits Received for Securities Loaned [Abstract] | ||
Amount outstanding at period-end | $ 51,256 | $ 92,093 |
Average daily balance during the period | $ 59,573 | $ 125,867 |
Average interest rate during the period | 0.22% | 0.05% |
Maximum month-end balance during the period | $ 70,838 | $ 160,865 |
Weighted average interest rate at period-end | 0.40% | 0.05% |
Securities sold under agreements to repurchase, pledged securities | $ 58,642 | $ 108,714 |
Debt - FHLB Advances and Other
Debt - FHLB Advances and Other Borrowings Outstanding (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Short-term Debt [Line Items] | ||
Federal Home Loan Bank advances | $ 310,872 | $ 40,000 |
Variable rate line-of-credit advance | Federal Home Loan Bank stock | ||
Short-term Debt [Line Items] | ||
Federal Home Loan Bank advances | $ 170,884 | 0 |
Weighted Average Rate | 3% | |
Variable rate line-of-credit advance | Federal Home Loan Bank stock | Minimum | ||
Short-term Debt [Line Items] | ||
Weighted Average Rate | 2.42% | |
Variable rate line-of-credit advance | Federal Home Loan Bank stock | Maximum | ||
Short-term Debt [Line Items] | ||
Weighted Average Rate | 3.16% | |
Fixed rate term advances | Federal Home Loan Bank stock | ||
Short-term Debt [Line Items] | ||
Federal Home Loan Bank advances | $ 139,988 | $ 40,000 |
Weighted Average Rate | 1.77% | 1.49% |
Fixed rate term advances | Federal Home Loan Bank stock | Minimum | ||
Short-term Debt [Line Items] | ||
Debt effective interest rate | 1.56% | 0.91% |
Fixed rate term advances | Federal Home Loan Bank stock | Maximum | ||
Short-term Debt [Line Items] | ||
Debt effective interest rate | 1.90% | 2.59% |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
Nov. 10, 2022 USD ($) | Jan. 13, 2022 USD ($) | Oct. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Aug. 31, 2020 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jun. 19, 2017 USD ($) | |
Debt Conversion [Line Items] | |||||||||||
Loans pledged to the FHLB | $ 1,546,157,000 | $ 1,546,157,000 | $ 1,180,493,000 | ||||||||
Total borrowing capacity with the FHLB | 954,016,000 | 954,016,000 | 597,915,000 | ||||||||
Additional borrowing availability with the FHLB | 659,479,000 | 659,479,000 | |||||||||
Trust preferred securities, aggregate liquidation valuation amount | 419,000 | 419,000 | |||||||||
Subsequent Event | |||||||||||
Debt Conversion [Line Items] | |||||||||||
FHLB advances called and repaid | $ 65,000,000 | $ 50,000,000 | |||||||||
Interest rate of FHLB advances | 1.90% | 1.56% | |||||||||
Trust Preferred Securities Subject to Mandatory Redemption | New Mexico Banquest Capital Trust I (NMBCT I) | |||||||||||
Debt Conversion [Line Items] | |||||||||||
Debt instrument, face amount | 9,279,000 | 9,279,000 | |||||||||
Trust Preferred Securities Subject to Mandatory Redemption | New Mexico Banquest Capital Trust II (NMBCT II) | |||||||||||
Debt Conversion [Line Items] | |||||||||||
Debt instrument, face amount | 4,640,000 | 4,640,000 | |||||||||
Convertible Notes Payable | Convertible Debt | |||||||||||
Debt Conversion [Line Items] | |||||||||||
Debt instrument, face amount | $ 5,456,000 | $ 5,456,000 | 20,673,000 | ||||||||
Debt instrument, interest rate | 3.29% | 3.29% | |||||||||
Convertible debt, conversion ratio | 0.0156717 | ||||||||||
Debt discount on the convertible notes | $ 139,000 | $ 139,000 | $ 1,231,000 | $ 4,682,000 | |||||||
Amortization of debt discount | 38,000 | $ 186,000 | 1,093,000 | $ 559,000 | |||||||
Subordinated Notes Due July 1, 2030 | Subordinated Debt | |||||||||||
Debt Conversion [Line Items] | |||||||||||
Debt instrument, face amount | $ 40,000,000 | ||||||||||
Debt instrument, interest rate | 6% | ||||||||||
Debt redemption period from issuance date | 5 years | ||||||||||
Costs related to the issuance of the subordinated notes | $ 933,000 | ||||||||||
Subordinated Notes Due January 15, 2032 | Subordinated Debt | |||||||||||
Debt Conversion [Line Items] | |||||||||||
Debt instrument, face amount | $ 25,000,000 | ||||||||||
Debt instrument, interest rate | 3.375% | ||||||||||
Costs related to the issuance of the subordinated notes | $ 534,000 | ||||||||||
Subordinated Debt related to Trust Preferred Securities | Subordinated Debt | |||||||||||
Debt Conversion [Line Items] | |||||||||||
Debt instrument, face amount | 13,919,000 | 13,919,000 | |||||||||
Debt discount on the convertible notes | 4,293,000 | 4,293,000 | |||||||||
Line of Credit | Other Financial Institutions | |||||||||||
Debt Conversion [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 155,000,000 | 155,000,000 | |||||||||
Amount drawn from line of credit | $ 0 | ||||||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Subordinated Notes Due July 1, 2030 | Subordinated Debt | |||||||||||
Debt Conversion [Line Items] | |||||||||||
Interest rate margin on variable rate basis | 5.89% | ||||||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Subordinated Notes Due January 15, 2032 | Subordinated Debt | |||||||||||
Debt Conversion [Line Items] | |||||||||||
Interest rate margin on variable rate basis | 2.03% | ||||||||||
London Interbank Offered Rate (LIBOR) | Trust Preferred Securities Subject to Mandatory Redemption | New Mexico Banquest Capital Trust I (NMBCT I) | |||||||||||
Debt Conversion [Line Items] | |||||||||||
Interest rate margin on variable rate basis | 3.35% | ||||||||||
Debt effective interest rate | 5.60% | 3.50% | 5.60% | 3.50% | |||||||
London Interbank Offered Rate (LIBOR) | Trust Preferred Securities Subject to Mandatory Redemption | New Mexico Banquest Capital Trust II (NMBCT II) | |||||||||||
Debt Conversion [Line Items] | |||||||||||
Interest rate margin on variable rate basis | 2% | ||||||||||
Debt effective interest rate | 4.96% | 2.15% | 4.96% | 2.15% | |||||||
Federal Reserve Bank stock | Line of Credit | |||||||||||
Debt Conversion [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 6,499,000 | $ 6,499,000 | |||||||||
Federal Reserve Bank stock | Fed Funds target rate | Line of Credit | |||||||||||
Debt Conversion [Line Items] | |||||||||||
Interest rate margin on variable rate basis | 0.50% |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income applicable to common stockholders, basic | $ 26,513 | $ 8,728 | $ 34,612 | $ 34,347 |
Net income applicable to common stockholders, diluted | $ 26,513 | $ 8,728 | $ 34,612 | $ 34,347 |
Weighted Average Shares | ||||
Weighted average common shares outstanding (in shares) | 24,877,607 | 18,321,659 | 22,685,496 | 18,321,659 |
Effect of dilutive securities | ||||
Stock-based awards (in shares) | 531,208 | 449,022 | 596,437 | 440,838 |
Convertible notes payable (in shares) | 85,500 | 0 | 0 | 0 |
Weighted average diluted common shares (in shares) | 25,494,315 | 18,770,681 | 23,281,933 | 18,762,497 |
Earnings per common share | ||||
Basic earnings per common share (in usd per share) | $ 1.07 | $ 0.48 | $ 1.53 | $ 1.87 |
Effect of dilutive securities | ||||
Stock-based awards (in usd per share) | (0.03) | (0.02) | (0.04) | (0.04) |
Diluted earnings per common share (in usd per share) | $ 1.04 | $ 0.46 | $ 1.49 | $ 1.83 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Convertible notes payable | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded from computation of diluted earnings per share (in shares) | 323,984 | 85,500 | 323,984 | |
Stock-based awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded from computation of diluted earnings per share (in shares) | 845 | 845 | 34,828 | 34,828 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | $ 727,542 | $ 510,582 | $ 524,038 | $ 485,787 |
Income tax effect | (3,669) | 263 | (44,770) | (1,714) |
Balance, ending of period | 750,653 | 519,921 | 750,653 | 519,921 |
Securities available-for-sale: | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (40,535) | 7,142 | 1,664 | 9,119 |
Unrealized (loss) gain | (6,613) | 349 | (62,473) | (2,270) |
Income tax effect | 1,506 | (86) | 15,167 | 556 |
Net unrealized (loss) gain | (5,107) | 263 | (47,306) | (1,714) |
Balance, ending of period | (45,642) | 7,405 | (45,642) | 7,405 |
Fair value hedges of securities available-for-sale: | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | 1,098 | 0 | 0 | 0 |
Unrealized (loss) gain | 1,821 | 0 | 3,211 | 0 |
Income tax effect | (383) | 0 | (675) | 0 |
Net unrealized (loss) gain | 1,438 | 0 | 2,536 | 0 |
Balance, ending of period | $ 2,536 | $ 0 | $ 2,536 | $ 0 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
May 31, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Oct. 18, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Exercised (in shares) | 67,976 | ||||||
Option awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 0 | ||||||
Exercised (in shares) | 255,453 | ||||||
Intrinsic value of the stock options | $ 1,346 | $ 1,346 | |||||
FirstSun Capital Bancorp 2017 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Aggregate shares of common stock (in shares) | 1,977,292 | 1,977,292 | |||||
Granted (in shares) | 0 | ||||||
Forfeited (in shares) | 0 | ||||||
Total unrecognized compensation cost related to non-vested stock options granted | $ 720 | $ 720 | |||||
Total unrecognized compensation cost related to non-vested stock options granted, period | 3 years | ||||||
Intrinsic value of the stock options | 14,237 | $ 14,237 | $ 18,042 | ||||
FirstSun Capital Bancorp 2021 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Aggregate shares of common stock (in shares) | 2,476,571 | ||||||
Total unrecognized compensation cost related to non-vested stock options granted | 2,423 | 2,423 | |||||
Issued restricted stock with performance conditions | 11,344,000 | ||||||
FirstSun Capital Bancorp Long-Term Incentive Plan ("LTIP") | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total unrecognized compensation cost related to non-vested stock options granted | 236 | $ 236 | |||||
Issued restricted stock with performance conditions | 81,484,000 | ||||||
FirstSun Capital Bancorp 2017, 2021 And 2022 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based payment arrangement, compensation cost | $ 473 | $ 348 | $ 1,093 | $ 1,501 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary Of Stock Option Activity (Details) - $ / shares | 9 Months Ended |
Sep. 30, 2022 | |
Shares | |
Outstanding, beginning balance (in shares) | 1,412,900 |
Exercised (in shares) | (67,976) |
Weighted-Average Exercise Price, per Share | |
Outstanding, beginning balance (in dollars per share) | $ 20.19 |
Exercised (in dollars per share) | $ 19.72 |
Option awards | |
Shares | |
Outstanding, beginning balance (in shares) | 0 |
Options assumed from Pioneer Bancshares, Inc. (in shares) | 431,645 |
Exercised (in shares) | (255,453) |
Outstanding, ending balance (in shares) | 176,192 |
Options vested or expected to vest (in shares) | 176,192 |
Options exercisable, end of period (in shares) | 176,192 |
Weighted-Average Exercise Price, per Share | |
Outstanding, beginning balance (in dollars per share) | $ 0 |
Options assumed from Pioneer Bancshares, Inc. (in dollars per share) | 23.32 |
Exercised (in dollars per share) | 23.44 |
Outstanding, ending balance (in dollars per share) | 23.12 |
Weighted-average exercise price, options vested or expected to vest (in dollars per share) | 23.12 |
Weighted-average exercise price, options exercisable, end of period (in dollars per share) | $ 23.12 |
Weighted-Average Remaining Contractual Term (years) | |
Outstanding | 5 years 7 months 9 days |
Options exercisable | 5 years 7 months 9 days |
2017 Equity Incentive Plan | |
Shares | |
Outstanding, ending balance (in shares) | 1,344,924 |
Options vested or expected to vest (in shares) | 1,412,900 |
Options exercisable, end of period (in shares) | 1,228,041 |
Weighted-Average Exercise Price, per Share | |
Outstanding, ending balance (in dollars per share) | $ 20.21 |
Weighted-average exercise price, options vested or expected to vest (in dollars per share) | 20.19 |
Weighted-average exercise price, options exercisable, end of period (in dollars per share) | $ 20.02 |
Weighted-Average Remaining Contractual Term (years) | |
Outstanding | 5 years 5 months 26 days |
Options exercisable | 5 years 3 months 14 days |
Income Taxes - Provision For In
Income Taxes - Provision For Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 7,628 | $ 1,851 | $ 8,559 | $ 7,159 |
Effective tax provision rate | 22.30% | 17.50% | 19.80% | 17.20% |
Regulatory Capital Matters (Det
Regulatory Capital Matters (Details) $ in Thousands | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Parent Company | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total risk-based capital to risk-weighted assets, actual amount | $ 791,066 | $ 563,112 |
Total risk-based capital to risk-weighted assets, actual ratio | 0.1206 | 0.1176 |
Total risk-based capital to risk-weighted assets, capital adequacy purposes, amount | $ 524,601 | $ 383,213 |
Total risk-based capital to risk-weighted assets, capital adequacy purposes, ratio | 0.0800 | 0.0800 |
Tier 1 risk-based capital to risk-weighted assets, actual amount | $ 655,345 | $ 464,761 |
Tier 1 risk-based capital to risk-weighted assets, actual ratio | 0.0999 | 0.0970 |
Tier 1 risk-based capital to risk-weighted assets, capital adequacy purposes, amount | $ 393,451 | $ 287,410 |
Tier 1 risk-based capital to risk-weighted assets, capital adequacy purposes, ratio | 0.0600 | 0.0600 |
Common Equity Tier 1 (CET 1) to risk-weighted assets, actual amount | $ 655,345 | $ 464,761 |
Common Equity Tier 1 (CET 1) to risk-weighted assets, actual ratio | 0.0999 | 0.0970 |
Common Equity Tier 1 (CET 1) to risk-weighted assets, capital adequacy purposes, amount | $ 295,088 | $ 215,557 |
Common Equity Tier 1 (CET 1) to risk-weighted assets, capital adequacy purposes, ratio | 0.0450 | 0.0450 |
Tier 1 leverage capital to average assets, actual amount | $ 655,345 | $ 464,761 |
Tier 1 leverage capital to average assets, actual ratio | 0.0955 | 0.0824 |
Tier 1 leverage capital to average assets, capital adequacy purposes, amount | $ 274,564 | $ 225,736 |
Tier 1 leverage capital to average assets, capital adequacy purposes, ratio | 0.0400 | 0.0400 |
Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total risk-based capital to risk-weighted assets, actual amount | $ 776,038 | $ 571,463 |
Total risk-based capital to risk-weighted assets, actual ratio | 0.1186 | 0.1196 |
Total risk-based capital to risk-weighted assets, capital adequacy purposes, amount | $ 523,395 | $ 382,106 |
Total risk-based capital to risk-weighted assets, capital adequacy purposes, ratio | 0.0800 | 0.0800 |
Total risk-based capital to risk-weighted assets, to be well-capitalized under prompt corrective action provisions, amount | $ 654,243 | $ 477,633 |
Total risk-based capital to risk-weighted assets, to be well-capitalized under prompt corrective action provisions, ratio | 0.1000 | 0.1000 |
Tier 1 risk-based capital to risk-weighted assets, actual amount | $ 715,097 | $ 523,128 |
Tier 1 risk-based capital to risk-weighted assets, actual ratio | 0.1093 | 0.1095 |
Tier 1 risk-based capital to risk-weighted assets, capital adequacy purposes, amount | $ 392,546 | $ 286,580 |
Tier 1 risk-based capital to risk-weighted assets, capital adequacy purposes, ratio | 0.0600 | 0.0600 |
Tier 1 risk-based capital to risk-weighted assets, to be well-capitalized under prompt corrective action provisions, amount | $ 523,395 | $ 382,106 |
Tier 1 risk-based capital to risk-weighted assets, to be well-capitalized under prompt corrective action provisions, ratio | 0.0800 | 0.0800 |
Common Equity Tier 1 (CET 1) to risk-weighted assets, actual amount | $ 715,097 | $ 523,128 |
Common Equity Tier 1 (CET 1) to risk-weighted assets, actual ratio | 0.1093 | 0.1095 |
Common Equity Tier 1 (CET 1) to risk-weighted assets, capital adequacy purposes, amount | $ 294,409 | $ 214,935 |
Common Equity Tier 1 (CET 1) to risk-weighted assets, capital adequacy purposes, ratio | 0.0450 | 0.0450 |
Common Equity Tier 1 (CET 1) to risk-weighted assets, to be well-capitalized under prompt corrective action provisions, amount | $ 425,258 | $ 310,462 |
Common Equity Tier 1 (CET 1) to risk-weighted assets, to be well-capitalized under prompt corrective action provisions, ratio | 0.0650 | 0.0650 |
Tier 1 leverage capital to average assets, actual amount | $ 715,097 | $ 523,128 |
Tier 1 leverage capital to average assets, actual ratio | 0.1042 | 0.0927 |
Tier 1 leverage capital to average assets, capital adequacy purposes, amount | $ 274,489 | $ 225,650 |
Tier 1 leverage capital to average assets, capital adequacy purposes, ratio | 0.0400 | 0.0400 |
Tier 1 leverage capital to average assets, to be well-capitalized under prompt corrective action provisions, amount | $ 343,112 | $ 282,062 |
Tier 1 leverage capital to average assets, to be well-capitalized under prompt corrective action provisions, ratio | 0.0500 | 0.0500 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Mortgage servicing rights | $ 73,850 | $ 66,047 | $ 47,392 | $ 43,971 | $ 40,844 | $ 29,144 |
Fair Value, Recurring | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Available-for-sale securities | 551,165 | 572,501 | ||||
Loans held-for-sale | 67,535 | 103,939 | ||||
Mortgage servicing rights | 73,850 | 47,392 | ||||
Derivative financial instruments - assets | 48,371 | 10,815 | ||||
Derivative financial instruments - liabilities | (28,271) | (14,525) | ||||
Total | 712,650 | 720,122 | ||||
Fair Value, Recurring | Fair Value, Inputs, Level 1 | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Available-for-sale securities | 56,618 | 35,185 | ||||
Loans held-for-sale | 0 | 0 | ||||
Mortgage servicing rights | 0 | 0 | ||||
Derivative financial instruments - assets | 0 | 0 | ||||
Derivative financial instruments - liabilities | 0 | 0 | ||||
Total | 56,618 | 35,185 | ||||
Fair Value, Recurring | Fair Value, Inputs, Level 2 | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Available-for-sale securities | 494,547 | 537,316 | ||||
Loans held-for-sale | 67,535 | 103,939 | ||||
Mortgage servicing rights | 0 | 0 | ||||
Derivative financial instruments - assets | 48,371 | 10,815 | ||||
Derivative financial instruments - liabilities | (28,271) | (14,525) | ||||
Total | 582,182 | 637,545 | ||||
Fair Value, Recurring | Fair Value, Inputs, Level 3 | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Available-for-sale securities | 0 | 0 | ||||
Loans held-for-sale | 0 | 0 | ||||
Mortgage servicing rights | 73,850 | 47,392 | ||||
Derivative financial instruments - assets | 0 | 0 | ||||
Derivative financial instruments - liabilities | 0 | 0 | ||||
Total | $ 73,850 | $ 47,392 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | $ 66,047 | $ 40,844 | $ 47,392 | $ 29,144 |
Total gains (losses) included in earnings | 4,314 | (2,176) | 14,777 | (3,706) |
Purchases, issuances, sales and settlements: | ||||
Issuances | 3,489 | 5,303 | 11,681 | 18,533 |
Balance, end of period | $ 73,850 | $ 43,971 | $ 73,850 | $ 43,971 |
Fair Value Measurements - Fai_3
Fair Value Measurements - Fair Value Measurements, Nonrecurring (Details) - Fair Value, Nonrecurring - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 2,699 | $ 1,656 |
Other real estate owned and foreclosed assets, net | 5,391 | 5,487 |
Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 2,088 | 961 |
Commercial real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 608 | 63 |
Other real estate owned and foreclosed assets, net | 5,391 | 5,067 |
Residential real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 632 |
Other real estate owned and foreclosed assets, net | 0 | 420 |
Consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 3 | $ 0 |
Fair Value Measurements - Fai_4
Fair Value Measurements - Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Assets: | ||
Securities held-to-maturity | $ 34,096 | $ 18,599 |
Restricted equity securities | 34,877 | 16,239 |
Liabilities: | ||
Securities sold under agreements to repurchase | 51,256 | 92,093 |
Carrying Value | ||
Assets: | ||
Cash and cash equivalents | 325,039 | 668,462 |
Securities held-to-maturity | 39,148 | 18,007 |
Loans (excluding impaired loans) | 5,515,103 | 4,003,712 |
Restricted equity securities | 34,877 | 16,239 |
Accrued interest receivable | 24,964 | 14,761 |
Liabilities: | ||
Deposits (excluding demand deposits) | 3,654,121 | 3,101,123 |
Securities sold under agreements to repurchase | 51,256 | 92,093 |
FHLB advances | 310,872 | 40,000 |
Convertible notes payable, net | 5,317 | 19,442 |
Subordinated debt, net | 74,780 | 50,016 |
Accrued interest payable | 3,073 | 2,369 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 325,039 | 668,462 |
Securities held-to-maturity | 34,096 | 18,599 |
Loans (excluding impaired loans) | 5,375,203 | 3,949,719 |
Restricted equity securities | 34,877 | 16,239 |
Accrued interest receivable | 24,964 | 14,761 |
Liabilities: | ||
Deposits (excluding demand deposits) | 3,614,346 | 3,106,464 |
Securities sold under agreements to repurchase | 51,256 | 92,093 |
FHLB advances | 310,872 | 41,514 |
Convertible notes payable, net | 5,340 | 21,564 |
Subordinated debt, net | 83,795 | 52,264 |
Accrued interest payable | 3,073 | 2,369 |
Estimated Fair Value | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 325,039 | 668,462 |
Securities held-to-maturity | 0 | 0 |
Loans (excluding impaired loans) | 0 | 0 |
Restricted equity securities | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Liabilities: | ||
Deposits (excluding demand deposits) | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
FHLB advances | 0 | 0 |
Convertible notes payable, net | 0 | 0 |
Subordinated debt, net | 0 | 0 |
Accrued interest payable | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities held-to-maturity | 34,096 | 18,599 |
Loans (excluding impaired loans) | 0 | 0 |
Restricted equity securities | 34,877 | 16,239 |
Accrued interest receivable | 2,415 | 1,131 |
Liabilities: | ||
Deposits (excluding demand deposits) | 3,614,346 | 3,106,464 |
Securities sold under agreements to repurchase | 51,256 | 92,093 |
FHLB advances | 310,872 | 41,514 |
Convertible notes payable, net | 5,340 | 21,564 |
Subordinated debt, net | 83,795 | 52,264 |
Accrued interest payable | 3,073 | 2,369 |
Estimated Fair Value | Level 3 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities held-to-maturity | 0 | 0 |
Loans (excluding impaired loans) | 5,375,203 | 3,949,719 |
Restricted equity securities | 0 | 0 |
Accrued interest receivable | 22,549 | 13,630 |
Liabilities: | ||
Deposits (excluding demand deposits) | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
FHLB advances | 0 | 0 |
Convertible notes payable, net | 0 | 0 |
Subordinated debt, net | 0 | 0 |
Accrued interest payable | $ 0 | $ 0 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 9 Months Ended |
Sep. 30, 2022 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||
Net interest income | $ 68,486 | $ 39,965 | $ 168,356 | $ 114,782 | |
Provision for (benefit from) loan losses | 3,750 | 3,500 | 12,450 | 1,750 | |
Noninterest income: | |||||
Service charges on deposit accounts | 4,807 | 3,471 | 13,111 | 8,659 | |
Credit and debit card fees | 3,103 | 2,472 | 8,508 | 7,140 | |
Trust and investment advisory fees | 1,552 | 1,974 | 5,408 | 5,871 | |
Income from mortgage banking services, net | 13,785 | 20,151 | 40,017 | 68,144 | |
Other noninterest income | 1,706 | 616 | 3,904 | 5,034 | |
Total noninterest income | 24,953 | 28,684 | 70,948 | 94,848 | |
Noninterest expense: | |||||
Salary and employee benefits | 32,508 | 36,061 | 101,981 | 113,129 | |
Occupancy and equipment | 8,216 | 6,643 | 22,802 | 19,867 | |
Other noninterest expenses | 14,824 | 11,866 | 58,900 | 33,378 | |
Total noninterest expense | 55,548 | 54,570 | 183,683 | 166,374 | |
Income (loss) before income taxes | 34,141 | 10,579 | 43,171 | 41,506 | |
Other Information | |||||
Depreciation expense | 1,920 | 1,537 | 5,305 | 4,716 | |
Identifiable assets | 7,052,917 | 5,683,085 | 7,052,917 | 5,683,085 | $ 5,666,814 |
Operating Segments | Banking | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 68,159 | 39,297 | 167,606 | 112,517 | |
Provision for (benefit from) loan losses | 3,223 | 3,543 | 9,853 | 2,124 | |
Noninterest income: | |||||
Service charges on deposit accounts | 4,807 | 3,471 | 13,111 | 8,659 | |
Credit and debit card fees | 3,103 | 2,472 | 8,508 | 7,140 | |
Trust and investment advisory fees | 1,552 | 1,974 | 5,408 | 5,871 | |
Income from mortgage banking services, net | (701) | (406) | (1,972) | (1,516) | |
Other noninterest income | 1,706 | 616 | 3,913 | 5,041 | |
Total noninterest income | 10,467 | 8,127 | 28,968 | 25,195 | |
Noninterest expense: | |||||
Salary and employee benefits | 23,210 | 22,604 | 69,880 | 70,111 | |
Occupancy and equipment | 7,190 | 5,854 | 19,937 | 17,535 | |
Other noninterest expenses | 11,146 | 8,361 | 46,203 | 22,072 | |
Total noninterest expense | 41,546 | 36,819 | 136,020 | 109,718 | |
Income (loss) before income taxes | 33,857 | 7,062 | 50,701 | 25,870 | |
Other Information | |||||
Depreciation expense | 1,839 | 1,516 | 5,011 | 4,428 | |
Identifiable assets | 6,315,984 | 5,070,287 | 6,315,984 | 5,070,287 | |
Operating Segments | Mortgage Operations | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 1,492 | 1,810 | 5,193 | 5,674 | |
Provision for (benefit from) loan losses | 527 | (43) | 2,597 | (374) | |
Noninterest income: | |||||
Service charges on deposit accounts | 0 | 0 | 0 | 0 | |
Credit and debit card fees | 0 | 0 | 0 | 0 | |
Trust and investment advisory fees | 0 | 0 | 0 | 0 | |
Income from mortgage banking services, net | 14,486 | 20,557 | 41,989 | 69,660 | |
Other noninterest income | 0 | 0 | (9) | (7) | |
Total noninterest income | 14,486 | 20,557 | 41,980 | 69,653 | |
Noninterest expense: | |||||
Salary and employee benefits | 8,922 | 13,166 | 30,854 | 42,238 | |
Occupancy and equipment | 988 | 787 | 2,826 | 2,329 | |
Other noninterest expenses | 3,314 | 2,915 | 10,439 | 9,237 | |
Total noninterest expense | 13,224 | 16,868 | 44,119 | 53,804 | |
Income (loss) before income taxes | 2,227 | 5,542 | 457 | 21,897 | |
Other Information | |||||
Depreciation expense | 81 | 21 | 294 | 288 | |
Identifiable assets | 693,473 | 578,475 | 693,473 | 578,475 | |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | (1,165) | (1,142) | (4,443) | (3,409) | |
Provision for (benefit from) loan losses | 0 | 0 | 0 | 0 | |
Noninterest income: | |||||
Service charges on deposit accounts | 0 | 0 | 0 | 0 | |
Credit and debit card fees | 0 | 0 | 0 | 0 | |
Trust and investment advisory fees | 0 | 0 | 0 | 0 | |
Income from mortgage banking services, net | 0 | 0 | 0 | 0 | |
Other noninterest income | 0 | 0 | 0 | 0 | |
Total noninterest income | 0 | 0 | 0 | 0 | |
Noninterest expense: | |||||
Salary and employee benefits | 376 | 291 | 1,247 | 780 | |
Occupancy and equipment | 38 | 2 | 39 | 3 | |
Other noninterest expenses | 364 | 590 | 2,258 | 2,069 | |
Total noninterest expense | 778 | 883 | 3,544 | 2,852 | |
Income (loss) before income taxes | (1,943) | (2,025) | (7,987) | (6,261) | |
Other Information | |||||
Depreciation expense | 0 | 0 | 0 | 0 | |
Identifiable assets | $ 43,460 | $ 34,323 | $ 43,460 | $ 34,323 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Nov. 05, 2021 USD ($) wireTransfer | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Loss Contingencies [Line Items] | ||||||
Rent expense, after adoption of Topic 842 | $ 2,063 | $ 5,839 | ||||
Rent expense, prior to adoption of Topic 842 | $ 1,641 | $ 4,955 | ||||
Commitments including funding of fixed-rate loans | 215,851 | $ 144,701 | ||||
Commitments including funding of variable-rates loans | 1,676,927 | 987,584 | ||||
Maximum potential amount of future payments required under the Commitments | 12,884 | 12,884 | 12,870 | |||
Wire Transfer Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Number of purportedly fraudulent and unauthorized wire transfers | wireTransfer | 6 | |||||
Loss contingency, damages sought, value | $ 5,100 | |||||
Standby Letters of Credit | ||||||
Loss Contingencies [Line Items] | ||||||
Standby letters of credit commitment | $ 17,950 | $ 17,950 | $ 11,729 | |||
Minimum | ||||||
Loss Contingencies [Line Items] | ||||||
Fixed-rate interest | 1% | 1% | 0.85% | |||
Maturity period | 1 month | 1 month | ||||
Maximum | ||||||
Loss Contingencies [Line Items] | ||||||
Fixed-rate interest | 18% | 18% | 18% | |||
Maturity period | 15 years | 26 years |
Uncategorized Items - fcb-20220
Label | Element | Value |
Gain (Loss) On Sales Of Loans Held-For-investment, Net | fcb_GainLossOnSalesOfLoansHeldForInvestmentNet | $ 0 |
Gain (Loss) On Sales Of Loans Held-For-investment, Net | fcb_GainLossOnSalesOfLoansHeldForInvestmentNet | $ (698,000) |
Common Stock [Member] | ||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | us-gaap_StockIssuedDuringPeriodSharesRestrictedStockAwardGross | 11,344 |