DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 23, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-39085 | ||
Entity Registrant Name | HBT Financial, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 37-1117216 | ||
Entity Address, Address Line One | 401 North Hershey Rd | ||
Entity Address, City or Town | Bloomington | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 61704 | ||
City Area Code | 309 | ||
Local Phone Number | 662-4444 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | HBT | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 240.1 | ||
Entity Common Stock, Shares Outstanding | 31,643,206 | ||
Documents Incorporated by Reference | Items 10, 11, 12, 13 and 14 of Part III incorporate information by reference from the definitive Proxy Statement for the 2024 Annual Meeting of Stockholders of HBT Financial, Inc. to be filed within 120 days of December 31, 2023. | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000775215 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 |
AUDIT INFORMATION
AUDIT INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 49 |
Auditor Name | RSM US LLP |
Auditor Location | Chicago, Illinois |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 26,256,000 | $ 18,970,000 |
Interest-bearing deposits with banks | 114,996,000 | 95,189,000 |
Cash and cash equivalents | 141,252,000 | 114,159,000 |
Interest-bearing time deposits with banks | 509,000 | 0 |
Debt securities available-for-sale, at fair value | 759,461,000 | 843,524,000 |
Debt securities held-to-maturity (fair value of $466,496 at 2023 and $478,801 at 2022) | 521,439,000 | 541,600,000 |
Equity securities with readily determinable fair value | 3,360,000 | 3,029,000 |
Equity securities with no readily determinable fair value | 2,505,000 | 1,977,000 |
Restricted stock, at cost | 7,160,000 | 7,965,000 |
Loans held for sale | 2,318,000 | 615,000 |
Loans, before allowance for credit losses | 3,404,417,000 | 2,620,253,000 |
Allowance for credit losses | (40,048,000) | (25,333,000) |
Loans, net of allowance for credit losses | 3,364,369,000 | 2,594,920,000 |
Bank owned life insurance | 23,905,000 | 7,557,000 |
Bank premises and equipment, net | 65,150,000 | 50,469,000 |
Bank premises held for sale | 0 | 235,000 |
Foreclosed assets | 852,000 | 3,030,000 |
Goodwill | 59,820,000 | 29,322,000 |
Intangible assets, net | 20,682,000 | 1,070,000 |
Mortgage servicing rights, at fair value | 19,001,000 | 10,147,000 |
Investments in unconsolidated subsidiaries | 1,614,000 | 1,165,000 |
Accrued interest receivable | 24,534,000 | 19,506,000 |
Other assets | 55,239,000 | 56,444,000 |
Total assets | 5,073,170,000 | 4,286,734,000 |
Deposits: | ||
Noninterest-bearing | 1,072,407,000 | 994,954,000 |
Interest-bearing | 3,329,030,000 | 2,592,070,000 |
Total deposits | 4,401,437,000 | 3,587,024,000 |
Securities sold under agreements to repurchase | 42,442,000 | 43,081,000 |
Federal Home Loan Bank advances | 12,623,000 | 160,000,000 |
Subordinated notes | 39,474,000 | 39,395,000 |
Junior subordinated debentures issued to capital trusts | 52,789,000 | 37,780,000 |
Other liabilities | 34,909,000 | 45,822,000 |
Total liabilities | 4,583,674,000 | 3,913,102,000 |
COMMITMENTS AND CONTINGENCIES (Note 22) | ||
Stockholders' Equity | ||
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, $0.01 par value; 125,000,000 shares authorized; shares issued of 32,730,698 at 2023 and 29,308,491 at 2022; shares outstanding of 31,695,828 at 2023 and 28,752,626 at 2022 | 327,000 | 293,000 |
Surplus | 295,877,000 | 222,783,000 |
Retained earnings | 269,051,000 | 232,004,000 |
Accumulated other comprehensive income (loss) | (57,163,000) | (71,759,000) |
Treasury stock at cost, 1,034,870 shares at 2023 and 555,865 at 2022 | (18,596,000) | (9,689,000) |
Total stockholders’ equity | 489,496,000 | 373,632,000 |
Total liabilities and stockholders’ equity | $ 5,073,170,000 | $ 4,286,734,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Stockholders' Equity | ||
Debt securities held-to-maturity | $ 466,496 | $ 478,801 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 125,000,000 | 125,000,000 |
Common stock, issued (in shares) | 32,730,698 | 29,308,491 |
Common stock, outstanding (in shares) | 31,695,828 | 28,752,626 |
Treasury stock, (in shares) | 1,034,870 | 555,865 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Loans, including fees: | |||
Taxable | $ 191,008 | $ 120,343 | $ 103,900 |
Federally tax exempt | 4,189 | 3,135 | 2,384 |
Securities: | |||
Taxable | 25,962 | 23,368 | 16,948 |
Federally tax exempt | 4,225 | 4,569 | 4,400 |
Interest-bearing deposits in bank | 3,020 | 1,541 | 527 |
Other interest and dividend income | 595 | 98 | 64 |
Total interest and dividend income | 228,999 | 153,054 | 128,223 |
INTEREST EXPENSE | |||
Deposits | 25,135 | 2,511 | 2,472 |
Securities sold under agreements to repurchase | 255 | 36 | 34 |
Borrowings | 7,128 | 967 | 9 |
Subordinated notes | 1,879 | 1,879 | 1,879 |
Junior subordinated debentures issued to capital trusts | 3,530 | 1,787 | 1,426 |
Total interest expense | 37,927 | 7,180 | 5,820 |
Net interest income | 191,072 | 145,874 | 122,403 |
PROVISION FOR CREDIT LOSSES | 7,573 | (706) | (8,077) |
Net interest income after provision for credit losses | 183,499 | 146,580 | 130,480 |
NONINTEREST INCOME | |||
Mortgage servicing | 4,678 | 2,609 | 2,825 |
Mortgage servicing rights fair value adjustment | (1,615) | 2,153 | 1,690 |
Gains on sale of mortgage loans | 1,526 | 1,461 | 5,846 |
Realized gains (losses) on sales of securities | (1,820) | 0 | 0 |
Unrealized gains (losses) on equity securities | 160 | (414) | 107 |
Gains (losses) on foreclosed assets | 501 | (314) | 310 |
Gains (losses) on other assets | 166 | 136 | (723) |
Income on bank owned life insurance | 573 | 164 | 41 |
Other noninterest income | 3,105 | 2,366 | 3,034 |
Total noninterest income | 36,046 | 34,717 | 37,328 |
NONINTEREST EXPENSE | |||
Salaries | 67,453 | 51,767 | 48,972 |
Employee benefits | 10,037 | 8,325 | 6,513 |
Occupancy of bank premises | 9,918 | 7,673 | 6,788 |
Furniture and equipment | 2,790 | 2,476 | 2,676 |
Data processing | 12,352 | 7,441 | 7,329 |
Marketing and customer relations | 5,043 | 3,803 | 3,376 |
Amortization of intangible assets | 2,670 | 873 | 1,054 |
FDIC insurance | 2,280 | 1,164 | 1,043 |
Loan collection and servicing | 1,402 | 1,049 | 1,317 |
Foreclosed assets | 251 | 293 | 908 |
Other noninterest expense | 16,768 | 20,243 | 11,270 |
Total noninterest expense | 130,964 | 105,107 | 91,246 |
INCOME BEFORE INCOME TAX EXPENSE | 88,581 | 76,190 | 76,562 |
INCOME TAX EXPENSE | 22,739 | 19,734 | 20,291 |
NET INCOME | $ 65,842 | $ 56,456 | $ 56,271 |
Earnings per share, basic (in dollars per share) | $ 2.08 | $ 1.95 | $ 2.02 |
Earnings per share, diluted (in dollars per share) | $ 2.07 | $ 1.95 | $ 2.02 |
Weighted average shares of common stock outstanding (in shares) | 31,626,308 | 28,853,697 | 27,795,806 |
Card income | |||
NONINTEREST INCOME | |||
Revenue | $ 11,043 | $ 10,329 | $ 9,734 |
Wealth management fees | |||
NONINTEREST INCOME | |||
Revenue | 9,883 | 9,155 | 8,384 |
Service charges on deposit accounts | |||
NONINTEREST INCOME | |||
Revenue | $ 7,846 | $ 7,072 | $ 6,080 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
NET INCOME | $ 65,842 | $ 56,456 | $ 56,271 |
OTHER COMPREHENSIVE INCOME (LOSS) | |||
Unrealized gains (losses) on debt securities available-for-sale | 16,949 | (105,459) | (24,798) |
Reclassification adjustment for losses on sale of debt securities available-for-sale realized in income | 1,820 | 0 | 0 |
Reclassification adjustment for amortization of net unrealized losses on debt securities transferred to held-to-maturity | 1,954 | 1,723 | 687 |
Unrealized gains on derivative instruments | 161 | 1,183 | 366 |
Reclassification adjustment for net settlements on derivative instruments | (468) | 126 | 412 |
Total other comprehensive income (loss), before tax | 20,416 | (102,427) | (23,333) |
Income tax expense (benefit) | 5,820 | (29,197) | (6,651) |
Total other comprehensive income (loss) | 14,596 | (73,230) | (16,682) |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ 80,438 | $ (16,774) | $ 39,589 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Surplus | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2020 | 27,457,306 | |||||||
Beginning balance at Dec. 31, 2020 | $ 363,917 | $ 275 | $ 190,875 | $ 154,614 | $ 18,153 | $ 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 56,271 | 56,271 | ||||||
Other comprehensive income | (16,682) | (16,682) | ||||||
Stock-based compensation | 764 | 764 | ||||||
Issuance of common stock upon vesting of restricted stock units, net of tax withholdings (in shares) | 20,225 | |||||||
Issuance of common stock upon vesting of restricted stock units, net of tax withholdings | 0 | 0 | ||||||
Issuance of common stock in town and country acquisition (in shares) | 1,799,016 | |||||||
Issuance of common stock in Town and Country acquisition | 29,270 | $ 18 | 29,252 | |||||
Repurchase of common stock (in shares) | (290,486) | |||||||
Repurchase of common stock | (4,906) | (4,906) | ||||||
Cash dividends and dividend equivalents | (16,753) | (16,753) | ||||||
Ending balance (in shares) at Dec. 31, 2021 | 28,986,061 | |||||||
Ending balance at Dec. 31, 2021 | 411,881 | $ 293 | 220,891 | 194,132 | 1,471 | (4,906) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 56,456 | 56,456 | ||||||
Other comprehensive income | (73,230) | (73,230) | ||||||
Stock-based compensation | 1,949 | 1,949 | ||||||
Issuance of common stock upon vesting of restricted stock units, net of tax withholdings (in shares) | 31,944 | |||||||
Issuance of common stock upon vesting of restricted stock units, net of tax withholdings | (57) | (57) | ||||||
Repurchase of common stock (in shares) | (265,379) | |||||||
Repurchase of common stock | (4,783) | (4,783) | ||||||
Cash dividends and dividend equivalents | $ (18,584) | (18,584) | ||||||
Ending balance (in shares) at Dec. 31, 2022 | 28,752,626 | 28,752,626 | ||||||
Ending balance at Dec. 31, 2022 | $ 373,632 | $ (6,922) | $ 293 | 222,783 | 232,004 | $ (6,922) | (71,759) | (9,689) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 65,842 | 65,842 | ||||||
Other comprehensive income | 14,596 | 14,596 | ||||||
Stock-based compensation | 1,953 | 1,953 | ||||||
Issuance of common stock upon vesting of restricted stock units, net of tax withholdings (in shares) | 43,607 | |||||||
Issuance of common stock upon vesting of restricted stock units, net of tax withholdings | (181) | (181) | ||||||
Issuance of common stock in town and country acquisition (in shares) | 3,378,600 | |||||||
Issuance of common stock in Town and Country acquisition | 71,356 | $ 34 | 71,322 | |||||
Repurchase of common stock (in shares) | (479,005) | |||||||
Repurchase of common stock | (8,907) | (8,907) | ||||||
Cash dividends and dividend equivalents | $ (21,873) | (21,873) | ||||||
Ending balance (in shares) at Dec. 31, 2023 | 31,695,828 | 31,695,828 | ||||||
Ending balance at Dec. 31, 2023 | $ 489,496 | $ 327 | $ 295,877 | $ 269,051 | $ (57,163) | $ (18,596) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 [Member] |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends (in dollars per share) | $ 0.68 | $ 0.64 | $ 0.60 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 65,842 | $ 56,456 | $ 56,271 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation expense | 3,108 | 3,043 | 3,074 |
Provision for credit losses | 7,573 | (706) | (8,077) |
Net amortization of debt securities | 5,730 | 6,959 | 7,066 |
Deferred income tax expense (benefit) | 3,817 | (2,919) | 2,908 |
Stock-based compensation | 1,953 | 1,949 | 764 |
Net accretion of discount and deferred loan fees on loans | (7,228) | (5,337) | (12,448) |
Net realized loss on sales of securities | 1,820 | 0 | 0 |
Net unrealized loss (gain) on equity securities | (160) | 414 | (107) |
Net loss (gain) on disposals of bank premises and equipment | (84) | (9) | 33 |
Net gain on sales of bank premises held for sale | (81) | (187) | 0 |
Impairment losses on bank premises held for sale | 0 | 60 | 661 |
Net gain on sales of foreclosed assets | (764) | (118) | (505) |
Write-down of foreclosed assets | 263 | 432 | 195 |
Amortization of intangibles | 2,670 | 873 | 1,054 |
Decrease (increase) in mortgage servicing rights | 1,615 | (2,153) | (1,690) |
Amortization of discount and issuance costs on subordinated notes and debentures | 139 | 145 | 144 |
Amortization of discount on Federal Home Loan Bank advances | 379 | 0 | (105) |
Amortization of premium on interest-bearing time deposits with banks | 0 | 5 | 4 |
Amortization of premium on time deposits | (400) | (188) | (81) |
Mortgage loans originated for sale | (69,663) | (56,240) | (179,921) |
Proceeds from sale of mortgage loans | 71,098 | 62,028 | 195,538 |
Net gain on sale of mortgage loans | (1,526) | (1,461) | (5,846) |
Increase in cash surrender value of bank owned life insurance | (566) | (164) | (41) |
Decrease (increase) in accrued interest receivable | (1,915) | (4,605) | 240 |
Decrease (increase) in other assets | 2,174 | (8,007) | 1,676 |
Increase (decrease) in other liabilities | (19,965) | 22,316 | (17,784) |
Net cash provided by operating activities | 65,829 | 72,586 | 43,023 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Proceeds from maturities of interest-bearing time deposits with banks | 249 | 485 | 245 |
Purchase of interest-bearing time deposits with banks | (509) | 0 | 0 |
Proceeds from sales of securities available-for-sale | 185,280 | 0 | 0 |
Proceeds from paydowns, maturities, and calls of debt securities | 102,625 | 154,166 | 213,491 |
Purchase of securities | (3,037) | (371,682) | (513,838) |
Purchase of loans | (61,009) | 0 | 0 |
Net increase in loans | (81,641) | (113,665) | (50,089) |
Purchase of restricted stock | (23,832) | (6,151) | (241) |
Proceeds from redemption of restricted stock | 27,459 | 925 | 796 |
Purchases of bank premises and equipment | (3,134) | (1,047) | (1,028) |
Proceeds from sales of bank premises and equipment | 222 | 27 | 17 |
Proceeds from sales of bank premises held for sale | 351 | 1,344 | 0 |
Proceeds from sales of foreclosed assets | 4,093 | 475 | 5,805 |
Net cash paid for acquisition | (14,454) | (4,771) | |
Net cash provided by (used in) investing activities | 132,663 | (335,123) | (349,613) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net increase (decrease) in deposits | 94,396 | (150,973) | 426,146 |
Net increase (decrease) in repurchase agreements | (639) | (18,175) | 11,440 |
Net increase (decrease) in Federal Home Loan Bank advances | (234,195) | (12,520) | |
Net increase (decrease) in Federal Home Loan Bank advances | 160,000 | ||
Taxes paid related to the vesting of restricted stock units | (181) | (57) | 0 |
Repurchase of common stock | (8,907) | (4,783) | (4,906) |
Cash dividends and dividend equivalents paid | (21,873) | (18,584) | (16,753) |
Net cash provided by (used in) financing activities | (171,399) | (32,572) | 403,407 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 27,093 | (295,109) | 96,817 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 114,159 | 409,268 | 312,451 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 141,252 | 114,159 | 409,268 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||
Cash paid for interest | 32,853 | 6,860 | 5,928 |
Cash paid for income taxes | 20,512 | 20,035 | 20,861 |
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING ACTIVITIES | |||
Transfers of loans to foreclosed assets | 1,143 | 541 | 4,857 |
Sales through loan origination | 0 | 0 | 252 |
Transfers of bank premises and equipment to bank premises held for sale | $ 35 | $ 0 | $ 1,345 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES HBT Financial, Inc. (“HBT Financial” or the “Company”) is headquartered in Bloomington, Illinois and is the holding company for Heartland Bank and Trust Company (“Heartland Bank” or the “Bank”). The Bank provides a comprehensive suite of financial products and services to individuals, businesses, and municipal entities throughout Illinois and Eastern Iowa. Additionally, the Company is subject to the regulations of certain federal and state agencies and undergoes periodic examinations by those regulatory agencies. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Significant accounting policies are summarized below. The Company qualifies as an "emerging growth company" as defined by the Jumpstart Our Business Startups Act (“JOBS Act”). The JOBS Act permits emerging growth companies an extended transition period for complying with new or revised accounting standards affecting public companies. The Company may remain an emerging growth company until the earliest to occur of: (1) the end of the fiscal year following the fifth anniversary of the completion of our initial public offering, which is December 31, 2024, (2) the last day of the fiscal year in which the Company has $1.235 billion or more in annual revenues, (3) the date on which the Company is deemed to be a “large accelerated filer” under the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) or (4) the date on which the Company has, during the previous three year period, issued, publicly or privately, more than $1.0 billion in non-convertible debt securities. The Company has elected to use the extended transition period until the Company is no longer an emerging growth company or until the Company chooses to affirmatively and irrevocably opt out of the extended transition period. As a result, the Company’s financial statements may not be comparable to companies that comply with new or revised accounting pronouncements applicable to public companies. Basis of Consolidation The consolidated financial statements of HBT Financial include the accounts of the Company and its wholly owned bank subsidiary, Heartland Bank. Heartland Bank maintains a limited liability company that holds specific assets for risk mitigation purposes and is consolidated into HBT Financial's consolidated financial statements. The Company also has eight wholly owned subsidiaries, Heartland Bancorp, Inc. Capital Trust B; Heartland Bancorp, Inc. Capital Trust C; Heartland Bancorp, Inc. Capital Trust D; FFBI Capital Trust I; National Bancorp Statutory Trust I; Town and Country Statutory Trust II; Town and Country Statutory Trust III; and West Plains Investors Statutory Trust I, which, in accordance with GAAP, are not consolidated as more fully described in Note 13. Significant intercompany transactions and accounts have been eliminated in consolidation. Use of Estimates The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and the reported results of operations for the periods then ended. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for credit losses and fair value of assets acquired and liabilities assumed in business combinations. Business and Significant Concentrations of Credit Risk The Company provides several types of loans to individuals, businesses, and municipal entities, primarily located in its customer service area. Real estate and commercial loans are principal areas of concentration. The Company also strives to meet the borrowing needs of the consumers in its market areas. Extension of credit is generally limited to the primary trade areas of the Company. Primary deposit products of the Bank are noninterest-bearing and interest-bearing demand accounts, savings accounts, money market accounts, and term certificates of deposit. Cash and Cash Equivalents For purposes of reporting consolidated cash flows, cash and cash equivalents include cash on hand and amounts due from banks, all of which have an original maturity within 90 days or less. Cash flows from loans and deposits are reported net. Interest-Bearing Time Deposits with Banks Interest-bearing time deposits with banks are carried at cost. Debt Securities Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity and are carried at amortized cost. Debt securities not classified as held-to-maturity are classified as available-for-sale. Debt securities available-for-sale are carried at fair value with unrealized gains and losses reported in accumulated other comprehensive income (loss). Realized gains and losses on debt securities available-for-sale are included in noninterest income when applicable and reported as a reclassification adjustment in other comprehensive income (loss). Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Interest income includes amortization of purchase premium or discount. Premiums and discounts on debt securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Premiums on callable debt securities are amortized to their earliest call date. Any transfers of debt securities into the held-to-maturity category from the available-for-sale category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer is retained in accumulated other comprehensive income (loss) and in the carrying value of the held-to-maturity securities. Such amounts are amortized over the period to maturity. Allowance for Credit Losses - Debt Securities Available-for-Sale For debt securities available-for-sale in an unrealized loss position, the Company first assesses whether it intends to sell, or if it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security amortized cost basis is written down to fair value through earnings. For debt securities available-for-sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income (loss). Changes in the allowance for credit losses are recorded as provision for credit losses. Losses are charged against the allowance for credit losses when management believes the uncollectibility of a security is confirmed or when either the criteria regarding intent or requirement to sell is met. Allowance for Credit Losses - Debt Securities Held-to-Maturity For debt securities held-to-maturity, the Company measures expected credit losses on a collective basis by major security type. Held-to-maturity securities are evaluated using historical probability of default and loss given default information specific to the investment category. If this evaluation determines that credit losses exist, an allowance for credit loss is recorded and included in earnings as a component of provision for credit losses. The Company's U.S. government agency and agency mortgage-backed securities are explicitly or implicitly guaranteed by the U.S. government, and as such are excluded from the credit loss evaluation as the expectation of non-payment is zero. Equity Securities Equity securities with readily determinable fair values are measured at fair value with changes in fair value recognized in unrealized gains (losses) on equity securities on the statements of income. The Company has elected to measure its equity securities with no readily determinable fair values at their cost minus impairment, if any, plus or minus charges resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Restricted Stock Restricted stock, which consists of Federal Home Loan Bank of Chicago (“FHLB”) stock, is carried at cost and evaluated for impairment. Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value. The Company obtains quotes or bids on these loans directly from purchasing financial institutions. Typically, these quotes include a premium on sale and thus quotes typically indicate fair value of the held for sale loans is greater than cost. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Mortgage loans held for sale are generally sold with the mortgage servicing rights retained by the Company. The carrying value of mortgage loans sold is reduced by fair value allocated to the associated mortgage servicing rights. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost net of the allowance for credit losses. Amortized cost is the unpaid principal balance outstanding, adjusted for charge-offs, net of purchase premiums and discounts, and deferred loan fees and costs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. The accrual of interest on loans is discontinued at the time the loan is 90 days past due, unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income if it was accrued during the current year and charged-off against the allowance for credit losses if accrued in a prior year. Amortization of related deferred loan fees or costs and any purchase premium or discount is also suspended at this time. The interest on these loans is accounted for on the cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, future payments are reasonably assured, and the borrower must generally demonstrate at least 6 months of payment performance. Purchased Credit Deteriorated Loans Purchased credit deteriorated loans (“PCD loans”) are purchased loans, that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Company’s assessment. An allowance for credit losses is determined using the same methodology as other loans held for investment. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of a loan's purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the unpaid principal balance of a loan is a non-credit discount or premium which is amortized into interest income over the life of the loan. Non-Purchased Credit Deteriorated Loans Non-purchased credit deteriorated loans (“non-PCD loans”) are purchased loans, that, as of the date of acquisition, have not experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Company’s assessment. The loan’s purchase price becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the unpaid principal balance of the loan is a discount or premium, which is comprised of a credit and non-credit component, and is accreted or amortized into interest income over the life of the loan. An allowance for credit losses is determined using the same methodology as other loans held for investment, but no "Day One" allowance for credit losses is established on the date of acquisition. Instead, a subsequent "Day Two" allowance for credit losses for non-PCD loans is recorded through the provision for credit losses, which reflects the estimated lifetime credit losses. Allowance for Credit Losses - Loans The allowance for credit losses for loans is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. The Company’s estimate of the allowance for credit losses for loans reflects losses expected over the remaining contractual life of the loans, considering past events, current conditions, and reasonable and supportable forecasts of future economic conditions. Loans are charged off against the allowance for credit losses when management believes the uncollectibility of a loan balance is confirmed. Recoveries are recognized up to the aggregate amount of previously charged-off balances. The allowance for credit losses is established through provision for credit loss expense charged to income. The allowance for credit losses is measured on a collective (pooled) basis when similar risk characteristics exist. The Company has identified the following portfolio segments: Commercial and Industrial : Consists of loans typically granted for working capital, asset acquisition and other business purposes. These loans are underwritten primarily based on the borrower’s cash flow with most loans secondarily supported by collateral. Most commercial and industrial loans are secured by the assets being financed or other business assets, such as accounts receivable, inventory, and equipment, and are typically supported by personal guarantees of the owners. Cash flows and collateral values may fluctuate based on general economic conditions, specific industry conditions and specific borrower circumstances. Commercial Real Estate - Owner Occupied : Consists of loans secured by commercial real estate that is both owned and occupied by the same or a related borrower. These loans are primarily underwritten based on the cash flow of the business occupying the property. As with commercial and industrial loans, cash flows and collateral values may fluctuate based on general economic conditions, specific industry conditions, and specific borrower circumstances. Commercial Real Estate - Non-owner Occupied : Consists of loans secured by commercial real estate for which the primary source of repayment is the sale or rental cash flows from the underlying collateral. These loans are underwritten based primarily on the historic or projected cash flow from the underlying collateral. Adverse economic developments, or an overbuilt market, typically impact commercial real estate projects. Trends in rental and vacancy rates of commercial properties may impact the credit quality of these loans. Construction and Land Development : Consists of loans for speculative and pre-sold construction projects for developers intending to either sell upon completion or hold for long-term investment, as well as construction of projects to be owner occupied. In addition, loans in this segment generally possess a higher inherent risk of loss than other portfolio segments due to risk of non-completion, changes in budgeted costs, and changes in market forces during the term of the construction period. Multi-family : Consists of loans secured by five or more unit apartment buildings. Multi-family loans may be affected by demographic and population trends, unemployment or underemployment, and deteriorating market values of real estate. One-to-four Family Residential : Consists of loans secured by one-to-four family residences, including both first and junior lien mortgage loans for owner occupied and non-owner occupied properties and home equity lines of credit. The degree of risk in residential mortgage lending depends on the local economy, including the local real estate market and unemployment rates. Agricultural and Farmland : Consists of loans typically secured by farmland, agricultural operating assets, or a combination of both, and are generally underwritten to existing cash flows of operating agricultural businesses. Debt repayment is provided by business cash flows. The credit quality of these loans is significantly influenced by changes in prices of corn and soybeans and, to a lesser extent, weather, which has been partially mitigated by federal crop insurance programs. Municipal, Consumer and Other : Loans to municipalities include obligations of municipal entities and loans sponsored by municipal entities for the benefit of a private entity where that private entity, rather than the municipal entity, is responsible for repayment of the obligation. Consumer loans include loans to individuals for consumer purposes and typically consist of small balance loans. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of the consumer loans. Loans to non-depository financial institutions, as well as leases, are also included. The Company uses the discounted cash flow method to estimate expected credit losses for all loan segments, except for consumer loans. Under this method, cash flow projections at the instrument-level are adjusted for estimated prepayments, probability of default, loss given default, and time to recovery. These cash flow projections are discounted at the instrument-level effective yield to calculate the present value of expected cash flows. An allowance for credit losses is established for the difference between a pool's total amortized cost basis and present value of expected cash flows. The Company uses the weighted average remaining maturity method to estimate expected credit losses for consumer loans. Under this method, an expected loss rate is applied to an estimate of future outstanding balance balances of the pool. The Company uses regression analysis of historical internal and peer data to determine which variables are best suited to be economic variables utilized when modeling lifetime probability of default in the discounted cash flow models and loss rates in the weighted average remaining maturity model. The analysis also determines how expected probability of default and loss rates will react to forecasted levels of the economic variables. In addition, qualitative adjustments are made for risk factors that are not considered within our modeling processes but are nonetheless relevant in assessing the expected credit losses within our loan pools. Management estimates the allowance for credit losses on loans using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. As historical credit loss experience provides the basis for the estimation of expected credit losses for pooled loans, adjustments may be necessary to capture differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions. Loans that do not share risk characteristics are evaluated on an individual basis. Loan evaluated individually are not also included in the pooled evaluation. When management determines that foreclosure is probable, or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for anticipated selling costs as appropriate. Although management believes the allowance for credit losses to be adequate, ultimate losses may vary from its estimates. At least quarterly, the Allowance for Credit Losses Committee reviews the adequacy of the allowance, including consideration of the relevant risks in the portfolio, current economic conditions and other factors. In addition, the Company’s regulators review the adequacy of the allowance for credit losses and may require additions to the allowance for credit losses based on their judgment about information available at the time of their examinations. Unfunded Lending-related Commitments In the ordinary course of business, the Company has entered into commitments to extend credit, such as lines of credit, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded when they are funded. Allowance for Credit Losses - Unfunded Lending-related Commitments The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on unfunded lending-related commitments is adjusted through provision for credit losses. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credited losses on commitments expected to be funded over its estimated life. Loan Servicing The Company periodically sells mortgage loans on the secondary market with servicing retained. For sales of mortgage loans, a portion of the cost of originating the loan is allocated to the servicing right based on fair value. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds, and default rates and losses. Mortgage servicing rights are carried at fair value on the consolidated balance sheets and changes in fair value are recorded in mortgage servicing rights fair value adjustment on the consolidated statements of income. Bank Owned Life Insurance Bank owned life insurance represents life insurance policies on the lives of certain current and former employees and directors for which the Company is the sole owner and beneficiary. These policies are recorded as an asset in the consolidated balance sheets at their cash surrender value ("CSV") or the current amount that could be realized if settled. The change in CSV and insurance proceeds received are included as a component of noninterest income in the consolidated statements of income. Bank Premises and Equipment Land is carried at cost. Bank premises and equipment are carried at cost less accumulated depreciation. Depreciation is computed over the estimated useful lives of the individual assets using the straight-line method. Bank Premises Held for Sale Bank premises held for sale is carried at the lower of cost or fair value less estimated costs to sell. Bank premises classified as held for sale are not depreciated. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of carrying amount or fair value less estimated costs to sell. Lease Obligations The Company leases certain bank premises under non-cancelable operating leases in the normal course of business operations. These lease obligations result in the recognition of right-of-use assets and associated lease contract liabilities. The amount of right-of-use assets and associated lease contract liabilities recorded is based on the present value of future minimum lease payments. The discount rate used is equal to the rate implicit in the lease, when readily determinable, or the Company’s incremental borrowing rate at lease inception, on a collateralized basis over a similar term. Right-of-use assets are included in other assets and lease contract liabilities are included in other liabilities in the consolidated balance sheets and were insignificant as of December 31, 2023 and 2022. Foreclosed Assets When it appears likely that we will obtain title to real estate collateral, we develop an exit strategy by assessing overall market conditions, the current use and condition of the asset, and its highest and best use. If determined necessary to maximize value, we complete the necessary improvements or tenant stabilization tasks, with the applicable time value discount and improvement expenses incorporated into our estimates of the expected costs to sell. Substantially all foreclosed real estate is valued on an "as-is" basis. Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less anticipated selling costs at the date of foreclosure, establishing a new cost basis. For foreclosed real estate, selling costs are generally estimated to be 7.0% of the fair value. This estimate includes sales commissions and closing costs. Any write-down based on the fair value of the asset at the date of acquisition is charged to the allowance for credit losses. If the fair value of the asset less estimated cost to sell exceeds the recorded investment in the loan at the date of foreclosure, the increase in value is charged to current year operations unless there has been a prior charge-off, in which case a recovery to the allowance for credit losses is recorded. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less estimated cost to sell. Write-downs of foreclosed assets subsequent to foreclosure are charged to current year operations as are gains and losses from sale of foreclosed assets. Costs to maintain and hold foreclosed assets are expensed. Goodwill and Other Intangible Assets Goodwill represents the excess of the original cost over the fair value of assets acquired and liabilities assumed. Goodwill is not amortized but instead is subject to an annual impairment evaluation. The Company has selected December 31 as the date to perform the annual impairment test. At December 31, 2023 and 2022, the Company’s evaluations of goodwill indicated that goodwill was not impaired. Other identifiable intangible assets consist of core deposit intangible and customer relationship intangible assets with definite useful lives which are being amortized over 10 years. The Company will periodically review the status of core deposit intangible and customer relationship intangible assets for any events or circumstances which may change the recoverability of the underlying basis. Wealth Management Assets and Fees Assets of the wealth management department of the Bank are not included in the consolidated balance sheets as such assets are not assets of the Company or the Bank. Fee income generated from wealth management services is recorded in the consolidated statements of income as a source of noninterest income. Employee Benefit Plans The Company sponsors a profit sharing plan under which the Company may contribute, at the discretion of the Board of Directors, a discretionary amount to all participating employees for the plan year. The Company may also make discretionary matching contributions in an amount up to 5% of compensation contributed by employees. Stock Based Compensation The Company recognizes compensation cost over the requisite service period, if any, which is generally defined as the vesting period. For awards classified as equity, compensation cost is based on the fair value of the awards on the grant date. For awards classified as liabilities, compensation cost also includes subsequent remeasurements of the fair value of the awards until the award is settled. The Company’s policy is to recognize forfeitures as they occur. Transfers of Financial Assets and Participating Interests Transfers of an entire financial asset or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. The transfer of a participating interest in an entire financial asset must also meet the definition of a participating interest. A participating interest in a financial asset has all of the following characteristics: (1) from the date of transfer, it must represent a proportionate (pro rata) ownership interest in the financial asset, (2) from the date of transfer, all cash flows received, except any cash flows allocated as any compensation for servicing or other services performed, must be divided proportionately among participating interest holders in the amount equal to their share ownership, (3) the rights of each participating interest holder must have the same priority, and (4) no party has the right to pledge or exchange the entire financial asset unless all participating interest holders agree to do so. Advertising Costs Advertising costs are expensed as incurred. Income Taxes Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. With regard to uncertain tax matters, the Company recognizes in the consolidated financial statements the impact of a tax position taken, or expected to be taken, if it is more likely than not that the position will be sustained on audit based on the technical merit of the position. Management has analyzed the tax positions taken by the Company and concluded as of December 31, 2023 and 2022, there are no material uncertain tax positions taken or expected to be taken that require recognition of a liability or disclosure in the consolidated financial statements. When applicable, the Company recognizes interest accrued related to unrecognized tax benefits and penalties in operating expenses. Derivative Financial Instruments As part of the Company’s asset/liability management, the Company may use interest rate swaps to hedge various exposures or to modify interest rate char |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS Town and Country Financial Corporation On February 1, 2023, HBT Financial acquired 100% of the issued and outstanding common stock of Town and Country Financial Corporation (“Town and Country”), the holding company for Town and Country Bank, pursuant to an Agreement and Plan of Merger dated August 23, 2022. Under the Agreement and Plan of Merger, Town and Country merged with and into HBT Financial, with HBT Financial as the surviving entity, immediately followed by the merger of Town and Country Bank with and into Heartland Bank, with Heartland Bank as the surviving entity. At the effective time of the merger, each share of Town and Country was converted into the right to receive, subject to the election and proration procedures as provided in the Merger Agreement, one of the following: (i) 1.9010 shares of HBT Financial’s common stock, or (ii) $35.66 in cash, or (iii) a combination of cash and HBT Financial common stock. Total consideration consisted of 3,378,600 shares of HBT Financial’s common stock and $38.0 million in cash. In lieu of fractional shares, holders of Town and Country common stock received cash. Based upon the closing price of HBT Financial common stock of $21.12 on February 1, 2023, the aggregate transaction value was approximately $109.4 million. This transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged were recorded at estimated fair values on the date of acquisition. Fair values are subject to refinement for up to one year after the closing date of February 1, 2023. Measurement period adjustments of $0.1 million were recorded in the third quarter of 2023 as more information became available regarding Town and Country's tax assets and liabilities. Goodwill of $30.5 million was recorded in the acquisition, which reflects expected synergies from combining the operations of HBT Financial and Town and Country, and is nondeductible for tax purposes. The acquisition of Town and Country further enhanced HBT Financial’s footprint in Central Illinois, and expanded our footprint into metro-east St. Louis. During the years ended December 31, 2023 and 2022, HBT Financial incurred the following expenses related to the acquisition of Town and Country: Year Ended (dollars in thousands) December 31, 2023 December 31, 2022 PROVISION FOR CREDIT LOSSES $ 5,924 $ — NONINTEREST EXPENSE Salaries 3,584 — Furniture and equipment 39 — Data processing 2,031 304 Marketing and customer relations 24 — Loan collection and servicing 125 — Legal fees and other noninterest expense 1,964 788 Total noninterest expense 7,767 1,092 Total Town and Country acquisition-related expenses $ 13,691 $ 1,092 The fair value of the assets acquired and liabilities assumed from Town and Country on the acquisition date of February 1, 2023 were as follows (dollars in thousands): Fair Value Assets acquired: Cash and cash equivalents $ 23,542 Interest-bearing time deposits with banks 249 Debt securities 167,869 Equity securities 301 Restricted stock 2,822 Loans held for sale 1,612 Loans, before allowance for credit losses 635,376 Allowance for credit losses (1,247) Loans, net of allowance for credit losses 634,129 Bank owned life insurance 15,782 Bank premises and equipment 14,828 Foreclosed assets 271 Intangible assets 22,282 Mortgage servicing rights 10,469 Investments in unconsolidated subsidiaries 449 Accrued interest receivable 3,113 Other assets 8,940 Total assets acquired 906,658 Liabilities assumed: Deposits 720,417 FHLB advances 86,439 Junior subordinated debentures 14,949 Other liabilities 5,999 Total liabilities assumed 827,804 Net assets acquired $ 78,854 Consideration paid: Cash $ 37,996 Common stock 71,356 Total consideration paid $ 109,352 Goodwill $ 30,498 Of the loans acquired, there were $89.8 million which exhibited more-than-insignificant credit deterioration on the acquisition date. The following table provides a summary of these PCD loans at acquisition (dollars in thousands): Unpaid principal balance $ 89,822 Allowance for credit losses at acquisition (1,247) Non-credit discount (2,218) Purchase price $ 86,357 Additionally, subsequent to the Town and Country acquisition, HBT Financial recognized an allowance for credit losses on non-PCD loans of $5.2 million and an allowance for credit losses on unfunded commitments of $0.7 million through an increase to the provision for credit losses. The following table provides the pro forma information for the results of operations for the years ended December 31, 2023 and 2022, as if the acquisition of Town and Country had occurred on January 1, 2022. The pro forma results combine the historical results of Town and Country into HBT Financial’s consolidated statements of income, including the impact of certain acquisition accounting adjustments, which include loan discount accretion, intangible assets amortization, deposit premium amortization, and borrowing premium amortization. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2022. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, provision for credit losses, expense efficiencies or asset dispositions. The acquisition-related expenses that have been recognized are included in net income in the following table. Pro Forma Year Ended December 31, (dollars in thousands, except per share data) 2023 2022 Total revenues (net interest income and noninterest income) $ 230,171 $ 226,229 Net income 66,056 68,417 Earnings per share - basic 2.07 2.12 Earnings per share - diluted 2.06 2.12 NXT Bancorporation, Inc. On October 1, 2021, HBT Financial acquired 100% of the issued and outstanding common stock of NXT Bancorporation, Inc. (“NXT”), the holding company for NXT Bank, pursuant to an Agreement and Plan of Merger dated June 7, 2021. Under the Agreement and Plan of Merger, NXT merged with and into HBT Financial, with HBT Financial as the surviving entity, on October 1, 2021. Additionally, NXT Bank was merged with and into Heartland Bank, with Heartland Bank as the surviving entity, in December 2021. At the effective time of the merger, each share of NXT was converted into the right to receive 67.6783 shares of HBT Financial common stock, cash in lieu of fractional shares, and $400 in cash. There were 1,799,016 shares of HBT Financial common stock issued at the effective time of the acquisition with an aggregate market value of $29.3 million, based on the closing stock price of $16.27 on October 1, 2021. This transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged was recorded at estimated fair values on the date of acquisition. Goodwill of $5.7 million was recorded in the acquisition, which reflects expected synergies from combining the operations of HBT Financial and NXT, and is nondeductible for tax purposes. The acquisition of NXT provided an opportunity to utilize Heartland Bank’s excess liquidity at the time of acquisition to replace NXT Bank’s higher-cost funding. Additionally, Heartland Bank’s broader range of products and services, as well as a greater ability to meet larger borrowing needs, has provided an opportunity to expand NXT Bank’s customer relationships. During the year ended December 31, 2021, HBT Financial incurred the following expenses related to the acquisition of NXT (dollars in thousands): Salaries $ 65 Furniture and equipment 18 Data processing 355 Marketing and customer relations 12 Loan collection and servicing 11 Legal fees and other noninterest expense 955 Total NXT acquisition-related expenses $ 1,416 The fair value of the assets acquired and liabilities assumed from NXT on the acquisition date were as follows (dollars in thousands): Fair Value Assets acquired: Cash and cash equivalents $ 5,862 Interest-bearing time deposits with banks 739 Debt securities 18,295 Equity securities with readily determinable fair value 43 Restricted stock 796 Loans 194,576 Bank owned life insurance 7,352 Bank premises and equipment 3,667 Core deposit intangible assets 199 Mortgage servicing rights 370 Accrued interest receivable 886 Other assets 1,340 Total assets acquired 234,125 Liabilities assumed: Deposits 181,586 Securities sold under agreements to repurchase 4,080 FHLB advances 12,625 Other liabilities 1,633 Total liabilities assumed 199,924 Net assets acquired $ 34,201 Consideration paid: Cash $ 10,633 Common stock 29,270 Total consideration paid $ 39,903 Goodwill $ 5,702 The following table presents the acquired non-impaired loans as of the acquisition date (dollars in thousands): Fair Value $ 194,576 Gross contractual amounts receivable 196,104 Estimate of contractual cash flows not expected to be collected 1,045 There were no loans acquired with deteriorated credit quality from NXT. |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES Debt Securities The amortized cost and fair values of debt securities, with gross unrealized gains and losses and allowance for credit losses, are as follows: December 31, 2023 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value Available-for-sale: U.S. Treasury $ 159,715 $ — $ (11,093) $ — $ 148,622 U.S. government agency 55,359 — (3,262) — 52,097 Municipal 229,030 26 (23,499) — 205,557 Mortgage-backed: Agency residential 188,641 61 (14,718) — 173,984 Agency commercial 141,214 3 (14,205) — 127,012 Corporate 57,665 9 (5,485) — 52,189 Total available-for-sale $ 831,624 $ 99 $ (72,262) $ — $ 759,461 December 31, 2023 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Allowance for Credit Losses Held-to-maturity: U.S. government agency $ 88,448 $ — $ (8,292) $ 80,156 $ — Municipal 38,442 394 (163) 38,673 — Mortgage-backed: Agency residential 95,828 — (5,569) 90,259 — Agency commercial 298,721 — (41,313) 257,408 — Total held-to-maturity $ 521,439 $ 394 $ (55,337) $ 466,496 $ — December 31, 2022 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale: U.S. Treasury $ 169,860 $ — $ (15,345) $ 154,515 U.S. government agency 59,291 — (4,134) 55,157 Municipal 275,972 46 (32,189) 243,829 Mortgage-backed: Agency residential 213,676 5 (18,240) 195,441 Agency commercial 150,060 — (17,172) 132,888 Corporate 65,597 55 (3,958) 61,694 Total available-for-sale $ 934,456 $ 106 $ (91,038) $ 843,524 December 31, 2022 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Held-to-maturity: U.S. government agency $ 88,424 $ — $ (9,728) $ 78,696 Municipal 42,167 195 (314) 42,048 Mortgage-backed: Agency residential 102,728 — (6,470) 96,258 Agency commercial 308,281 — (46,482) 261,799 Total held-to-maturity $ 541,600 $ 195 $ (62,994) $ 478,801 On March 31, 2022, the Company transferred certain debt securities from the available-for-sale category to the held-to-maturity category in order to better reflect the revised intentions of the Company due to possible market value volatility, resulting from a potential rise in interest rates. The following is a summary of the amortized cost and fair value of securities transferred to the held-to-maturity category: March 31, 2022 (dollars in thousands) Amortized Fair Value U.S. government agency $ 78,841 $ 71,048 Mortgage-backed: Agency residential 8,175 7,651 Agency commercial 27,834 25,432 Total $ 114,850 $ 104,131 The debt securities were transferred between categories at fair value, with the transfer date fair value becoming the new amortized cost for each security transferred. The unrealized gain (loss), net of tax, at the date of transfer remains a component of accumulated other comprehensive income (loss), but will be amortized over the remaining life of the debt securities as an adjustment of yield in a manner consistent with amortization of any premium or discount. As a result, the amortization of an unrealized gain (loss) reported in accumulated other comprehensive income (loss) will offset or mitigate the effect on interest income of the amortization of the premium or discount for that held-to-maturity debt security. As of December 31, 2023 and 2022, the Bank had debt securities with a carrying value of $419.4 million and $332.6 million, respectively, which were pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes required or permitted by law. The amortized cost and fair value of debt securities by contractual maturity, as of December 31, 2023, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-Sale Held-to-Maturity (dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in 1 year or less $ 46,534 $ 45,564 $ 2,138 $ 2,141 Due after 1 year through 5 years 208,581 196,431 35,590 34,269 Due after 5 years through 10 years 199,695 174,573 83,488 77,094 Due after 10 years 46,959 41,897 5,674 5,325 Mortgage-backed: Agency residential 188,641 173,984 95,828 90,259 Agency commercial 141,214 127,012 298,721 257,408 Total $ 831,624 $ 759,461 $ 521,439 $ 466,496 The following table presents gross unrealized losses and fair value of debt securities available-for-sale that do not have an associated allowance for credit losses as of December 31, 2023, aggregated by category and length of time that individual debt securities have been in a continuous unrealized loss position: December 31, 2023 Investments in a Continuous Unrealized Loss Position Less than 12 Months 12 Months or More Total (dollars in thousands) Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Available-for-sale: U.S. Treasury $ — $ — $ (11,093) $ 148,622 $ (11,093) $ 148,622 U.S. government agency (2) 168 (3,260) 51,910 (3,262) 52,078 Municipal (26) 4,749 (23,473) 194,287 (23,499) 199,036 Mortgage-backed: Agency residential (163) 9,354 (14,555) 156,785 (14,718) 166,139 Agency commercial (26) 3,016 (14,179) 123,404 (14,205) 126,420 Corporate (414) 4,361 (5,071) 45,826 (5,485) 50,187 Total available-for-sale $ (631) $ 21,648 $ (71,631) $ 720,834 $ (72,262) $ 742,482 The following table presents gross unrealized losses and fair value of debt securities, aggregated by category and length of time that individual debt securities have been in a continuous unrealized loss position, as of December 31, 2022: December 31, 2022 Investments in a Continuous Unrealized Loss Position Less than 12 Months 12 Months or More Total (dollars in thousands) Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Available-for-sale: U.S. Treasury $ (8,401) $ 92,445 $ (6,944) $ 62,070 $ (15,345) $ 154,515 U.S. government agency (2,980) 47,370 (1,154) 7,787 (4,134) 55,157 Municipal (10,906) 149,261 (21,283) 87,794 (32,189) 237,055 Mortgage-backed: Agency residential (8,332) 127,288 (9,908) 65,692 (18,240) 192,980 Agency commercial (4,764) 62,672 (12,408) 70,216 (17,172) 132,888 Corporate (2,594) 52,190 (1,364) 5,600 (3,958) 57,790 Total available-for-sale (37,977) 531,226 (53,061) 299,159 (91,038) 830,385 Held-to-maturity: U.S. government agency (1,754) 15,751 (7,974) 62,945 (9,728) 78,696 Municipal (314) 23,433 — — (314) 23,433 Mortgage-backed: Agency residential (4,039) 78,452 (2,431) 17,806 (6,470) 96,258 Agency commercial (16,716) 103,298 (29,766) 158,501 (46,482) 261,799 Total held-to-maturity (22,823) 220,934 (40,171) 239,252 (62,994) 460,186 Total debt securities $ (60,800) $ 752,160 $ (93,232) $ 538,411 $ (154,032) $ 1,290,571 As of December 31, 2023, there were 665 debt securities in an unrealized loss position for a period of twelve months or more, and 116 debt securities in an unrealized loss position for a period of less than twelve months. U.S. Treasury, U.S. government agency, and agency mortgage-backed securities are considered to have no risk of credit loss as they are either explicitly or implicitly guaranteed by the U.S. government. The changes in fair value in these portfolios are considered to be primarily driven by changes in market interest rates and other non-credit risks, such as prepayment and liquidity risks. Municipal securities include approximately 79% general obligation bonds as of December 31, 2023, which have a very low historical default rate due to issuers generally having taxing authority to service the debt. The remainder of the municipal securities are also of high credit quality with ratings of A1/A+ or better. The Company evaluates credit risk through monitoring credit ratings and reviews of available financial data. The changes in fair value in these portfolios are considered to be primarily driven by changes in market interest rates and other non-credit risks, such as call and liquidity risks. The estimated allowance for credit losses for the municipal debt securities held-to-maturity was deemed insignificant. Corporate securities include investment grade corporate and bank subordinated debt securities. The Company evaluates credit risk through monitoring credit ratings, reviews of available issuer financial data, and sector trends. The changes in fair value in corporate securities was considered to be primarily driven by changes in market interest rates and other non-credit risks, such as call and liquidity risks. As of December 31, 2023, the Company did not intend to sell the debt securities that are in an unrealized loss position, and it was more likely than not that the Company would recover the amortized cost prior to being required to sell the debt securities. Accrued interest on debt securities totaled $6.0 million as of December 31, 2023 and is excluded from the estimate of credit losses. Sales of debt securities were as follows during the year ended December 31: Year Ended December 31, (dollars in thousands) 2023 2022 2021 Proceeds from sales $ 185,280 $ — $ — Gross realized gains — — — Gross realized losses (1,820) — — Subsequent to December 31, 2023, the Company recognized $3.4 million of net losses on the sale of $66.8 million of municipal securities with the proceeds used to reduce wholesale funding. Equity Securities Equity securities with readily determinable fair values are measured at fair value with changes in fair value recognized in unrealized gains (losses) on equity securities on the consolidated statements of income. The Company has elected to measure equity securities with no readily determinable fair value at cost minus impairment, if any, plus or minus changes resulting from observable price changes for identical or similar securities of the same issuer. The initial cost and carrying values of equity securities, with cumulative net unrealized gains and losses are as follows: December 31, 2023 (dollars in thousands) Readily No Readily Initial cost $ 3,143 $ 2,840 Cumulative net unrealized gains (losses) 217 (335) Carrying value $ 3,360 $ 2,505 December 31, 2022 (dollars in thousands) Readily No Readily Initial cost $ 3,142 $ 2,142 Cumulative net unrealized gains (losses) (113) (165) Carrying value $ 3,029 $ 1,977 As of December 31, 2023, the cumulative net unrealized losses on equity securities with no readily determinable fair value reflect impairments of $0.2 million and downward adjustments based on observable price changes of an identical investment of $0.2 million. As of December 31, 2022, the cumulative net unrealized losses on equity securities with no readily determinable fair value reflect downward adjustments based on observable price changes of an identical investment. There have been no upward adjustments based on observable price changes to equity securities with no readily determinable fair value. There were no sales of equity securities during the years ended December 31, 2023, 2022 and 2021. Unrealized gains (losses) on equity securities were as follows during the years ended December 31, 2023, 2022, and 2021: Year Ended December 31, (dollars in thousands) 2023 2022 2021 Readily determinable fair value $ 330 $ (414) $ 107 No readily determinable fair value (170) — — Unrealized gains (losses) on equity securities $ 160 $ (414) $ 107 |
LOANS AND RELATED ALLOWANCE FOR
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES | 12 Months Ended |
Dec. 31, 2023 | |
Loans and Leases Receivable Disclosure [Abstract] | |
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES | LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES Major categories of loans are summarized as follows: (dollars in thousands) December 31, 2023 December 31, 2022 Commercial and industrial $ 427,800 $ 266,757 Commercial real estate - owner occupied 295,842 218,503 Commercial real estate - non-owner occupied 880,681 713,202 Construction and land development 363,983 360,824 Multi-family 417,923 287,865 One-to-four family residential 491,508 338,253 Agricultural and farmland 287,294 237,746 Municipal, consumer, and other 239,386 197,103 Loans, before allowance for credit losses 3,404,417 2,620,253 Allowance for credit losses (40,048) (25,333) Loans, net of allowance for credit losses $ 3,364,369 $ 2,594,920 Allowance for Credit Losses Management estimates the allowance for credit losses using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The discounted cash flow method is used to estimate expected credit losses for all loan categories, except for consumer loans where the weighted average remaining maturity method is utilized. At December 31, 2023, the economic forecast used by management anticipates a mild recession in 2024, with the unemployment rate increasing modestly and GDP growth slowing and then shrinking over the next 4 quarters considered in the forecast period. After the forecast period, the Company reverts to long-term averages over a 4-quarter reversion period. Additionally, management has made qualitative adjustments to the loss estimates to reflect other factors that influence credit losses. The following tables detail activity in the allowance for credit losses: (dollars in thousands) Commercial Commercial Commercial Construction Multi-Family One-to-four Agricultural Municipal, Total Balance, December 31, 2020 $ 3,929 $ 3,141 $ 11,251 $ 4,232 $ 1,957 $ 1,801 $ 793 $ 4,734 $ 31,838 Provision for loan losses (1,474) (1,280) (3,130) 340 (694) (472) 52 (1,419) (8,077) Charge-offs (668) (30) — — — (267) — (449) (1,414) Recoveries 653 9 24 342 — 249 — 312 1,589 Balance, December 31, 2021 $ 2,440 $ 1,840 $ 8,145 $ 4,914 $ 1,263 $ 1,311 $ 845 $ 3,178 $ 23,936 Provision for loan losses 88 (1,653) (1,707) (692) 209 146 (49) 2,952 (706) Charge-offs (23) (25) — — — (67) — (569) (684) Recoveries 774 1,031 283 1 — 369 — 329 2,787 Balance, December 31, 2022 $ 3,279 $ 1,193 $ 6,721 $ 4,223 $ 1,472 $ 1,759 $ 796 $ 5,890 $ 25,333 Adoption of ASC 326 (822) 587 501 1,969 85 797 1,567 2,299 6,983 PCD allowance established in acquisition 69 127 239 240 68 492 5 7 1,247 Provision for loan losses 2,823 352 187 (487) 1,931 2,004 (1,399) 1,254 6,665 Charge-offs (428) (5) (202) — — (34) — (690) (1,359) Recoveries 59 18 268 53 281 186 6 308 1,179 Balance, December 31, 2023 $ 4,980 $ 2,272 $ 7,714 $ 5,998 $ 3,837 $ 5,204 $ 975 $ 9,068 $ 40,048 |
LOAN SERVICING
LOAN SERVICING | 12 Months Ended |
Dec. 31, 2023 | |
Transfers and Servicing [Abstract] | |
LOAN SERVICING | LOAN SERVICING Mortgage loans serviced for others, which are not included in the accompanying consolidated balance sheets, amounted to $1.66 billion and $955.8 million as of December 31, 2023 and December 31, 2022, respectively. Activity in mortgage servicing rights is as follows: Year Ended December 31, (dollars in thousands) 2023 2022 2021 Beginning balance $ 10,147 $ 7,994 $ 5,934 Acquired 10,469 — 370 Capitalized servicing rights 726 530 1,200 Fair value adjustments attributable to payments and principal reductions (2,110) (1,343) (1,788) Fair value adjustments attributable to changes in valuation inputs and assumptions (231) 2,966 2,278 Ending balance $ 19,001 $ 10,147 $ 7,994 |
BANK PREMISES AND EQUIPMENT
BANK PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
BANK PREMISES AND EQUIPMENT | BANK PREMISES AND EQUIPMENT Bank premises and equipment are stated at cost less accumulated depreciation as follows: (dollars in thousands) December 31, 2023 December 31, 2022 Land, buildings, and improvements $ 93,955 $ 77,869 Furniture, fixtures, and equipment 26,205 24,512 Total bank premises and equipment 120,160 102,381 Less accumulated depreciation 55,010 51,912 Total bank premises and equipment, net $ 65,150 $ 50,469 Depreciation expense by category is as follows: Year Ended December 31, (dollars in thousands) 2023 2022 2021 Buildings and improvements $ 1,879 $ 1,623 $ 1,694 Furniture, fixtures, and equipment 1,229 1,420 1,380 Total depreciation expense $ 3,108 $ 3,043 $ 3,074 During 2021, six branches were closed or consolidated as part of a branch rationalization plan. The related bank premises were transferred to held for sale at the lower of the carrying value or the fair value, less estimated costs to sell. There was no bank premises held for sale as of December 31, 2023 and $0.2 million of bank premises held for sale as of December 31, 2022. |
FORECLOSED ASSETS
FORECLOSED ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Other Real Estate, Foreclosed Assets, and Repossessed Assets [Abstract] | |
Foreclosed Assets | FORECLOSED ASSETS Foreclosed assets activity is as follows: Year Ended December 31, (dollars in thousands) 2023 2022 2021 Beginning balance $ 3,030 $ 3,278 $ 4,168 Acquired 271 — — Transfers from loans 1,143 541 4,857 Proceeds from sales (4,093) (475) (5,805) Sales through loan origination — — (252) Net gain on sales 764 118 505 Direct write-downs (263) (432) (195) Ending balance $ 852 $ 3,030 $ 3,278 Gains (losses) on foreclosed assets includes the following: Year Ended December 31, (dollars in thousands) 2023 2022 2021 Direct write-downs $ (263) $ (432) $ (195) Net gain on sales 764 118 505 Gains (losses) on foreclosed assets $ 501 $ (314) $ 310 The carrying value of foreclosed one-to-four family residential real estate properties held was $0.1 million and $20 thousand as of December 31, 2023 and 2022, respectively. As of December 31, 2023, there were 16 one-to-four family residential real estate loans in the process of foreclosure totaling $1.2 million. As of December 31, 2022, there were 4 one-to-four family residential real estate loans in the process of foreclosure totaling $0.2 million. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The Company recorded goodwill of $30.5 million related to the acquisition of Town and Country during the year ended December 31, 2023. There were no additions to goodwill for the year ended December 31, 2022. For the year ended December 31, 2021, the Company recorded goodwill of $5.7 million related to the acquisition of NXT. The goodwill recorded in connection with the acquisitions of Town and Country and NXT were allocated to the Company's only reportable segment, Community Banking. The following table summarizes the changes in the Company's intangible assets: Year Ended December 31, 2023 2022 2021 (dollars in thousands) Core Deposit Customer Relationship Intangible Core Deposit Customer Relationship Intangible Core Deposit Customer Relationship Intangible Beginning balance $ 1,070 $ — $ 1,943 $ — $ 2,798 $ — Additions 21,282 1,000 — — 199 — Amortization (2,578) (92) (873) — (1,054) — Ending balance $ 19,774 $ 908 $ 1,070 $ — $ 1,943 $ — Accumulated amortization $ 23,425 $ 92 $ 20,847 $ — $ 19,974 $ — Amortization of intangible assets for the years subsequent to December 31, 2023 is expected to be as follows (dollars in thousands): Year ended December 31, 2024 $ 2,839 2025 2,726 2026 2,411 2027 2,338 2028 2,255 Thereafter 8,113 Total $ 20,682 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS The Company’s deposits are summarized below: (dollars in thousands) December 31, 2023 December 31, 2022 Noninterest-bearing deposits $ 1,072,407 $ 994,954 Interest-bearing deposits: Interest-bearing demand 1,145,092 1,139,150 Money market 803,381 555,425 Savings 608,424 634,527 Time 627,253 262,968 Brokered 144,880 — Total interest-bearing deposits 3,329,030 2,592,070 Total deposits $ 4,401,437 $ 3,587,024 Interest-bearing demand deposits included $51.3 million of reciprocal transaction deposits as of December 31, 2023. Money market deposits included $155.1 million and $1.7 million of reciprocal transaction deposits as of December 31, 2023 and 2022, respectively. Time deposits included $30.5 million and $1.6 million of reciprocal time deposits as of December 31, 2023, and 2022, respectively. The aggregate amounts of time deposits in denominations of $250 thousand or more amounted to $130.2 million and $27.2 million as of December 31, 2023 and 2022, respectively. The aggregate amounts of time deposits in denominations of $100 thousand or more amounted to $342.8 million and $92.6 million as of December 31, 2023 and 2022, respectively. The components of interest expense on deposits are as follows: Year Ended December 31, (dollars in thousands) 2023 2022 2021 Interest-bearing demand $ 3,130 $ 607 $ 518 Money market 7,352 813 437 Savings 1,033 208 188 Time 10,784 883 1,329 Brokered 2,836 — — Total interest expense on deposits $ 25,135 $ 2,511 $ 2,472 |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 12 Months Ended |
Dec. 31, 2023 | |
Broker-Dealer [Abstract] | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE All repurchase agreements are sweep instruments. The securities underlying the agreements as of December 31, 2023 and 2022 were under the Company’s control in safekeeping at third-party financial institutions, and included debt securities. Information pertaining to securities sold under agreements to repurchase is as follows: (dollars in thousands) December 31, 2023 December 31, 2022 Balance at end of year $ 42,442 $ 43,081 Weighted average rate as of end of year 2.42 % 0.28 % Fair value of securities underlying the agreements $ 49,303 $ 50,771 Carrying value of securities underlying the agreements $ 52,958 $ 55,850 |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS FHLB advances totaled $12.6 million with a weighted average interest rate of 0.55% as of December 31, 2023 and totaled $160.0 million with a weighted average interest rate of 4.29% as of December 31, 2022. The FHLB advances outstanding as of December 31, 2023 mature between 2024 and 2029. Borrowings from the FHLB are secured by FHLB stock held by the Company and pledged security in the form of qualifying loans. The loans pledged as of December 31, 2023 and 2022 totaled $1.20 billion and $892.1 million, respectively. As of December 31, 2023 and 2022, loans pledged also served as collateral for credit exposure of $0.4 million and $0.3 million, respectively, associated with the Bank’s participation in the FHLB’s Mortgage Partnership Finance Program. The Bank also had available borrowings through the discount window of the Federal Reserve Bank of Chicago. Available borrowings are based on the collateral pledged. As of December 31, 2023, debt securities with a carrying value of $9.8 million were pledged, and there was no outstanding balance. As of December 31, 2022, there was no collateral pledged and no outstanding balance. |
SUBORDINATED NOTES
SUBORDINATED NOTES | 12 Months Ended |
Dec. 31, 2023 | |
Subordinated Borrowings [Abstract] | |
SUBORDINATED NOTES | SUBORDINATED NOTES On September 3, 2020, the Company issued $40.0 million of fixed-to-floating rate subordinated notes that mature on September 15, 2030. The subordinated notes, which are unsecured obligations of the Company, bear a fixed interest rate of 4.50% for the first five years after issuance and thereafter bear interest at a floating rate equal to three-month SOFR, as determined on the Floating Interest Determination Date, plus 4.37%. Interest is payable semi-annually during the five year fixed rate period and quarterly during the subsequent five year floating rate period. The subordinated notes have an optional redemption in whole or in part on any interest payment date on or after September 15, 2025. If the subordinated notes are redeemed before they mature, the redemption price will be the principal amount plus any accrued but unpaid interest. The transaction resulted in debt issuance costs of $0.8 million which will be amortized over 10 years. As of December 31, 2023 and 2022, 100% of the subordinated notes qualified as Tier 2 capital. The face value and carrying value of the subordinated notes are summarized below: (dollars in thousands) December 31, 2023 December 31, 2022 Subordinated notes, at face value $ 40,000 $ 40,000 Unamortized issuance costs (526) (605) Subordinated notes, at carrying value $ 39,474 $ 39,395 |
JUNIOR SUBORDINATED DEBENTURES
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | 12 Months Ended |
Dec. 31, 2023 | |
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract] | |
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS | JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS Eight subsidiary business trusts of the Company have issued floating rate capital securities (“capital securities”) which are guaranteed by the Company. Three of these (Town and Country Statutory Trust II, Town and Country Statutory Trust III, and West Plains Investors Statutory Trust I) were acquired by the Company as part of its acquisition of Town and Country. The Company owns all of the outstanding stock of the subsidiary business trusts. The trusts used the proceeds from the issuance of their capital securities to buy floating rate junior subordinated deferrable interest debentures (“junior subordinated debentures”) issued by the Company. These junior subordinated debentures are the only assets of the trusts and the interest payments from the junior subordinated debentures finance the distributions paid on the capital securities. The junior subordinated debentures are unsecured, rank junior and subordinate in the right of payment to all senior debt of the Company, and have an optional redemption in whole or in part on any interest payment date. In accordance with GAAP, the trusts are not consolidated in the Company’s financial statements. The face values and carrying values of the junior subordinated debentures are summarized as follows: Carrying Value (dollars in thousands) Face Value December 31, 2023 December 31, 2022 Heartland Bancorp, Inc. Capital Trust B $ 10,310 $ 10,310 $ 10,310 Heartland Bancorp, Inc. Capital Trust C 10,310 10,310 10,310 Heartland Bancorp, Inc. Capital Trust D 5,155 5,155 5,155 FFBI Capital Trust I 7,217 7,217 7,217 National Bancorp Statutory Trust I 5,773 4,853 4,788 Town and Country Statutory Trust II 4,124 4,401 — Town and Country Statutory Trust III 7,732 7,578 — West Plains Investors Statutory Trust I 3,093 2,965 — Total $ 53,714 $ 52,789 $ 37,780 The interest rates on the junior subordinated debentures are variable, reset quarterly, and are equal to the three-month LIBOR, as determined on the LIBOR Determination Date immediately preceding the Distribution Payment Date specific to each junior subordinated debenture, plus a fixed percentage. Beginning in July 2023, the three-month LIBOR index was replaced by the three-month term SOFR index plus a spread adjustment. The interest rates and maturities of the junior subordinated debentures are summarized as follows: Interest Rate at Variable Interest Rate December 31, December 31, Maturity Date Heartland Bancorp, Inc. Capital Trust B SOFR plus 3.01% 8.41 % 6.83 % April 6, 2034 Heartland Bancorp, Inc. Capital Trust C SOFR plus 1.79 7.18 6.30 June 15, 2037 Heartland Bancorp, Inc. Capital Trust D SOFR plus 1.61 7.00 6.12 September 15, 2037 FFBI Capital Trust I SOFR plus 3.06 8.46 6.88 April 6, 2034 National Bancorp Statutory Trust I SOFR plus 3.16 8.55 7.67 December 15, 2037 Town and Country Statutory Trust II SOFR plus 3.05 8.43 N/A March 17, 2034 Town and Country Statutory Trust III SOFR plus 1.94 7.33 N/A March 22, 2037 West Plains Investors Statutory Trust I SOFR plus 1.71 7.10 N/A June 15, 2037 The distribution rate payable on the debentures is cumulative and payable quarterly in arrears. The Company has the right, subject to events of default, to defer payments of interest on the junior subordinated debentures at any time by extending the interest payment period for a period not exceeding 20 quarterly periods with respect to each deferral period, provided that no extension period may extend beyond the redemption or maturity date of the junior subordinated debentures. The capital securities are subject to mandatory redemption upon payment of the junior subordinated debentures and carry an interest rate identical to that of the related debenture. The junior subordinated debentures maturity dates may be shortened if certain conditions are met, or at any time within 90 days following the occurrence and continuation of certain changes in either tax treatment or the capital treatment of the junior subordinated debentures or the capital securities. If the junior subordinated debentures are redeemed before they mature, the redemption price will be the principal amount plus any accrued but unpaid interest. The Company has the right to terminate each Capital Trust and cause the junior subordinated debentures to be distributed to the holders of the capital securities in liquidation of such trusts. Under current banking regulations, bank holding companies are allowed to include qualifying trust preferred securities in their Tier 1 Capital for regulatory capital purposes, subject to a 25% limitation to all core (Tier 1) capital elements, net of goodwill and other intangible assets less any associated deferred tax liability. As of December 31, 2023 and 2022, 100% of the trust preferred securities qualified as Tier 1 capital under the final rule adopted in March 2005. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS Derivative financial instruments are negotiated contracts entered into by two issuing counterparties containing specific agreement terms, including the underlying instrument, amount, exercise price, and maturities. The derivatives accounting guidance requires that the Company recognize all derivative financial instruments as either assets or liabilities at fair value in the consolidated balance sheets. The Company may utilize interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. Interest Rate Swaps Designated as Cash Flow Hedges The Company designated certain interest rate swap agreements as cash flow hedges on variable-rate borrowings. For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on interest rate swaps designated as cash flow hedging instruments, net of tax, is reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings. The interest rate swap agreements designated as cash flow hedges are summarized as follows: December 31, 2023 December 31, 2022 (dollars in thousands) Notional Fair Notional Fair Fair value recorded in other assets $ 17,000 $ 322 $ 17,000 $ 629 As of December 31, 2023, the interest rate swap agreements designated as cash flow hedges had contractual maturities between 2024 and 2025. As of December 31, 2023 and 2022, counterparties had cash pledged and held on deposit by the Company of $0.6 million and $0.6 million, respectively. The effect of interest rate swap agreements designated as cash flow hedges on the consolidated statements of income are summarized as follows: Location of gross gain (loss) reclassified Amounts of gross gain (loss) Year Ended (dollars in thousands) 2023 2022 2021 Designated as cash flow hedges: Junior subordinated debentures interest expense $ 468 $ (126) $ (412) Interest Rate Swaps Not Designated as Hedging Instruments The Company may offer interest rate swap agreements to its commercial borrowers in connection with their risk management needs. The Company manages the interest rate risk associated with these contracts by entering into an equal and offsetting derivative with a third-party financial institution. While these interest rate swap agreements generally work together as an economic interest rate hedge, the Company did not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred. The interest rate swap agreements not designated as hedging instruments are summarized as follows: December 31, 2023 December 31, 2022 (dollars in thousands) Notional Fair Notional Fair Fair value recorded in other assets: Interest rate swaps with a commercial borrower counterparty $ — $ — $ — $ — Interest rate swaps with a financial institution counterparty 94,497 6,227 106,995 6,981 Total fair value recorded in other assets $ 94,497 $ 6,227 $ 106,995 $ 6,981 Fair value recorded in other liabilities: Interest rate swaps with a commercial borrower counterparty $ 94,497 $ (6,227) $ 106,995 $ (6,981) Interest rate swaps with a financial institution counterparty — — — — Total fair value recorded in other liabilities $ 94,497 $ (6,227) $ 106,995 $ (6,981) As of December 31, 2023, the interest rate swap agreements not designated as hedging instruments had contractual maturities between 2027 and 2035. The effect of interest rate contracts not designated as hedging instruments recognized in other noninterest income on the consolidated statements of income are summarized as follows: Year Ended December 31, 2023 (dollars in thousands) 2023 2022 2021 Not designated as hedging instruments: Gross gains $ 11,198 $ 16,002 $ 13,773 Gross losses (11,198) (16,002) (13,773) Net gains (losses) $ — $ — $ — |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2023 | |
AOCI Attributable to Parent [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table presents the activity and accumulated balances for components of other comprehensive income (loss): Unrealized Gains (Losses) Derivatives Total (dollars in thousands) Available-for-Sale Held-to-Maturity Balance, December 31, 2020 $ 19,578 $ (118) $ (1,307) $ 18,153 Transfer from available-for-sale to held-to-maturity 3,887 (3,887) — — Other comprehensive income (loss) before reclassifications (24,798) — 366 (24,432) Reclassifications — 687 412 1,099 Other comprehensive income (loss), before tax (24,798) 687 778 (23,333) Income tax expense (benefit) (7,069) 196 222 (6,651) Other comprehensive income (loss), after tax (17,729) 491 556 (16,682) Balance, December 31, 2021 5,736 (3,514) (751) 1,471 Transfer from available-for-sale to held-to-maturity 7,664 (7,664) — — Other comprehensive income (loss) before reclassifications (105,459) — 1,183 (104,276) Reclassifications — 1,723 126 1,849 Other comprehensive income (loss), before tax (105,459) 1,723 1,309 (102,427) Income tax expense (benefit) (30,061) 491 373 (29,197) Other comprehensive income (loss), after tax (75,398) 1,232 936 (73,230) Balance, December 31, 2022 (61,998) (9,946) 185 (71,759) Other comprehensive income before reclassifications 16,949 — 161 17,110 Reclassifications 1,820 1,954 (468) 3,306 Other comprehensive income (loss), before tax 18,769 1,954 (307) 20,416 Income tax expense (benefit) 5,350 557 (87) 5,820 Other comprehensive income (loss), after tax 13,419 1,397 (220) 14,596 Balance, December 31, 2023 (48,579) (8,549) (35) (57,163) Reclassifications from accumulated other comprehensive income (loss) for unrealized gains (losses) on debt securities available-for-sale are included in either gains (losses) on sales of securities or provision for credit losses in the accompanying consolidated statements of income. Reclassifications from accumulated other comprehensive income (loss) for unrealized gains on debt securities held-to-maturity are included in securities interest income in the accompanying consolidated statements of income. Reclassifications from accumulated other comprehensive income (loss) for the fair value of derivative financial instruments represent net interest payments received or made on derivatives designated as cash flow hedges. See Note 14 for additional information. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Allocation of income tax expense between current and deferred portions is as follows: Year Ended December 31, (dollars in thousands) 2023 2022 2021 Current Federal $ 12,538 $ 15,194 $ 11,330 State 6,384 7,459 6,053 Total current 18,922 22,653 17,383 . Deferred Federal 2,811 (2,045) 1,945 State 1,006 (874) 963 Total deferred 3,817 (2,919) 2,908 Income tax expense $ 22,739 $ 19,734 $ 20,291 Income tax expense differs from the statutory federal rate due to the following: Year Ended December 31, 2023 2022 2021 (dollars in thousands) Amount Percentage Amount Percentage Amount Percentage Federal income tax, at statutory rate $ 18,602 21.0 % $ 16,000 21.0 % $ 16,078 21.0 % Increase (decrease) resulting from: Federally tax exempt interest income (1,767) (2.0) (1,618) (2.1) (1,426) (1.9) State taxes, net of federal benefit 5,838 6.6 5,285 6.9 5,430 7.1 Other 66 0.1 67 0.1 209 0.3 Income tax expense $ 22,739 25.7 % $ 19,734 25.9 % $ 20,291 26.5 % The components of the deferred tax assets and liabilities are as follows: (dollars in thousands) December 31, 2023 December 31, 2022 Deferred tax assets Allowance for credit losses $ 12,247 $ 7,151 Compensation related 3,230 2,623 Deferred loan fees 676 965 Nonaccrual interest 596 480 Foreclosed assets 18 142 Goodwill 74 153 Net operating loss carryforward 144 — Net unrealized losses on debt securities 23,967 29,874 Other purchase accounting adjustments 5,250 — Other 575 5,237 Total deferred tax assets 46,777 46,625 Deferred tax liabilities Fixed asset depreciation 3,044 3,940 Mortgage servicing rights 5,306 2,868 Other purchase accounting adjustments — 610 Intangible assets 5,584 214 Prepaid assets 816 756 Other 566 2,756 Total deferred tax liabilities 15,316 11,144 Net deferred tax asset $ 31,461 $ 35,481 As of December 31, 2023, the Company had an Illinois net operating loss carryforward of $1.9 million which is available to offset future Illinois taxable income. The Illinois net operating loss carryforward is subject to a $100 thousand limitation through 2023 and will begin to expire in 2044. Management believes that it is more likely than not that the deferred tax assets included in the balance sheet will be realized, and that a valuation allowance was not required for deferred tax assets as of December 31, 2023 and 2022. The Company files consolidated federal and state income tax returns. The Company is generally no longer subject to federal or state income tax examinations for years prior to 2020. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The Company has granted certain restricted stock units that contain non-forfeitable rights to dividend equivalents. Such restricted stock units are considered participating securities. As such, we have included these restricted stock units in the calculation of basic earnings per share and calculate basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Diluted earnings per share is computed using the treasury stock method and reflects the potential dilution from the Company’s outstanding restricted stock units and performance restricted stock units. The following table sets forth the computation of basic and diluted earnings per share: Year Ended December 31, (dollars in thousands) 2023 2022 2021 Numerator: Net income $ 65,842 $ 56,456 $ 56,271 Earnings allocated to participating securities (36) (66) (104) Numerator for earnings per share - basic and diluted $ 65,806 $ 56,390 $ 56,167 Denominator: Weighted average common shares outstanding 31,626,308 28,853,697 27,795,806 Dilutive effect of outstanding restricted stock units 111,839 65,619 15,487 Weighted average common shares outstanding, including all dilutive potential shares 31,738,147 28,919,316 27,811,293 Earnings per share - Basic $ 2.08 $ 1.95 $ 2.02 Earnings per share - Diluted $ 2.07 $ 1.95 $ 2.02 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Profit Sharing Plan During the years ended December 31, 2023, 2022, and 2021, the Company’s profit sharing plan contribution expense amounted to $1.7 million, $1.3 million, and $1.3 million, respectively. The Company’s contributions vest to employees ratably over a six-year period. Medical Insurance Benefits The Company is partially self-insured for medical claims filed by its employees. During the years ended December 31, 2023, 2022, and 2021, medical benefits expense amounted to $6.2 million, $4.9 million, and $4.2 million, respectively. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION PLANS | STOCK-BASED COMPENSATION PLANS The Company has adopted the HBT Financial, Inc. Omnibus Incentive Plan (the “Omnibus Incentive Plan”). The Omnibus Incentive Plan provides for grants of (i) stock options, (ii) stock appreciation rights, (iii) restricted shares, (iv) restricted stock units, (v) performance awards, (vi) other share-based awards and (vii) other cash-based awards to eligible employees, non-employee directors and consultants of the Company. The maximum number of shares of common stock available for issuance under the Omnibus Incentive Plan is 1,820,000 shares. The following is a summary of stock-based compensation expense (benefit): Year Ended December 31, (dollars in thousands) 2023 2022 2021 Restricted stock units $ 1,204 $ 1,334 $ 579 Performance restricted stock units 749 615 185 Total awards classified as equity 1,953 1,949 764 Stock appreciation rights 95 88 226 Total stock-based compensation expense $ 2,048 $ 2,037 $ 990 In February 2022, all outstanding restricted stock unit and performance restricted stock unit agreements were modified to address treatment upon retirement. In the event of retirement, and if the retirement eligibility requirements are met, then 100% of unvested restricted stock units and performance restricted stock units will continue to vest in accordance with the originally established vesting schedule. The retirement modification resulted in the acceleration of $0.6 million of expense, although total compensation costs related to the modified agreements remained the same. Restricted Stock Units A restricted stock unit grants a participant the right to receive one share of the Company’s common stock, following the completion of the requisite service period. Restricted stock units are classified as equity. Compensation cost is based on the Company’s stock price on the grant date and is recognized on a straight-line basis over the service period for the entire award. Dividend equivalents on restricted stock units, which are either accrued until vested or paid at the same time as dividends on common stock, are classified as dividends charged to retained earnings. During the years ended December 31, 2023, 2022, and 2021, the total grant date fair value of the restricted stock units granted was $1.0 million, $1.3 million, and $0.9 million, respectively, based on the grant date closing prices. The total intrinsic value of restricted stock that vested during the years ended December 31, 2023, 2022, 2021 were $1.1 million, $0.7 million, and $0.3 million, respectively. The following is a summary of restricted stock unit activity: Year Ended December 31, 2023 2022 2021 Restricted Weighted Restricted Weighted Restricted Weighted Beginning balance 139,986 $ 18.01 109,244 $ 17.27 71,000 $ 18.98 Granted 41,847 22.72 66,995 18.81 59,994 15.81 Vested (51,693) 17.91 (34,925) 17.26 (20,225) 18.86 Forfeited (1,981) 19.55 (1,328) 18.35 (1,525) 18.11 Ending balance 128,159 $ 19.56 139,986 $ 18.01 109,244 $ 17.27 As of December 31, 2023, unrecognized compensation cost related to the non-vested restricted stock units was $0.9 million. This cost is expected to be recognized over the weighted average remaining service period of 1.7 years. Performance Restricted Stock Units A performance restricted stock unit is similar to a restricted stock unit, except that the number of shares of the Company’s common stock awarded is based on a performance condition and the completion of the requisite service period. The number of shares of the Company’s common stock that may be earned ranges from 0% to 150% of the number of performance restricted stock units granted. Performance restricted stock units are classified as equity. Compensation cost is based on the Company’s stock price on the grant date and an assessment of the probable outcome of the performance condition. Compensation cost is recognized on a straight-line basis over the service period of the entire award. Changes in the performance condition probability assessment result in cumulative catch-up adjustments to the compensation cost recognized. Dividend equivalents on performance restricted stock units, which are accrued until vested, are classified as dividends charged to retained earnings. During the years ended December 31, 2023, 2022, and 2021, the total fair value of the performance restricted stock units granted was $0.4 million, $0.5 million, and $0.6 million, respectively, based on the grant date closing prices and an assessment of the probable outcome of the performance condition on the grant date. The following is a summary of performance restricted stock unit activity: Year Ended December 31, 2023 2022 2021 Performance Weighted Performance Weighted Performance Weighted Beginning balance 62,067 $ 17.02 38,344 $ 15.72 — $ — Granted 17,030 22.72 23,723 19.14 38,344 15.72 Vested — — — — — — Forfeited — — — — — — Ending balance 79,097 $ 18.25 62,067 $ 17.02 38,344 $ 15.72 As of December 31, 2023, unrecognized compensation cost related to non-vested performance restricted stock units was $0.3 million, based on the current assessment of the probable outcome of the performance conditions. This cost is expected to be recognized over the weighted average remaining service period of 1.5 years. Stock Appreciation Rights A stock appreciation right grants a participant the right to receive an amount of cash, the value of which equals the appreciation in the Company’s stock price between the grant date and the exercise date. Stock appreciation rights are classified as liabilities. The liability is based on an option-pricing model used to estimate the fair value of the stock appreciation rights. Compensation cost for non-vested stock appreciation rights is recognized on a straight line basis over the service period of the entire award. The following is a summary of stock appreciation rights activity: Year Ended December 31, 2023 2022 2021 Stock Weighted Stock Weighted Stock Weighted Beginning balance 73,440 $ 16.32 97,920 $ 16.32 105,570 $ 16.32 Granted — — — — — — Exercised — — (24,480) 16.32 (6,120) 16.32 Expired — — — — (1,530) 16.32 Forfeited — — — — — — Ending balance 73,440 $ 16.32 73,440 $ 16.32 97,920 $ 16.32 As of December 31, 2023, all stock appreciation rights were exercisable and have a weighted average remaining term of 5.7 years. Additionally, as of December 31, 2023, there was no unrecognized compensation cost for stock appreciation rights. As of December 31, 2023 and 2022, the liability recorded for outstanding stock appreciation rights was $0.6 million and $0.5 million, respectively. The Company uses an option pricing model to value the stock appreciation rights, using the assumptions in the following table. Expected volatility is derived from the historical volatility of the Company’s stock price and a selected peer group of industry-related companies. December 31, 2023 December 31, 2022 Risk-free interest rate 3.85 % 3.95 % Expected volatility 37.37 % 36.54 % Expected life (in years) 5.7 6.7 Expected dividend yield 3.22 % 3.27 % As of December 31, 2023, the liability recorded for previously exercised stock appreciation rights was $0.2 million, which will be paid in 2024. As of December 31, 2022, the liability recorded for previously exercised stock appreciation rights was $0.5 million. |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2023 | |
Banking and Thrift, Other Disclosure [Abstract] | |
REGULATORY MATTERS | REGULATORY MATTERS The Company (on a consolidated basis) and the Bank are each subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by the regulators that, if undertaken, could have a direct material effect on the consolidated financial statements of the Company and the Bank. Additionally, the ability of the Company to pay dividends to its stockholders is dependent upon the ability of the Bank to pay dividends to the Company. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by regulators about components, risk weightings, and other factors. As allowed under the regulations, the Company and the Bank elected to exclude accumulated other comprehensive income, including unrealized gains and losses on debt securities, in the computation of regulatory capital. Prompt corrective action provisions are not applicable to bank holding companies. Additionally, the Company and the Bank must maintain a “capital conservation buffer” to avoid becoming subject to restrictions on capital distributions and certain discretionary bonus payments to management. As of December 31, 2023 and 2022, the capital conservation buffer was 2.5% of risk-weighted assets. As of December 31, 2023, the Company and the Bank each met all capital adequacy requirements to which they were subject. The actual and required capital amounts and ratios of the Company (on a consolidated basis) and the Bank are as follows: December 31, 2023 Actual For Capital To Be Well (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Consolidated HBT Financial, Inc. Total Capital (to Risk Weighted Assets) $ 603,234 15.33 % $ 314,814 8.00 % N/A N/A Tier 1 Capital (to Risk Weighted Assets) 527,964 13.42 236,110 6.00 N/A N/A Common Equity Tier 1 Capital (to Risk Weighted Assets) 476,789 12.12 177,083 4.50 N/A N/A Tier 1 Capital (to Average Assets) 527,964 10.49 201,231 4.00 N/A N/A Heartland Bank and Trust Company Total Capital (to Risk Weighted Assets) $ 586,604 14.92 % $ 314,496 8.00 % $ 393,119 10.00 % Tier 1 Capital (to Risk Weighted Assets) 550,808 14.01 235,872 6.00 314,496 8.00 Common Equity Tier 1 Capital (to Risk Weighted Assets) 550,808 14.01 176,904 4.50 255,528 6.50 Tier 1 Capital (to Average Assets) 550,808 10.96 201,063 4.00 251,329 5.00 December 31, 2022 Actual For Capital To Be Well (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Consolidated HBT Financial, Inc. Total Capital (to Risk Weighted Assets) $ 516,556 16.27 % $ 254,052 8.00 % N/A N/A Tier 1 Capital (to Risk Weighted Assets) 451,828 14.23 190,539 6.00 N/A N/A Common Equity Tier 1 Capital (to Risk Weighted Assets) 415,213 13.07 142,904 4.50 N/A N/A Tier 1 Capital (to Average Assets) 451,828 10.48 172,427 4.00 N/A N/A Heartland Bank and Trust Company Total Capital (to Risk Weighted Assets) $ 489,316 15.43 % $ 253,643 8.00 % $ 317,054 10.00 % Tier 1 Capital (to Risk Weighted Assets) 463,983 14.63 190,233 6.00 253,643 8.00 Common Equity Tier 1 Capital (to Risk Weighted Assets) 463,983 14.63 142,674 4.50 206,085 6.50 Tier 1 Capital (to Average Assets) 463,983 10.78 172,240 4.00 215,300 5.00 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS 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. There are three levels of inputs that may be used to measure fair values: Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date. Level 2 - Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 - Significant unobservable inputs that reflect a Company’s own assumptions about the assumptions that market participants would use in pricing as asset or liability. The Company uses fair value to measure certain assets and liabilities on a recurring basis, such as investment securities, mortgage servicing rights, and derivatives. For assets measured at the lower of cost or fair value, the fair value measurement criteria may or may not be met during a reporting period, and such measurements are therefore considered "nonrecurring" for purposes of disclosing the Company's fair value measurements. Fair value is used on a nonrecurring basis to adjust carrying values for loans held for sale, collateral-dependent loans, bank premises held for sale, and foreclosed assets. Recurring Basis The following is a description of the methods and significant assumptions used to measure the fair value of assets and liabilities on a recurring basis. Investment Securities When available, the Company uses quoted market prices to determine the fair value of securities; such items are classified in Level 1 of the fair value hierarchy. For the Company’s securities where quoted prices are not available for identical securities in an active market, the Company determines fair value utilizing vendors who apply matrix pricing for similar bonds where no price is observable or may compile prices from various sources. These models are primarily industry-standard models that consider various assumptions, including time value, yield curve, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace. Fair values from these models are verified, where possible, against quoted market prices for recent trading activity of assets with similar characteristics to the security being valued. Such methods are generally classified as Level 2; however, when prices from independent sources vary, cannot be obtained or cannot be corroborated, a security is generally classified as Level 3. The change in fair value of debt securities available-for-sale is recorded through an adjustment to the consolidated statement of comprehensive income (loss). The change in fair value of equity securities with readily determinable fair values is recorded through an adjustment to the consolidated statement of income. Mortgage Servicing Rights The Company has elected to record its mortgage servicing rights at fair value. Mortgage servicing rights do not trade in an active market with readily observable prices. Accordingly, the Company determines the fair value of mortgage servicing rights by estimating the fair value of the future cash flows associated with the mortgage loans being serviced as calculated by an independent third party. Key economic assumptions used in measuring the fair value of mortgage servicing rights include, but are not limited to, prepayment speeds and discount rates. Due to the nature of the valuation inputs, mortgage servicing rights are classified as Level 3. The change in fair value is recorded through an adjustment to the consolidated statement of income. Derivative Financial Instruments Interest rate swap agreements are carried at fair value as determined by dealer valuation models. Based on the inputs used, the derivative financial instruments subjected to recurring fair value adjustments are classified as Level 2. For derivative financial instruments designated as hedging instruments, the change in fair value is recorded through an adjustment to the consolidated statement of comprehensive income (loss). For derivative financial instruments not designated as hedging instruments, the change in fair value is recorded through an adjustment to the consolidated statement of income. The following tables summarize assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 and 2022 by level within the fair value hierarchy: December 31, 2023 (dollars in thousands) Level 1 Level 2 Level 3 Total Debt securities available-for-sale: U.S. Treasury $ 148,622 $ — $ — $ 148,622 U.S. government agency — 52,097 — 52,097 Municipal — 205,557 — 205,557 Mortgage-backed: Agency residential — 173,984 — 173,984 Agency commercial — 127,012 — 127,012 Corporate — 52,189 — 52,189 Equity securities with readily determinable fair values 3,360 — — 3,360 Mortgage servicing rights — — 19,001 19,001 Derivative financial assets — 6,549 — 6,549 Derivative financial liabilities — 6,227 — 6,227 December 31, 2022 (dollars in thousands) Level 1 Level 2 Level 3 Total Debt securities available-for-sale: U.S. Treasury $ 154,515 $ — $ — $ 154,515 U.S. government agency — 55,157 — 55,157 Municipal — 243,829 — 243,829 Mortgage-backed: Agency residential — 195,441 — 195,441 Agency commercial — 132,888 — 132,888 Corporate — 61,694 — 61,694 Equity securities with readily determinable fair values 3,029 — — 3,029 Mortgage servicing rights — — 10,147 10,147 Derivative financial assets — 7,610 — 7,610 Derivative financial liabilities — 6,981 — 6,981 The following tables present additional information about the unobservable inputs used in the fair value measurement of the mortgage servicing rights (dollars in thousands): December 31, 2023 Fair Value Valuation Technique Unobservable Inputs Range Mortgage servicing rights $ 19,001 Discounted cash flows Constant pre-payment rates (CPR) 6.2% to 49.4% (8.4%) Discount rate 9.0% to 37.3% (9.6%) December 31, 2022 Fair Value Valuation Technique Unobservable Inputs Range Mortgage servicing rights $ 10,147 Discounted cash flows Constant pre-payment rates (CPR) 5.3% to 59.7% (8.2%) Discount rate 9.0% to 11.7% (9.3%) Nonrecurring Basis The following is a description of the methods and significant assumptions used to measure the fair value of assets and liabilities on a nonrecurring basis. Loans Held for Sale Mortgage loans originated and held for sale are carried at the lower of cost or estimated fair value. The Company obtains quotes or bids on these loans directly from purchasing financial institutions. Typically, these quotes include a premium on the sale and thus these quotes generally indicate fair value of the held for sale loans is greater than cost. Loans held for sale have been classified as Level 2. Collateral-Dependent Loans Periodically, a collateral-dependent loan is evaluated individually and is reported at the fair value of the underlying collateral, less estimated costs to sell, if repayment is expected solely from the collateral. If the collateral value is not sufficient, a specific reserve is recorded. Collateral values are estimated using recent appraisals and customized discounting criteria. Due to the significance of unobservable inputs, fair values of collateral-dependent loans have been classified as Level 3. Bank Premises Held for Sale Bank premises held for sale are recorded at the lower of cost or fair value, less estimated selling costs, at the date classified as held for sale. Values are estimated using recent appraisals and customized discounting criteria. Due to the significance of unobservable inputs, fair values of collateral-dependent loans have been classified as Level 3. Foreclosed Assets Foreclosed assets are recorded at fair value based on property appraisals, less estimated selling costs, at the date of the transfer. Subsequent to the transfer, foreclosed assets are carried at the lower of cost or fair value, less estimated selling costs. Values are estimated using recent appraisals and customized discounting criteria. Due to the significance of unobservable inputs, fair values of collateral-dependent loans have been classified as Level 3. The following tables summarize assets measured at fair value on a nonrecurring basis as of December 31, 2023 and 2022 by level within the fair value hierarchy: December 31, 2023 (dollars in thousands) Level 1 Level 2 Level 3 Total Loans held for sale $ — $ 2,318 $ — $ 2,318 Collateral-dependent loans — — 32,685 32,685 Foreclosed assets — — 852 852 December 31, 2022 (dollars in thousands) Level 1 Level 2 Level 3 Total Loans held for sale $ — $ 615 $ — $ 615 Collateral-dependent loans — — 17,460 17,460 Bank premises held for sale — — 235 235 Foreclosed assets — — 3,030 3,030 The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements (dollars in thousands): December 31, 2023 Fair Valuation Unobservable Inputs Range Collateral-dependent loans $ 32,685 Appraisal of collateral Appraisal adjustments Not meaningful Foreclosed assets 852 Appraisal Appraisal adjustments 7% (7%) December 31, 2022 Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Collateral-dependent loans $ 17,460 Appraisal of collateral Appraisal adjustments Not meaningful Bank premises held for sale 235 Appraisal Appraisal adjustments 7% (7%) Foreclosed assets 3,030 Appraisal Appraisal adjustments 7% (7%) Other Fair Value Methods The following methods and assumptions were used by the Company in estimating fair value disclosures of its other financial instruments. There were no changes in the methods and significant assumptions used to estimate the fair value of these financial instruments. Cash and Cash Equivalents The carrying amounts of these financial instruments approximate their fair values. Restricted Stock The carrying amount of FHLB stock approximates fair value based on the redemption provisions of the FHLB. Loans The fair value estimation process for the loan portfolio uses an exit price concept and reflects discounts the Company believes are consistent with discounts in the marketplace. Fair values are estimated for portfolios of loans with similar characteristics. Loans are segregated by type such as commercial and industrial, agricultural and farmland, commercial real estate - owner occupied, commercial real estate - non-owner occupied, multi-family, construction and land development, one-to-four family residential, and municipal, consumer, and other. The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for similar maturities. The fair value analysis also includes other assumptions to estimate fair value, intended to approximate those a market participant would use in an orderly transaction, with adjustments for discount rates, interest rates, liquidity, and credit spreads, as appropriate. Investments in Unconsolidated Subsidiaries The fair values of the Company’s investments in unconsolidated subsidiaries are presumed to approximate carrying amounts. Time and Brokered Time Deposits Fair values of certificates of deposit with stated maturities have been estimated using the present value of estimated future cash flows discounted at rates currently offered for similar instruments. Time deposits also include public funds time deposits. Securities Sold Under Agreements to Repurchase The fair values of repurchase agreements with variable interest rates are presumed to approximate their recorded carrying amounts. Subordinated Notes The fair values of subordinated notes are estimated using discounted cash flow analyses based on rates observed on recent debt issuances by other financial institutions. Junior Subordinated Debentures The fair values of subordinated debentures are estimated using discounted cash flow analyses based on rates observed on recent debt issuances by other financial institutions. Accrued Interest The carrying amounts of accrued interest approximate fair value. The following table provides summary information on the carrying amounts and estimated fair values of the Company’s financial instruments: (dollars in thousands) Fair Value December 31, 2023 December 31, 2022 Carrying Estimated Carrying Estimated Financial assets: Cash and cash equivalents Level 1 $ 141,252 $ 141,252 $ 114,159 $ 114,159 Debt securities held-to-maturity Level 2 521,439 466,496 541,600 478,801 Restricted stock Level 3 7,160 7,160 7,965 7,965 Loans, net Level 3 3,364,369 3,349,540 2,594,920 2,566,930 Investments in unconsolidated subsidiaries Level 3 1,614 1,614 1,165 1,165 Accrued interest receivable Level 2 24,534 24,534 19,506 19,506 Financial liabilities: Time deposits Level 3 627,253 619,682 262,968 253,619 Brokered deposits Level 3 144,880 144,944 — — Securities sold under agreements to repurchase Level 2 42,442 42,442 43,081 43,081 Subordinated notes Level 3 39,474 36,993 39,395 37,205 Junior subordinated debentures Level 3 52,789 48,529 37,780 37,030 Accrued interest payable Level 2 6,969 6,969 1,363 1,363 The Company estimated the fair value of lending related commitments as described in Note 22 to be immaterial based on limited interest rate exposure due to their variable nature, short-term commitment periods and termination clauses provided in the agreements. Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair values have been estimated using data which management considered the best available and estimation methodologies deemed suitable for the pertinent category of financial instrument. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Financial Instruments The Bank is party to credit-related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Such commitments and conditional obligations were as follows: Contractual Amount (dollars in thousands) December 31, 2023 December 31, 2022 Commitments to extend credit $ 869,013 $ 756,885 Standby letters of credit 23,732 17,785 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, by the Bank upon extension of credit is based on management’s credit evaluation of the customer. Collateral held varies, but may include real estate, accounts receivable, inventory, property, plant, and equipment, and income-producing properties. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Those standby letters of credit are primarily issued to support extensions of credit. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers. The Bank secures the standby letters of credit with the same collateral used to secure the related loan. Allowance for Credit Losses on Unfunded Lending-related Commitments The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancelable by the Company. The allowance for credit losses on unfunded commitments is included in other liabilities on the consolidated balance sheets and is adjusted through a charge to provision for credit loss expense on the consolidated statements of income. The allowance for credit losses on unfunded commitments estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The allowance for credit losses on unfunded commitments was $3.8 million as of December 31, 2023. Legal Contingencies In the normal course of business, the Company, or its subsidiaries, are involved in various legal proceedings. In the opinion of management, any liability resulting from pending proceedings would not be expected to have a material adverse effect on the Company's consolidated financial statements. PLB Investments LLC, John Kuehner, and A.S. Palmer Investments LLC v. Heartland Bank and Trust Company and PNC Bank N.A., In the United States District Court for the Northern District of Illinois, Case No. 1:20-cv-1023 (“Class Action”); and Melanie E. Damian, As Receiver of Today’s Growth Consultant, Inc. (dba The Income Store) v. Heartland Bank and Trust Company and PNC Bank N.A., In the United States District Court for the Northern District of Illinois, Case No. 1:20-cv-7819 (“Receiver’s Action”) The Bank was a defendant in the purported Class Action lawsuit that was filed on February 12, 2020, in the U.S. District Court for the Northern District of Illinois. The plaintiffs in the Class Action alleged that the Bank negligently enabled and facilitated a fraudulent, Ponzi-like scheme perpetrated by Today’s Growth Consultant, Inc. (dba The Income Store) (“TGC”). Additionally, the Receiver for TGC filed the Receiver’s Action on December 30, 2020, in the U.S. District Court for the Northern District of Illinois, with similar allegations. On February 20, 2023, the Bank reached an agreement in principle to settle both the Class Action and Receiver’s Action in which the Bank would make one-time cash payments totaling $13.0 million, without admitting fault, to release the Bank from further liability and claims in both the Class Action and Receiver’s Action. On August 16, 2023, definitive settlement agreements reflecting the terms of the agreement in principle were approved by the Court, and the Bank made the one-time cash payments totaling $13.0 million during the third quarter of 2023. The settlements do not include any admission of liability or wrongdoing by the Bank, and the Bank expressly denies any liability or wrongdoing with respect to any matter alleged in the Class Action and Receiver’s Action. The Bank agreed in principle to the settlements to avoid the cost, risks and distraction of continued litigation. The Company believes the settlements are in the best interests of the Company and its shareholders. Accordingly, the Bank had $13.0 million accrued related to these matters as of December 31, 2022. The Bank’s insurer reimbursed $7.4 million of the settlement payment which was recorded as an insurance recovery receivable as of December 31, 2022. The net settlement amount of $5.6 million was included in other noninterest expense in the consolidated statements of income during the fourth quarter of 2022. DeBaere, et al v. Heartland Bank and Trust Company The Bank was a defendant in a purported class action lawsuit filed in June 2020, in the Circuit Court of Cook County, Illinois. The plaintiff, a customer of the Bank, alleges that the Bank breached its contract with the plaintiff by (1) charging multiple insufficient funds fees or overdraft fees on a single customer-initiated transaction, and (2) charging overdraft fees for transactions that were authorized on a positive account balance, but when settled, settled into a negative balance. Miller, et al v. State Bank of Lincoln and Heartland Bank and Trust Company The Bank was a defendant in a purported class action lawsuit filed in May 2020, in the Circuit Court of Logan County, Illinois. The plaintiff, a customer of State Bank of Lincoln, which previously merged with the Bank, alleges that the Bank breached its contract with the plaintiff by charging multiple insufficient funds fees or overdraft fees on a single customer-initiated transaction. On May 15, 2023, the Bank reached an agreement in principle to settle both the DeBaere, et al and Miller, et al cases in which the Bank would make one-time cash payments totaling $3.4 million, without admitting fault, to release the Bank from further liability and claims in both the cases. Definitive settlement agreements reflecting the terms of the agreement in principle were approved by the Court on December 15, 2023 in the DeBaere, et al case and on February 16, 2024 in the Miller, et al case. The Bank made the one-time cash payments totaling $3.4 million during the fourth quarter of 2023. The settlements do not include any admission of liability or wrongdoing by the Bank, and the Bank expressly denies any liability or wrongdoing with respect to any matter alleged in the Class Action and Receiver’s Action. The Bank agreed in principle to the settlements to avoid the cost, risks and distraction of continued litigation. The Company believes the settlements are in the best interests of the Company and its shareholders. Accordingly, the Bank had in the aggregate $2.6 million accrued as of December 31, 2022 related to these matters. An initial $2.6 million accrual was recognized in other noninterest expense during the fourth quarter of 2022, reflecting management’s best estimate at that time, and an additional $0.8 million accrual was recognized in other noninterest expense during the second quarter of 2023 following the agreement in principle to settle both the DeBaere, et al and Miller, et al cases. John Pickett v. Town and Country Bank The Bank is a defendant in a purported class action lawsuit filed in October 2023, in the Circuit Court of Sangamon County, Illinois. The plaintiff, a customer of Town and Country Bank, which previously merged with the Bank, alleges that the Bank breached its contract with the plaintiff by charging overdraft fees for transactions that were authorized on a positive account balance, but when settled, settled into a negative balance. The Bank intends to vigorously defend the lawsuit. However, the Company believes an unfavorable outcome is probable at this time, as that term is used in assessing loss contingencies. Accordingly, consistent with the authoritative guidance in the evaluation of contingencies, an accrual has been recorded related to these matters of $0.2 million in the aggregate during the fourth quarter and year ended December 31, 2023. While the amount recorded reflects management’s best estimate as of December 31, 2023, the Company cannot yet offer an opinion on the estimated range of possible loss. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Loans As of December 31, 2023 and 2022, loans to directors, executive officers, principal shareholders and their affiliated entities (“related parties”) totaled $1.1 million and $2.2 million, respectively. These loans were made in the ordinary course of business on substantially the same terms, including interest rates and collateral, as those prevailing for comparable loans with persons not related to us. Deposits Deposits of related parties totaled $4.0 million and $22.0 million as of December 31, 2023 and 2022, respectively. |
CONDENSED PARENT COMPANY ONLY F
CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS | CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS Following are the condensed parent company only financial statements of HBT Financial. Condensed Parent Company Only Balance Sheets (dollars in thousands) December 31, 2023 December 31, 2022 ASSETS Cash and cash equivalents $ 17,214 $ 24,278 Investment in subsidiaries: Bank 563,513 422,217 Non-bank 1,614 1,165 Other assets 2,347 5,338 Total assets $ 584,688 $ 452,998 LIABILITIES Subordinated notes $ 39,474 $ 39,395 Junior subordinated debentures 52,789 37,780 Other liabilities 2,929 2,191 Total liabilities 95,192 79,366 STOCKHOLDERS' EQUITY 489,496 373,632 Total liabilities and stockholders' equity $ 584,688 $ 452,998 Condensed Parent Company Only Statements of Income Year ended December 31, (dollars in thousands) 2023 2022 2021 INCOME Dividends received from bank subsidiary $ 64,000 $ 28,000 $ 20,000 Undistributed earnings from bank subsidiary 9,199 35,044 41,227 Other income 870 51 454 Total income 74,069 63,095 61,681 EXPENSES Interest expense 5,409 3,666 3,305 Other expense 5,517 5,292 3,741 Total expenses 10,926 8,958 7,046 INCOME BEFORE INCOME TAX BENEFIT 63,143 54,137 54,635 TAX BENEFIT (2,699) (2,319) (1,636) NET INCOME $ 65,842 $ 56,456 $ 56,271 Consolidated Parent Company Only Statements of Cash Flow Year ended December 31, (dollars in thousands) 2023 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 65,842 $ 56,456 $ 56,271 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed earnings of consolidated subsidiaries (9,199) (35,044) (41,227) Stock-based compensation 1,953 1,949 764 Amortization of discount and issuance costs on subordinated notes and debentures 139 145 144 Net gain on sale of foreclosed assets (563) — (74) Changes in other assets and liabilities, net 360 769 (2,231) Net cash provided by operating activities 58,532 24,275 13,647 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of securities — — (48) Purchase of foreclosed assets from Heartland Bank — (2,325) — Proceeds from sale of foreclosed assets 2,888 — 74 Net cash paid for acquisition of NXT Bancorporation, Inc. — — (10,411) Net cash paid for acquisition of Town and Country (37,523) — — Net cash used in investing activities (34,635) (2,325) (10,385) CASH FLOWS FROM FINANCING ACTIVITIES Taxes paid related to the vesting of restricted stock units (181) (57) — Repurchase of common stock (8,907) (4,783) (4,906) Cash dividends and dividend equivalents paid (21,873) (18,584) (16,753) Net cash used in financing activities (30,961) (23,424) (21,659) NET DECREASE IN CASH AND EQUIVALENTS (7,064) (1,474) (18,397) CASH AND CASH EQUIVALENTS Beginning of year 24,278 25,752 44,149 End of year $ 17,214 $ 24,278 $ 25,752 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
NET INCOME | $ 65,842 | $ 56,456 | $ 56,271 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements of HBT Financial include the accounts of the Company and its wholly owned bank subsidiary, Heartland Bank. Heartland Bank maintains a limited liability company that holds specific assets for risk mitigation purposes and is consolidated into HBT Financial's consolidated financial statements. The Company also has eight wholly owned subsidiaries, Heartland Bancorp, Inc. Capital Trust B; Heartland Bancorp, Inc. Capital Trust C; Heartland Bancorp, Inc. Capital Trust D; FFBI Capital Trust I; National Bancorp Statutory Trust I; Town and Country Statutory Trust II; Town and Country Statutory Trust III; and West Plains Investors Statutory Trust I, which, in accordance with GAAP, are not consolidated as more fully described in Note 13. Significant intercompany transactions and accounts have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and the reported results of operations for the periods then ended. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for credit losses and fair value of assets acquired and liabilities assumed in business combinations. |
Business and Significant Concentrations of Credit Risk | Business and Significant Concentrations of Credit Risk The Company provides several types of loans to individuals, businesses, and municipal entities, primarily located in its customer service area. Real estate and commercial loans are principal areas of concentration. The Company also strives to meet the borrowing needs of the consumers in its market areas. Extension of credit is generally limited to the primary trade areas of the Company. Primary deposit products of the Bank are noninterest-bearing and interest-bearing demand accounts, savings accounts, money market accounts, and term certificates of deposit. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting consolidated cash flows, cash and cash equivalents include cash on hand and amounts due from banks, all of which have an original maturity within 90 days or less. Cash flows from loans and deposits are reported net. |
Interest-Bearing Time Deposits with Banks | Interest-Bearing Time Deposits with Banks |
Debt Securities | Debt Securities Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity and are carried at amortized cost. Debt securities not classified as held-to-maturity are classified as available-for-sale. Debt securities available-for-sale are carried at fair value with unrealized gains and losses reported in accumulated other comprehensive income (loss). Realized gains and losses on debt securities available-for-sale are included in noninterest income when applicable and reported as a reclassification adjustment in other comprehensive income (loss). Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Interest income includes amortization of purchase premium or discount. Premiums and discounts on debt securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Premiums on callable debt securities are amortized to their earliest call date. Any transfers of debt securities into the held-to-maturity category from the available-for-sale category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer is retained in accumulated other comprehensive income (loss) and in the carrying value of the held-to-maturity securities. Such amounts are amortized over the period to maturity. Allowance for Credit Losses - Debt Securities Available-for-Sale For debt securities available-for-sale in an unrealized loss position, the Company first assesses whether it intends to sell, or if it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security amortized cost basis is written down to fair value through earnings. For debt securities available-for-sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income (loss). Changes in the allowance for credit losses are recorded as provision for credit losses. Losses are charged against the allowance for credit losses when management believes the uncollectibility of a security is confirmed or when either the criteria regarding intent or requirement to sell is met. Allowance for Credit Losses - Debt Securities Held-to-Maturity For debt securities held-to-maturity, the Company measures expected credit losses on a collective basis by major security type. Held-to-maturity securities are evaluated using historical probability of default and loss given default information specific to the investment category. If this evaluation determines that credit losses exist, an allowance for credit loss is recorded and included in earnings as a component of provision for credit losses. The Company's U.S. government agency and agency mortgage-backed securities are explicitly or implicitly guaranteed by the U.S. government, and as such are excluded from the credit loss evaluation as the expectation of non-payment is zero. |
Equity Securities | Equity Securities Equity securities with readily determinable fair values are measured at fair value with changes in fair value recognized in unrealized gains (losses) on equity securities on the statements of income. The Company has elected to measure its equity securities with no readily determinable fair values at their cost minus impairment, if any, plus or minus charges resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. |
Restricted Stock | Restricted Stock Restricted stock, which consists of Federal Home Loan Bank of Chicago (“FHLB”) stock, is carried at cost and evaluated for impairment. |
Loan Held for Sale | Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value. The Company obtains quotes or bids on these loans directly from purchasing financial institutions. Typically, these quotes include a premium on sale and thus quotes typically indicate fair value of the held for sale loans is greater than cost. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Mortgage loans held for sale are generally sold with the mortgage servicing rights retained by the Company. The carrying value of mortgage loans sold is reduced by fair value allocated to the associated mortgage servicing rights. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold. |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost net of the allowance for credit losses. Amortized cost is the unpaid principal balance outstanding, adjusted for charge-offs, net of purchase premiums and discounts, and deferred loan fees and costs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. The accrual of interest on loans is discontinued at the time the loan is 90 days past due, unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income if it was accrued during the current year and charged-off against the allowance for credit losses if accrued in a prior year. Amortization of related deferred loan fees or costs and any purchase premium or discount is also suspended at this time. The interest on these loans is accounted for on the cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, future payments are reasonably assured, and the borrower must generally demonstrate at least 6 months of payment performance. Purchased Credit Deteriorated Loans Purchased credit deteriorated loans (“PCD loans”) are purchased loans, that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Company’s assessment. An allowance for credit losses is determined using the same methodology as other loans held for investment. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of a loan's purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the unpaid principal balance of a loan is a non-credit discount or premium which is amortized into interest income over the life of the loan. Non-Purchased Credit Deteriorated Loans Non-purchased credit deteriorated loans (“non-PCD loans”) are purchased loans, that, as of the date of acquisition, have not experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Company’s assessment. The loan’s purchase price becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the unpaid principal balance of the loan is a discount or premium, which is comprised of a credit and non-credit component, and is accreted or amortized into interest income over the life of the loan. An allowance for credit losses is determined using the same methodology as other loans held for investment, but no "Day One" allowance for credit losses is established on the date of acquisition. Instead, a subsequent "Day Two" allowance for credit losses for non-PCD loans is recorded through the provision for credit losses, which reflects the estimated lifetime credit losses. Allowance for Credit Losses - Loans The allowance for credit losses for loans is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. The Company’s estimate of the allowance for credit losses for loans reflects losses expected over the remaining contractual life of the loans, considering past events, current conditions, and reasonable and supportable forecasts of future economic conditions. Loans are charged off against the allowance for credit losses when management believes the uncollectibility of a loan balance is confirmed. Recoveries are recognized up to the aggregate amount of previously charged-off balances. The allowance for credit losses is established through provision for credit loss expense charged to income. The allowance for credit losses is measured on a collective (pooled) basis when similar risk characteristics exist. The Company has identified the following portfolio segments: Commercial and Industrial : Consists of loans typically granted for working capital, asset acquisition and other business purposes. These loans are underwritten primarily based on the borrower’s cash flow with most loans secondarily supported by collateral. Most commercial and industrial loans are secured by the assets being financed or other business assets, such as accounts receivable, inventory, and equipment, and are typically supported by personal guarantees of the owners. Cash flows and collateral values may fluctuate based on general economic conditions, specific industry conditions and specific borrower circumstances. Commercial Real Estate - Owner Occupied : Consists of loans secured by commercial real estate that is both owned and occupied by the same or a related borrower. These loans are primarily underwritten based on the cash flow of the business occupying the property. As with commercial and industrial loans, cash flows and collateral values may fluctuate based on general economic conditions, specific industry conditions, and specific borrower circumstances. Commercial Real Estate - Non-owner Occupied : Consists of loans secured by commercial real estate for which the primary source of repayment is the sale or rental cash flows from the underlying collateral. These loans are underwritten based primarily on the historic or projected cash flow from the underlying collateral. Adverse economic developments, or an overbuilt market, typically impact commercial real estate projects. Trends in rental and vacancy rates of commercial properties may impact the credit quality of these loans. Construction and Land Development : Consists of loans for speculative and pre-sold construction projects for developers intending to either sell upon completion or hold for long-term investment, as well as construction of projects to be owner occupied. In addition, loans in this segment generally possess a higher inherent risk of loss than other portfolio segments due to risk of non-completion, changes in budgeted costs, and changes in market forces during the term of the construction period. Multi-family : Consists of loans secured by five or more unit apartment buildings. Multi-family loans may be affected by demographic and population trends, unemployment or underemployment, and deteriorating market values of real estate. One-to-four Family Residential : Consists of loans secured by one-to-four family residences, including both first and junior lien mortgage loans for owner occupied and non-owner occupied properties and home equity lines of credit. The degree of risk in residential mortgage lending depends on the local economy, including the local real estate market and unemployment rates. Agricultural and Farmland : Consists of loans typically secured by farmland, agricultural operating assets, or a combination of both, and are generally underwritten to existing cash flows of operating agricultural businesses. Debt repayment is provided by business cash flows. The credit quality of these loans is significantly influenced by changes in prices of corn and soybeans and, to a lesser extent, weather, which has been partially mitigated by federal crop insurance programs. Municipal, Consumer and Other : Loans to municipalities include obligations of municipal entities and loans sponsored by municipal entities for the benefit of a private entity where that private entity, rather than the municipal entity, is responsible for repayment of the obligation. Consumer loans include loans to individuals for consumer purposes and typically consist of small balance loans. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of the consumer loans. Loans to non-depository financial institutions, as well as leases, are also included. The Company uses the discounted cash flow method to estimate expected credit losses for all loan segments, except for consumer loans. Under this method, cash flow projections at the instrument-level are adjusted for estimated prepayments, probability of default, loss given default, and time to recovery. These cash flow projections are discounted at the instrument-level effective yield to calculate the present value of expected cash flows. An allowance for credit losses is established for the difference between a pool's total amortized cost basis and present value of expected cash flows. The Company uses the weighted average remaining maturity method to estimate expected credit losses for consumer loans. Under this method, an expected loss rate is applied to an estimate of future outstanding balance balances of the pool. The Company uses regression analysis of historical internal and peer data to determine which variables are best suited to be economic variables utilized when modeling lifetime probability of default in the discounted cash flow models and loss rates in the weighted average remaining maturity model. The analysis also determines how expected probability of default and loss rates will react to forecasted levels of the economic variables. In addition, qualitative adjustments are made for risk factors that are not considered within our modeling processes but are nonetheless relevant in assessing the expected credit losses within our loan pools. Management estimates the allowance for credit losses on loans using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. As historical credit loss experience provides the basis for the estimation of expected credit losses for pooled loans, adjustments may be necessary to capture differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions. Loans that do not share risk characteristics are evaluated on an individual basis. Loan evaluated individually are not also included in the pooled evaluation. When management determines that foreclosure is probable, or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for anticipated selling costs as appropriate. Although management believes the allowance for credit losses to be adequate, ultimate losses may vary from its estimates. At least quarterly, the Allowance for Credit Losses Committee reviews the adequacy of the allowance, including consideration of the relevant risks in the portfolio, current economic conditions and other factors. In addition, the Company’s regulators review the adequacy of the allowance for credit losses and may require additions to the allowance for credit losses based on their judgment about information available at the time of their examinations. |
Unfunded Lending-related Commitments and Allowance for Credit Losses - Unfunded Lending-related Commitments | Unfunded Lending-related Commitments In the ordinary course of business, the Company has entered into commitments to extend credit, such as lines of credit, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded when they are funded. Allowance for Credit Losses - Unfunded Lending-related Commitments The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on unfunded lending-related commitments is adjusted through provision for credit losses. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credited losses on commitments expected to be funded over its estimated life. |
Loan Servicing | Loan Servicing The Company periodically sells mortgage loans on the secondary market with servicing retained. For sales of mortgage loans, a portion of the cost of originating the loan is allocated to the servicing right based on fair value. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds, and default rates and losses. Mortgage servicing rights are carried at fair value on the consolidated balance sheets and changes in fair value are recorded in mortgage servicing rights fair value adjustment on the consolidated statements of income. |
Bank Owned Life Insurance | Bank Owned Life Insurance Bank owned life insurance represents life insurance policies on the lives of certain current and former employees and directors for which the Company is the sole owner and beneficiary. These policies are recorded as an asset in the consolidated balance sheets at their cash surrender value ("CSV") or the current amount that could be realized if settled. The change in CSV and insurance proceeds received are included as a component of noninterest income in the consolidated statements of income. |
Bank Premises and Equipment | Bank Premises and Equipment Land is carried at cost. Bank premises and equipment are carried at cost less accumulated depreciation. Depreciation is computed over the estimated useful lives of the individual assets using the straight-line method. |
Bank Premises Held for Sale | Bank Premises Held for Sale Bank premises held for sale is carried at the lower of cost or fair value less estimated costs to sell. Bank premises classified as held for sale are not depreciated. |
Lease Obligations | Lease Obligations The Company leases certain bank premises under non-cancelable operating leases in the normal course of business operations. These lease obligations result in the recognition of right-of-use assets and associated lease contract liabilities. The amount of right-of-use assets and associated lease contract liabilities recorded is based on the present value of future minimum lease payments. The discount rate used is equal to the rate implicit in the lease, when readily determinable, or the Company’s incremental borrowing rate at lease inception, on a collateralized basis over a similar term. Right-of-use assets are included in other assets and lease contract liabilities are included in other liabilities in the consolidated balance sheets and were insignificant as of December 31, 2023 and 2022. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of carrying amount or fair value less estimated costs to sell. |
Foreclosed Asset | Foreclosed Assets When it appears likely that we will obtain title to real estate collateral, we develop an exit strategy by assessing overall market conditions, the current use and condition of the asset, and its highest and best use. If determined necessary to maximize value, we complete the necessary improvements or tenant stabilization tasks, with the applicable time value discount and improvement expenses incorporated into our estimates of the expected costs to sell. Substantially all foreclosed real estate is valued on an "as-is" basis. Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less anticipated selling costs at the date of foreclosure, establishing a new cost basis. For foreclosed real estate, selling costs are generally estimated to be 7.0% of the fair value. This estimate includes sales commissions and closing costs. Any write-down based on the fair value of the asset at the date of acquisition is charged to the allowance for credit losses. If the fair value of the asset less estimated cost to sell exceeds the recorded investment in the loan at the date of foreclosure, the increase in value is charged to current year operations unless there has been a prior charge-off, in which case a recovery to the allowance for credit losses is recorded. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less estimated cost to sell. Write-downs of foreclosed assets subsequent to foreclosure are charged to current year operations as are gains and losses from sale of foreclosed assets. Costs to maintain and hold foreclosed assets are expensed. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the original cost over the fair value of assets acquired and liabilities assumed. Goodwill is not amortized but instead is subject to an annual impairment evaluation. The Company has selected December 31 as the date to perform the annual impairment test. At December 31, 2023 and 2022, the Company’s evaluations of goodwill indicated that goodwill was not impaired. Other identifiable intangible assets consist of core deposit intangible and customer relationship intangible assets with definite useful lives which are being amortized over 10 years. The Company will periodically review the status of core deposit intangible and customer relationship intangible assets for any events or circumstances which may change the recoverability of the underlying basis. |
Wealth Management Assets and Fees | Wealth Management Assets and Fees Assets of the wealth management department of the Bank are not included in the consolidated balance sheets as such assets are not assets of the Company or the Bank. Fee income generated from wealth management services is recorded in the consolidated statements of income as a source of noninterest income. |
Employee Benefit Plans and Stock Based Compensation | Employee Benefit Plans The Company sponsors a profit sharing plan under which the Company may contribute, at the discretion of the Board of Directors, a discretionary amount to all participating employees for the plan year. The Company may also make discretionary matching contributions in an amount up to 5% of compensation contributed by employees. Stock Based Compensation The Company recognizes compensation cost over the requisite service period, if any, which is generally defined as the vesting period. For awards classified as equity, compensation cost is based on the fair value of the awards on the grant date. For awards classified as liabilities, compensation cost also includes subsequent remeasurements of the fair value of the awards until the award is settled. The Company’s policy is to recognize forfeitures as they occur. |
Transfers of Financial Assets and Participating Interests | Transfers of Financial Assets and Participating Interests Transfers of an entire financial asset or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. The transfer of a participating interest in an entire financial asset must also meet the definition of a participating interest. A participating interest in a financial asset has all of the following characteristics: (1) from the date of transfer, it must represent a proportionate (pro rata) ownership interest in the financial asset, (2) from the date of transfer, all cash flows received, except any cash flows allocated as any compensation for servicing or other services performed, must be divided proportionately among participating interest holders in the amount equal to their share ownership, (3) the rights of each participating interest holder must have the same priority, and (4) no party has the right to pledge or exchange the entire financial asset unless all participating interest holders agree to do so. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. |
Income Taxes | Income Taxes Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. With regard to uncertain tax matters, the Company recognizes in the consolidated financial statements the impact of a tax position taken, or expected to be taken, if it is more likely than not that the position will be sustained on audit based on the technical merit of the position. Management has analyzed the tax positions taken by the Company and concluded as of December 31, 2023 and 2022, there are no material uncertain tax positions taken or expected to be taken that require recognition of a liability or disclosure in the consolidated financial statements. When applicable, the Company recognizes interest accrued related to unrecognized tax benefits and penalties in operating expenses. |
Derivative Financial Instruments | Derivative Financial Instruments As part of the Company’s asset/liability management, the Company may use interest rate swaps to hedge various exposures or to modify interest rate characteristics of various balance sheet accounts. Derivatives that are used as part of the asset/liability management process are linked to specific assets or liabilities, or pools of assets or liabilities, and have high correlation between the contract and the underlying item being hedged, both at inception and throughout the hedge period. All derivatives are recognized on the consolidated balance sheet at their fair value. On the date the derivative contract is entered into, the Company may designate the derivative as a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability "cash flow" hedge. Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a cash-flow hedge are recorded in other comprehensive income (loss), until earnings are affected by the variability of cash flows (e.g., when periodic settlements on a variable-rate asset or liability are recorded in earnings). The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedged transactions. This process includes linking all derivatives that are designated as cash flow hedges to specific assets and liabilities on the balance sheet or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, the Company discontinues hedge accounting prospectively. The Company discontinues hedge accounting prospectively when (a) it is determined that the derivative is no longer highly effective in offsetting changes in the cash flows of a hedged item (including forecasted transactions); (b) the derivative expires or is sold, terminated, or exercised; (c) the derivative is dedesignated as a hedge instrument, because it is unlikely that a forecasted transaction will occur; or (d) management determines that designation of the derivative as a hedge instrument is no longer appropriate. When hedge accounting is discontinued because it is probable that a forecasted transaction will not occur, the derivative will continue to be carried on the consolidated balance sheet at its fair value, and gains and losses that were accumulated in other comprehensive income (loss) will be recognized immediately in earnings. In all other situations in which hedge accounting is discontinued, the derivative will be carried at its fair value on the balance sheet, with subsequent changes in its fair value recognized in current-period earnings. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on securities available-for-sale and interest rate swap agreements designated as cash flow hedges, are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income (loss). During 2019, in recording the impact of the conversion to a C Corporation, the Company recorded a deferred income tax expense of $3.0 million related to the unrealized gains (losses) on debt securities, and a deferred income tax benefit of $0.3 million related to derivatives, through the income statement in accordance with ASC 740, Income Taxes . This difference will remain in accumulated other comprehensive income (loss) until the underlying debt securities are sold or mature or the underlying cash flow hedging relationships terminate in accordance with the portfolio approach. |
Fair Value Measurements | Fair Value of Financial Instruments Fair value of financial instruments is estimated using relevant market information and other assumptions, as more fully disclosed in Note 21 - Fair Value of Financial Instruments. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers ASC 606, Revenue from Contracts with Customers , requires an entity to recognize revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. To achieve this, the Company takes the following steps: identify the contract(s) with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations in the contract; and recognize revenue when (or as) the Company satisfies a performance obligation. The noninterest revenue streams that are considered to be in the scope of this guidance are discussed below. Card income: Consists of debit and credit card interchange fees. For debit and credit card transactions, the Company considers the merchant as the customer for interchange revenue with the performance obligation being satisfied when the cardholder purchases goods or services from the merchant. Interchange revenue is recognized as the services are provided. Payment is typically received daily. Wealth management fees: Consists of revenue from the management and advisement of client assets and trust administration. The Company’s performance obligation is generally satisfied over time, and the fees are recognized monthly. Payment is typically received quarterly or annually. Service charges on deposit accounts: Consists of account analysis fees, monthly service fees, and other deposit account related fees. The Company’s performance obligation account analysis fees and monthly service fees are ongoing and either party may cancel at any time. These fees are generally recognized as the services are rendered on a monthly basis. Payment is typically received monthly. Other deposit account related fees are largely transaction based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for other deposit account related fees is primarily received immediately through a direct charge to customers’ accounts. |
Segment Reporting | Segment Reporting The Company’s operations consist of one reportable segment. The Company’s chief operating decision maker evaluates the operations of the Company using consolidated information for purposes of allocating resources and assessing performance. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation without any impact on the reported amounts of net income or stockholders’ equity. |
Subsequent Events | Subsequent Events In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the consolidated financial statements were issued. |
Impact of Recently Adopted Accounting Standards and Recent Accounting Pronouncements | Impact of Recently Adopted Accounting Standards On January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , as amended, which replaces the incurred loss methodology with an expected loss methodology, commonly referred to as the current expected credit losses (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and debt securities held-to-maturity. It also applies to off-balance sheet credit exposures not accounted for as insurance, such as loan commitments and letters of credit. In addition, ASC 326 made changes to the accounting for debt securities available-for-sale. One such change is to require credit losses be presented as an allowance rather than as a write-down on debt securities available-for-sale management does not intend to sell or believes that it is more likely than not they will be required to sell. The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after December 31, 2022 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a net decrease to retained earnings of $6.9 million as of January 1, 2023 for the cumulative effect of adopting ASC 326. The following table illustrates the impact of ASC 326 on the allowance for credit losses: January 1, 2023 (dollars in thousands) Pre-ASC 326 Impact of As Reported Assets: Allowance for credit losses on loans Commercial and industrial $ 3,279 $ (822) $ 2,457 Commercial real estate - owner occupied 1,193 587 1,780 Commercial real estate - non-owner occupied 6,721 501 7,222 Construction and land development 4,223 1,969 6,192 Multi-family 1,472 85 1,557 One-to-four family residential 1,759 797 2,556 Agricultural and farmland 796 1,567 2,363 Municipal, consumer, and other 5,890 2,299 8,189 Allowance for credit losses on loans $ 25,333 $ 6,983 $ 32,316 Liabilities: Allowance for credit losses on unfunded commitments $ — $ 2,899 $ 2,899 The Company also adopted ASC 326 using the prospective transition approach for purchase credit deteriorated (“PCD”) financial assets that were previously classified as purchased credit impaired (“PCI”) and accounted for under ASC 310-30. In accordance with ASC 326, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2023, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $0.2 million to the allowance for credit losses. The remaining noncredit discount will be accreted into interest income at the effective interest rate as of January 1, 2023. On January 1, 2023, the Company also adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures . ASU 2022-02 eliminates the recognition and measurement guidance for troubled debt restructurings (“TDRs”) by creditors in ASC 310-40. This ASU also enhances disclosure requirements for certain loan restructurings by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying the recognition and measurement guidance for TDRs, an entity will apply refinancing and restructuring guidance to determine whether a modification or other form of restructuring results in a new loan or a continuation of an existing loan. Additionally, the amendments in ASU 2022-02 require a public business entity to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases in the existing vintage disclosures. This standard did not have a material impact on the Company’s consolidated results of operations or financial position. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform, if certain criteria are met. In January 2021, the FASB also issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, which refined the scope for certain optional expedients and exceptions for contract modifications and hedge accounting to apply to derivative contracts and certain hedging relationships affected by the discounting transition. Entities may apply the provisions as of the beginning of the reporting period when the election is made and are available until December 31, 2024. Adoption of this standard did not have a material impact on the Company’s financial position or results of operations. Recent Accounting Pronouncements In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method . ASU 2022-01 replaces the current last-of-layer hedge accounting method with an expanded portfolio layer method that permits multiple hedged layers of a single closed portfolio. The scope of the portfolio layer method is also expanded to include non-prepayable financial assets. ASU 2022-01 also provides additional guidance on the accounting for and disclosure of hedge basis adjustments that are applicable to the portfolio layer method, and specifies how hedge basis adjustments should be considered when determining credit losses for the assets included in the closed portfolio. Amendments related to hedge basis adjustments which are included in this standard apply on a modified retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earnings on the initial application date. Amendments related to disclosure which are included in this standard may be applied on a prospective basis from the initial application date, or on a retrospective basis to each prior period presented after the date of adoption of the amendments in ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . The amendments in this update are effective for years beginning after December 15, 2023, including interim periods within those years. Early adoption is permitted. This standard is not expected to have a material impact on the Company’s consolidated results of operations or financial position. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions . ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value and that contractual sale restrictions cannot be recognized and measured as a separate unit of account. The amendments in this update are effective for years beginning after December 15, 2023, including interim periods within those years. This standard is not expected to have a material impact on the Company’s consolidated results of operations or financial position. In March 2023, the FASB issued ASU 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (a consensus of the Emerging Issues Task Force) . ASU 2023-02 permits an election to use the proportional amortization method to account for equity investments made primarily for the purpose of receiving income tax credits and other income tax benefits, regardless of the tax credit program from which the income tax credits are received, provided that certain conditions are met. The proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization of the investment and the income tax credits being presented net in the income statement as a component of income tax expense. The amendments in this update are effective for years beginning after December 15, 2023, including interim periods within those years. ASU 2023-02 must be applied on a retrospective or modified retrospective basis. Early adoption is permitted. This standard is not expected to have a material impact on the Company’s consolidated results of operations or financial position. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 expands disclosure requirements for significant segment expenses under Topic 280. The amendments require public entities to disclose significant expense categories for each reportable segment, other segment items, the title and position of the chief operating decision-maker, and interim disclosures of certain segment-related information previously required only on an annual basis. The amendments clarify that entities reporting single segments must disclose both the new and existing segment disclosures under Topic 280, and a public entity is permitted to disclose multiple measures of segment profit or loss if certain criteria are met. The amendments in this update are effective for years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 31, 2024. ASU 2023-07 must be applied on a retrospective basis. Early adoption is permitted. This standard is not expected to have a material impact on the Company’s consolidated results of operations or financial position. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . ASU 2023-09 expands income tax disclosure requirements. The amendments require annual disclosure of certain information relating to the rate reconciliation, income taxes paid by jurisdiction, income (loss) from continuing operations before income tax expense (benefit) disaggregated between domestic and foreign, income tax expense (benefit) from continuing operations disaggregated by federal (national), state, and foreign. The amendments also eliminate certain requirements relating to unrecognized tax benefits and certain deferred tax disclosure relating to subsidiaries and corporate joint ventures. The amendments in this update are effective for years beginning after December 15, 2024. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. Early adoption is permitted. This standard is not expected to have a material impact on the Company’s consolidated results of operations or financial position. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Impact of ASC 326 on the allowance for credit losses | The following table illustrates the impact of ASC 326 on the allowance for credit losses: January 1, 2023 (dollars in thousands) Pre-ASC 326 Impact of As Reported Assets: Allowance for credit losses on loans Commercial and industrial $ 3,279 $ (822) $ 2,457 Commercial real estate - owner occupied 1,193 587 1,780 Commercial real estate - non-owner occupied 6,721 501 7,222 Construction and land development 4,223 1,969 6,192 Multi-family 1,472 85 1,557 One-to-four family residential 1,759 797 2,556 Agricultural and farmland 796 1,567 2,363 Municipal, consumer, and other 5,890 2,299 8,189 Allowance for credit losses on loans $ 25,333 $ 6,983 $ 32,316 Liabilities: Allowance for credit losses on unfunded commitments $ — $ 2,899 $ 2,899 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of expenses incurred related to the acquisition | During the years ended December 31, 2023 and 2022, HBT Financial incurred the following expenses related to the acquisition of Town and Country: Year Ended (dollars in thousands) December 31, 2023 December 31, 2022 PROVISION FOR CREDIT LOSSES $ 5,924 $ — NONINTEREST EXPENSE Salaries 3,584 — Furniture and equipment 39 — Data processing 2,031 304 Marketing and customer relations 24 — Loan collection and servicing 125 — Legal fees and other noninterest expense 1,964 788 Total noninterest expense 7,767 1,092 Total Town and Country acquisition-related expenses $ 13,691 $ 1,092 |
Schedule of recognized identified assets acquired and liabilities assumed | The fair value of the assets acquired and liabilities assumed from Town and Country on the acquisition date of February 1, 2023 were as follows (dollars in thousands): Fair Value Assets acquired: Cash and cash equivalents $ 23,542 Interest-bearing time deposits with banks 249 Debt securities 167,869 Equity securities 301 Restricted stock 2,822 Loans held for sale 1,612 Loans, before allowance for credit losses 635,376 Allowance for credit losses (1,247) Loans, net of allowance for credit losses 634,129 Bank owned life insurance 15,782 Bank premises and equipment 14,828 Foreclosed assets 271 Intangible assets 22,282 Mortgage servicing rights 10,469 Investments in unconsolidated subsidiaries 449 Accrued interest receivable 3,113 Other assets 8,940 Total assets acquired 906,658 Liabilities assumed: Deposits 720,417 FHLB advances 86,439 Junior subordinated debentures 14,949 Other liabilities 5,999 Total liabilities assumed 827,804 Net assets acquired $ 78,854 Consideration paid: Cash $ 37,996 Common stock 71,356 Total consideration paid $ 109,352 Goodwill $ 30,498 The fair value of the assets acquired and liabilities assumed from NXT on the acquisition date were as follows (dollars in thousands): Fair Value Assets acquired: Cash and cash equivalents $ 5,862 Interest-bearing time deposits with banks 739 Debt securities 18,295 Equity securities with readily determinable fair value 43 Restricted stock 796 Loans 194,576 Bank owned life insurance 7,352 Bank premises and equipment 3,667 Core deposit intangible assets 199 Mortgage servicing rights 370 Accrued interest receivable 886 Other assets 1,340 Total assets acquired 234,125 Liabilities assumed: Deposits 181,586 Securities sold under agreements to repurchase 4,080 FHLB advances 12,625 Other liabilities 1,633 Total liabilities assumed 199,924 Net assets acquired $ 34,201 Consideration paid: Cash $ 10,633 Common stock 29,270 Total consideration paid $ 39,903 Goodwill $ 5,702 The following table presents the acquired non-impaired loans as of the acquisition date (dollars in thousands): Fair Value $ 194,576 Gross contractual amounts receivable 196,104 Estimate of contractual cash flows not expected to be collected 1,045 |
Business Combination, Acquisition Related Expenses | During the year ended December 31, 2021, HBT Financial incurred the following expenses related to the acquisition of NXT (dollars in thousands): Salaries $ 65 Furniture and equipment 18 Data processing 355 Marketing and customer relations 12 Loan collection and servicing 11 Legal fees and other noninterest expense 955 Total NXT acquisition-related expenses $ 1,416 |
Schedule of the components of the purchase price of financing receivables purchased with credit deterioration | The following table provides a summary of these PCD loans at acquisition (dollars in thousands): Unpaid principal balance $ 89,822 Allowance for credit losses at acquisition (1,247) Non-credit discount (2,218) Purchase price $ 86,357 |
Business acquisition, pro forma information | The acquisition-related expenses that have been recognized are included in net income in the following table. Pro Forma Year Ended December 31, (dollars in thousands, except per share data) 2023 2022 Total revenues (net interest income and noninterest income) $ 230,171 $ 226,229 Net income 66,056 68,417 Earnings per share - basic 2.07 2.12 Earnings per share - diluted 2.06 2.12 |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and fair values of securities available-for-sale, with gross unrealized gains and losses | The amortized cost and fair values of debt securities, with gross unrealized gains and losses and allowance for credit losses, are as follows: December 31, 2023 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value Available-for-sale: U.S. Treasury $ 159,715 $ — $ (11,093) $ — $ 148,622 U.S. government agency 55,359 — (3,262) — 52,097 Municipal 229,030 26 (23,499) — 205,557 Mortgage-backed: Agency residential 188,641 61 (14,718) — 173,984 Agency commercial 141,214 3 (14,205) — 127,012 Corporate 57,665 9 (5,485) — 52,189 Total available-for-sale $ 831,624 $ 99 $ (72,262) $ — $ 759,461 December 31, 2023 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Allowance for Credit Losses Held-to-maturity: U.S. government agency $ 88,448 $ — $ (8,292) $ 80,156 $ — Municipal 38,442 394 (163) 38,673 — Mortgage-backed: Agency residential 95,828 — (5,569) 90,259 — Agency commercial 298,721 — (41,313) 257,408 — Total held-to-maturity $ 521,439 $ 394 $ (55,337) $ 466,496 $ — December 31, 2022 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale: U.S. Treasury $ 169,860 $ — $ (15,345) $ 154,515 U.S. government agency 59,291 — (4,134) 55,157 Municipal 275,972 46 (32,189) 243,829 Mortgage-backed: Agency residential 213,676 5 (18,240) 195,441 Agency commercial 150,060 — (17,172) 132,888 Corporate 65,597 55 (3,958) 61,694 Total available-for-sale $ 934,456 $ 106 $ (91,038) $ 843,524 December 31, 2022 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Held-to-maturity: U.S. government agency $ 88,424 $ — $ (9,728) $ 78,696 Municipal 42,167 195 (314) 42,048 Mortgage-backed: Agency residential 102,728 — (6,470) 96,258 Agency commercial 308,281 — (46,482) 261,799 Total held-to-maturity $ 541,600 $ 195 $ (62,994) $ 478,801 The following table presents gross unrealized losses and fair value of debt securities available-for-sale that do not have an associated allowance for credit losses as of December 31, 2023, aggregated by category and length of time that individual debt securities have been in a continuous unrealized loss position: December 31, 2023 Investments in a Continuous Unrealized Loss Position Less than 12 Months 12 Months or More Total (dollars in thousands) Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Available-for-sale: U.S. Treasury $ — $ — $ (11,093) $ 148,622 $ (11,093) $ 148,622 U.S. government agency (2) 168 (3,260) 51,910 (3,262) 52,078 Municipal (26) 4,749 (23,473) 194,287 (23,499) 199,036 Mortgage-backed: Agency residential (163) 9,354 (14,555) 156,785 (14,718) 166,139 Agency commercial (26) 3,016 (14,179) 123,404 (14,205) 126,420 Corporate (414) 4,361 (5,071) 45,826 (5,485) 50,187 Total available-for-sale $ (631) $ 21,648 $ (71,631) $ 720,834 $ (72,262) $ 742,482 The following table presents gross unrealized losses and fair value of debt securities, aggregated by category and length of time that individual debt securities have been in a continuous unrealized loss position, as of December 31, 2022: December 31, 2022 Investments in a Continuous Unrealized Loss Position Less than 12 Months 12 Months or More Total (dollars in thousands) Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Available-for-sale: U.S. Treasury $ (8,401) $ 92,445 $ (6,944) $ 62,070 $ (15,345) $ 154,515 U.S. government agency (2,980) 47,370 (1,154) 7,787 (4,134) 55,157 Municipal (10,906) 149,261 (21,283) 87,794 (32,189) 237,055 Mortgage-backed: Agency residential (8,332) 127,288 (9,908) 65,692 (18,240) 192,980 Agency commercial (4,764) 62,672 (12,408) 70,216 (17,172) 132,888 Corporate (2,594) 52,190 (1,364) 5,600 (3,958) 57,790 Total available-for-sale (37,977) 531,226 (53,061) 299,159 (91,038) 830,385 Held-to-maturity: U.S. government agency (1,754) 15,751 (7,974) 62,945 (9,728) 78,696 Municipal (314) 23,433 — — (314) 23,433 Mortgage-backed: Agency residential (4,039) 78,452 (2,431) 17,806 (6,470) 96,258 Agency commercial (16,716) 103,298 (29,766) 158,501 (46,482) 261,799 Total held-to-maturity (22,823) 220,934 (40,171) 239,252 (62,994) 460,186 Total debt securities $ (60,800) $ 752,160 $ (93,232) $ 538,411 $ (154,032) $ 1,290,571 |
Schedule of certain debt securities from the available-for-sale category to the held-to-maturity category | The following is a summary of the amortized cost and fair value of securities transferred to the held-to-maturity category: March 31, 2022 (dollars in thousands) Amortized Fair Value U.S. government agency $ 78,841 $ 71,048 Mortgage-backed: Agency residential 8,175 7,651 Agency commercial 27,834 25,432 Total $ 114,850 $ 104,131 |
Schedule of amortized cost and fair value of securities by contractual maturity | The amortized cost and fair value of debt securities by contractual maturity, as of December 31, 2023, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-Sale Held-to-Maturity (dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in 1 year or less $ 46,534 $ 45,564 $ 2,138 $ 2,141 Due after 1 year through 5 years 208,581 196,431 35,590 34,269 Due after 5 years through 10 years 199,695 174,573 83,488 77,094 Due after 10 years 46,959 41,897 5,674 5,325 Mortgage-backed: Agency residential 188,641 173,984 95,828 90,259 Agency commercial 141,214 127,012 298,721 257,408 Total $ 831,624 $ 759,461 $ 521,439 $ 466,496 |
Schedule of sales of debt securities | Sales of debt securities were as follows during the year ended December 31: Year Ended December 31, (dollars in thousands) 2023 2022 2021 Proceeds from sales $ 185,280 $ — $ — Gross realized gains — — — Gross realized losses (1,820) — — |
Schedule of equity securities with initial cost and carrying values of equity securities, with cumulative net unrealized gains and losses | The initial cost and carrying values of equity securities, with cumulative net unrealized gains and losses are as follows: December 31, 2023 (dollars in thousands) Readily No Readily Initial cost $ 3,143 $ 2,840 Cumulative net unrealized gains (losses) 217 (335) Carrying value $ 3,360 $ 2,505 December 31, 2022 (dollars in thousands) Readily No Readily Initial cost $ 3,142 $ 2,142 Cumulative net unrealized gains (losses) (113) (165) Carrying value $ 3,029 $ 1,977 |
Schedule of unrealized gains (losses) on equity securities | Unrealized gains (losses) on equity securities were as follows during the years ended December 31, 2023, 2022, and 2021: Year Ended December 31, (dollars in thousands) 2023 2022 2021 Readily determinable fair value $ 330 $ (414) $ 107 No readily determinable fair value (170) — — Unrealized gains (losses) on equity securities $ 160 $ (414) $ 107 |
LOANS AND RELATED ALLOWANCE F_2
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Summary of Loans | Major categories of loans are summarized as follows: (dollars in thousands) December 31, 2023 December 31, 2022 Commercial and industrial $ 427,800 $ 266,757 Commercial real estate - owner occupied 295,842 218,503 Commercial real estate - non-owner occupied 880,681 713,202 Construction and land development 363,983 360,824 Multi-family 417,923 287,865 One-to-four family residential 491,508 338,253 Agricultural and farmland 287,294 237,746 Municipal, consumer, and other 239,386 197,103 Loans, before allowance for credit losses 3,404,417 2,620,253 Allowance for credit losses (40,048) (25,333) Loans, net of allowance for credit losses $ 3,364,369 $ 2,594,920 |
Schedule of activity in allowance for loan losses | The following tables detail activity in the allowance for credit losses: (dollars in thousands) Commercial Commercial Commercial Construction Multi-Family One-to-four Agricultural Municipal, Total Balance, December 31, 2020 $ 3,929 $ 3,141 $ 11,251 $ 4,232 $ 1,957 $ 1,801 $ 793 $ 4,734 $ 31,838 Provision for loan losses (1,474) (1,280) (3,130) 340 (694) (472) 52 (1,419) (8,077) Charge-offs (668) (30) — — — (267) — (449) (1,414) Recoveries 653 9 24 342 — 249 — 312 1,589 Balance, December 31, 2021 $ 2,440 $ 1,840 $ 8,145 $ 4,914 $ 1,263 $ 1,311 $ 845 $ 3,178 $ 23,936 Provision for loan losses 88 (1,653) (1,707) (692) 209 146 (49) 2,952 (706) Charge-offs (23) (25) — — — (67) — (569) (684) Recoveries 774 1,031 283 1 — 369 — 329 2,787 Balance, December 31, 2022 $ 3,279 $ 1,193 $ 6,721 $ 4,223 $ 1,472 $ 1,759 $ 796 $ 5,890 $ 25,333 Adoption of ASC 326 (822) 587 501 1,969 85 797 1,567 2,299 6,983 PCD allowance established in acquisition 69 127 239 240 68 492 5 7 1,247 Provision for loan losses 2,823 352 187 (487) 1,931 2,004 (1,399) 1,254 6,665 Charge-offs (428) (5) (202) — — (34) — (690) (1,359) Recoveries 59 18 268 53 281 186 6 308 1,179 Balance, December 31, 2023 $ 4,980 $ 2,272 $ 7,714 $ 5,998 $ 3,837 $ 5,204 $ 975 $ 9,068 $ 40,048 The following tables present loans and the related allowance for credit losses by category: December 31, 2023 (dollars in thousands) Commercial Commercial Commercial Construction Multi-Family One-to-four Agricultural Municipal, Total Loan balances: Collectively evaluated for impairment $ 427,528 $ 295,672 $ 865,394 $ 363,767 $ 417,608 $ 486,049 $ 287,150 $ 224,345 $ 3,367,513 Individually evaluated for impairment 272 170 15,287 216 315 5,459 144 15,041 36,904 Total $ 427,800 $ 295,842 $ 880,681 $ 363,983 $ 417,923 $ 491,508 $ 287,294 $ 239,386 $ 3,404,417 Allowance for credit losses: Collectively evaluated for impairment $ 4,960 $ 2,272 $ 6,693 $ 5,998 $ 3,837 $ 4,957 $ 975 $ 6,137 $ 35,829 Individually evaluated for impairment 20 — 1,021 — — 247 — 2,931 4,219 Total $ 4,980 $ 2,272 $ 7,714 $ 5,998 $ 3,837 $ 5,204 $ 975 $ 9,068 $ 40,048 December 31, 2022 (dollars in thousands) Commercial Commercial Commercial Construction Multi-Family One-to-four Agricultural Municipal, Total Loan balances: Collectively evaluated for impairment $ 261,833 $ 203,558 $ 671,663 $ 359,892 $ 287,298 $ 325,621 $ 233,118 $ 184,579 $ 2,527,562 Individually evaluated for impairment 4,818 11,366 30,509 82 — 8,399 4,033 12,508 71,715 Acquired with deteriorated credit quality 106 3,579 11,030 850 567 4,233 595 16 20,976 Total $ 266,757 $ 218,503 $ 713,202 $ 360,824 $ 287,865 $ 338,253 $ 237,746 $ 197,103 $ 2,620,253 Allowance for loan losses: Collectively evaluated for impairment $ 3,121 $ 1,008 $ 4,332 $ 4,221 $ 1,470 $ 1,709 $ 796 $ 2,327 $ 18,984 Individually evaluated for impairment 158 168 2,388 — — 44 — 3,562 6,320 Acquired with deteriorated credit quality — 17 1 2 2 6 — 1 29 Total $ 3,279 $ 1,193 $ 6,721 $ 4,223 $ 1,472 $ 1,759 $ 796 $ 5,890 $ 25,333 |
Schedule of gross charge-offs, further sorted by origination year | Gross charge-offs, further sorted by origination year, were as follows during the year ended December 31, 2023: Gross Charge-Offs for the Year Ended December 31, 2023 Term Loans by Origination Year Revolving Revolving Total (dollars in thousands) 2023 2022 2021 2020 2019 Prior Commercial and industrial $ — $ — $ — $ — $ — $ — $ 428 $ — $ 428 Commercial real estate - owner occupied — 5 — — — — — — 5 Commercial real estate - non-owner occupied — — — — 31 — 171 — 202 Construction and land development — — — — — — — — — Multi-family — — — — — — — — — One-to-four family residential — — — — 1 33 — — 34 Agricultural and farmland — — — — — — — — — Municipal, consumer, and other 309 100 13 17 10 32 209 — 690 Total $ 309 $ 105 $ 13 $ 17 $ 42 $ 65 $ 808 $ — $ 1,359 |
Schedule of amortized cost of collateral dependent loans | The following table presents collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses allocated to these loans: December 31, 2023 Amortized Cost Allowance Primary Collateral Type (dollars in thousands) Real Estate Vehicles Other Total Commercial and industrial $ — $ 37 $ 235 $ 272 $ 20 Commercial real estate - owner occupied 170 — — 170 — Commercial real estate - non-owner occupied 15,287 — — 15,287 1,021 Construction and land development 216 — — 216 — Multi-family 315 — — 315 — One-to-four family residential 5,459 — — 5,459 247 Agricultural and farmland 144 — — 144 — Municipal, consumer, and other 14,978 39 24 15,041 2,931 Total $ 36,569 $ 76 $ 259 $ 36,904 $ 4,219 |
Schedule of loans individually evaluated for impairment by category PREADOPTION | The following table presents loans individually evaluated for impairment by category of loans: December 31, 2022 (dollars in thousands) Unpaid Recorded Related With an allowance recorded: Commercial and industrial $ 268 $ 254 $ 158 Commercial real estate - owner occupied 635 610 168 Commercial real estate - non-owner occupied 14,269 14,261 2,388 Construction and land development — — — Multi-family — — — One-to-four family residential 569 524 44 Agricultural and farmland — — — Municipal, consumer, and other 8,152 8,131 3,562 Total $ 23,893 $ 23,780 $ 6,320 With no related allowance: Commercial and industrial $ 4,564 $ 4,564 $ — Commercial real estate - owner occupied 10,912 10,756 — Commercial real estate - non-owner occupied 16,327 16,248 — Construction and land development 92 82 — Multi-family — — — One-to-four family residential 9,181 7,875 — Agricultural and farmland 4,440 4,033 — Municipal, consumer, and other 4,410 4,377 — Total $ 49,926 $ 47,935 $ — Total loans individually evaluated for impairment: Commercial and industrial $ 4,832 $ 4,818 $ 158 Commercial real estate - owner occupied 11,547 11,366 168 Commercial real estate - non-owner occupied 30,596 30,509 2,388 Construction and land development 92 82 — Multi-family — — — One-to-four family residential 9,750 8,399 44 Agricultural and farmland 4,440 4,033 — Municipal, consumer, and other 12,562 12,508 3,562 Total $ 73,819 $ 71,715 $ 6,320 The following tables present the average recorded investment and interest income recognized for loans individually evaluated for impairment by category of loans: Year Ended December 31, 2022 2021 (dollars in thousands) Average Interest Average Interest With an allowance recorded: Commercial and industrial $ 204 $ 18 $ 1,593 $ 89 Commercial real estate - owner occupied 970 63 3,052 177 Commercial real estate - non-owner occupied 10,943 740 16,494 791 Construction and land development — — 554 27 Multi-family — — — — One-to-four family residential 384 16 1,988 77 Agricultural and farmland — — 83 4 Municipal, consumer, and other 6,259 236 8,681 158 Total $ 18,760 $ 1,073 $ 32,445 $ 1,323 With no related allowance: Commercial and industrial $ 9,568 $ 453 $ 7,125 $ 330 Commercial real estate - owner occupied 8,619 525 7,771 344 Commercial real estate - non-owner occupied 12,636 1,278 10,339 432 Construction and land development 1,505 106 2,107 28 Multi-family — — 434 10 One-to-four family residential 6,238 352 6,248 192 Agricultural and farmland 228 13 290 17 Municipal, consumer, and other 3,361 148 4,666 86 Total $ 42,155 $ 2,875 $ 38,980 $ 1,439 Total loans individually evaluated for impairment: Commercial and industrial $ 9,772 $ 471 $ 8,718 $ 419 Commercial real estate - owner occupied 9,589 588 10,823 521 Commercial real estate - non-owner occupied 23,579 2,018 26,833 1,223 Construction and land development 1,505 106 2,661 55 Multi-family — — 434 10 One-to-four family residential 6,622 368 8,236 269 Agricultural and farmland 228 13 373 21 Municipal, consumer, and other 9,620 384 13,347 244 Total $ 60,915 $ 3,948 $ 71,425 $ 2,762 |
Schedule of changes in the accretable yield for loans acquired with deteriorated credit quality | Changes in the accretable yield for loans acquired with deteriorated credit quality were as follows: Year Ended December 31, (dollars in thousands) 2022 2021 Beginning balance $ 413 $ 1,397 Reclassification from non-accretable difference 548 508 Disposals — (1,089) Accretion income (231) (403) Ending balance $ 730 $ 413 |
Schedule of recorded investment on past due basis | The following tables present loans by category based on current payment and accrual status: December 31, 2023 Accruing Interest (dollars in thousands) Current 30 - 89 Days 90+ Days Nonaccrual Total Commercial and industrial $ 427,300 $ 228 $ — $ 272 $ 427,800 Commercial real estate - owner occupied 295,672 — — 170 295,842 Commercial real estate - non-owner occupied 878,591 255 — 1,835 880,681 Construction and land development 363,735 32 — 216 363,983 Multi-family 417,597 11 — 315 417,923 One-to-four family residential 484,969 1,735 — 4,804 491,508 Agricultural and farmland 286,820 330 — 144 287,294 Municipal, consumer, and other 239,033 252 37 64 239,386 Total $ 3,393,717 $ 2,843 $ 37 $ 7,820 $ 3,404,417 December 31, 2022 Accruing Interest (dollars in thousands) Current 30 - 89 Days 90+ Days Nonaccrual Total Commercial and industrial $ 266,521 $ 17 $ — $ 219 $ 266,757 Commercial real estate - owner occupied 218,242 187 — 74 218,503 Commercial real estate - non-owner occupied 713,031 — — 171 713,202 Construction and land development 360,763 61 — — 360,824 Multi-family 287,854 11 — — 287,865 One-to-four family residential 335,576 894 145 1,638 338,253 Agricultural and farmland 237,727 19 — — 237,746 Municipal, consumer, and other 196,892 157 1 53 197,103 Total $ 2,616,606 $ 1,346 $ 146 $ 2,155 $ 2,620,253 |
Schedule of non-accrual loans | The following table presents nonaccrual loans with and without a related allowance for credit losses: December 31, 2023 (dollars in thousands) Nonaccrual Nonaccrual Total Commercial and industrial $ 120 $ 152 $ 272 Commercial real estate - owner occupied — 170 170 Commercial real estate - non-owner occupied 188 1,647 1,835 Construction and land development 216 — 216 Multi-family — 315 315 One-to-four family residential 14 4,790 4,804 Agricultural and farmland — 144 144 Municipal, consumer, and other — 64 64 Total $ 538 $ 7,282 $ 7,820 |
Schedule of loans by category risk ratings | The following tables present loans by category based on their assigned risk ratings determined by management: December 31, 2023 (dollars in thousands) Pass Pass-Watch Substandard Doubtful Total Commercial and industrial $ 419,494 $ 7,128 $ 1,178 $ — $ 427,800 Commercial real estate - owner occupied 275,649 14,072 6,121 — 295,842 Commercial real estate - non-owner occupied 822,012 33,283 25,386 — 880,681 Construction and land development 351,087 12,604 292 — 363,983 Multi-family 397,951 19,656 316 — 417,923 One-to-four family residential 472,355 6,671 12,482 — 491,508 Agricultural and farmland 280,867 3,071 3,356 — 287,294 Municipal, consumer, and other 222,474 1,721 15,191 — 239,386 Total $ 3,241,889 $ 98,206 $ 64,322 $ — $ 3,404,417 December 31, 2022 (dollars in thousands) Pass Pass-Watch Substandard Doubtful Total Commercial and industrial $ 255,309 $ 6,630 $ 4,818 $ — $ 266,757 Commercial real estate - owner occupied 198,546 10,105 9,852 — 218,503 Commercial real estate - non-owner occupied 652,691 27,282 33,229 — 713,202 Construction and land development 358,215 2,527 82 — 360,824 Multi-family 283,682 4,183 — — 287,865 One-to-four family residential 323,632 5,907 8,714 — 338,253 Agricultural and farmland 223,114 10,004 4,628 — 237,746 Municipal, consumer, and other 184,299 296 12,508 — 197,103 Total $ 2,479,488 $ 66,934 $ 73,831 $ — $ 2,620,253 |
Schedule of risk ratings of loans, further sorted by origination year | Risk ratings of loans, further sorted by origination year, are as follows as of December 31, 2023: (dollars in thousands) Term Loans by Origination Year Revolving Revolving Total 2023 2022 2021 2020 2019 Prior Commercial and industrial Pass $ 90,931 $ 58,364 $ 19,283 $ 26,816 $ 5,269 $ 29,550 $ 187,579 $ 1,702 $ 419,494 Pass-Watch 2,025 1,340 892 144 753 471 956 547 7,128 Substandard 111 73 327 60 — — 323 284 1,178 Total $ 93,067 $ 59,777 $ 20,502 $ 27,020 $ 6,022 $ 30,021 $ 188,858 $ 2,533 $ 427,800 Commercial real estate - owner occupied Pass $ 27,516 $ 64,229 $ 55,376 $ 53,634 $ 32,469 $ 28,876 $ 13,549 $ — $ 275,649 Pass-Watch 4,061 943 5,210 1,474 1,573 811 — — 14,072 Substandard 2,734 86 1,550 64 164 1,523 — — 6,121 Total $ 34,311 $ 65,258 $ 62,136 $ 55,172 $ 34,206 $ 31,210 $ 13,549 $ — $ 295,842 Commercial real estate - non-owner occupied Pass $ 121,536 $ 240,323 $ 237,953 $ 88,894 $ 82,094 $ 39,228 $ 10,274 $ 1,710 $ 822,012 Pass-Watch 810 6,893 7,013 353 4,230 154 13,585 245 33,283 Substandard 13,376 124 286 — 2,410 9,190 — — 25,386 Total $ 135,722 $ 247,340 $ 245,252 $ 89,247 $ 88,734 $ 48,572 $ 23,859 $ 1,955 $ 880,681 Construction and land development Pass $ 153,499 $ 119,005 $ 56,954 $ 5,596 $ 2,662 $ 796 $ 12,050 $ 525 $ 351,087 Pass-Watch 153 10,750 — — — — 163 1,538 12,604 Substandard — 216 — — — 76 — — 292 Total $ 153,652 $ 129,971 $ 56,954 $ 5,596 $ 2,662 $ 872 $ 12,213 $ 2,063 $ 363,983 Multi-family Pass $ 83,898 $ 81,507 $ 115,402 $ 53,126 $ 34,053 $ 23,570 $ 5,904 $ 491 $ 397,951 Pass-Watch 3,111 7,197 — 8,821 51 468 — 8 19,656 Substandard — — 316 — — — — — 316 Total $ 87,009 $ 88,704 $ 115,718 $ 61,947 $ 34,104 $ 24,038 $ 5,904 $ 499 $ 417,923 One-to-four family residential Pass $ 105,337 $ 91,636 $ 82,289 $ 64,094 $ 21,986 $ 44,241 $ 57,248 $ 5,524 $ 472,355 Pass-Watch 2,382 286 940 486 212 1,804 203 358 6,671 Substandard 1,507 1,527 623 646 1,037 4,166 64 2,912 12,482 Total $ 109,226 $ 93,449 $ 83,852 $ 65,226 $ 23,235 $ 50,211 $ 57,515 $ 8,794 $ 491,508 Agricultural and farmland Pass $ 52,766 $ 37,600 $ 36,604 $ 33,960 $ 8,910 $ 7,756 $ 100,486 $ 2,785 $ 280,867 Pass-Watch 953 361 425 30 71 719 172 340 3,071 Substandard — — 13 3,199 — 144 — — 3,356 Total $ 53,719 $ 37,961 $ 37,042 $ 37,189 $ 8,981 $ 8,619 $ 100,658 $ 3,125 $ 287,294 Municipal, Consumer, and other Pass $ 43,575 $ 57,404 $ 27,904 $ 14,342 $ 1,016 $ 42,499 $ 35,734 $ — $ 222,474 Pass-Watch 9 6 13 — — 1,693 — — 1,721 Substandard 51 103 2 6 8 15,012 8 1 15,191 Total $ 43,635 $ 57,513 $ 27,919 $ 14,348 $ 1,024 $ 59,204 $ 35,742 $ 1 $ 239,386 Total by Risk Rating Pass $ 679,058 $ 750,068 $ 631,765 $ 340,462 $ 188,459 $ 216,516 $ 422,824 $ 12,737 $ 3,241,889 Pass-Watch 13,504 27,776 14,493 11,308 6,890 6,120 15,079 3,036 98,206 Substandard 17,779 2,129 3,117 3,975 3,619 30,111 395 3,197 64,322 Total $ 710,341 $ 779,973 $ 649,375 $ 355,745 $ 198,968 $ 252,747 $ 438,298 $ 18,970 $ 3,404,417 |
LOAN SERVICING (Tables)
LOAN SERVICING (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Schedule of activity in mortgage servicing rights | Activity in mortgage servicing rights is as follows: Year Ended December 31, (dollars in thousands) 2023 2022 2021 Beginning balance $ 10,147 $ 7,994 $ 5,934 Acquired 10,469 — 370 Capitalized servicing rights 726 530 1,200 Fair value adjustments attributable to payments and principal reductions (2,110) (1,343) (1,788) Fair value adjustments attributable to changes in valuation inputs and assumptions (231) 2,966 2,278 Ending balance $ 19,001 $ 10,147 $ 7,994 |
BANK PREMISES AND EQUIPMENT (Ta
BANK PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of bank premises and depreciation expense | Bank premises and equipment are stated at cost less accumulated depreciation as follows: (dollars in thousands) December 31, 2023 December 31, 2022 Land, buildings, and improvements $ 93,955 $ 77,869 Furniture, fixtures, and equipment 26,205 24,512 Total bank premises and equipment 120,160 102,381 Less accumulated depreciation 55,010 51,912 Total bank premises and equipment, net $ 65,150 $ 50,469 Depreciation expense by category is as follows: Year Ended December 31, (dollars in thousands) 2023 2022 2021 Buildings and improvements $ 1,879 $ 1,623 $ 1,694 Furniture, fixtures, and equipment 1,229 1,420 1,380 Total depreciation expense $ 3,108 $ 3,043 $ 3,074 |
FORECLOSED ASSETS (Tables)
FORECLOSED ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Real Estate, Foreclosed Assets, and Repossessed Assets [Abstract] | |
Schedule of foreclosed assets activity | Foreclosed assets activity is as follows: Year Ended December 31, (dollars in thousands) 2023 2022 2021 Beginning balance $ 3,030 $ 3,278 $ 4,168 Acquired 271 — — Transfers from loans 1,143 541 4,857 Proceeds from sales (4,093) (475) (5,805) Sales through loan origination — — (252) Net gain on sales 764 118 505 Direct write-downs (263) (432) (195) Ending balance $ 852 $ 3,030 $ 3,278 |
Schedule of gains (losses) on foreclosed assets | Gains (losses) on foreclosed assets includes the following: Year Ended December 31, (dollars in thousands) 2023 2022 2021 Direct write-downs $ (263) $ (432) $ (195) Net gain on sales 764 118 505 Gains (losses) on foreclosed assets $ 501 $ (314) $ 310 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following table summarizes the changes in the Company's intangible assets: Year Ended December 31, 2023 2022 2021 (dollars in thousands) Core Deposit Customer Relationship Intangible Core Deposit Customer Relationship Intangible Core Deposit Customer Relationship Intangible Beginning balance $ 1,070 $ — $ 1,943 $ — $ 2,798 $ — Additions 21,282 1,000 — — 199 — Amortization (2,578) (92) (873) — (1,054) — Ending balance $ 19,774 $ 908 $ 1,070 $ — $ 1,943 $ — Accumulated amortization $ 23,425 $ 92 $ 20,847 $ — $ 19,974 $ — |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Amortization of intangible assets for the years subsequent to December 31, 2023 is expected to be as follows (dollars in thousands): Year ended December 31, 2024 $ 2,839 2025 2,726 2026 2,411 2027 2,338 2028 2,255 Thereafter 8,113 Total $ 20,682 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
Schedule of Company's interest-bearing deposits | The Company’s deposits are summarized below: (dollars in thousands) December 31, 2023 December 31, 2022 Noninterest-bearing deposits $ 1,072,407 $ 994,954 Interest-bearing deposits: Interest-bearing demand 1,145,092 1,139,150 Money market 803,381 555,425 Savings 608,424 634,527 Time 627,253 262,968 Brokered 144,880 — Total interest-bearing deposits 3,329,030 2,592,070 Total deposits $ 4,401,437 $ 3,587,024 |
Schedule of interest expense on deposits | The components of interest expense on deposits are as follows: Year Ended December 31, (dollars in thousands) 2023 2022 2021 Interest-bearing demand $ 3,130 $ 607 $ 518 Money market 7,352 813 437 Savings 1,033 208 188 Time 10,784 883 1,329 Brokered 2,836 — — Total interest expense on deposits $ 25,135 $ 2,511 $ 2,472 |
Time Deposit Maturities | At December 31, 2023, the scheduled maturities of time and brokered time deposits are as follows (dollars in thousands): Year ended December 31, 2024 $ 676,895 2025 76,274 2026 10,593 2027 4,992 2028 3,255 Thereafter 124 Total $ 772,133 |
SECURITIES SOLD UNDER AGREEME_2
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Broker-Dealer [Abstract] | |
Schedule of Information pertaining to securities sold under agreements to repurchase | Information pertaining to securities sold under agreements to repurchase is as follows: (dollars in thousands) December 31, 2023 December 31, 2022 Balance at end of year $ 42,442 $ 43,081 Weighted average rate as of end of year 2.42 % 0.28 % Fair value of securities underlying the agreements $ 49,303 $ 50,771 Carrying value of securities underlying the agreements $ 52,958 $ 55,850 |
SUBORDINATED NOTES (Tables)
SUBORDINATED NOTES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Subordinated Borrowings [Abstract] | |
Schedule of carrying value of subordinated debentures | The face value and carrying value of the subordinated notes are summarized below: (dollars in thousands) December 31, 2023 December 31, 2022 Subordinated notes, at face value $ 40,000 $ 40,000 Unamortized issuance costs (526) (605) Subordinated notes, at carrying value $ 39,474 $ 39,395 The face values and carrying values of the junior subordinated debentures are summarized as follows: Carrying Value (dollars in thousands) Face Value December 31, 2023 December 31, 2022 Heartland Bancorp, Inc. Capital Trust B $ 10,310 $ 10,310 $ 10,310 Heartland Bancorp, Inc. Capital Trust C 10,310 10,310 10,310 Heartland Bancorp, Inc. Capital Trust D 5,155 5,155 5,155 FFBI Capital Trust I 7,217 7,217 7,217 National Bancorp Statutory Trust I 5,773 4,853 4,788 Town and Country Statutory Trust II 4,124 4,401 — Town and Country Statutory Trust III 7,732 7,578 — West Plains Investors Statutory Trust I 3,093 2,965 — Total $ 53,714 $ 52,789 $ 37,780 |
JUNIOR SUBORDINATED DEBENTURE_2
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract] | |
Schedule of carrying value of subordinated debentures | The face value and carrying value of the subordinated notes are summarized below: (dollars in thousands) December 31, 2023 December 31, 2022 Subordinated notes, at face value $ 40,000 $ 40,000 Unamortized issuance costs (526) (605) Subordinated notes, at carrying value $ 39,474 $ 39,395 The face values and carrying values of the junior subordinated debentures are summarized as follows: Carrying Value (dollars in thousands) Face Value December 31, 2023 December 31, 2022 Heartland Bancorp, Inc. Capital Trust B $ 10,310 $ 10,310 $ 10,310 Heartland Bancorp, Inc. Capital Trust C 10,310 10,310 10,310 Heartland Bancorp, Inc. Capital Trust D 5,155 5,155 5,155 FFBI Capital Trust I 7,217 7,217 7,217 National Bancorp Statutory Trust I 5,773 4,853 4,788 Town and Country Statutory Trust II 4,124 4,401 — Town and Country Statutory Trust III 7,732 7,578 — West Plains Investors Statutory Trust I 3,093 2,965 — Total $ 53,714 $ 52,789 $ 37,780 |
Schedule of interest rates and maturities of the junior subordinated debentures | The interest rates and maturities of the junior subordinated debentures are summarized as follows: Interest Rate at Variable Interest Rate December 31, December 31, Maturity Date Heartland Bancorp, Inc. Capital Trust B SOFR plus 3.01% 8.41 % 6.83 % April 6, 2034 Heartland Bancorp, Inc. Capital Trust C SOFR plus 1.79 7.18 6.30 June 15, 2037 Heartland Bancorp, Inc. Capital Trust D SOFR plus 1.61 7.00 6.12 September 15, 2037 FFBI Capital Trust I SOFR plus 3.06 8.46 6.88 April 6, 2034 National Bancorp Statutory Trust I SOFR plus 3.16 8.55 7.67 December 15, 2037 Town and Country Statutory Trust II SOFR plus 3.05 8.43 N/A March 17, 2034 Town and Country Statutory Trust III SOFR plus 1.94 7.33 N/A March 22, 2037 West Plains Investors Statutory Trust I SOFR plus 1.71 7.10 N/A June 15, 2037 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of fair values of Company's derivative instrument assets and liabilities related to interest rate swap contracts | The interest rate swap agreements designated as cash flow hedges are summarized as follows: December 31, 2023 December 31, 2022 (dollars in thousands) Notional Fair Notional Fair Fair value recorded in other assets $ 17,000 $ 322 $ 17,000 $ 629 |
Schedule of the effect of interest rate contracts designated as cash flow hedges on the consolidated statements of income | The effect of interest rate swap agreements designated as cash flow hedges on the consolidated statements of income are summarized as follows: Location of gross gain (loss) reclassified Amounts of gross gain (loss) Year Ended (dollars in thousands) 2023 2022 2021 Designated as cash flow hedges: Junior subordinated debentures interest expense $ 468 $ (126) $ (412) |
Summary of interest rate swap agreements not designated as hedging instruments | The interest rate swap agreements not designated as hedging instruments are summarized as follows: December 31, 2023 December 31, 2022 (dollars in thousands) Notional Fair Notional Fair Fair value recorded in other assets: Interest rate swaps with a commercial borrower counterparty $ — $ — $ — $ — Interest rate swaps with a financial institution counterparty 94,497 6,227 106,995 6,981 Total fair value recorded in other assets $ 94,497 $ 6,227 $ 106,995 $ 6,981 Fair value recorded in other liabilities: Interest rate swaps with a commercial borrower counterparty $ 94,497 $ (6,227) $ 106,995 $ (6,981) Interest rate swaps with a financial institution counterparty — — — — Total fair value recorded in other liabilities $ 94,497 $ (6,227) $ 106,995 $ (6,981) |
Summary of the effect of interest rate contracts not designated as hedging instruments recognized in other noninterest income | The effect of interest rate contracts not designated as hedging instruments recognized in other noninterest income on the consolidated statements of income are summarized as follows: Year Ended December 31, 2023 (dollars in thousands) 2023 2022 2021 Not designated as hedging instruments: Gross gains $ 11,198 $ 16,002 $ 13,773 Gross losses (11,198) (16,002) (13,773) Net gains (losses) $ — $ — $ — |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
AOCI Attributable to Parent [Abstract] | |
Schedule of the activity and accumulated balances for components of other comprehensive income (loss) | The following table presents the activity and accumulated balances for components of other comprehensive income (loss): Unrealized Gains (Losses) Derivatives Total (dollars in thousands) Available-for-Sale Held-to-Maturity Balance, December 31, 2020 $ 19,578 $ (118) $ (1,307) $ 18,153 Transfer from available-for-sale to held-to-maturity 3,887 (3,887) — — Other comprehensive income (loss) before reclassifications (24,798) — 366 (24,432) Reclassifications — 687 412 1,099 Other comprehensive income (loss), before tax (24,798) 687 778 (23,333) Income tax expense (benefit) (7,069) 196 222 (6,651) Other comprehensive income (loss), after tax (17,729) 491 556 (16,682) Balance, December 31, 2021 5,736 (3,514) (751) 1,471 Transfer from available-for-sale to held-to-maturity 7,664 (7,664) — — Other comprehensive income (loss) before reclassifications (105,459) — 1,183 (104,276) Reclassifications — 1,723 126 1,849 Other comprehensive income (loss), before tax (105,459) 1,723 1,309 (102,427) Income tax expense (benefit) (30,061) 491 373 (29,197) Other comprehensive income (loss), after tax (75,398) 1,232 936 (73,230) Balance, December 31, 2022 (61,998) (9,946) 185 (71,759) Other comprehensive income before reclassifications 16,949 — 161 17,110 Reclassifications 1,820 1,954 (468) 3,306 Other comprehensive income (loss), before tax 18,769 1,954 (307) 20,416 Income tax expense (benefit) 5,350 557 (87) 5,820 Other comprehensive income (loss), after tax 13,419 1,397 (220) 14,596 Balance, December 31, 2023 (48,579) (8,549) (35) (57,163) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of allocation of federal and state income taxes between current and deferred portions | Allocation of income tax expense between current and deferred portions is as follows: Year Ended December 31, (dollars in thousands) 2023 2022 2021 Current Federal $ 12,538 $ 15,194 $ 11,330 State 6,384 7,459 6,053 Total current 18,922 22,653 17,383 . Deferred Federal 2,811 (2,045) 1,945 State 1,006 (874) 963 Total deferred 3,817 (2,919) 2,908 Income tax expense $ 22,739 $ 19,734 $ 20,291 |
Schedule of effective income tax rate reconciliation | Income tax expense differs from the statutory federal rate due to the following: Year Ended December 31, 2023 2022 2021 (dollars in thousands) Amount Percentage Amount Percentage Amount Percentage Federal income tax, at statutory rate $ 18,602 21.0 % $ 16,000 21.0 % $ 16,078 21.0 % Increase (decrease) resulting from: Federally tax exempt interest income (1,767) (2.0) (1,618) (2.1) (1,426) (1.9) State taxes, net of federal benefit 5,838 6.6 5,285 6.9 5,430 7.1 Other 66 0.1 67 0.1 209 0.3 Income tax expense $ 22,739 25.7 % $ 19,734 25.9 % $ 20,291 26.5 % |
Schedule of components of the net deferred tax asset (liability) | The components of the deferred tax assets and liabilities are as follows: (dollars in thousands) December 31, 2023 December 31, 2022 Deferred tax assets Allowance for credit losses $ 12,247 $ 7,151 Compensation related 3,230 2,623 Deferred loan fees 676 965 Nonaccrual interest 596 480 Foreclosed assets 18 142 Goodwill 74 153 Net operating loss carryforward 144 — Net unrealized losses on debt securities 23,967 29,874 Other purchase accounting adjustments 5,250 — Other 575 5,237 Total deferred tax assets 46,777 46,625 Deferred tax liabilities Fixed asset depreciation 3,044 3,940 Mortgage servicing rights 5,306 2,868 Other purchase accounting adjustments — 610 Intangible assets 5,584 214 Prepaid assets 816 756 Other 566 2,756 Total deferred tax liabilities 15,316 11,144 Net deferred tax asset $ 31,461 $ 35,481 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliations of the numerators and denominators used to compute basic and diluted earnings | The following table sets forth the computation of basic and diluted earnings per share: Year Ended December 31, (dollars in thousands) 2023 2022 2021 Numerator: Net income $ 65,842 $ 56,456 $ 56,271 Earnings allocated to participating securities (36) (66) (104) Numerator for earnings per share - basic and diluted $ 65,806 $ 56,390 $ 56,167 Denominator: Weighted average common shares outstanding 31,626,308 28,853,697 27,795,806 Dilutive effect of outstanding restricted stock units 111,839 65,619 15,487 Weighted average common shares outstanding, including all dilutive potential shares 31,738,147 28,919,316 27,811,293 Earnings per share - Basic $ 2.08 $ 1.95 $ 2.02 Earnings per share - Diluted $ 2.07 $ 1.95 $ 2.02 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of stock-based compensation expense | The following is a summary of stock-based compensation expense (benefit): Year Ended December 31, (dollars in thousands) 2023 2022 2021 Restricted stock units $ 1,204 $ 1,334 $ 579 Performance restricted stock units 749 615 185 Total awards classified as equity 1,953 1,949 764 Stock appreciation rights 95 88 226 Total stock-based compensation expense $ 2,048 $ 2,037 $ 990 |
Schedule of the summary of outstanding restricted stock units | The following is a summary of restricted stock unit activity: Year Ended December 31, 2023 2022 2021 Restricted Weighted Restricted Weighted Restricted Weighted Beginning balance 139,986 $ 18.01 109,244 $ 17.27 71,000 $ 18.98 Granted 41,847 22.72 66,995 18.81 59,994 15.81 Vested (51,693) 17.91 (34,925) 17.26 (20,225) 18.86 Forfeited (1,981) 19.55 (1,328) 18.35 (1,525) 18.11 Ending balance 128,159 $ 19.56 139,986 $ 18.01 109,244 $ 17.27 The following is a summary of performance restricted stock unit activity: Year Ended December 31, 2023 2022 2021 Performance Weighted Performance Weighted Performance Weighted Beginning balance 62,067 $ 17.02 38,344 $ 15.72 — $ — Granted 17,030 22.72 23,723 19.14 38,344 15.72 Vested — — — — — — Forfeited — — — — — — Ending balance 79,097 $ 18.25 62,067 $ 17.02 38,344 $ 15.72 |
Schedule of the status of stock appreciation rights and changes | The following is a summary of stock appreciation rights activity: Year Ended December 31, 2023 2022 2021 Stock Weighted Stock Weighted Stock Weighted Beginning balance 73,440 $ 16.32 97,920 $ 16.32 105,570 $ 16.32 Granted — — — — — — Exercised — — (24,480) 16.32 (6,120) 16.32 Expired — — — — (1,530) 16.32 Forfeited — — — — — — Ending balance 73,440 $ 16.32 73,440 $ 16.32 97,920 $ 16.32 |
Schedule of assumptions used in valuing stock appreciation rights | The Company uses an option pricing model to value the stock appreciation rights, using the assumptions in the following table. Expected volatility is derived from the historical volatility of the Company’s stock price and a selected peer group of industry-related companies. December 31, 2023 December 31, 2022 Risk-free interest rate 3.85 % 3.95 % Expected volatility 37.37 % 36.54 % Expected life (in years) 5.7 6.7 Expected dividend yield 3.22 % 3.27 % |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Banking and Thrift, Other Disclosure [Abstract] | |
Schedule of the Company's and the bank subsidiaries' actual and required capital amounts and ratios | The actual and required capital amounts and ratios of the Company (on a consolidated basis) and the Bank are as follows: December 31, 2023 Actual For Capital To Be Well (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Consolidated HBT Financial, Inc. Total Capital (to Risk Weighted Assets) $ 603,234 15.33 % $ 314,814 8.00 % N/A N/A Tier 1 Capital (to Risk Weighted Assets) 527,964 13.42 236,110 6.00 N/A N/A Common Equity Tier 1 Capital (to Risk Weighted Assets) 476,789 12.12 177,083 4.50 N/A N/A Tier 1 Capital (to Average Assets) 527,964 10.49 201,231 4.00 N/A N/A Heartland Bank and Trust Company Total Capital (to Risk Weighted Assets) $ 586,604 14.92 % $ 314,496 8.00 % $ 393,119 10.00 % Tier 1 Capital (to Risk Weighted Assets) 550,808 14.01 235,872 6.00 314,496 8.00 Common Equity Tier 1 Capital (to Risk Weighted Assets) 550,808 14.01 176,904 4.50 255,528 6.50 Tier 1 Capital (to Average Assets) 550,808 10.96 201,063 4.00 251,329 5.00 December 31, 2022 Actual For Capital To Be Well (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Consolidated HBT Financial, Inc. Total Capital (to Risk Weighted Assets) $ 516,556 16.27 % $ 254,052 8.00 % N/A N/A Tier 1 Capital (to Risk Weighted Assets) 451,828 14.23 190,539 6.00 N/A N/A Common Equity Tier 1 Capital (to Risk Weighted Assets) 415,213 13.07 142,904 4.50 N/A N/A Tier 1 Capital (to Average Assets) 451,828 10.48 172,427 4.00 N/A N/A Heartland Bank and Trust Company Total Capital (to Risk Weighted Assets) $ 489,316 15.43 % $ 253,643 8.00 % $ 317,054 10.00 % Tier 1 Capital (to Risk Weighted Assets) 463,983 14.63 190,233 6.00 253,643 8.00 Common Equity Tier 1 Capital (to Risk Weighted Assets) 463,983 14.63 142,674 4.50 206,085 6.50 Tier 1 Capital (to Average Assets) 463,983 10.78 172,240 4.00 215,300 5.00 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of assets measured at fair value on a recurring basis | The following tables summarize assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 and 2022 by level within the fair value hierarchy: December 31, 2023 (dollars in thousands) Level 1 Level 2 Level 3 Total Debt securities available-for-sale: U.S. Treasury $ 148,622 $ — $ — $ 148,622 U.S. government agency — 52,097 — 52,097 Municipal — 205,557 — 205,557 Mortgage-backed: Agency residential — 173,984 — 173,984 Agency commercial — 127,012 — 127,012 Corporate — 52,189 — 52,189 Equity securities with readily determinable fair values 3,360 — — 3,360 Mortgage servicing rights — — 19,001 19,001 Derivative financial assets — 6,549 — 6,549 Derivative financial liabilities — 6,227 — 6,227 December 31, 2022 (dollars in thousands) Level 1 Level 2 Level 3 Total Debt securities available-for-sale: U.S. Treasury $ 154,515 $ — $ — $ 154,515 U.S. government agency — 55,157 — 55,157 Municipal — 243,829 — 243,829 Mortgage-backed: Agency residential — 195,441 — 195,441 Agency commercial — 132,888 — 132,888 Corporate — 61,694 — 61,694 Equity securities with readily determinable fair values 3,029 — — 3,029 Mortgage servicing rights — — 10,147 10,147 Derivative financial assets — 7,610 — 7,610 Derivative financial liabilities — 6,981 — 6,981 |
Schedule of quantitative information about the unobservable inputs used in recurring Level 3 fair value measurements | The following tables present additional information about the unobservable inputs used in the fair value measurement of the mortgage servicing rights (dollars in thousands): December 31, 2023 Fair Value Valuation Technique Unobservable Inputs Range Mortgage servicing rights $ 19,001 Discounted cash flows Constant pre-payment rates (CPR) 6.2% to 49.4% (8.4%) Discount rate 9.0% to 37.3% (9.6%) December 31, 2022 Fair Value Valuation Technique Unobservable Inputs Range Mortgage servicing rights $ 10,147 Discounted cash flows Constant pre-payment rates (CPR) 5.3% to 59.7% (8.2%) Discount rate 9.0% to 11.7% (9.3%) |
Summary of assets measured at fair value on a nonrecurring basis | The following tables summarize assets measured at fair value on a nonrecurring basis as of December 31, 2023 and 2022 by level within the fair value hierarchy: December 31, 2023 (dollars in thousands) Level 1 Level 2 Level 3 Total Loans held for sale $ — $ 2,318 $ — $ 2,318 Collateral-dependent loans — — 32,685 32,685 Foreclosed assets — — 852 852 December 31, 2022 (dollars in thousands) Level 1 Level 2 Level 3 Total Loans held for sale $ — $ 615 $ — $ 615 Collateral-dependent loans — — 17,460 17,460 Bank premises held for sale — — 235 235 Foreclosed assets — — 3,030 3,030 |
Schedule of quantitative information about the unobservable inputs used in non-recurring Level 3 fair value measurements | The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements (dollars in thousands): December 31, 2023 Fair Valuation Unobservable Inputs Range Collateral-dependent loans $ 32,685 Appraisal of collateral Appraisal adjustments Not meaningful Foreclosed assets 852 Appraisal Appraisal adjustments 7% (7%) December 31, 2022 Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Collateral-dependent loans $ 17,460 Appraisal of collateral Appraisal adjustments Not meaningful Bank premises held for sale 235 Appraisal Appraisal adjustments 7% (7%) Foreclosed assets 3,030 Appraisal Appraisal adjustments 7% (7%) |
Summary information on the carrying amounts and estimated fair values of the Company's financial instruments | The following table provides summary information on the carrying amounts and estimated fair values of the Company’s financial instruments: (dollars in thousands) Fair Value December 31, 2023 December 31, 2022 Carrying Estimated Carrying Estimated Financial assets: Cash and cash equivalents Level 1 $ 141,252 $ 141,252 $ 114,159 $ 114,159 Debt securities held-to-maturity Level 2 521,439 466,496 541,600 478,801 Restricted stock Level 3 7,160 7,160 7,965 7,965 Loans, net Level 3 3,364,369 3,349,540 2,594,920 2,566,930 Investments in unconsolidated subsidiaries Level 3 1,614 1,614 1,165 1,165 Accrued interest receivable Level 2 24,534 24,534 19,506 19,506 Financial liabilities: Time deposits Level 3 627,253 619,682 262,968 253,619 Brokered deposits Level 3 144,880 144,944 — — Securities sold under agreements to repurchase Level 2 42,442 42,442 43,081 43,081 Subordinated notes Level 3 39,474 36,993 39,395 37,205 Junior subordinated debentures Level 3 52,789 48,529 37,780 37,030 Accrued interest payable Level 2 6,969 6,969 1,363 1,363 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of commitments and conditional obligations | Such commitments and conditional obligations were as follows: Contractual Amount (dollars in thousands) December 31, 2023 December 31, 2022 Commitments to extend credit $ 869,013 $ 756,885 Standby letters of credit 23,732 17,785 |
CONDENSED PARENT COMPANY ONLY_2
CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of condensed parent company only balance sheets | Condensed Parent Company Only Balance Sheets (dollars in thousands) December 31, 2023 December 31, 2022 ASSETS Cash and cash equivalents $ 17,214 $ 24,278 Investment in subsidiaries: Bank 563,513 422,217 Non-bank 1,614 1,165 Other assets 2,347 5,338 Total assets $ 584,688 $ 452,998 LIABILITIES Subordinated notes $ 39,474 $ 39,395 Junior subordinated debentures 52,789 37,780 Other liabilities 2,929 2,191 Total liabilities 95,192 79,366 STOCKHOLDERS' EQUITY 489,496 373,632 Total liabilities and stockholders' equity $ 584,688 $ 452,998 |
Schedule of condensed parent company only statements of income | Condensed Parent Company Only Statements of Income Year ended December 31, (dollars in thousands) 2023 2022 2021 INCOME Dividends received from bank subsidiary $ 64,000 $ 28,000 $ 20,000 Undistributed earnings from bank subsidiary 9,199 35,044 41,227 Other income 870 51 454 Total income 74,069 63,095 61,681 EXPENSES Interest expense 5,409 3,666 3,305 Other expense 5,517 5,292 3,741 Total expenses 10,926 8,958 7,046 INCOME BEFORE INCOME TAX BENEFIT 63,143 54,137 54,635 TAX BENEFIT (2,699) (2,319) (1,636) NET INCOME $ 65,842 $ 56,456 $ 56,271 |
Schedule of condensed parent company only statements of cash flows | Consolidated Parent Company Only Statements of Cash Flow Year ended December 31, (dollars in thousands) 2023 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 65,842 $ 56,456 $ 56,271 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed earnings of consolidated subsidiaries (9,199) (35,044) (41,227) Stock-based compensation 1,953 1,949 764 Amortization of discount and issuance costs on subordinated notes and debentures 139 145 144 Net gain on sale of foreclosed assets (563) — (74) Changes in other assets and liabilities, net 360 769 (2,231) Net cash provided by operating activities 58,532 24,275 13,647 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of securities — — (48) Purchase of foreclosed assets from Heartland Bank — (2,325) — Proceeds from sale of foreclosed assets 2,888 — 74 Net cash paid for acquisition of NXT Bancorporation, Inc. — — (10,411) Net cash paid for acquisition of Town and Country (37,523) — — Net cash used in investing activities (34,635) (2,325) (10,385) CASH FLOWS FROM FINANCING ACTIVITIES Taxes paid related to the vesting of restricted stock units (181) (57) — Repurchase of common stock (8,907) (4,783) (4,906) Cash dividends and dividend equivalents paid (21,873) (18,584) (16,753) Net cash used in financing activities (30,961) (23,424) (21,659) NET DECREASE IN CASH AND EQUIVALENTS (7,064) (1,474) (18,397) CASH AND CASH EQUIVALENTS Beginning of year 24,278 25,752 44,149 End of year $ 17,214 $ 24,278 $ 25,752 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2023 USD ($) segment subsidiary | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2019 USD ($) | |
Accounting Policies [Abstract] | ||||
Number of subsidiaries | subsidiary | 8 | |||
Period of borrower payment performance | 6 months | |||
Foreclosed asset, selling costs, percentage of fair value | 0.070 | |||
Finite-lived intangible asset, useful life (in years) | 10 years | |||
Defined contribution plan, employer matching contribution, percent of employees' gross pay | 5% | |||
Unrecognized tax benefits, period increase (decrease) | $ 0 | $ 0 | ||
Deferred income tax expense (benefit) | $ 3,817,000 | $ (2,919,000) | $ 2,908,000 | $ 3,000,000 |
Deferred other tax expense (benefit) | $ 300,000 | |||
Number of segments | segment | 1 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impact of ASC 326 on the allowance for credit losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jan. 01, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | $ 25,333 | $ 40,048 | $ 25,333 | $ 23,936 | $ 31,838 |
PCD allowance established in acquisition | 1,247 | ||||
Stockholders’ equity | 489,496 | 373,632 | 411,881 | 363,917 | |
Retained Earnings | |||||
ACCOUNTING POLICIES | |||||
Stockholders’ equity | 269,051 | 232,004 | 194,132 | 154,614 | |
Commercial and industrial | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | 3,279 | 4,980 | 3,279 | 2,440 | 3,929 |
PCD allowance established in acquisition | 69 | ||||
Commercial real estate - owner occupied | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | 1,193 | 2,272 | 1,193 | 1,840 | 3,141 |
PCD allowance established in acquisition | 127 | ||||
Commercial real estate - non-owner occupied | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | 6,721 | 7,714 | 6,721 | 8,145 | 11,251 |
PCD allowance established in acquisition | 239 | ||||
Construction and land development | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | 4,223 | 5,998 | 4,223 | 4,914 | 4,232 |
PCD allowance established in acquisition | 240 | ||||
Multi-family | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | 1,472 | 3,837 | 1,472 | 1,263 | 1,957 |
PCD allowance established in acquisition | 68 | ||||
One-to-four family residential | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | 1,759 | 5,204 | 1,759 | 1,311 | 1,801 |
PCD allowance established in acquisition | 492 | ||||
Agricultural and farmland | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | 796 | 975 | 796 | 845 | 793 |
PCD allowance established in acquisition | 5 | ||||
Municipal, consumer, and other | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | 5,890 | 9,068 | 5,890 | $ 3,178 | $ 4,734 |
PCD allowance established in acquisition | 7 | ||||
Allowance for credit losses on unfunded commitments | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | 0 | $ 3,800 | |||
Cumulative Effect, Period of Adoption, Adjustment | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | 6,983 | 6,983 | |||
PCD allowance established in acquisition | 200 | ||||
Stockholders’ equity | (6,922) | ||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | |||||
ACCOUNTING POLICIES | |||||
Stockholders’ equity | (6,922) | ||||
Cumulative Effect, Period of Adoption, Adjustment | Commercial and industrial | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | (822) | (822) | |||
Cumulative Effect, Period of Adoption, Adjustment | Commercial real estate - owner occupied | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | 587 | 587 | |||
Cumulative Effect, Period of Adoption, Adjustment | Commercial real estate - non-owner occupied | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | 501 | 501 | |||
Cumulative Effect, Period of Adoption, Adjustment | Construction and land development | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | 1,969 | 1,969 | |||
Cumulative Effect, Period of Adoption, Adjustment | Multi-family | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | 85 | 85 | |||
Cumulative Effect, Period of Adoption, Adjustment | One-to-four family residential | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | 797 | 797 | |||
Cumulative Effect, Period of Adoption, Adjustment | Agricultural and farmland | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | 1,567 | 1,567 | |||
Cumulative Effect, Period of Adoption, Adjustment | Municipal, consumer, and other | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | 2,299 | $ 2,299 | |||
Cumulative Effect, Period of Adoption, Adjustment | Allowance for credit losses on unfunded commitments | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | 2,899 | ||||
Cumulative Effect, Period of Adoption, Adjusted Balance | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | 32,316 | ||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Commercial and industrial | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | 2,457 | ||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Commercial real estate - owner occupied | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | 1,780 | ||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Commercial real estate - non-owner occupied | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | 7,222 | ||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Construction and land development | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | 6,192 | ||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Multi-family | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | 1,557 | ||||
Cumulative Effect, Period of Adoption, Adjusted Balance | One-to-four family residential | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | 2,556 | ||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Agricultural and farmland | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | 2,363 | ||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Municipal, consumer, and other | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | 8,189 | ||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Allowance for credit losses on unfunded commitments | |||||
ACCOUNTING POLICIES | |||||
Allowance for Credit Losses | $ 2,899 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Feb. 01, 2023 | Oct. 01, 2021 | Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 59,820 | $ 29,322 | |||
Town and Country | |||||
Business Acquisition [Line Items] | |||||
Percentage of voting interests acquired | 100% | ||||
Stock consideration per share (shares per share) | 1.9010 | ||||
Cash consideration per share (in dollars per share) | $ 35.66 | ||||
Stock consideration (number of shares) | 3,378,600 | ||||
Cash consideration | $ 37,996 | ||||
Share price (in dollars per share) | $ 21.12 | ||||
Total consideration | $ 109,352 | ||||
Maximum period for refinement of fair values from closing date | 1 year | ||||
Adjustment, income tax assets and liabilities | $ 100 | ||||
Goodwill | $ 30,498 | ||||
Total NXT acquisition-related expenses | 13,691 | $ 1,092 | |||
Market value of shares issued as part of consideration | $ 71,356 | ||||
NXT Bancorporation, Inc | |||||
Business Acquisition [Line Items] | |||||
Percentage of voting interests acquired | 100% | ||||
Stock consideration per share (shares per share) | 67.6783 | ||||
Cash consideration per share (in dollars per share) | $ 400 | ||||
Stock consideration (number of shares) | 1,799,016 | ||||
Cash consideration | $ 10,633 | ||||
Share price (in dollars per share) | $ 16.27 | ||||
Total consideration | $ 39,903 | ||||
Goodwill | 5,702 | ||||
Total NXT acquisition-related expenses | $ 1,416 | ||||
Market value of shares issued as part of consideration | $ 29,270 |
ACQUISITIONS - Acquisition-rela
ACQUISITIONS - Acquisition-related expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||
Furniture and equipment | $ 2,790 | $ 2,476 | $ 2,676 |
Marketing and customer relations | 5,043 | 3,803 | 3,376 |
Total noninterest expense | 130,964 | 105,107 | $ 91,246 |
Town and Country | |||
Business Acquisition [Line Items] | |||
PROVISION FOR CREDIT LOSSES | 5,924 | 0 | |
Salaries | 3,584 | 0 | |
Furniture and equipment | 39 | 0 | |
Data processing | 2,031 | 304 | |
Marketing and customer relations | 24 | 0 | |
Loan collection and servicing | 125 | 0 | |
Legal fees and other noninterest expense | 1,964 | 788 | |
Total noninterest expense | 7,767 | 1,092 | |
Total Town and Country acquisition-related expenses | 13,691 | $ 1,092 | |
NXT Bancorporation, Inc | |||
Business Acquisition [Line Items] | |||
Salaries | 65 | ||
Furniture and equipment | 18 | ||
Data processing | 355 | ||
Marketing and customer relations | 12 | ||
Loan collection and servicing | 11 | ||
Legal fees and other noninterest expense | 955 | ||
Total Town and Country acquisition-related expenses | $ 1,416 |
ACQUISITIONS - Assets Acquired
ACQUISITIONS - Assets Acquired and Liabilities (Details) - USD ($) $ in Thousands | Feb. 01, 2023 | Oct. 01, 2021 | Dec. 31, 2023 | Dec. 31, 2022 |
Consideration paid: | ||||
Goodwill | $ 59,820 | $ 29,322 | ||
Town and Country | ||||
Assets acquired: | ||||
Cash and cash equivalents | $ 23,542 | |||
Interest-bearing time deposits with banks | 249 | |||
Debt securities | 167,869 | |||
Equity securities | 301 | |||
Restricted stock | 2,822 | |||
Loans held for sale | 1,612 | |||
Loans, before allowance for credit losses | 635,376 | |||
Allowance for credit losses | (1,247) | |||
Loans, net of allowance for credit losses | 634,129 | |||
Bank owned life insurance | 15,782 | |||
Bank premises and equipment | 14,828 | |||
Foreclosed assets | 271 | |||
Intangible assets | 22,282 | |||
Mortgage servicing rights | 10,469 | |||
Investments in unconsolidated subsidiaries | 449 | |||
Accrued interest receivable | 3,113 | |||
Other assets | 8,940 | |||
Total assets acquired | 906,658 | |||
Liabilities assumed: | ||||
Deposits | 720,417 | |||
FHLB advances | 86,439 | |||
Junior subordinated debentures | 14,949 | |||
Other liabilities | 5,999 | |||
Total liabilities assumed | 827,804 | |||
Net assets acquired | 78,854 | |||
Consideration paid: | ||||
Cash | 37,996 | |||
Common stock | 71,356 | |||
Total consideration paid | 109,352 | |||
Goodwill | $ 30,498 | |||
NXT Bancorporation, Inc | ||||
Assets acquired: | ||||
Cash and cash equivalents | $ 5,862 | |||
Interest-bearing time deposits with banks | 739 | |||
Equity securities | 43 | |||
Restricted stock | 796 | |||
Loans | 194,576 | |||
Bank owned life insurance | 7,352 | |||
Bank premises and equipment | 3,667 | |||
Intangible assets | 199 | |||
Mortgage servicing rights | 370 | |||
Accrued interest receivable | 886 | |||
Other assets | 1,340 | |||
Total assets acquired | 234,125 | |||
Liabilities assumed: | ||||
Deposits | 181,586 | |||
Securities sold under agreements to repurchase | 4,080 | |||
FHLB advances | 12,625 | |||
Other liabilities | 1,633 | |||
Total liabilities assumed | 199,924 | |||
Net assets acquired | 34,201 | |||
Consideration paid: | ||||
Cash | 10,633 | |||
Common stock | 29,270 | |||
Total consideration paid | 39,903 | |||
Goodwill | 5,702 | |||
Debt securities | 18,295 | |||
Fair Value | 194,576 | |||
Gross contractual amounts receivable | 196,104 | |||
Estimate of contractual cash flows not expected to be collected | $ 1,045 |
ACQUISITIONS - PCD loans and su
ACQUISITIONS - PCD loans and subsequent changes (Details) - Town and Country - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 01, 2023 | Dec. 31, 2023 | |
Business Acquisition [Line Items] | ||
Unpaid principal balance | $ 89,822 | |
Allowance for credit losses at acquisition | (1,247) | |
Non-credit discount | (2,218) | |
Purchase price | $ 86,357 | |
Subsequent adjustment to allowance for credit losses on loans | $ 5,200 | |
Subsequent adjustment to allowance for credit losses on unfunded commitments | $ 700 |
ACQUISITIONS - Schedule of pro
ACQUISITIONS - Schedule of pro forma (Details) - Town and Country - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||
Total revenues (net interest income and noninterest income) | $ 230,171 | $ 226,229 |
Net income | $ 66,056 | $ 68,417 |
Earnings per share - basic (in dollars per share) | $ 2.07 | $ 2.12 |
Earnings per share - diluted (in dollars per share) | $ 2.06 | $ 2.12 |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) $ in Thousands | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||
Mar. 06, 2024 USD ($) | Dec. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
SECURITIES | ||||||
Number of securities in an unrealized loss position for a period of twelve months or more | security | 665 | 665 | ||||
Number of securities in an unrealized loss position for a period of less than twelve months | security | 116 | 116 | ||||
Allowance for credit losses | $ 0 | $ 0 | ||||
Debt securities, available-for-sale, accrued interest | 6,000 | 6,000 | ||||
Proceeds from sales of securities available-for-sale | 185,280 | $ 0 | $ 0 | |||
Impairments of downward adjustments | 200 | |||||
Adjustment to carrying value of equity securities with no readily determinable fair value | 200 | |||||
Upward adjustment on equity securities with no readily determinable fair value | 0 | $ 0 | 0 | 0 | ||
Proceeds from sale of equity securities | 0 | 0 | $ 0 | 0 | ||
Subsequent Event | ||||||
SECURITIES | ||||||
Proceeds from sale of equity securities | $ 66,800 | |||||
Equity Securities, FV-NI, Realized Loss | $ 3,400 | |||||
Municipal | ||||||
SECURITIES | ||||||
Percentage of securities with general obligation issue | 79% | |||||
Allowance for credit losses | 0 | $ 0 | ||||
Corporate | ||||||
SECURITIES | ||||||
Allowance for credit losses | 0 | 0 | ||||
Assets Pledged | ||||||
SECURITIES | ||||||
Carrying value of securities pledged to secure public and trust deposits | $ 419,400 | $ 332,600 | $ 419,400 | $ 332,600 |
SECURITIES - Amortized cost and
SECURITIES - Amortized cost and Fair values of securities with gross unrealized gains and losses (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Available-for-sale: | |||
Amortized Cost | $ 831,624 | $ 934,456 | |
Gross Unrealized Gains | 99 | 106 | |
Gross Unrealized Losses | (72,262) | (91,038) | |
Allowance for Credit Losses | 0 | ||
Fair Value | 759,461 | 843,524 | |
Held-to-maturity | |||
Amortized Cost | 521,439 | 541,600 | $ 114,850 |
Gross Unrealized Gains | 394 | 195 | |
Gross Unrealized Losses | (55,337) | (62,994) | |
Fair Value | 466,496 | 478,801 | 104,131 |
Allowance for Credit Losses | 0 | ||
U.S. Treasury | |||
Available-for-sale: | |||
Amortized Cost | 159,715 | 169,860 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (11,093) | (15,345) | |
Allowance for Credit Losses | 0 | ||
Fair Value | 148,622 | 154,515 | |
U.S. government agency | |||
Available-for-sale: | |||
Amortized Cost | 55,359 | 59,291 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (3,262) | (4,134) | |
Allowance for Credit Losses | 0 | ||
Fair Value | 52,097 | 55,157 | |
Held-to-maturity | |||
Amortized Cost | 88,448 | 88,424 | 78,841 |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (8,292) | (9,728) | |
Fair Value | 80,156 | 78,696 | 71,048 |
Allowance for Credit Losses | 0 | ||
Municipal | |||
Available-for-sale: | |||
Amortized Cost | 229,030 | 275,972 | |
Gross Unrealized Gains | 26 | 46 | |
Gross Unrealized Losses | (23,499) | (32,189) | |
Allowance for Credit Losses | 0 | ||
Fair Value | 205,557 | 243,829 | |
Held-to-maturity | |||
Amortized Cost | 38,442 | 42,167 | |
Gross Unrealized Gains | 394 | 195 | |
Gross Unrealized Losses | (163) | (314) | |
Fair Value | 38,673 | 42,048 | |
Allowance for Credit Losses | 0 | ||
Agency residential | |||
Available-for-sale: | |||
Amortized Cost | 188,641 | 213,676 | |
Gross Unrealized Gains | 61 | 5 | |
Gross Unrealized Losses | (14,718) | (18,240) | |
Allowance for Credit Losses | 0 | ||
Fair Value | 173,984 | 195,441 | |
Held-to-maturity | |||
Amortized Cost | 95,828 | 102,728 | 8,175 |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (5,569) | (6,470) | |
Fair Value | 90,259 | 96,258 | 7,651 |
Allowance for Credit Losses | 0 | ||
Agency commercial | |||
Available-for-sale: | |||
Amortized Cost | 141,214 | 150,060 | |
Gross Unrealized Gains | 3 | 0 | |
Gross Unrealized Losses | (14,205) | (17,172) | |
Allowance for Credit Losses | 0 | ||
Fair Value | 127,012 | 132,888 | |
Held-to-maturity | |||
Amortized Cost | 298,721 | 308,281 | 27,834 |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (41,313) | (46,482) | |
Fair Value | 257,408 | 261,799 | $ 25,432 |
Allowance for Credit Losses | 0 | ||
Corporate | |||
Available-for-sale: | |||
Amortized Cost | 57,665 | 65,597 | |
Gross Unrealized Gains | 9 | 55 | |
Gross Unrealized Losses | (5,485) | (3,958) | |
Allowance for Credit Losses | 0 | ||
Fair Value | $ 52,189 | $ 61,694 |
SECURITIES - Amortized cost a_2
SECURITIES - Amortized cost and Fair values of held-to-maturity securities transferred from available-for-sale securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Available-for-sale: | |||
Amortized Cost | $ 521,439 | $ 541,600 | $ 114,850 |
Debt securities held-to-maturity | 466,496 | 478,801 | 104,131 |
U.S. government agency | |||
Available-for-sale: | |||
Amortized Cost | 88,448 | 88,424 | 78,841 |
Debt securities held-to-maturity | 80,156 | 78,696 | 71,048 |
Agency residential | |||
Available-for-sale: | |||
Amortized Cost | 95,828 | 102,728 | 8,175 |
Debt securities held-to-maturity | 90,259 | 96,258 | 7,651 |
Agency commercial | |||
Available-for-sale: | |||
Amortized Cost | 298,721 | 308,281 | 27,834 |
Debt securities held-to-maturity | $ 257,408 | $ 261,799 | $ 25,432 |
SECURITIES - Amortized cost a_3
SECURITIES - Amortized cost and Fair values of securities with maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Amortized Cost | |||
Due in 1 year or less | $ 46,534 | ||
Due after 1 year through 5 years | 208,581 | ||
Due after 5 years through 10 years | 199,695 | ||
Due after 10 years | 46,959 | ||
Total | 831,624 | ||
Fair Value | |||
Due in 1 year or less | 45,564 | ||
Due after 1 year through 5 years | 196,431 | ||
Due after 5 years through 10 years | 174,573 | ||
Due after 10 years | 41,897 | ||
Fair Value | 759,461 | $ 843,524 | |
Amortized Cost | |||
Due in 1 year or less | 2,138 | ||
Due after 1 year through 5 years | 35,590 | ||
Due after 5 years through 10 years | 83,488 | ||
Due after 10 years | 5,674 | ||
Total | 521,439 | ||
Fair Value | |||
Due in 1 year or less | 2,141 | ||
Due after 1 year through 5 years | 34,269 | ||
Due after 5 years through 10 years | 77,094 | ||
Due after 10 years | 5,325 | ||
Fair Value | 466,496 | 478,801 | $ 104,131 |
Agency residential | |||
Amortized Cost | |||
Total | 188,641 | ||
Fair Value | |||
Fair Value | 173,984 | 195,441 | |
Amortized Cost | |||
Total | 95,828 | ||
Fair Value | |||
Fair Value | 90,259 | 96,258 | 7,651 |
Agency commercial | |||
Amortized Cost | |||
Total | 141,214 | ||
Fair Value | |||
Fair Value | 127,012 | 132,888 | |
Amortized Cost | |||
Total | 298,721 | ||
Fair Value | |||
Fair Value | $ 257,408 | $ 261,799 | $ 25,432 |
SECURITIES - Investments in a C
SECURITIES - Investments in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Unrealized Loss | ||
Less than 12 Months | $ (631) | $ (37,977) |
12 Months or More | (71,631) | (53,061) |
Total | (72,262) | (91,038) |
Fair Value | ||
Less than 12 Months | 21,648 | 531,226 |
12 Months or More | 720,834 | 299,159 |
Total | 742,482 | 830,385 |
Unrealized Loss | ||
Less than 12 Months | (22,823) | |
12 Months or More | (40,171) | |
Total | (62,994) | |
Fair Value | ||
Less than 12 Months | 220,934 | |
12 Months or More | 239,252 | |
Total | 460,186 | |
Unrealized Loss | ||
Less than 12 Months | (60,800) | |
12 Months or More | (93,232) | |
Total | (154,032) | |
Fair Value | ||
Less than 12 Months | 752,160 | |
12 Months or More | 538,411 | |
Total | 1,290,571 | |
U.S. Treasury | ||
Unrealized Loss | ||
Less than 12 Months | 0 | (8,401) |
12 Months or More | (11,093) | (6,944) |
Total | (11,093) | (15,345) |
Fair Value | ||
Less than 12 Months | 0 | 92,445 |
12 Months or More | 148,622 | 62,070 |
Total | 148,622 | 154,515 |
U.S. government agency | ||
Unrealized Loss | ||
Less than 12 Months | (2) | (2,980) |
12 Months or More | (3,260) | (1,154) |
Total | (3,262) | (4,134) |
Fair Value | ||
Less than 12 Months | 168 | 47,370 |
12 Months or More | 51,910 | 7,787 |
Total | 52,078 | 55,157 |
Unrealized Loss | ||
Less than 12 Months | (1,754) | |
12 Months or More | (7,974) | |
Total | (9,728) | |
Fair Value | ||
Less than 12 Months | 15,751 | |
12 Months or More | 62,945 | |
Total | 78,696 | |
Municipal | ||
Unrealized Loss | ||
Less than 12 Months | (26) | (10,906) |
12 Months or More | (23,473) | (21,283) |
Total | (23,499) | (32,189) |
Fair Value | ||
Less than 12 Months | 4,749 | 149,261 |
12 Months or More | 194,287 | 87,794 |
Total | 199,036 | 237,055 |
Unrealized Loss | ||
Less than 12 Months | (314) | |
12 Months or More | 0 | |
Total | (314) | |
Fair Value | ||
Less than 12 Months | 23,433 | |
12 Months or More | 0 | |
Total | 23,433 | |
Agency residential | ||
Unrealized Loss | ||
Less than 12 Months | (163) | (8,332) |
12 Months or More | (14,555) | (9,908) |
Total | (14,718) | (18,240) |
Fair Value | ||
Less than 12 Months | 9,354 | 127,288 |
12 Months or More | 156,785 | 65,692 |
Total | 166,139 | 192,980 |
Unrealized Loss | ||
Less than 12 Months | (4,039) | |
12 Months or More | (2,431) | |
Total | (6,470) | |
Fair Value | ||
Less than 12 Months | 78,452 | |
12 Months or More | 17,806 | |
Total | 96,258 | |
Agency commercial | ||
Unrealized Loss | ||
Less than 12 Months | (26) | (4,764) |
12 Months or More | (14,179) | (12,408) |
Total | (14,205) | (17,172) |
Fair Value | ||
Less than 12 Months | 3,016 | 62,672 |
12 Months or More | 123,404 | 70,216 |
Total | 126,420 | 132,888 |
Unrealized Loss | ||
Less than 12 Months | (16,716) | |
12 Months or More | (29,766) | |
Total | (46,482) | |
Fair Value | ||
Less than 12 Months | 103,298 | |
12 Months or More | 158,501 | |
Total | 261,799 | |
Corporate | ||
Unrealized Loss | ||
Less than 12 Months | (414) | (2,594) |
12 Months or More | (5,071) | (1,364) |
Total | (5,485) | (3,958) |
Fair Value | ||
Less than 12 Months | 4,361 | 52,190 |
12 Months or More | 45,826 | 5,600 |
Total | $ 50,187 | $ 57,790 |
SECURITIES - Sale of debt secur
SECURITIES - Sale of debt securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales | $ 185,280 | $ 0 | $ 0 |
Gross realized gains | 0 | 0 | 0 |
Gross realized losses | $ (1,820) | $ 0 | $ 0 |
SECURITIES - Equity securities
SECURITIES - Equity securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Readily Determinable Fair Value | ||
Initial cost | $ 3,143 | $ 3,142 |
Cumulative net unrealized gains (losses) | 217 | (113) |
Carrying value | 3,360 | 3,029 |
No Readily Determinable Fair Value | ||
Initial cost | 2,840 | 2,142 |
Cumulative net unrealized gains (losses) | (335) | (165) |
Carrying value | $ 2,505 | $ 1,977 |
SECURITIES - Sale and Gain (los
SECURITIES - Sale and Gain (loss) on securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net unrealized gains (losses) on equity securities: | |||
Readily determinable fair value | $ 330 | $ (414) | $ 107 |
No readily determinable fair value | (170) | 0 | 0 |
Unrealized gains (losses) on equity securities | $ 160 | $ (414) | $ 107 |
LOANS AND RELATED ALLOWANCE F_3
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Categories of loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | |||||
Loans, before allowance for credit losses | $ 3,404,417 | $ 2,620,253 | |||
Allowance for credit losses | (40,048) | $ (25,333) | (25,333) | $ (23,936) | $ (31,838) |
Loans, net of allowance for credit losses | 3,364,369 | 2,594,920 | |||
Commercial and industrial | |||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | |||||
Loans, before allowance for credit losses | 427,800 | 266,757 | |||
Allowance for credit losses | (4,980) | (3,279) | (3,279) | (2,440) | (3,929) |
Commercial real estate - owner occupied | |||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | |||||
Loans, before allowance for credit losses | 295,842 | 218,503 | |||
Allowance for credit losses | (2,272) | (1,193) | (1,193) | (1,840) | (3,141) |
Commercial real estate - non-owner occupied | |||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | |||||
Loans, before allowance for credit losses | 880,681 | 713,202 | |||
Allowance for credit losses | (7,714) | (6,721) | (6,721) | (8,145) | (11,251) |
Construction and land development | |||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | |||||
Loans, before allowance for credit losses | 363,983 | 360,824 | |||
Allowance for credit losses | (5,998) | (4,223) | (4,223) | (4,914) | (4,232) |
Multi-family | |||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | |||||
Loans, before allowance for credit losses | 417,923 | 287,865 | |||
Allowance for credit losses | (3,837) | (1,472) | (1,472) | (1,263) | (1,957) |
One-to-four family residential | |||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | |||||
Loans, before allowance for credit losses | 491,508 | 338,253 | |||
Allowance for credit losses | (5,204) | (1,759) | (1,759) | (1,311) | (1,801) |
Agricultural and farmland | |||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | |||||
Loans, before allowance for credit losses | 287,294 | 237,746 | |||
Allowance for credit losses | (975) | (796) | (796) | (845) | (793) |
Municipal, consumer, and other | |||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | |||||
Loans, before allowance for credit losses | 239,386 | 197,103 | |||
Allowance for credit losses | $ (9,068) | $ (5,890) | $ (5,890) | $ (3,178) | $ (4,734) |
LOANS AND RELATED ALLOWANCE F_4
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Activity in Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 01, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 25,333 | $ 25,333 | $ 23,936 | $ 31,838 |
Provision for credit losses | 6,665 | (706) | (8,077) | |
PCD allowance established in acquisition | 1,247 | |||
Charge-offs | (1,359) | (684) | (1,414) | |
Recoveries | 1,179 | 2,787 | 1,589 | |
Ending balance | 25,333 | 40,048 | 25,333 | 23,936 |
Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 6,983 | 6,983 | ||
PCD allowance established in acquisition | 200 | |||
Ending balance | 6,983 | 6,983 | ||
Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 3,279 | 3,279 | 2,440 | 3,929 |
Provision for credit losses | 2,823 | 88 | (1,474) | |
PCD allowance established in acquisition | 69 | |||
Charge-offs | (428) | (23) | (668) | |
Recoveries | 59 | 774 | 653 | |
Ending balance | 3,279 | 4,980 | 3,279 | 2,440 |
Commercial and industrial | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | (822) | (822) | ||
Ending balance | (822) | (822) | ||
Commercial real estate - owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 1,193 | 1,193 | 1,840 | 3,141 |
Provision for credit losses | 352 | (1,653) | (1,280) | |
PCD allowance established in acquisition | 127 | |||
Charge-offs | (5) | (25) | (30) | |
Recoveries | 18 | 1,031 | 9 | |
Ending balance | 1,193 | 2,272 | 1,193 | 1,840 |
Commercial real estate - owner occupied | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 587 | 587 | ||
Ending balance | 587 | 587 | ||
Commercial real estate - non-owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 6,721 | 6,721 | 8,145 | 11,251 |
Provision for credit losses | 187 | (1,707) | (3,130) | |
PCD allowance established in acquisition | 239 | |||
Charge-offs | (202) | 0 | 0 | |
Recoveries | 268 | 283 | 24 | |
Ending balance | 6,721 | 7,714 | 6,721 | 8,145 |
Commercial real estate - non-owner occupied | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 501 | 501 | ||
Ending balance | 501 | 501 | ||
Construction and land development | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 4,223 | 4,223 | 4,914 | 4,232 |
Provision for credit losses | (487) | (692) | 340 | |
PCD allowance established in acquisition | 240 | |||
Charge-offs | 0 | 0 | 0 | |
Recoveries | 53 | 1 | 342 | |
Ending balance | 4,223 | 5,998 | 4,223 | 4,914 |
Construction and land development | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 1,969 | 1,969 | ||
Ending balance | 1,969 | 1,969 | ||
Multi-family | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 1,472 | 1,472 | 1,263 | 1,957 |
Provision for credit losses | 1,931 | 209 | (694) | |
PCD allowance established in acquisition | 68 | |||
Charge-offs | 0 | 0 | 0 | |
Recoveries | 281 | 0 | 0 | |
Ending balance | 1,472 | 3,837 | 1,472 | 1,263 |
Multi-family | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 85 | 85 | ||
Ending balance | 85 | 85 | ||
One-to-four family residential | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 1,759 | 1,759 | 1,311 | 1,801 |
Provision for credit losses | 2,004 | 146 | (472) | |
PCD allowance established in acquisition | 492 | |||
Charge-offs | (34) | (67) | (267) | |
Recoveries | 186 | 369 | 249 | |
Ending balance | 1,759 | 5,204 | 1,759 | 1,311 |
One-to-four family residential | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 797 | 797 | ||
Ending balance | 797 | 797 | ||
Agricultural and farmland | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 796 | 796 | 845 | 793 |
Provision for credit losses | (1,399) | (49) | 52 | |
PCD allowance established in acquisition | 5 | |||
Charge-offs | 0 | 0 | 0 | |
Recoveries | 6 | 0 | 0 | |
Ending balance | 796 | 975 | 796 | 845 |
Agricultural and farmland | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 1,567 | 1,567 | ||
Ending balance | 1,567 | 1,567 | ||
Municipal, consumer, and other | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 5,890 | 5,890 | 3,178 | 4,734 |
Provision for credit losses | 1,254 | 2,952 | (1,419) | |
PCD allowance established in acquisition | 7 | |||
Charge-offs | (690) | (569) | (449) | |
Recoveries | 308 | 329 | 312 | |
Ending balance | 5,890 | 9,068 | 5,890 | $ 3,178 |
Municipal, consumer, and other | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 2,299 | $ 2,299 | ||
Ending balance | $ 2,299 | $ 2,299 |
LOANS AND RELATED ALLOWANCE F_5
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Gross Chargeoffs by Origination Year (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Term Loans by Origination Year | |||
Gross write-offs, 2023 | $ 309 | ||
Gross write-offs, 2022 | 105 | ||
Gross write-offs 2021 | 13 | ||
Gross write-offs, 2020 | 17 | ||
Gross write-offs, 2019 | 42 | ||
Gross write-offs, prior | 65 | ||
Revolving Loans | 808 | ||
Revolving Loans Converted to Term | 0 | ||
Total | 1,359 | $ 684 | $ 1,414 |
Commercial and industrial | |||
Term Loans by Origination Year | |||
Gross write-offs, 2023 | 0 | ||
Gross write-offs, 2022 | 0 | ||
Gross write-offs 2021 | 0 | ||
Gross write-offs, 2020 | 0 | ||
Gross write-offs, 2019 | 0 | ||
Gross write-offs, prior | 0 | ||
Revolving Loans | 428 | ||
Revolving Loans Converted to Term | 0 | ||
Total | 428 | 23 | 668 |
Commercial real estate - owner occupied | |||
Term Loans by Origination Year | |||
Gross write-offs, 2023 | 0 | ||
Gross write-offs, 2022 | 5 | ||
Gross write-offs 2021 | 0 | ||
Gross write-offs, 2020 | 0 | ||
Gross write-offs, 2019 | 0 | ||
Gross write-offs, prior | 0 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total | 5 | 25 | 30 |
Commercial real estate - non-owner occupied | |||
Term Loans by Origination Year | |||
Gross write-offs, 2023 | 0 | ||
Gross write-offs, 2022 | 0 | ||
Gross write-offs 2021 | 0 | ||
Gross write-offs, 2020 | 0 | ||
Gross write-offs, 2019 | 31 | ||
Gross write-offs, prior | 0 | ||
Revolving Loans | 171 | ||
Revolving Loans Converted to Term | 0 | ||
Total | 202 | 0 | 0 |
Construction and land development | |||
Term Loans by Origination Year | |||
Gross write-offs, 2023 | 0 | ||
Gross write-offs, 2022 | 0 | ||
Gross write-offs 2021 | 0 | ||
Gross write-offs, 2020 | 0 | ||
Gross write-offs, 2019 | 0 | ||
Gross write-offs, prior | 0 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total | 0 | 0 | 0 |
Multi-family | |||
Term Loans by Origination Year | |||
Gross write-offs, 2023 | 0 | ||
Gross write-offs, 2022 | 0 | ||
Gross write-offs 2021 | 0 | ||
Gross write-offs, 2020 | 0 | ||
Gross write-offs, 2019 | 0 | ||
Gross write-offs, prior | 0 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total | 0 | 0 | 0 |
One-to-four family residential | |||
Term Loans by Origination Year | |||
Gross write-offs, 2023 | 0 | ||
Gross write-offs, 2022 | 0 | ||
Gross write-offs 2021 | 0 | ||
Gross write-offs, 2020 | 0 | ||
Gross write-offs, 2019 | 1 | ||
Gross write-offs, prior | 33 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total | 34 | 67 | 267 |
Agricultural and farmland | |||
Term Loans by Origination Year | |||
Gross write-offs, 2023 | 0 | ||
Gross write-offs, 2022 | 0 | ||
Gross write-offs 2021 | 0 | ||
Gross write-offs, 2020 | 0 | ||
Gross write-offs, 2019 | 0 | ||
Gross write-offs, prior | 0 | ||
Revolving Loans | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total | 0 | 0 | 0 |
Municipal, consumer, and other | |||
Term Loans by Origination Year | |||
Gross write-offs, 2023 | 309 | ||
Gross write-offs, 2022 | 100 | ||
Gross write-offs 2021 | 13 | ||
Gross write-offs, 2020 | 17 | ||
Gross write-offs, 2019 | 10 | ||
Gross write-offs, prior | 32 | ||
Revolving Loans | 209 | ||
Revolving Loans Converted to Term | 0 | ||
Total | $ 690 | $ 569 | $ 449 |
LOANS AND RELATED ALLOWANCE F_6
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Recorded investments in loans and the allowance for loan losses (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Loan balances: | |||||
Collectively evaluated for impairment | $ 3,367,513 | $ 2,527,562 | |||
Individually evaluated for impairment | 36,904 | 71,715 | |||
Total | 3,404,417 | 2,620,253 | |||
Allowance for loan losses: | |||||
Collectively evaluated for impairment | 35,829 | 18,984 | |||
Individually evaluated for impairment | 4,219 | 6,320 | |||
Allowance for Credit Losses | 40,048 | $ 25,333 | 25,333 | $ 23,936 | $ 31,838 |
Acquired with deteriorated credit quality | |||||
Loan balances: | |||||
Total | 20,976 | ||||
Allowance for loan losses: | |||||
Allowance for Credit Losses | 29 | ||||
Commercial and industrial | |||||
Loan balances: | |||||
Collectively evaluated for impairment | 427,528 | 261,833 | |||
Individually evaluated for impairment | 272 | 4,818 | |||
Total | 427,800 | 266,757 | |||
Allowance for loan losses: | |||||
Collectively evaluated for impairment | 4,960 | 3,121 | |||
Individually evaluated for impairment | 20 | 158 | |||
Allowance for Credit Losses | 4,980 | 3,279 | 3,279 | 2,440 | 3,929 |
Commercial and industrial | Acquired with deteriorated credit quality | |||||
Loan balances: | |||||
Total | 106 | ||||
Allowance for loan losses: | |||||
Allowance for Credit Losses | 0 | ||||
Commercial real estate - owner occupied | |||||
Loan balances: | |||||
Collectively evaluated for impairment | 295,672 | 203,558 | |||
Individually evaluated for impairment | 170 | 11,366 | |||
Total | 295,842 | 218,503 | |||
Allowance for loan losses: | |||||
Collectively evaluated for impairment | 2,272 | 1,008 | |||
Individually evaluated for impairment | 0 | 168 | |||
Allowance for Credit Losses | 2,272 | 1,193 | 1,193 | 1,840 | 3,141 |
Commercial real estate - owner occupied | Acquired with deteriorated credit quality | |||||
Loan balances: | |||||
Total | 3,579 | ||||
Allowance for loan losses: | |||||
Allowance for Credit Losses | 17 | ||||
Commercial real estate - non-owner occupied | |||||
Loan balances: | |||||
Collectively evaluated for impairment | 865,394 | 671,663 | |||
Individually evaluated for impairment | 15,287 | 30,509 | |||
Total | 880,681 | 713,202 | |||
Allowance for loan losses: | |||||
Collectively evaluated for impairment | 6,693 | 4,332 | |||
Individually evaluated for impairment | 1,021 | 2,388 | |||
Allowance for Credit Losses | 7,714 | 6,721 | 6,721 | 8,145 | 11,251 |
Commercial real estate - non-owner occupied | Acquired with deteriorated credit quality | |||||
Loan balances: | |||||
Total | 11,030 | ||||
Allowance for loan losses: | |||||
Allowance for Credit Losses | 1 | ||||
Construction and land development | |||||
Loan balances: | |||||
Collectively evaluated for impairment | 363,767 | 359,892 | |||
Individually evaluated for impairment | 216 | 82 | |||
Total | 363,983 | 360,824 | |||
Allowance for loan losses: | |||||
Collectively evaluated for impairment | 5,998 | 4,221 | |||
Individually evaluated for impairment | 0 | 0 | |||
Allowance for Credit Losses | 5,998 | 4,223 | 4,223 | 4,914 | 4,232 |
Construction and land development | Acquired with deteriorated credit quality | |||||
Loan balances: | |||||
Total | 850 | ||||
Allowance for loan losses: | |||||
Allowance for Credit Losses | 2 | ||||
Multi-family | |||||
Loan balances: | |||||
Collectively evaluated for impairment | 417,608 | 287,298 | |||
Individually evaluated for impairment | 315 | 0 | |||
Total | 417,923 | 287,865 | |||
Allowance for loan losses: | |||||
Collectively evaluated for impairment | 3,837 | 1,470 | |||
Individually evaluated for impairment | 0 | 0 | |||
Allowance for Credit Losses | 3,837 | 1,472 | 1,472 | 1,263 | 1,957 |
Multi-family | Acquired with deteriorated credit quality | |||||
Loan balances: | |||||
Total | 567 | ||||
Allowance for loan losses: | |||||
Allowance for Credit Losses | 2 | ||||
One-to-four family residential | |||||
Loan balances: | |||||
Collectively evaluated for impairment | 486,049 | 325,621 | |||
Individually evaluated for impairment | 5,459 | 8,399 | |||
Total | 491,508 | 338,253 | |||
Allowance for loan losses: | |||||
Collectively evaluated for impairment | 4,957 | 1,709 | |||
Individually evaluated for impairment | 247 | 44 | |||
Allowance for Credit Losses | 5,204 | 1,759 | 1,759 | 1,311 | 1,801 |
One-to-four family residential | Acquired with deteriorated credit quality | |||||
Loan balances: | |||||
Total | 4,233 | ||||
Allowance for loan losses: | |||||
Allowance for Credit Losses | 6 | ||||
Agricultural and farmland | |||||
Loan balances: | |||||
Collectively evaluated for impairment | 287,150 | 233,118 | |||
Individually evaluated for impairment | 144 | 4,033 | |||
Total | 287,294 | 237,746 | |||
Allowance for loan losses: | |||||
Collectively evaluated for impairment | 975 | 796 | |||
Individually evaluated for impairment | 0 | 0 | |||
Allowance for Credit Losses | 975 | 796 | 796 | 845 | 793 |
Agricultural and farmland | Acquired with deteriorated credit quality | |||||
Loan balances: | |||||
Total | 595 | ||||
Allowance for loan losses: | |||||
Allowance for Credit Losses | 0 | ||||
Municipal, consumer, and other | |||||
Loan balances: | |||||
Collectively evaluated for impairment | 224,345 | 184,579 | |||
Individually evaluated for impairment | 15,041 | 12,508 | |||
Total | 239,386 | 197,103 | |||
Allowance for loan losses: | |||||
Collectively evaluated for impairment | 6,137 | 2,327 | |||
Individually evaluated for impairment | 2,931 | 3,562 | |||
Allowance for Credit Losses | $ 9,068 | $ 5,890 | 5,890 | $ 3,178 | $ 4,734 |
Municipal, consumer, and other | Acquired with deteriorated credit quality | |||||
Loan balances: | |||||
Total | 16 | ||||
Allowance for loan losses: | |||||
Allowance for Credit Losses | $ 1 |
LOANS AND RELATED ALLOWANCE F_7
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Amortized cost of collateralized loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | $ 3,404,417 | $ 2,620,253 | |||
Acquired with deteriorated credit quality | 18,400 | ||||
Allowance for Credit Losses | 40,048 | $ 25,333 | 25,333 | $ 23,936 | $ 31,838 |
Real Estate | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 36,569 | ||||
Vehicles | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 76 | ||||
Other | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 259 | ||||
Collateral-dependent loans | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 36,904 | ||||
Allowance for Credit Losses | 4,219 | ||||
Commercial and industrial | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 427,800 | 266,757 | |||
Allowance for Credit Losses | 4,980 | 3,279 | 3,279 | 2,440 | 3,929 |
Commercial and industrial | Real Estate | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 0 | ||||
Commercial and industrial | Vehicles | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 37 | ||||
Commercial and industrial | Other | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 235 | ||||
Commercial and industrial | Collateral-dependent loans | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 272 | ||||
Allowance for Credit Losses | 20 | ||||
Commercial real estate - owner occupied | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 295,842 | 218,503 | |||
Allowance for Credit Losses | 2,272 | 1,193 | 1,193 | 1,840 | 3,141 |
Commercial real estate - owner occupied | Real Estate | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 170 | ||||
Commercial real estate - owner occupied | Vehicles | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 0 | ||||
Commercial real estate - owner occupied | Other | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 0 | ||||
Commercial real estate - owner occupied | Collateral-dependent loans | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 170 | ||||
Allowance for Credit Losses | 0 | ||||
Commercial real estate - non-owner occupied | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 880,681 | 713,202 | |||
Allowance for Credit Losses | 7,714 | 6,721 | 6,721 | 8,145 | 11,251 |
Commercial real estate - non-owner occupied | Real Estate | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 15,287 | ||||
Commercial real estate - non-owner occupied | Vehicles | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 0 | ||||
Commercial real estate - non-owner occupied | Other | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 0 | ||||
Commercial real estate - non-owner occupied | Collateral-dependent loans | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 15,287 | ||||
Allowance for Credit Losses | 1,021 | ||||
Construction and land development | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 363,983 | 360,824 | |||
Allowance for Credit Losses | 5,998 | 4,223 | 4,223 | 4,914 | 4,232 |
Construction and land development | Real Estate | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 216 | ||||
Construction and land development | Vehicles | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 0 | ||||
Construction and land development | Other | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 0 | ||||
Construction and land development | Collateral-dependent loans | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 216 | ||||
Allowance for Credit Losses | 0 | ||||
Multi-family | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 417,923 | 287,865 | |||
Allowance for Credit Losses | 3,837 | 1,472 | 1,472 | 1,263 | 1,957 |
Multi-family | Real Estate | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 315 | ||||
Multi-family | Vehicles | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 0 | ||||
Multi-family | Other | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 0 | ||||
Multi-family | Collateral-dependent loans | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 315 | ||||
Allowance for Credit Losses | 0 | ||||
One-to-four family residential | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 491,508 | 338,253 | |||
Allowance for Credit Losses | 5,204 | 1,759 | 1,759 | 1,311 | 1,801 |
One-to-four family residential | Real Estate | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 5,459 | ||||
One-to-four family residential | Vehicles | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 0 | ||||
One-to-four family residential | Other | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 0 | ||||
One-to-four family residential | Collateral-dependent loans | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 5,459 | ||||
Allowance for Credit Losses | 247 | ||||
Agricultural and farmland | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 287,294 | 237,746 | |||
Allowance for Credit Losses | 975 | 796 | 796 | 845 | 793 |
Agricultural and farmland | Real Estate | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 144 | ||||
Agricultural and farmland | Vehicles | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 0 | ||||
Agricultural and farmland | Other | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 0 | ||||
Agricultural and farmland | Collateral-dependent loans | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 144 | ||||
Allowance for Credit Losses | 0 | ||||
Municipal, consumer, and other | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 239,386 | 197,103 | |||
Allowance for Credit Losses | 9,068 | $ 5,890 | $ 5,890 | $ 3,178 | $ 4,734 |
Municipal, consumer, and other | Real Estate | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 14,978 | ||||
Municipal, consumer, and other | Vehicles | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 39 | ||||
Municipal, consumer, and other | Other | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 24 | ||||
Municipal, consumer, and other | Collateral-dependent loans | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Amortized Cost | 15,041 | ||||
Allowance for Credit Losses | $ 2,931 |
LOANS AND RELATED ALLOWANCE F_8
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Individually evaluated for impairment by category of loans PREADOPTION (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Unpaid Principal Balance | ||
With an allowance recorded: | $ 23,893 | |
With no related allowance: | 49,926 | |
Total loans individually evaluated for impairment: | 73,819 | |
Recorded Investment | ||
With an allowance recorded: | 23,780 | |
With no related allowance: | 47,935 | |
Total loans individually evaluated for impairment: | 71,715 | |
Related Allowance | 6,320 | |
Average Recorded Investment | ||
With an allowance recorded: | 18,760 | $ 32,445 |
With no related allowance: | 42,155 | 38,980 |
Total loans individually evaluated for impairment: | 60,915 | 71,425 |
Interest Income Recognized | ||
With an allowance recorded: | 1,073 | 1,323 |
With no related allowance: | 2,875 | 1,439 |
Total loans individually evaluated for impairment: | 3,948 | 2,762 |
Commercial and industrial | ||
Unpaid Principal Balance | ||
With an allowance recorded: | 268 | |
With no related allowance: | 4,564 | |
Total loans individually evaluated for impairment: | 4,832 | |
Recorded Investment | ||
With an allowance recorded: | 254 | |
With no related allowance: | 4,564 | |
Total loans individually evaluated for impairment: | 4,818 | |
Related Allowance | 158 | |
Average Recorded Investment | ||
With an allowance recorded: | 204 | 1,593 |
With no related allowance: | 9,568 | 7,125 |
Total loans individually evaluated for impairment: | 9,772 | 8,718 |
Interest Income Recognized | ||
With an allowance recorded: | 18 | 89 |
With no related allowance: | 453 | 330 |
Total loans individually evaluated for impairment: | 471 | 419 |
Commercial real estate - owner occupied | ||
Unpaid Principal Balance | ||
With an allowance recorded: | 635 | |
With no related allowance: | 10,912 | |
Total loans individually evaluated for impairment: | 11,547 | |
Recorded Investment | ||
With an allowance recorded: | 610 | |
With no related allowance: | 10,756 | |
Total loans individually evaluated for impairment: | 11,366 | |
Related Allowance | 168 | |
Average Recorded Investment | ||
With an allowance recorded: | 970 | 3,052 |
With no related allowance: | 8,619 | 7,771 |
Total loans individually evaluated for impairment: | 9,589 | 10,823 |
Interest Income Recognized | ||
With an allowance recorded: | 63 | 177 |
With no related allowance: | 525 | 344 |
Total loans individually evaluated for impairment: | 588 | 521 |
Commercial real estate - non-owner occupied | ||
Unpaid Principal Balance | ||
With an allowance recorded: | 14,269 | |
With no related allowance: | 16,327 | |
Total loans individually evaluated for impairment: | 30,596 | |
Recorded Investment | ||
With an allowance recorded: | 14,261 | |
With no related allowance: | 16,248 | |
Total loans individually evaluated for impairment: | 30,509 | |
Related Allowance | 2,388 | |
Average Recorded Investment | ||
With an allowance recorded: | 10,943 | 16,494 |
With no related allowance: | 12,636 | 10,339 |
Total loans individually evaluated for impairment: | 23,579 | 26,833 |
Interest Income Recognized | ||
With an allowance recorded: | 740 | 791 |
With no related allowance: | 1,278 | 432 |
Total loans individually evaluated for impairment: | 2,018 | 1,223 |
Construction and land development | ||
Unpaid Principal Balance | ||
With an allowance recorded: | 0 | |
With no related allowance: | 92 | |
Total loans individually evaluated for impairment: | 92 | |
Recorded Investment | ||
With an allowance recorded: | 0 | |
With no related allowance: | 82 | |
Total loans individually evaluated for impairment: | 82 | |
Related Allowance | 0 | |
Average Recorded Investment | ||
With an allowance recorded: | 0 | 554 |
With no related allowance: | 1,505 | 2,107 |
Total loans individually evaluated for impairment: | 1,505 | 2,661 |
Interest Income Recognized | ||
With an allowance recorded: | 0 | 27 |
With no related allowance: | 106 | 28 |
Total loans individually evaluated for impairment: | 106 | 55 |
Multi-family | ||
Unpaid Principal Balance | ||
With an allowance recorded: | 0 | |
With no related allowance: | 0 | |
Total loans individually evaluated for impairment: | 0 | |
Recorded Investment | ||
With an allowance recorded: | 0 | |
With no related allowance: | 0 | |
Total loans individually evaluated for impairment: | 0 | |
Related Allowance | 0 | |
Average Recorded Investment | ||
With an allowance recorded: | 0 | 0 |
With no related allowance: | 0 | 434 |
Total loans individually evaluated for impairment: | 0 | 434 |
Interest Income Recognized | ||
With an allowance recorded: | 0 | 0 |
With no related allowance: | 0 | 10 |
Total loans individually evaluated for impairment: | 0 | 10 |
One-to-four family residential | ||
Unpaid Principal Balance | ||
With an allowance recorded: | 569 | |
With no related allowance: | 9,181 | |
Total loans individually evaluated for impairment: | 9,750 | |
Recorded Investment | ||
With an allowance recorded: | 524 | |
With no related allowance: | 7,875 | |
Total loans individually evaluated for impairment: | 8,399 | |
Related Allowance | 44 | |
Average Recorded Investment | ||
With an allowance recorded: | 384 | 1,988 |
With no related allowance: | 6,238 | 6,248 |
Total loans individually evaluated for impairment: | 6,622 | 8,236 |
Interest Income Recognized | ||
With an allowance recorded: | 16 | 77 |
With no related allowance: | 352 | 192 |
Total loans individually evaluated for impairment: | 368 | 269 |
Agricultural and farmland | ||
Unpaid Principal Balance | ||
With an allowance recorded: | 0 | |
With no related allowance: | 4,440 | |
Total loans individually evaluated for impairment: | 4,440 | |
Recorded Investment | ||
With an allowance recorded: | 0 | |
With no related allowance: | 4,033 | |
Total loans individually evaluated for impairment: | 4,033 | |
Related Allowance | 0 | |
Average Recorded Investment | ||
With an allowance recorded: | 0 | 83 |
With no related allowance: | 228 | 290 |
Total loans individually evaluated for impairment: | 228 | 373 |
Interest Income Recognized | ||
With an allowance recorded: | 0 | 4 |
With no related allowance: | 13 | 17 |
Total loans individually evaluated for impairment: | 13 | 21 |
Municipal, consumer, and other | ||
Unpaid Principal Balance | ||
With an allowance recorded: | 8,152 | |
With no related allowance: | 4,410 | |
Total loans individually evaluated for impairment: | 12,562 | |
Recorded Investment | ||
With an allowance recorded: | 8,131 | |
With no related allowance: | 4,377 | |
Total loans individually evaluated for impairment: | 12,508 | |
Related Allowance | 3,562 | |
Average Recorded Investment | ||
With an allowance recorded: | 6,259 | 8,681 |
With no related allowance: | 3,361 | 4,666 |
Total loans individually evaluated for impairment: | 9,620 | 13,347 |
Interest Income Recognized | ||
With an allowance recorded: | 236 | 158 |
With no related allowance: | 148 | 86 |
Total loans individually evaluated for impairment: | $ 384 | $ 244 |
LOANS AND RELATED ALLOWANCE F_9
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Accretable Yield For Loans PREADOPTION (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in accretable yield for loans acquired with deteriorated credit quality | ||
Beginning balance | $ 413 | $ 1,397 |
Reclassification from non-accretable difference | 548 | 508 |
Disposals | 0 | (1,089) |
Accretion income | (231) | (403) |
Ending balance | $ 730 | $ 413 |
LOANS AND RELATED ALLOWANCE _10
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Past Due Status (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | $ 3,404,417 | $ 2,620,253 |
Nonaccrual | 7,820 | 2,155 |
Internal review threshold | 750 | |
Accruing Interest | Current | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 3,393,717 | 2,616,606 |
Accruing Interest | 30 - 89 Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 2,843 | 1,346 |
Accruing Interest | 90+ Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 37 | 146 |
Commercial and industrial | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 427,800 | 266,757 |
Nonaccrual | 272 | 219 |
Commercial and industrial | Accruing Interest | Current | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 427,300 | 266,521 |
Commercial and industrial | Accruing Interest | 30 - 89 Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 228 | 17 |
Commercial and industrial | Accruing Interest | 90+ Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 0 | 0 |
Commercial real estate - owner occupied | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 295,842 | 218,503 |
Nonaccrual | 170 | 74 |
Commercial real estate - owner occupied | Accruing Interest | Current | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 295,672 | 218,242 |
Commercial real estate - owner occupied | Accruing Interest | 30 - 89 Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 0 | 187 |
Commercial real estate - owner occupied | Accruing Interest | 90+ Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 0 | 0 |
Commercial real estate - non-owner occupied | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 880,681 | 713,202 |
Nonaccrual | 1,835 | 171 |
Commercial real estate - non-owner occupied | Accruing Interest | Current | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 878,591 | 713,031 |
Commercial real estate - non-owner occupied | Accruing Interest | 30 - 89 Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 255 | 0 |
Commercial real estate - non-owner occupied | Accruing Interest | 90+ Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 0 | 0 |
Construction and land development | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 363,983 | 360,824 |
Nonaccrual | 216 | 0 |
Construction and land development | Accruing Interest | Current | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 363,735 | 360,763 |
Construction and land development | Accruing Interest | 30 - 89 Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 32 | 61 |
Construction and land development | Accruing Interest | 90+ Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 0 | 0 |
Multi-family | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 417,923 | 287,865 |
Nonaccrual | 315 | 0 |
Multi-family | Accruing Interest | Current | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 417,597 | 287,854 |
Multi-family | Accruing Interest | 30 - 89 Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 11 | 11 |
Multi-family | Accruing Interest | 90+ Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 0 | 0 |
One-to-four family residential | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 491,508 | 338,253 |
Nonaccrual | 4,804 | 1,638 |
One-to-four family residential | Accruing Interest | Current | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 484,969 | 335,576 |
One-to-four family residential | Accruing Interest | 30 - 89 Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 1,735 | 894 |
One-to-four family residential | Accruing Interest | 90+ Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 0 | 145 |
Agricultural and farmland | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 287,294 | 237,746 |
Nonaccrual | 144 | 0 |
Agricultural and farmland | Accruing Interest | Current | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 286,820 | 237,727 |
Agricultural and farmland | Accruing Interest | 30 - 89 Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 330 | 19 |
Agricultural and farmland | Accruing Interest | 90+ Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 0 | 0 |
Municipal, consumer, and other | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 239,386 | 197,103 |
Nonaccrual | 64 | 53 |
Municipal, consumer, and other | Accruing Interest | Current | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 239,033 | 196,892 |
Municipal, consumer, and other | Accruing Interest | 30 - 89 Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 252 | 157 |
Municipal, consumer, and other | Accruing Interest | 90+ Days Past Due | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | $ 37 | $ 1 |
LOANS AND RELATED ALLOWANCE _11
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Non-accrual loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing receivable, nonaccrual | ||
Nonaccrual With Allowance for Credit Losses | $ 538 | |
Nonaccrual With No Allowance for Credit Losses | 7,282 | |
Total Nonaccrual | 7,820 | $ 2,155 |
Commercial and industrial | ||
Financing receivable, nonaccrual | ||
Nonaccrual With Allowance for Credit Losses | 120 | |
Nonaccrual With No Allowance for Credit Losses | 152 | |
Total Nonaccrual | 272 | 219 |
Commercial real estate - owner occupied | ||
Financing receivable, nonaccrual | ||
Nonaccrual With Allowance for Credit Losses | 0 | |
Nonaccrual With No Allowance for Credit Losses | 170 | |
Total Nonaccrual | 170 | 74 |
Commercial real estate - non-owner occupied | ||
Financing receivable, nonaccrual | ||
Nonaccrual With Allowance for Credit Losses | 188 | |
Nonaccrual With No Allowance for Credit Losses | 1,647 | |
Total Nonaccrual | 1,835 | 171 |
Construction and land development | ||
Financing receivable, nonaccrual | ||
Nonaccrual With Allowance for Credit Losses | 216 | |
Nonaccrual With No Allowance for Credit Losses | 0 | |
Total Nonaccrual | 216 | 0 |
Multi-family | ||
Financing receivable, nonaccrual | ||
Nonaccrual With Allowance for Credit Losses | 0 | |
Nonaccrual With No Allowance for Credit Losses | 315 | |
Total Nonaccrual | 315 | 0 |
One-to-four family residential | ||
Financing receivable, nonaccrual | ||
Nonaccrual With Allowance for Credit Losses | 14 | |
Nonaccrual With No Allowance for Credit Losses | 4,790 | |
Total Nonaccrual | 4,804 | 1,638 |
Agricultural and farmland | ||
Financing receivable, nonaccrual | ||
Nonaccrual With Allowance for Credit Losses | 0 | |
Nonaccrual With No Allowance for Credit Losses | 144 | |
Total Nonaccrual | 144 | 0 |
Municipal, consumer, and other | ||
Financing receivable, nonaccrual | ||
Nonaccrual With Allowance for Credit Losses | 0 | |
Nonaccrual With No Allowance for Credit Losses | 64 | |
Total Nonaccrual | $ 64 | $ 53 |
LOANS AND RELATED ALLOWANCE _12
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Assigned Risk Ratings (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | $ 3,404,417 | $ 2,620,253 |
Pass | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 3,241,889 | 2,479,488 |
Pass-Watch | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 98,206 | 66,934 |
Substandard | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 64,322 | 73,831 |
Doubtful | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 0 | 0 |
Commercial and industrial | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 427,800 | 266,757 |
Commercial and industrial | Pass | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 419,494 | 255,309 |
Commercial and industrial | Pass-Watch | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 7,128 | 6,630 |
Commercial and industrial | Substandard | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 1,178 | 4,818 |
Commercial and industrial | Doubtful | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 0 | 0 |
Commercial real estate - owner occupied | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 295,842 | 218,503 |
Commercial real estate - owner occupied | Pass | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 275,649 | 198,546 |
Commercial real estate - owner occupied | Pass-Watch | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 14,072 | 10,105 |
Commercial real estate - owner occupied | Substandard | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 6,121 | 9,852 |
Commercial real estate - owner occupied | Doubtful | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 0 | 0 |
Commercial real estate - non-owner occupied | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 880,681 | 713,202 |
Commercial real estate - non-owner occupied | Pass | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 822,012 | 652,691 |
Commercial real estate - non-owner occupied | Pass-Watch | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 33,283 | 27,282 |
Commercial real estate - non-owner occupied | Substandard | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 25,386 | 33,229 |
Commercial real estate - non-owner occupied | Doubtful | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 0 | 0 |
Construction and land development | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 363,983 | 360,824 |
Construction and land development | Pass | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 351,087 | 358,215 |
Construction and land development | Pass-Watch | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 12,604 | 2,527 |
Construction and land development | Substandard | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 292 | 82 |
Construction and land development | Doubtful | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 0 | 0 |
Multi-family | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 417,923 | 287,865 |
Multi-family | Pass | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 397,951 | 283,682 |
Multi-family | Pass-Watch | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 19,656 | 4,183 |
Multi-family | Substandard | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 316 | 0 |
Multi-family | Doubtful | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 0 | 0 |
One-to-four family residential | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 491,508 | 338,253 |
One-to-four family residential | Pass | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 472,355 | 323,632 |
One-to-four family residential | Pass-Watch | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 6,671 | 5,907 |
One-to-four family residential | Substandard | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 12,482 | 8,714 |
One-to-four family residential | Doubtful | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 0 | 0 |
Agricultural and farmland | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 287,294 | 237,746 |
Agricultural and farmland | Pass | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 280,867 | 223,114 |
Agricultural and farmland | Pass-Watch | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 3,071 | 10,004 |
Agricultural and farmland | Substandard | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 3,356 | 4,628 |
Agricultural and farmland | Doubtful | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 0 | 0 |
Municipal, consumer, and other | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 239,386 | 197,103 |
Municipal, consumer, and other | Pass | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 222,474 | 184,299 |
Municipal, consumer, and other | Pass-Watch | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 1,721 | 296 |
Municipal, consumer, and other | Substandard | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | 15,191 | 12,508 |
Municipal, consumer, and other | Doubtful | ||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | ||
Loans, before allowance for credit losses | $ 0 | $ 0 |
LOANS AND RELATED ALLOWANCE _13
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Loans risk-rated by origination year (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Term Loans by Origination Year | ||
2023 | $ 710,341 | |
2022 | 779,973 | |
2021 | 649,375 | |
2020 | 355,745 | |
2019 | 198,968 | |
Prior | 252,747 | |
Revolving Loans | 438,298 | |
Revolving Loans Converted to Term | 18,970 | |
Total | 3,404,417 | $ 2,620,253 |
Pass | ||
Term Loans by Origination Year | ||
2023 | 679,058 | |
2022 | 750,068 | |
2021 | 631,765 | |
2020 | 340,462 | |
2019 | 188,459 | |
Prior | 216,516 | |
Revolving Loans | 422,824 | |
Revolving Loans Converted to Term | 12,737 | |
Total | 3,241,889 | 2,479,488 |
Pass-Watch | ||
Term Loans by Origination Year | ||
2023 | 13,504 | |
2022 | 27,776 | |
2021 | 14,493 | |
2020 | 11,308 | |
2019 | 6,890 | |
Prior | 6,120 | |
Revolving Loans | 15,079 | |
Revolving Loans Converted to Term | 3,036 | |
Total | 98,206 | 66,934 |
Substandard | ||
Term Loans by Origination Year | ||
2023 | 17,779 | |
2022 | 2,129 | |
2021 | 3,117 | |
2020 | 3,975 | |
2019 | 3,619 | |
Prior | 30,111 | |
Revolving Loans | 395 | |
Revolving Loans Converted to Term | 3,197 | |
Total | 64,322 | 73,831 |
Commercial and industrial | ||
Term Loans by Origination Year | ||
2023 | 93,067 | |
2022 | 59,777 | |
2021 | 20,502 | |
2020 | 27,020 | |
2019 | 6,022 | |
Prior | 30,021 | |
Revolving Loans | 188,858 | |
Revolving Loans Converted to Term | 2,533 | |
Total | 427,800 | 266,757 |
Commercial and industrial | Pass | ||
Term Loans by Origination Year | ||
2023 | 90,931 | |
2022 | 58,364 | |
2021 | 19,283 | |
2020 | 26,816 | |
2019 | 5,269 | |
Prior | 29,550 | |
Revolving Loans | 187,579 | |
Revolving Loans Converted to Term | 1,702 | |
Total | 419,494 | 255,309 |
Commercial and industrial | Pass-Watch | ||
Term Loans by Origination Year | ||
2023 | 2,025 | |
2022 | 1,340 | |
2021 | 892 | |
2020 | 144 | |
2019 | 753 | |
Prior | 471 | |
Revolving Loans | 956 | |
Revolving Loans Converted to Term | 547 | |
Total | 7,128 | 6,630 |
Commercial and industrial | Substandard | ||
Term Loans by Origination Year | ||
2023 | 111 | |
2022 | 73 | |
2021 | 327 | |
2020 | 60 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans | 323 | |
Revolving Loans Converted to Term | 284 | |
Total | 1,178 | 4,818 |
Commercial real estate - owner occupied | ||
Term Loans by Origination Year | ||
2023 | 34,311 | |
2022 | 65,258 | |
2021 | 62,136 | |
2020 | 55,172 | |
2019 | 34,206 | |
Prior | 31,210 | |
Revolving Loans | 13,549 | |
Revolving Loans Converted to Term | 0 | |
Total | 295,842 | 218,503 |
Commercial real estate - owner occupied | Pass | ||
Term Loans by Origination Year | ||
2023 | 27,516 | |
2022 | 64,229 | |
2021 | 55,376 | |
2020 | 53,634 | |
2019 | 32,469 | |
Prior | 28,876 | |
Revolving Loans | 13,549 | |
Revolving Loans Converted to Term | 0 | |
Total | 275,649 | 198,546 |
Commercial real estate - owner occupied | Pass-Watch | ||
Term Loans by Origination Year | ||
2023 | 4,061 | |
2022 | 943 | |
2021 | 5,210 | |
2020 | 1,474 | |
2019 | 1,573 | |
Prior | 811 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 14,072 | 10,105 |
Commercial real estate - owner occupied | Substandard | ||
Term Loans by Origination Year | ||
2023 | 2,734 | |
2022 | 86 | |
2021 | 1,550 | |
2020 | 64 | |
2019 | 164 | |
Prior | 1,523 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 6,121 | 9,852 |
Commercial real estate - non-owner occupied | ||
Term Loans by Origination Year | ||
2023 | 135,722 | |
2022 | 247,340 | |
2021 | 245,252 | |
2020 | 89,247 | |
2019 | 88,734 | |
Prior | 48,572 | |
Revolving Loans | 23,859 | |
Revolving Loans Converted to Term | 1,955 | |
Total | 880,681 | 713,202 |
Commercial real estate - non-owner occupied | Pass | ||
Term Loans by Origination Year | ||
2023 | 121,536 | |
2022 | 240,323 | |
2021 | 237,953 | |
2020 | 88,894 | |
2019 | 82,094 | |
Prior | 39,228 | |
Revolving Loans | 10,274 | |
Revolving Loans Converted to Term | 1,710 | |
Total | 822,012 | 652,691 |
Commercial real estate - non-owner occupied | Pass-Watch | ||
Term Loans by Origination Year | ||
2023 | 810 | |
2022 | 6,893 | |
2021 | 7,013 | |
2020 | 353 | |
2019 | 4,230 | |
Prior | 154 | |
Revolving Loans | 13,585 | |
Revolving Loans Converted to Term | 245 | |
Total | 33,283 | 27,282 |
Commercial real estate - non-owner occupied | Substandard | ||
Term Loans by Origination Year | ||
2023 | 13,376 | |
2022 | 124 | |
2021 | 286 | |
2020 | 0 | |
2019 | 2,410 | |
Prior | 9,190 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 25,386 | 33,229 |
Construction and land development | ||
Term Loans by Origination Year | ||
2023 | 153,652 | |
2022 | 129,971 | |
2021 | 56,954 | |
2020 | 5,596 | |
2019 | 2,662 | |
Prior | 872 | |
Revolving Loans | 12,213 | |
Revolving Loans Converted to Term | 2,063 | |
Total | 363,983 | 360,824 |
Construction and land development | Pass | ||
Term Loans by Origination Year | ||
2023 | 153,499 | |
2022 | 119,005 | |
2021 | 56,954 | |
2020 | 5,596 | |
2019 | 2,662 | |
Prior | 796 | |
Revolving Loans | 12,050 | |
Revolving Loans Converted to Term | 525 | |
Total | 351,087 | 358,215 |
Construction and land development | Pass-Watch | ||
Term Loans by Origination Year | ||
2023 | 153 | |
2022 | 10,750 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans | 163 | |
Revolving Loans Converted to Term | 1,538 | |
Total | 12,604 | 2,527 |
Construction and land development | Substandard | ||
Term Loans by Origination Year | ||
2023 | 0 | |
2022 | 216 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 76 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 292 | 82 |
Multi-family | ||
Term Loans by Origination Year | ||
2023 | 87,009 | |
2022 | 88,704 | |
2021 | 115,718 | |
2020 | 61,947 | |
2019 | 34,104 | |
Prior | 24,038 | |
Revolving Loans | 5,904 | |
Revolving Loans Converted to Term | 499 | |
Total | 417,923 | 287,865 |
Multi-family | Pass | ||
Term Loans by Origination Year | ||
2023 | 83,898 | |
2022 | 81,507 | |
2021 | 115,402 | |
2020 | 53,126 | |
2019 | 34,053 | |
Prior | 23,570 | |
Revolving Loans | 5,904 | |
Revolving Loans Converted to Term | 491 | |
Total | 397,951 | 283,682 |
Multi-family | Pass-Watch | ||
Term Loans by Origination Year | ||
2023 | 3,111 | |
2022 | 7,197 | |
2021 | 0 | |
2020 | 8,821 | |
2019 | 51 | |
Prior | 468 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term | 8 | |
Total | 19,656 | 4,183 |
Multi-family | Substandard | ||
Term Loans by Origination Year | ||
2023 | 0 | |
2022 | 0 | |
2021 | 316 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 316 | 0 |
One-to-four family residential | ||
Term Loans by Origination Year | ||
2023 | 109,226 | |
2022 | 93,449 | |
2021 | 83,852 | |
2020 | 65,226 | |
2019 | 23,235 | |
Prior | 50,211 | |
Revolving Loans | 57,515 | |
Revolving Loans Converted to Term | 8,794 | |
Total | 491,508 | 338,253 |
One-to-four family residential | Pass | ||
Term Loans by Origination Year | ||
2023 | 105,337 | |
2022 | 91,636 | |
2021 | 82,289 | |
2020 | 64,094 | |
2019 | 21,986 | |
Prior | 44,241 | |
Revolving Loans | 57,248 | |
Revolving Loans Converted to Term | 5,524 | |
Total | 472,355 | 323,632 |
One-to-four family residential | Pass-Watch | ||
Term Loans by Origination Year | ||
2023 | 2,382 | |
2022 | 286 | |
2021 | 940 | |
2020 | 486 | |
2019 | 212 | |
Prior | 1,804 | |
Revolving Loans | 203 | |
Revolving Loans Converted to Term | 358 | |
Total | 6,671 | 5,907 |
One-to-four family residential | Substandard | ||
Term Loans by Origination Year | ||
2023 | 1,507 | |
2022 | 1,527 | |
2021 | 623 | |
2020 | 646 | |
2019 | 1,037 | |
Prior | 4,166 | |
Revolving Loans | 64 | |
Revolving Loans Converted to Term | 2,912 | |
Total | 12,482 | 8,714 |
Agricultural and farmland | ||
Term Loans by Origination Year | ||
2023 | 53,719 | |
2022 | 37,961 | |
2021 | 37,042 | |
2020 | 37,189 | |
2019 | 8,981 | |
Prior | 8,619 | |
Revolving Loans | 100,658 | |
Revolving Loans Converted to Term | 3,125 | |
Total | 287,294 | 237,746 |
Agricultural and farmland | Pass | ||
Term Loans by Origination Year | ||
2023 | 52,766 | |
2022 | 37,600 | |
2021 | 36,604 | |
2020 | 33,960 | |
2019 | 8,910 | |
Prior | 7,756 | |
Revolving Loans | 100,486 | |
Revolving Loans Converted to Term | 2,785 | |
Total | 280,867 | 223,114 |
Agricultural and farmland | Pass-Watch | ||
Term Loans by Origination Year | ||
2023 | 953 | |
2022 | 361 | |
2021 | 425 | |
2020 | 30 | |
2019 | 71 | |
Prior | 719 | |
Revolving Loans | 172 | |
Revolving Loans Converted to Term | 340 | |
Total | 3,071 | 10,004 |
Agricultural and farmland | Substandard | ||
Term Loans by Origination Year | ||
2023 | 0 | |
2022 | 0 | |
2021 | 13 | |
2020 | 3,199 | |
2019 | 0 | |
Prior | 144 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 3,356 | 4,628 |
Municipal, consumer, and other | ||
Term Loans by Origination Year | ||
2023 | 43,635 | |
2022 | 57,513 | |
2021 | 27,919 | |
2020 | 14,348 | |
2019 | 1,024 | |
Prior | 59,204 | |
Revolving Loans | 35,742 | |
Revolving Loans Converted to Term | 1 | |
Total | 239,386 | 197,103 |
Municipal, consumer, and other | Pass | ||
Term Loans by Origination Year | ||
2023 | 43,575 | |
2022 | 57,404 | |
2021 | 27,904 | |
2020 | 14,342 | |
2019 | 1,016 | |
Prior | 42,499 | |
Revolving Loans | 35,734 | |
Revolving Loans Converted to Term | 0 | |
Total | 222,474 | 184,299 |
Municipal, consumer, and other | Pass-Watch | ||
Term Loans by Origination Year | ||
2023 | 9 | |
2022 | 6 | |
2021 | 13 | |
2020 | 0 | |
2019 | 0 | |
Prior | 1,693 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 1,721 | 296 |
Municipal, consumer, and other | Substandard | ||
Term Loans by Origination Year | ||
2023 | 51 | |
2022 | 103 | |
2021 | 2 | |
2020 | 6 | |
2019 | 8 | |
Prior | 15,012 | |
Revolving Loans | 8 | |
Revolving Loans Converted to Term | 1 | |
Total | $ 15,191 | $ 12,508 |
LOANS AND RELATED ALLOWANCE _14
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Troubled Debt Restructurings, Pledged loans (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Loans and Leases Receivable Disclosure [Abstract] | |
Troubled debt restructurings | $ 3 |
LOAN SERVICING - Mortgage Servi
LOAN SERVICING - Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Beginning balance | $ 10,147 | ||
Ending balance | 19,001 | $ 10,147 | |
Mortgage Loans | |||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES | |||
Mortgage loans serviced for others | 1,660,000 | 955,800 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Beginning balance | 10,147 | 7,994 | $ 5,934 |
Acquired | 10,469 | 0 | 370 |
Capitalized servicing rights | 726 | 530 | 1,200 |
Fair value adjustments attributable to payments and principal reductions | (2,110) | (1,343) | (1,788) |
Fair value adjustments attributable to changes in valuation inputs and assumptions | (231) | 2,966 | 2,278 |
Ending balance | $ 19,001 | $ 10,147 | $ 7,994 |
BANK PREMISES AND EQUIPMENT - D
BANK PREMISES AND EQUIPMENT - Depreciation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Total bank premises and equipment | $ 120,160 | $ 102,381 | |
Less accumulated depreciation | 55,010 | 51,912 | |
Bank premises and equipment, net | 65,150 | 50,469 | |
Total depreciation expense | 3,108 | 3,043 | $ 3,074 |
Land, buildings, and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total bank premises and equipment | 93,955 | 77,869 | |
Furniture, fixtures, and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total bank premises and equipment | 26,205 | 24,512 | |
Total depreciation expense | 1,229 | 1,420 | 1,380 |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total depreciation expense | $ 1,879 | $ 1,623 | $ 1,694 |
BANK PREMISES AND EQUIPMENT - N
BANK PREMISES AND EQUIPMENT - Narrative (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Abstract] | ||
Bank premises held for sale | $ 0 | $ 235,000 |
FORECLOSED ASSETS - Activity (D
FORECLOSED ASSETS - Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Real Estate Acquired Through Foreclosure [Roll Forward] | |||
Beginning balance | $ 3,030 | $ 3,278 | $ 4,168 |
Acquired | 271 | 0 | 0 |
Transfers from loans | 1,143 | 541 | 4,857 |
Proceeds from sales | (4,093) | (475) | (5,805) |
Sales through loan origination | 0 | 0 | (252) |
Net gain on sales | 764 | 118 | 505 |
Direct write-downs | (263) | (432) | (195) |
Ending balance | $ 852 | $ 3,030 | $ 3,278 |
FORECLOSED ASSETS - Gains (loss
FORECLOSED ASSETS - Gains (losses) on Foreclosed Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Real Estate, Foreclosed Assets, and Repossessed Assets [Abstract] | |||
Direct write-downs | $ (263) | $ (432) | $ (195) |
Net gain on sales | 764 | 118 | 505 |
Gains (losses) on foreclosed assets | $ 501 | $ (314) | $ 310 |
FORECLOSED ASSETS - Additional
FORECLOSED ASSETS - Additional Information (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
FORECLOSED ASSETS | ||||
Carrying value of foreclosed asset | $ 852 | $ 3,030 | $ 3,278 | $ 4,168 |
One-to-four family residential real estate property | ||||
FORECLOSED ASSETS | ||||
Carrying value of foreclosed asset | $ 100 | $ 20 | ||
Number of loans in the process of foreclosure | loan | 16 | 4 | ||
Loan amount in the process of foreclosure | $ 1,200 | $ 200 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Feb. 01, 2023 | Dec. 31, 2022 | Oct. 01, 2021 |
Goodwill [Line Items] | ||||
Goodwill | $ 59,820 | $ 29,322 | ||
Town and Country | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 30,498 | |||
NXT Bancorporation, Inc | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 5,702 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule Of Goodwill And Finite Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Roll Forward] | |||
Beginning balance | $ 1,070 | ||
Amortization | (2,670) | $ (873) | $ (1,054) |
Ending balance | 20,682 | 1,070 | |
Core Deposit Intangible | |||
Finite-Lived Intangible Assets [Roll Forward] | |||
Beginning balance | 1,070 | 1,943 | 2,798 |
Additions | 21,282 | 0 | 199 |
Amortization | (2,578) | (873) | (1,054) |
Ending balance | 19,774 | 1,070 | 1,943 |
Accumulated amortization | 23,425 | 20,847 | 19,974 |
Customer Relationship Intangible | |||
Finite-Lived Intangible Assets [Roll Forward] | |||
Beginning balance | 0 | 0 | 0 |
Additions | 1,000 | 0 | 0 |
Amortization | (92) | 0 | 0 |
Ending balance | 908 | 0 | 0 |
Accumulated amortization | $ 92 | $ 0 | $ 0 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Amortization (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 2,839 | |
2025 | 2,726 | |
2026 | 2,411 | |
2027 | 2,338 | |
2028 | 2,255 | |
Thereafter | 8,113 | |
Intangible assets, net | $ 20,682 | $ 1,070 |
DEPOSITS - Interest bearing Dep
DEPOSITS - Interest bearing Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
DEPOSITS | ||
Noninterest-bearing | $ 1,072,407 | $ 994,954 |
Interest-bearing deposits: | ||
Interest-bearing demand | 1,145,092 | 1,139,150 |
Money market | 803,381 | 555,425 |
Savings | 608,424 | 634,527 |
Time | 627,253 | 262,968 |
Brokered | 144,880 | 0 |
Total interest-bearing deposits | 3,329,030 | 2,592,070 |
Total deposits | $ 4,401,437 | $ 3,587,024 |
DEPOSITS - Interest bearing D_2
DEPOSITS - Interest bearing Deposits - Narrative (Detail) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deposits [Abstract] | ||
Reciprocal transaction deposits, Interest bearing demand deposits | $ 51.3 | |
Reciprocal transaction deposits, money market deposits | 155.1 | $ 1.7 |
Reciprocal transaction deposits, time deposits | 30.5 | 1.6 |
Time deposits, at or above FDIC insurance limit | 130.2 | 27.2 |
Time deposits in denominations of $100,000 or more | $ 342.8 | $ 92.6 |
DEPOSITS - Interest expense on
DEPOSITS - Interest expense on Deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deposits [Abstract] | |||
Interest-bearing demand | $ 3,130 | $ 607 | $ 518 |
Money market | 7,352 | 813 | 437 |
Savings | 1,033 | 208 | 188 |
Time | 10,784 | 883 | 1,329 |
Brokered | 2,836 | 0 | 0 |
Total interest expense on deposits | $ 25,135 | $ 2,511 | $ 2,472 |
DEPOSITS - Scheduled Maturities
DEPOSITS - Scheduled Maturities Of Time Deposits (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Deposits [Abstract] | |
2024 | $ 676,895 |
2025 | 76,274 |
2026 | 10,593 |
2027 | 4,992 |
2028 | 3,255 |
Thereafter | 124 |
Time deposits | $ 772,133 |
SECURITIES SOLD UNDER AGREEME_3
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Broker-Dealer [Abstract] | ||
Securities sold under agreements to repurchase | $ 42,442 | $ 43,081 |
Weighted average rate as of end of year | 2.42% | 0.28% |
Fair value of securities underlying the agreements | $ 49,303 | $ 50,771 |
Carrying value of securities underlying the agreements | $ 52,958 | $ 55,850 |
BORROWINGS (Details)
BORROWINGS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
FHLB borrowings | $ 12,623 | $ 160,000 |
Weighted average rate | 0.55% | 4.29% |
Securities pledged, served as collateral | $ 1,200,000 | $ 892,100 |
Loans pledged in association with Mortgage Partnership Finance Program | 400 | 300 |
FRB Line of credit | ||
Debt Instrument [Line Items] | ||
Borrowings | 0 | 0 |
Securities pledged, served as collateral | $ 9,800 | $ 0 |
SUBORDINATED NOTES (Details)
SUBORDINATED NOTES (Details) - Subordinated notes - USD ($) $ in Thousands | Sep. 03, 2020 | Dec. 31, 2023 | Dec. 31, 2022 |
SUBORDINATED NOTES | |||
Subordinated notes, at face value | $ 40,000 | $ 40,000 | $ 40,000 |
Fixed interest rate | 4.50% | ||
Debt issuance costs | $ 800 | ||
Amortization period of debt issuance costs | 10 years | ||
Qualifies as Tier 2 capital | 100% | 100% | |
SOFR | |||
SUBORDINATED NOTES | |||
Spread on interest rate basis | 4.37% |
SUBORDINATED NOTES - Summary (D
SUBORDINATED NOTES - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Sep. 03, 2020 |
SUBORDINATED NOTES | |||
Subordinated notes, at carrying value | $ 39,474 | $ 39,395 | |
Subordinated notes | |||
SUBORDINATED NOTES | |||
Subordinated notes, at face value | 40,000 | 40,000 | $ 40,000 |
Unamortized issuance costs | (526) | (605) | |
Subordinated notes, at carrying value | $ 39,474 | $ 39,395 |
JUNIOR SUBORDINATED DEBENTURE_3
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2023 period trust | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Number of subsidiary business trusts | 8 | |
Maximum deferred interest period quarters | period | 20 | |
Period shorten the maturity date from the event | 90 days | |
Trust preferred securities qualified as Tier 1 capital | 100% | 100% |
Town and Country | ||
Debt Instrument [Line Items] | ||
Number of subsidiary business trusts acquired | 3 |
JUNIOR SUBORDINATED DEBENTURE_4
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS - Carrying Values (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
SUBORDINATED NOTES | ||
Junior subordinated debentures | $ 52,789 | $ 37,780 |
Junior subordinated debentures | ||
SUBORDINATED NOTES | ||
Subordinated notes, at face value | 53,714 | |
Junior subordinated debentures | 52,789 | 37,780 |
Junior subordinated debentures | Heartland Bancorp, Inc. Capital Trust B | ||
SUBORDINATED NOTES | ||
Subordinated notes, at face value | 10,310 | |
Junior subordinated debentures | 10,310 | 10,310 |
Junior subordinated debentures | Heartland Bancorp, Inc. Capital Trust C | ||
SUBORDINATED NOTES | ||
Subordinated notes, at face value | 10,310 | |
Junior subordinated debentures | 10,310 | 10,310 |
Junior subordinated debentures | Heartland Bancorp, Inc. Capital Trust D | ||
SUBORDINATED NOTES | ||
Subordinated notes, at face value | 5,155 | |
Junior subordinated debentures | 5,155 | 5,155 |
Junior subordinated debentures | FFBI Capital Trust I | ||
SUBORDINATED NOTES | ||
Subordinated notes, at face value | 7,217 | |
Junior subordinated debentures | 7,217 | 7,217 |
Junior subordinated debentures | National Bancorp Statutory Trust I | ||
SUBORDINATED NOTES | ||
Subordinated notes, at face value | 5,773 | |
Junior subordinated debentures | 4,853 | 4,788 |
Junior subordinated debentures | Town and Country Statutory Trust II | ||
SUBORDINATED NOTES | ||
Subordinated notes, at face value | 4,124 | |
Junior subordinated debentures | 4,401 | 0 |
Junior subordinated debentures | Town and Country Statutory Trust III | ||
SUBORDINATED NOTES | ||
Subordinated notes, at face value | 7,732 | |
Junior subordinated debentures | 7,578 | 0 |
Junior subordinated debentures | West Plains Investors Statutory Trust I | ||
SUBORDINATED NOTES | ||
Subordinated notes, at face value | 3,093 | |
Junior subordinated debentures | $ 2,965 | $ 0 |
JUNIOR SUBORDINATED DEBENTURE_5
JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS - Interest rate and maturities (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Heartland Bancorp, Inc. Capital Trust B | ||
SUBORDINATED NOTES | ||
Spread on interest rate basis | 3.01% | |
Interest Rate | 8.41% | 6.83% |
Heartland Bancorp, Inc. Capital Trust C | ||
SUBORDINATED NOTES | ||
Spread on interest rate basis | 1.79% | |
Interest Rate | 7.18% | 6.30% |
Heartland Bancorp, Inc. Capital Trust D | ||
SUBORDINATED NOTES | ||
Spread on interest rate basis | 1.61% | |
Interest Rate | 7% | 6.12% |
FFBI Capital Trust I | ||
SUBORDINATED NOTES | ||
Spread on interest rate basis | 3.06% | |
Interest Rate | 8.46% | 6.88% |
National Bancorp Statutory Trust I | ||
SUBORDINATED NOTES | ||
Spread on interest rate basis | 3.16% | |
Interest Rate | 8.55% | 7.67% |
Town and Country Statutory Trust II | ||
SUBORDINATED NOTES | ||
Spread on interest rate basis | 3.05% | |
Interest Rate | 8.43% | |
Town and Country Statutory Trust III | ||
SUBORDINATED NOTES | ||
Spread on interest rate basis | 1.94% | |
Interest Rate | 7.33% | |
West Plains Investors Statutory Trust I | ||
SUBORDINATED NOTES | ||
Spread on interest rate basis | 1.71% | |
Interest Rate | 7.10% |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Cash pledged | $ 0.6 | $ 0.6 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Derivative instrument assets and liabilities (Details) - Designated as Hedging Instrument - Interest Rate Swap - Cash Flow Hedging - Other Assets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
DERIVATIVE FINANCIAL INSTRUMENTS | ||
Derivative asset notional amount | $ 17,000 | $ 17,000 |
Fair value recorded in other assets | $ 322 | $ 629 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Interest rate contracts designated as cash flow hedges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flow Hedging | Interest Expense | |||
DERIVATIVE FINANCIAL INSTRUMENTS | |||
Amounts of gross gain (loss) reclassified from accumulated other comprehensive income (loss) | $ 468 | $ (126) | $ (412) |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - Interest rate contracts not designated as hedging instruments (Details) - Not Designated as Hedging Instrument - Interest Rate Swap - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Assets | ||
DERIVATIVE FINANCIAL INSTRUMENTS | ||
Derivative asset notional amount | $ 94,497 | $ 106,995 |
Derivative financial assets | 6,227 | 6,981 |
Other Assets | Commercial Borrower | ||
DERIVATIVE FINANCIAL INSTRUMENTS | ||
Derivative asset notional amount | 0 | 0 |
Derivative financial assets | 0 | 0 |
Other Assets | Financial Institutions Borrower | ||
DERIVATIVE FINANCIAL INSTRUMENTS | ||
Derivative asset notional amount | 94,497 | 106,995 |
Derivative financial assets | 6,227 | 6,981 |
Other Liabilities | ||
DERIVATIVE FINANCIAL INSTRUMENTS | ||
Derivative liability notional amount | 94,497 | 106,995 |
Derivative financial liabilities fair value | (6,227) | (6,981) |
Other Liabilities | Commercial Borrower | ||
DERIVATIVE FINANCIAL INSTRUMENTS | ||
Derivative liability notional amount | 94,497 | 106,995 |
Derivative financial liabilities fair value | (6,227) | (6,981) |
Other Liabilities | Financial Institutions Borrower | ||
DERIVATIVE FINANCIAL INSTRUMENTS | ||
Derivative liability notional amount | 0 | 0 |
Derivative financial liabilities fair value | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS- Summary of the effect of interest rate contracts not designated as hedging instruments recognized in other noninterest income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |||||
Net gains (losses) | $ 0 | $ 0 | $ 0 | ||
Interest Rate Swap | Not Designated as Hedging Instrument | |||||
DERIVATIVE FINANCIAL INSTRUMENTS | |||||
Derivative, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income | Other income | Other income | Other income | |
Derivative, Loss, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income | Other income | Other income | Other income | |
Gross gains | $ 11,198 | $ 16,002 | 13,773 | ||
Gross losses | $ (11,198) | $ (16,002) | $ (13,773) |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 373,632 | $ 411,881 | $ 363,917 |
Transfer from available-for-sale to held-to-maturity | 0 | 0 | |
Other comprehensive income (loss) before reclassifications | 17,110 | (104,276) | (24,432) |
Reclassifications | 3,306 | 1,849 | 1,099 |
Other comprehensive income (loss), before tax | 20,416 | (102,427) | (23,333) |
Income tax expense (benefit) | 5,820 | (29,197) | (6,651) |
Other comprehensive income (loss), after tax | 14,596 | (73,230) | (16,682) |
Ending balance | 489,496 | 373,632 | 411,881 |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (71,759) | 1,471 | 18,153 |
Other comprehensive income (loss), after tax | 14,596 | (73,230) | (16,682) |
Ending balance | (57,163) | (71,759) | 1,471 |
Available-for-Sale | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (61,998) | 5,736 | 19,578 |
Transfer from available-for-sale to held-to-maturity | 7,664 | 3,887 | |
Other comprehensive income (loss) before reclassifications | 16,949 | (105,459) | (24,798) |
Reclassifications | 1,820 | 0 | 0 |
Other comprehensive income (loss), before tax | 18,769 | (105,459) | (24,798) |
Income tax expense (benefit) | 5,350 | (30,061) | (7,069) |
Other comprehensive income (loss), after tax | 13,419 | (75,398) | (17,729) |
Ending balance | (48,579) | (61,998) | 5,736 |
Held-to-Maturity | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (9,946) | (3,514) | (118) |
Transfer from available-for-sale to held-to-maturity | (7,664) | (3,887) | |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 |
Reclassifications | 1,954 | 1,723 | 687 |
Other comprehensive income (loss), before tax | 1,954 | 1,723 | 687 |
Income tax expense (benefit) | 557 | 491 | 196 |
Other comprehensive income (loss), after tax | 1,397 | 1,232 | 491 |
Ending balance | (8,549) | (9,946) | (3,514) |
Derivatives | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 185 | (751) | (1,307) |
Transfer from available-for-sale to held-to-maturity | 0 | 0 | |
Other comprehensive income (loss) before reclassifications | 161 | 1,183 | 366 |
Reclassifications | (468) | 126 | 412 |
Other comprehensive income (loss), before tax | (307) | 1,309 | 778 |
Income tax expense (benefit) | (87) | 373 | 222 |
Other comprehensive income (loss), after tax | (220) | 936 | 556 |
Ending balance | $ (35) | $ 185 | $ (751) |
INCOME TAXES - Allocation (Deta
INCOME TAXES - Allocation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current | |||
Federal | $ 12,538 | $ 15,194 | $ 11,330 |
State | 6,384 | 7,459 | 6,053 |
Total current | 18,922 | 22,653 | 17,383 |
Deferred | |||
Federal | 2,811 | (2,045) | 1,945 |
State | 1,006 | (874) | 963 |
Total deferred | 3,817 | (2,919) | 2,908 |
Income tax expense | $ 22,739 | $ 19,734 | $ 20,291 |
INCOME TAXES - Federal income t
INCOME TAXES - Federal income tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Federal income tax expense: | |||
Federal income tax, at statutory rate | $ 18,602 | $ 16,000 | $ 16,078 |
Federal income tax, at statutory rate (as a percent) | 21% | 21% | 21% |
Increase (decrease) resulting from: | |||
Federally tax exempt interest income | $ (1,767) | $ (1,618) | $ (1,426) |
Federally tax exempt interest income (as a percent) | (2.00%) | (2.10%) | (1.90%) |
State taxes, net of federal benefit | $ 5,838 | $ 5,285 | $ 5,430 |
State taxes, net of federal benefit (as a percent) | 6.60% | 6.90% | 7.10% |
Other | $ 66 | $ 67 | $ 209 |
Other (as a percent) | 0.10% | 0.10% | 0.30% |
Income tax expense | $ 22,739 | $ 19,734 | $ 20,291 |
Total (as a percent) | 25.70% | 25.90% | 26.50% |
INCOME TAXES - Components of ne
INCOME TAXES - Components of net deferred tax asset (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets | ||
Allowance for credit losses | $ 12,247 | $ 7,151 |
Compensation related | 3,230 | 2,623 |
Deferred loan fees | 676 | 965 |
Nonaccrual interest | 596 | 480 |
Foreclosed assets | 18 | 142 |
Goodwill | 74 | 153 |
Net operating loss carryforward | 144 | 0 |
Net unrealized losses on debt securities | 23,967 | 29,874 |
Deferred Tax Assets Other Purchase Accounting Adjustments | 5,250 | 0 |
Other | 575 | 5,237 |
Total deferred tax assets | 46,777 | 46,625 |
Deferred tax liabilities | ||
Fixed asset depreciation | 3,044 | 3,940 |
Mortgage servicing rights | 5,306 | 2,868 |
Other purchase accounting adjustments | 0 | 610 |
Intangible assets | 5,584 | 214 |
Prepaid assets | 816 | 756 |
Other | 566 | 2,756 |
Total deferred tax liabilities | 15,316 | 11,144 |
Net deferred tax asset (liability) | $ 31,461 | $ 35,481 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Income Tax Contingency [Line Items] | ||
Net operating loss carryforward | $ 144 | $ 0 |
Illinois Department Of Revenue | ||
Income Tax Contingency [Line Items] | ||
Net operating loss carryforward | $ 1,900 |
EARNINGS PER SHARE - computatio
EARNINGS PER SHARE - computation of basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net income | $ 65,842 | $ 56,456 | $ 56,271 |
Earnings allocated to participating securities | (36) | (66) | (104) |
Numerator for earnings per share - basic | 65,806 | 56,390 | 56,167 |
Numerator for earnings per share - diluted | $ 65,806 | $ 56,390 | $ 56,167 |
Denominator: | |||
Weighted average shares of common stock outstanding (in shares) | 31,626,308 | 28,853,697 | 27,795,806 |
Dilutive effect of outstanding restricted stock units (in shares) | 111,839 | 65,619 | 15,487 |
Weighted average common shares outstanding, including all dilutive potential shares (in shares) | 31,738,147 | 28,919,316 | 27,811,293 |
Earnings per share, basic (in dollars per share) | $ 2.08 | $ 1.95 | $ 2.02 |
Earnings per share, diluted (in dollars per share) | $ 2.07 | $ 1.95 | $ 2.02 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
EMPLOYEE BENEFIT PLANS | |||
Medical benefits expense amount | $ 6.2 | $ 4.9 | $ 4.2 |
Deferred Profit Sharing | |||
EMPLOYEE BENEFIT PLANS | |||
Contribution expense | $ 1.7 | $ 1.3 | $ 1.3 |
Employees contributions vesting period | 6 years | 6 years | 6 years |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
STOCK-BASED COMPENSATION PLANS | ||||
Vesting percentage of unvested restricted stock units and performance restricted stock units, if retirement eligibility requirements are met | 100% | |||
Accelerated stock-based compensation expense | $ 600 | |||
Restricted stock units | ||||
STOCK-BASED COMPENSATION PLANS | ||||
Number of shares participant is entitled to receive (in shares) | 1 | |||
Fair value of units granted | $ 1,000 | $ 1,300 | $ 900 | |
Intrinsic value of restricted stock units | 1,100 | 700 | 300 | |
Unrecognized compensation cost related to non-vested stock-based compensation agreements | $ 900 | |||
Weighted average remaining service period | 1 year 8 months 12 days | |||
Performance restricted stock units | ||||
STOCK-BASED COMPENSATION PLANS | ||||
Unrecognized compensation cost related to non-vested stock-based compensation agreements | $ 300 | |||
Weighted average remaining service period | 1 year 6 months | |||
Performance restricted stock units | Share-Based Payment Arrangement, Employee | ||||
STOCK-BASED COMPENSATION PLANS | ||||
Fair value of units granted | $ 400 | 500 | $ 600 | |
Performance restricted stock units | Minimum | ||||
STOCK-BASED COMPENSATION PLANS | ||||
Percentage of the number of units granted that may be earned | 0% | |||
Performance restricted stock units | Maximum | ||||
STOCK-BASED COMPENSATION PLANS | ||||
Percentage of the number of units granted that may be earned | 150% | |||
Stock appreciation rights | ||||
STOCK-BASED COMPENSATION PLANS | ||||
Unrecognized compensation cost related to non-vested stock-based compensation agreements | $ 0 | |||
Stock appreciation rights plan liability recorded for the outstanding units | 600 | 500 | ||
Stock appreciation rights plan liability recorded for the previously exercised units | $ 200 | $ 500 | ||
Omnibus Incentive Plan | ||||
STOCK-BASED COMPENSATION PLANS | ||||
Authorized number of shares (in shares) | 1,820,000 |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS - Summary of stock-based compensation expense (benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
STOCK-BASED COMPENSATION PLANS | |||
Total stock-based compensation expense | $ 2,048 | $ 2,037 | $ 990 |
Restricted stock units | |||
STOCK-BASED COMPENSATION PLANS | |||
Total stock-based compensation expense | 1,204 | 1,334 | 579 |
Performance restricted stock units | |||
STOCK-BASED COMPENSATION PLANS | |||
Total stock-based compensation expense | 749 | 615 | 185 |
Total awards classified as equity | |||
STOCK-BASED COMPENSATION PLANS | |||
Total stock-based compensation expense | 1,953 | 1,949 | 764 |
Stock appreciation rights | |||
STOCK-BASED COMPENSATION PLANS | |||
Total stock-based compensation expense | $ 95 | $ 88 | $ 226 |
STOCK-BASED COMPENSATION PLAN_4
STOCK-BASED COMPENSATION PLANS - Summary of equity award activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock-based compensation plans | |||
Expirations (in shares) | 0 | 0 | (1,530) |
Weighted Average Grant Date Assigned Value | |||
Expired (in dollars per share) | $ 0 | $ 0 | $ 16.32 |
Restricted stock units | |||
Stock-based compensation plans | |||
Outstanding (in shares) | 139,986 | 109,244 | 71,000 |
Granted (in shares) | 41,847 | 66,995 | 59,994 |
Exercised (in shares) | (51,693) | (34,925) | (20,225) |
Forfeited (in shares) | (1,981) | (1,328) | (1,525) |
Outstanding (in shares) | 128,159 | 139,986 | 109,244 |
Weighted Average Grant Date Assigned Value | |||
Outstanding (in dollars per share) | $ 18.01 | $ 17.27 | $ 18.98 |
Granted (in dollars per share) | 22.72 | 18.81 | 15.81 |
Exercised (in dollars per share) | 17.91 | 17.26 | 18.86 |
Forfeited (in dollars per share) | 19.55 | 18.35 | 18.11 |
Outstanding (in dollars per share) | $ 19.56 | $ 18.01 | $ 17.27 |
Performance restricted stock units | |||
Stock-based compensation plans | |||
Outstanding (in shares) | 62,067 | 38,344 | 0 |
Granted (in shares) | 17,030 | 23,723 | 38,344 |
Vested (in shares) | 0 | 0 | 0 |
Forfeited (in shares) | 0 | 0 | 0 |
Outstanding (in shares) | 79,097 | 62,067 | 38,344 |
Weighted Average Grant Date Assigned Value | |||
Outstanding (in dollars per share) | $ 17.02 | $ 15.72 | $ 0 |
Granted (in dollars per share) | 22.72 | 19.14 | 15.72 |
Vested (in dollars per share) | 0 | 0 | 0 |
Forfeited (in dollars per share) | 0 | 0 | 0 |
Outstanding (in dollars per share) | $ 18.25 | $ 17.02 | $ 15.72 |
Stock appreciation rights | |||
Stock-based compensation plans | |||
Outstanding (in shares) | 73,440 | 97,920 | 105,570 |
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | 0 | (24,480) | (6,120) |
Forfeited (in shares) | 0 | 0 | 0 |
Outstanding (in shares) | 73,440 | 73,440 | 97,920 |
Weighted Average Grant Date Assigned Value | |||
Outstanding (in dollars per share) | $ 16.32 | $ 16.32 | $ 16.32 |
Granted (in dollars per share) | 0 | 0 | 0 |
Exercised (in dollars per share) | 0 | 16.32 | 16.32 |
Forfeited (in dollars per share) | 0 | 0 | 0 |
Outstanding (in dollars per share) | $ 16.32 | $ 16.32 | $ 16.32 |
Weighted average remaining contractual term | 5 years 8 months 12 days |
STOCK-BASED COMPENSATION PLAN_5
STOCK-BASED COMPENSATION PLANS - Summary of assumptions used (Details) - Stock appreciation rights | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
STOCK-BASED COMPENSATION PLANS | ||
Risk-free interest rate | 3.85% | 3.95% |
Expected volatility | 37.37% | 36.54% |
Expected life (in years) | 5 years 8 months 12 days | 6 years 8 months 12 days |
Expected dividend yield | 3.22% | 3.27% |
REGULATORY MATTERS - (Details)
REGULATORY MATTERS - (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Total Capital (to Risk Weighted Assets) | ||
For capital adequacy purposes, ratio (as a percent). | 0.025 | 0.025 |
Heartland Bank and Trust Company | ||
Total Capital (to Risk Weighted Assets) | ||
Actual, amount | $ 586,604 | $ 489,316 |
Actual, ratio (as a percent) | 0.1492 | 0.1543 |
For capital adequacy purposes, amount | $ 314,496 | $ 253,643 |
For capital adequacy purposes, ratio (as a percent). | 0.0800 | 0.0800 |
To be well capitalized under prompt corrective action provisions, amount | $ 393,119 | $ 317,054 |
To be well capitalized under prompt corrective action provisions, ratio (as a percent) | 0.1000 | 0.1000 |
Total Capital (to Risk Weighted Assets) | ||
Actual, amount | $ 550,808 | $ 463,983 |
Actual, ratio (as a percent) | 0.1401 | 0.1463 |
For capital adequacy purposes, amount | $ 235,872 | $ 190,233 |
To be well capitalized under prompt corrective action provisions, amount | $ 314,496 | $ 253,643 |
For capital adequacy purposes, ratio (as a percent) | 0.0600 | 0.0600 |
To be well capitalized under prompt corrective action provisions, ratio (as a percent) | 0.0800 | 0.0800 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) | ||
Actual, amount | $ 550,808 | $ 463,983 |
Actual, ratio (as a percent) | 14.01% | 14.63% |
For capital adequacy purposes, amount | $ 176,904 | $ 142,674 |
For capital adequacy purposes, ratio (as a percent) | 4.50% | 4.50% |
To be well capitalized under prompt corrective action provisions, amount | $ 255,528 | $ 206,085 |
To be well capitalized under prompt corrective action provisions, ratio (as a percent) | 6.50% | 6.50% |
Tier 1 Capital (to Average Assets) | ||
Actual, amount | $ 550,808 | $ 463,983 |
Actual, ratio (as a percent) | 0.1096 | 0.1078 |
For capital adequacy purposes, amount | $ 201,063 | $ 172,240 |
For capital adequacy purposes, ratio (as a percent) | 0.0400 | 0.0400 |
To be well capitalized under prompt corrective action provisions, amount | $ 251,329 | $ 215,300 |
To be well capitalized under prompt corrective action provisions, ratio (as a percent) | 0.0500 | 0.0500 |
Consolidated HBT Financial, Inc. | ||
Total Capital (to Risk Weighted Assets) | ||
Actual, amount | $ 603,234 | $ 516,556 |
Actual, ratio (as a percent) | 0.1533 | 0.1627 |
For capital adequacy purposes, amount | $ 314,814 | $ 254,052 |
For capital adequacy purposes, ratio (as a percent). | 0.0800 | 0.0800 |
Total Capital (to Risk Weighted Assets) | ||
Actual, amount | $ 527,964 | $ 451,828 |
Actual, ratio (as a percent) | 0.1342 | 0.1423 |
For capital adequacy purposes, amount | $ 236,110 | $ 190,539 |
For capital adequacy purposes, ratio (as a percent) | 0.0600 | 0.0600 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) | ||
Actual, amount | $ 476,789 | $ 415,213 |
Actual, ratio (as a percent) | 12.12% | 13.07% |
For capital adequacy purposes, amount | $ 177,083 | $ 142,904 |
For capital adequacy purposes, ratio (as a percent) | 4.50% | 4.50% |
Tier 1 Capital (to Average Assets) | ||
Actual, amount | $ 527,964 | $ 451,828 |
Actual, ratio (as a percent) | 0.1049 | 0.1048 |
For capital adequacy purposes, amount | $ 201,231 | $ 172,427 |
For capital adequacy purposes, ratio (as a percent) | 0.0400 | 0.0400 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring basis (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | $ 759,461,000 | $ 843,524,000 |
Equity securities with readily determinable fair values | 3,360,000 | 3,029,000 |
Mortgage servicing rights, at fair value | 19,001,000 | 10,147,000 |
U.S. Treasury | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 148,622,000 | 154,515,000 |
U.S. government agency | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 52,097,000 | 55,157,000 |
Municipal | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 205,557,000 | 243,829,000 |
Agency residential | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 173,984,000 | 195,441,000 |
Agency commercial | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 127,012,000 | 132,888,000 |
Corporate | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 52,189,000 | 61,694,000 |
Fair Value, Recurring | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Equity securities with readily determinable fair values | 3,360,000 | 3,029,000 |
Mortgage servicing rights, at fair value | 19,001,000 | 10,147,000 |
Derivative financial assets | 6,549,000 | 7,610,000 |
Derivative financial liabilities | 6,227,000 | 6,981,000 |
Fair Value, Recurring | U.S. Treasury | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 148,622,000 | 154,515,000 |
Fair Value, Recurring | U.S. government agency | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 52,097,000 | 55,157,000 |
Fair Value, Recurring | Municipal | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 205,557,000 | 243,829,000 |
Fair Value, Recurring | Agency residential | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 173,984,000 | 195,441,000 |
Fair Value, Recurring | Agency commercial | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 127,012,000 | 132,888,000 |
Fair Value, Recurring | Corporate | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 52,189,000 | 61,694,000 |
Fair Value, Recurring | Level 1 | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Equity securities with readily determinable fair values | 3,360,000 | 3,029,000 |
Mortgage servicing rights, at fair value | 0 | 0 |
Derivative financial assets | 0 | 0 |
Derivative financial liabilities | 0 | 0 |
Fair Value, Recurring | Level 1 | U.S. Treasury | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 148,622,000 | 154,515,000 |
Fair Value, Recurring | Level 1 | U.S. government agency | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 0 | 0 |
Fair Value, Recurring | Level 1 | Municipal | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 0 | 0 |
Fair Value, Recurring | Level 1 | Agency residential | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 0 | 0 |
Fair Value, Recurring | Level 1 | Agency commercial | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 0 | 0 |
Fair Value, Recurring | Level 1 | Corporate | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 0 | 0 |
Fair Value, Recurring | Level 2 | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Equity securities with readily determinable fair values | 0 | 0 |
Mortgage servicing rights, at fair value | 0 | 0 |
Derivative financial assets | 6,549,000 | 7,610,000 |
Derivative financial liabilities | 6,227,000 | 6,981,000 |
Fair Value, Recurring | Level 2 | U.S. Treasury | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 0 | 0 |
Fair Value, Recurring | Level 2 | U.S. government agency | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 52,097,000 | 55,157,000 |
Fair Value, Recurring | Level 2 | Municipal | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 205,557,000 | 243,829,000 |
Fair Value, Recurring | Level 2 | Agency residential | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 173,984,000 | 195,441,000 |
Fair Value, Recurring | Level 2 | Agency commercial | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 127,012,000 | 132,888,000 |
Fair Value, Recurring | Level 2 | Corporate | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 52,189,000 | 61,694,000 |
Fair Value, Recurring | Level 3 | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Equity securities with readily determinable fair values | 0 | 0 |
Mortgage servicing rights, at fair value | 19,001,000 | 10,147,000 |
Derivative financial assets | 0 | 0 |
Derivative financial liabilities | 0 | 0 |
Fair Value, Recurring | Level 3 | U.S. Treasury | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 0 | 0 |
Fair Value, Recurring | Level 3 | U.S. government agency | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 0 | 0 |
Fair Value, Recurring | Level 3 | Municipal | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 0 | 0 |
Fair Value, Recurring | Level 3 | Agency residential | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 0 | 0 |
Fair Value, Recurring | Level 3 | Agency commercial | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | 0 | 0 |
Fair Value, Recurring | Level 3 | Corporate | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Debt securities available-for-sale: | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - Mortgage Servicing Rights (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Fair Value | $ 19,001 | $ 10,147 |
Fair Value, Recurring | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Fair Value | 19,001 | 10,147 |
Fair Value, Recurring | Level 3 | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Fair Value | $ 19,001 | $ 10,147 |
Valuation Technique | Valuation Technique, Discounted Cash Flow [Member] | Valuation Technique, Discounted Cash Flow [Member] |
Fair Value, Recurring | Level 3 | Measurement Input, Constant Prepayment Rate | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Fair Value | $ 19,001 | $ 10,147 |
Fair Value, Recurring | Level 3 | Measurement Input, Constant Prepayment Rate | Minimum | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Measurement input | 0.062 | 0.053 |
Fair Value, Recurring | Level 3 | Measurement Input, Constant Prepayment Rate | Maximum | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Measurement input | 0.494 | 0.597 |
Fair Value, Recurring | Level 3 | Measurement Input, Constant Prepayment Rate | Weighted Average | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Measurement input | 0.084 | 0.082 |
Fair Value, Recurring | Level 3 | Measurement Input, Discount Rate | Minimum | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Measurement input | 0.090 | 0.090 |
Fair Value, Recurring | Level 3 | Measurement Input, Discount Rate | Maximum | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Measurement input | 0.373 | 0.117 |
Fair Value, Recurring | Level 3 | Measurement Input, Discount Rate | Weighted Average | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Measurement input | 0.096 | 0.093 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS - Nonrecurring Basis (Details) - Fair Value, Nonrecurring - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Loans held for sale | $ 2,318 | $ 615 |
Collateral-dependent loans | 32,685 | 17,460 |
Bank premises held for sale | 235 | |
Foreclosed assets | 852 | 3,030 |
Level 1 | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Loans held for sale | 0 | 0 |
Collateral-dependent loans | 0 | 0 |
Bank premises held for sale | 0 | |
Foreclosed assets | 0 | 0 |
Level 2 | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Loans held for sale | 2,318 | 615 |
Collateral-dependent loans | 0 | 0 |
Bank premises held for sale | 0 | |
Foreclosed assets | 0 | 0 |
Level 3 | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Loans held for sale | 0 | 0 |
Collateral-dependent loans | 32,685 | 17,460 |
Bank premises held for sale | 235 | |
Foreclosed assets | $ 852 | $ 3,030 |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS - Unobservable inputs used in nonrecurring measurements (Details) - Fair Value, Nonrecurring - Level 3 - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Collateral-dependent loans | Appraisal of collateral | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Fair Value | $ 32,685 | $ 17,460 |
Alternative Investment, Measurement Input [Extensible Enumeration] | AppraisalAdjustmentsMember | AppraisalAdjustmentsMember |
Bank premises held for sale | Appraisal | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Fair Value | $ 235 | |
Measurement input | 7% | |
Alternative Investment, Measurement Input [Extensible Enumeration] | AppraisalAdjustmentsMember | |
Bank premises held for sale | Appraisal | Weighted Average | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Measurement input | (7.00%) | |
Foreclosed assets | Appraisal | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Fair Value | $ 852 | $ 3,030 |
Measurement input | 7% | 7% |
Alternative Investment, Measurement Input [Extensible Enumeration] | AppraisalAdjustmentsMember | AppraisalAdjustmentsMember |
Foreclosed assets | Appraisal | Weighted Average | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Measurement input | (7.00%) | (7.00%) |
FAIR VALUE OF FINANCIAL INSTR_7
FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying amount and estimated fair value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Financial assets: | |||
Debt securities held-to-maturity | $ 466,496 | $ 478,801 | $ 104,131 |
Level 1 | Carrying Amount | |||
Financial assets: | |||
Cash and cash equivalents | 141,252 | 114,159 | |
Level 1 | Estimated Fair Value | |||
Financial assets: | |||
Cash and cash equivalents | 141,252 | 114,159 | |
Level 2 | Carrying Amount | |||
Financial assets: | |||
Debt securities held-to-maturity | 521,439 | 541,600 | |
Accrued interest receivable | 24,534 | 19,506 | |
Financial liabilities: | |||
Securities sold under agreements to repurchase | 42,442 | 43,081 | |
Accrued interest payable | 6,969 | 1,363 | |
Level 2 | Estimated Fair Value | |||
Financial assets: | |||
Debt securities held-to-maturity | 466,496 | 478,801 | |
Accrued interest receivable | 24,534 | 19,506 | |
Financial liabilities: | |||
Securities sold under agreements to repurchase | 42,442 | 43,081 | |
Accrued interest payable | 6,969 | 1,363 | |
Level 3 | Carrying Amount | |||
Financial assets: | |||
Restricted stock | 7,160 | 7,965 | |
Loans, net | 3,364,369 | 2,594,920 | |
Investments in unconsolidated subsidiaries | 1,614 | 1,165 | |
Financial liabilities: | |||
Time deposits | 627,253 | 262,968 | |
Brokered deposits | 144,880 | 0 | |
Level 3 | Estimated Fair Value | |||
Financial assets: | |||
Restricted stock | 7,160 | 7,965 | |
Loans, net | 3,349,540 | 2,566,930 | |
Investments in unconsolidated subsidiaries | 1,614 | 1,165 | |
Financial liabilities: | |||
Time deposits | 619,682 | 253,619 | |
Brokered deposits | 144,944 | 0 | |
Subordinated notes | Level 3 | Carrying Amount | |||
Financial liabilities: | |||
Subordinated notes | 39,474 | 39,395 | |
Subordinated notes | Level 3 | Estimated Fair Value | |||
Financial liabilities: | |||
Subordinated notes | 36,993 | 37,205 | |
Junior subordinated debentures | Level 3 | Carrying Amount | |||
Financial liabilities: | |||
Subordinated notes | 52,789 | 37,780 | |
Junior subordinated debentures | Level 3 | Estimated Fair Value | |||
Financial liabilities: | |||
Subordinated notes | $ 48,529 | $ 37,030 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Standby letters of credit | ||
COMMITMENTS AND CONTINGENCIES | ||
Financial instruments off-balance sheet credit risks | $ 23,732 | $ 17,785 |
Commitments to extend credit | ||
COMMITMENTS AND CONTINGENCIES | ||
Financial instruments off-balance sheet credit risks | $ 869,013 | $ 756,885 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Legal Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||||||
Aug. 16, 2023 | May 15, 2023 | Feb. 20, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2021 | Dec. 31, 2020 | |
Litigation | |||||||||
Allowance for Credit Losses | $ 25,333 | $ 40,048 | $ 25,333 | $ 23,936 | $ 31,838 | ||||
Allowance for credit losses on unfunded commitments | |||||||||
Litigation | |||||||||
Allowance for Credit Losses | 3,800 | $ 0 | |||||||
TGC Cases | |||||||||
Litigation | |||||||||
Settlement amount | $ 13,000 | $ 13,000 | |||||||
Accrual recorded | 13,000 | ||||||||
Insurance recovery receivable | 7,400 | ||||||||
Net settlement amount included in other noninterest expense | 5,600 | ||||||||
DeBaere and Miller cases | |||||||||
Litigation | |||||||||
Settlement amount | $ 3,400 | ||||||||
Accrual recorded | 2,600 | ||||||||
Accrual included in other noninterest expense | $ 800 | $ 2,600 | |||||||
John Pickett Cases | |||||||||
Litigation | |||||||||
Accrual recorded | $ 200 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Related party transactions | ||
Loans | $ 3,364,369 | $ 2,594,920 |
Total deposits | 4,401,437 | 3,587,024 |
Related Party | ||
Related party transactions | ||
Loans | 1,100 | 2,200 |
Total deposits | $ 4,000 | $ 22,000 |
CONDENSED PARENT COMPANY ONLY_3
CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||||
Cash and cash equivalents | $ 141,252 | $ 114,159 | ||
Other assets | 55,239 | 56,444 | ||
Total assets | 5,073,170 | 4,286,734 | ||
LIABILITIES | ||||
Subordinated notes | 39,474 | 39,395 | ||
Junior subordinated debentures | 52,789 | 37,780 | ||
Other liabilities | 34,909 | 45,822 | ||
Total liabilities | 4,583,674 | 3,913,102 | ||
Stockholders’ equity | 489,496 | 373,632 | $ 411,881 | $ 363,917 |
Total liabilities and stockholders’ equity | 5,073,170 | 4,286,734 | ||
Reportable Legal Entities | Consolidated HBT Financial, Inc. | ||||
ASSETS | ||||
Cash and cash equivalents | 17,214 | 24,278 | ||
Bank | 563,513 | 422,217 | ||
Non-bank | 1,614 | 1,165 | ||
Other assets | 2,347 | 5,338 | ||
Total assets | 584,688 | 452,998 | ||
LIABILITIES | ||||
Subordinated notes | 39,474 | 39,395 | ||
Junior subordinated debentures | 52,789 | 37,780 | ||
Other liabilities | 2,929 | 2,191 | ||
Total liabilities | 95,192 | 79,366 | ||
Stockholders’ equity | 489,496 | 373,632 | ||
Total liabilities and stockholders’ equity | $ 584,688 | $ 452,998 |
CONDENSED PARENT COMPANY ONLY_4
CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS - Statements of income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other income | $ 3,105 | $ 2,366 | $ 3,034 |
Total noninterest income | 36,046 | 34,717 | 37,328 |
Interest expense | 37,927 | 7,180 | 5,820 |
INCOME BEFORE INCOME TAX EXPENSE | 88,581 | 76,190 | 76,562 |
TAX BENEFIT | 22,739 | 19,734 | 20,291 |
NET INCOME | 65,842 | 56,456 | 56,271 |
Reportable Legal Entities | Consolidated HBT Financial, Inc. | |||
Dividends received from bank subsidiary | 64,000 | 28,000 | 20,000 |
Undistributed earnings from bank subsidiary | 9,199 | 35,044 | 41,227 |
Other income | 870 | 51 | 454 |
Total noninterest income | 74,069 | 63,095 | 61,681 |
Interest expense | 5,409 | 3,666 | 3,305 |
Other expense | 5,517 | 5,292 | 3,741 |
Total expenses | 10,926 | 8,958 | 7,046 |
INCOME BEFORE INCOME TAX EXPENSE | 63,143 | 54,137 | 54,635 |
TAX BENEFIT | (2,699) | (2,319) | (1,636) |
NET INCOME | $ 65,842 | $ 56,456 | $ 56,271 |
CONDENSED PARENT COMPANY ONLY_5
CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS - Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 65,842 | $ 56,456 | $ 56,271 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Stock-based compensation | 1,953 | 1,949 | 764 |
Net gain on sales of foreclosed assets | (764) | (118) | (505) |
Net cash provided by operating activities | 65,829 | 72,586 | 43,023 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of securities | 3,037 | 371,682 | 513,838 |
Proceeds from sale of foreclosed assets | 4,093 | 475 | 5,805 |
Net cash paid for acquisition | (14,454) | (4,771) | |
Net cash provided by (used in) investing activities | 132,663 | (335,123) | (349,613) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Taxes paid related to the vesting of restricted stock units | (181) | (57) | 0 |
Repurchase of common stock | (8,907) | (4,783) | (4,906) |
Cash dividends and dividend equivalents paid | (21,873) | (18,584) | (16,753) |
Net cash provided by (used in) financing activities | (171,399) | (32,572) | 403,407 |
NET DECREASE IN CASH AND EQUIVALENTS | 27,093 | (295,109) | 96,817 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 114,159 | 409,268 | 312,451 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 141,252 | 114,159 | 409,268 |
Reportable Legal Entities | Consolidated HBT Financial, Inc. | |||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | 65,842 | 56,456 | 56,271 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Undistributed earnings of consolidated subsidiaries | (9,199) | (35,044) | (41,227) |
Stock-based compensation | 1,953 | 1,949 | 764 |
Amortization of discount and issuance costs on subordinated notes and debentures | 139 | 145 | 144 |
Net gain on sales of foreclosed assets | (563) | 0 | (74) |
Changes in other assets and liabilities, net | 360 | 769 | (2,231) |
Net cash provided by operating activities | 58,532 | 24,275 | 13,647 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of securities | 0 | 0 | 48 |
Purchase of foreclosed assets from Heartland Bank | 0 | (2,325) | 0 |
Proceeds from sale of foreclosed assets | 2,888 | 0 | 74 |
Net cash paid for acquisition | (37,523) | (10,411) | |
Net cash provided by (used in) investing activities | (34,635) | (2,325) | (10,385) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Taxes paid related to the vesting of restricted stock units | (181) | (57) | 0 |
Repurchase of common stock | (8,907) | (4,783) | (4,906) |
Cash dividends and dividend equivalents paid | (21,873) | (18,584) | (16,753) |
Net cash provided by (used in) financing activities | (30,961) | (23,424) | (21,659) |
NET DECREASE IN CASH AND EQUIVALENTS | (7,064) | (1,474) | (18,397) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 24,278 | 25,752 | 44,149 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ 17,214 | $ 24,278 | $ 25,752 |